San Luis Obispo City Council
November 15, 2022

Item 5k

FISCAL IMPACT
Budgeted: No Budget Year: 2023-2024
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 $ $ $ $
The recommendation in this staff report is to authorize staff to pursue a grant funding opportunity with CalRecycle for $236,531 to fund trash and recycling infrastructural improvements. No additional funding is requested at this time. Should this request be approved, appropriate updates to revenue and capital improvement forecasts will be made to Financial Plan 23-25.

ALTERNATIVES
Council could decide to not authorize the application for the Beverage Container Recycling Grant Program. Staff does not recommend this alternative, but if Council choses not to authorize staff to apply for this CalRecycle grant, staff would immediately withdraw the City’s grant application. Staff would then continue to seek other funding sources for the acquisition of these type of containers. Council could decide to find alternative funding for them as well.

ATTACHMENTS
A - Draft Resolution authorizing approval of grant application to the CalRecycle Beverage Container Recycling Grant Program
B - Bigbelly Container Purchase and Installation Cost Quote C - Letters of Support from Downtown SLO Association and Visit SLO CAL

R ______
RESOLUTION NO. _____ (2022 SERIES)

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS

OBISPO, CALIFORNIA, AUTHORIZING APPROVAL OF GRANT

APPLICATION TO THE CALRECYCLE BEVERAGE CONTAINER

RECYCLING GRANT PROGRAM
WHEREAS, Public Resources Code sections 48000 et seq. authorize the Department of Resources Recycling and Recovery (CalRecycle) to administer various grant programs (grants) in furtherance of the State of California’s (state) efforts to reduce, recycle and reuse solid waste generated in the state thereby preserving landfill capacity and protecting public health and safety and the environment; and WHEREAS, in furtherance of this authority CalRecycle is required to establish procedures governing the application, awarding, and management of the grants; and WHEREAS, CalRecycle grant application procedures require, among other things, an applicant’s governing body to declare by resolution certain authorizations related to the administration of CalRecycle grants.

NOW, THEREFORE, BE IT RESOLVED by the Council of the City of San Luis Obispo that the City Council hereby authorizes the submittal of application(s) to CalRecycle for the Beverage Container Grant Recycling Program in the amount of $236,531.

BE IT FURTHER RESOLVED that the City Manager or his designee, is hereby authorized and empowered to execute in the name of the City of San Luis Obispo all grant documents, including but not limited to, applications, agreements, amendments and requests for payment, necessary to secure grant funds and implement the approved grant project; and

Resolution No. _____ (2022 Series) Page 2
R ______
BE IT FURTHER RESOLVED that these authorizations are effective for five (5) years from the date of adoption of this resolution.

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

October 1, 2022
CalRecycle
Grants and Loans Program
1001 I Street, P.O. Box 4025
Sacramento, CA 95812
RE: City of San Luis Obispo (SLO) Application for Beverage Container Recycling Grant Dear Grant Administrators:

Downtown SLO strongly supports the City of SLO’s application for the Beverage Container Recycling Grant. This funding will help the City of SLO collect more beverage containers in locations where current beverage container collection is lacking, specifically at our downtown public park and adjacent high-traffic public use areas.

Establishing a new collection method for beverage container recycling is desperately needed in these downtown areas to reduce littering and to protect our local creek environment from waste.

Downtown San Luis Obispo is the employment and cultural center for the entire county. Each year, thousands of visitors come to enjoy shopping, restaurants, and special events. Every Thursday, thousands of people visit downtown for its evening Farmers’ Market event, where vendors serve food and drink and people gather to hang out and listen to music. In addition to the regular stream of visitors to historic Mission Plaza, the park hosts frequent events that draw thousands, including the Friday night summertime Concerts season that our organization presents. The City of SLO is committed to adopting new methods of collection that can handle this high use and ensure CRV beverage containers can be recycled appropriately.

Downtown SLO would be pleased to partner with the City of SLO on outreach efforts that educate and encourage downtown and Farmers’ Market visitors and vendors to use the solid waste and recycle receptacles, and the benefits of doing so. This partnered outreach will be accomplished through information in the weekly email that is sent to our member businesses, as well as signage placed throughout the farmers’ market.

We are grateful that CalRecycle provides funding to support municipalities in modernizing and expanding their beverage container recycling efforts, and we hope you will consider funding the City of SLO’s request. It will do so much to beautify our downtown.

Sincerely,
Bettina Swigger
CEO, Downtown SLO
1135 Chorro Street | San Luis Obispo, CA 93401 | Phone: (805) 541-0286 | Fax: (805) 781-2647 [email protected] | DowntownSLO.com

81 HIGUERA STREET, SUITE 220
SAN LUIS OBISPO, CA 93401
805-541-8000 SLOCAL.com
October 13, 2022
CalRecycle
Grants and Loans Program
1001 I Street, P.O. Box 4025
Sacramento, CA 95812
RE: City of San Luis Obispo (SLO) Application for Beverage Container Recycling Grant Dear Grant Administrators:

Visit SLO CAL, the destination marketing and management organization for San Luis Obispo County (SLO CAL), strongly supports the City of San Luis Obispo’s (SLO) application for the Beverage Container Recycling Grant.

Tourism is the second largest industry in SLO CAL. Each year, more than 7.3 million visitors come to SLO CAL to enjoy our region’s shopping, restaurants, attractions, and special events. A primary attraction for visitors is the city’s vibrant downtown area, home of the famous Thursday night farmer’s market which draws 8,000 visitors per week. Vendors serve food and drink, and people gather to hang out and listen to music. The Mission Plaza is another important venue that draws thousands of visitors to the downtown area. The Plaza hosts frequent historical and cultural events enjoyed by both visitors and residents.

These and other high-traffic events in SLO generate significant recyclable waste. Expanding the city’s smart waste and recycling capability is vital to maintaining the beauty, cleanliness, and sustainability of SLO. It will also help ensure we maintain visitor satisfaction and resident quality of life.

The City of SLO is committed to adopting new methods of collection that can handle this high use and ensure CRV beverage containers can be recycled appropriately. CalRecycle’s grant funding will help the City of SLO collect more beverage containers in locations where current beverage container collection is lacking, specifically at our downtown public parks and adjacent high-traffic public use areas. Establishing a new collection method for beverage container recycling is desperately needed in these downtown areas to reduce littering, protect our local creek environment from waste, and allow for materials recovery.

81 HIGUERA STREET, SUITE 220
SAN LUIS OBISPO, CA 93401
805-541-8000 SLOCAL.com
We are grateful that CalRecycle provides funding to support municipalities in modernizing and expanding their beverage container recycling efforts, and we hope you will strongly consider and support the City of SLO’s funding request.

Yours truly,
Tracy Campbell
Vice President of Community Engagement and Advocacy
Visit SLO CAL

City of San Luis Obispo, Council Memorandum
City of San Luis Obispo
Council Agenda Correspondence
DATE: November 10, 2022
TO: Mayor and Council
FROM: Brigitte Elke, Finance Director
VIA: Derek Johnson, City Manager
SUBJECT: Item 6a – 2023-25 Financial Plan – Setting the Stage and the Strategic Scan The Council Agenda Report for Item 6a, scheduled on November 15, 2022, mentioned that, due to its length and wealth of information, the staff presentation would be distributed ahead of the City Council meeting. The early distribution should allow the public and the City Council the opportunity to review the information before the meeting.

The presentation (Attachment A) includes the “Strategic Scan” material that was first introduced as part of the financial planning process in FY 2018-19. The scan contains important statistical information pertaining to social, economic, and environmental factors.

It addresses issues pertinent to the delivery of City services and provides important context for decision making through the budget process. The scan is not exhaustive of all data relevant to the City and its program and service delivery but is intended to illustrate indicators that should be considered when establishing the new two-year budget.

Attachment:

A – Setting the Stage and Strategic Scan PowerPoint

Setting the Stage for the 2023-25
Financial PlanNovember 15, 2022
1

Recommendations
2 1. Receive and discuss the following framework in preparation for the 2023-25 goal-setting and Financial Plan process:
a. FY 2022-23 1st quarter results
b. 2021-23 Adopted Major City Goalsc. General Plan and Climate Action Plan Updated. Setting the stage framework including core services and a scan of strategic indicators for all major funds.
e. Introduce a recommended approach to the budgeting and management of the Capital Improvement Plan (CIP) and receive Council feedback (Attachment D)

2. Adopt a resolution entitled, “A Resolution of the City Council of the City of San Luis Obispo, California, approving an amendment to the 2022-23 Budget Allocation” to appropriate $40,000 ofthe City’s General Fund Unassigned Fund Balance into operating budget to contribute to the Housing Trust Fund and correction to the 2022-23 Appropriations Limit.

3

Community Priorities Survey
ƒ www.slocity.org/OpenCityHallƒ November 14th- December 15thƒ Community's opportunity to help shape the City's Major City Goals

Community Forum
ƒ Ludwick Community Centerƒ January 26, 2023, 6PMƒ Community's opportunity to help mold how the City will implement the potential Major City Goals

Purpose of Setting the Stage and the Strategic Scan
6 Q1 Review Strategic Plan Updates Setting the Stage Framework Strategic Scan Other/ Conclusion ‰ Take a look at the financial standing after Q1 of the current fiscal year‰ Provide updates on the current Major City Goals and other strategic goals‰ Review the City’s core services ‰ Provide context on how new goals and initiatives fit in with the City’s responsibility to deliver core services
‰ Help Council determine strategic priorities for the 2023-25 Financial Plan ‰ Provide a Strategic Scan of important statistical information that provides important context for decision making through the budget proces s

7 2022-23 1st Quarter
Financial Review
Where are we
now
Q1 Review Strategic Plan Updates Setting the Stage Framework Strategic Scan Other/ Conclusion

8 2022-23 1st Quarter Financial Review
Q1 Review Strategic Plan Updates Setting the Stage Framework Strategic Scan Other/ Conclusion 22 Million in
Revenues
(YTD)
$34 Million in
OpEx (YTD)
3 MCG Tasks
Completed in
Q1
4 CIP
Projects
Completed in
Q1
General Fund Q1 Status
• Revenues and expenditures for all funds are track as anticipated• Current salary savings due to vacancies and expired SLOCEA agreement

9 What does the current picture mean for financial planning? The upsideStrong Q1 sales and transaction tax remittalsRecord high TOT continues into Q1 The downsideConsumer confidence is declining, and many signs point to a slowdown in tourism activity and consumer spendingCannabis tax and fee budget will need to be adjusted at mid-year Q1 Review Strategic Plan Updates Setting the Stage Framework Strategic Scan Other/ Conclusion

General Plan & Other
Strategic Plan Updates
10 Q1 Review Strategic Plan Updates Setting the Stage Framework Strategic Scan Other/ Conclusion

General Plan Programs Summary
11 LAND USE ELEMENT - 73 CIRCULATION ELEMENT - 69HOUSING ELEMENT - 65NOISE ELEMENT - 8CONSERVATION AND OPENS SPACE ELEMENT - 68SAFETY ELEMENT - 34PARKS AND RECREATION ELEMENT - 41WATER AND WASTEWATER ELEMENT -38 396
Total Programs
• The City’s General Plan is composed of a “building block” hierarchy of goals, objectives, policies, and programs.
• Monitoring the City’s progress in implementing General Plan programs assists with decision making in ongoing pursuit of the adopted plan and implementation of the City’s vision.

Q1 Review Strategic Plan Updates Setting the Stage Framework Strategic Scan Other/ Conclusion Total % complete % ongoing
LAND USE ELEMENT 73 26% 74%CIRCULATION ELEMENT 69 10% 87%HOUSING ELEMENT 65 15% 85%NOISE ELEMENT 8 25% 75%CONSERVATION AND OPENS SPACE ELEMENT 68 15% 85%SAFETY ELEMENT 34 21% 79%PARKS AND RECREATION ELEMENT 41 12% 85%WATER AND WASTEWATER ELEMENT 38 8% 89%

Climate Action Plan
12 ƒ Nearly every foundational action in the 2020
Climate Action Plan is implemented or is in progress
ƒ Work to date has reaffirmed the 2020 Climate
Action Plans goals and actions and historic federal and state funding will enable rapid implementation of the next implementation phase ƒ 2023-27 Work Program, which includes the 2022
Climate Action Progress Report will be presented to Council on December 13, 2022 and is available for public review on the City website.

Q1 Review Strategic Plan Updates Setting the Stage Framework Strategic Scan Other/ Conclusion

Other Major Strategic Efforts Underway
DEI Strategic Plan Economic Development Strategic Plan Homelessness Strategic Plan 13 Q1 Review Strategic Plan Updates Setting the Stage Framework Strategic Scan Other/ Conclusion Currently being scoped
In Progress
Released for RFP
Tentative May 2023
Actively drafting
Present to Council February 2023
Parking and Access Plan
Spring of 2023

2021-23 Major City Goals
14 Q1 Review Strategic Plan Updates Setting the Stage Framework Strategic Scan Other/ Conclusion

15 Economic Recovery, Resiliency and Fiscal Sustainability • Many new initiatives that came out of the pandemic• A “pulse” survey executed to gather data to help develop the Economic Development related DEI initiatives
• Added a 3rd fulltime Ambassador downtown (1.2a-6)• TBID Mid-week promotion which resulted in 421 qualified stays• Most Major City Goal efforts were funded on a one-time basis in 2021-23 Q1 Review Strategic Plan Updates Setting the Stage Framework Strategic Scan Other/ Conclusion $54,000
in funding to incentivize
additional childcare start-ups
(1.2
a-8)
$119,000
in grants to
n
o
n-p
ro
fit a
n
d
a
r
t
s o
r
g
a
niz
a
tio
n
s
(1.2)
$45,000
to help facilitate talent
relocation and retention

Climate Action, Open Space, and Sustainable Transportation Adopted policy
requiring all-electric
new buildings
starting in 2023
Conducted 17
stakeholder and
community meetings
and hosted the SLO
Climate Party
Purchased first allelectric fleet
vehicles
Completed key Active
Transportation Plan
projects including the
Orcutt Road
Roundabout and
Railroad Safety Trail.

Opened the new trail at
Miossi Open Space that
advances conservation
easement projects
throughout the
Greenbelt
16 Q1 Review Strategic Plan Updates Setting the Stage Framework Strategic Scan Other/ Conclusion

17 Diversity, Equity, and Inclusionƒ Launched Community Diversity Speaker Series ƒ Expanded staffing of DEI office to include a DEI Management Fellow
ƒ Expanded inclusive language in hiring and recruitment documents and embedded DEI component to employee self-evaluations ƒ DEI embedded into Legislative Platformƒ Expanded internal DEI committee workplan and objectives Q1 Review Strategic Plan Updates Setting the Stage Framework Strategic Scan Other/ Conclusion HRC
embedded DEI into purpose
and goals for 2023-25
$300,000
in grants to
n
o
n-p
ro
fit
o
r
g
a
niz
a
tio
n
s
MOU
executed between Cal
Poly & the City to
advance DEI

18 Housing and Homelessness
Q1 Review Strategic Plan Updates Setting the Stage Framework Strategic Scan Other/ Conclusion Housing• Develop Objective Design Standards & Update Development Review Process (3.1c)• Support a 25% expansion of the number of beds at the 40 Prado Homeless Services Center (3.11b)• Zoning Regulations Update - Housing (3.1d)Homelessness• Pair a crisis worker with an Emergency Medical Technician (EMT) to provide non-emergency response and care to unhoused community members (MCU). (3.10a) • Created an ongoing Homelessness Response Manager position • $1.7 million from the State and Local Fiscal Recovery Fund allocation for the Anderson hotel• $300,000 to support Transition Mental Health Association to provide eight homes for homeless individuals

Setting the Stage Framework
19 Q1 Review Strategic Plan Updates Setting the Stage Framework Strategic Scan Other/ Conclusion

FTE Count*
150.5238.570.25
20 Public
Safety
Internal
Services
Community
Services
Organizational
Structure
Q1 Review Strategic Plan Updates Setting the Stage Framework Strategic Scan Other/ Conclusion *Permanent, ongoing employees only. Does notinclude contract or temporary staff.

How does the City fund its services? (General Fund)
Based on 2022-23 Budget
21 Top 4 revenue sources:

Sales & Use Tax
Local Revenue Measure
Property Tax
Transient Occupancy Tax
Other Tax & Franchise
Revenue
Fees for Service
Grants & Subventions*
Interfund Transfers
7 0
%
1 1
%
1 9
%
1 0
0 %
Local Revenue Measure G-20 surpassed Property Tax as the City’s #1 source of revenue in FY 2020-21.

Q1 Review Strategic Plan Updates Setting the Stage Framework Strategic Scan Other/ Conclusion *Excludes ARPA Funding

Capital, Debt, Insurance
22 $21.2 million
$2 million
Capital
Debt
$4.3 million
Insurance
Q1 Review Strategic Plan Updates Setting the Stage Framework Strategic Scan Other/ Conclusion 19% of budget2% of budget
4% of budget

23 Special
Projects
Major City
Goals
Emergent
needs
63 Core Programs & Services
Infrastructure maintenance
Childcare
Development Services
Street and Parks
Public Safety
How does the City fund its services? (General Fund)
$83 Million Operating Budgetused to fund
The City’s priority is to provide core services. New initiatives and one-time strategic goals overlap core services. If additional resources (revenue) are not available, tradeoffs are necessary.

Q1 Review Strategic Plan Updates Setting the Stage Framework Strategic Scan Other/ Conclusion Capital, Debt, Insurance transfers

24 Department Budgets, Core
Programs and Program
Structures
Q1 Review Strategic Plan Updates Setting the Stage Framework Strategic Scan Other/ Conclusion

Police Services Public
Safety
25 $20.8 million
19% of budget 60 Sworn
Police
Officers, 91
total staff
Responded to
over 37,000
calls for service
in 2021. 14%
increase from
2020.

Administration Patrol, Downtown
Bikes,
Community
Action Team
Investigations Dispatch & Records Neighborhood Outreach Traffic Safety Core Services
General Fund Revenue
Q1 Review Strategic Plan Updates Setting the Stage Framework Strategic Scan Other/ Conclusion

Fire Services
Public
Safety
26 Emergency
Response
(Staffed)
Hazard
Prevention
(Staffed)
Training
Services
Fire
Apparatus
Services
(Staffed)
Fire Station
Facility
Support
Disaster
Preparedness
& Assistance
Core Services
Fi
$14.5 million
13% of budget
Fire Admin
(Staffed)
4 Stations /
45 Firefighters.

59.5 total staff
Responded to
over 6,000 calls
for service YTD
in 2022. On
schedule for
a 15% increase
from 2021.

General Fund Revenue
Q1 Review Strategic Plan Updates Setting the Stage Framework Strategic Scan Other/ Conclusion

$10.4 million
9% of budget
Administration and Information Technology
Office of the City Council
Office of the
City Manager
Office of
Economic
Development
and Tourism
Office of
Sustainability
and Natural
Resources
Protection
Office of the
City Clerk
Office of
Information Technology
Office of
Diversity,
Equity and
Inclusion
Core Services
$300,000
Allocated to
Non-profits
to Advance
DEI in the
Community
42 Eligible
Applications
and $1.5M
in Requests
Direct
Support to
21 Organizations
Internal
Services
27 General Fund Revenue
Q1 Review Strategic Plan Updates Setting the Stage Framework Strategic Scan Other/ Conclusion

38.75 FTE Staff

City Attorney
Internal
Services
28 $1.3 million
1% of budget
Legal Review
of all Contracts
and Other
Documents
Advice to City
Council,
Advisory
Bodies, Staff
Support for all
Major City
Goals
Management
of Defense of
the City
(Claims and
Litigation)
Advice re
Development,
Planning and
Programs
Processing
and
Coordination
of Admin Cite
Appeals
Public Record
Requests
(Advise Staff
and Review
Records)
Core Services
6 Full-time
Regular Staff
2 Contract/
Temp Staff
All City Legal
Advice,
Answers, and
Review
Q1 Review Strategic Plan Updates Setting the Stage Framework Strategic Scan Other/ Conclusion

Human Resources
Internal
Services
29 Human
Resources
Administration
Benefits
Classification
and
Compensation
Training and
Development
Risk
Management,
Safety,
Wellness
Labor
Relations
Performance Management Recruitment
Core Services
11 Full-Time
Regular Staff
Support for 542
Regular &
Supplemental
Staff Serving
the Community
$1.7 million

1.5% of budget
General Fund Revenue
Q1 Review Strategic Plan Updates Setting the Stage Framework Strategic Scan Other/ Conclusion

Internal
Services
$2.3 million
2% of budget
30 Finance
Finance
Admin
Accounting/
AP/ Payroll Budget Purchasing Revenue Management Support Services/ Non-Dept Core Services

15.5 FTE
Positions
Treasury
with
Revenue,
Debt,
Investment
Accounting
AP, Payroll,
Audit,
Assets
General Fund Revenue
$2.9 million

2.5% of budget
Department Budget
Non-departmental
Q1 Review Strategic Plan Updates Setting the Stage Framework Strategic Scan Other/ Conclusion

Community
Services
31 Community Services Group Administration
CSG Admin /
Solid Waste &
Recycling
Program
Community
Development
Parks &
Recreation Public Works Utilities
$0.5 million
General Fund
Revenue
Communication Collaboration Efficiencies
Administrative Support to Core Services
Q1 Review Strategic Plan Updates Setting the Stage Framework Strategic Scan Other/ Conclusion

0.5% of budget
CSG Admin (2.5 FTE)
Solid Waste &
Recycling
(2 FTE)
$317K

0.3% of budget
AB 939/SB 1383
Revenue

Community Development Community Services
32 39 FTE
Positions
Increased
Development
Increased
Housing
Opportunities
Core Services
$6.7 million
6% of budget
General Fund Revenue
Affordable Housing Development Review
Policy Development
and Long-Range
Planning
Building Permits /
Inspections
Code Enforcement /
Neighborhood
Services
Core Services
Q1 Review Strategic Plan Updates Setting the Stage Framework Strategic Scan Other/ Conclusion

Park
Maintenance
Swim Center
Maintenance
Urban Forest
Services
Facility
Maintenance
Streets &
Sidewalk
Maintenance
Traffic Signals
& Street
Lighting
Fleet Services CIP Project Engineering Transportation Flood Control Parking Services Transit Operations Public Works
Community
Services 33
94 FTE
12 Divisions
71 MCG
Tasks
Core Services
$16.1 million
15% of budget
General Fund Revenue
Q1 Review Strategic Plan Updates Setting the Stage Framework Strategic Scan Other/ Conclusion

Parks & Recreation Community Services 34
Ranger
Service Sports Special Events Golf Childcare Aquatics Public Art Core Services
30 FTE and
33,800
Supplemental
Staff Hours
$997,873
Operating
Budget
P&R
Blueprint for
the Future:
2021-2041
$5.3 million
5% of budget
General Fund Revenue
Q1 Review Strategic Plan Updates Setting the Stage Framework Strategic Scan Other/ Conclusion

Utilities - Water Fund
Q1 Review Strategic Plan Updates Setting the Stage Framework Strategic Scan Other/ Conclusion

1.87B
Gallons of
Water
Delivered
Community
Services
35 Total Budget: $28.3 Million

Utilities - Sewer Fund

1.09B
Gallons of
Wastewater
Treated
90M
Gallons of
Recycled Water
Delivered
Q1 Review Strategic Plan Updates Setting the Stage Framework Strategic Scan Other/ Conclusion Community
Services
36 Total Budget: $20.6 Million

Parking Fund: Core Services 37
Enforcement of State and Local Regulations
Operation & Maintenance of Three (3) Parking StructuresOperation & Maintenance of Nine (9) parking lots & 1,000+ parking meters Administration and planning of parking permit programs
Community
Services
2022-23 Expenditure Budget*
$4.4 million
2022-23 Revenue Projection
$6.5 million
* Operating budget only. Excludes debt service and capital ($10.8 million) Q1 Review Strategic Plan Updates Setting the Stage Framework Strategic Scan Other/ Conclusion

38 Parking Fund – Deferred Projects Now Underway
Cultural Arts District Parking Structure
Groundbreaking Phase 1A Anticipated Winter
Additional Centralized Pay Stations
in Railroad/Monterey Areas and
Credit Card Capable Street Meters
ƒ Access & Parking Management Plan (Adoption Anticipated Spring 2023) ƒ Rate Increase Begins January 2023 through July 2025
Q1 Review Strategic Plan Updates Setting the Stage Framework Strategic Scan Other/ Conclusion

-$20M
-$10M
$0M
$10M$20M$30M$40M$50M$60M
2023-24 2024-25 2025-26 2026-27 2027-28

TOTAL REVENUES TOTAL EXPENDITURES UNRESERVED FUND BALANCE Previous Parking Fund Forecast with No Rate 39
Increases
Fund Balance
becomes
negative in
2024-25
Q1 Review Strategic Plan Updates Setting the Stage Framework Strategic Scan Other/ Conclusion Community
Services

$0M
$10M$20M$30M$40M$50M$60M
2023-24 2024-25 2025-26 2026-27 2027-28

TOTAL REVENUES TOTAL EXPENDITURES UNRESERVED FUND BALANCE Parking Fund Forecast with approved Rate 40Increases and Program Adjustments Unreserved fund balance is depleted during
construction of parking structure but is offset by
debt service and replenished in outer years
Q1 Review Strategic Plan Updates Setting the Stage Framework Strategic Scan Other/ Conclusion 2025-26 2026-27 2027-28
Community
Services

Transit
41 Safe, reliable transportation for seniors, students, working professional, and visitors 2022-23 Expenditure Budget*
$8 million
2022-23 Revenue Projection*
$11.1 million
Community
Services
* Includes some unsecured grant funding
Q1 Review Strategic Plan Updates Setting the Stage Framework Strategic Scan Other/ Conclusion

42 Transit Fund - Grants will help advance the CIP
Significant Grant Funding1. American Rescue Plan Act
($12.3M)

2. SLO Regional Transit Authority
($4.9M)
Capital Projects 1. Electric Bus Purchases (up to 6)2. EV Infrastructure Construction3. Transit Center Rehabilitation4. Bus Stop Improvements5. Office Space Remodel to Enhance Customer Service
Q1 Review Strategic Plan Updates Setting the Stage Framework Strategic Scan Other/ Conclusion

Strategic Scan
43 Q1 Review Strategic Plan Updates Setting the Stage Framework Strategic Scan Other/ Conclusion

44 • Development Activity• Parks & Recreation• Public Works• Utilities and water usage
• Police Services• Fire Services
City Demographics Housing & Homelessness Social, Economic, Environmental Core Service Indicators • Population
change
• Unemployment• Job Growth• Inflation
• Housing
Demographics
• Cost of living• Homelessness in
our Community
• Homelessness &
City Operations
• Diversity, Equity
Inclusion Data
• Climate Change
and the Economy
• Economic Activity/
City Investments
Understanding Decision Making and the Effects on the City’s Future Goal
Meet decisionmakers’ need for
strategic information to stimulate
practical solutions to long-term
challenges facing the City
Strategy
Analyze demographic, economic,
social, and environmental trends to
anticipate challenges and provide
realistic solutions
Q1 Review Strategic Plan Updates Setting the Stage Framework Strategic Scan Other/ Conclusion

4% 3% 3%
8%
29%
14%
8% 8%
4%
6%
8%
4%
2%
Under 5 5 to 9 10 to 14 15 to 19 20 to 24 25 to 34 35 to 44 45 to 54 55 to 59 60 to 64 65 to 74 75 to 84 85 and over Age Distribution
The population of SLO City 45
Population Change from
2010
City of SLO: 5.4%
State: 5.3%
Current Population
47,545
Population Change from
2020
City of SLO: 1.0%
State: -0.8%
Q1 Review Strategic Plan Updates Setting the Stage Framework Strategic Scan Other/ Conclusion Based on census data

46 Unemployment Rate by
Geographical Area
Unemployment Averages:City of SLO: 2.5% (1.5% margin of error) County of SLO: 2.3%California: 3.9%National: 3.5% (0.1% margin of error) At height of pandemic, unemployment
was ~8%, it has fully recovered and
remains very low.
3-7%
>12%
7-12%
<3%
Q1 Review Strategic Plan Updates Setting the Stage Framework Strategic Scan Other/ Conclusion

A closer look at job growth
47 • Payrolls Q4 2020 to 2021
• City of San Luis Obispo grew 4.5% • Statewide 6.3% growth • Job growth in San Luis Obispo
• Small firms growing by +3.3%
• Mid-size firms -1.7%• Large firms +0.3%.

Q1 Review Strategic Plan Updates Setting the Stage Framework Strategic Scan Other/ Conclusion

48 USD Inflation since 1970
-2%
0%
2%4%6%8%
10%12%14%16%
1970 1975 1980 1985 1990 1995 2000 2005 2010 2015 2020

8.3%
Inflation greatly impacts both the City’s revenues and expenditures 2015 Cost
$25,401
2022 Cost
$33,130
+ wait time
Ford F-150 (Asset #1526)
Q1 Review Strategic Plan Updates Setting the Stage Framework Strategic Scan Other/ Conclusion

49 Diversity, Equity and Inclusion Demographics
Women-owned
firms
28%
Men-owned
firms
72%
Minority-owned firms
15%
Nonminorityowned firms
85%

SLO CITY BUSINESSES BY OWNERSHIP TYPE
(2021)
Source: “U.S. Census Bureau QuickFacts: California; San Luis Obispo City, California.” Census Bureau QuickFacts, www.census.gov/quickfacts/fact/table/CA,sanluisobispocitycalifornia/PST045219.

Q1 Review Strategic Plan Updates Setting the Stage Framework Strategic Scan Other/ Conclusion

6.50%

1.70%

15.90%

0.50%

4.20%

40.20%

35.20%

2.30%

0.40%

5.10%

0.00%

5.50%

18.80%

70.10%
Black or African
American alone,
percent
American Indian
and Alaska
Native alone,
percent
Asian alone,
percent
Native Hawaiian
and Other
Pacific Islander
alone, percent
Two or More
Races, percent
Hispanic or
Latino, percent
White alone, not
Hispanic or
Latino, percent
POPULATION BY RACE (2021)
California San Luis Obispo City, California City of San Luis Obispo

50 Diversity, Equity and Inclusion Demographics: The City Organization 1%
4%
1%
14%
8%
72%
City of SLO Workforce Racial/Ethnic
Demographics
American Indian or AlaskaNativeAsian or Pacific IslanderBlack or African AmericanHispanicNot disclosedWhite Female
29%
Male
70%
Not Disclosed
1%

CITY OF SLO WORKFORCE GENDER

DEMOGRAPHICS
Q1 Review Strategic Plan Updates Setting the Stage Framework Strategic Scan Other/ Conclusion

51 Why Diversity, Equity, and Inclusion Matters?
‰ Racially diverse leadership leads to
better performance
‰ 78% of workers think that a DEI
commitment offers a competitive advantage in the recruitment and retention process ‰ The City must foster a workplace
where all employees feel valued and respected.

For the Organization
‰ Council has made a commitment
to making San Luis Obispo a welcoming, inclusive and safe community. ‰ The city declared racism a public
health crisis in 2020
‰ Social and economic inequality is
embedded in our systems and culture, and that recovery must integrate deep structural changes.

In the Community
‰ The Federal Economic
Development Agency has declared Equity as their #1 for all Comprehensive Economic Development Strategies (CEDS) that seek federal funding. ‰ The state expanded its Bureau of
Environmental Justice to have a greater focus on advancing racial equity and justice At the State & Federal Level
Q1 Review Strategic Plan Updates Setting the Stage Framework Strategic Scan Other/ Conclusion

52 Climate Change and the Economy
Urgency
ƒ Climate disruptions will continue to be a
source of economic volatility.
ƒ Federal, state, and the City all have near
term (10-15 year) deep decarbonization goals
Opportunity
• Unprecedented financial resources are on
their way. In 2022 alone, California and the federal government committed over $425 billion to a low carbon transition. • Additional substantial federal and state grant
resources are expected.

The Future of SLO
With these resources available, the City can achieve its goals by drawing down these resources and deploying projects and programs at speed and scale in our community.The Central Coast could become a renewable energy hub that would support a vibrant green tech/cleantech entrepreneurial environment.

Q1 Review Strategic Plan Updates Setting the Stage Framework Strategic Scan Other/ Conclusion

53 Economic Activity and Local Investment
0 10203040506070
Vacant Businesses
– Downtown SLO
Data from Downtown SLO
• Vacancy rates downtown are decreasing/plateauing• Without the City’s investment, economic development would have been set back.
• Faster than expected recovery of TOT and sales &
transaction tax revenue is partially due to the City investments in recovery and resiliency.

Buy Local Bonus Program $868,522 in direct local spending Two rounds of Childcare investment
($95K direct)
70-100+ additional childcare slots in
SLO City
Q1 Review Strategic Plan Updates Setting the Stage Framework Strategic Scan Other/ Conclusion

54 Key Takeaways from the Central Coast Economic Forecast Q1 Review Strategic Plan Updates Setting the Stage Framework Strategic Scan Other/ Conclusion ƒ The future of San Luis Obispo is largely dependent on the City continuing to attract and retain a diverse talent
pool.
ƒ More housing, specifically affordable and multi-family housing, is crucial for economic growth and stability.
ƒ Younger workers are moving to inland communities where housing is more affordable.

55 Housing
Year
Owner
Occupied
Housing Unit
Rate
Median Value
of OwnerOccupied
Housing Units
Median Gross
Rent
Median
Household
Income
Per Capita
Income
2000 38.0% $278,800 $724 $31,926 $20,3862010 37.6% $588,400 $1,153 $40,812 $26,2042020 41.1% $662,300 $1,611 $58,546 $36,232 Average cost of housing has increased 130% whereas per capita income has increased by 78% Q1 Review Strategic Plan Updates Setting the Stage Framework Strategic Scan Other/ Conclusion

Housing 56
Renting in San Luis Obispo
3%
11%
29%
29%
12%
6%
9%
0% 5% 10% 15% 20% 25% 30% 35%
Less than $500
$500 to $999
$1,000 to $1,499$1,500 to $1,999$2,000 to $2,499$2,500 to $2,999 $3,000 or more
Percentage of Units
Rent Cost (dollars)
Rent Average (per person), 2020

35.0 percent or
more of
income
59%

30.0 to 34.9 percent of
income
5%

25.0 to 29.9 percent of
income
11%

20.0 to 24.9 percent of
income
8%

15.0 to 19.9 percent of
income
9%
Less than 15.0 percent of
income
8% Rent as a percentage of
household income
(GRAPI), 2020
Majority of renters in San Luis Obispo spend more than 35% of their income on rent $1,000 to $1,499$1,500 to $1,999
Q1 Review Strategic Plan Updates Setting the Stage Framework Strategic Scan Other/ Conclusion

57 Point in Time Count (PIT) - Homeless Population Totals:

Homelessness in our Community
• The PIT indicates a slight decrease in homelessness in SLO City compared to 2019. • However, this data is representative of a single night and may vary based on weather conditions, resource availability, etc.

Q1 Review Strategic Plan Updates Setting the Stage Framework Strategic Scan Other/ Conclusion

58 Homelessness and City Operations
Police Reports Taken Involving
Homeless Persons
Homeless
Calls for Service
Consistent calls for service and subsequent reports filed show the impact that homelessness has on City resources including first responders.

Q1 Review Strategic Plan Updates Setting the Stage Framework Strategic Scan Other/ Conclusion

New Ongoing Resources Towards Homelessness: 59
Mobile Crisis Unit & the Community Action Team
• MCU is a new program offering Crisis Support and resources in nonemergency situations such as mental health, substance abuse and chronic homelessness • Both MCU and CAT provide services beyond emergency response: Build Trust, Provide Care, Offer Resources, Free up Emergency Personnel
7441
578
17 3
127

TOTAL CALLS

RELATED TO

HOMELESSNESS

UNIQUE INVIDUALS

CONTACTED

FAMILY & AGENCY

REUNIFICATION

LOCAL PERMANENT

HOUSING

PLACEMENT

MENTAL HEALTH,

SUBSTANCE ABUSE

TREATMENT

REFERRALS
CAT STATS 2021
Q1 Review Strategic Plan Updates Setting the Stage Framework Strategic Scan Other/ Conclusion

60 Development in the City
Building Inspections Conducted
Increasing to record high levels
Development Permit
Applications Received
Many large development projects occurring in the City. Lower development permit applications than the peak FY 2020, but still high.

Q1 Review Strategic Plan Updates Setting the Stage Framework Strategic Scan Other/ Conclusion

61 The City as a Childcare ProviderParks & Recreation
Overall, the childcare waitlist has grown as demand increases among the different types.

Q1 Review Strategic Plan Updates Setting the Stage Framework Strategic Scan Other/ Conclusion

Parks & Recreation 62
Aquatics & Instructional Classes
Aquatics programs have grown overall usage, and new and existing instructional class offerings continue to fill at high rates.

Q1 Review Strategic Plan Updates Setting the Stage Framework Strategic Scan Other/ Conclusion

Public Works 63
Transit & Transportation
The Transit Program anticipates an increase in ridership from previous years following the COVID-19 pandemic.

Q1 Review Strategic Plan Updates Setting the Stage Framework Strategic Scan Other/ Conclusion

64 Water Usage in the City
Gallons Per Capita Daily
Slightly declining
Recycled
Water (Acre-Feet)
Increasing
Water/Sewer
Customer Accounts
Increasing due to new units
From FY21 to FY22 the City increased annual recycled water delivered by 59%.

Q1 Review Strategic Plan Updates Setting the Stage Framework Strategic Scan Other/ Conclusion

Utilities 65
Considerations for the 23-25 Financial Plan

1. Ongoing drought is resulting in increased State-mandated water conservation and water use efficiency regulations, despite stable conditions locally.2. Industry-specific rises in costs (i.e. chemicals, electricity, capital project delivery)3. General inflation Available City Water Supply
(Acre-Feet, End of FY)
Q1 Review Strategic Plan Updates Setting the Stage Framework Strategic Scan Other/ conclusion

66 Police: Calls for Service vs. Staffing
• Calls for service increased 14% in 2021
from 2020 and 32% since 2009. Staffing decreased 4% over the same period. • Only 42 of the 60 sworn positions
were actively working shifts (on
average) in 2021-22 due to:
• Vacancies/recruitment• Workers’ compensation leave• General time off (trainings, vacation, sick leave)
Year over Year Calls for Service/Officer Staffing
Q1 Review Strategic Plan Updates Setting the Stage Framework Strategic Scan Other/ Conclusion

67 Police Department: Other Challenges
• Mandatory training for officers has increased and will continue to as a result of legislative changes related to policing.
• Currently, 8 hours of Crisis Intervention Training (CIT) is required for all officers – the
goal of the department is to increase this to 20 hours and as a result officers would acquire the status of “Mental Health Peace Officer”.
• Public Safety Equipment Replacement Fund: Increase in costs for police protective equipment. New equipment is needed such as AEDs for vehicles and rifle rated vests for all police officers.

Q1 Review Strategic Plan Updates Setting the Stage Framework Strategic Scan Other/ Conclusion

68 A full-service all-risk fire department offering fire suppression, specialty rescue, hazardous materials mitigation, and paramedic advanced life support. 2021 Count 2022 YTD Count
Total Unit Responses 6256 7935
more units committed = less resources for other calls
6,013 Calls for Service in 2022 YTD
15% increase from 2021
• 158 Fires• 3,467 Medical Emergency• 652 Service Calls• Remaining: rescues, false alarms, hazardous conditions
Q1 Review Strategic Plan Updates Setting the Stage Framework Strategic Scan Other/ Conclusion 26% Increase in Unit Responses
to Incidents

CIP Budgeting Approach and
Other Recommendations
69 Q1 Review Strategic Plan Updates Setting the Stage Framework Strategic Scan Other/ Conclusion

CIP Budget Approach 70
• Use of ‘Funding Buckets’ for Asset Maintenance and Asset Replacement projects • Funding Buckets group like projects• Not recommended for New Asset projects (typically large scale, “legacy” projects)
• Governance
• Purchasing policy• Budget adjustment process
• CIP reporting• Policy language (previewing for January adoption) Q1 Review Strategic Plan Updates Setting the Stage Framework Strategic Scan Other/ Conclusion

71 Fleet
Facilities
Open Space
& Natural
Areas
Preservation
Parking &
Transit
Parks, Urban
Forestry &
Public Art
Streets,
Bridges &
Multimodal
Transportation
Creek & Flood
Protection
Information
Technology
Water
Resources,
Treatment &
Distribution
Wastewater
Collections &
Treatment
Asset Maintenance/ Replacement Projects
Q1 Review Strategic Plan Updates Setting the Stage Framework Strategic Scan Other/ Conclusion

CIP Budget Approach- Current vs. Recommended
Current Approach Recommended Approach
72 Project Type
Project
Task
Council Budget
Appropriation
Staff discretion to
move budget
between tasks
Project Type
Funding “ Bucket “
Project
Task
Council Budget
Appropriation
Staff discretion move
budget between
projects

Current Budget Appropriation Process 73
Budget
appropriation
to individual
projects
Project # Project FY 2021-22 FY 2022-23 FY 2023-24 FY 2024-25 FY 2025-26 1000503 Annual Public Art Maintenance & Projects $ 142,500 $ 142,500 $ 40,000 $ 40,000 $ 40,000 Small Public Art Projects $ 102,500 $ 102,500 $ 0 $ 0 $ 0Utility Box Beautify $ 20,000 $ 20,000 $ 20,000 $ 20,000 $ 20,000Public Art Annual Asset Maintenance $ 20,000 $ 20,000 $ 20,000 $ 20,000 $ 20,000 1000030 Laguna Lake Golf Course Maintenance $ 20,000 $ 20,000 $ 20,000 $ 20,000 $ 20,0001000532 Roundabout Art Installations $ 300,000 $ 300,000 $ 200,000 $ 200,000 $ 200,0001000027 Urban Forest Maintenance $ 315,000 $ 175,000 $ 175,000 $ 175,000 $ 175,000 Urban Forest Maintenance $ 175,000 $ 175,000 $ 175,000 $ 175,000 $ 175,000Urban Forest Master Plan $ 140,000 $ 0 $ 0 $ 0 $ 0 1000033 Playground Equipment Replacement $ 110,000 $ 100,000 $ 700,000 $ 800,000 $ 1,175,000 DeVaul Ranch Playground $ 60,000 $ 0 $ 375,000 $ 0 $ 0
Vista Lago Mini Park Playground $ 50,000 $ 0 $ 250,000 $ 0 $ 0Laguna Hills Playground $ 0 $ 0 $ 75,000 $ 0 $ 750,000Mitchell Park Playground $ 0 $ 100,000 $ 0 $ 750,000 $ 0Playground Equipment Replacement $ 0 $ 0 $ 0 $ 50,000 $ 350,000 French Park Playground Equipment Replacement $ 0 $ 0 $ 0 $ 0 $ 75,00 0 91385 Park Major Maintenance & Repairs $ 1,835,000 $ 160,000 $ 1,000,000 $ 690,000 $ 840,000 Q1 Review Strategic Plan Updates Setting the Stage Framework Strategic Scan Other/ Conclusion

74 Parks,
Urban
Forestry &
Public Art
1000503-
Annual Public
Art Maint &
Projects
1000030-
Laguna Lake
Golf Course
Maint
91385- Park
Major Maint &
Repairs
1000033-
Playground
Equipment
Rep
1000532-
Roundabout
Art
Installations
1000027-
Urban Forest
Maint
$$$
Example: Parks, Urban Forestry & Public Art bucket for Asset Maintenance projects• Estimated cost for individual projects determines recommended bucket amount • Staff would have
discretion to use bucket amount to fund all projects within the bucket Budget appropriation to bucket
Recommended New Approach to Budget Appropriation

Benefits of Funding Bucket Approach 75
Enables the City to
be nimbler in
responding to cost
overruns, as well as
changes to project
prioritization to
deliver projects
Projects are priced
closer to when they
are initiated, rather than during budget
development
Staff has additional
time to develop
project scopes which
will result in more
accurate and
complete project
scopes
Q1 Review Strategic Plan Updates Setting the Stage Framework Strategic Scan Other/ Conclusion

CIP Budget Approach – Funding Bucket Governance 76
• Purchasing Policy requires Council authorization to award construction contracts over $200,000
• Staff will be in front of Council regularly for projects, providing opportunity for Council to provide direction
• Budget adjustment process
• Forces consideration of overall CIP
• CIP reporting
• Provided to REOC and Council quarterly• Focus on project status and expenditures from buckets • Policy language
Q1 Review Strategic Plan Updates Setting the Stage Framework Strategic Scan Other/ Conclusion

77 Changes to Existing Policies
• Clarifies role of Project Managers• Clarifies role of CIP Review Committee• Outlined recommended new approach of City Council appropriation of funding to Asset Replacement and New Asset projects to "funding buckets"
New Policies
• Identifies and defines project types• Requires use of Project Request Forms • Establishes ongoing criteria used by CIP Review Committee to prioritize projects for funding• Limits creation of new projects off-cycle to those that address emergency needs• Establishes the process staff must follow to process administrative budget adjustments within a "funding bucket"
• Requires staff to publish CIP reports on a quarterly basis Deletion of Existing Policies
• Eliminates policy that requires project phases to be listed as objectives in department program narratives (this is not current practice)
CIP Budget Approach – Policy Changes
Q1 Review Strategic Plan Updates Setting the Stage Framework Strategic Scan Other/ Conclusion

78 • Appropriate $40,000 of the City’s General Fund Unassigned Fund Balance into operating budget to contribute to the Housing Trust Fund.
• Correction to the 2022-23 Appropriations Limit:Council Agenda Report: Recommendation #2 Previously adopted Appropriations Limit 2022-23 (R-11332) $85,666,375Corrected Calculation Appropriations Limit 2021-22 $79,470,558
Consumer Price Index (revised) 7.55%Population Factor: County Population Growth 0.28%Compounded Percentage Factor (multiplicative not additive) 1.025% Appropriations Limit 2022-23 (revised) $85,706,220
Q1 Review Strategic Plan Updates Setting the Stage Framework Strategic Scan Other/ Conclusion

Conclusion: Planning for 2023-25
Good Fiscal Management Public Engagement Quality Services Continued commitment to…
Many challenges, many opportunities, many efforts and endeavors ahead 79

Recommendations
80 1. Receive and discuss the following framework in preparation for the 2023-25 goal-setting and Financial Plan process:
a. FY 2022-23 1st quarter results
b. 2021-23 Adopted Major City Goalsc. General Plan and Climate Action Plan Updated. Setting the stage framework including core services and a scan of strategic indicators for all major funds.
e. Introduce a recommended approach to the budgeting and management of the Capital Improvement Plan (CIP) and receive Council feedback (Attachment D)

2. Adopt a resolution entitled, “A Resolution of the City Council of the City of San Luis Obispo, California, approving an amendment to the 2022-23 Budget Allocation” to appropriate $40,000 ofthe City’s General Fund Unassigned Fund Balance into operating budget to contribute to the Housing Trust Fund and correction to the 2022-23 Appropriations Limit.

Q1 Review Strategic Plan Updates Setting the Stage Framework Strategic Scan Other/ Conclusion

Item 6a
Department: Finance
Cost Center: 2002
For Agenda of: 11/15/2022
Placement: Business
Estimated Time: 60 minutes
FROM: Brigitte Elke, Finance Director
Prepared By: Natalie Harnett, Principal Budget Analyst
SUBJECT: SETTING THE STAGE FOR THE 2023-25 FINANCIAL PLAN AND THE

STRATEGIC SCAN

RECOMMENDATION

1. Receive and discuss the following framework in preparation for the 2023-25 goalsetting and Financial Plan process:
a. Review of FY 2022-23 1
st quarter results (Attachment A)
b. Status of the 2021-23 Adopted Major City Goals; and
c. General Plan and Climate Action Plan Update (Attachments B&C); and d. Setting the stage framework including core services and a scan of strategic indicators for all major funds.
e. Introduce a recommended approach to the budgeting and management of the Capital Improvement Plan (CIP) and receive Council feedback (Attachment D)

2. Adopt a Draft Resolution entitled, “A Resolution of the City Council of the City of San Luis Obispo, California, approving an amendment to the 2022-23 Budget Allocation” to appropriate $40,000 of the City’s General Fund Unassigned Fund Balance into operating budget to contribute to the Housing Trust Fund and correction to the 2022-23 Appropriations Limit.

POLICY CONTEXT
The City of San Luis Obispo utilizes a two-year financial planning process to create its budgets. The fundamental purpose of the City’s budget process is to link, through public engagement and strategic deliberation, the interests of the community to the available financial resources to achieve the desired outcomes. The process allows the City Council to engage the community in identifying Major City Goals for the City while also providing information and education regarding the City’s core services and programs, including the day-to-day work and responsibilities carried out by City employees to support residents’ quality of life.

Item 6a

REPORT-IN-BRIEF
This “Setting the Stage” meeting is the first of a several meetings designed to help Council create strategic priorities and budget recommendations for the 2023-25 Financial Plan.

This report along with the presentation to be provided at the meeting include current work program updates, and useful background information, that may assist decision making down the line.

The report includes an update on the FY 2022-23 first quarter budget results (Attachment A), Major City Goals, the General Plan & Specific Plans (Attachment B), the Climate Action Plan (Attachment C), and an overview of the City’s currently programmed core services provided by all departments. It also supplies an overview on important statistical information and strategic indicators.

The report also introduces proposed changes to the budgeting and management of the CIP. The purpose of the changes is to increase project delivery efficiencies and allow more budget adaptability and flexibility throughout the financial plan period. Attachment D outlines the proposed changes.

Lastly, the report includes a recommendation to adopt a resolution to amend the current year budget (Attachment E). The recommendation will appropriate $40,000 from the General Fund unassigned fund balance into the Community Development Department budget to fund the City’s contribution to the Housing Trust Fund. This budget line was inadvertently left out during budget development. The draft resolution also makes a minor correction to the 2022-23 Appropriations Limit1.

DISCUSSION
FY 22-23 Q1 Review
As of September 30, 2022, operating revenues and expenditures trend on target with past years’ first quarters. Except for Cannabis Tax, all - major tax revenues remain very strong and are exceeding projections for the year. Given the waning of consumer confidence and threats of a looming recession, a strong first quarter could help offset a potential slowdown later in the fiscal year. The cannabis tax revenue and operator license fee budgets will need to be lowered by about $500,000 to reflect fewer businesses in operation than what was assumed in the budget. The City will likely open the 3rd and last retail license following the next round of policy updates in March 2023.

1Voters approved the Gann Spending-Limitation Initiative on November 6, 1979 and Proposition 111 on June 5, 1990, which establish and define annual appropriation limits on state and local government agencies.

Item 6a
Table 1: Year-to-date Revenue by Fund
*Includes special revenue funds
Overall expenditures are also tracking as expected. Staffing expenses are the best indicator of budget consumption because they track in a linear function while non-staffing costs are often obligated (via purchase orders) at the beginning of the year and can be quite “lumpy”. First quarter actuals show that staffing budgets for all major funds were on average 20% consumed. This number is slightly below the quarter threshold (25%) and can be attributed to an expired SLOCEA agreement as well as numerous vacancies throughout the departments.

The quarterly reports are also an opportunity for staff to provide important operational or capital project updates. One of the major updates this quarter was the City’s ability to secure the purchase of a 2022 Pierce Arrow Type 1 Pumping Fire Engine to replace Engine 4. The vehicle was originally budgeted in FY 2023-24, but Council approved the accelerated replacement of the vehicle with the 2021-22 Fourth Quarter Financial Report.

The expediated purchase was prudent because the existing engine was having a multitude of mechanical issues and the supplier, South Coast Fire Equipment happened to have the engine available immediately. Many fleet replacements have been delayed over 18 months. Although the cost was over the threshold that requires Council approval, this purchase fell under a “sole source” justification and was subsequently approved by the City Manager on October 25, 2022 and will have saved the City over $60,000 and accelerating the purchase over $100,000 compared to purchasing as originally programmed in the 2023-25 Financial Plan. The purchase order was made with South Coast Fire Equipment, the sole provider of Pierce engines in this region.

The 2022-23 first quarter Financial Report (Attachment A) contains a more detailed update for all major funds and Major City Goal and CIP updates.

Major City Goal Update
Economic Recovery, Resiliency and Fiscal Sustainability (ERR&FS): During the first quarter of FY 2022-23, the City continued to make substantial progress on the ERR&F MCG. Some key achievements were:

Fund Q1 Actuals %
Received Total Budget Q1 Actuals % Received
Variance
from prior
year
General Fund* $ 19,324,764 20% $ 105,135,342 $ 22,015,256 21% 13.9% Water Fund $ 5,186,017 21% $ 26,036,569 $ 5,578,487 21% 7.6% Sewer Fund $ 3,918,338 17% $ 19,218,757 $ 3,845,425 20% -1.9% Parking Fund $ 1,421,963 26% $ 5,830,750 $ 1,866,772 32% 31.3% Transit Fund $ 168,376 4% $ 10,436,738 $ 1,290,946 12% 666.7% Grand Total $ 30,019,459 18% $ 166,658,156 $ 34,596,886 21% 15% 2021-22 2022-23

Item 6a

1. Releasing $119,000 in grants to non-profit and arts organizations,

2. Providing an additional $54,000 in funding to incentivize additional childcare startups and $45,000 to help facilitate talent relocation and retention.

3. Conducting a “pulse” survey to gather data to help develop the Economic Development related Diversity, Equity, and Inclusion (DEI) initiatives.

4. A permanent program to support outdoor dining is in the process of being implemented after Council approval at the end of FY 2022-23 with eight complete applications received by deadline and four pending and likely to go forward.

5. Executing a revised agreement to enhance Clean & Safe for FY 2022-23, which includes a commitment for additional fundraising from Downtown SLO to provide additional resources to add a third full-time Ambassador.

6. The Tourism Business Improvement District implemented the Summer midweekend promotion to attract visitation to SLO Monday through Thursday (resulted in 421 qualified stays).

7. The creation of the Support Local strategy and paid media plan for FY 2022-23 through the City’s Promotional Coordinating Committee. This program includes the continuation of the neighborhood campaign and five seasonal campaigns to promote local shopping. The initial campaign ran during the first quarter which promoted back to school shopping.

Diversity, Equity, and Inclusion (DEI): The City is committed to supporting diversity, equity, and inclusion in its operations and in the community. The Office of DEI was set up in FY 2021-22 and has taken the lead on the related major city goal work program. Council efforts to embed key tenets of diversity, equity, and inclusion in its Meta Goal and in declaring racism a public health crisis in 2020 have established a pressing need to identify continued efforts to foster a community and workplace where all people feel valued, respected and that they have access to the necessary resources to ensure their success.

The Major City Goal workplan was rooted in:

1. Developing and implementing strategies, programs and policies that build a workplace culture and community of inclusion, fairness and belonging for all.

2. Involving marginalized communities and diverse voices in program development and delivery.

3. Partnering with proven community providers and utilize best practice models to maximize effectiveness and impact of initiatives.

4. Identifying and tracking measurable results as the City progresses in maturing diversity and inclusion efforts.

Key accomplishments have included:

1. Managing the DEI high Impact Grant program.

2. Establishing the City’s Diversity Speaker Program.

3. Establishing an MOU with Cal Poly to align the City’s DEI strategies.

4. Embedding DEI into the HRC purpose and mission.

5. Managing the internal DEI committee.

Item 6a
Expanding efforts with economic development to support minority and women owned business, developing expanded educational opportunities across the organization, and Council approved most of the program’s current budget as an ongoing resource.

Subsequently, the DEI office will continue its work in making the City a more welcoming and equitable City for all, even if it is not included as a MCG in the next financial plan.

However, at the state and federal level DEI is increasingly being emphasized as a foundational element in work efforts that impact all departments across the City and it is pertinent that DEI remains a priority in all efforts to continue the momentum built from the initial MCG workplan.

Climate Action, Open Space, and Sustainable Transportation: The Climate Action Major City Goal is a comprehensive collection of programs and projects that includes staff capacity building, community climate action plan implementation, “Lead by Example” carbon neutral municipal operations plan implementation, and related work including open space conservation and maintenance, implementation of the Active Transportation Plan, solid waste innovation, and ongoing climate adaptation and community resilience work.

This Major City Goal (MCG) is generally on track, with substantial policy and project accomplishments including:

1. Clean Energy Program for New Buildings adoption

2. Active transportation project delivery

3. Release of public review drafts of the Climate Adaptation and Safety Element of the General Plan and Climate Action Plan 2023-27 Work Program.

The City’s commitment to climate action via Major City Goals has set the stage to rapidly deploy new federal and state financial resources. These resources will allow the City to implement climate solutions at speed and scale over the next four years to make substantial progress towards the adopted goal of carbon neutrality by 2035. More information about Climate Action Plan implementation, which includes open space and sustainable transportation, is available later in the report and in Attachment C.

Housing and Homelessness: This MCG is very broad in scope and includes 11 specific strategies. All of the recent accomplishments and ongoing efforts can be found in the 2022-23 Budget Supplement.

On the housing side, accomplishments include:

1. Adopting Objective Design Standards and amendments to the Zoning Regulations in FY 2021-22.

2. Updating Subdivision Regulations to implement Housing Element Program 6.20.

The update will include provisions for innovative and flexible subdivision options, including small lot and common interest options in the R-1 zone and updates to existing flexible subdivision options in commercial and multi-family zoning districts.

Item 6a
On the homelessness side, accomplishments include:

1. Council approval of $1.7 million from the State and Local Fiscal Recovery Fund allocation for the Anderson hotel.

2. $300,000 to support Transition Mental Health Association to provide eight homes for homeless individuals.

3. A 25% expansion of the number of beds at 40 Prado Homeless Services Center.

4. A crisis worker paired with an Emergency Medical Technician to provide nonemergency response and care to unhoused community members.

Many of the Housing and Homelessness MCG programs were initially funded as pilot programs for only the two financial plan years. At the 2021-22 Mid Year Review, Council decided to fund some of these programs and services such as the Mobile Crisis Unit and the Homeless Response Manager ongoingly. Given that housing and homelessness continue to be a community priority, staff expect to continue many of its efforts in the 2023-35 Financial Plan.

General Plan Update
Why Report on the Status of General Plan Programs?
The City’s General Plan is composed of a “building block” hierarchy of goals, objectives, policies, and programs. Goals and objectives are direction-setting and describe desirable conditions and preferred outcomes as they are applied to specific situations. Policies are typically more specific statements that guide decision-making while the defined programs are actions that implement goals, objectives, and policies. As such, monitoring the City’s progress in implementing General Plan programs assists with decision making in ongoing pursuit of the adopted plan and implementation of the City’s vision. Attachment B provides a summary of the status of all General Plan Implementation programs by element as well as key “area” plans.

As presented in greater detail in Attachment B, of the 396 individual implementation planning programs in the General Plan, 98% or 392 are completed or have been integrated into the City’s ongoing and day-to-day operations. This is a 4% increase since the last update provided as part of the 2021-23 Financial Plan.

Council adopted an update to the City’s Housing Element in November 2020. The State requires jurisdictions to establish timeframes for implementation of programs that are needed to comply with State goals for low-income housing and to “affirmatively further fair housing.”
Climate Action Plan
The City has been implementing ambitious sustainability and climate action work since the 2017-19 Financial Plan. In 2020, Council adopted the Climate Action Plan (CAP) for Community Recovery, which established the goal of community-wide carbon neutrality by 2035 and adopted supporting sector specific goals. In 2021, the City also adopted the Lead by Example plan, which established the goal of carbon neutral municipal operations by 2030 and describes capital projects and operational programs required to achieve the goal.

Item 6a
Staff and the community have been busy implementing both plans with notable achievements in clean energy, green buildings, active transportation, organic waste diversion, low emissions transit, and nature-based carbon sequestration efforts. As directed in the CAP staff are preparing an update that proposes implementation tasks for the next four years (aligned with the 2023-25 and 2025-27 Financial Plans). 2 An overview of the implementation status of the 2020 CAP, a description of the forthcoming 2023-27 CAP Work Plan, and a summary of the opportunities provided by unprecedented Federal and State funding and regulatory alignment are provided in Attachment C.

Other Major Efforts
Other major efforts underway and consistent with the adopted MCGs include the development of a DEI Strategic Plan, an Economic Development Strategic Plan, and a Homelessness Strategic Plan. The DEI strategic plan is in the process of being scoped and is expected to go to Council in April 2023. Staff released the Request for Proposals for the Economic Development Strategic Plan on October 1st and the project is targeted to be completed by the end of April 2023. Staff is actively drafting Homelessness Strategic Plan and plans to present the draft at the February 7, 2023, Council meeting. These strategic planning efforts will be important as the City Council evaluates goals and objectives for the 2023-2025 time period.

Setting the Stage Framework
The City of San Luis Obispo is a full-service city that provides public safety, public utilities, and general government services. Like most municipalities, the City is faced with balancing rising costs with limited resources while continuing to provide excellent levels of service to its residents. After years of “tightening the belt” to face challenges and pension obligations head-on, the 2021-23 Financial Plan allowed the City to allocate much needed resources back into ongoing services, programs, and infrastructure.

The 2023-25 Financial Plan allocations will depend on the economic forecast. City staff will be attending the Central Coast Economic Forecast on Friday, November 4, 2022. A high-level economic forecast that includes key takeaways from the Central Coast Economic Forecast, the JP Morgan Market update, the City’s sales tax consultant, and other credible sources will be provided during the January 10, 2023 “Budget Foundation” presentation. These forecasts will be harmonized with the 2nd quarter revenue results to create updated five-year forecasts for the City’s major funds and presented to the City Council as part of mid year budget on February 7, 2023.

2 The Public Review Draft progress report is available for review and comment from November 2 through November 22 at www.slocity.org/climateactionplan

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The General Fund
With the infusion of American Rescue Plan Act’s State and Local Fiscal Recovery Fund allocations and new revenue from Measure G-20, the City’s General Fund was able to maintain a healthy financial condition throughout the pandemic and to date. Moving into the 2023-25 Financial Plan, the City now faces the uncertainties with a looming recession, record high inflation, CalPERS losses, supply shortages, and labor market challenges.

The City’s annual operating budget for the General Fund totals about $83 million and includes 54 programs spanning from Building and Safety, Development Review, Emergency Response, Aquatics, Youth and Senior Services, Police Patrol, Traffic Safety, Streets & Sidewalk Maintenance, Transportation Planning and the Urban Forest to Accounting, Purchasing and City Administration. Many of these work programs are multifaceted – they provide core services to the community, execute General Plan programs, and also contribute to Major City Goals that are determined by the City with each financial plan. The General Fund’s budget is divided into those programs as illustrated below:

The “Setting the Stage” phase of goal setting is meant to provide Council with an update on the available resources and the cost of providing services to the community at current levels. This will help prepare Council and the community in its decision-making process for potential trade- offs from current core services to adjust for new programs and services with the new Financial Plan. Updated long-term forecasts based on 2021-22 audited yearend results and the first six-month activity of the current fiscal year will be provided at the Mid-Year review on February 7th, 2023.

Water Fund – Setting the Stage
The Water Fund supports the infrastructure and operations necessary to provide high quality water services with minimal service disruption. Nearly 60% of the Water Fund’s operating budget goes to water supply related costs. The remaining operating budget supports water treatment, water distribution, water administration and engineering, water resources, and utility billing functions.

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In all, the Water division delivers about 1.87 billion gallons of potable water each year to the City and Cal Poly. These services support the community’s health, well-being, and quality of life. To maintain adequate levels of service, rates must be sufficient to cover operations, capital asset maintenance, and improvements as well as debt obligations, and prudent reserve levels for unforeseen funding needs.

What lies ahead:

There are two primary challenges in the Water Fund’s immediate future. First, the County of San Luis Obispo is currently on pace for the fourth driest year of 128 years on record.

While water supplies are secure, ongoing drought conditions can result in decreased water use within the community and can result in loss of revenue. Staff is closely monitoring revenues and expenditures to this fund on a monthly basis. Second, inflation and resulting rises in industry-specific material costs are significantly, driving up the costs of operating these facilities. Specifically, chemical costs, electricity costs, and capital project delivery costs have all increased rapidly in the past few years and are expected to remain high during the next budget cycle.

On March 28, 2022, Governor Newsom enacted Executive Order N-7-22, which activates drought contingency measures for local water suppliers. In the next year the City should anticipate the following:

1. A reduction in water sales revenue as the community curtails water consumption.

2. Increased advertising and educational costs associated with increased public outreach around water conservation and drought.

3. The hiring of additional supplemental staff, which was approved as part of the budget supplement, to support increased workloads related to the mandated drought response.

While revenues are tracking with previous fiscal years, recent inflation and rising material costs have also increased the cost of providing water services. The department implemented an approved 3.5% rate increase on July 1, 2022 (Resolution No. 11257) and is currently conducting a rate cost of services study (consistent with the Financial Plan planning cycle) to determine the rates that will be required to maintain essential water operations. In the 2021-23 Financial Plan, an additional 3.5% rate increase was projected for July 2023, but given inflationary increases and other industry specific cost increases, this is likely too low.

Sewer Fund – Setting the Stage
The Sewer Fund supports the infrastructure and operations necessary to provide high quality sewer services with minimal service disruption. The operating budget supports water resource recovery, wastewater collection, wastewater administration and engineering, environmental programs, and utility billing.

In all, the Sewer division treats over 1.09 billion gallons of wastewater and delivers about 90 million gallons of recycled water. To maintain adequate levels of service, rates must be sufficient to cover operations, capital asset maintenance and improvements, debt obligations, and prudent reserve levels for unforeseen funding needs.

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What lies ahead
There are two primary challenges in the Sewer Fund’s immediate future. First, the completion of the Water Resource Recovery Facility (WRRF) upgrade will substantially change day-to-day operations. New baseline budgetary and operating parameters are being established and will need to be refined over time to operate the new plant with both opportunities and needs given new systems and technology. Second, inflation and more extreme rises in industry-specific material costs have increased the costs of conducting operations. Specifically, chemical costs, electricity costs, and capital project delivery costs have all increased rapidly in the past few years and are expected to remain high during the next budget cycle.

The completion of the Water Resource Recovery Facility (SLO Water Plus) upgrade will change the how the City treats wastewater. Staff have worked diligently to predict changes in costs and operations, but the extent of changes will not be fully realized until the facility is online and is ultimately licensed by the State of California. For example, the new facility will utilize ultraviolet light to disinfect wastewater, increasing electricity demands but significantly reducing chemical needs. During the upcoming transition to the upgraded WRRF, an increase of operational staff demands may be needed. A full organizational assessment will be conducted to align operational and capital needs with staffing.

While revenues are tracking with previous fiscal years, recent inflation and rising material costs have also increased the cost of providing wastewater services. The department implemented an approved 3.5% rate increase on July 1, 2022 (Resolution No. 11257) and is currently conducting a rate cost of services study to determine the rates that will be required to maintain essential water operations. In the 2021-23 Financial Plan, an additional 3.5% rate increase was projected for July 2023, but given inflationary increases and other industry specific cost increases, this is likely too low.

Parking Fund – Setting the Stage
The Parking Program has been working to “catch up” on many capital projects and programmatic efforts that were deferred during the pandemic due to revenue shortfalls and the reprioritization of resources. Beginning in Fiscal Year 2022-23, staff anticipate revenue levels to return to pre-pandemic levels. As a result, the Parking Fund will be supporting many capital projects as well as the day-to-day activities of the program.

Major projects and work efforts over the next couple of years include the ground-breaking of the Cultural Arts District Parking Structure. After many years of planning, it is anticipated that the Phase 1A of the project will break ground in December of 2022, with vertical construction beginning in fall of 2023. While the parking fund has experienced construction cost increases, staff will be working to secure funding (loan) to offset the upfront cost of the structure. To balance the uptick in service delivery and capital projects, rate increase have been adopted and will go into effect January 2023, with additional rate increase in future years (R-11334). Consistent with prior Council direction, any rate increases will be evaluated along with the Parking and Access Studies and determine

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how best to approach Council’s stated goal if possible, of preserving a portion of “free” time for cars in the parking structure. As a reminder, the 75 minute “free” parking is set to expire on July 1, 2023.

Parking is currently working to adopt and implement the Access and Parking Management Plan that establishes the parking policies and programs that will be applied across the City. The community input phases took place during October 2022, and final adoption is anticipated in March 2023. Parking is also focused on additional centralized pay station installations in the Railroad and Upper Monterey areas, as well as the implementation of credit card capable street meters.

Transit Fund – Setting the Stage
The Transit Fund has more recently seen an increase in ridership following the COVID19 pandemic and anticipates a return to a more normal level of ridership in the coming years. The program is working to complete and implement a Transit Innovations Study which will address the feasibility of new technology, bus stop enhancements, and will evaluate innovative service delivery methods as well as the feasibility, benefits, operating and capital costs and funding sources of enhanced service. Following consultant analysis, the Transit program is continuing to carry out services above and beyond other service providers in the region.

The Transit Fund will be managing increased capital projects and expenditures due to significant grant funding ($12.3 million in American Rescue Plan Act funds for operations and $4.9 million in funding from the San Luis Obispo Regional Transit Authority for bus replacements). This will result in electric bus purchases, EV infrastructure construction, transit center rehabilitation and improved bus stops, office space remodel, and street improvements to support the transit system. Two busses will be electrified by January and six more are anticipated. Electric buses are anticipated to begin service in Spring 2023.

In addition, Transit will be focused on negotiations and contract management with First Transit and Cal Poly, the ongoing management of complex fiscal analysis including fund forecasting, grant reporting, and farebox studies as well as increased communications and customer service support to rebuild and increase ridership levels consistent with City’s long term mobility goals and objectives.

The Strategic Scan
The “Strategic Scan” was introduced as part of the financial planning process in FY 2018-

19. The scan provides an in-depth presentation of important statistical information pertaining to social, economic, and environmental factors. It addresses issues pertinent to the delivery of City services and provides important context for decision making through the budget process. The scan is not exhaustive of all data relevant to the City and its program and service delivery but is intended to illustrate indicators that should be considered when establishing the new two-year budget. The presentation will be provided via will cover:

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 Basic demographics
 Public safety statistics
 Partnerships: Local, Federal, State
 The City as an employer
 The local job market & unemployment data
 Department workload and trends
 Development services activity
 Industry forecasts
 Housing and homelessness data
 Emergent economic, social, or
environmental information
 CalPERS update
The “Setting the Stage” presentation, including the strategic scan, will be published as agenda correspondence prior to the Council meeting on November 15th.

CIP Budgeting and Management – Recommended Changes (Attachment D) As discussed in the FY 2022-23 Budget Supplement, supply chain issues and cost escalation have significantly impacted the delivery of the City’s capital projects. The actual project costs have varied greatly from the adopted budgets. To provide staff with flexibility to adjust the budgets of individual capital projects, staff is recommending that the City Council appropriate funding for Asset Maintenance and Asset Replacement costs in the CIP budget at a ‘funding bucket’ level, rather than at the individual project level.

The new approach addresses two main challenges with delivering CIP projects:

1. Reduces staff time required to shift budget between projects. The CIP project budgets shown in the Financial Plan are estimates developed during the biennial financial planning process and are based on a conceptual project that is subject to design, permitting, field testing, etc. Developing project budgets closer to when they are initiated allows for more accurate cost estimates for actual delivery.

Currently, if a project is under-funded, staff must seek Council approval to reappropriate budget from other projects or from the Capital Reserve or postpone or eliminate the project.

2. Promotes getting projects done. Project budgets will be appropriated when the project is ready to start as opposed to at budget adoption, thus prioritizing the delivery of projects. CIP delivery is currently constrained (and will be for the foreseeable future) by several different factors, including staffing constraints, supply chain issues, and construction cost escalation. Having $300,000 assigned to a delayed project is not only a poor investment of City funds but also hobbles other projects that are ready to begin but may not have sufficient budget allocated.

Since most of the CIP is Local Revenue Measure funded, staff met with the Revenue Enhancement Oversight Commission (REOC) to introduce the proposed changes on September 22, 2022. They were generally supportive of the changes but requested follow-up information about the “checks and balances” and some examples of what future reports might look like. Staff will be returning to the REOC on December 8, 2022, with that information. The purpose of introducing this with Setting the Stage is to receive Council feedback on the approach. If Council and the Revenue Enhancement Oversight Commission (REOC) are supportive, a finalized policy recommendation will be prepared for adoption at the January 10th Budget Foundation meeting.

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Recommendation – Amendment to 2022-23 Budget (Attachment E) The City Council identified Housing as a Major City Goal and one of the action items identified in the work plan was the continued use of the City’s Affordable Housing Fund (AHF) to support the San Luis Obispo County Housing Trust Fund’s (HTF) operating expenses. The HTF is a Community Development Financial Institution that provides financing, technical assistance, and advocacy to increase the supply of affordable housing in the City.

The HTF provides funding for affordable housing projects, including property acquisition, construction, and refinancing. HTF staff also serve as a resource to City staff working with developers on affordable housing projects. In the 2019-21 Financial Plan, the City Council approved an ongoing transfer of $40,000 from the AHF to General Fund to be used to support the operating expenses of the HTF. Although the $40,000 was transferred from the AHF to the General Fund in FY 2022-23, the corresponding expenditure budget was not allocated; therefore, the funding currently resides in General Fund Unassigned Fund Balance.

Correction to 2022-23 Appropriation Limit
Under Article XIII B of the California Constitution, the City is required to calculate and adopt an appropriation limit to guide the budget appropriations. The 2022-23 Appropriation was calculated and adopted by Council on June 7, 2022 with the 2021-23 Financial Plan Supplement. During the City’s annual audit, the auditors found that the Consumer Price Index (CPI) used to calculate the limit was incorrectly rounded. The CPI used was 7.5% when it should have been 7.55%. Staff recalculated number and City appropriated proceeds of taxes remain well below the appropriation limit.

Previous Council or Advisory Body Action
Council reviewed and approved the 2023-25 Financial Plan calendar in preparation for the 2023-25 goal-setting process on October 4, 2022.

Public Engagement
Public comment on this item can be provided to the City Council through written correspondence prior to the meeting and through public testimony at the meeting.

Previously adopted Appropriations Limit 2022-23 (R-11332) $85,666,375 Corrected Calculation
Appropriations Limit 2021-22 $79,470,558
Consumer Price Index (revised) 7.55%
Population Factor: County Population Growth 0.28%
Compounded Percentage Factor (multiplicative not additive) 1.025% Appropriations Limit 2022-23 (revised) $85,706,220

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CONCURRENCE
The City’s internal Financial Plan Steering Committee concurs with the recommendations included in 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: No Budget Year: 2022-23
Funding Identified: Yes
Fiscal Analysis:

Funding Sources
Total Budget
Available
Current
Funding
Request
Remaining
Balance
Annual
Ongoing
Cost
General Fund
Unassigned Fund
Balance3
$301,000 $40,000 $261,000 $40,000
State
Federal
Fees
Other:

Total $301,000 $40,000 $261,000 $40,000
The only recommendation that has a fiscal impact in this agenda item is Recommendation #2. The City transfers $40,000 from Affordable Housing Fund to the General Fund annually for the purpose of funding the HTF. Because staff excluded the corresponding expenditure budget line in the 2022-23 adopted budget, the funding is still in the General Fund unassigned fund balance. Although, appropriating the expenditure budget now will reduce the unassigned fund balance to $261,000, the five-year forecast is still balanced.

ALTERNATIVES
The Council could direct staff not to adopt the budget amendment for 2022-23 Budget Allocation. This is not recommended because supporting the Housing Trust Fund is in line with current Major City Goals and was already approved as an ongoing expense with the 2019-21 Financial Plan.

3 2022-23 Supplemental Budget: Table G-5 General Fund Long Term Forecast (Page 23, line 43).

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ATTACHMENTS
A - FY 2022-23 Q1 Report
B - General Plan & Specific Plan Update
C - Climate Action Plan Update
D - Capital Improvement Plan Process Improvements
E - Draft Resolution – Amendment to the 2022-23 Adopted Budget

Financial Report Page 1

First Quarter Financial Report
Fiscal Year 2022-23
Introduction
This financial report provides an overview of the City’s financial position through the first quarter of fiscal year 2022-23 (July 1 - September 30, 2022) for the General Fund and the City’s four enterprise funds. It also provides an update on the status of the City’s Capital Improvement Program (CIP) projects and City’s adopted Major City Goals. Notable milestones or trends within the first quarter are addressed and detailed throughout the document. The report is divided into the following sections:

General Fund Update
As of September 30, 2022, operating expenditures trend on target with past years’ first quarters.

Revenues have almost entirely recovered to pre-pandemic levels. The City is also on track to meet its overall revenue forecast for 2022-23.
1 1 General Fund Update
2 Enterprise Funds
Update
3 Major City Goal
Update
4 Capital Improvement
Plan Update 6
Outlook and
Conclusion
22 Million in
Revenues
(YTD)
$34 Million
in OpEx
(YTD)
3 MCG
Tasks
Completed
in Q1
4 CIP
Projects
Completed
in Q1
5 Fund Balances & Other
Quarterly Updates

Financial Report Page 2
General Fund Revenue
Sales and Use Tax (including Measure G): The actuals listed above are for July and August remittals from the California Department of Tax and Fee Administration (CDTFA). While these are a good indicator of actual receipts; the City will have a clearer picture when it receives the September amount and any first quarter “cleanup” in November. The FY 2022-23 forecast assumed 3.8% growth in sales tax revenue over the FY 2021-22 budget. Based on the year-to-date numbers, growth is about 1.5% higher than the assumption, but it is too soon to say if this is indicative of any longer-term trend. This was due to many new transaction tax measures adopted throughout the state (including our own) and a backlog in the CDTFA system.

Property Tax: The City receives most of its property tax revenue in the 3rd and 4th quarters of the fiscal year. The County recently sent the City updated property tax estimates and the currently adopted budget is still in line with the new estimates.

Transient Occupancy Tax (TOT): The central coast had a remarkably busy tourism summer. The first quarter of TOT remittals reflect the high demand for hotels and homestays, with July setting an all-time record high of $1.3 million in TOT. However, August showed an 8% decline over the prior year. Other indicators that can be used to analyze trends are Average Daily Rate (ADR) and Occupancy Rate (Occ).

Both indicators show almost no change from the prior year. Although the start of the year looks promising, the City’s tourism program along with the countywide tourism office expect to see a decline in FY 2022-

23. When and to what degree it declines remains uncertain, but with the budget adoption, staff consider a slow-down and budget TOT accordingly.

Table 1: General Fund Revenues Q1 Actuals
%
Received Total Budget Q1 Actuals
%
Received
Variance
from prior
year
Tax & Franchise Revenue
1 Sales and Use Tax (July-Aug) $ 3,748,186 20% $ 21,789,000 $ 3,945,734 18% 5.3% 2 Local Revenue Measure G (July-Aug) $ 4,849,726 20% $ 27,049,000 $ 5,114,415 19% 5.5% 3 Property Tax $ 541,073 3% $ 20,746,387 $ 311,029 1% -42.5% 4 Safety Prop 172 $ 91,695 27% $ 497,000 $ 99,220 20% 8.2% 5 Transient Occupancy Tax $ 3,062,114 42% $ 8,636,000 $ 3,490,625 40% 14.0% 6 Utility User Tax $ 657,317 12% $ 5,544,000 $ 1,397,746 25% 112.6% 7 Business Tax $ 2,784,624 115% $ 2,889,000 $ 3,108,125 108% 11.6% 8 Cannabis Tax $ 156,419 12% $ 1,400,000 $ 244,581 17% 56.4% 9 Franchise Fees $ 186,950 12% $ 1,606,000 $ 207,841 13% 11.2% 10 Gas Tax (Special Revenue Fund) $ 327,690 27% $ 1,245,024 $ 339,663 27% 3.7% 11 SB1 Gas Tax (Special Revenue Fund) $ 164,687 18% $ 1,049,877 $ 176,565 17% 7.2% 12 Total Tax & Franchise Revenue $ 16,570,482 20% $ 92,451,288 $ 18,435,543 20% 11% 13 Development Review $ 1,145,320 18% $ 6,145,665 $ 1,734,393 28.2% 51.4% 14 Parks & Recreation $ 443,318 28% $ 1,978,920 $ 377,831 19.1% -14.8% 15 Fire $ 282,691 20% $ 1,576,322 $ 329,467 20.9% 16.5% 16 Police $ 113,638 18% $ 638,597 $ 93,182 14.6% -18.0% 17 Business Licenses (Incl Cannabis) $ 530,449 73% $ 655,911 $ 598,226 91.2% 12.8% 18 Other Revenue $ 168,391 13% $ 1,020,630 $ 159,518 15.6% -5.3% 19 Grants & Subventions $ 70,474 $ 668,008 $ 287,097 43.0% 307.4% 20 Total $ 19,324,764 20% $ 105,135,342 $ 22,015,256 21% 14% 2021-22 2022-23

Financial Report Page 3
Utility User Tax (UUT): Year-to-date UUT revenue is tracking higher than it did in FY 2021-22 because of a change in collection and administrative responsibilities to a third-party vendor, HDL which caused a delay in last year’s collection. Current year actuals are on trend with years prior to FY 2021-22. Staff will continue to monitor monthly UUT remittals and adjust the budget at mid-year if necessary.

Business Tax: The City collects business taxes at the beginning of the fiscal year and they are based on the gross receipts of the previous calendar year. FY 2022-23 business tax revenues are significantly higher than the previous year because FY 2021-22 receipts were based on 2020, the year hardest hit by the pandemic. When looking back to FY 2019-20 as the base year, business tax revenue grew by about 6.4% or an average of approximately 3.2% per year. This is more than the City had assumed in its projections but is in line with the spike in economic activity that is reflected in sales and tourism taxes.

Cannabis Tax: Monthly cannabis tax revenue has stayed very consistent since the second retail location opened in April 2022. Given that the third retail business did not open as expected, staff will need to adjust the budget and forecast at mid-year. The new FY 2022-23 projection is forecasted to be around $1 million.

Franchise Fees: These are fees on privately owned utility companies and other businesses that use the City's infrastructure during daily business. The fees are calculated based upon contracts with the businesses. The City has collected all of the fees expected as of Q1 and is on track to meet its budget projection for the year.

Gas Taxes: Both the Highway User Tax (line 10) and the SB1 Road Maintenance and Rehabilitation Apportionment (line 11) are tracking as expected. The budget for FY 2022-23 is based on information provided by the State. This revenue is a fee per gallon and not based on gas prices.

Development Review: The revenues in Development Review are trending higher than the previous year primarily due to building permit and infrastructure plan check/inspection revenues. More building permits were issued compared to the same time last year with a higher average valuation per building permit.

With respect to infrastructure, the first quarter revenues included the collection of subdivision improvement plan review fees for two large development projects located in the City.

Police: Police revenue is lower than last year for a couple of reasons. The first being a problem with the Parking division issuing permits in some residential areas. Therefore, officers were only giving warnings (as opposed to citations) for the first quarter in these areas. This issue has been resolved and the losses from Q1 will have only a minor impact on the overall revenue picture. The second reason is that some annual invoices were billed earlier in the year last year, inflating the Q1 actual. By mid-year, these variances should smooth out and the department is on track to meet its current forecasts.

Fire: Fire Department related revenues are on track with the projections and in the same position that they were at last year (20% of budget). The reason for the increase in actual revenue over the prior year is due to an increase to the Cal Poly annual agreement amount as well as an increase in Fire Plan Check & Inspection revenue which is line with development activity trends mentioned in the Development Review section above.

Parks & Recreation: Parks and Recreation saw a 15% decrease in revenue from the first quarter of FY2021-

22. This is due to a shift in the timing of childcare registration costs from July to May and June of 2022.

Since FY 2023-24 childcare registration will occur in April through June of FY 2022-23, there should not be

Financial Report Page 4
any impact to the annual budget. Additionally, the summer camp programs were restructured to supplement San Luis Coastal Unified School District’s no-cost, full day summer school programming. This reduced operating hours (and revenue) for the Department's summer camp program, but also resulted in temporary salary savings.

Business and Cannabis Licenses: Business licenses fees are on track with projections. Business licenses are renewed at the beginning of the fiscal year; therefore, most of the revenue for the year has been collected. An update on the number of renewed licenses is provided in Section 5 of this report. The cannabis operator license fee budget was developed based on the projected number of businesses that would be open this year. Two businesses did not open as anticipated; therefore, the budget will need to be reduced by about $90,000 at mid-year.

Other Revenue/ Grants & Subventions: Grant revenues fluctuate from year-to-year based on availability and award success. The “Other Revenue” category includes things like interest revenue, lease revenue, and miscellaneous revenue that is not department specific. In most cases, the City has just not received these revenues yet which is why the percent received is low. This category also includes “net zero” revenues that are offset by expenditures. Although the year-to-date amount is lower than last year, staff expect to receive the projected revenue by year-end.

Financial Report Page 5
General Fund Expenditures
Overall expenditure trends track with the adopted budget. The graphs below include first quarter consumption for FY 2022-23 compared to budget. The “Total Expenditures & Obligations” column includes both costs that have already been incurred and costs that are obligated on purchase orders.

Table 2 - Expenditures by Type:

Expenditure Type Initial Budget
Budget
Adjustments
& Carryover
Total
Budget
Total
Expenditures/
Obligations
%
Consumed
Staffing $54,336,034 $583,457 $54,919,491 $12,296,212 22% Contract Services $7,946,644 $3,176,312 $11,122,956 $5,838,042 52% Other Operating Exp $6,094,224 $1,317,226 $7,411,450 $2,895,219 39% Utilities $2,963,728 $162,213 $3,125,941 $1,199,672 38% Unfunded Liability1 $11,853,918 $0 $11,853,918 $11,853,918 100% Grand Total $83,194,548 $5,239,208 $88,433,756 $34,083,062 39% There are no significant variances to point out in the General Fund. It is expected that contract services and other operating expenses may track above 25% because annual purchase orders are set up at the beginning of the year and the funds are considered “Obligated” from that point forward. Staffing should track at a consistent level and 22% is consistent with expected expenditure levels.

Table 3: Expenditures by Department:

1The City paid the entire CalPERs unfunded liability payment at the beginning of the year. This saves the City approximately $300,000 when compared to the monthly payment option.

Financial Report Page 6
Enterprise Fund Update
Utilities: Water and Sewer Funds
The tables below include first quarter actuals for FY 2022-23 compared to the projection. The “Total Expenditures & Obligations” column includes both costs that have already been incurred and costs that are obligated on purchase orders.

Revenue: Due to utility billing timings, revenues reflect roughly two months of revenue. Relative to projected revenues for fiscal year 2022-23, first quarter revenues put the Utilities department on track to hit revenue targets. Relative to the fiscal year 2021-22 revenue actuals, water revenue is trending higher, and sewer revenue is trending lower. Water revenue is trending higher for two reasons:

1. Rates were increased by 3.5% on July 1, 2022 (Resolution No. 11257)

2. The Utilities department delivered 3.2 million more gallons of recycled water in the first quarter of fiscal year 2022-23 than fiscal year 2021-22
Sewer revenues are trending lower because Cal Poly sales were substantially higher in fiscal year 2021-

22. Cal Poly had drained a tank in August 2021 that resulted in 1.48 million additional gallons of billable outflow.

Expenditures: There are no significant variances to point out at this time. It is normal and expected that contract services and other operating expenses track above 25% because annual purchase orders are set up at the beginning of the year and the funds are considered “Obligated” from that point forward. Staffing Table 4: Water/Sewer Fund
Revenue
Q1 Actuals %
Received Total Budget Q1 Actuals % Received
Variance from
prior year
Water Fund $ 5,186,017 21% $ 26,036,569 $ 5,578,487 21.4% 7.6% Sewer Fund $ 3,918,338 17% $ 19,218,757 $ 3,845,425 20.0% -1.9% Total $ 9,104,355 20% $ 45,255,326 $ 9,423,912 21% 4%
2021-22 2022-23 Table 5: Expense Type by Fund Initial Budget Budget
Adjustments Total Budget
Total
Expenditures &
Obligations
% Consumed
Water Fund
Staffing $ 4,270,177 $ (6,720) $ 4,263,457 $ 958,015 22% Contract Services $ 665,420 $ 210,824 $ 876,244 $ 454,484 52% Other Operating Expenditures $ 12,175,243 $ 443,564 $ 12,618,807 $ 9,314,130 74% Utilities $ 691,085 $ 7,040 $ 698,125 $ 243,410 35%
Unfunded Liability $ 698,149 $ - $ 698,149 $ 698,149 100% Water Fund Total $ 18,500,074 $ 654,709 $ 19,154,782 $ 11,668,188 61% Sewer Fund
Staffing $ 4,167,076 $ 101,394 $ 4,268,470 $ 905,525 21% Contract Services $ 863,361 $ 324,524 $ 1,187,885 $ 706,481 59% Other Operating Expenditures $ 1,741,111 $ 262,160 $ 2,003,271 $ 1,285,435 64% Utilities $ 937,710 $ 4,713 $ 942,423 $ 173,889 18%
Unfunded Liability $ 722,419 $ - $ 722,419 $ 722,419 100% Sewer Fund Total $ 8,431,676 $ 692,791 $ 9,124,467 $ 3,793,748 42% 2

Financial Report Page 7
should track at a consistent level and the actuals seen above are due to staffing vacancies and subsequent savings during staffing transitions.

Parking Fund
The tables below include first quarter actuals for FY 2022-23 compared to budget projection. The “Total Expenditures & Obligations” column includes both costs that have already been incurred and costs that are obligated on purchase orders.

Revenue: Parking revenues have recovered back to “normal”. FY 2021-22 revenues were particularly low because of staffing shortages and lack of resources needed to enforce parking. Additionally, the parking structure control systems were not functioning correctly which led to some lost revenue. In FY 2022-23, the combination of increased foot traffic downtown, more consistent staffing levels, expanded enforcement hours, and properly functioning technology have greatly improved the revenue picture for parking.

Expenditures: There are no significant variances to point out at this time. It is normal and expected that contract services and other operating expenses track above 25% because annual purchase orders are set up at the beginning of the year and the funds are considered “Obligated” from that point forward. Staffing should track at a consistent level and the actuals seen above are due to staffing vacancies and subsequent savings during staffing transitions.

Transit Fund
The tables below include first quarter actuals for FY 2022-23 compared to the projection. The “Total Expenditures & Obligations” column includes both costs that have already been incurred and costs that are obligated on purchase orders.

Table 6: Parking Fund Revenue Q1 Actuals
%
Received Total Budget Q1 Actuals % Received
Variance from
prior year
Parking Fund $ 1,421,963 26% $ 5,830,750 $ 1,866,772 32% 31.3% Total $ 1,421,963 26% $ 5,830,750 $ 1,866,772 32% 31%
2021-22 2022-23
Table 7: Expenditure by Type Initial Budget
Budget
Adjustments Total Budget
Total
Expenditures &
Obligations
% Consumed
Staffing $ 1,689,924 $ - $ 1,689,924 $ 306,294 18%
Contract Services $ 584,065 $ 243,327 $ 827,392 $ 561,714 68% Other Operating Expenditures $ 401,525 $ 20,782 $ 422,307 $ 141,362 33% Utilities $ 221,933 $ - $ 221,933 $ 53,446 24%
Unfunded Liability $ 227,997 $ - $ 227,997 $ 227,997 100% Parking Fund Total $ 3,125,444 $ 264,108 $ 3,389,552 $ 1,290,813 38%

Financial Report Page 8
Revenue: This year, the City received a state grant for low carbon transit that was not receive last year.

Additionally, the City received its Q1 TDA payments earlier this year, leading to a variance when compared to the prior year. There was also an update to the Cal Poly service contract which increased the Local Bus Fare amount for Q1. Transit won’t receive most of its Federal and State reimbursements until the end of the fiscal year.

Expenditures: There are no significant variances to point out at this time. The Transit Fund’s largest operational cost is for annual transportation services through its provider, First Transit. Since this purchase order has been set up for the year, most (86%) of the Contract Services budget has been obligated. The budget reflects the full service at pre-pandemic level. Transit is striving to restore bus service at prepandemic levels. However, due to driver shortages, the City's transit service is operating at reduce levels.

First Transit is diligently recruiting drivers. Though First Transit has made progress in hiring drivers, the driver count is still below the driver requirement to operate the full schedule. Staff will be addressing this issue with discretionary grant funds to attract drivers and to achieve full service.

Table 8: Transit Fund Revenue Q1 Actuals %
Received Total Budget Q1 Actuals % ReceivedVariance from prior year Federal $ 0 0% $ 7,248,297 $ - 0% -100.0%
Local (Bus Fare) $ 173,916 23% $ 850,000 $ 194,947 23% 12.1% Other Revenue/ Interest Revenue $ (5,539) -85% $ 297,500 $ 344,183 116% -6313.5% State $ - 0% $ 2,040,941 $ 751,816 37%
Total $ 168,376 4% $ 10,436,738 $ 1,290,946 12.4% 666.7% 2021-22 2022-23
Table 9: Expenditure by Type Initial Budget
Budget
Adjustments Total Budget
Total
Expenditures &
Obligations
% Consumed
Staffing $ 276,639 $ - $ 276,639 $ 45,739 17%
Contract Services $ 2,992,743 $ 311,968 $ 3,304,711 $ 2,832,062 86% Other Operating Expenditures $ 684,513 $ 37,855 $ 722,368 $ 581,390 80% Unfunded Liability $ 29,477 $ - $ 29,477 $ 29,477 100%
Transit Fund Total $ 3,983,371 $ 349,823 $ 4,333,194 $ 3,488,668 81%

Financial Report Page 9
Major City Goal Update
Table 10: Major City Goal Tasks with Completion Dates in FY 2022-23 Q1 On track Problems emerged with no solution yet
Task delayed or potential setbacks with workable solutions Strategy Task Status Completion Date
Updated
Completion
Date
Comments (if applicable)
Economic Recovery, Resiliency & Fiscal Sustainability

1.2 c-2. Set aside funding for the potential to expand
the various Open Slo programs (Parklets, Street
closures) to other areas of the City to support
business recovery.

FY23 Q1 Completed
Council Adopted an Outdoor Dining/
Parklets ordinance (O-1716) on July 19,
2022.

1.4 d-13. City Hall lighting FY23 Q1 FY24 Q4
Completion Date Updated. Project delayed
due to staffing constraints.

1.7 b. Regional Transit Authority Analysis: The RTA is
currently building a Regional Transit HUB 800 feet
from the City’s SLO Transit Bus Yard. Much of the
infrastructure that supports SLO Transit is aged
and nearing the end of its lifespan. All transit
providers are required to shift the fleet of transit
vehicles to zero emission vehicles.

This funding would support the analysis and
review of SLO Transit’s operations and
infrastructure to determine if there may be
benefit to sharing infrastructure, equipment or
centralizing services to provide increased
community services at the same or reduced
purchasing requirements, alternative project
delivery methods and other options to support
local businesses and employees. The Community
Services Group will be leading this effort.

FY23 Q1 Completed Presented to City Council as a Study Session on August 18, 2022.

Diversity, Equity, Inclusion

2.1 h. Hire Interns - Cal Poly, Cuesta, community
candidates - .25 FTE - 2 positions Y1 @ midyear /
2 - Y2, full year
FY23 Q1 FY23 Q2
The office of DEI recentely hired a
management fellow to support the staffing
structure. Following that hire staff have
evaluated the need for interns and plan to
begin hiring process in January of 2023.

2.7 m. Park major maintenance and repairs specific
to Cheng Park improvements and Mission Plaza
railing improvements.

FY23 Q1 FY23 Q3
Staff are working on final design
documents. Expect to advertise the project
during November. Estimate completion of
the project by end of Q3 (spring)
Housing and Homelessness

3.1 e. Subdivision Regulations Update (HE 6.20) FY23 Q1 FY23 Q4 Two vacant Associate Planner positions and
a gap in hiring a Cannabis Coordinator have
delayed the delivery of this work effort.

Climate Action, Open Space and Sustainable Transportation

4.4 i. Complete construction of the Orcutt Road/Tank
Farm Road Roundabout, reducing congestion and
auto emissions and improving access and safety
for bicycles, pedestrians and drivers.

FY23 Q1 Completed
3

Financial Report Page 10
CIP Update – Completed and Ongoing
Table 11: Completed and Ongoing Construction Projects
See next page for the status of major legacy projects in design.

ID# Project
Current
Construction
Status
Approximate
Project Budget
Expended
(as of 10/25/22)
Estimated
Construction
Completion Date
Additional Comments
1 Tank Farm Road and Orcutt
Roundabout Complete $ 4,776,311 Complete
2 Area 6 and 7 Curb Ramps Complete $ 880,783 Complete
3 Silt Removal 2022 Complete $ 285,110 Complete
4 2583 Greta Storm Drain Repair Complete $ 128,428 Complete 5 Verde/Luneta/Ramona/Broad
Sewer Replacement
Construction
Ongoing
$ 1,967,027 Q2 FY 22-23
6 2022 Roadway Sealing Construction
Ongoing
$ 2,923,384 Q2 FY 22-23
7 Groundwater Contamination
Characterization Project
Construction
Ongoing
$ 825,488 Q2 FY 22-23 Grant funded.
8 40 Prado Bus Shelter Relocation Construction
Ongoing
$ 76,005 Q2 FY 22-23
9 Fire Station 2 Bathroom Remodel Construction
Ongoing
$ 72,280 Q2 FY 22-23
10 Fire Station 1 and Fleet
Maintenance Roofing
Replacement
Award Phase $ 58,550 Q2 FY 22-23
11 Santa Rosa at Montery
Intersection Improvements
Construction
Ongoing
$ 920,102 Q3 FY 22-23
Project in suspension until January
2023, due to material delays.
12 Cultural Arts District Parking
Structure Phase 1A Advertising $ 2,261,026 Q3 FY 22-23
Budget reflects expenditures to date
on entire project. Only Phase 1A is in
the advertising phase.
13 City Hall Meeting Room Tenant
Improvements
Award Phase $ 20,307 Q3 FY 22-23
14 Walnut and Morro Strom Drain
Repair
Advertising $ - Q3 FY 22-23
No budget has been expended becuase
design was done in house.
15 Parks and Recreation Office
Rehabilitation
Construction
Ongoing
$ 558,945 Q4 FY 22-23
Construction is substantially
completed, with staff occupying the
offices. Project will be complete once
delayed furniture and other materials
are recieved.
16 Calle Joaquin Lift Station
Replacement
Construction
Ongoing
$ 6,545,344 Q1 FY 23-24
17 Wastewater Resource Recovery
Facility Upgrade
Construction
Ongoing
$ 120,926,133 Q2 FY 23-24
18 Water Treatment Plant Generator
Improvement Project at Facility
98 Advertising $ 41,169 Q4 FY 23-24
Completed & Ongoing Construction Capital Projects (July 1, 2022 - September 30, 2022) 4

Financial Report Page 11
Table 12: Status of Major and Legacy Projects in Design ID# Project Current Status
Approximate
Project Budget
Expended
(as of 10/25/22)
Estimated
Construction Start
Date
Additional Comments
1 Cheng Park Revitalization Design Phase $ 49,000 Q3 FY 22-23 2 North Broad Street
Neighborhood Park Design Phase $ 179,260 Q4 FY 22-23
3 North Chorro Neighborhood
Greenway
Design Phase $ 857,507 Q4 FY 22-23
This project was previously known as
the 'Anholm Greenway'.
4 Mission Plaza Restrooms and
Kiosk Cafe Design Phase $ 443,638 Q2 FY 23-24
5 Cultural Arts District Parking
Structure Phase 2 Design Phase $ 2,261,026 Q2 FY 23-24
Budget reflects expenditures to date
on entire project. Phase 2 of the
project is currently in the design phase.
6 Mid-Higuera Bypass Design Phase $ 695,401 Q3 FY 23-24 The majority of the project is funded
with County Zone 9 funding.
7 Prado Road Bridge and Road
Widening Design Phase $ 2,161,281 Q1 FY 24-25
8 California and Taft Roundabout Design Phase $ 275,572 Q2 FY 24-25 Right of way acquisition has delayed
this project. Due to delays, funding for
this project was reduced to pay for the
2022 Roadway Sealing project which
came in signficantly over budget. This
project is planned to be re-funded in
the 2023-25 Financial Plan.
9 Prado Road Interchange
Project
Approval/Env.

Document
Phase (PAED)
$ 1,305,772 Q2 FY 25-26
10 Public Safety Center Planning and
Entitlements $ 187,944 Q2 FY 25-26
Status of Major and Legacy Projects in Design

12 Fund Balances
The fund balance is the fund balance at the beginning of the fiscal year plus the difference between revenues and expenditures. The beginning fund balance represents the residual funds brought forward from the previous year (ending balance). In the case of the enterprise funds, the “Working Capital” is a shown below. Working Capital is equal to the fund’s current assets minus current liabilities. The total balance includes reserved or restricted amounts.

Table 13: Fund Balance/Working Capital by Fund
101 - General Fund $ 19,665,073
601 - Water Fund $ 25,655,380
602 - Sewer Fund $ 41,205,584
611 - Parking Fund $ 13,895,890
621 - Transit Fund $ 1,308,205
Q1 Update on Business License and Other Permit Renewals Annual business licenses and various permit renewals and fees are due to the City in the first quarter of the fiscal year. Staff were successful in collecting most of the renewals by the due date (July 31, 2022).

Delinquent customer accounts are now subject to late fees and/or administrative fines. The table below shows an update on where the City is at with collection of these license and permit renewals as of October 31, 2022.

Table 14: License/ Permit Type Renewed Delinquent
Business Licenses 8,389 274
Business Licenses – Homestays 132 3
Fire Permits 237 45
Industrial User Permits 258 28
Outlook and Conclusion
All the City’s major funds began FY 2022-23 in good financial standing. While revenue trends are looking favorable, most economists are signaling some degree of downturn that will begin either in late 2022 or early 2023. The establishment of the revenue stabilization reserve will help hedge against any sudden fluctuation, but Council will need to carefully consider the economic uncertainties when preparing for the 2023-25 Financial Plan. Not only has the City’s cost of doing business increased due to inflation and supply shortages but its core services have expanded over the past few years. New programs such as the Office of Diversity, Equity, and Inclusion as well as many of the Housing and Homelessness efforts are now part of the City’s base budget. Updated long-term forecasts that consider revenue trends and expenditure impacts will be presented to Council at the February 7, 2023 Mid-Year review. 6 5

General Plan Update
October 2022
The purpose of this report is to supply a summary of the status of all General Plan implementation programs. These programs are actions that implement goals, objectives and policies. As such, checking our progress in implementing General Plan programs is an excellent way of checking our progress in achieving General Plan goals and objectives. Based on the information, there was approximately a 4% increase in programs that were completed or integrated into operations since the last update provided as part of the 2021-23 Financial Plan. For complete detail on the General Plan and all its elements visit the Community Development General Plan page here.

Program Count by Element
LAND USE ELEMENT - 73
CIRCULATION ELEMENT - 69
HOUSING ELEMENT - 65
NOISE ELEMENT - 8
CONSERVATION AND OPENS SPACE ELEMENT - 68
SAFETY ELEMENT - 34
PARKS AND RECREATION ELEMENT - 41
WATER AND WASTEWATER ELEMENT -38
35% 42%
22%
Low Medium High
Programs Categorized by Difficulty
396
Total Programs
98%
Completed or integrated
in ongoing operations

General Plan Elements
Land Use Element: There are 73 Land Use programs are in place, of which 26% are complete. These programs set forth a pattern for the orderly development of land within the City's planning area. This pattern should be based on residents' preference and on protection of natural assets unique to the planning area. The Element also describes the expected level of population growth resulting from construction of the kinds of housing units included in the plan, as well as the kinds of new commercial and industrial development that are responsive to the City's economic needs.

Circulation Element: There are 69 circulation programs are in place, of which 10% are complete.

These programs recognize implications of land use policy on all modes of movement and sets up policies, standards, and implementation measures that work with the Land Use Element update and address both existing and potential circulation opportunities and deficiencies.

Housing Element: There are 65 Housing Element programs are in place, of which 15% are complete.

The City updated the Housing Element in December 2020. The changes to housing policies and programs reflect the changing needs, resources, and conditions in the community, and respond to changes in state and federal housing law.

Noise Element: There are 8 Noise Element programs in place, of which 25% are complete. These policies supply the proper protections needed to allow development and mixture of compatible uses while protecting residents and land uses from noise impacts.

Conservation / Open Space: There are 68 Conservation / Open Space programs in place, of which 15% are complete. These programs address protection of open space amenities and resources in detail. The Land Use Element works with this element and incorporates concepts such as clustering and buffering open space areas to enhance their protection.

Safety Element: There are 34 Safety Element programs in place, of which 21% are complete. These programs find hazards that influence the locations and types of land uses proposed. The Land Use and Safety Elements share several safety topics. The Land Use Element update adds to the Safety Element through the inclusion of safety through environmental design concepts and to airport safety policies and programs.

Parks & Recreation Element: There are 41 Parks & Recreation Element programs in place, of which 12% are complete. This program supplies active recreation areas and facilities that are essential to neighborhoods. The Land Use Element works to incorporate parks and recreation into the larger land use alternative sites and enhance integration of these resources into neighborhoods.

Water & Wastewater Element: There are 38 Water & Wastewater Element programs in place, of which 8% are complete. These programs supply policies and programs to support adequate services to the community. The Land Use Element includes alternatives that are in keeping with the services available and ensures that infrastructure is sized appropriately to serve future service needs and planning.

Program Complete Lead
Number Program Summary Or Ongoing Low Med High Dept.

LAND USE ELEMENT
1 Growth Management

1.14.1 The City will monitor reports from the County “resource management system” and advocate for adherence to that
system.

O L CD/UT

1.14.2 The City shall advocate and help arrange quarterly coordination meetings among planning directors of local jurisdictions to discuss regional issues.

O L CD

1.14.3. The City will participate with the County in reviewing and providing input on County projects and general plan
amendments that have potential to impact the City or be inconsistent with City policies.

O M CD

1.14.5 The City shall maintain a memorandum with the County, pledging that neither agency approve a substantial
amendment to its plan for San Luis Obispo's planning area without considering the recommendation of the other agency C CD

1.14.6 The City shall prepare and maintain a Planning Area Map in the General Plan. The City will establish and maintain
County concurrence for the map, which applies to the City’s Planning Area outside the urban reserve.

O L CD

1.14.7 The City shall maintain a development fee program that covers costs associated with City services and facilities.

Periodic review of the fees collected will ensure they are adequate to cover City costs.

O H CD

2.1 Conservation and Development of Residential
Neighborhoods

2.10.1. The City shall review, revise if deemed necessary, and actively enforce noise, parking, and property-development and property-maintenance standards.

O M CD

2.10.2. The City shall implement, and regularly review and update property-maintenance regulations focused on proper
enclosure of trash, appearance of yards and buildings from the street, and storage of vehicles.

O L CD

2.11.1 The City shall evaluate student housing preferences and consider revising development standards to better meet
them in multifamily housing near campus.

O M CD

2.11.2. The City shall review, and revise, if deemed desirable, its standards for multifamily housing so that apartments will provide usable open space and storage similar to the
requirements for condominiums.

C CD

2.12. The City shall adopt special development standards to guide addition of dwellings within Downtown residential areas to implement Policy 2.8.

C CD

2.13. The City will consider new regulations, for Low-Density and Medium-Density Residential areas, to require special review for (1) incompatibly large houses, (2) replacement or infill homes in existing neighborhoods, and (3) accessory
buildings with plumbing facilities allowing easy conversion to illegal second dwellings.

C CD

2.14. The City shall implement Neighborhood Wellness Action Plans to help residents preserve and enhance their
neighborhoods.

C CD

2.15. The City will evaluate alternatives to the current maximum number of dwelling units per acre (based on bedroom count) and height, parking, and setback standards, to regulate residential building intensity, and bulk and mass. Floor area limits will be considered.

C CD
Status of General Plan Implementation Programs
STATUS AS OF October 2022
Difficulty to Complete

1.14.4 CD
The City shall seek County Board of Supervisors approval amending the County Land Use Element to make it
consistent with this element. The City will work with the County during updates of the County's plan for the San Luis Obispo planning area
OM

Program Complete Lead
Number Program Summary Or Ongoing Low Med High Dept.

Status of General Plan Implementation Programs
STATUS AS OF October 2022
Difficulty to Complete

2.16. The City shall evaluate the potential to use portions of Cityowned parking lots and structures for residents’ parking. O H CD/PW

2.17. The City shall require new housing projects in the Downtown area to provide residents with information and services to offset vehicle needs, such as providing transit passes, providing space for hourly car rental services, and providing on-site bicycle storage facilities.

O H CD/PW

2.18. The City shall evaluate the potential for development fees to fund new parking spaces in an additional parking structure for residents of new housing projects in the Downtown core. O H CD/PW 3 Commercial & Industrial Development

3.9. The City shall amend its Zoning Regulations to implement the changes included in the 2014 General Plan update
program.

C CD

3.10. Zoning Regulations and Community Design Guidelines will include measures such as location and shielding of
mechanical equipment; location of truck loading, trash
collection areas, and loudspeakers; noise attenuation
measures along property lines to prevent unacceptable
noise exposure for residential areas or other noise-sensitive uses.

C CD

3.11. The City shall investigate ways to encourage more cohesion between the existing shopping centers on Madonna Road. O M CD/ADM

3.12. The City shall amend the Community Design Guidelines to address transitions between neighborhood commercial
development and adjacent residential neighborhoods.

C CD

3.13. The City shall review zoning regulations to consider allowing visitor-service uses in office zones adjacent to community commercial zones in the Downtown and adjacent to
Monterey Street between Johnson and Santa Rosa.

O H CD

3.14. The City will investigate emerging technologies and trends to evaluate whether updates to zoning regulations are
needed.

C CD

3.15. The City shall implement appropriate strategies for business retention and expansion with a focus on those providing head-of-household jobs.

O H ADM

3.16. The City shall provide zoning incentives and investigate a program coordinating commercial and industrial
development for the provision of child care and elder care for workers.

C CD
4 Downtown

4.25. The City shall consider features of "A Conceptual Physical Plan for the City’s Center" (Downtown Concept Plan) in the approval of projects in the Downtown, recognizing that the plan is a concept and is intended to be flexible.

O H CD

4.26. The City shall undertake a study of visual resources within the Downtown core area to identify potential locations for new public-owned open places with access to views of
important scenic resources. The City will consider
acquisition of one or more of these open places as
resources permit.

O H CD

4.27. The City shall explore the full or partial closure and re-design of Broad Street between Palm and Monterey Streets, and
Monterey Street between the two connections with Broad
Street to effectively extend, either permanently or for special events.

O H CD/PW

4.28. The City shall modify zoning regulations to allow efficiency units and variable density in the Downtown Core. C CD

4.24. The City shall update the Downtown Concept Plan by 2016 and shall regularly update the plan as required to address i ifi t h i ff ti th D t
C CD

Program Complete Lead
Number Program Summary Or Ongoing Low Med High Dept.

Status of General Plan Implementation Programs
STATUS AS OF October 2022
Difficulty to Complete

4.29. The City shall work with the Downtown businesses and residents, the BID, and Chamber of Commerce to manage
impacts from downtown drinking establishments, and if
necessary, enact additional regulations to ensure that the late night environment in and near Downtown is safe and pleasant.

O M CD/PD

4.30. The City shall develop a master plan for San Luis Obispo Creek in the Downtown area. O H CD/ADM

4.31. The City shall prepare an inventory of uses in the Downtown Core. Particular attention shall be given to identifying uses at the street level as these uses directly impact the
pedestrian experience and vibrancy of the Downtown. This information shall be used to target business support and attraction.

O M CD

4.32. The City shall incorporate into its zoning regulations specific criteria for evaluating use permits for bars/taverns, night clubs and late night drinking establishments. C M CD

4.33. The City will modify its Community Design Guidelines to enhance Safety and Crime Prevention through
Environmental Design.

O M CD/PD

4.34. The City, working with the Downtown Association,
businesses, landlords, and residents will consider
emergency callboxes at strategic locations in the Downtown. O M PD/ADM

4.35. The City working with the Downtown Association, Downtown businesses and residents shall develop a program to
encourage lighted storefronts and street frontages
throughout the night.

O L PD/ADM

4.36. All specific plans shall identify design features utilized to enhance public safety. O L CD/PD

4.37. The City shall conduct a nighttime safety audit of key areas of the City to see where deficiencies in environmental design may exist and should be improved. Key Areas should be
defined as areas experiencing higher crime than City
average by SLOPD.

O M PD
5 Public & Cultural Facilities

5.3. The City shall continue to work to develop a plan for meeting additional space needs in the Downtown. The City shall
work with the County to coordinate site selection, building design, circulation and utility services, parking, trip reduction, and funding.

OH CD/PW/A
DM

5.4. The City, Cal Poly, and the Foundation for the Performing Arts will jointly manage the performing arts center on the Cal Poly campus.

O M ADM

5.5. The City shall undertake a study of its surplus facilities for possible reuse by cultural and non-profit groups. O M ADM

5.6. The City shall consider incentives to support establishment of social service facilities in the city. O M ADM
6 Resource Protection

6.2.1. The City shall prepare and maintain geographic information systems-based maps of the city, the urban reserve, and the planning area to guide in land use designations and decisionmaking.

O M CD/IT

6.2.2 The City shall seek to protect resource areas deemed worthy of permanent protection by fee acquisition,
easement, or other means.

O M CD/ADM

6.5.1. Subdivision approval in hillside planning areas shall include designation of "sensitive sites," which shall be subject to architectural review.

O L CD

6.5.2. The City shall create and maintain a GIS layer to accurately document development limit lines as they are applied in the General Plan.

O L CD/IT

Program Complete Lead
Number Program Summary Or Ongoing Low Med High Dept.

Status of General Plan Implementation Programs
STATUS AS OF October 2022
Difficulty to Complete

6.5.3. Consistent with the Community Design guidelines, all hillside areas are considered sensitive sites, and architectural review is required for new development. The Community
Development Director will screen all proposals to identify any which do not need architectural review.

O L CD

6.7.1. The City shall ensure new development complies with the City’s flood plain ordinance, setbacks, specific plans, and design standards to minimize flood damage and flood plain encroachment.

O L CD/PW

6.7.2 The City shall administer the National Flood Insurance Program standards. O L CD/PW

6.7.3 The City shall notify owners of creeks and adjacent properties in advance of work, and use care in any needed removal of vegetation.

O L PW

6.7.4 The City shall evaluate the feasibility of establishing a financing district or districts to address flood concerns in affected areas.

O H PW
7 Airport Area

7.13. The City shall continue to work with the County and regional airlines to assure that regional airline services are continued and expanded to adequately serve the needs of the
population in the service area of the airport.

O M CD

7.14. The City will annex the Airport area denoted in the Airport Area Specific Plan and accommodate incremental
development consistent with the growth management
policies, including those concerning adequacy of resources and services and development paying its own way.

O H CD

7.15. In approving development proposals, the City will assure that Airport Area properties noted in the Airport Area Specific Plan secure protection for any on-site resources identified in the Conservation and Open Space Element. To help
maintain the greenbelt, properties shall also secure open space protection for any contiguous, commonly owned land outside the urban reserve. If it is not feasible to obtain protection for such land, fees in lieu of dedication shall be paid when the property is developed.

O L ADM

7.16. The City shall create an Airport Overlay Zone to reflect the boundaries of the San Luis Obispo County Regional Airport Land Use Plan within the City limits. The purpose of the Airport Overlay Zone is to codify airport compatibility criteria in areas for which the City may override the Airport Land Use Commission determination to ensure compliance with
the requirements of the California State Aeronautics Act (Cal. Pub. Utilities Code, Section 21670, et. seq.)
C H CD

7.17. The City shall update its Zoning Regulations to address allowable uses and development standards for areas the
City may override a determination of inconsistency. Zoning regulations shall be consistent with the requirements of the State Aeronautics Act, use guidance from the Caltrans
Airport Land Use Planning Handbook and comply with
related state and federal requirements relating to airport land use compatibility.

C H CD

7.18. The City shall review of General and Specific Plans and Amendments, Zoning ordinance or amendments, or Building code changes within the San Luis Obispo County Regional Airport Land Use Plan boundary. As well as including
referral to the Airport Land Use Commission as specified in Section 21676(b) of the Public Utilities Code for a
determination of consistency with the San Luis Obispo
County Airport Land Use Plan.

O M CD
8 Special Focus Areas

Program Complete Lead
Number Program Summary Or Ongoing Low Med High Dept.

Status of General Plan Implementation Programs
STATUS AS OF October 2022
Difficulty to Complete

8.3. The City will review and update Ordinance 1130 and involve residents to ensure that neighborhood concerns are
addressed.

C CD

8.4. The City will update the Mid-Higuera Area Plan for this multiblock commercial area to reflect current needs and changes that have occurred since the 2001 plan was adopted. O L CD

8.5. The Caltrans site is planned for redevelopment from a Caltrans office and yard complex to a mixed use
development. Commercial uses will be described under the Tourist Commercial designation, and redevelopment plans shall consider the suitability of realignment of the
Madonna/South Higuera intersection. The site should be
developed to serve as a gateway into the community, with consideration of additional open space uses, retention and rehabilitation of the Master List historic structure, and retention of Heritage Trees on the site. The site shall also include a park site north of Madonna Road.

O M CD/ADM

8.6. Lands behind the General Hospital building that are inside the City’s Urban Reserve line will be designated as Public (for existing public facility) and a range of residential uses (Low Density and Medium Density Residential) and will
include the ability to support residential care, transitional care use, and other residential uses consistent with the adjacent areas. The remaining site outside the City’s Urban Reserve line will remain as Open Space. The City shall seek to secure permanent protection of the open space outside of the urban reserve line as part of any development proposal.

C CD/ADM

8.7. The City shall implement the South Broad Street Area Plan to create a safe, attractive and economically vital
neighborhood with a mix of complementary land uses.

O L CD

8.8. The Madonna Inn Area includes land west of Highway 101 on the lower slopes of San Luis Mountain and the northeast slopes of the foothill bordering Laguna Lake Park. This area may be developed further only if surrounding hillsides
including area outside the Urban Reserve Line are
permanently protected as open space.

O H CD/ADM

8.9. The 38-acre area of the Sunset Drive-in Theater / Prado Road Area should be further developed only if flooding can be mitigated without significant harm to San Luis Obispo Creek. Once flooding, access, and agricultural preservation issues are resolved, the area would be suitable for
development as a mixed use development with a mix of
Commercial uses. Permanent open space shall be required.

A full assessment of the Drive-in Theater site’s potential as a historic resource will need to be evaluated and addressed.

Bicycle connectivity for this area is an important component for future development.

OH CD/PW/A
DM

8.10. The Pacific Beach area is planned for redevelopment from current use as a continuation school, school office and park uses to commercial retail uses along Los Osos Valley Road and Froom Ranch Road and the remaining site maintained
under a Park designation.

OM

8.11. Development of Calle Joaquin Auto Sales Area is suitable for commercial mixed use and other uses in the Tourist
Commercial designation. Development of the area must
address preservation of and transition to the agricultural parcels/uses to the northwest; connectivity to the Dalidio Ranch area; view shed preservation; and treatment as a
gateway to the City visible from Highway 101.

O L CD

Program Complete Lead
Number Program Summary Or Ongoing Low Med High Dept.

Status of General Plan Implementation Programs
STATUS AS OF October 2022
Difficulty to Complete

8.12. Flooding and access issues must be resolved for the LOVR Creekside Area prior to developing Medium High Density
Residential. Agricultural Designations must be maintained along the west side of site. Compatibility with adjacent residential areas to the east will be required. Permanent protection of the adjacent San Luis Obispo Creek will need to be addressed. The south side of the site will need to accommodate relocation of LOVR right-of-way and changes related to the planned Highway 101 interchange.

O H CD/PW

8.13. The Broad Street at Tank Farm Road Site will be used as a mixed use site and provide a strong commercial presence at the intersection. Areas along the creek on the western edge of the site will be appropriately buffered to provide creek protections. Attention to connectivity, safety and comfort of bicycle and pedestrian circulation will be especially important in the development of this corner.

C CD/PW

8.14. In regards to the Cal Fire / Cal Poly-owned property on Highway 1, the City shall collaborate with Cal Poly in
updating the Master Plan for development of campus
property. The master Plan shall address sensitive visual and habitat resources, circulation issues, impacts to City services, transition and potential impacts to surrounding neighborhoods.

O H CD

8.15. Future development of the North Side of Foothill (Bishop Knoll) shall address open space requirements under
Policy 1.13.8 and open space buffers in accordance with Conservation and Open Space Element Policy 8.3.2. The
steep hillside should be dedicated as Open Space and
residential lots grouped at the bottom of the hill closer to Foothill. Development shall provide a parking lot and trail access to Bishops Peak. Circulation connectivity shall be provided to Los Cerros Drive as feasible. Density shall be limited to 7 units / acre.

OL CD/PW/A
DM

8.16. Future development of the Alrita Properties shall address hillside planning requirements under Policy 6.4.7C.

Additional analysis will need to occur in the LUCE EIR to evaluate potential water service issues, and additional analysis is needed to determine if the City’s water
distribution system can adequately serve development in this area. Density shall be limited to 7 units/acre as modified for slope under the Zoning Ordinance.

O M CD/UT

CIRCULATION ELEMENT
2 Traffic Reduction

2.2.1. In coordination with county agencies, the City shall support efforts in establishing county-wide trip reduction programs. O M PW

2.2.2. The City shall maintain and where cost effective to improve a trip reduction plan for City employees. O L PW/HR

2.2.3. The City shall work with employers to establish a voluntary commuter benefit options program that provides commute
options for employees.

O L PW/HR

2.2.4. The City shall continue to work with Cal Poly, Cuesta College, and other educational institutions to provide
incentives to all students, faculty and staff to use alternative forms of transportation.

O M PW
3 Transit Service

3.2.1. The City shall continue to implement the Short Range Transit Plan (5-year time frame) and coordinate with
SLOCOG on implementing the Long Range Transit Plan (20- year time frame).

O H PW

3.2.2. The City shall make available bulk rate transit passes to all groups.

C PW

Program Complete Lead
Number Program Summary Or Ongoing Low Med High Dept.

Status of General Plan Implementation Programs
STATUS AS OF October 2022
Difficulty to Complete

3.2.3. The City shall work with the San Luis Obispo Regional Transit Authority (RTA) to maintain and expand commuter bus service to and from the City of San Luis Obispo during peak demand periods.

O H PW

3.2.4. The City shall coordinate with the San Luis Obispo Regional Transit Authority (RTA) to evaluate the benefits and
drawbacks of consolidated service.

O M PW

3.2.5. The City shall develop and maintain a comprehensive marketing and promotion program to reach individual target audiences.

O M PW

3.2.6. The City shall update its Short Range Transit Plan to evaluate adding mass transit stops at the high school and the middle school.

C PW

3.2.7. When evaluating transportation impacts, the City shall use a Multimodal Level of Service analysis. O L PW

3.2.8. The City shall work with other agencies to develop a regional transit center downtown. O L PW
4 Bicycle Transportation

4.2.1. The City shall evaluate a bike share program in coordination with Cal Poly and other educational institutions. O M PW

4.2.2. The City shall maintain and regularly update its Bicycle Transportation Plan as needed to reflect changes in state law and/or future conditions consistent with the objectives, policies and standards of this Circulation Element. Future revisions to the Bicycle Transportation Plan shall consider Safe Routes to School
O H PW

4.2.3. The City shall work with Cal Poly and Cuesta College to deemphasize the use of automobiles and promote the use of alternative forms of transportation in their master plans. O M PW

4.2.4. The City shall revise its zoning regulations to establish and maintain standards for secured bicycle parking and ancillary facilities.

C CD/PW

4.2.5. The City should obtain railroad right-of-way and easements to establish a separated bike path and pedestrian trail through San Luis Obispo.

O H PW

4.2.6. The City shall maintain its GOLD level award designation as a Bicycle Friendly Community and pursue a gold level
designation.

O M PW

4.2.7. The City shall collaborate with SLO County to coordinate planning and development of county bikeways to support a regional bicycle network.

O M PW

4.2.8. The City should consider expanding and maintaining its bicycle licensing program to address bicycle loss, theft, and safety problems.

O M PW
5 Walking

5.2.1. The City shall adopt and regularly update a Downtown Pedestrian Plan to encourage walking and to expand
facilities that provide pedestrian linkages throughout the Downtown. The plan shall include pedestrian safety
assessments in accordance with State and Federal
guidelines.

O H PW

5.2.2. Areas outside of the Downtown, the City shall implement its program for installation of a continuous and connected
pedestrian network giving areas with the heaviest existing or potential pedestrian traffic priority in funding.

O H PW

5.2.3. The City shall continue to implement its annual program of enhancing existing curbs with ADA compliant ramps. O M PW

5.2.4. The City shall continue to coordinate with SLOCOG and local schools to pursue Safe Routes to School programs and grant opportunities.

O L PW

5.2.5. The City shall consider the benefits and costs of consolidating the Bicycle Transportation Plan with a citywide Pedestrian Plan.

O M PW

Program Complete Lead
Number Program Summary Or Ongoing Low Med High Dept.

Status of General Plan Implementation Programs
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Difficulty to Complete
6 Multi-Modal Circulation

6.2.1. As funding permits the City shall biennially complete a traffic count program for pedestrians, bikes, vehicles and transit to maintain and update its database of transportation
conditions and to evaluate the state of the transportation system.

O M PW
7 Traffic Management

7.2.1. Those traffic programs identified in the Circulation Element that have the greatest potential to reduce traffic increases shall have priority for implementation.

O H PW

7.2.3. On a bi-annual basis, as funding permits the City shall implement an ongoing and comprehensive transportation
monitoring program.

O H PW

7.2.4. The City shall regularly, as funding permits, conduct a travel behavior survey of residents to estimate their use of different types of transportation.

O M PW

7.2.5. The City shall work with the County to jointly develop and adopt design and construction standards for streets within the City's Urban Reserve.

O M PW

7.2.6. The City shall revise its Subdivision Regulations to include right-of-way and design standards. O H CD/PW

7.2.7. The City shall adopt an access management policy to control location, spacing, design and operation of driveways, median openings, crosswalks, interchanges and street
connections to a particular roadway including navigation routes to direct traffic to preserve the safety and efficiency of the transportation system.

O L PW/CD

7.2.8. The City shall cooperate with State and regional agencies in evaluating the effectiveness of high occupancy vehicle
(HOV) lanes on State highways.

O L PW

7.2.9. The City shall develop and adopt guidelines that implement Policy 7.1.4 concurrent with the 2015-17 Financial Plan. C PW 9 Street Network Changes

9.2.1. The City will establish building setback lines for routes listed on Table 5. O L PW

9.2.2. The City shall ensure that changes to Prado Road (Projects 1, 2, and 19 on Table 5) are implemented in a sequence
that satisfies circulation demands caused by area
development. Sponsors of development projects that
contribute to the need for the Prado Road interchange or overpass will be required to prepare or fund the preparation of a Project Study Report.

O H PW

9.2.3. The City shall adopt and regularly update a plan and standards for the installation and maintenance of
landscaped medians, parkways, signs, utilities, street
furniture, sidewalks and bicycle lanes. Within the Downtown, street amenities shall be consistent with the Downtown
Pedestrian Plan design guidelines.

O H PW

9.2.4. The City will evaluate complete street designs to maximize the shared right of way for all users as a method of
achieving an overall objective for the Conceptual Physical Plan of the City's Center to improve the pedestrian
environment in the downtown.

O H CD/PW

9.2.5. As part of any proposal to further develop the DalidioMadonna Area, the alignment and design of extensions of Froom Ranch Way connecting with Prado Road (west of
Route 101) shall be evaluated and established if consistent with the Agricultural Master Plan for Calle Joaquin Reserve.

O H PW

9.2.6. The City shall promote the creation of “streetscapes” and linear scenic parkways or corridors that promote the city’s visual quality and character, enhance adjacent uses, and integrate roadways with surrounding districts.

O M PW

Program Complete Lead
Number Program Summary Or Ongoing Low Med High Dept.

Status of General Plan Implementation Programs
STATUS AS OF October 2022
Difficulty to Complete
10 Truck Transportation

10.2.1. Trucks should turn off motors when parked. The City shall work with the Air Pollution Control District (APCD) for guidance in establishing standards that address air and noise pollution from idling trucks.

O M PW

10.2.2. The City's Home Occupation Permit Regulations should be amended to ensure that commercial trucks are not used to make regular deliveries to home occupations in residential areas.

C CD/PW

10.2.3. The City shall continue to provide reserved commercial truck loading zones in appropriate downtown areas. O M PW

10.2.4. The City shall adopt an ordinance regulating the movement of heavy vehicles. L PW
11 Air Transportation

11.2.1. The City shall work with the County Airport to encourage the use of quieter and more environmentally sensitive aircraft. O H ADM

11.2.2. The City shall work with the County Airport to support the further development of airport facilities and attract additional passenger airline services.

O M ADM

11.2.3. The City shall work with the County Airport to pursue funding opportunities, such as Airport Improvement Program grants. M ADM

11.2.4. The City shall work with the County Airport Land Use Commission to complete updates of the Airport Land Use
Plan for the San Luis Obispo County Airport in regard to significant changes in noise, adjacent land impacts, and safety zones.

C CD
12 Rail Transportation

12.2.1. The City supports maintaining and increasing daily train service connecting San Luis Obispo with points north and south, with departures and arrivals in the morning, midafternoon and evening.

O L PW/ADM

12.2.2. The City shall support San Luis Obispo Council of Governments in evaluating the feasibility of passenger rail service to connect points within the county.

O L PW

12.2.3. The City shall coordinate railroad facility infrastructure maintenance with the Union Pacific Railroad and the Public Utilities Commission. In addition, the City shall work with the Air Pollution Control District and others to discourage idling train engines in San Luis Obispo.

O M CD

12.2.4. The City shall monitor and respond to changes, or proposed changes in passenger and freight rail traffic that may impact the safety and well-being of residents of the community including the transport of combustible materials.

O M PW

12.2.5. The City shall discourage the transportation of oil and other combustible hydrocarbons through the City. O L ADM
13 Parking Management

13.2.1. The City shall maintain and regularly update its Access and Parking Management Plan (every 5 years) including parking demand reduction strategies and consider emerging best
practices.

O M PW

13.2.2. The City shall regularly monitor the use of public parking in the downtown. O M PW

13.2.3. The City shall coordinate with SLOCOG during periodic updates to SLOCOG’s Park and Ride Lot Development
report to evaluate the need for and location of park-and-ride lots to serve commuters.

O L PW

13.2.4. The City shall only approve construction of additional public parking structures after considering the findings and results of a parking supply and demand study.

O H PW

Program Complete Lead
Number Program Summary Or Ongoing Low Med High Dept.

Status of General Plan Implementation Programs
STATUS AS OF October 2022
Difficulty to Complete

13.2.5. The City shall continue to work with the Downtown Association to evaluate the use of curb space in the
downtown and identify opportunities for creating additional parking spaces.

O M PW

13.2.6. The City shall continue to operate the downtown trolley as a parking management tool to reduce congestion. O H PW
14 Neighborhood Parking Management

14.2.1 Upon request from residents or other agencies, the City will evaluate the need for neighborhood parking permit
programs or other parking management strategies in
particular residential areas.

O L PW

14.2.2. The City will investigate the feasibility and desirability of establishing parking financing districts. O H PW
15 Scenic Roadways

15.2.1. The City will participate with Caltrans, the County and other cities to establish a program for enhancing the visual
character of the Highway 101 corridor consistent with the US 101 Aesthetic Study for San Luis Obispo County.

O M PW

15.2.2. The City shall revise its Community Design Guidelines to incorporate concern for the protection of views and vistas from scenic roadways.

O H CD

15.2.3. The City shall adopt a street corridor landscaping plan for scenic roadways. Indigenous species will be used unless shown to be inappropriate.

O M PW

15.2.4. Both the City and the County should enforce an amortization program for the removal of billboards along scenic
roadways.

O M CD
16 Circulation Element Implementation, Program Funding
and Management

16.2.1 Transportation Work Program shall be regularly updated as part of the City Financial Plan, and must be consistent with the Circulation Element. Will cover a five-year period, shall be updated to include modified projects and costs if
warranted.

O M PW

16.2.2 The City shall update its multimodal transportation impact fee ordinance in accordance with State Law (AB1600). C CD

16.2.3 Prior to implementation of a project identified in this element, the City shall reevaluate its need and include an analysis of alternatives that can achieve the desired results at lower costs and with less environmental impacts.

O M PW

16.2.4. Major development proposals to the City will include displays of the proposal's interfaces with nearby neighborhoods, and indicate expected significant qualitative transportation effects on the entire community.

O L PW/CD

HOUSING ELEMENT
1 Safety

1.5 Continue to improve unsafe, unsanitary, or illegal
housing conditions, barriers to accessibility, energy
efficiency, or unsafe neighborhoods annually, by: 1)
using Federal, State, and local housing funds, such as
Community Development Block Grant Funds, and 2)
proactively promoting neighborhood wellness through
Code Enforcement’s Neighborhood Service Program.

O M CD

Program Complete Lead
Number Program Summary Or Ongoing Low Med High Dept.

Status of General Plan Implementation Programs
STATUS AS OF October 2022
Difficulty to Complete

1.6. Continue code enforcement to expedite the removal of illegal or unsafe dwellings, to eliminate hazardous site or property conditions, and resolve chronic building
safety problems. Code Enforcement staff shall
continue to provide property owners and tenants with
information on how to rectify violations, who to contact in Code Enforcement for assistance, and other
resources that may be pertinent to the citation.

O M CD

1.7. Continue to support local & regional solutions to
homelessness by funding programs such as Maxine Lewis
and Prado Center.

O H CD/ADM
2 Affordability

2.5. Continue to manage the Affordable Housing Fund so
that the fund serves as a sustainable resource for
supporting, at a minimum, 4 new affordable housing
developments during the planning period. The fund
shall serve as a source of both grant funding and
below-market financing for affordable housing projects; and funds shall be used to support a wide variety of
housing types at the following income levels: extremely low, very low, low, and moderate, but with a focus on
production efficiency to maximize housing benefits for
the City’s financial investment, and to support highquality housing projects that would not be feasible without Affordable Housing Fund support
O M CD

2.6. Review existing and proposed building, planning,
engineering and fire policies and standards every year
to determine whether changes are possible that could
assist the production of affordable housing, or that
would encourage preservation of housing rather than
conversion to non-residential uses, provided such
changes would not conflict with other General Plan
policies. Such periodic reviews will remove regulations within 2-6 months that have been superseded, are
redundant, or no longer needed.

O M CD

2.7. Continue to prioritize procedures that speed up the processing of applications, construction permits, and
water and sewer service priorities for affordable
housing projects. City staff and commissions shall give such projects priority in allocating work assignments,
scheduling, conferences and hearings.

OH CD / PW
/ UT

2.8. Coordinate an annual public and private
sector meeting to discuss and encourage the
development of housing that meets the
City’s housing needs.

O M CD

2.9. Assist with the issuance of tax-exempt bonds, tax
credit financing, loan underwriting or other financial
tools to help develop or preserve at least 20 affordable units annually through various programs.

C H CD

2.10 Update the Affordable Housing Standards to include Homeowners’ Association (HOA) fees and a standard
allowance for utilities in the calculation for affordable rents and home sales prices within two years of
adopting the Housing Element.

O M CD

Program Complete Lead
Number Program Summary Or Ongoing Low Med High Dept.

Status of General Plan Implementation Programs
STATUS AS OF October 2022
Difficulty to Complete

2.11. In conjunction with the Housing Authority and other local housing agencies, continue to provide on-going
technical assistance and education to tenants, property owners and the community at large on the need to
preserve at-risk units as well as the available tools to help them do so.

O M CD

2.12. In conjunction with housing providers and the
residential design community, continue to provide
planning services as requested by the public, builders, design professionals and developers regarding
strategies to achieve affordable housing and density
bonuses.

O H CD

2.13. Update the Inclusionary Housing Ordinance, including Table 2A, based on findings and recommendations in
the 2020 Affordable Housing Nexus Study and conduct
further feasibility analysis in order to evaluate the City’s ability to provide affordable housing in the proportions shown in the Regional Housing Needs Allocation, per
Policy 2.4.

C M CD

2.14. Continue to support density bonuses for residential projects above the state density bonus allowance of
35% to promote the development of units for extremely
low, very low, and low-income households.

O M CD

2.15. Evaluate a flexible density pilot program and initiate an update of the Zoning Regulations and Community
Design Guidelines to incorporate flexible density
development options in Downtown Core and portions
of Upper Monterey and Mid Higuera Special Focus
Areas to support the production of 50 smaller
residential units (150 to 600 square feet) per year
during the planning period.

O M CD

2.16. Create and make available to interested parties an informational packet that explains SB 35 streamlining
provisions and eligibility within two years of Housing
Element adoption.

O L CD

2.17. In order to provide adequate sites for lower income households on non-vacant and vacant sites previously
identified in the Housing Element (Table E-2), the City will, within one (1) year of the adoption of the Housing Element Update, allow developments (including mixeduse projects) that include at least 20 percent of the residential units as affordable to lower income
households, by right (no discretionary review).

O M CD

2.18 Utilize objective design standards to allow residential uses by right (no discretionary review) for those
developments (including mixed-use projects) that
include at least 20 percent of the residential units as affordable to low-income households.

O M CD
3 Housing Conservation

3.6. Continue to encourage the creation of dwellings in the Downtown Core (C-D Zone) and the Downtown
Planning Area by continuing the “no net housing loss”
program, consistent with Chapter 17.142 (Downtown
Housing Conversion Regulations) of the Zoning
Regulations.

O L CD

Program Complete Lead
Number Program Summary Or Ongoing Low Med High Dept.

Status of General Plan Implementation Programs
STATUS AS OF October 2022
Difficulty to Complete

3.7. Continue to identify residential properties and districts eligible for local, State or Federal historic listing in accordance with guidelines and standards help
property owners repair, rehabilitate and improve
properties in a historically architecturally sensitive
manner.

O L CD

3.8. Continue to monitor and track affordable housing units at-risk of being converted to market rate housing
annually and verify that tenants are properly noticed
and aware of their rights. Provide resources to support the Housing Authority, and local housing agencies,
purchase and manage at-risk units.

O M CD

3.9. Work annually with non-profit organizations, faithbased organizations, or the Housing Authority of the City of San Luis Obispo to encourage rehabilitation of
residential, commercial, or industrial buildings to
expand extremely low, very low, low or moderate
income rental housing opportunities.

O M CD

3.10. In order to mitigate the loss of affordable housing units, replacement housing units shall be provided for sites
identified in the site inventory when any new
development (residential, mixed-use or non-residential) occurs on a site that has been occupied by or
restricted for the use of lower-income households at
any time during the previous five years. This
requirement applies to: non vacant sites and vacant
sites with previous residential uses that have been
vacated or demolished (see Government Code, section
65583.2, subdivision (g)(3), and Government Code,
section 65915, subdivision (c)(3)).

O M CD
4 Mixed-Income Housing

4.5. Review new development proposals for compliance with City regulations and revise projects or establish conditions of approval to implement the mixed-income policies.

O L CD

4.6. Amend the Inclusionary Housing Ordinance to require that affordable units in a development be of similar
size, number of bedrooms, character and basic quality
as the non-restricted units in locations that avoid
segregation of such units, including equivalent ways to satisfy the requirement. Also evaluate adjusting the
City’s allowable sales prices for deed-restricted
affordable units per a variety of unit types.

C CD

Program Complete Lead
Number Program Summary Or Ongoing Low Med High Dept.

Status of General Plan Implementation Programs
STATUS AS OF October 2022
Difficulty to Complete

4.7. The City shall support Affirmatively Further Fair
Housing (AFFH) by: •Facilitating public education and
outreach by providing informational flyers on fair
housing and reasonable accommodation at public
counters and on the City’s website. Information will be included with utility billing at least once per year.
•Training staff, elected officials, and appointees on
issues of disparity, structural racism, and inequality
through the City’s Diversity, Equity and Inclusion (DEI) Program. •Implementing language standards and
procedures for providing equal access to City services
and programs to all residents, including persons with
limited proficiency in English. •Deed-restricting units to provide affordability and reduce displacement.
•Supporting new technologies and/or products such as
modular housing construction to reduce costs and
increase access to housing. •Distributing information
regarding tenant rights and Fair Housing resources as
part of Code Enforcement’s response to housing code
enforcement issues.

O M CD

4.8. Continue to distribute information regarding Fair
Housing by providing up to date information online and
brochures at the front desk, providing educational
materials to tenants, property owners and property
managers, and making public service announcements
(including but not limited to the City’s News page,
social media sites, and newspaper ads) every year.

O H CD
5 Housing Variety and Tenure

5.4. Evaluate and implement “missing middle” housing
types (e.g. duplex, triplex, quadplex, cottages, etc.) to increase housing options in the City within three years of adopting the Housing Element.

O M CD

5.5. Update the Zoning Regulations to allow mixed-use
development within Service Commercial (C-S) and
Manufacturing (M) zones without a use permit within
one year of the adoption of the Housing Element.

C CD
6 Housing Production

6.10. Maintain the General Plan and Residential Growth
Management Regulations (SLOMC 17.88) exemption for
new housing in the Downtown Core that is enforce ably
restricted for extremely-low, very low, low- and moderate income households.

O L CD

6.11. Continue to allow flexible parking regulations for housing development, especially in the Downtown Core and possibly use city parking facilities by Downtown residents, where appropriate guarantees limit occupancies to persons without motor vehicles or who provide proof of reserved, off-site parking.

O M CD/PW

6.12. Continue to evaluate, every two to three years within the planning period, to develop and implement incentives to encourage additional housing in the Downtown, Upper
Monterey, and Mid-Higuera Special Focus Areas, particularly in mixed-use developments.

O M CD

Program Complete Lead
Number Program Summary Or Ongoing Low Med High Dept.

Status of General Plan Implementation Programs
STATUS AS OF October 2022
Difficulty to Complete

6.13 Consider General Plan amendments, as projects are
proposed, to rezone commercial, manufacturing, or
public facility zoned areas for higher-density, infill or mixed-use housing, where compatible with surrounding
development. Group requested rezones so that as
many as possible can be considered consistent with
Government Code §65358, that allows a general plan
to be amended four times during any calendar year.

O H CD

6.14. Continue to provide City resources, including $40,000 annually for operational support, to support the SLO
County Housing Trust Fund’s efforts to provide belowmarket financing and technical assistance to affordable housing developers to construct or preserve five
affordable housing units per year in the City of San
Luis Obispo.

O M CD

6.15. Meet every other year during the planning period with other public and private agencies to identify excess,
surplus, and underutilized parcels for residential
development.

O M CD

6.16. Incentivize 20 affordable housing developments per year during the planning period consistent with SLOMC
Affordable Housing Incentives.

C M CD

6.17. Financially assist in the development of 20 housing units per year that are affordable to extremely low, verylow, low- and moderate income households during the planning period using State, Federal, and local funding sources, with funding priority given to projects that
result in the maximum housing benefits for the lowest
household income levels.

C M CD

6.18. Actively seek and collaborate with non profit housing providers to (jointly) apply for three revenue sources
each year during the planning period, including State,
Federal and private/non-profit sources, and financing
mechanisms to financially assist with the development
of housing affordable to extremely low, very low and
low or moderate income households.

O M CD

6.19. Review the Affordable Housing Incentives (Chapter

17.140, SLOMC) and Zoning Regulations every two
years during the planning period and update to ensure
density bonus incentives are consistent with State
Law.

O H CD

6.20. Evaluate and update the Subdivision Regulations,
within three years of Housing Element adoption, to
support small lot subdivisions, ownership bungalow
court development and other alternatives to
conventional subdivision design
O M CD

6.21 Continue to submit the Housing Element Annual
Progress Report (APR) to the State Department of
Housing and Community Development and the
Governor’s Office of Planning and Research on or
before April 1 st of each year for the prior calendar
year, pursuant to Government Code Section 65400.

O M CD

6.22. Update the City’s municipal code to expand objective design standards within one year of the adoption of the Housing Element Update.

C H CD

Program Complete Lead
Number Program Summary Or Ongoing Low Med High Dept.

Status of General Plan Implementation Programs
STATUS AS OF October 2022
Difficulty to Complete

6.23. Update the development review process and expand
the thresholds of each review level (minor, moderate,
and major) to eliminate or reduce the number of public
hearing required for housing projects within one year of adopting the Housing Element.

C M CD
7 Neighborhood Quality

7.10. Continue to utilize a diverse range of outreach
methods, including email notifications, the City’s
website and social media accounts, and neighborhood
outreach meetings to ensure residents are aware of
and able to participate in planning decisions affecting their neighborhoods early in the planning process.

O M CD/ADM

7.11. Continue to work directly with neighborhood groups and individuals to address concerns pertaining to
neighborhood needs, problems, trends, and
opportunities for physical improvements.

O M CD/PD

7.12. Continue to fund neighborhood improvements, including sidewalks, traffic calming devices, crosswalks, parkways, street trees and street lighting to improve aesthetics, safety and accessibility.

OH CD / P&R
/ PW

7.13. Continue the City’s Neighborhood Services and Code Enforcement programs to support neighborhood
wellness.

O M CD/PD

7.14. Evaluate and update the Community Design
Guidelines to provide site design standards for
developments with 11 or more residential units to
include outdoor amenities such as the following:
outdoor visiting and gathering spaces, places to
exercise or recreate, and spaces reserved for edible
landscape or community gardens.

O M CD/PD
8 Special Housing Needs

8.11. Continue to provide resources that support local and regional solutions to meet the needs of the homeless
and continue to support, jointly with other agencies,
shelters and programs, such as Housing First and
Rapid Rehousing, for the homeless and displaced
individuals and families.

O M CD

8.12. Continue the mobile home rent stabilization program to minimize increases in the cost of mobile home park rents. O L CD

8.13. Support opportunities within the City suitable for tenantowned mobile-home parks, cooperative or limited equity housing, manufactured housing, self-help
housing, or other types of housing that meets special
needs.

O M CD

8.14 Advocate developing more housing and refurbishing
campus housing at Cal Poly University. O M CD

8.15. Work with Cal Poly University Administration to secure designation of on-campus fraternity/sorority living groups. O L CD/ADM

8.16 Continue to support “good neighbor programs” with Cal Poly State University, Cuesta College, the City and
local residents. The programs should continue to
improve communication and cooperation between all
groups about student housing in residential
neighborhoods.

O M CD/PD

8.17. Provide public educational information at the Community Development Department public counter on universal design concepts for new and existing residential dwellings.

O L CD

Program Complete Lead
Number Program Summary Or Ongoing Low Med High Dept.

Status of General Plan Implementation Programs
STATUS AS OF October 2022
Difficulty to Complete

8.18. Review and amend the Zoning Regulations within one year of Housing Element adoption to ensure
compliance with: 1) the Supportive Housing
Streamlining Act (AB 2162) to allow supportive housing
a use-by right in zones where multi-family and mixed
uses are permitted, including nonresidential zones
permitting multifamily uses, if the proposed
development meets specified criteria; and 2) AB 101,
to allow Low Barrier Navigation Centers by-right in all residential zones, areas zoned for mixed uses, and
nonresidential zones permitting multifamily uses.

C CD

8.19. Continue to look for partnership opportunities with nonprofit housing developers and service providers to acquire four vacant, blighted, or underutilized
properties (land, retail or commercial space, motels,
apartments, housing units, mobile home parks) during
the planning period for conversion into affordable
permanent and supportive housing for homeless
persons and families.

O L CD

8.20. Actively seek and collaborate with non profit housing providers to (jointly) apply for two revenue sources
each year during the planning period for State,
Federal, and local funding sources to financially assist with the development of housing for persons with
developmental disabilities.

O M CD

8.21. Continue to coordinate monthly with the County
Department of Social Services, Homeless
Services Oversight Council (HSOC), social
service providers, and non-profit organizations
to identify, evaluate, and implement strategies to
reduce the impacts of homelessness on the City.

O L CD

8.22. Work with other jurisdictions to advocate for State legislation that would: 1) provide funding to help Cal
Poly University provide adequate on campus student
housing, and 2) allow greater flexibility for State
universities and community colleges to enter into
public-private partnerships to construct student
housing.

O L CD/PD

8.23. Update Zoning Regulations, within one year of Housing Element adoption, to be consistent with the Employee
Housing Act; including: 1) Update Table 2-1 to allow
employee and farmworker housing by right within the
Open Space and Conservation (C/OS) and Agriculture
(AG) zones consisting of no more than 36 beds in a
group quarters, or 12 units or separate rooms or
spaces designed for use by a single-family or
household, and 2) remove Chapter 17.148 - HighOccupancy Residential Use Regulations.

C CD
9 Sustainable Housing, Site, and Neighborhood Design

9.6. Continue to educate planning and building staff and citizen review bodies on energy conservation issues, including the City’s energy conservation policies and Climate Action Plan.

Staff shall work with applicants to achieve the City’s energy conservation goals.

O M CD/ADM

9.7. Continue to provide assurance of long-term solar access for new or remodeling housing and for adjacent properties,
consistent with historic preservation guidelines.

O L CD

Program Complete Lead
Number Program Summary Or Ongoing Low Med High Dept.

Status of General Plan Implementation Programs
STATUS AS OF October 2022
Difficulty to Complete

9.8. Implement Climate Action Plan programs to increase production of “green” housing units and projects and require sustainable and/or renewable materials, water and energy technologies.

O M ADM/CD

9.9. Continue to promote building materials reuse and recycling in site development and residential construction, including flexible standards for use of salvaged, recycled, and “green” building materials. Continue the City’s construction and demolition debris recycling program (Chapter 8.05 -
Municipal Code)

O L CD/UT

9.13. Continue to support programs for sustainable home improvements such as solar panels, heating and cooling
systems, water conservation and energy efficient windows. O M CD

NOISE ELEMENT

1.12. Review public and private development proposals for Noise Element conformance. O L CD

1.13. Require noise studies early in the review process when project noise may exceed allowable limits. O L CD

1.14. Assure that noise mitigation measures are carried-out during construction. O L CD

1.15. Monitor compliance with mitigation measures after project completion. O L CD

1.16. The city will work with the California Highway Patrol and the County Sherriff`s Office to enforce loud vehicle exhaust systems and sound amplification systems.

C L PD

1.17. The city will purchase and pursue alternatives to the use of noisy equipment for city operations. O L ADM

1.18. The City will periodically review and update the Noise Element. O H CD

1.19. The City will make the Noise Guidebook available to anyone involved in project design and review. C M CD

CONSERVATION AND OPENS SPACE ELEMENT
2 Air

2.3.1. Employ best available practices in City operations. O M ADM

2.3.2. Consult with APCD on significant development proposals. O L CD

2.3.3. Promote alternative transportation/land use strategies. O L CD

2.3.4. Provide alternative transportation incentives. O M PW

2.3.5. Amend the General Plan as needed to achieve air quality goals. O M CD
3 Cultural Heritage

3.6.1. Promote public awareness of cultural resources through activities, including tours & clean-up events. O M ADM

3.6.2. Provide financial assistance and incentives for historic preservation. O H CD/ADM

3.6.3. Expand ARC guidelines to address specific guidance for new buildings in historic districts. C CD

3.6.4. Prepare post-disaster historic preservation standards. O M CD

3.6.5. Assist the CHC in preparing archaeological resource guidelines. C CD

3.6.6. Provide cultural resource awareness public educational programs, which display artifacts which illuminate past cultures.

C ADM

3.6.7. Encourage partnering for preservation. O L CD

3.6.8. Promote adaptive reuse of historic buildings. O L CD

3.6.9. Rehabilitate and maintain City-owned adobes and historic structures. OH ADM/PW/
CD

3.6.10. Implement Cultural Heritage Committee Whitepaper. C L CD 4 Energy

4.6.1 Promote efficient City energy use. O M ADM

4.6.2 Manage City operations for energy self-reliance. O H ADM

4.6.3. Promote Sustainable design in City facilities. O M ADM

Program Complete Lead
Number Program Summary Or Ongoing Low Med High Dept.

Status of General Plan Implementation Programs
STATUS AS OF October 2022
Difficulty to Complete

4.6.4. Reduce obstacles to energy conservation. O M CD

4.6.5. Encourage sustainable employee commuting practices. O L HR

4.6.6. Promote energy conservation education. O M ADM

4.6.7. Administer State Building Energy Standards. O L CD

4.6.8. Encourage energy-efficient design in private development projects. O L CD

4.6.9. Address solar access in new development. O M CD

4.6.10. Retrofit City facilities for energy savings. O H PW/UT

4.6.11. Seek financial assistance for energy efficiency improvements in City facilities. O L PW/UT

4.6.12. Monitor energy use in City facilities and prepare biannual report for City Council. O M ADM

4.6.13. Prepare energy conservation plan for City facilities. O M ADM

4.6.14. Adopt green building standards. C CD

4.6.15. Consider City-owned green energy utility. C H ADM

4.6.16. Promote technology and energy conservation businesses. O L ADM

4.6.17. Require solar power for new dwellings. C L CD

4.6.18. Seek Air Pollution Control District support for maintaining air quality. O L CD
5 Materials

5.5.1. Use materials efficiently in City operations (computer technology and copying) O M ADM

5.5.2. Promote City materials reuse and recycling. O M ADM/UT

5.5.3. Coordinate waste reduction and recycling efforts. O M ADM

5.5.4. Use materials with reduced environmental impacts in City operations and facilities. O M ADM

5.5.5. Maintain inventory of recycling businesses and services. O L UT

5.5.6. Expand City public information efforts on energy and materials conservation goals. O L ADM

5.5.7 Encourage energy efficiency and Green Building in new development. O L CD

5.5.8. Ensure new development projects include space for materials recycling/storage. O L CD
7 Natural Communities

7.7.1. Protect natural communities. O M ADM

7.7.2. Implement the Natural Communities policies from program. C ADM

7.7.3. Participate in any area-wide planning efforts such as Habitat Conservation Plans under the U.S. Endangered Species
Act.

O L ADM

7.7.4. Participate in environmental review conducted by other agencies for projects that could affect natural communities in the San Luis Obispo planning area.

O L CD/ADM

7.7.5. Develop and maintain current benchmark information on habitat types and conditions. O M ADM

7.7.6. Replace invasive non-native vegetation with native vegetation. O M ADM

7.7.7. Preserve ecotones through changes to or conditions on new development. O L ADM

7.7.8. Protect wildlife corridors through changes to or conditions on new development. O L ADM/FD

7.7.9. Adopt creek setback requirements. C CD

7.7.10. Implement natural communities’ policies through the Tree Committee. O L PW
8 Open Space

8.7.1. Protect open space resources. OH ADM &
P&R

8.7.2. Enhance and restore open space. OH ADM &
P&R
9 Views

9.3.1. Locate and design public facilities and utilities consistent with General Plan. O M PW

Program Complete Lead
Number Program Summary Or Ongoing Low Med High Dept.

Status of General Plan Implementation Programs
STATUS AS OF October 2022
Difficulty to Complete

9.3.2. Update community design guidelines to address views from scenic routes. O M CD

9.3.3. Maintain and apply Sign Regulations consistent with the General Plan. O M CD

9.3.4. Conduct environmental and architectural review consistent with General Plan. O M CD

9.3.5. Require visual assessments for projects affecting important scenic resources and views from public places. O L CD

9.3.6. Determine that view blockage along a scenic roadway is a significant impact. O L CD

9.3.7. Review development in unincorporated County for
consistency with General Plan. O L CD

9.3.8. Advocate State and County scenic highway designations and protective programs for scenic routes connecting San Luis Obispo with other communities.

O L CD

9.3.9. Place underground existing overhead utilities, with highest priority for scenic roadways, entries to the City, and historic districts.

O L PW

9.3.10. Prohibit billboards. C CD

9.3.11. Remove existing billboards through amortization, conditions of development approval and grants for enhancing open
space and transportation corridors.

O M ADM

9.3.12. Preserve the Morros, in cooperation with other government agencies, non-profit land trusts and property owners. O M ADM

9.3.13. Establish and maintain a program of describing and monitoring view sheds within and adjacent to City limits to establish a photographic baseline of visual setting.

O M ADM/IT
10 Water

10.3.1. Efficient water use O H UT

10.3.2. Maintain Water quality O H UT

SAFETY ELEMENT
8 Hazardous Trees

8.1. Identify and maintain or remove hazardous trees for City property and assist property owners. O M PW

8.2.5.B Review emergency response plans of utilities and transportation agencies. O L FD
9 Avoiding and Preparing for Emergencies in General

9.2. Maintain and annually update emergency response plan. O M FD

9.3 Evaluate fire-flow and identify deficiencies. C UT/FD

9.3.A. Meet response-time objective of four minutes. O H FD

9.3.B. Set response-time objective for Public Works. C PW

9.3.C Set response-time objective for Utilities. C UT

9.4.A. Train fire fighters, police, building inspectors, public works, & utilities staff. O M FD

9.4.B. Train building & planning staff in lessons from previous disaster areas. O L CD/FD

9.4.C. Conduct non-nuclear disaster-response exercises. O L FD

9.5. Obtain information about specific location & type of fire & toxic hazards. O L FD

9.6.A. Participate in periodic regional disaster-response drills. O L HR/FD

9.6.B.

The city will review the hazard assessment studies and
emergency response plans of utilities and transportation agencies.

L FD

9.6.C. Work w/CalTrans on hazardous materials approved routes and related safety precautions. O L FD

9.7. Establish emergency operation center in Fire Station 1 and backups sites. O M FD

9.8. Expand and keep current safety-related information. O L FD

9.9. Keep Multi-hazard Emergency Response Plans current. O L FD

9.10. Work with other jurisdictions on mutual-aid & automatic-aid agreements. O L FD

Program Complete Lead
Number Program Summary Or Ongoing Low Med High Dept.

Status of General Plan Implementation Programs
STATUS AS OF October 2022
Difficulty to Complete

9.11. Prepare for post-disaster recovery. O M FD

9.15.A. Develop program to familiarize residents with fire hazards and appropriate responses. O M FD

9.15.B. Promote efforts of the Fire Safe Council. O L FD

9.15.C. Continue CERT training program. O M FD

9.15.D. Support education programs for lower grades to teach fire hazards. O M FD

9.16. Help organizations that provide emergency outreach & education. O L FD

9.17. Encourage & participate in individual home inspection programs.

O M FD

9.19.A. Identify & evaluate facility hazards for City owned property. C PW

9.19.B Establish routine code inspections for commercial, industrial, public-assembly, & group housing. C CD

9.19.C. Establish complaint-based code compliance for all buildings. C CD

9.19.D Implement City-adopted program on Unreinforced masonry buildings. C CD

9.19.E. Provide outreach program for earthquake bracing of woodframe buildings. O L CD

9.20. Administer zoning, subdivision, & Architectural standards consistent with police & fire recommendations. O L CD

9.21. Fire, police, public works, & utilities review development applications for safety objectives. O L CD

9.22.A Maintain & administer building regulations in conformance with State requirements. O L CD

9.33.B. Maintain & administer fire regulations in conformance with State requirements. O L FD

9.23. Conduct fire & hazardous materials inspections in commercial, industrial, & multifamily buildings. O M FD

PARKS AND RECREATION ELEMENT
3 Parks and Recreation Facilities

3.14.2. Partner with schools and other joint users to renovate existing sports fields. O H P&R

3.14.5. As space becomes available, additional fields will be added in the vicinity of Damon-Garcia Sports Complex. O H P&R

3.16.2. Acquire property and construct a community center. O H P&R

3.16.3. Update & improve indoor facilities. O H P&R

3.17.1. Implement the revised Laguna Lake Park Master Plan. O H P&R

3.18.1.1. Implement the revised Sinsheimer Park Master Plan. O H P&R

3.18.1.2. Construct a therapy pool at the SLO Swim Center. C P&R

3.19.1. Continue the Playground Equipment Replacement Program. O L P&R

3.19.2. Pursue joint use of SLO High School swimming pool. O H P&R 4 Parks and Recreation Activities

4.2.2.1. Regularly evaluate demand and need and modify as appropriate. O L P&R

4.2.2.2. Conduct periodic public evaluations of services. O L P&R

4.2.2.3. Regularly publicize recreational opportunities. O L P&R

4.2.2.4. Consider needs of underserved groups. O M P&R

4.2.4. Avoid offering recreation activities classes or activities that unnecessarily duplicate commercial programs. O L P&R

4.2.8. Collaborate with groups providing high risk programs in open space areas.

O M P&R

4.3.2.1. Recruit at-risk youth to participate in activities. O L P&R

4.3.2.2. Collaborate with other agencies in serving at-risk youth. O L P&R

4.3.3.1. Evaluate services to determine benefits O L P&R

4.3.3.2. Accommodate schedules of working people. O L P&R

Program Complete Lead
Number Program Summary Or Ongoing Low Med High Dept.

Status of General Plan Implementation Programs
STATUS AS OF October 2022
Difficulty to Complete
Prioritize new activities from results of public input. 5 Financing

5.1.1. Develop collaborative fee exchange with S.L.C.U.S.D. O M P&R 6 Implementation

6.0.1. Continue to improve existing fields. O H P&R

6.0.2. Transition from multi-use to single use fields. O H P&R

6.0.3. Develop joint use agreements with other agencies in addition to schools. O M P&R

6.0.4. Develop new programs to not conflict with existing field use. O L P&R

6.0.5. Ensure athletic fields are provided within new residential development. O M P&R

6.0.6. Consider additional fields for needs not addressed with Damon Garcia fields. O H P&R

6.1.1. Upgrade Recreation Center to provide interim community center. O H P&R

6.1.2. Secure funding for a therapy pool to be located at the SLO Aquatics Center. C P&R

6.1.3. Consider revenue enhancement to fund new community center. O H P&R

6.2.1. Construct mini-parks at Purple Sage Drive and at Marsh & Santa Rosa. C P&R

6.2.2. Support neighbor efforts to develop mini-parks. O H P&R

6.3.1. Acquire open space property to construct trails. C P&R

6.3.2. Use a variety of techniques to acquire open space. C P&R

6.3.3. Design new parks so they can connect to recreational trails. O H P&R

6.3.4. Connect existing parks & open space with trails. O H P&R

6.4.1. Schedule "unmet needs" projects through the CIP process. O L P&R

6.4.2. Look for alternatives to address unmet needs projects. O L P&R

6.5.1. Complete implementation of existing master plans, such as those for Sinsheimer and Laguna Lake Parks. O H P&R

WATER AND WASTEWATER ELEMENT
A 2 Water Management (Multi-Source Water Supply)
A 2.3.1 Work cooperatively on regional water issues & resource planning. O L UT
A 2.3.2. Participate with SLO County in Integrated Regional Water Management Plan. O L UT
A 2.3.3. Participate with other appropriate agencies in controlling invasive species which could impact water supplies. O M UT A 2.3.4. Work with agencies to minimize water quality impacts. O M UT A 2.3.5. Continue to work with SLO County-operation of Salinas Reservoir & Nacimiento project. O L UT
A 2.3.6. Complete sanitary surveys for Salinas & Whale Rock reservoirs every five years. O M UT
A 3 Water Management (Water Resource Availability)
A 3.3.1. Provide water resource update to Council as part of annual report. O L UT
A 3.3.2. Update safe annual yield computer model for Salinas & Whale Rock reservoirs following drought periods. C UT
A 3.3.3. Monitor ongoing research for potential long term impacts to water supplies from climate change. OM UT
A 4 Water Management (Siltation)
A 4.3.1. Work with other agencies to implement Best Management Practices to reduce siltation. O L UT
A 4.3.2. Continue education & outreach to owners in watersheds to reduce siltation. O L UT

4.3.6. O M ADM/

4.3.3.3. O M P&R
Continue to maintain publicly accessible open space trails.

Program Complete Lead
Number Program Summary Or Ongoing Low Med High Dept.

Status of General Plan Implementation Programs
STATUS AS OF October 2022
Difficulty to Complete
A 4.3.3. Consider periodic siltation studies at each reservoir. M UT A 4.3.4. Provide annual update on siltation to Council. O L UT A 5 Water Management (Water Supply Accounting and
Demand Projection)
A 5.3.1. Provide annual update on water supply & demand projections to Council. O L UT
A 5.3.2. Conduct periodic updates to water development impact fees. O H UT
A 5.3.3. Prepare Urban Water Management Plan every five years. C M UT A 5.3.4. Prepare water supply assessments for large new developments. O M UT
A 5.3.5. Analyze water efficiency program impacts to overall reduction in water demand. O M UT
A 6 Water Management (Water Conservation)
A 6.3.1 Work with SLO County water agencies to identify cooperative water efficiency measures. O L UT
A 6.3.2. Participate in state & regional water conservation efforts. O L UT A 6.3.3. Implement Water Shortage Contingency Plan as required. O M UT A 7 Water Management (Recycled Water)
A 7.3.1. Expand recycled water distribution system. O H UT A 7.3.2. Review development projects to ensure recycled water is used appropriately. O L UT
A 7.3.3. Present annual recycled water use as part of annual report to Council. O L UT
A 7.3.4. Consider delivery of recycled water to customers outside City limits. C UT
A 7.3.5. Continue to explore potable reuse consistent with statewide regulations. O L UT
B 2 Wastewater Management (Wastewater Service)
B 2.3.1. Expand capacity in collection system and Water Reclamation Facility. O H UT
B 2.3.2. Evaluate wastewater flows of proposed projects. O M UT B 2.3.3. Conduct periodic updates to wastewater development impact fees. O H UT
B 3 Wastewater Management (Wastewater Treatment)
B 3.3.1. Prepare & implement Water Reclamation Facility master plan. O H UT
B 3.3.2. Work cooperatively on regional water quality issues. O L UT B 4 Wastewater Management (Collection System)
B 4 3.1. Investigate cost-effective methods for reducing infiltration and inflow to the wastewater collection system. O L UT
B 4.3.2. Provide education and outreach regarding infiltration and inflow. O L UT
B 4.3.3. Support retrofit of sewer laterals to reduce infiltration and inflow. O M UT
B 4.3.4. Update Sewer System Management Plan to maintain its applicability. O M UT
B 4.3.5. Maintain master plans for wastewater service to developing areas of City. O M UT
B 4.3.6. Review development proposals to ensure necessary infrastructure is in place. O L UT
B 4.3.7. Provide a Pretreatment Program pursuant to Clean Water Act. O M UT

Complete Lead
No. Program Summary or Ongoing Low Med High Dept.
1 2.2.2a Development subject to 20 ft setback from
creek. O CD
2 2.2.2b Development subject to 30 ft. setback from
wetland habitat O CD
3 2.2.2c Development subject to 20 ft. setback from
riparian/wetland mitigation areas & fenced. O CD
4 2.2.3a Create 1.94 acres of wetland & 2.76 acres
of riparian enhancement. O ADM
5 2.2.3b Allow filling of .78 acres of isolated
agricultural wetland seeps on hill. C ADM
6 2.2.4a Allow .12 acres of creek fill for 3 bridge
crossings. C ADM
7 2.2.4b All creek channel modifications to comply
with Drainage Design Manual & any other
required permits from Army Corps or Fish and
Game.

O CD
8 2.2.5a Plant native species between trails/rec
features and wetland/riparian habitat O ADM
9 2.2.5b Provide educational signage re: wetland &
creek habitats on public trails and OS. O ADM
10 2.2.9a City will manage Righetti Hill open space
in accordance with City Standards. O ADM
11 2.2.9b City will provide & maintain access to
Righetti Hill. City will development a management
plan consistent with COSE.

O ADM
12 2.2.10a Landowner maintains right to existing
structures & will manage parcel consistent with
Open Space standards.

O CD
13 2.3.3a 16.3 acres of active & passive parkland to
be provided with development. City will pursue 4
acres of joint use with SLCUSD with new school
development nearby.

O H P&R
14 2.3.3b 12-acre park to be developed: 10 acres to
be dedicated w/Phase I development O H P&R
15 2.3.3c 2.5 acre junction park to be developed
when impact fees are available. O M P&R
16 2.3.3d 1.5 acres of linear park to be developed
w/bike path adj to storm water basin. O M P&R
17 2.3.3e 4 acres of park to be provided by a joint
use facility when elementary school is developed. O H P&R 18 2.3.4a Subdivisions may provide parkland in lieu
of fee payment if findings can be made. O CD
19 2.4.1a 20 ft landscaped setback from Orcutt and
Tank Farm Roads. O PW
20 2.4.1b Parcels adjacent to Tank Farm & Orcutt
are sensitive sites & require ARC review. O CD
21 2.4.1c ARC shall review landscape plans - cluster
trees and screen views of new structures. O CD

STATUS OF ORCUTT AREA SPECIFIC PLAN IMPLEMENTATION PROGRAMS Status as of October 2022
Difficulty to Complete

Complete Lead
No. Program Summary or Ongoing Low Med High Dept.

STATUS OF ORCUTT AREA SPECIFIC PLAN IMPLEMENTATION PROGRAMS Status as of October 2022
Difficulty to Complete
22 2.4.1d Buildings on sensitive parcels shall not
include 2nd story unless 2nd floor is set back by
50 ft.

O CD
23 2.4.1e PC shall review design of sensitive lots
during subdivision review to ensure views are
maintained
O CD
24 2.4.1f ARC design review of units along Tank
Farm & Orcutt for compatibility & views of hill O CD
25 2.4.1g E street residences shall not be visible
from Orcutt/Tank Farm intersection O CD
26 2.4.1h R-1 subdivision at west base of Righetti
Hill - preserve views from D street to hill O CD
27 2.5.1a Implement environmental mitigation
measures with entitlements as appropriate. O CD
28 3.2.19a Provide public plaza/seating areas
adjacent to A/B streets intersection. O PW
29 3.2.19 b Commercial use to occupy ground floor
of primary commercial area. O CD
30 3.2.19c Provide commercial development
incentives: additional story, parking reduction,
exemption from OASP add-on fees.

O CD
31 3.2.24a Right-to-farm ordinance notification for
real property transfers. O CD
32 3.2.24b Ag activities to be phased out by project
build-out. Existing uses legally-established subject
to Non-conforming uses under Zoning Code.

O CD
33 3.3.4a City will support affordable housing in area
through state and local density bonus incentives. O CD
34 3.4.1a Geotech study required for each project
site prior to development. O CD
35 3.4.1b All structures & development shall meet
appropriate codes (Building & Transportation). O CD
36 3.4.2a Sites not previously surveyed shall
conduct a Phase I site assessment. O CD
37 3.4.2b Environmental assessment reqd prior to
public access or development for buildings
associated with ag uses and 55 gallon drums in
plan area.

O CD
38 3.5.2a-h Performance standards for airport
compatibility. O CD
39 4.1.1a Encourage architectural styles: Craftsman,
CA Bungalow, CA Mission themes O CD
40 4.1.1b Design Standards for R-1 and R-2
districts. O CD
41 4.1.1c Design Guidelines for R-1 and R-2
districts. O CD
42 4.1.1d Design Standards for R-3 and R-4
development O CD

Complete Lead
No. Program Summary or Ongoing Low Med High Dept.

STATUS OF ORCUTT AREA SPECIFIC PLAN IMPLEMENTATION PROGRAMS Status as of October 2022
Difficulty to Complete
43 4.1.1e Design Guidelines for R-3 and R-4
development O CD
44 4.1.2a Residential design - use local streets to
enhance neighborhood atmosphere O CD
45 4.1.2b Design features (porches, entryways,
yards) to strengthen connections. O CD
46 4.1.2c Encourage universally accessible entries
to residences. O CD
47 4.2.3a Traffic calming design for intersection of A
and B streets O PW
48 4.2.3b Mixed use commercial area near
intersection of A&B streets to have 2 public
plazas. Adjacent buildings to be 2 stories tall.

O CD
49 4.2.3c Southern part of intersection of A&B
streets to be landscaped. O PW
50 4.2.4a Building setbacks from A Street defined O CD
51 4.2.4b Trees in tree wells for whole mixed use
area
O PW
52 4.2.4c Mixed-use building facades, materials,
entries, windows to be consistent with one
another.

O CD
53 4.2.1a Use figures 3.1 and 3.2 when reviewing
intersection plans for A and B streets O PW
54 4.2.1b Height ordinance allowed to be relaxed to
enable architectural features. O CD
55 4.3.4a Final landscape plan to include details &
not use invasive non-native plant species. O CD
56 4.3.4b List of plants not be planted in OASP. O CD
57 4.4.3a OASP lighting standards - style, height,
efficiency, shielding, type, etc. O CD
58 4.5.1a 160 ft wide distance buffer from train
tracks to residential areas. O CD
59 4.5.1b Add landscaped berm or sound wall where
buffer is not adequate for noise. O CD
60 4.5.1c Orient residential uses and outdoor areas
away from railroad tracks. O CD
61 4.5.1d Put parking lots between residence and
railroad tracks. O CD
62 4.5.1e Locate sensitive uses within residences
away from tracks. O CD
63 4.5.1f Use insulating construction to reduce
noise. O CD
64 4.5.2a Set outdoor activity areas 80' back from
Orcutt and Tank Farm Rd to reduce noise. O CD
65 4.5.2b Locate sensitive uses within residences
away from roads. O CD
66 4.5.2c 60 ft wide distance buffer from Orcutt and
Tank Farm Rd to residences. O CD
67 4.5.2d Use insulating construction to reduce
noise. O CD

Complete Lead
No. Program Summary or Ongoing Low Med High Dept.

STATUS OF ORCUTT AREA SPECIFIC PLAN IMPLEMENTATION PROGRAMS Status as of October 2022
Difficulty to Complete
68 4.7.2 Building placement & construction to
maximize passive systems for heating, cooling &
lighting.

O CD
69 4.7.2b Use shade, skylights, daylight controls, &
glazing to maximize energy savings. O CD
70 4.7.2c Residential developments of >5 units/nonresidential uses >5,000 sq ft shall comply with green building criteria
O CD
71 4.7.2d 5% of all single family units shall use
photovoltaics. Increase this percentage by 4%
each year.

O CD
72 4.7.3a Energy star compliant appliances required
for dwellings. O CD
73 4.7.3b Use CFLs where possible. O CD
74 5.1.1 Orcutt Rd to have a continuous 2-way leftturn lane, Class II bike lane, & curb/gutter between Johnson and Tank Farm.

O PW
75 5.1.2 Tank Farm to be widened at D St,
Brookpine & Wavertree w/left turn lanes. O PW
76 5.1.3 Tank Farm/Orcutt intersection realignment
to be completed in Phase I. O PW
77 5.2.1 Collector streets will be single lane of travel in each direction. O PW
78 5.2.2 A St. shall have Class II bike lanes &
separated sidewalks & no parking (except
adjacent to neighborhood commercial area) on
both sides.

O PW
79 5.2.3 B St. development standards. O PW
80 5.2.4 C St. development standards. O PW
81 5.2.5 D St. development standards. O PW
82 5.2.6 Bullock Ln to be extended to connect with
traffic circle at B & C streets. O PW
83 5.2.7 Traffic circle to be built at B and C street
intersections. O PW
84 5.2.8 Shared driveway access for A, B, C, & D
streets ok. Limited private drives ok. O PW
85 5.3.1 E St development standards O PW
86 5.3.2 Allow alley area to count towards net site
area for density determination. O CD
87 5.4.1 Bus routes, stops & pullout areas to be
determined by City transit. O PW
88 5.5.1 Bike trail connections descriptions O PW
89 5.5.2 Neighborhood park bike trail path
description O PW
90 5.5.3 Tank Farm & Orcutt Road bike paths and
bike bridge over Industrial Way O PW
91 7.2.2a Circulation & road widths shall
accommodate Fire Dept. emergency access. O PW
92 7.2.2b Public fire hydrants reqd. Adequate water
volumes to support fire hydrants for fire protection
needs.

O PW

Complete Lead
No. Program Summary or Ongoing Low Med High Dept.

STATUS OF ORCUTT AREA SPECIFIC PLAN IMPLEMENTATION PROGRAMS Status as of October 2022
Difficulty to Complete
93 7.2.2c Buildings shall have fire sprinkler systems
per SLOFD requirements. O FD

STATUS OF MID-HIGUERA AREA ENHANCEMENT PLAN
Complete Lead
No. Program Summary or Ongoing Low Medium High Dept.
1 Plant native veg along creek. Acquire land on fwy
side of creek & property on east side of creek
between City prop & Marsh Street bridge for open
space (Crk-a)

O H ADM
2 Improve open space at south end of Brook St.
(PPO-d) O M ADM
3 Acquire CalTrans property & develop park (PPOa) O H P&R 4 Modify or replace Marsh St bridge if desirable to
align w/Higuera- Marsh (Flood-a) O H PW
5 Install bypass overflow channel parallel to creek
on City-owned OS (Flood-b) O H PW
6 Coordinate other flood-planning improvements
(Flood-c.) O H PW
7 Widen Higuera to four lanes w/bike lanes &
median & mid-block turns (Circ-a) O H PW
8 Realign Bianchi Ln w/ High St. (Circ-b) O H PW
9 Realign Pacific St. Close Walker St. Landscape
Walker closed area (Circ-c) O H PW
10 Parker St- CGS, trees, benches, lighting.

Higuera - trees, lighting & benches. Madonnalandscaped median. Underground utilities & remove billboards (Circ-d) O
H PW
11 Extend Brook St. w/Caltrans site (Circ-e) O H PW
12 Install bikeway along creek with bridge (Crk-b) O H PW 13 Construct ped path on east side of creek. Add
benches, public art & interpretive displays &
bridges (Crk-c) O
H PW
14 Establish a Mid-Higuera Area parking committee
& consider parking assessment dist (Pkg-a) OM PW
15 Restripe street spaces & reduce driveway ramps
(Pkg-b) O M PW
16 Review shared use parking & expand to distribute
parking (Pkg-c) OM H PW
17 Lease or purchase 2 public parking lots (Pkg-d) O H PW 18 Acquire & improve public parking near
Archer/Walker/Higuera & Parker/High (Pkg-e) O H PW
19 Complete street improvements including ped
amenities (Pkg-f) O H PW
20 Establish in-lieu parking fee for the Mid-Higuera
Area (Pkg-g) O H PW
21 Add transit stops w/shelter, benches & signage
for the Mid-Higuera area. (Pub-a & Pub-b) OM PW
22 Develop mini-plaza at Walker (PPO-b) O H PW
23 Provide info kiosks at strategic places for peds as
part of the Mid-Higuera Enhancement Plan. (PPOc) O
H PW
24 Acquire & maintain OS along creek & install
bridges & imps (PPO-e) O H PW
Status as of October 2022
Difficulty to Complete

Complete Lead
No. Program Summary or Ongoing Low Med High Dept.
1 Install traffic signals at Upham (4.1B) C PW
2 Use CIPs & economic revitalization tools to
promote area (2.9C) O H ADM
3 Limit noise & emissions from engine idling
between 10pm and 6am (3.1M) O M CD
4 Ped Circulation Plan, Bike Transp. Plan,
Circulation Element, and RR District Plan to be
consistent (2.7B)
O CD
5 Identify code violations & work with owners to
correct (2.8C) O CD
6 Rehabilitate historic SP Freight warehouse (1.11)
- 4 construct phases & roof repair completed C PW
7 Install Curb, gutter, boardwalk & trees along
Santa Barbara, High, Roundhouse, Emily & South
Street (4.1D)
O H PW
8 Clearly communicate with property owners,
railroad & ops staff (3.1I) O L CD
9 Encourage added public telephones or
emergency call boxes (2.7E) O M CD
10 Install pedestrian crosswalks at Leff & Upham
streets (4.1A) O PW
Upham Crossing C
Leff Crossing OM
11 Widen Santa Barbara Street from Broad to
Upham - including left turn pocket (4.1C) C PW
12 Install standard gauge railroad track to display of
historic railroad cars (1.12) O H PW
13 Install historic markers & improved walk of history
describing RR features (1.14) O H CD
14 Public access to RR bikeway provided with Villa
Rosa development (1.17) o H PW
15 Consider MU zone to allow broader range of uses
(2.9D) C CD
16 Consider CDBG funds for business loans and
rehabilitation grants (3.1K) O H CD
17 Enforce property screening & maintenance along
ROW (3.1N) O H CD
18 Rehabilitate historic water tower to 1940s
condition & update historic marker (1.6) O H CD
19 Evaluate assessment district to pay for
undergrounding utilities (3.1O) OM PW
20 Construct bikeway on land adjacent to Johnson
Ave for Southbound bicyclists (1.1) O H PW
21 Install bridge off Johnson Ave for bikeway north
to Cal Poly (1.2) O H PW
22 Install pedestrian bridge over RR linking Fairview
with Penny Lane (1.3) O H PW

STATUS OF RAILROAD DISTRICT PLAN IMPLEMENTATION PROGRAMS Status as of October 2022
Difficulty to Complete

Complete Lead
No. Program Summary or Ongoing Low Med High Dept.

STATUS OF RAILROAD DISTRICT PLAN IMPLEMENTATION PROGRAMS Status as of October 2022
Difficulty to Complete
Install bikeway & trail linking east side of RR
tracks to signal on Johnson @Lizzie St (1.4) O H PW
-Partially complete with shared-use path through
French Hospital Campus between Iris St &
Johnson/Lizzie intersection
24 Install new bikeway along both sides of RR ROW
(1.5) O H PW
- Partial improvements completed, significant
improvements still remain
25 Expand passenger loading zone in parking lot
north of depot (1.7) O H PW
26 Install textured concrete paving & crosswalks,
ped lighting, trees & signage @ Leff and Osos
(1.8)
OM PW
27 Plant palm trees on 50-100 ft centers (1.9) OM PW
28 Acquire land & construct a multi-modal transit
center with parking, shelter, restrooms, info, bike
storage, lockers etc (1.10)
O H PW
29 Install street paving, curb, gutter, wood
sidewalks, street trees, lighting, & signage on
Railroad Ave, Osos, Santa Barbara, High, Emily
and Roundhouse Streets (1.13)
O H PW
- Santa Barbara Street improvements complete;
other improvements remain
30 Install bikeway between Alphonso and Emily
streets (1.15) O H PW
31 Install ped/bike crossing for access from
Stoneridge/Lawrence Dr./Villa Rosa
neighborhoods to Sinsheimer Park (1.16)
O H PW
32 Improve bike/ped undercrossing to Sinsheimer
Park (1.18) O H PW
33 Install bikeway linking RR bikeway with Augusta
/Southwood Drive neighborhood through creek &
park areas (1.19)
O H PW
34 Replace/repair fencing, remove trash & install
landscaping along fence line (1.20) O M PW
35 Encourage expanded parking & staging area for
bikes (1.21) O H PW
36 CIPs to install improvements at Emily,
Roundhouse, High, Church, Santa Barbara &
Osos for paving, curbs, lighting, boardwalks,
signage & trees (2.7C)
O H PW
- Partially complete, with paving, curb, gutter
sidwalk along most of these streets. Railroad
sidewalks complete along Santa Barbara.
37 Consider special engineering standards for
district public improvements (2.7D) C PW
- Standards now include railraod sidewalks and
sign posts.
38 Improve traffic circ-expand public transit,
bikeways, & widen Santa Barbara (3.1H) O M PW
23

Complete Lead
No. Program Summary or Ongoing Low Med High Dept.

STATUS OF RAILROAD DISTRICT PLAN IMPLEMENTATION PROGRAMS Status as of October 2022
Difficulty to Complete
- Santa Barbara Street improvements 90%
complete; other improvements remain
39 Improve passenger loading facilities at depot
parking area (3.1J) O H PW
40 Use RR parking lease funds to improve parking
enforcement, & lot appearance (3.1L) O M PW
41 Install additional traffic signage and street lighting, where considered necessary at pedestrian
crossings to improve sight distance (4.1E)
O M PW

STATUS OF AIRPORT AREA SPECIFIC PLAN
Complete Lead
No. Program Summary or Ongoing Low Med High Dept.
1 Establish joint RTA bus stop on S. Higuera &
Tank Farm Rd (AASP 6.3E) C PW
2 Management program for area creeks required
with minimum setbacks of 35 ft. (AASP 3.3.1) O ADM
3 Develop remediation actions for Chevron site to
preserve natural resources (AASP 3.3.4) C ADM
4 Establish mitigation bank within Chevron property
to serve AASP & MASP areas (AASP 3.3.5) C ADM
5 Develop public access levels compatible with
maintaining habitat for Chevron property (AASP

3.3.6)
O ADM
6 Restore creek areas (AASP 3.3.7) O ADM
7 Retain open space corridor to allow movement of
wildlife on Chevron property (AASP 3.3.8) O ADM
8 Maintain wildlife corridors south from AASP
toward Indian Knob & Davenport Hills by obtaining
greenbelts and working with County (AASP

3.3.9P)
O ADM
9 Enlarge wetland connection between areas north
and south of Tank Farm Rd (AASP 3.3.10) O ADM
10 City will manage acquired open space land to
preserve habitat (AASP 3.3.11) O ADM
11 City will pursue MOU for privately owned open
space lands to preserve habitat (AASP 3.3.12) O ADM
12 In lieu fee for development not able to dedicate
land for open space (AASP 3.3.14) O ADM
13 Expansions of URL will secure open space (AASP

3.3.15) O ADM
14 Resource management activities compatible with
airport operations (AASP 3.3.17) O ADM
15 Expand wetland north of Tank Farm w/Chevron
project (AASP 3.3.18) O ADM
16 50 ft wetland setback required through
subdivision, development, & public facilities
(AASP 3.3.3)
O CD
17 Require development to dedicate land or
easements for greenbelt (AASP 3.3.13) O CD
18 Locate bike paths outside creek setback area
(AASP 6.3H) O PW
19 Bike lanes shall meet or exceed CA DOT & City
design standards (AASP 6.3I) O PW
20 Require bike lanes as part of frontage
improvements for development. Require bus
stops as part of development improvements
where appropriate (AASP 6.3G)
O PW
21 Establish timed transfer point on Margarita Rd
(AASP 6.3D) O L PW
Status as of October 2022
Difficulty to Complete

STATUS OF AIRPORT AREA SPECIFIC PLAN
Complete Lead
No. Program Summary or Ongoing Low Med High Dept.

Status as of October 2022
Difficulty to Complete
22 Development to provide street furniture or
passenger amenities such as transit stops,
shelters, pads, trash receptacles, etc. (AASP

6.3L) O
M PW
23 Amend Bicycle Transportation Plan to include
Airport area facilities (6.3F) C PW
24 Limit access to creek side environment between
Broad St. and Santa Fe Rd (AASP 3.3.2) O H ADM
25 Access & interpretive info for historical resources
(AASP 3.3.16) O H CD
26 TIF funds used for new buses to serve AASP.

Bus stops provided by adjacent development
(AASP 6.3C) O
H PW
27 Amend Circulation Element to expand truck route
network (AASP 6.3A) C PW
28 Connect bike lanes at intersections in the Airport
Area (AASP 6.3J) OM PW
29 Establish a CIP program to include bikeways not
part of Airport development (AASP 6.3K) OM PW

STATUS OF MARGARITA AREA SPECIFIC PLAN IMPLEMENTATION PROGRAMS Complete Lead
No. Program Summary or Ongoing Low Med High Dept.
1 1.1a Hills to be dedicated to City & protected. C ADM 2 1.1b Livestock grazing may be limited & City will
manage hillside vegetation. O CD
3 1.1c Previously graded road to Telecom facilities
will be relocated. O CD
4 1.2.a Acacia Creek corridor shall be 100 ft wide
exclusive of sports fields & will be replanted with
riparian plants.

O CD
5 1.2.b Swales emerging from hills will have open
space corridors 50 ft wide & fenced near
developed areas.

C CD
6 1.2c Lower swales thru neighborhood park will be
accessible for play O H P&R
7 1.3 Riparian and seasonal wetlands which are
shown as development areas will be replaced in
kind within MASP.

O ADM/P
W
8 1.4a MASP development to detain peak storm
water flows on-site. Shallow basins are preferable
to deeper ones.

O CD
9 1.5a Protect ag land elsewhere in URL or
greenbelt. O CD
10 1.6a Provide 10-acre neighborhood park, and 16
acre improved sports field. O H P&R
11 1.6.1a Neighborhood Park req's including
equipment and landmark feature. O H P&R
12 1.6.1b Some seating, cooking & small child play
space to be partly enclosed. O H P&R
13 1.6.2 Greenspace and play fields mainly seminatural vegetation, with large trees only at edges & possibility of community gardens.

O ADM
14 1.6.3 Greenways for cycling & walking paths. O PW
15 1.6.4 Sports fields to accommodate active
recreational uses & include on-site parking.

Shielded night lighting.

C P&R
16 2.1.1 Low Density Residential areas for SFRs
only. No churches, schools or secondary
dwellings.

O CD
17 2.1.2 Density will be 7-9 dwellings/acre O CD
18 2.1.3 Lot dimensions are regulated by Table 2 O CD
19 2.1.4 A-C - setbacks and building/parking
orientation O CD
20 2.1.5 Each dwelling shall have 2 off-street
parking spaces - one covered. & alley access
standards
O CD
21 2.2.1 Medium density residential areas -detached
houses on small lots or groups of detached
dwellings on larger lots
O CD
22 2.2.2 Medium Density shall be 8-16
dwellings/acre. O CD
Status as of October 2022
Difficulty to Complete

STATUS OF MARGARITA AREA SPECIFIC PLAN IMPLEMENTATION PROGRAMS Complete Lead
No. Program Summary or Ongoing Low Med High Dept.

Status as of October 2022
Difficulty to Complete
23 2.2.2 a-e Lot dimension table & standards for
Med Density O CD
24 2.2.4 Med Density Building form - setbacks and
architecture O CD
25 2.2.5 Parking to be located at rear. Alley access
standards and special setbacks if located in front. O CD 26 2.3.1 Med-High Density Res for attached
dwellings or PUDs. No churches or schools
allowed.

O CD
27 2.3.2 Med-High Density will be 13-18 units/acre. O CD 28 2.3.3 Lot dimensions per Table 4 O CD
29 2.3.4 a&b Setbacks and architectural criteria O CD
30 2.3.5 Parking to be located at rear. Alley access
standards and special setbacks if located in front O CD 31 2.4.1 High-Density Residential - allow a mix of
densities and ownership. Churches and Schools
not allowed
O CD
32 2.4.2 High-Density Residential density will be 19-
24 units/acre O CD
33 2.4.3 Lots to be developed as a single parcel or
condo however it may be divided into two land
parcels to allow for affordable housing.

O CD
34 2.4.4 a-c High Density building form - setbacks,
arch character and porches or other outdoor
space.

O CD
35 2.4.5 Parking requirements and location O CD
36 2.5.1 Neighborhood commercial uses = CN zone
except no uses larger than 5,000 sq ft, schools,
services stations
O CD
37 2.5.2 CN Density shown in Figure 5 O CD
38 2.5.3 CN lot dimensions & size minimums O CD
39 2.5.4 a-f CN Building Form (coverage, height,
setbacks, FAR, size, architectural character O CD
40 2.5.5 CN parking required 1/500 sq ft. & 1/300 sq
ft for bikes O CD
41 2.6.1 Business Park uses - master-planned
campus-type development. O CD
42 2.6.1a BP Office - small offices and mixed use. O CD 43 2.6.1b BP General - R&D, Light manufacturing,
business services. Allowed uses listed by
approval level.

O CD
44 2.6.1c BP- Outdoor - landscaped parking, storage,
employee recreation areas O CD
45 2.6.1d BP- prohibited uses = carnivals,
convalescent hospitals, dwellings, homeless
shelters, schools or public assembly uses
O CD
46 2.6.2 BP employee density not to exceed 40
persons/acre O CD
47 2.6.3 BP parcel sizes & dimensions O CD

STATUS OF MARGARITA AREA SPECIFIC PLAN IMPLEMENTATION PROGRAMS Complete Lead
No. Program Summary or Ongoing Low Med High Dept.

Status as of October 2022
Difficulty to Complete
48 2.6.4 BP vehicle access will be loops or grid
extensions. NO driveways on Prado Rd. O PW
49 2.6.5a-i BP site and building design (FAR,
Orientation, outdoor space, setbacks, parking lots,
heights, massing, entries, & materials)
O CD
50 2.6.6a-d BP Continuity of landscape space O CD
51 2.6.7a-d BP parking requirements & design O CD
52 2.6.8a-b BP Landscape screening required for
loading, waste collection, utilities & mechanical
equipment
O CD
53 2.6.10 BP Outdoor employee amenity areas are
required O CD
54 2.7.1 Special use area between hills and Broad
street (1.2 acres). House and grounds should be
preserved and uses may include residence; B7B,
hostel, museum, art or craft gallery with retail
sales, restaurant, retail sales of food, office for
sales of MASP properties or visitor info center.

O CD
55 3.1a Buildings to express human scale by
articulating mass O CD
56 3.1b Architectural styles in plan are encouraged O CD 57 3.1c Residential entries should be identifiable
from streets or ped walkways O CD
58 3.1d Universally accessible entries are
encouraged for all buildings O CD
59 3.1e All development is encouraged to have
outdoor space shielded from aircraft noise. O CD
60 3.2 Street trees to create sense of identity; focal
areas should be highlighted through trees and
planting; riparian corridors should have native
landscaping; and all landscaping should be water
efficient.

O CD
61 3.3 Lighting shall be energy efficient, avoid glare
and minimize illumination toward sky. O CD
62 3.4 Building form & placement to meet solar
exposure objectives. O CD
63 3.5 Public art to be encouraged at neighborhood
park & principal collector street entries. O H P&R
64 3.6 Dwellings & outdoor spaces to be separated
from Prado Rd by greenways, green space & BP
uses. Landscaped berm to be installed where
appropriate.

O CD
65 3.7 Fence and wall designs to comply with
community design guidelines O CD
66 4.2 a-g performance standards to ensure airport
compatibility including limitation on uses and
operations that might be dangerous; indoor noise
level requirements, avigation easement and
disclosure requirements
O CD

STATUS OF MARGARITA AREA SPECIFIC PLAN IMPLEMENTATION PROGRAMS Complete Lead
No. Program Summary or Ongoing Low Med High Dept.

Status as of October 2022
Difficulty to Complete
67 5.0 Traffic calming features to be developed.

Streets & drives to provide access without
unnecessary paving
O PW
68 5.1 City will extend transit service into area as
roads are developed. Transit stops to include
turnouts, shelters, benches, trash receptacles &
real time arrival status displays.

O PW
69 5.2a New development shall include sidewalks,
ped paths, bike lanes and bike paths. Precise
alignments will be determined with subdivisions.

O PW
70 5.2b Bike path width, paving, signs and features
to comply with Bicycle Transportation Plan.

Proposed crossings may include features such as
pavement changes, signs or bulb-outs.

O PW
71 5.2c. Pedestrian and bike access to sports fields
will be by enhanced under or over crossing with
visibility for safety and sense of place
O PW
72 5.3a-I Streets to foster traffic volumes
appropriate for land uses and neighborhoods O PW
73 5.4 Alleys should be used where feasible O PW
74 5.5 Local streets will have bulb-outs at the end of
blocks and at mid-block for blocks longer than
500'.

O PW
75 5.7.1 Additional right-of-way for Broad Street to
accommodate bike lane, vertical curbs,
landscaped parkway, and center median.

O PW
76 5.7.2 Prado Road facilities, phasing and
construction requirements O PW
77 5.8 Traffic calming required - roundabouts, traffic
circles, intersection treatments, and bulb-outs. O PW
78 5.9 Street names to follow City requirements. O CD
79 6.3 Fire Dept. activated signal control devices
required for all intersections with traffic signals O PW 80 7.3.1 Subdivision plans must show detailed
solutions to storm water issues. Developers are
responsible for drainage facilities serving their
parcels.

O PW
81 7.3.2 All drainage facilities must comply with
NPDES & post construction runoff controls O CD
82 7.5 Each residence shall have one 2" conduit
connected with underground system to facilitate
future installation of high-speed data system.

O PW
83 7.7 All new power, telephone & cable lines to be
installed underground. All existing line facilities to
be underground at time of frontage construction.

O PW
84 7.8 Streets & utilities installations must be built to ensure that later projects can build upon systems
that are appropriately sized and located.

O PW

STATUS OF MARGARITA AREA SPECIFIC PLAN IMPLEMENTATION PROGRAMS Complete Lead
No. Program Summary or Ongoing Low Med High Dept.

Status as of October 2022
Difficulty to Complete
85 8.1a The area shall accommodate at least 2 sites
with a total capacity of 40 dwellings for HASLO to
provide affordable housing.

C CD
86 8.1b Residential area may be developed with
modular or manufactured dwellings that comply
with specific plan.

O CD
87 8.1c Affordable housing density bonuses
available in area designated in Fig 5 only due to
airport land use plan.

O CD

ATTACHMENT C.

CLIMATE ACTION PLAN UPDATE

INTRODUCTION
In response to community priorities and Council direction, the City has been implementing ambitious sustainability and climate action work since the 2017-19 Financial Plan. In 2020, Council adopted the Climate Action Plan for Community Recovery, which established the goal of community wide carbon neutrality by 2035 and supporting sector specific goals. In 2021, the City also adopted the Lead by Example plan, which established the goal of carbon neutral municipal operations by 2030 and describes capital projects and operational programs required to achieve the goal.

Staff and the community have been busy implementing both plans and are preparing an update that provides the 2023-27 CAP implementation work plan.

This document provides an overview of the implementation status of the 2020 Climate Action Plan, previews the forthcoming 2023- 27 CAP Work Plan, an d describes the opportunities provided by Federal and State funding and regulatory alignment.

CAP IMPLEMENTATION STATUS
The 2020 CAP directs staff to provide an update on Climate Action Plan implementation progress every two years. The initial progress report was provided to Council in 2021 and the next biennial report will be provided to Council in December of 2022 (concurrent with the proposed 2023-27 CAP Work Program, discussed below).1,2 That report will provide a comprehensive implementation status update for every action in the 2020 CAP.

Key implementation status items in that report include:
 Diversity, Equity, and Inclusion and Climate Action:

Diversity, equity, and inclusion are core values for the City and the Office of Sustainability has made a conscious
effort to center these considerations in all climate action

1 2021 CAP Progress Report:
https://www.slocity.org/home/showpublisheddocument/30891/637644578194470000 2 The Public Review Draft progress report is available for review and comment from November 2 through November 16 at www.slocity.org/climateactionplan

Attachment C. Climate Action Plan Update November 2022

work. Since adoption of the 2020 CAP, the City has included equity as a core consideration in every implementation project plan.
 Clean and Green Electricity: On January 1, 2020, the City began receiving energy from Central Coast Community Energy, formerly Monterey Bay Community Power, a Community Choice Energy program that provides clean electricity, rate savings, and community energy programs.
 All-Electric New Buildings: In July 2022, Council adopted the Clean Energy Program for New Buildings, which requires nearly all projects submitting building permits on or after January 1, 2023, to be all-electric.
 Natural Solutions and Carbon Sequestration: In Summer and Fall of 2022, the City completed a soil carbon storage study with assistance from the Coastal San Luis Resource Conservation District and began a pilot compost application project at Johnson Ranch. The 1.2-acre pilot project leveraged Cal Poly’s distinguished faculty studying carbon sequestration and soil health and prepared the City to expand the program to include additional practices and sites in the SLO Greenbelt. The City’s initiative to plant 10,000 trees by 2035 is also underway and strong partnerships and volunteer networks have been developed.
 Lead by Example: Carbon Neutral Municipal Operations: Staff has completed nearly all of the near-term (2021-24) tasks in the plan and are preparing to implement tasks identified for 2023-25. Recent “Lead by Example” projects include:
o Lighting retrofits at both Palm Street parking garages, Fire Station 1, and City Hall. o Installation of a large battery storage facility at the Water Treatment Plant. o Installation of fleet electric vehicle chargers and delivery of the first all-electric fleet vehicles.
o Completion of the City building and facility electrification plan, fleet electrification transition plan, and microgrid pilot study (with physical implementation of all three items set to begin in 2023).
 Active Transportation: The City has made quick and impactful strides implementing the Active Transportation Plan. Notable completed projects include the Railroad Safety Trail Bridge connecting Phillips to Pepper Street, protected bike lanes on Marsh Street and Higuera Street, and the pedestrian hybrid beacon on Broad Street at Woodbridge.  SB 1383 - Short-lived Climate Pollutants: Organic Waste Reductions: The City has proactively worked towards compliance with SB 1383. On November 16th, 2021, the City adopted an ordinance requiring all residents and businesses to utilize organic waste collection services by 2022. The City also updated the solid waste and recycling sections of the municipal code to require all residents and businesses to utilize organic waste collection services.
2023-27 CAP WORK PLAN
The 2020 CAP also directs staff to update the Climate Action Plan ahead of every other Financial Plan. The initial update will occur in January 2023 ahead of the 2023-25 Financial Plan. The 2020 CAP included a number of foundational actions that focused on plans, studies, and small pilot programs. As a result of the successful implementation of the 2020 CAP and 2021 Lead by Example Plan, the City’s proposed 2023-27 Work Plan will focus on deploying climate solutions at the speed and scale needed to achieve its targets. This rapid deployment is substantially aided by historic state and federal policy alignment and funding resources (described in more detail

Attachment C. Climate Action Plan Update November 2022

below). The Public Review Draft 2023-27 Work Plan is available for review at slocity.org/climateactionplan from November 2 through November 22 and is expected to be presented to Council for adoption on December 13, 2022. Figure 1 provides the CAP update schedule through 2027.

Figure 1. Climate Action Plan Update and Implementation Schedule

NEW STATE AND FEDERAL RESOURCES AND POLICY

ALIGNMENT
In 2022, California ratcheted up its ambition and the Federal Government passed the most ambitious climate legislation in US history. The state and federal approaches to climate action are deeply aligned with the City’s approach, including in its focus on the interconnectedness of climate action and environmental justice; electrification of fossil fuel appliances, equipment, and vehicles; and conservation and management of natural and working lands. In 2023-25, the City will enter a new period where all levels of government are moving in the same direction with unprecedented funding available.

City Financial Implications
In 2022, California (2022 climate budget) and the federal government (Inflation Reduction Act, Infrastructure Investment and Jobs Act, CHIPS Act) committed over $425 billion to climate solutions that transition communities to low-carbon futures. This means substantial funding for community programs including up to $20,000 available to income-qualified households for transitioning to solar, clean electric appliances, and vehicles, and increased funding for community infrastructure like transit and community resilience hubs.

Under the Inflation Reduction Act, cities are also able to receive the Investment Tax Credit for the first time through direct payment. This means that starting in 2023, the City’s Lead by Example projects will likely be eligible for direct federal funds that could amount to 30% of all solar and battery storage projects, up to $7,500 for electric vehicles, and up to $40,000 for heavy-duty equipment.

This funding is complementary to the substantial grant resources already being rolled out by the state of California. The grant funding environment is expected to be robust and could have major Initiate full
2027 Climate
Action Plan
Update
(SPRING
2026)
2025-27 FP
Proposals
(JANUARY -
MAY 2025)
2023-25 FP
Proposals
(JANUARY -
MAY 2023)
Climate
Update
Council
Adoption
(JANUARY
2023)
CAP Update -
Public Review
Draft
(NOVEMBER
2022)

Attachment C. Climate Action Plan Update November 2022

benefits for City operations and community programs. Contemporary competitive sustainability grants also tend to have explicit environmental justice or equity components, which could help the City achieve its Diversity, Equity, and Inclusion goals.

Economic Development Implications
The value of the Inflation Reduction Act extends beyond the City’s climate goals. Rewiring America estimates that if every eligible home in San Luis Obispo County took advantage of the Inflation Reduction Act, by the end of 2030, that would result in over $700m in residential electrification project investments, generating 1,246 direct and 4,337 total new jobs in San Luis Obispo County.3 Building retrofits are challenging work that require skilled trades including electricians and plumbers, among others. If the local workforce is developed and supported, the Inflation Reduction Act could provide high quality jobs insulated from some of the volatility possible in other employment sectors.

Additionally, the region could be a hotbed of sustainability entrepreneurship and innovation. With substantial federal incentives and state support for offshore wind, extending Diablo Power Plant’s operational life, and ongoing interest in renewable energy and energy storage, the green tech/cleantech sector could play a role in supporting a robust economy through the decade.

Policy Implications
Two prominent examples of statewide ambitious climate action are the Air Resources Board’s recent vote to develop a rule to begin phase out of fossil fuel appliances at retailers beginning in 2030 and a separately established rule to phase out fossil fuel vehicle sales entirely by 2035.

Similar phase outs are scheduled for fossil fuel buses and lawn and garden equipment. It is unclear if, or how, regulations like these will affect the economic outlook for the City in 2023-25, but they will certainly influence local and regional commerce through the end of the decade and

NEXT STEPS AND ONGOING IMPLEMENTATION
As illustrated in Figure 1, staff anticipates presenting the 2023-27 work program and 2021-22 CAP Progress Report to Council in December 2022. Concurrent with these planning and reporting exercises, staff will continue to implement the CAP and the remainder of the 2021-23 Climate Action, Open Space, and Sustainable Transportation Major City Goal.

3 https://map.rewiringamerica.org/states/california-ca/county/san_luis_obispo_county

Attachment D
1 Proposed changes to the Budgeting and Management of the Capital Improvement Plan
A. Background on the City’s Capital Improvement Program (CIP) Per the City’s fiscal policies, all City construction projects and equipment purchases costing $25,000 or more are included in the City’s adopted CIP. The five-year CIP is refreshed and adopted as part of the budget with every Financial Plan and accomplishes several goals.

CIP Goals
Maintains and replaces existing City infrastructure in accordance with the City’s asset management plans, infrastructure replacement schedules, and other documents.

Meets community needs and desires as established during the Community Forum, Major City Goals and Council priorities.

Plans, schedules, and finances projects to ensure cost-effectiveness and conformance with established policies.

Comprehensive policies relative to the development of the City’s CIP are specified in the Fiscal Policies section of the 2021-23 Financial Plan1including detailed information relative to both the two-year Financial Plan and the five-year CIP forecast.

1 2021-23 Financial Plan, Pages 537-569. https://www.slocity.org/government/department-directory/finance/citybudget

1. Background on the City’s Capital Improvement Program

2. CIP Process Improvements Made in Response to the Management Partners Study

3. Process Improvements for Budget Structure: CIP ‘Funding Buckets’

1. Benefits of the Approach

2. Checks, Balances, and Internal Controls

3. Policy Language Recommendation

4. Existing Purchasing Policy Requirements

5. CIP Project and Budget Reporting

6. The CIP Engineering program and the Capital Budget.

2 The 2021-23 Financial Plan
includes funding for 115
construction projects
(inclusive of new assets,
asset replacements and asset
maintenance) that are
managed primarily by CIP
Engineering, Transportation,
Maintenance or Utilities
project managers.

City construction projects are
carried out through seven
distinct phases, shown to the
right. While the construction
phase is the most visible to
the community, it is also the
culmination of months to
sometimes years’ worth of
planning, scoping, design,
engineering, and permitting;
all leading up to the
construction phase.

The 2021-23 Financial Plan
represents significant growth
to the City’s CIP due to the
passage of the Local
Revenue Measure (Measure
G-20) which increased the
local sales tax rate from 0.5
percent to 1.5 percent which, at the time of adoption, was projected to generate approximately $22 million annually. General Fund capital expenditures for FY2022-23 have increased by 65% compared to pre-Measure G-20 levels.

The growth of the CIP has exceeded the City’s existing organizational capacity to effectively deliver capital projects. To address this, the 2021-23 Financial Plan included budget augmentations of $500,0000 in FY 2021-22 and $1 million in FY 2022-23 and beyond to “rightsize” the organization to address the increased project workload. In 2021, the City contracted with Management Partners, a local government consulting firm, to perform an assessment of the delivery of the CIP and provide both structural and process improvements to deliver projects. The Management Partners assessment resulted in 53 recommendations covering all aspects of the City’s CIP to improve project delivery.

3 In addition to the expansion of the CIP due to the passage of Measure G-20, CIP delivery is currently also constrained by a number of different factors, including staffing constraints, supply chain issues, and construction cost escalation.

B. CIP Process Improvements Made in Response to the Management Partners Study A CIP Process Improvement Manager was hired in November 2021 to lead the implementation of the Management Partners recommendations, as well as other identified areas for improvement. Process improvement work to date has been approved by Council as required and included:

1. Creation of two new classifications of staff in the CIP Division:
a. Capital Improvement Plan Administrative Manager to manage the nontechnical and financial aspects of the City’s CIP, and b. Capital Projects Manager to provide project management for capital projects that do not require a high degree of engineering expertise and to partner with Engineers to manage larger and more complex capital projects.

2. Addition of 4.00 FTE net new positions to build capacity to address the growth of the annual CIP. These positions include the new 1.00 FTE Capital Improvement Plan Administrative Manager and 1.00 FTE Capital Projects Manager positions noted above, 1.00 FTE Supervising Engineer and 1.00 FTE Engineering Inspector.

In addition to these net new additions, 1.00 FTE Engineer was reclassified to a Capital Projects Manager (the Public Works Department now has 2.00 FTE Capital Projects Manager positions).

3. Development of a reporting database to centralize information about project status (including scope, timeline and budget) in a single document for streamlined reporting.

4. Collaboration with Finance and IT staff to improve financial system (Oracle) functionality to better track and control capital project budgets and expenditures.

5. Development of a recommended new budget structure for the Capital budget (discussed in more detail below).

6. Clarification of CIP processes through enhancement of CIP governance, including:
a. Updates to CIP policies to clarify CIP processes, and support the recommended new budget structure discussed in more detail below b. Development of a Charter to clarify the role of the CIP Review Committee and meeting procedures
c. Development of project evaluation criteria to be used on an ongoing basis, regardless of economic outlook and external impacts
d. Development of a Project Request Form that departments will be required to complete in order to request funding for a new capital project. This form is intended to:

4 i. assist departments in developing the scope of the requested project, ii. provide the CIP Review Committee with the information needed in order to evaluate and prioritize projects for funding, and
iii. provide a good starting point for project managers to develop project plans.

It is expected that further work efforts implementing more of the Management Partners study will be reflected in the 2023-25 Financial Plan. On September 22, 2022, staff presented recommended process improvements related to the structure of the CIP budget to the Revenue Enhancement Oversight Commission (REOC). Below is a summary of budget recommendations presented to the REOC.

C. Process Improvements for Budget Structure: CIP ‘Funding Buckets’ As discussed in the FY 2021-22 Mid-Year Budget Update and FY 2022-23 Budget Supplement, supply chain issues and cost escalation have significantly impacted the delivery of the City’s capital projects; an example is the Summer 2022 Roadway Sealing project, which came in significantly over bid and required a budget adjustment of almost $1.6 million. To provide staff with flexibility to adjust the budgets of individual capital projects, staff is recommending that the City Council appropriate funding for Asset Maintenance and Asset Replacement costs in the CIP budget at a ‘funding bucket’ level, rather than at the individual project level.

This approach would allocate a total budget to each category (see below) and in doing so, Council would provide staff with the flexibility to move money between projects within a funding bucket administratively, without seeking approval from the Council. This approach will put emphasis on delivering projects and shift priorities to ensure projects are being constructed.

Asset Maintenance projects are ones that address recurring and annual needs to maintain existing assets. Asset Replacement projects are ones that address periodically recurring and/or annual needs that replace existing assets with a similar new asset. Use of funding buckets is not recommended for New Asset projects which expand the City’s infrastructure that serves the community—budget adjustments for those projects are recommended to remain under the purview of the City Council due to their scope, fiscal impacts including debt issuance, and generally higher level of community interest.

The funding buckets are intended to group like projects within the Asset Maintenance and Asset Replacement project type and include:

1. Fleet

2. Facilities

3. Open Space and Natural Areas Preservation

4. Parking and Transit

5. Parks, Urban Forestry, and Public Art

6. Streets, Bridges and Multimodal Transportation

7. Creek and Flood Protection

8. Information Technology

9. Water Resources, Treatment and Distribution

10. Wastewater Collection and Treatment

5 1. The use of funding buckets has several benefits, including:
a. Appropriation at the bucket level and staff discretion to move money within a bucket allows the City to be nimbler in responding to cost overruns, as well as changes to project prioritization to deliver projects instead of lengthy processes to re-allocate budget. Under current processes, staff must seek Council approval to make a budget adjustment for a project. Drafting and routing these reports takes time and is limited to review at one of two monthly meetings; a process that can take up to two months.
b. Projects are priced closer to when they are initiated, rather than during budget development, which can be two years before a project begins. Developing project cost closer to when they are initiated allows for more accurate cost estimates, based on known scopes and the impact of external conditions (e.g. cost escalation). c. Staff has additional time to develop project scopes. Rather than scoping projects during budget development to identify a budget to seek Council appropriation, staff will have the ability to focus on scoping projects as they are assigned, which will result in more accurate and complete project scopes (more time to scope projects directly aligns with a Management Partners recommendation).

2. Controls, Checks, and Balances to Support Funding Buckets Feedback from the REOC was that they understood why staff was recommending use of funding buckets and that it would provide much-needed flexibility to move money between projects when higher cost estimates would otherwise halt forward momentum. However, the REOC also expressed some concern about their and the City Council’s opportunity to be informed and provide guidance or direction to staff in the event that any capital project(s) exceed estimated budget to the extent that they might impact delivery of other projects in the same bucket. Staff is planning to return to the REOC in December to continue this discussion and provide additional information as requested by the members.

3. Policy Language
Recognizing that the funding bucket approach changes how the REOC makes recommendation to the City Council for appropriating funding for capital projects, staff has been working on updates to policies and procedures to assure that appropriate controls and checks and balances are in place.

At the September 22nd REOC meeting, staff presented policy updates that are being developed for consideration by the City Council on January 10, 2023, as a part of the Budget Foundation. As of the writing of this report, the language is under development and a summary of the changes to be recommended is included below:

6 Recommended Changes to Existing Policies
Policy Title Description and Rationale for Change
Project
Manager
Reflects current role for project managers to manage project scope, budget allocation, timeline and communications with project stakeholders. Revisions clarify that project management is primarily performed by staff from CIP Engineering but can also be done by staff in other departments, as appropriate.

CIP Review
Committee
Expands description of the CIP Review Committee’s role and reflects current membership of the Committee. Revisions clarify that the Committee is responsible for:

1. Assessing the City’s fiscal condition and staff capacity to deliver projects so that the recommended CIP represents what can realistically be accomplished; and

2. Recommending to the City Manager the projects that should be included in the biennial financial plan, as well as appropriate funding levels for the CIP funding buckets; and

3. Considering new projects that may be requested mid-year to address emergent needs; and

4. Evaluating the re-prioritization of projects as needs and conditions change to ensure consistency with project evaluation criteria, ability to deliver projects, and City priorities.

CIP
Appropriation
Clarifies recommended new approach of City Council appropriation of CIP budget to ‘funding buckets’ for Asset Maintenance and Asset Replacement projects and provides staff discretion to administratively move funding within the buckets. Identifies the ‘buckets’ as:

1. Fleet

2. Facilities

3. Open Space and Natural Areas Preservation

4. Parking

5. Parks, Urban Forestry, and Public Art

6. Streets, Bridges and Multimodal Transportation

7. Creek and Flood Protection

8. Information Technology

9. Water Resources, Treatment and Distribution

10.Wastewater Collections and Treatment
Clarifies that appropriation of budget for New Asset projects is made to individual projects and that budget adjustments for these projects require City Council authorization.

7 Recommended New Policies
Policy Title Description and Rationale for Change
Project Type Identifies and defines project types, including Asset Maintenance, Asset Replacement, and New Asset projects, and clarifies existing process of considering Asset Maintenance needs before recommending funding for projects to replace existing assets or construct new assets.

Project Request
Forms
Requires that departments submit a Project Request Form (PRF) to formally document and describe requested capital projects. Use of this new form is intended to ensure that the Committee has the information it needs to evaluate and prioritize projects for funding. This new practice is also intended to address a Management Partners recommendation that staff allocate additional time for project scoping. The information provided on the PRF is intended to help address this recommendation by requiring requesting departments to articulate the scope of a project early on.

Project
Evaluation
Criteria
Identifies the criteria that will be used to evaluate and prioritize requested capital projects for funding. Evaluation criteria is as follows (equally weighted at 1 point each):

1. Does the project support economic sustainability of the community and organization?

2. Does project address a critical community health or safety need?

3. Does project make good on ongoing commitments? Consider:
a. Previously budgeted (or existing external funding source) b. Approved planning documents
c. Address mandates or legal requirements

4. Does the project address core infrastructure needs?

5. Does the project provide a visible and measurable community benefit?

6. Does the project align with Major City Goals?

7. Does the project address Measure G priorities?
a. Economic development and business retention
b. Safe and clean public areas
c. Youth/senior services and recreation facilities
d. Open space/natural areas preservation and maintenance e. Street maintenance and transportation
f. Community safety and emergency preparedness
g. Protect financial stability
h. Creek and flood protection
i. Address homelessness

8 8. Does the project have a positive impact on ongoing operations? a. Reduction to operating costs
b. Improved service delivery
Creation of
Projects
Establishes that projects will only be created outside of budget development process only if they address an emergency need or are directed by the City Council.

Project
Appropriations
Clarifies the recommended new approach of appropriating CIP funding to ‘buckets’ by identifying that appropriation to individual projects does not occur with adoption of the budget. Identifies five options that staff can pursue if a project is expected to be considerably over estimated budget:

1. Eliminate the project

2. Defer the project for consideration to the next Financial Plan period

3. Rescope or change the phasing of the project to meet the budget

4. Re-prioritize projects and appropriate additional budget from the appropriate bucket to the project to meet the need

5. Appropriate additional resources as necessary from the Capital Projects Reserve if the re-prioritization of projects is not possible or advantageous or insufficient funding remains in the overall budget allocation withing the funding bucket.

Administrative
Budget
Adjustments
Establishes the process staff must follow to process a budget adjustment administratively within a bucket. The process requires consultation between the project manager, City Engineer, CIP Administrative Manager, and Public Works Analyst to consider the request for additional funding for a project within the context of other projects intended to be funded within the bucket. To assure appropriate checks and balances, the policy also identifies the required routing for budget adjustments which must be signed off by staff from the proponent department, Public Works staff, and Finance staff.

CIP Reporting Requires staff to publish reports on the CIP on a quarterly basis, as part of Quarterly Budget Reports provided to the REOC and City Council; and specifies that the reports should include a summary of administrative budget adjustments made within appropriated funding buckets, associated tradeoffs, as well as a status update on projects in progress.

Policies Recommended to be Deleted
Policy Title Description and Rationale for Change
Program
Objectives
Eliminating policy that does not reflect current practice. The existing policy states that “Project phases will be listed as objectives in the program narratives of the programs, which manage projects.”

9 D. Existing Purchasing Policy Requirements
In addition to the policy updates summarized above, it is worth noting that the City’s Purchasing Policy, which was approved by Council in May 2022, requires that staff must seek City Council approval to award construction contracts over $200,000. Most of the projects included in the City’s CIP have a construction cost that exceeds this threshold, which means that staff will continue to regularly be before the City Council to seek approval to proceed with projects. With each Council Agenda Report, the City Council will have the opportunity to ask questions about projects and provide direction to staff, as necessary.

E. Regular CIP Project and Budget Reporting
Finally, as noted in the summary policy language above, staff will provide quarterly reporting to both the REOC and City Council about project status and use of funding within each bucket for transparency and increased communications. In addition to providing information on the project status, the reports will also include a detailed accounting of project funding, including:
 Initial budget estimates for each project (the total of all projects in a funding bucket will equate to the appropriated funding amount),
 Current budget appropriated to each project,
 Current expenditures charged to each project, and
 At completion, the total actual cost of each project.

Presentation of these reports on a quarterly basis (approximately every three months) will provide additional opportunity for both REOC and the City Council to ask questions and provide direction to staff, as necessary.

Draft templates of the reports are below. These reports will be provided for each funding bucket and included in the Financial Plan and Budget Supplement for budget recommendations and adoption:

10 Quarterly Reports to City Council and REOC:

F. Inclusion of CIP Engineering program staff time and certain other positions involved in project delivery in the capital, rather than the operating budget.

In addition to the funding bucket approach, staff also plans to recommend the inclusion of the CIP Engineering program supporting project delivery in the capital budget. The intent of doing this is to accurately reflect the cost of delivering the City’s CIP. Many other organizations achieve this by charging staff time to individual projects, based on timecoding. Staff is building a list of employees predominately in Public Works who play a significant role in capital project oversight and delivery and the percentage of time they spend doing this work. As a part of the 2023-25 Financial Plan, staff will recommend inclusion of this staff time in the capital budget, rather than the operating budget.

R ______
RESOLUTION NO. _____ (2022 SERIES)

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS OBISPO, CALIFORNIA, APPROVING AN AMENDMENT TO THE 2022- 2023 BUDGET ALLOCATION
WHEREAS, the City Council adopted Ordinance 1348 (1999 Series) establishing an Affordable Housing Fund (AHF) for the collection and distribution of in-lieu housing fees to promote affordable housing in San Luis Obispo at the sole discretion of the City Council; and
WHEREAS, in accordance with the San Luis Obispo City Charter Section 802, the City Manager submitted the 2019-2021 Financial Plan to Council for its review and consideration on June 4, 2019, approving the ongoing transfer of $40,000 from the AHF to General Fund to support the operating expenses of the San Luis Obispo County Housing Trust Fund; and
WHEREAS, the City Manager submitted the Fiscal Year 2022-23 Supplemental Budget to Council approving and appropriating the 2022-23 budget allocation including operating expenditures, debt service, and capital improvement plan budget (R-11332) on June 7, 2022; and
WHEREAS, the $40,000 was transferred from the Affordable housing fund to the General Fund in FY 2022-23; and
WHEREAS, the $40,000 was not allocated to the operating expenditure budget so the balance currently resides in the General Fund Undesignated Fund Balance; and WHEREAS, the voters approved the Gann Spending-Limitation Initiative on November 6, 1979 and Proposition 111 on June 5, 1990, which establish and define annual appropriation limits on state and local government agencies; and WHEREAS, regulations require that the governing body of each local agency establish its appropriations limit and annual factors by resolution.

WHEREAS, the required calculations to determine the City’s appropriations limit, and estimated appropriations subject to limitation for fiscal year 2022-23, were performed by the Department of Finance and approved by Council on June 7, 2022 (R-11332); and WHEREAS, in reviewing the calculations for the appropriation limit, staff found that the incorrect Consumer Price Index was applied; and
WHEREAS, the Finance Department re-calculated the City’s appropriations limit for 2022-23 and the City appropriated proceeds of taxes remain well below the appropriation limit; and

Resolution No. _____ (2022 Series) Page 2
R ______
NOW, THEREFORE, BE IT RESOLVED by the Council of the City of San Luis Obispo as follows:

SECTION 1. The 2022-23 budget is hereby amended to appropriate $40,000 of the City’s General Fund Undesignated balance into operating budget operating budget for the Housing Trust Fund.

SECTION 2. The City’s appropriation limit and annual adjustment factors for fiscal year 2022-23 are adopted as follows:

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
Appropriations Limit 2021-22 $79,470,558
Consumer Price Index (revised from 7.5%) 7.55%
Population Factor: County Population Growth 0.28%
Compounded Percentage Factor (multiplicative not additive) 1.025% Appropriations Limit 2022-23 (revised) $85,706,220

Item 6b
Department: Administration
Cost Center: 1010
For Agenda of: 11/15/2022
Placement: Business
Estimated Time: 30 minutes
FROM: Greg Hermann, Deputy City Manager
Prepared By: Beya Makekau, Diversity, Equity and Inclusion Manager SUBJECT: CONSIDER AMENDMENTS TO THE HUMAN RELATIONS COMMISSION

PURPOSE STATEMENT AND BYLAWS

RECOMMENDATION
As recommended by the Human Relations Commission (HRC), adopt a Draft Resolution entitled, “A Resolution of the Council of San Luis Obispo, California, amending the Advisory Body Handbook for revision to the HRC Purpose Statement and Bylaws” amending the purpose statement and a revision to the bylaws to change the residency requirement for up to two commissioner seats.

POLICY CONTEXT
The revision of the purpose statement for the HRC is in alignment with the Diversity, Equity and Inclusion (DEI) Taskforce recommendations accepted by City Council in January of 2021, which stated that the HRC be charged with embedding designating diversity, equity, and inclusion as a standing priority. Additionally, in alignment with the DEI Major City Goal to develop programs and policies to support diversity, equity, and inclusion initiatives, this resolution seeks to increase access to the HRC by revising the residency requirement for up to two commissioner seats. City Council approval is required for changes to the Advisory Body Handbook.

Background
Purpose Statement Revision
On August 3, 2022, at the regularly scheduled HRC meeting, the Commission voted unanimously to update the HRC purpose statement to align with the City’s DEI Major City goal and articulate more explicitly commission priorities and efforts (August 3, 2022 Meeting Minutes). This update is directly aligned with the DEI Taskforce recommendations, accepted by Council in January 2021, that recommended the HRC be charged with embedding DEI as a standing priority. Additionally, in June of 2022, the HRC transitioned out of the Community Development Department and into the Administration and IT Department with staff support from the DEI Manager and Deputy City Manager.

This purpose statement revision also comes in response to ensuring that the HRC and Office of DEI within the Administration and IT Department are in alignment with clarity of roles and responsibilities.

Item 6b
The revised purpose statement can be reviewed below:

The language of the revised purposed statement (e.g. “all members of the SLO City community”) would include traditional protected classes such as race, religion, sex, sexual orientation, national origin, age, or physical, mental, or economic status referenced in the current purposed statement.

Residency Requirement Revision
As accessibility and representation are key tenants of diversity, equity, and inclusion and given the revised purpose statement of the HRC to “ensure broad representation in commission initiatives” the HRC unanimously voted at its November 2nd meeting to recommend to the City Council to adopt a resolution amending the residency requirement for up to two commissioner positions. The resolution would revise the current membership requirement to read:

Current Purpose Statement Revised Purpose Statement
It is the purpose of the Human Relations
Commission (HRC) to advise the Council
in its actions to create an environment
within the City in which all persons can
enjoy equal rights and opportunities
regardless of race, religion, sex, sexual
orientation, national origin, age, or
physical, mental, or economic status.

The Human Relations Commission shall
make recommendations to the City
Council or the City Manager on how
these social concerns and human needs
can best be addressed.

It is the purpose of the Human Relations
Commission (HRC) to advise and make
recommendations to the City Council which
promote and advance inclusion, mutual
understanding, respect, and equitable
treatment to all members of the SLO City
community.

The HRC promotes and improves human
relations and equity by working with City
staff to:
 provide a forum where marginalized
members of our community can raise
issues as it relates to the Commission’s
focus areas, air complaints, or look for
resources within the City.
 encourage local non-profits to take new
and creative approaches to solve the
most prevalent human service needs in
our community.
 build community partnerships.
 ensure broad representation in
commission initiatives.

Item 6b
“The HRC has seven members. Five members must be residents and registered voters of the City. Up to two members may be residents and registered voters of San Luis Obispo County or Cal Poly campus with a significant connection to the City of San Luis Obispo, such as employment or academic study, to ensure equitable and inclusive representation on the Commission in alignment with the HRC purpose and City’s DEI goals”.

In addition, one of the DEI Task Force recommendations in their 2021 report was to “increase access and inclusion to civic learning and leadership opportunities for BIPOC (Black Indigenous People of Color) and LGBTQ+ communities” to create equitable pathways for diverse representation which could be supported by the revised residency requirement.

Currently, the Mass Transportation Committee allows for two positions to be exempt from the City residency requirement for a Cal Poly student and faculty member to ensure representation from those communities. In addition, the City’s recent DEI Task Force did not include a residency requirement for any task force members noting the lack of racial diversity amongst City residents and the necessary insight of diverse populations.

It is expected that any appointed Commissioner who does not live in the City will have a significant connection to the City, such as employment or academic study, which will be evaluated through the interview process by City Council liaisons and ultimately appointment by the City Council. Any appointed Commissioner who does not live in the City would also need to be a resident and registered voter of San Luis Obispo County or Cal Poly campus.

Previous Council or Advisory Body Action
The appointment of residents who do not live in the City has precedent on the following bodies: the Mass Transportation Committee (2 seats), and the DEI Task Force (residency requirement waived entirely).

Public Engagement
This item is on the agenda for the November 15, 2022, Council 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. This item was also discussed at the November 2, 2022 meeting which followed all required postings and notifications.

ENVIRONMENTAL REVIEW
The California Environmental Quality Act does not apply to recommended action in this report, because the action does not constitute a “project” under the CEQA Guideline Sec. 15378.

Item 6b

FISCAL IMPACT
Budgeted: No Budget Year: 2022-23
Funding Identified: N/A
Fiscal Analysis:

Funding
Sources
Total Budget
Available
Current
Funding
Request
Remaining
Balance
Annual
Ongoing
Cost
General Fund $0 $0 $0 $0
State
Federal
Fees
Other:

Total $0 $0 $0 $0
The update does not incur any cost. Staffing associated with HRC support is appropriated in the annual budget for the Office of DEI.

ALTERNATIVES

1. Council could decide not to adopt the resolution to amend the advisory body handbook. This is not recommended by staff as the resolution is in direct alignment with the DEI major City goal.

2. Council could decide to adopt a portion of the revisions.

3. Council could direct staff to explore alternative options for the revisions.

ATTACHMENTS
A - Draft Resolution amending the HRC Purpose Statement and Bylaws

R ______
RESOLUTION NO. _____ (2022 SERIES)

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS

OBISPO, CALIFORNIA, TO AMEND THE ADVISORY BODY

HANDBOOK FOR REVISION OF THE HRC PURPOSE AND BYLAWS
WHEREAS, in accordance with the Charter of the City of San Luis Obispo, the San Luis Obispo Municipal Code, and its own resolutions, the City Council of the City of San Luis Obispo appoints individuals to serve on its advisory bodies; and WHEREAS, those advisory bodies have proposed bylaws to aid them in conducting their meetings fairly, smoothly, efficiently and in accordance with law; and WHEREAS, pursuant to Charter section 1204 the City Council, following recommendations from its advisory bodies, is to review any proposed recommended changes to the bylaws of the advisory bodies and then adopt them; and WHEREAS, the City's advisory body of the Human Relations Commission has reviewed their bylaws and have recommended a revision of their bylaws to be in greater alignment with the City’s commitment to diversity, equity, and inclusion; and WHEREAS, City staff have also reviewed said bylaws and have made suggestions for their revision; and
WHEREAS, at its regular meeting of November 15, 2022, the City Council reviewed proposed changes to advisory body bylaws, as recommended by the Human Relations Commission and staff.

Resolution No. _____ (2022 Series) Page 2
R ______
NOW, THEREFORE, BE IT RESOLVED by the Council of the City of San Luis Obispo that the bylaws of the Human Relations Commission are hereby amended to read as set forth in the attached revised bylaws, attached and incorporated herein as Exhibit A. The bylaws of the Human Relations Commission are amended by this action.

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

Resolution No. _____ (2022 Series) Page 3
R ______

EXHIBIT A

HUMAN RELATIONS COMMISSION BYLAWS
Amended by Resolution No. XXXXX (2022 Series)
ARTICLE 1. PURPOSE
It is the purpose of the Human Relations Commission (HRC) to advise and make recommendations to the City Council which promote and advance inclusion, mutual understanding, respect, and equitable treatment to all members of the SLO City community.

The HRC promotes and improves human relations and equity by working with City staff to:
 Provide a forum where marginalized members of our community can raise issues as it relates to the Commissions focus areas, air complaints, or look for resources within the City.
 Encourage local non-profits to take new and creative approaches to solve the most prevalent human service needs in our community.
 Build community partnerships.
 Ensure broad representation in commission initiatives.

ARTICLE 2. MEMBERSHIP AND TERMS OF OFFICE
The HRC has seven members. 5 members must be residents and registered voters of the City. Up to two members may be residents and registered voters of San Luis Obispo County or Cal Poly campus with a significant connection to the City of San Luis Obispo; such as employment or academic study, to ensure equitable and inclusive representation on the Commission in alignment with the HRC purpose and City’s DEI goals.

While there are no special qualifications for applicants, the Council usually seeks individuals with experience, or a demonstrated interest in community social issues.

Commissioners shall be appointed by the City Council for terms of four years, commencing on April 1st. Commissioners shall serve at the pleasure of the City Council.

Any Commissioner may be reappointed, provided that no appointee shall serve more than two consecutive four-year terms.

Item 7a
Department: Utilities
Cost Center: 601 – Water Fund
For Agenda of: 11/15/2022
Placement: Study Session
Estimated Time: 90 Minutes
FROM: Aaron Floyd, Utilities Director
Prepared By: Mychal Boerman, Utilities Deputy Director - Water SUBJECT: STUDY SESSION: RECEIVE AN UPDATE ON THE RECYCLED WATER

MAXIMIZATION STUDY

RECOMMENDATION
Receive an update on the Recycled Water Maximization Study and provide input regarding the future expanded use of the City’s recycled water supplies.

POLICY CONTEXT
As part of the 2021-23 Financial Plan the City Council approved funding to study the maximization of the City’s use of its recycled water supplies. The 2022 Recycled Water Maximization Study provides opportunities for short-term and long-term expansion of recycled water supplies in alignment with the funding and direction provided by the City Council.

DISCUSSION
Background
Recycled water was first used in California in 1930 and is now widely utilized as an additional water supply by many medium and large water utilities. Historically, recycled water has been utilized for landscape irrigation to offset potable water use; however, recent changes to regulations and treatment technologies are providing a greater opportunity to utilize recycled water to augment drinking water supplies. As the City continues to mitigate climate change impacts and bolster its water security, staff have drafted the Recycled Water Maximization Study (2022 RWMS, Attachment A), which provides detailed information that will be critical in maximizing the use of the City’s recycled water supplies. The 2022 RWMS supplements this staff report by providing background information on the City’s recycled water program, explaining recent changes to recycled water availability, identifying short-term and long-term projects to maximize recycled water use, and identifying the legal risks, policy considerations, pricing strategies, and delivery constraints that must be considered if recycled water were to be delivered outside of City limits.

Item 7a
How to Use the 2022 RWMS
This staff report provides a summary of major discussion points of the 2022 RWMS. This staff report is intended to be supplemented by the 2022 RWMS, which contains additional detail related to long-term and short-term recycled water projects, as well as details about project costs, benefits, and challenges. Where possible, this staff report references the page numbers of the 2022 RWMS that contain additional detail about a specific topic of discussion.

Current City Use of Recycled Water
Traditionally, recycled water has been used in California for non-potable uses such as landscape irrigation, agricultural irrigation, environmental restoration, and construction use. Within the City, the established use of recycled water primarily goes toward landscape irrigation, utilization to supplement creek flow in San Luis Obispo Creek to support creek habitat, and for short term use at large construction sites for dust control, grading, and compaction. Recycled water is not used for agricultural irrigation within the City because agricultural operations have overlying groundwater rights which are less expensive than purchasing the City’s recycled water. The City’s recycled water supplies are not currently permitted to be utilized for groundwater recharge or surface water augmentation.

Expanded Uses of Recycled Water
Recent changes in regulations
and technological capabilities
have increased the potential
uses for recycled water, which
could substantially increase
recycled water use in the
future. In 2014 the State of
California adopted
groundwater recharge
regulations, permitting the use
of recycled water for recharge
of groundwater basins for use
later as drinking water supplies. In 2018 the State adopted regulations permitting recycled water to be utilized to augment surface water reservoirs for future extraction and potable use.

Both expanded uses, often referred to collectively as Indirect Potable Reuse (IPR), require additional treatment beyond what is required of recycled water that is utilized for irrigation use. This expanded treatment, known as advanced treatment, is designed to ensure that recycled water is safe for human consumption when paired with an environmental buffer such as a surface water reservoir or groundwater basin. The City does not currently produce advanced treated recycled water; however, many of the technologies integrated into recent upgrades at the Water Resource Recovery Facility (WRRF) leave the City well positioned to treat recycled water to this standard in the future.

Short Term RW Uses
as Non-Potable Water
(2022-2030)
• Expansion of InsideCity Irrigation Use
• In-City Agricultural
Pumping Offset
• Outside City Delivery
for Agricultural Use
Long Term RW Uses
as Potable Water
(2030+)
• Groundwater
Replenishment
• Surface Water
Augmentation

Item 7a
Long-Term Recycled Water Maximization Strategies
To date, the City is unable to completely utilize its recycled water supplies due to infrastructure limitations that restrict delivery, and due to the misalignment of periods when recycled water is produced versus when it is needed for irrigation use. In an effort to fully utilize its recycled water resources, the City’s 2017 Recycled Water Master Plan (RWMP) identified Indirect Potable Reuse as a feasible strategy to put recycled water to its highest and best use.

Following the adopted strategy to pursue potable reuse outlined in the 2017 RWMP, in 2022 the City contracted with Carrollo Engineering to identify the feasibility of implementing a groundwater recharge or surface water augmentation project. While currently in draft form, this plan examines the regulatory requirements and feasible construction timelines for implementation of indirect potable reuse projects. Importantly, this study documents that the City could have a project constructed and operational within eight years if it focused efforts on this expansion strategy. Knowing that there is a time period of at least eight years before the City can fully utilize recycled water as a drinking water supply, the 2022 RWMS identifies opportunities for short-term recycled water supply maximization until a potable reuse project is implemented in the City.

Short-Term Recycled Water Maximization Strategies
Until the City carries forward a project for groundwater recharge or surface water augmentation of recycled water, three primary opportunities exist for the short-term use of recycled water. These short-term uses vary in complexity, cost, and benefit to the City’s water rate payer. Details of each project type are documented below.

1. Expansion of In-City Recycled Water Irrigation (2022 RWMS, Page 16) This project would maintain the City’s existing short-term expansion plan, focusing efforts on increasing the use of recycled water for irrigation of local parks, business parks, and residential common areas. The City is already permitted for this type of use of recycled water and has staff dedicated to fulfilling these duties. The City has made investments in installing delivery pipelines throughout the southern side of the City, allowing expansion of recycled water to new sites to be more cost-effective than it was during the early years of the recycled water program. Many sites that could be costeffectively converted to use recycled water are identified within the 2017 RWMP.

2. Agricultural Offset within City’s Area of Groundwater Basin (2022 RWMS, Pages 16-17) While the SLO Valley Basin GSP largely focused on over-pumping in the Edna Valley Subarea of the groundwater basin, significant agricultural groundwater pumping is also conducted in the San Luis Subarea. From 2016-2019 agricultural pumping in the San Luis Subarea was approximately 1,370 acre-feet per year. Several agricultural operations in the subarea are adjacent to existing recycled water pipelines and can utilize recycled water with minimal infrastructure investment. This project would consider the delivery of recycled water to agricultural operations within the San Luis Valley Subarea in exchange for an equivalent reduction in groundwater pumping by these parties. This reduction in groundwater pumping by agricultural operations could free up water within the groundwater basin for expanded domestic use by the City.