San Luis Obispo City Council
February 21, 2023

City Council
AGENDA

Tuesday, February 21, 2023, 5:30 p.m.

City Hall, 990 Palm Street, San Luis Obispo
The City of San Luis Obispo has returned to in-person meetings. Zoom participation will not be supported. For those attending in-person, the Council Chamber will be at limited capacity and masks are strongly recommended. Council meetings may be viewed remotely on Channel 20 and the City's YouTube Channel: http://youtube.slo.city
INSTRUCTIONS FOR PUBLIC COMMENT:

Public Comment prior to the meeting (must be received 3 hours in advance of the meeting):

Mail - Delivered by the U.S. Postal Service. Address letters to the City Clerk's Office at 990 Palm Street, San Luis Obispo, California, 93401.

Email - Submit Public Comments via email to [email protected]. In the body of your email, please include the date of the meeting and the item number (if applicable). Emails will not be read aloud during the meeting.

Voicemail - Call (805) 781-7164 and leave a voicemail. Please state and spell your name, the agenda item number you are calling about, and leave your comment. Verbal comments must be limited to 3 minutes. Voicemails will not be played during the meeting. *All correspondence will be archived and distributed to councilmembers, however, submissions received after the deadline will not be processed until the following day.

Public Comment during the meeting:

Meetings have returned to an in-person format. To provide public comment during the meeting, you must be present in the Council Chambers.

Electronic Visual Aid Presentation. To conform with the City's Network Access and Use Policy, Chapter 1.3.8 of the Council Policies & Procedures Manual, members of the public who desire to utilize electronic visual aids to supplement their oral presentation are encouraged to provide display-ready material to the City Clerk by 12:00 p.m. on the day of the meeting. Contact the City Clerk's Office at [email protected] or (805) 781-7114.

Pages

1. CALL TO ORDER
Mayor Erica A. Stewart will call the Regular Meeting of the San Luis Obispo City Council to order.

2. PLEDGE OF ALLEGIANCE
Council Member Andy Pease will lead the Council in the Pledge of Allegiance.

3. PRESENTATIONS

3.a INTRODUCTION - DIVERSITY, EQUITY, AND INCLUSION

MANAGER, NESTOR VELOZ-PASSALACQUA
Deputy City Manager Greg Hermann will introduce the new Diversity, Equity, and Inclusion Manager, Nestor Veloz-Passalacqua.

3.b INTRODUCTION - DEPUTY CITY ATTORNEY, SADIE SYMENS
City Attorney Christine Dietrick will introduce the new Deputy City Attorney, Sadie Symens.

3.c TEEN DATING VIOLENCE ACTION MONTH PROCLAMATION
Mayor Stewart will present a proclamation declaring the month of February as "Teen Dating Violence Action Month".

3.d CHILD CARE STUDY UPDATE FROM FIRST 5 SAN LUIS OBISPO The City Council will receive an update from First 5 San Luis Obispo on the Child Care Study.

3.e CITY MANAGER REPORT
Receive a brief report from City Manager Derek Johnson.

4. PUBLIC COMMENT PERIOD FOR ITEMS NOT ON THE AGENDA
Not to exceed 15 minutes. The Council welcomes your input. State law does not allow the Council to discuss or take action on issues not on the agenda, except that members of the Council or staff may briefly respond to statements made or questions posed by persons exercising their public testimony rights (Gov. Code sec. 54954.2). Staff may be asked to follow up on such items.

5. CONSENT AGENDA
Not to exceed 15 minutes. Matters appearing on the Consent Calendar are expected to be non-controversial and will be acted upon at one time. A member of the public may request the Council to pull an item for discussion. Pulled items shall be heard at the close of the Consent Agenda unless a majority of the Council chooses another time. The public may comment on any and all items on the Consent Agenda within the three-minute time limit.

Recommendation:

To approve Consent Calendar Items 5a to 5i.

5.a WAIVE READING IN FULL OF ALL RESOLUTIONS AND

ORDINANCES
Recommendation:

Waive reading of all resolutions and ordinances as appropriate.

5.b MINUTES REVIEW - FEBRUARY 7, 2023 AND FEBRUARY 11, 2023

COUNCIL MINUTES
9 Recommendation:

Approve the following minutes of the City Council:
• February 7, 2023 - Regular Meeting
February 11, 2023 - Special Meeting for 2023 Goal Setting Workshop
•

5.c PARTIAL COMPLETION OF SUBDIVISION IMPROVEMENTS FOR
TRACT 3150, A MULTI-FAMILY CONDOMINIUM RESUBDIVISION OF LOTS 1 AND 2 OF TRACT 3096, SAN LUIS RANCH
19 Recommendation:

Adopt a Draft Resolution entitled, “A Resolution of the City Council of the City of San Luis Obispo, California, certifying the completed Private Subdivision Improvements for Tract 3150; releasing the Securities for the completed portions of Tract 3150; and authorizing the Director of Public Works to release the remaining Securities once all improvements are deemed complete” for Tract 3150, a multi-family condominium resubdivision of Lots 1 and 2 of Tract 3096, San Luis Ranch.

5.d PARTIAL ACCEPTANCE OF PUBLIC IMPROVEMENTS AND

CERTIFICATION OF COMPLETION OF REQUIRED PRIVATE
IMPROVEMENTS FOR TRACT 3089 AVILA RANCH PHASE 1
25 Recommendation:

Adopt a Draft Resolution entitled, “A Resolution of the City Council of the City of San Luis Obispo, California, accepting the completed Public Improvements for Tract 3089-1; certifying the completed Private Subdivision Improvements for Tract 3089-1; releasing the Securities for the completed portions of Tract 3089-1; and authorizing the Director of Public Works to release the remaining Securities once all Phase 1 Improvements are deemed complete” for the Avila Ranch Subdivision.

5.e PARTIAL ACCEPTANCE OF PUBLIC IMPROVEMENTS FOR TRACT 3063 RIGHETTI RANCH PHASE 3 IN THE ORCUTT AREA SPECIFIC

PLAN (OASP)
35 Recommendation:

Adopt a Draft Resolution entitled, “A Resolution of the City Council of the City of San Luis Obispo, California, accepting the Public Improvements and certifying completion of the Private Improvements for Tract 3063 Righetti Ranch Phase 3 (3987 Orcutt Road),” releasing the securities for the completed portions, and authorizing the Director of Public Works to accept the remaining improvements and to release the remaining securities once the improvements are deemed complete.

5.f AUTHORIZE THE FIRE DEPARTMENT TO APPLY FOR WILDFIRE PREVENTION ACTIVITIES GRANT FUNDING THROUGH CAL FIRE’S

CALIFORNIA CLIMATE INVESTMENT WILDFIRE PREVENTION

GRANT PROGRAM AND PROVIDE A LETTER OF SUPPORT TO SLO

COUNTY FIRE SAFE COUNCIL
47 Recommendation:

Authorize the Fire Department to apply for funding under Cal Fire’s CCI Wildfire Prevention Grant Program to conduct fire fuel reduction work, purchase specialized equipment, and complete a comprehensive update to the City’s Vegetation Management Plan; and

1. Adopt a Draft Resolution entitled, “A Resolution of the City Council of the City of San Luis Obispo, California, authorizing the Fire Department to apply for the California Climate Investment’s Wildfire Prevention Grants Program and carry out project, if awarded”; and

2. Authorize the Fire Department to provide a letter of support to the SLO County Fire Safe Council to seek a planning project under the Cal Fire CCI Wildfire Prevention Grant Program that benefits the city; and

3. Authorize the City Manager, or their designee, to execute the grant documents and approve the budget changes necessary to appropriate the grant amount upon notification that the grant has been awarded.

4. 5.g AUTHORIZE THE FIRE DEPARTMENT TO PURCHASE A NEW TYPE 3 WILDLAND FIRE ENGINE
53 Recommendation:

Approve the sole source purchase of a Type 3 Wildland fire Engine in the amount of $434,920.24

5.h ACCEPTANCE OF THE TRANSPORTATION DEVELOPMENT ACT
AND FEDERAL SINGLE AUDITS FOR FISCAL YEAR 2021-22
59 Recommendation:

Review and accept the Transportation Development Act and Federal Single Audits for Fiscal Year 2021-22.

5.i TERMINATION OF LOCAL EMERGENCY DECLARATION
REGARDING THE COVID-19 PANDEMIC
119
Recommendation:

Adopt a Draft Resolution entitled, "A Resolution of the City Council of the City of San Luis Obispo, California, terminating the Declaration of a Local Emergency for the COVID-19 Pandemic effective February 28, 2023," which is concurrent with the termination of the State of Emergency by the Governor on February 28, 2023.

6. PUBLIC HEARING AND BUSINESS ITEMS

6.a ADOPTION OF THE 2023 ACCESS AND PARKING MANAGEMENT
PLAN (Estimated Time: 120 minutes)
123
Recommendation:

Adopt a Draft Resolution entitled, “A Resolution of the City Council of the City of San Luis Obispo, California, adopting the Access and Parking Management Plan; and

1. Authorize the Public Works Director, or their designee, to approve the development and implementation of a ‘locals’ incentive parking program that provides a limited continuation of the first hour free or similar benefit in the parking structures.”

2. 7. LIAISON REPORTS AND COMMUNICATIONS
Not to exceed 15 minutes. Council Members report on conferences or other City activities. At this time, any Council Member or the City Manager may ask a question for clarification, make an announcement, or report briefly on their activities. In addition, subject to Council Policies and Procedures, they may provide a reference to staff or other resources for factual information, request staff to report back to the Council at a subsequent meeting concerning any matter or take action to direct staff to place a matter of business on a future agenda. (Gov. Code Sec. 54954.2)

8. ADJOURNMENT
The City Council will hold a Special Closed Session Meeting on Thursday, March 2, 2023 at 3:00 p.m. at City Hall, 990 Palm Street, San Luis Obispo. The next Regular Meeting of the City Council will be held on March 7, 2023 at 5:30 p.m. in the Council Chambers at City Hall, 990 Palm Street, San Luis Obispo.

LISTENING ASSISTIVE DEVICES for the hearing impaired - see the Clerk.

The City of San Luis Obispo wishes to make all of its public meetings accessible to the public. Upon request, this agenda will be made available in appropriate alternative formats to persons with disabilities. Any person with a disability who requires a modification or accommodation in order to participate in a meeting should direct such request to the City Clerk’s Office at (805) 781-7114 at least 48 hours before the meeting, if possible. Telecommunications Device for the Deaf (805) 781-7410.

City Council meetings are televised live on Charter Channel 20 and the City's YouTube Chanel: http://youtube.slo.city. Agenda related writings or documents provided to the City Council are available for public inspection in the City Clerk’s Office located at 990 Palm Street, San Luis Obispo, California during normal business hours, and on the City’s website
https://www.slocity.org/government/mayor-and-city-council/agendas-andminutes. Persons with questions concerning any agenda item may call the City Clerk’s Office at (805) 781-7114.

1 Council Minutes
February 7, 2023, 4:15 p.m.

Council Chambers, 990 Palm Street, San Luis Obispo
Council Members

Present:

Council Member Emily Francis, Council Member Andy Pease, Council Member Michelle Shoresman, Vice Mayor Jan Marx, Mayor Erica A. Stewart
City Staff Present: Derek Johnson, City Manager, Christine Dietrick, City Attorney, Teresa Purrington, City Clerk
_____________________________________________________________________

1. CLOSED SESSION: STARTS AT 4:15 PM

1.a CALL TO ORDER

1.b PUBLIC COMMENT FOR CLOSED SESSION ITEMS ONLY
Public Comments:

None
---End of Public Comment---

1.c CONFERENCE WITH LEGAL COUNSEL - EXISTING LITIGATION City Attorney Christine Dietrick indicated that the Council met in closed session and no reportable action was given.

1.d ADJOURNMENT

2. CALL TO ORDER
A Regular Meeting of the San Luis Obispo City Council was called to order on February 7, 2023 at 5:45 p.m. in the Council Chambers, 990 Palm Street, San Luis Obispo, by Mayor Stewart.

3. PLEDGE OF ALLEGIANCE
Vice Mayor Jan Marx led the Council in the Pledge of Allegiance.

2 4. PRESENTATIONS

4.a WATER RESOURCE RECOVERY FACILITY PROJECT UPDATE
Utilities Director Aaron Floyd and Utilities Deputy Director of Engineering & Planning Miguel Barcenas provided a brief update on the Water Resource Recovery Facility (WRRF) Project.

4.b CITY MANAGER REPORT
City Manager Derek Johnson provided a report on upcoming projects.

5. PUBLIC COMMENT PERIOD FOR ITEMS NOT ON THE AGENDA
Public Comment:

Heather Kreiser
Gretchen Ross
Debra Franklin
Patrick Lynch
Jack Franklin
Ethan Gutterman
--End of Public Comment--

6. CONSENT AGENDA
Vice Mayor Marx requested that Item 6e be pulled from the Consent Agenda.

Motion By Mayor Stewart
Second By Vice Mayor Marx
To approve Consent Calendar Items 6a to 6d.

Ayes (5): Council Member Francis, Council Member Pease, Council Member Shoresman, Vice Mayor Marx, and Mayor Stewart
CARRIED (5 to 0)

6.a WAIVE READING IN FULL OF ALL RESOLUTIONS AND ORDINANCES Waive reading of all resolutions and ordinances as appropriate.

6.b MINUTES REVIEW - JANUARY 12, 2023, JANUARY 17, 2023, AND JANUARY 26, 2023 COUNCIL MINUTES
Approve the following minutes of the City Council:
 January 12, 2023 - Adjourned Meeting
 January 17, 2023 - Regular Meeting
 January 26, 2023 - Special Meeting Community Forum

3 6.c AUTHORIZATION TO ADVERTISE SAN LUIS OBISPO CREEK BANK REPAIR PROJECT, SPECIFICATION NO. 1000035

1. Approve the project plans and specifications for the San Luis Obispo Creek Bank Repair Project, Specification No. 1000035; and

2. Authorize staff to advertise for bids; and

3. Authorize an appropriation of $1,500,000 from the Capital Projects Reserve Fund to the project account (1000035); and

4. Authorize the City Manager to award the Construction Contract for the bid total if the lowest responsible bid is within the Engineer’s Estimate of $1,140,000; and

5. Authorize the City Engineer to approve Contract Change Orders up to the available project budget; and

6. Adopt Resolution No. 11388 (2023 Series) entitled, “A Resolution of the City Council of the City of San Luis Obispo, California, approving the Mitigated Negative Declaration for the San Luis Creek Bank Repair Project” adopting the final Initial Study – Mitigated Negative Declaration (IS-MND); and

7. Adopt Resolution No. 11389 (2023 Series) entitled, “A Resolution of City Council of the City of San Luis Obispo, California, authorizing use of Capital Projects Reserve Fund to support the San Luis Obispo Creek Bank Repair Project, Specification No. 1000035.”

6.d AUTHORIZATION TO ADVERTISE NORTH BROAD STREET
NEIGHBORHOOD PARK PROJECT, SPECIFICATION NO. 91683

1. Approve the project plans and special provisions for the North Broad Street Neighborhood Park, Specification Number 91683; and

2. Authorize staff to advertise for bids; and

3. Authorize the City Manager to award the construction contract for the bid total if the lowest responsible bid is within the engineer’s estimate of $775,000; and

4. Authorize the City Engineer to approve Contract Change Orders up to the available project budget; and

5. Authorize an appropriation of $200,000 from the Capital Projects Reserve Fund to the project account (91683); and

6. Authorize the Finance Director to return unspent Capital Reserve funding to the Capital Projects Reserve Fund balance after project completion;

7. Adopt Resolution No. 11390 (2023 Series) entitled, “A Resolution of City Council of the City of San Luis Obispo, California, authorizing use of Capital Projects Reserve Fund to support the North Broad Street Neighborhood Park, Specification Number 91683.”

4 6.e ROADMAP FOR MAXIMIZATION OF RECYCLED WATER
Utilities Director Aaron Floyd responded to Council questions.

Public Comments:

Bob Schiebelhut
---End of Public Comment---
Vice Mayor Marx indicated, for the record, that she is not in support of the project and her ‘Yes’ vote was just to receive and file the report.

Motion By Council Member Shoresman
Second By Council Member Francis
Receive and file an update related to the City’s timing and strategy for maximization of recycled water.

Ayes (5): Council Member Francis, Council Member Pease, Council Member Shoresman, Vice Mayor Marx, and Mayor Stewart
CARRIED (5 to 0)

7. PUBLIC HEARING AND BUSINESS ITEMS

7.a FISCAL YEAR 2022-23 MID-YEAR BUDGET REVIEW
(Estimated Time: 90 minutes)
Finance Director Emily Jackson and Budget Analyst Natalie Harnett provided an in-depth staff report and responded to Council questions.

Public Comments:

None
---End of Public Comment---
Motion By Vice Mayor Marx
Second By Council Member Francis

1. Receive the Mid-Year Budget report based on revised projections for all major funds at the mid-point of the 2022-23 fiscal year; and

2. Adopt Resolution No. 11391 (2023 Series) entitled, “A Resolution of the Council of the City of San Luis Obispo, California, approving amendments to the adopted 2022-23 Budget Appropriations” and approve the one-time allocations as stated in the Mid-year Budget Report with the following change:

SECTION 4. The City will make a $2,437,211 additional
discretionary payment to CalPERS.

5 3. Provide direction on whether the one-time budget allocations from the 2021-23 Financial Plan listed in Attachment A – Appendix B should be considered as ongoing expense and included in the base budget for 2023-25.

Council continued discussion on Appendix B to a date certain, the February 11, 2023 Special Meeting.

Ayes (5): Council Member Francis, Council Member Pease, Council Member Shoresman, Vice Mayor Marx, and Mayor Stewart
CARRIED (5 to 0)

8. STUDY SESSION

8.a STUDY SESSION: HOMELESSNESS RESPONSE STRATEGIC PLAN (Estimated Time: 90 minutes)
Community Development Director Michael Codron, Acting Homelessness Response Manager Daisy Wiberg, and Housing Policy & Programs Manager Teresa McClish provided an in-depth staff report and responded to Council questions.

Public Comments:

Jack Layhe
Bettina Swigger
Ethan Gutterman
---End of Public Comment---
ACTION: The Council provided direction on the City’s Draft Strategic Plan Framework for the City’s first Homelessness Response Strategic Plan.

9. LIAISON REPORTS AND COMMUNICATIONS
Council Member Francis, Council Member Shoresman, and Mayor Stewart attended New Mayor and Council Member conference paid for by the City.

Vice Mayor Marx indicated the IWMA is holding a tour of the Cold Mountain Canyon landfill. She also attended a tour of the pallet housing in Grover Beach.

Council Member Pease participated in the Cal Cities quarterly Environmental Quality Committee meeting and the Water Resources and Quality Committee meeting last week.

Mayor Stewart will attend the Cal Cities African American Caucus meeting on Monday.

6 10. ADJOURNMENT
The meeting was adjourned at 9:41 p.m. The City Council will hold a Special Meeting on Saturday, February 11, 2023 at 8:30 a.m. in the Council Chambers at City Hall. The purpose of this Special Meeting is to hold a Goal Setting Workshop for development of Major City Goals for the 2023-25 Financial Plan.

The City Council will hold a Special Closed Session Meeting on Wednesday, February 15, 2023 at 5:30 p.m. at City Hall, 990 Palm Street, San Luis Obispo.

The next Regular Meeting of the City Council will be held on February 21, 2023 at 5:30 p.m. in the Council Chambers at City Hall, 990 Palm Street, San Luis Obispo.

APPROVED BY COUNCIL: XX/XX/2023

1 Council Minutes
February 11, 2023, 9:00 a.m.

Council Chambers, 990 Palm Street, San Luis Obispo
Council Members

Present:

Council Member Emily Francis, Council Member Andy Pease, Council Member Michelle Shoresman, Vice Mayor Jan Marx, Mayor Erica A. Stewart
City Staff Present: Derek Johnson, City Manager, Christine Dietrick, City Attorney, Teresa Purrington, City Clerk
_____________________________________________________________________

1. CALL TO ORDER
A Special Meeting of the San Luis Obispo City Council was called to order on February 11, 2023 at 9:00 a.m. in the Council Chambers at City Hall, 990 Palm Street, San Luis Obispo, by Mayor Stewart.

2. PLEDGE OF ALLEGIANCE
Council Member Shoresman led the Council in the Pledge of Allegiance.

3. BUSINESS ITEM

3.a 2023-25 FINANCIAL PLAN PROCESS: COUNCIL GOAL SETTING

WORKSHOP
Public Comment
Julien
Ethan Gutterman
Lea Brooks
--End of Public Comment--
Motion By Council Member Pease
Second By Council Member Shoresman
To approve the following Major City Goals and related desired outcomes for the 2023- 25 Financial Plan:

2 Economic Resiliency, Cultural Vitality & Fiscal Sustainability In collaboration with local partners, implement initiatives that reinforce a thriving and sustainable local economy, support a diverse, inclusive, and vibrant community, preserve arts and culture, and ensure fiscally responsible and sustainable city operations.
 Continue relevant current Major City Goal tasks and plans.  In addition:
o More proactively look for ways to provide childcare through partnerships between Parks & Recreation, Cal Poly, and San Luis Obispo Coastal Unified School District. Collaborate with community organizations to improve childcare options for families.
o Support preservation of our historic resources and City-owned Adobes. Update the Historic Resources Inventory.
o Look into strategies to reduce vacancy in downtown.
o Stay tuned into public banking discussions.
o Conduct study sessions on design-build charter amendment and discussion of Community Workforce Agreements.

Diversity, Equity, Inclusion (DEI)
Further our commitment to making San Luis Obispo a welcoming and inclusive City for all by continuing to incorporate diversity, equity, and inclusion into all programs and policies and advancing the recommendations of the DEI Task Force.
 Continue relevant current Major City Goal tasks and plans.  In addition:
o Multicultural Center: Explore and develop options for shared programming and facilities with Cal Poly, Cuesta, downtown vacancies (e.g., pop-ups), and multicultural organizations. o Continue the creation of a Broadband Strategic Plan. Ensure broadband access is equitable and pursue funding to fill gaps.

3 Housing & Homelessness
Support the expansion of housing options for all, and continue to facilitate the production of housing, including the necessary supporting infrastructure, with an emphasis on affordable and workforce housing as well as accessibly connected development. Collaborate with local non-profit partners, nongovernmental agencies, the county, the state, and federal governments to advocate for increased funding and implementation of comprehensive and effective strategies to prevent and reduce homelessness and chronic homelessness.
 Continue relevant current Major City Goal tasks and plans.  In addition:
o Focus on plans for areas where we would like to see more infill and active transportation infrastructure (e.g., Upper Monterey). o Conduct a study session to explore the viability of protections for renters.
o Leverage additional funding from other partner agencies for program and service expansion (e.g. the Mobile Crisis Unit). o Conduct a study session on needs across the housing spectrum including pallet shelters.
o Partner with other agencies for more emergency and
transitional housing through the HouseKeys Program.

Climate Action, Open Space, and Sustainable Transportation Proactively address the climate crisis and increase resiliency through the implementation of the Climate Action Plan. Use resources to reduce greenhouse gas emissions, and reach carbon neutrality by 2035, with a focus on the preservation and enhancement of convenient and equitable alternative and sustainable transportation, preservation of open space, and equitable access to parks and open space.
 Continue relevant current Major City Goal tasks and plans.  In addition:
o Continue to work with community groups on continuous planting toward the goal of 10,000 trees by the year 2035.

4 o Conduct a study session to consider options for funding creek maintenance and flood preparedness.

Directed Staff to return to the City Council in April 2023 with recommended preliminary work programs and Capital Improvement Plan (Strategic Budget Direction) and related budget appropriations required to operate core services of the various departments and advance Major City Goals.

3.b FISCAL YEAR 2022-23 MID-YEAR BUDGET REVIEW - CONTINUED FROM THE FEBRUARY 7, 2023 CITY COUNCIL MEETING
Motion By Council Member Pease
Second By Vice Mayor Marx
Provided direction on whether the one-time budget allocations from the 2021-23 Financial Plan listed in Attachment A – Appendix B should be considered as ongoing expenses and included in the base budget for 2023-25.

Ayes (5): Council Member Francis, Council Member Pease, Council Member Shoresman, Vice Mayor Marx, and Mayor Stewart
CARRIED (5 to 0)

4. ADJOURNMENT
The meeting was adjourned at 3:13 p.m. The City Council will hold a Special Closed Session Meeting on Wednesday, February 15, 2023 at 5:30 p.m. at City Hall, 990 Palm Street, San Luis Obispo.

The next Regular Meeting of the City Council will be held on February 21, 2023 at 5:30 p.m. in the Council Chambers at City Hall, 990 Palm Street, San Luis Obispo.

APPROVED BY COUNCIL: XX/XX/2023

Item 5c
Department: Community Development
Cost Center: 4003
For Agenda of: 2/21/2023
Placement: Consent
Estimated Time: N/A
FROM: Michael Codron, Community Development Director
Prepared By: Nate Stong, Senior Civil Engineer
SUBJECT: PARTIAL COMPLETION OF SUBDIVISION IMPROVEMENTS FOR TRACT 3150, A MULTI-FAMILY CONDOMINIUM RESUBDIVISION OF LOTS 1 AND 2 OF TRACT 3096, SAN LUIS RANCH

RECOMMENDATION
Adopt a Draft Resolution entitled, “A Resolution of the City Council of the City of San Luis Obispo, California, certifying the completed Private Subdivision Improvements for Tract 3150; releasing the Securities for the completed portions of Tract 3150; and authorizing the Director of Public Works to release the remaining Securities once all improvements are deemed complete” for Tract 3150, a multi-family condominium resubdivision of Lots 1 and 2 of Tract 3096, San Luis Ranch.

POLICY CONTEXT
The City Council accepts public improvements, certifies completion of private subdivision improvements, and releases securities in accordance with Section 66499.7 of the Subdivision Map Act and City Subdivision Regulations Section 16.20.210.

DISCUSSION
Background
Tract 3150, a resubdivision of Lots 1 and 2 of Tract 3096 (San Luis Ranch), includes private improvements, which are either now complete or nearing completion. Tract 3150 is illustrated on Figure 1 and consists of the creation of 12 lots consisting of:
 7 multi-family residential lots with a total of 296 condominium units  1 private recreation lot
 1 open space conservation lot
 2 private drainage, water quality and street tree easement lots  1 private and public vehicular, pedestrian, bicycle and emergency access lot

Item 5c
Completion of Required Subdivision Improvements
Work has been completed for the majority of the required subdivision improvements. In general, the improvements consist of private streets, curb, gutter, sidewalks, streetlights, sewer main and service laterals, reclaimed water main, storm drain and stormwater quality improvements, parkways and landscaping. The water system within Tract 3150 is private, including water mains, fire hydrants and service lines, with the exception of the water meters which will be owned and operated by the City.

Figure 1: Vicinity Map
Release of Security
As presented in the proposed resolution, the requested action before the City Council is to certify completion of a portion of the required private improvements and authorize a commensurate reduction of the securities for the work that is completed. The remaining securities will not be released until the subdivision improvements are complete and authorized by the Public Works Director.

Item 5c
Previous Council or Advisory Body Action
The City Council approved the San Luis Ranch Specific Plan (SLRSP) and certified the Final Environmental Impact Report (FEIR) for the SLRSP on July 18, 2017, and certified a Final Supplemental EIR (FSEIR) for the SLRSP on July 17, 2018.

The City Council approved a Development Agreement by Ordinance 1649 (2018 Series) adopted on August 21, 2018.

The SLRSP area was annexed into the City of San Luis Obispo by Local Agency Formation Commission (LAFCO) Resolution No. 2018-08 on October 18, 2018.

Vesting Tentative Tract Map 3150 was approved by City Council on April 7, 2020, by Resolution No. 11110 (2020 Series).

The final map for Tract 3150 was approved by City Council on October 6, 2020, by Resolution No. 11167 (2020 Series).

Public Engagement
Public Engagement was completed with the approval of the Tentative Map and the development of the San Luis Ranch Specific Plan.

CONCURRENCE
The Public Works Director and the Utilities Director concur with the recommended action.

ENVIRONMENTAL REVIEW
There is no environmental review associated with the acceptance of these improvements.

The City Council approved the San Luis Ranch Specific Plan (SLRSP) and certified the Final Environmental Impact Report (FEIR) for the SLRSP on July 18, 2017, and certified a Final Supplemental EIR (FSEIR) for the SLRSP on July 17, 2018. Subsequent environmental review was performed in support of approval of the Development Agreement by Ordinance 1649 (2018 Series) adopted on August 21, 2018, and for annexation of the SLRSP area to the City of San Luis Obispo by Local Agency Formation Commission (LAFCO) Resolution No. 2018-08 on October 18, 2018.

FISCAL IMPACT
Budgeted: No Budget Year: N/A
Funding Identified: No

Item 5c
Fiscal Analysis:

Funding
Sources
Total Budget
Available
Current
Funding
Request
Remaining
Balance
Annual
Ongoing
Cost
General Fund N/A $ $ $
State
Federal
Fees
Other:

Total $ $ $ $
With the exception of the water meters, the subdivision improvements are not public facilities and the responsibility for ongoing maintenance will be the responsibility of the subdivider or other private entity tasked with maintenance such as a Homeowners Association. Maintenance of the water meters will be borne by the water enterprise fund.

There is no other fiscal impact as a result of certifying completion of the private subdivision improvements.

ALTERNATIVES
Council could decide to continue consideration of the request. Ultimately however, acceptance of the improvements is required in accordance with the Development Agreement, Tentative and Final Map approvals, and Department of Real Estate process assumptions. Limited alternatives exist and only regarding the timing of acceptance of these improvements.

ATTACHMENTS
A - Draft Resolution certifying the completion of a portion of required subdivision improvements for Tract 3150

R ______
RESOLUTION NO. _____ (2023 SERIES)

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

OBISPO, CALIFORNIA, CERTIFYING THE COMPLETED PRIVATE
SUBDIVISION IMPROVEMENTS FOR TRACT 3150; RELEASING THE
SECURITIES FOR THE COMPLETED PORTIONS OF TRACT 3150; AND

AUTHORIZING THE DIRECTOR OF PUBLIC WORKS TO RELEASE THE

REMAINING SECURITIES ONCE ALL IMPROVEMENTS ARE DEEMED

COMPLETE
WHEREAS, the City Council made certain findings concerning the vesting tentative map for Tract 3150, as prescribed in Resolution 11110 (2020 Series); and WHEREAS, the City Council approved a supplemental Final Environmental Impact Report (FEIR) for Tract 3096 by Resolution 10927 (2018 Series); and WHEREAS, the City Council approved the final map for Tract 3150 per Resolution 11167 (2020 Series); and
WHEREAS, the subdivider has satisfactorily completed a portion of the private improvements in accordance with City standards, specifications, and the approved plans; and has requested the City certify completion of these private improvements; and WHEREAS, the subdivider has on file the appropriate securities to guarantee the completion of the remaining subdivision improvements as shown on the approved plans.

NOW, THEREFORE, BE IT RESOLVED by the Council of the City of San Luis Obispo as follows:

SECTION 1. The City Council hereby certifies completion of a portion of the required private subdivision improvements within the Tract 3150 boundary.

SECTION 2. The Faithful Performance securities guaranteeing completion of the on-site improvements may be reduced with the approval of the Director of Public Works upon submittal of progress record drawings for the completed improvements.

SECTION 3. The corresponding Labor & Materials security may be released after 90 days from the date of certification of the improvements, or 60 days from the date of recordation of a Notice of Completion, in accordance with Section 66499.7(h) of the California Government Code.

SECTION 4. The Director of Public Works is hereby authorized to certify the remaining improvements and to release the remaining securities on behalf of the City Council once the work is completed to the City’s satisfaction.

Resolution No. _____ (2023 Series) Page 2
R ______
SECTION 5. The security guaranteeing the workmanship and materials may be released by the Director of Public Works upon the successful completion of the 12-month warranty time period from the date of certification of the improvements.

Upon motion of Council Member ___________, seconded by Council Member ___________, and on the following roll call vote:

AYES:

NOES:

ABSENT:

The foregoing resolution was adopted this _____ day of _______________ 2023. ___________________________
Mayor Erica A. Stewart
ATTEST:
______________________
Teresa Purrington
City Clerk
APPROVED AS TO FORM:
______________________
J. Christine Dietrick
City Attorney
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of San Luis Obispo, California, on ______________________. ___________________________
Teresa Purrington
City Clerk

Item 5d
Department: Community Development
Cost Center: 4003
For Agenda of: 2/21/2023
Placement: Consent
Estimated Time: N/A
FROM: Michael Codron, Community Development Director
Prepared By: Nate Stong, Senior Civil Engineer
SUBJECT: PARTIAL ACCEPTANCE OF PUBLIC IMPROVEMENTS AND

CERTIFICATION OF COMPLETION OF REQUIRED PRIVATE
IMPROVEMENTS FOR TRACT 3089 AVILA RANCH PHASE 1

RECOMMENDATION
Adopt a Draft Resolution entitled, “A Resolution of the City Council of the City of San Luis Obispo, California, accepting the completed Public Improvements for Tract 3089-1; certifying the completed Private Subdivision Improvements for Tract 3089-1; releasing the Securities for the completed portions of Tract 3089-1; and authorizing the Director of Public Works to release the remaining Securities once all Phase 1 Improvements are deemed complete” for the Avila Ranch Subdivision.

POLICY CONTEXT
The City Council accepts public improvements, certifies completion of private improvements, and releases securities in accordance with the Subdivision Map Act Section 66499.7 and City Subdivision Regulations Section 16.20.210.

DISCUSSION
Tract 3089 Avila Ranch is located at 175 Venture Drive. Figure 1 presents a vicinity map with the area of completed improvements highlighted in yellow. Note that a portion of Phase 3, including Earthwood Lane, was constructed concurrently with Phase 1.

Background
The Tract 3089 Phase 1 map created a total of 192 lots consisting of:
 179 single-family residential units (Lots 1 to 28, Lots 31 to 86, Lots 88 to 182). These are all the single-family residential units that were included in the Phase 1 tentative map.  Three out-of-phase lots for multi-family (Lots 185, 186, and 188), These lots were originally planned to be created and developed in Phase 3.  Four public park lots (Lots 30, 87, 183, 189)
 Two lots for public open space (Lot A and Lot 184)
 Two lots for public facilities (Lot 29 for sewer lift station & Lot 187 for interim fire station)  Two lots for future phases of the subdivision (Lots 190 and 191)

Item 5d
Figure 1: Phasing Map
Partial Acceptance of Public Improvements
Work has been completed for the majority of the required Phase 1 public in-tract and offsite improvements. In general, the improvements consist of street construction, curb, gutter, sidewalks, Class 1 multi-use paths, pedestrian paseos, streetlights, water main and sewer main extensions, fire hydrants, reclaimed water main, storm drain and stormwater quality improvements, parkways and landscaping. Earthwood Lane has been constructed providing a connection between Suburban Drive and Vachell Lane. Venture Drive has been extended to intersect Earthwood Lane at a new roundabout.

Off-Site Transportation Improvements
The public improvements include multiple off-site transportation improvements to mitigate for the increase in traffic generated by the development as required by the project conditions of approval, mitigation measures (MM), and the Development Agreement. The off-site improvements completed with Phase 1 include:

1. Extension of Earthwood Lane to Suburban Road [Condition #101]

2. Suburban Road Improvements, S. Higuera to Earthwood [ Condition #102]

3. Sidewalk on portions of Vachell Lane [Condition #124]

4. Intersection improvements at South Street/Higuera Street [Conditions #112]

5. Intersection improvements at Tank Farm Road / S. Higuera Street [Condition #114/MM TRANS-7b]

Item 5d
Off-Site Improvements in the County
The following offsite improvements located outside the City Limits were constructed under a County encroachment permit and will be maintained by the County:

1. Extension of Buckley Road from Vachell Lane to South Higuera Street and installation of a traffic signal at the newly created intersection [Condition #100]

2. Installation of Class II bicycle lanes along Vachell Lane between Buckley Road and South Higuera Street [Condition #105]
Private Subdivision Improvements
Tract 3089-1 includes certain improvements to be privately maintained, including the private common driveways and the underlying utilities and storm drain improvements.

These private driveways are connected to the public street system and serve anywhere from four to eight single family dwellings.

Authorizing the Director of Public Works to Accept Remaining Improvements and Release Remaining Securities
The Draft Resolution (Attachment A) includes acceptance of the completed portions of these improvements with a commensurate reduction of the securities for the work that is completed, and authorizes the Public Works Director to accept the remaining public improvements once they are deemed complete and release the remaining securities.

Previous Council or Advisory Body Action
A vesting tentative tract map for Tract 3089 was approved by the City Council on September 19, 2017, by Resolution No. 10832 (2017 Series).

The Development Agreement was adopted by the City Council on October 3, 2017, by Ordinance No. 1639 (2017 Series).

Avila Ranch Community Facilities District (CFD) No. 2017-1 was created by Ordinance No. 1642 (2017 Series), which levies a special tax within the CFD providing a funding source for maintenance and operation of facilities within the District.

The final map for Tract 3089 Phase 1 was approved by City Council on December 4, 2018, by Resolution No. 10968 (2018 Series).

Public Engagement
Public Engagement was completed with the approval of the Tentative Map and the development of the Avila Ranch Development Plan.

CONCURRENCE
The Public Works Director and the Utilities Director concur with the recommended action.

Item 5d

ENVIRONMENTAL REVIEW
There is no environmental review associated with the acceptance of these improvements.

Prior Environmental review consisted of the review of the Avila Ranch Development Plan and its Final Environmental Impact Report in September 2017.

FISCAL IMPACT
Budgeted: Yes Budget Year: Annually beginning 2022-23
Funding Identified: Yes
Fiscal Analysis:

Funding
Sources
Current FY
Cost
Current Budget Remaining
Balance
Future
Annual
Ongoing
Cost (Offset
by CFD
Revenue)
General Fund
State
Federal
Fees
Other: CFD $160,900 $160,900 $1.7 million
Total $160,900 $160,900 $0 $1.7 million
Community Facilities District (CFD)
The CFD for Avila Ranch was established to fund both services and infrastructure maintenance. The CFD closes the gap between anticipated general fund revenue generated by the development and projected costs. Avila Ranch was originally annexed into the City as commercial land. The City’s Master Tax Exchange Agreement with the County provides the City with 100% of the sales generated on commercial land, but none off the property tax. With the 2014 General Plan Update, Avila Ranch was rezoned for residential development, but without any property tax to cover the costs of services and maintenance. As a result, a Community Facilities District was established to cover the ongoing costs of the development, such as police and fire, and to maintain the public infrastructure including parks, streets, sidewalks, parkways, open space, and storm drainage systems. Maintenance of water and sewer infrastructure in Tract 3089 will be funded the same as the rest of the citywide system via the enterprise program. The funds for the CFD will be collected by the County with the regular property tax assessments and then transferred to the City. Fiscal Year 2022-23 was the first fiscal year that the City budgeted for and collected taxes under the CFD, totaling $160,900.

Item 5d
The CFD structure is designed to be revenue neutral to the City to fund the cost of services and infrastructure maintenance in the Avila Ranch neighborhood. The CFD is analyzed each year and increased incrementally as more of the CFD-maintained services and improvements come online. Each year, the City levies a tax to parcels in the CFD for projected costs. An analysis of the annual costs to provide the services and infrastructure maintenance to the Avila Ranch development, including administration, is estimated to be $1.7 million at buildout. The CFD is estimated to generate $1.7 million in annual revenue at buildout, therefore no fiscal impact is anticipated. This equates to about $200 per month per unit but alleviates the need for a homeowner’s association. This cost has previously been determined to be within the City’s financial plan policy limits for total property tax burden.

The CFD1 provides for the following authorized services:

1. Maintenance and lighting of parks, parkways, streets, roads and open space.

2. Flood and storm protection services, including storm drainage systems.

3. Police, fire protection and suppression services; ambulance and paramedic services.

4. Maintenance and operation of any real property or other tangible property with an estimated useful life of five or more years owned by the local agency pursuant to an agreement entered into under Section 53316.2.

5. Maintenance and operation of a new sewer lift station located on Lot

29. County/City Maintenance of Streets
Tract 3089 was annexed into the City with the Airport Area Annexation in 2008 except for the portions of Buckley Road and Vachell Lane fronting Tract 3089 remain in the County.

The recently constructed Buckley Road extension to South Higuera is also located in the County. County Development Review personnel have indicated that the County will continue to maintain the Vachell and Buckley Street frontages, including the widened portions.

The City and County have continued in discussions regarding a proposed maintenance agreement related to the interface between the subdivision improvements that are located within the tract boundary and those that are located in the County. The agreement will be developed in conjunction with the improvements required for future map/development phases.

1 Ordinance No. 1642 (2017 Series) created the Avila Ranch Community Facilities District (CFD) No. 2017- 1 and levied a special tax against non-exempt real property within the CFD.

Item 5d

ALTERNATIVES
Council could decide to continue consideration of the request. Ultimately, however, acceptance of the public improvements is required in accordance with the Development Agreement, Tentative and Final Map approvals, and Department of Real Estate process assumptions. Limited alternatives exist and only regarding the timing of acceptance of these improvements.

ATTACHMENTS
A - Draft Resolution accepting the completed public improvements, certifying the private subdivision improvements, and releasing the securities for completed portions of Tract 3089-1

R ______
RESOLUTION NO. _____ (2023 SERIES)

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

OBISPO, CALIFORNIA, ACCEPTING THE COMPLETED PUBLIC
IMPROVEMENTS FOR TRACT 3089-1; CERTIFYING THE COMPLETED PRIVATE SUBDIVISION IMPROVEMENTS FOR TRACT 3089-1;

RELEASING THE SECURITIES FOR THE COMPLETED PORTIONS OF
TRACT 3089-1; AND AUTHORIZING THE DIRECTOR OF PUBLIC

WORKS TO RELEASE THE REMAINING SECURITIES ONCE ALL
PHASE 1 IMPROVEMENTS ARE DEEMED COMPLETE
WHEREAS, the City Council made certain findings concerning Tract 3089, as prescribed in Resolution 10832 (2017 Series); and
WHEREAS, the City Council created the Avila Ranch Community Facilities District No. 2017-1 by Ordinance No. 1642 (2017 Series); and
WHEREAS, the City Council approved the final map for Tract 3089 Phase 1 (Tract 3089-1) per Resolution 10968 (2018 Series); and
WHEREAS, the subdivider has satisfactorily completed the majority of the required public improvements in accordance with City standards, specifications, and the subdivision agreement; and has requested the City accept these public improvements for maintenance and operation by the City; and
WHEREAS, the subdivider has satisfactorily completed a portion of the private improvements in accordance with City standards, specifications, and the approved plans; and has requested the City certify completion of these private improvements; and WHEREAS, the subdivider constructed off-site improvements, located outside the City limits under a County encroachment permit, which will be maintained by the County pursuant to a forthcoming agreement between the City and the County. These improvements include the extension of Buckley Road from Vachell Lane to South Higuera Street, installation of a traffic signal at the now-existing intersection at South Higuera and Buckley Road, and frontage improvements to Buckley Road and Vachell Lane; and WHEREAS, the subdivider has on file the appropriate securities to guarantee the completion of the remaining Phase 1 subdivision improvements as shown on the approved plans.

NOW, THEREFORE, BE IT RESOLVED by the Council of the City of San Luis Obispo as follows:

Resolution No. _____ (2023 Series) Page 2
R ______
SECTION 1. The City Council hereby accepts a portion of the public improvements for Tract 3089-1, excluding improvements located in the County of San Luis Obispo (the extension of Buckley Road from Vachell Lane to South Higuera Street, a new traffic signal at the new intersection of Buckley Road and South Higuera Street, and frontage improvements to Buckley Road and Vachell Lane), specifically as follows:
a) The public improvements for Earthwood Lane, Venture Drive, Tango Way, Delta Drive, Bravo Street, Alpha Lane and Bravo Court; and b) Off-site improvements including:
i. Extension of Earthwood Lane to Suburban Road
ii. Suburban Road Improvements, South Higuera to Earthwood Lane iii. Sidewalk on portions of Vachell Lane [Condition #124] iv. Intersection improvements at South Street / Higuera Street v. Intersection improvements at Tank Farm Road / South Higuera Street SECTION 2. The City Council hereby certifies completion of a portion of the required private subdivision improvements within the Tract 3089-1 boundary.

SECTION 3. The Faithful Performance securities guaranteeing completion of the on-site and off-site public improvements may be reduced with the approval of the Director of Public Works upon submittal of the following items:

1. Progress record drawings for the completed improvements; and

2. Certification by the Engineer of Record for the completion of the public improvements.

SECTION 4. The corresponding Labor & Materials security may be released after 90 days from the date of acceptance of the improvements, or after 60 days from the date of recordation of a Notice of Completion, in accordance with Section 66499.7(h) of the California Government Code.

SECTION 5. The Director of Public Works is hereby authorized to accept the remaining improvements and to release the remaining securities on behalf of the City Council once the work is completed to the City’s satisfaction.

Resolution No. _____ (2023 Series) Page 3
R ______
SECTION 6. The security guaranteeing the workmanship and materials may be released by the Director of Public Works upon the successful completion of the 12-month warranty time period from the date of acceptance of the improvements.

Upon motion of Council Member ___________, seconded by Council Member ___________, and on the following roll call vote:

AYES:

NOES:

ABSENT:

The foregoing resolution was adopted this _____ day of _______________ 2023. ___________________________
Mayor Erica A. Stewart
ATTEST:
______________________
Teresa Purrington
City Clerk
APPROVED AS TO FORM:
______________________
J. Christine Dietrick
City Attorney
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of San Luis Obispo, California, on ______________________. ___________________________
Teresa Purrington
City Clerk

Item 5e
Department: Public Works
Cost Center: 4003
For Agenda of: 2/21/2023
Placement: Consent
Estimated Time: N/A
FROM: Michael Codron, Community Development Director
Prepared By: Brian Rodriguez, Senior Civil Engineer
SUBJECT: PARTIAL ACCEPTANCE OF PUBLIC IMPROVEMENTS FOR TRACT 3063 RIGHETTI RANCH PHASE 3 IN THE ORCUTT AREA SPECIFIC

PLAN (OASP)

RECOMMENDATION
Adopt a Draft Resolution entitled, “A Resolution of the City Council of the City of San Luis Obispo, California, accepting the Public Improvements and certifying completion of the Private Improvements for Tract 3063 Righetti Ranch Phase 3 (3987 Orcutt Road),” releasing the securities for the completed portions, and authorizing the Director of Public Works to accept the remaining improvements and to release the remaining securities once the improvements are deemed complete.

POLICY CONTEXT
The City Council accepts public improvements and certifies completion of private improvements in accordance with the Subdivision Map Act (66499) and the City’s Subdivision Regulations (16.20.210). The decision to accept public improvements is ministerial on the part of the City and is a required step once inspections have determined that the permitted infrastructure was installed per approved plans.

DISCUSSION
Background
Tract 3063 Righetti Ranch Phase 3 within The Orcutt Area Specific Plan (OASP) (Attachment B) contains private and public improvements which are either now complete or nearing completion.

Tract 3063-3 (Phase 3 of the Righetti Ranch Subdivision) consists of the creation of 39 lots consisting of:

1. 34 single family lots

2. 1 private streets lot

3. 1 public park lot

4. 2 public open space lots

5. 1 private open space lot

Item 5e
Partial Acceptance of Public Improvements
This action by Council partially accepts completed public improvements, a common practice with the direction to the Public Works Director to finalize acceptance of the remaining public improvements identified in the next section below. Work that has been completed for partial acceptance in Phase 3 include the following:

1. Curb, gutters and sidewalks

2. Street base and surfacing

3. Water mains and including water services to the curb stop.

Phase 3 bond reduction will consider the list below of other deferred improvements that have been completed or nearing completion in Phase 3 that connect to and were part of Phases 1 & 2.

1. Tank Farm Road Frontage Improvements (from construction Phase 1 & 2) Tank Farm Road improvements completed with Phase 3 include final landscape in the medians and parkways between curb and sidewalk.

2. Orcutt Road Frontage Improvements
Improvements on Orcutt Road from Tiburon Way to the northernly limits of Tank Farm Road Roundabout have been completed except for landscaping in bioswale/bioretention areas.

3. Tank Farm/Orcutt Intersection Improvements (City Capital Improvement Project)
The City took the lead with the design and construction of the Tank Farm and Orcutt Road roundabout. The new roundabout has been installed at the intersection of Orcutt and Tank Farm Roads that tied into these subdivision improvements. A map showing the locations of these new public and private street improvements is included as Attachment C. This project is complete.

4. Bicycle and Pedestrian Access
A pedestrian/bike path connects the private streets in Phase 3 with Tract 3063 Phase 1 and Phase 2 neighborhoods. This section has not been completed and developer is still working on these improvements. The City is guaranteed the completion of the connected bike path between the 3 Phases via the subdivision improvement bonds. The other OASP neighborhoods currently under construction and/or permitting will provide additional bike and pedestrian connectivity to the northerly OASP limits
Partial Certification of Private Subdivision Improvements New private streets including Parsons Way, Box Spring Road, and Hansen Lane along with their associated private improvements have been partially completed (Condition #7).

These improvements include;

1. Street base and surfacing

2. Curb, gutters and sidewalks

3. Driveways

4. Sewer mains including sewer laterals to the property line

Item 5e

5. Landscaping

6. Drainage facilities on site and offsite along Orcutt Rd

7. Streetlights

8. Dry Utilities which include electric, telephone and cable television stubs to properties

9. All Private Improvements shown on the plans or required by project approvals Authorizing the Public Works Director to Accept Remaining Improvements and Release Remaining Securities
In accordance with Section 66499.7 of the Government Code of the State of California the City Council may authorize any of its public officers or employees to authorize release or reduction of the security. Previous council actions have delegated this authority to the Public Works Director. On behalf of the City Council, the draft resolution authorizes the Public Works Director to accept the remaining public improvements and certify completion of the private improvements once they are deemed complete and to reduce/release the remaining securities.

Per the subdivision agreement and Subdivision Map Act once all work is deemed complete, the City will release all but 10% of the improvement security for any required guarantee and warranty period of one year following the completion and acceptance. This amount is retained in case remedy to any defects in the improvements arise within the warranty period.

Releasing Securities for Completed Improvements
The draft resolution includes the City Council acceptance and certified completion of a portion of the required public and private improvements and reduces the securities for the work that is completed. The remaining improvements and securities will not be released until the subdivision improvements are complete and authorized by the Public Works Director.

Previous Council Actions
The Tentative Subdivision Map for Tract 3063 (Righetti Ranch) was approved by City Council on May 19, 2015, by Resolution No. 10619 (2015 Series).

Amendments to Mitigation Measures and Conditions of Approval was approved by City Council on February 6, 2018, by Resolution No. 10861 (2018 Series).

The Final Map of Tract 3063- Phase 3 (Phase 3 of Righetti Ranch) was approved by City Council on the 21st day of January 2020, by Resolution No. 11080 (2020 Series).

Subdivision Agreement of Tract 3063 – Phase 3 dated 22nd day of June 2022.

Public Engagement
Public Engagement was completed with the approval of the Tentative Map and the development of the Orcutt Area Specific Plan.

Item 5e

CONCURRENCE
The Public Works Director and the Utilities Director concur with the recommended actions.

ENVIRONMENTAL REVIEW
There is no environmental review associated with the acceptance of these improvements.

Prior Environmental review consisted of the review of the Orcutt Area Specific Plan (OASP) and its Final Environmental Impact Report (FEIR) in March 2010. Subsequent environmental review included the Vesting Tentative Tract Maps, which tiered off the 2010 FEIR, and were analyzed in project-specific Initial Study/Mitigated Negative Declarations.

FISCAL IMPACT
Budgeted: No Budget Year: N/A
Funding Identified: No
Fiscal Analysis:

Funding
Sources
Total Budget
Available
Current
Funding
Request
Remaining
Balance
Annual
Ongoing
Cost
General Fund N/A
State
Federal
Fees
Other:

Total
Typical maintenance and operation of newly accepted public facilities will be required for the street and utility improvements. Increasing the maintenance budget for the small, incremental increase in infrastructure to be maintained does not occur with the acceptance of public facilities. The maintenance budget for the improvements is evaluated and adjusted as needed with the City’s adoption of its two-year financial plan.

Council action accepting these improvements, however, itself does not have an associated budget increase.

ALTERNATIVE
Continue consideration of the request. Limited alternatives exist only regarding the timing of the acceptance of these improvements. Ultimately, acceptance of the public improvements is required in accordance with the OASP, Tentative Map approvals, Department of Real Estate process assumptions, and Homeowners Association CC&R’s.

Item 5e

ATTACHMENTS
A - Draft Resolution adopting Righetti Ranch Phase 3 Acceptance, Tract 3063-3 B - Vicinity Map – Tract 3063 Phase 3 Acceptance Limits C - Site Map – Tract 3063 Phase 3 Improvements

R _____
RESOLUTION NO. _____ (2023 SERIES)

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

SAN LUIS OBISPO, CALIFORNIA, ACCEPTING THE PUBLIC

IMPROVEMENTS AND CERTIFYING COMPLETION OF THE PRIVATE
IMPROVEMENTS FOR TRACT 3063 RIGHETTI RANCH PHASE 3 (3987

ORCUTT ROAD)
WHEREAS, the City Council made certain findings concerning Tract 3063, as prescribed in Resolution No. 10619 (2015 Series); and
WHEREAS, the City Council approved the final map for Tract 3603 Phase 3 per Resolution No. 11080 (2020 Series); and
WHEREAS, the subdivider has satisfactorily completed a portion of the required Phase 3 public improvements in accordance with City standards, specifications, and the subdivision agreement; and has requested that the City accept of these public improvements for maintenance and operation by the City; and WHEREAS, the subdivider has satisfactorily completed a portion of the Phase 3 private improvements in accordance with City standards, specifications and the approved plans, and has requested that the City certify completion of these private improvements; and
WHEREAS, the subdivider has on file the appropriate securities to guarantee the completion of the remaining Phase 3 subdivision improvements as shown on the approved plans.

NOW, THEREFORE, BE IT RESOLVED by the Council of the City of San Luis Obispo as follows:

SECTION 1. The City Council hereby accepts the improvements for Orcutt Road from the Tank Farm Road Roundabout to the northernly limits of Tract 3063 Phase 3 and the previously completed and accepted Orcutt Road improvements and the public water main improvements in Tract 3063 Phase 3.

SECTION 2. The City Council certifies completion of the Tract 3063 Phase 3 private Orcutt Road improvements within the limits described above.

SECTION 3. The Faithful Performance securities guaranteeing completion of the on-site and off-site public improvements and remaining private improvements may be reduced to the approval of the City Engineer upon submittal of the following items:

1. Progress record drawings for the completed improvements; and

2. Completion of remaining public and private subdivision improvements; and

3. Certification by the Engineer of Record for the completion of the public and private improvements.

Resolution No. ________ (2023 Series) Page 2
R _____
SECTION 4. The corresponding Labor & Materials security may be released after 90 days from the date of acceptance of the improvements or 60 days after the recordation of a notice of completion in accordance with Section 66499.7(h) of the California Government Code.

SECTION 5. The Director of Public Works is hereby authorized to accept the remaining Phase 3 public improvements and to release the remaining Phase 3 securities on behalf of the City Council once the work is completed to the satisfaction of the City Engineer.

SECTION 6. The security guaranteeing the workmanship and materials may be released by the Director of Public Works upon the successful completion of the 12-month warranty time period from the date of acceptance of the improvements.

Upon motion of Council Member ___________, seconded by Council Member ___________, and on the following roll call vote:

AYES:

NOES:

ABSENT:

The foregoing resolution was adopted this ______ day of _______________ 2023. ____________________________
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

RIGHETTI RANCH TRACT 3063 PHASE 3

RIGHETTI RANCH TRACT 3063 PHASE 3 PRIVATE AND PUBLIC IMPROVEMENTS SITE MAP

Item 5f
Department: Fire
Cost Center: 8599
For Agenda of: 2/21/2023
Placement: Consent
Estimated Time: N/A
FROM: Todd Tuggle, Fire Chief
Prepared By: James Blattler, Emergency Manager
SUBJECT: AUTHORIZE THE FIRE DEPARTMENT TO APPLY FOR WILDFIRE PREVENTION ACTIVITIES GRANT FUNDING THROUGH CAL FIRE’S

CALIFORNIA CLIMATE INVESTMENT (CCI) WILDFIRE PREVENTION

GRANT PROGRAM AND PROVIDE A LETTER OF SUPPORT TO SLO

COUNTY FIRE SAFE COUNCIL

RECOMMENDATION

1. Authorize the Fire Department to apply for funding under Cal Fire’s CCI Wildfire Prevention Grant Program to conduct fire fuel reduction work, purchase specialized equipment, and complete a comprehensive update to the City’s Vegetation Management Plan; and

2. Adopt a Draft Resolution entitled, “A Resolution of the City Council of the City of San Luis Obispo, California, authorizing the Fire Department to apply for the California Climate Investment’s Wildfire Prevention Grants Program and carry out project, if awarded”; and

3. Authorize the Fire Department to provide a letter of support to the SLO County Fire Safe Council to seek a planning project under the Cal Fire CCI Wildfire Prevention Grant Program that benefits the city; and

4. Authorize the City Manager, or their designee, to execute the grant documents and approve the budget changes necessary to appropriate the grant amount upon notification that the grant has been awarded.

POLICY CONTEXT
The recommended actions are consistent with the City of San Luis Obispo’s Financial Management Manual, Section 740 - Grant Management Policy. The policy states that Council will approve all grant applications in excess of $5,000 and delegates receipt and contract execution to the City Manager.

The work conducted under the grant is in line with the City’s Major City Goal of Climate Action, Open Space, and Sustainable Transportation by proactively addressing the climate crisis through fire hazard mitigation efforts and improved resilience.

Item 5f
Additionally, the work under this grant is in line with the City’s Community Wildfire Protection Plan and the Climate Adaptation and Safety Element.

DISCUSSION
State, federal, and non-profit grants are occasionally offered to assist local governments with the financial impacts associated with daily operations and/or mandated programs.

The Fire Department actively seeks out these opportunities to enhance the effectiveness of the Department while increasing fiscal sustainability for the City. A recent grant opportunity was identified, which is in line with these goals and addresses a current need for the City: the Cal Fire California Climate Investment Wildfire Prevention Grant Program.

In coordination with the City’s Fire Department, Natural Resources Office, and Park and Recreation Department, staff recommends seeking funding for three immediately achievable priorities related to wildfire preparedness:
(1) An estimated $200,000 for hazardous fuel reduction used to remove accumulated dead and downed vegetation in the San Luis Obispo Creek and high-hazard trees located near homes
(2) Approximately $50,000 to purchase a specialized track chipper to improve staff’s ability to conduct fuel reduction efforts in-house, and (3) An estimated $100,000 for wildfire prevention planning used to hire a consultant to complete a comprehensive update to the City’s Vegetation Management Plan with the addition of the Riparian areas that traverse the city.

Staff will continue to fine-tune the request as the deadline to apply for the grant is March 15, 2023, but recommends an approximate request of $350,000 to generate a competitive and realistic grant application.

In addition to the aforementioned grant application, the San Luis Obispo County Fire Safe Council is seeking the same funding opportunity to carry out wildfire prevention projects throughout the County. One possible project includes vegetation management planning for the Reservoir Canyon area above San Luis Drive and East of Johnson Avenue. The project would cross jurisdictional boundaries into City managed land, and the Fire Safe Council requires a letter of support affirming the city as a project partner in their grant request.

Background
The California Department of Forestry and Fire Protection (Cal Fire) Wildfire Prevention (WP) Grants Program is funded by the State of California General Fund and with Capand-Trade auction proceeds appropriated by the California Legislature to agencies that administer California Climate Investments. Up to $115 million is being allocated to Cal Fire’s Wildfire Prevention Grants Program in Fiscal Year 2022-2023 from the CCI Greenhouse Gas Reduction Fund (GGRF) and General Fund. The maximum allowable funding amount cap is $5,000,000 for this program with an equipment purchase cap of $750,000 cumulative total.

Item 5f
Cal Fire’s Wildfire Prevention Grants Program provides funding for wildfire prevention projects and activities in and near fire-threatened communities that focus on increasing the protection of people, structures, and communities. Funded activities include hazardous fuels reduction, wildfire prevention planning, and wildfire prevention education with an emphasis on improving public health and safety while reducing greenhouse gas emissions.

With the award, Cal Fire requires that a resolution from the applicant’s governing body be signed affirming the application for the grant was authorized, certifying that sufficient funds are available to operate and maintain the project, and that grant funds will be expended before the grant deadline. Finally, the resolution appoints a staff member to conduct all negotiations, execute and submit all documents necessary for the completion of the grant project.

Public Engagement
This item is on the agenda for the February 21, 2023, City Council meeting and will follow all required postings and notifications. The public will have an opportunity to comment on this item at or before the meeting.

CONCURRENCE
The Parks & Recreation Department and Office of Sustainability and Natural Resources concur with the report and proposed application.

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. If the work associated with the grant funding requires environmental review, staff will not proceed with the project until a review has been completed.

FISCAL IMPACT
Budgeted: No Budget Year: 2022-23 & 2023-24
Funding Identified: Yes
Fiscal Analysis:

Funding
Sources
Total Budget
Available
Current
Funding
Request
Remaining
Balance
Annual
Ongoing
Cost
General Fund $0 $0 $ $
State $0 $350,000
Federal
Fees
Other:

Total $0 $350,000 $ $

Item 5f
The Cal Fire CCI Wildfire Prevention Grant Program allows applicants to seek up to $5,000,000 in funding with a cap of $750,000 in cumulative equipment costs. This program does not require a match, although the existence of matching funds is a positive factor. As such, staff recommends utilizing in-kind hours and foregoing the allowable inclusion of indirect costs of 12% as part of the request to provide a match towards the funding and will assess workload capacity as part of the project planning to ensure staff bandwidth is available to successfully complete the project within the period of performance. This recommendation allows for a lower requested amount from the grantor and limits the financial impact on the City. If the grant project is not funded, staff will continue to seek grant funding opportunities to continue fuel reduction efforts within the City.

There would be no city financial impact related to the Fire Safe Council securing a grant that benefits the city.

ALTERNATIVES
The Council could decide not to pursue the grant monies. This is not recommended as fire service grant opportunities are limited and the grant funds would only serve to enhance the City’s safety and resilience while increasing fiscal sustainability for the City.

ATTACHMENTS
A - Draft Resolution authorizing the Fire Department to apply for the Cal Fire CCI Wildfire Prevention Grant

R ______
RESOLUTION NO. _____ (2023 SERIES)

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

OBISPO, CALIFORNIA, AUTHORIZING THE FIRE DEPARTMENT TO

APPLY FOR THE CALIFORNIA CLIMATE INVESTMENTS WILDFIRE

PREVENTION GRANTS PROGRAM AND CARRY OUT PROJECT, IF

AWARDED
WHEREAS, the Governor of the State of California in cooperation with the California State Legislature has enacted State of California Climate Investment, which provides funds to the State of California and its political subdivisions for fire prevention programs; and
WHEREAS, The State Department of Forestry and Fire Protection (CAL FIRE) has been delegated the responsibility for the administration of the program within the State, setting up necessary procedures governing application by local agencies, non-profit organizations, and others under the program; and
WHEREAS, the City of San Luis Obispo Fire Department seeks funding opportunities to help accomplish projects that protect the people, structures and communities of San Luis Obispo through wildfire prevention; and WHEREAS, the Cal FIRE Wildfire Prevention Grant Program is aligned with the Major City Goal of Climate Action and Open Space, the Climate Adaptation Safety Element and Community Wildfire Protection Plan; and
WHEREAS, if awarded, the Fire Department will enter into an agreement with the State of California to carry out the City of San Luis Obispo Wildfire Prevention project.

NOW, THEREFORE, BE IT RESOLVED by the Council of the City of San Luis Obispo as follows:

SECTION 1. Approved the filing of an application for “California Climate Investments Wildfire Prevention Grants Program”; and
SECTION 2. Certifies that the City has or will have sufficient funds to operate and maintain the project; and,
SECTION 3. Certifies that funds under the jurisdiction of the Council of the City of San Luis Obispo are available to begin the project.

SECTION 4. Certifies that the City will expend grant funds prior to the grant deadline of March 15, 2029.

Resolution No. _____ (2023 Series) Page 2
R ______
SECTION 5. Appoints the Fire Chief, or a designee, to conduct all negotiations, execute and submit all documents including, but not limited to applications, agreements, amendments, payment requests and so on, which may be necessary for the completion of the aforementioned project.

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 _______________ 2023. ___________________________
Mayor Erica A. Stewart
ATTEST:
______________________
Teresa Purrington
City Clerk
APPROVED AS TO FORM:
______________________
J. Christine Dietrick
City Attorney
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of San Luis Obispo, California, on ______________________. ___________________________
Teresa Purrington
City Clerk

Item 5g
Department: Fire
Cost Center: 402-5008
For Agenda of: 2/21/2023
Placement: Consent
Estimated Time: N/A
FROM: Todd Tuggle, Fire Chief
Prepared By: Nicole Vert, Administrative Analyst
SUBJECT: AUTHORIZE PURCHASE OF A NEW TYPE 3 WILDLAND FIRE ENGINE

RECOMMENDATION
Approve the sole source purchase of a Type 3 Wildland fire Engine in the amount of $434,920.24

POLICY CONTEXT
The recommended actions are consistent with the City of San Luis Obispo’s Municipal Code, Section 3.24.060- Sole source purchasing. The policy states that regular bid procedures can be waived when the item(s) to be purchased can be obtained from only one vendor or supplier, and when supplies or equipment have been uniformly adopted in the city or otherwise when standardized.

The purchase is in line with the City’s Fiscal Health Contingency Plan that states focus will be on retaining “front-line” core services, ensuring the Fire Department’s response to all types of emergencies will always be reliable and without delay.

DISCUSSION
Background
Emergency vehicles are a vital part of the service delivery for the City of San Luis Obispo Fire Department. The Type 3 Wildland engine is a critical piece of equipment for rapid response to vegetation fires on open space areas within and surrounding the city of San Luis Obispo. This engine sits on a 4x4 chassis and is ideal for responding to vegetation fires with its ability to manage off-road and variable terrain. This engine is also used widely in mutual aid throughout the state assisting other agencies in fighting vegetation and brush fires.

Through the utilization of an internal apparatus committee, staff developed fire engine specifications that were used to build the pricing for the replacement of the wildland engine, a 2023 Pierce/BME Type 3 Wildland Fire Engine. The specifications considered the community’s unique features and sought the most appropriate fire engine to complement the existing apparatus fleet and authorized funding.

Item 5g
In accordance with the City’s established fleet replacement cycle and after consulting with the Fire Vehicle Mechanic, the new fire engine will replace a 16-year-old engine, which will be transitioned to reserve status. The new fire engine provides the same capabilities as the previous engine but with improved safety features, efficiency, and reliability resulting in less cost and time associated with repair and maintenance.

Fiscal Health Contingency Plan
In response to the damage costs from the January 2023 storms the city activated the Fiscal Health Contingency Plan that allows for purchases necessary to support daily operations of essential City services. The Fire Department relies on its fleet to respond to all emergencies in the city on a daily basis. The Fiscal Health Contingency plan retains “front-line” core services, which would include emergency response vehicles. A reliable fleet to respond to emergencies is vital for the Fire Department in all situations.

Sole Source Purchase Recommended
Staff recommends a sole source purchase award to South Coast Fire Equipment in the amount of $434,920.24 for the purchase of a 2023 Pierce/BME Type 3 Wildland Engine.

City purchasing guidelines allow for sole source when supplies or equipment in use have been uniformly adopted by the City or otherwise standardized. The Pierce fire engine has been the standard apparatus for the City of San Luis Obispo for the last quarter century.

South Coast Fire Equipment, the sole provider of Pierce engines in this region, is providing the purchasing quote (Attachment A) for the pumper at the base price reflective of a nationally utilized cooperative purchasing agreement. Used as a pricing standard throughout the fire service, this master contract is commonly known as the HGAC, or Houston Galveston Area Council Cooperative Purchasing Agreement. While the City is not purchasing through HGAC, the City’s price for this apparatus is the same as this cooperative purchasing agreement.

The Fire Department has made significant parts, equipment, and training investment in maintaining Pierce-manufactured apparatus. Fire fleet already has an inventory of spare parts, filters, and maintenance items specific to the Pierce fire apparatus platform.

Additionally, the Fire Department’s Fire Vehicle Mechanic is specially trained to provide maintenance to Pierce manufactured fire apparatus.

Public Engagement
This item is a business item for the February 21, 2023, City Council meeting and will follow all required postings and notifications. The public will have an opportunity to comment on this item at or before the meeting.

ENVIRONMENTAL REVIEW
The California Environmental Quality Act does not apply to the recommended action in this report, because the action does not constitute a “Project” under CEQA Guidelines Sec. 15378.

Item 5g

FISCAL IMPACT
Budgeted: Yes Budget Year: 2022-23
Funding Identified: Yes
Fiscal Analysis:

Funding
Sources
Total Budget
Available
Current
Funding
Request
Remaining
Balance
Annual
Ongoing
Cost
General Fund $500,000 $434,920 $ 65,080 $0
State
Federal
Fees
Other:

Total $500,000 $434,920 $65,080 $0
The 2021-23 Financial Plan allocated $500,000 this fiscal year to purchase the new Wildland engine. The engine will be paid in full upon purchase avoiding the need for debt financing and associated costs. The remaining $65,080 is needed to complete the vehicle build-up. The build-up items include radios, hose and tools necessary on an engine that are purchased separately. The department will utilize all funds for the buildup applying cost saving measures attempt to remain in budget.

ALTERNATIVES
Deny the sole source purchase. Staff does not recommend this as the funds are approved as part of the budget. Delaying the purchase will jeopardize the reliability of the Fire Department’s apparatus fleet and likely result in significant replacement cost increases due to current market conditions.

ATTACHMENTS
A - South Coast Quote for Type 3 Wildland Engine

Item 5h
Department: Finance
Cost Center: 2005
For Agenda of: 2/21/2023
Placement: Consent
Estimated Time: N/A
FROM: Emily Jackson, Finance Director
Prepared By: Debbie Malicoat, Accounting Manager/Controller SUBJECT: ACCEPTANCE OF THE TRANSPORTATION DEVELOPMENT ACT AND FEDERAL SINGLE AUDITS FOR FISCAL YEAR 2021-22

RECOMMENDATION
Review and accept the Transportation Development Act and Federal Single Audits for Fiscal Year 2021-22.

POLICY CONTEXT
The City’s Charter under Section 810 requires the employment of an independent certified public accountant to examine the City’s financial statements.

DISCUSSION
On January 17, 2023, the City Council reviewed and accepted the City’s audited financial statements for the fiscal year that ended June 30, 2022. As discussed in that report, the City’s independent auditors were finalizing the Single Audit Report and Transportation Development Act (TDA) annual audit for review at a later meeting. Both audits are now complete and ready for Council review.

TDA Report and Financial Statements
This document provides information on the revenues received by the City pursuant to the TDA. The City receives funding from the TDA for two specific purposes:

1. The development and construction of local streets and roads, including pedestrian and bicycle facilities. Since these funds are legally restricted, the City has a special revenue fund created to account for this portion of TDA revenues. The City received $53,681 in TDA funding during the 2021-22 fiscal year. Of these revenues, $45,000 was spent on curb ramp improvements and $8,681 remains unspent at year end.

Item 5h

2. The Transit Fund is an enterprise fund to account for the revenues received pursuant to the TDA, the Federal Transit Authority (FTA) and revenues from transit operations. These revenues are allocated under specific statutes and are legally restricted to pay for transit operations, the development of public transportation systems and transportation planning. The Transit Fund received $2,398,309 in TDA operating grants during the fiscal year. Of these funds, $1,065,433 were also unspent at fiscal year-end due to Federal funding received for Transit and will be available for future use.

In addition, this report demonstrates the City’s compliance with applicable TDA regulations pertaining to acceptable fare revenue ratios. For the fiscal year ended in 2021, the City was required to maintain a fare revenue ratio of 20%, the actual ratio was 98% due to a change in calculation allowing the inclusion of federal grant funds as local funds for the purpose of computing fare revenue ratios. This mandate is discussed further in Note 7 of the report.

Single Audit Reports
This document provides several items. First, it provides a report on the City’s internal control when it comes to financial reporting. Second, it provides a schedule of expenditures that were funded by Federal Grants and the City’s compliance with applicable Federal regulations. Third, it provides a schedule of findings and questioned costs, if any. The findings are areas of improvement for the City when it comes to the internal controls that are designed to manage the risk with which the City’s assets are safeguarded, and its finances are accurately reported which then translates into the proper administration of federal funding.

As previously presented to the City Council, there are four findings and no questioned costs. The City’s responses to the auditor’s findings are incorporated into the Single Audit Report (Attachment A). The auditor’s comments generally reflect the difficulties encountered when implementing the new Enterprise Resource Planning/Human Capital Management (ERP/HCM) cloud-based Oracle system. Staff have made significant improvements over the past four years in all areas of concern. For example, in the FY 2018-19 Single Audit (the first year after implementation), the auditor’s concern regarding the large number of adjusting entries was based on receiving 77 adjustments, in the current period, there were 26. This is still a significant number of adjusting entries, however it demonstrates how far the City has come in correcting the issues and staff remain committed to continuous improvements and addressing the remaining concerns raised by the auditors. Again, these are areas of improvement and none of them put the City’s revenues in jeopardy or appropriate accounting of expenditures in question.

Public Engagement
The City’s annual audit and issuance of the financial reports fulfills a legal requirement and does not have a public engagement component outside the required presentation before Council during a public session.

Item 5h

ENVIRONMENTAL REVIEW
The California Environmental Quality Act does not apply to the recommended action in this report, because the action does not constitute a “Project” under CEQA Guidelines Sec. 15378.

FISCAL IMPACT
Budgeted: Yes Budget Year: 2022-23
Funding Identified: Yes
Fiscal Analysis:

Funding
Sources
Total Budget
Available
Current
Funding
Request
Remaining
Balance
Annual
Ongoing
Cost
General Fund $75,000 $62,405 $12,595 $75,000
State
Federal
Fees
Other:

Total $75,000 $62,405 $12,595 $75,000
The City budgets the cost for the auditing firm annually. The cost is appropriated with the annual budget adoption and encompasses the CAFR, TDA, Single Audit, and the Whale Rock Reservoir audit. The current fiscal year contains a budget of $75,000 for the previous fiscal year audit. The City had received a five-year fee schedule with the audit contract and for this fiscal year, the cost is $62,405.

ALTERNATIVES
The City Council could decide to revise or not accept the presented reports for fiscal year 2021-22. This is not recommended as the reports have been prepared in conformance with a variety of accounting, federal, and state reporting requirements and represent the professional evaluation and analysis by the City’s independent auditors.

ATTACHMENTS
A - Single Audit Reports for the year ended June 30, 2022 B - Transportation Development Act Financial Statements for the years ended June 30, 2022 and 2021

City of San Luis
Obispo
San Luis Obispo, California
Single Audit Reports
For the year ended June 30, 2022

City of San Luis Obispo
Single Audit Reports
For the year ended June 30, 2022
Table of Contents
Page
Report on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards .................................................................... 1 Report on Compliance for Each Major Federal Program and on Internal Control over Compliance in Accordance with the Uniform Guidance And on the Schedule of Expenditures of Federal Awards ................................................................................ 3 Schedule of Expenditures of Federal Awards ..................................................................................................... 8 Notes to the Schedule of Expenditures of Federal Awards .............................................................................. 9 Schedule of Findings and Questioned Costs ..................................................................................................... 10

REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND

OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN

ACCORDANCE WITH

GOVERNMENT AUDITING STANDARDS
Independent Auditor’s Report
To the Honorable Mayor and Members of City Council
of the City of San Luis Obispo
San Luis Obispo, California
We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of San Luis Obispo, California (City), as of and for the year ended June 30, 2022, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements and have issued our report thereon dated January 31 , 2023.

Report on Internal Control Over Financial Reporting
In planning and performing our audit of the financial statements, we considered the City’s internal control over financial reporting (internal control) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, we do not express an opinion on the effectiveness of the City’s internal control.

Our consideration of internal control over financial reporting was for the limited purpose described in the preceding paragraph and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies and therefore, material weaknesses or significant deficiencies may exist that have not been identified. However, as described in the accompanying schedule of findings and responses, we identified certain deficiencies in internal control that we consider to be material weaknesses and significant deficiencies.

A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control such that there is a reasonable possibility that a material misstatement of the entity’s financial statements will not be prevented, or detected and corrected on a timely basis. We consider the deficiencies described in the accompanying schedule of findings and questioned costs as items 2022-001, and 2022-002 to be material weaknesses.

To the Honorable Mayor and Members of City Council
of the City of San Luis Obispo
San Luis Obispo, California

A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. We consider the deficiencies described in the accompany schedule of findings and questioned costs as item 2022-003 and 2022-004 to be significant deficiencies.

Compliance and Other Matters
As part of obtaining reasonable assurance about whether the City’s financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the financial statements. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards.

City of San Luis Obispo’s Response to Findings
Government Auditing Standards requires the auditor to perform limited procedures on the City’s response to the findings identified in our engagement and described in the accompanying schedule of findings and questioned costs. City’s response was not subjected to the auditing procedures applied in the audit of the financial statements and, accordingly, we express no opinion on the response.

Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the entity’s internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the entity’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose.

Badawi & Associates, CPAs
Berkeley, California
January 31, 2023
2

REPORT ON COMPLIANCE FOR EACH MAJOR PROGRAM AND ON INTERNAL CONTROL

OVER COMPLIANCE IN ACCORDANCE WITH THE UNIFORM GUIDANCE AND ON THE

SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
Independent Auditor’s Report
To the Honorable Mayor and Members of City Council
of the City of San Luis Obispo
San Luis Obispo, California
Report on Compliance for Each Major Federal Program
Opinion on Each Major Federal Program
We have audited the City of San Luis Obispo, California’s (City) compliance with the types of compliance requirements described in the OMB Compliance Supplement that could have a direct and material effect on each of the City’s major federal programs for the year ended June 30, 2022. The City’s major federal programs are identified in the summary of auditor’s results section of the accompanying schedule of findings and questioned costs.

In our opinion, the City complied, in all material respects, with the types of compliance requirements referred to above that could have a direct and material effect on each of its major federal programs for the year ended June 30, 2022.

Basis for Opinion on Each Major Federal Program
We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America (GAAS) ; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States(Government Auditing Standards); and the audit requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Our responsibilities under those standards and the Uniform Guidance are further described in the Auditor’s Responsibilities for the Audit of Compliance section of our report.

We are required to be independent of the City and to meet our other ethical responsibilities, in accordance with relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion on compliance for each major federal program. Our audit does not provide a legal determination of the City’s compliance with the compliance requirements referred to above.

To the Honorable Mayor and Members of City Council
of the City of San Luis Obispo
San Luis Obispo, California

Responsibilities of Management for Compliance
Management is responsible for compliance with the requirements referred to above and for the design, implementation, and maintenance of effective internal control over compliance with the requirements of laws, statutes, regulations, rules, and provisions of contracts or grant agreements applicable to the City’s federal programs.

Auditor’s Responsibilities for the Audit of Compliance
Our objectives are to obtain reasonable assurance about whether material noncompliance with the compliance requirements referred to above occurred, whether due to fraud or error, and express an opinion on the City’s compliance based on our audit. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS, Government Auditing Standards, and the Uniform Guidance will always detect material noncompliance when it exists. The risk of not detecting material noncompliance resulting from fraud is higher than for that resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Noncompliance with the compliance requirements referred to above is considered material if there is a substantial likelihood that, individually or in the aggregate, it would influence the judgment made by a reasonable user of the report on compliance about the City’s compliance with the requirements of each major federal program as a whole.

In performing an audit in accordance with GAAS, Government Auditing Standards, and the Uniform Guidance, we:
• Exercise professional judgment and maintain professional skepticism throughout the audit. • Identify and assess the risks of material noncompliance, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the City’s compliance with the compliance requirements referred to above and performing such other procedures as we considered necessary in the circumstances. • Obtain an understanding of the City’s internal control over compliance relevant to the audit in order to design audit procedures that are appropriate in the circumstances and to test and report on internal control over compliance in accordance with the Uniform Guidance, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control over compliance. Accordingly, no such opinion is expressed.

We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and any significant deficiencies and material weaknesses in internal control over compliance that we identified during the audit. 4

To the Honorable Mayor and Members of City Council
of the City of San Luis Obispo
San Luis Obispo, California

Report on Internal Control over Compliance
A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. A material weakness in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a federal program will not be prevented, or detected and corrected, on a timely basis. A significant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance with a type of compliance requirement of a federal program that is less severe than a material weakness in internal control over compliance, yet important enough to merit attention by those charged with governance.

Our consideration of internal control over compliance was for the limited purpose described in the Auditor’s Responsibilities for the Audit of Compliance section above and was not designed to identify all deficiencies in internal control over compliance that might be material weaknesses or significant deficiencies in internal control over compliance. Given these limitations, during our audit we did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses, as defined above. However, material weaknesses or significant deficiencies in internal control over compliance may exist that were not identified.

Our audit was not designed for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, no such opinion is expressed.

The purpose of this report on internal control over compliance is solely to describe the scope of our testing of internal control over compliance and the results of that testing based on the requirements of the Uniform Guidance. Accordingly, this report is not suitable for any other purpose.

Report on Schedule of Expenditures of Federal Awards Required by the Uniform Guidance We have audited the financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City, as of and for the year ended June 30, 2022, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements. We issued our report thereon dated December 20, 2022, which contained unmodified opinions on those financial statements. Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the basic financial statements. The accompanying schedule of expenditures of federal awards is presented for purposes of additional analysis as required by the Uniform Guidance and is not a required part of the basic financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. The information has been subjected to the auditing procedures applied in the audit of the financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of 5

To the Honorable Mayor and Members of City Council
of the City of San Luis Obispo
San Luis Obispo, California

America. In our opinion, the schedule of expenditures of federal awards is fairly stated in all material respects in relation to the basic financial statements as a whole.

Badawi & Associates, CPAs
Berkeley, California
January 31, 2023, except for the schedule of expenditures of federal awards, which is as of December 20, 2022
6

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7

City of San Luis Obispo
Schedule of Expenditures of Federal Awards
For the year ended June 30, 2022
Federal State
Catalog Pass-through Program Subrecipient
Grantor Agency and Grant Title Number Number Expenditures Payments U.S. Department of Transportation
Highway Planning and Construction Cluster
Passed Through the State of California Department of Transportation Highway Planning and Construction 20.205 STPLR-7500(291) $ 1,061 $ - Highway Planning and Construction 20.205 ATPL-5016(057) 1,161,188 - Subtotal Highway Planning and Construction Cluster 1,162,249 - Federal Transit Cluster
Direct Program:

Federal Transit Formula Grants 20.507 1,877,213 -
Subtotal Federal Transit Cluster 1,877,213 -
Total U.S. Department of Transportation - 3,039,462
U.S. Department of Justice
Direct Programs
Bulletproof Vest Partnership Program 16.607 3,428
Edward Bryne Memorial Justice Assistance Grant Program 16.738 21,135 - Total U.S. Department of Justice 24,563 -
U.S. Department of Housing and Urban Development
CDBG-Entitlement Grants Cluster
Passed Through County of San Luis Obispo
Community Development Block Grants/Entitlement Grants 14.218 B-21-UC-06-0508 36,482 - Subtotal CDBG-Entitlement Grants Cluster 36,482 -
Total U.S. Department of Housing and Urban Development 36,482 - U.S. Department of the Treasury
Passed through California State Water Resources Control Board Coronavirus State & Local Fiscal Recovery Funds 21.027 3940COVIDARREAR 225,016 - Total U.S. Department of the Treasury 225,016 -
Total Expenditures of Federal Awards $ 3,325,523 $ -
See accompanying Notes to Schedule of Expenditures of Federal Awards. 8

City of San Luis Obispo
Notes to the Schedule of Expenditures of Federal Awards For the year ended June 30, 2022
A. Reporting Entity
The City is a California charter city. It was incorporated on February 19, 1856 and chartered on May 1, 1876. It is organized in accordance with the Council-Mayor-City Manager form of government. With a population of approximately 46,802, the City provides a broad range of municipal services, including police and fire protection, parks and recreation, water and sewer utilities, street maintenance, public transportation, parking, planning, and building and safety.

B. Basis of Accounting
Funds received under the various grant programs have been recorded within the special revenue funds of the City. The City utilizes the modified accrual method of accounting for the special revenue funds.

Modified accrual accounting recognizes revenues when they become available and measurable and, with a few exceptions, recognizes expenditures when liabilities are incurred. The accompanying Schedule of Expenditures of Federal Awards (Schedule) has been prepared on the modified accrual basis of accounting.

C. Relationship of Schedule of Expenditures of Federal Awards to Financial Statements The accompanying Schedule presents the activity of all federal financial assistance programs of the City.

Federal financial assistance received directly from federal agencies as well as federal financial assistance passed through the State of California is included in the Schedule.

The Schedule was prepared only from the accounts of various grant programs and, therefore, does not present the financial position or results of operations of the City.

D. Pass-Through Entities’ Identifying Number
When federal awards were received from a pass-through entity, the Schedule shows, if available, the identifying number assigned by the pass-through entity. When no identifying number is shown, the City determined that no identifying number is assigned for the program or the City was unable to obtain an identifying number from the pass-through entity.

E. Indirect Costs
The City did not elect to use the 10% de minimis indirect cost rate. 9

City of San Luis Obispo
Single Audit Reports
Schedule of Findings and Questioned Costs
For the year ended June 30, 2022
Section I - Summary of Auditor’s Results
Financial Statements
Types of auditor’s report issued: Unmodified
Internal control over financial reporting:
 Material weakness(es) identified? Yes
 Significant deficiency(ies) identified? Yes
Any noncompliance material to the financial statements noted? No Federal Awards
Internal control over major programs:
 Material weakness(es) identified? No
 Significant deficiency(ies) identified? None noted
Type of auditor’s report issued on compliance for major programs Unmodified Any audit findings disclosed that are required to be reported in Accordance with section 200.516(a) No
Identification of major programs:

Assistance Listing Number(s) Name of Federal Program or Cluster Expenditures

20.507 Federal Transit Formula Grants $ 1,877,213

21.027 Coronavirus State & Local Fiscal Recovery Funds 225,016 Total Expenditures of All Major Federal Programs $ 2,102,229 Total Expenditures of Federal Awards $ 3,325,523
Percentage of Total Expenditures of Federal Awards 63.2% Dollar threshold used to distinguish between type A and type B program $750,000 Auditee qualified as low-risk auditee under
section 200.520? No
10

City of San Luis Obispo
Single Audit Reports
Schedule of Findings and Questioned Costs
For the year ended June 30, 2022
Section II – Current Year Findings
A. Financial Statement Audit Finding
2022-001 Journal Entries Posting (Material Weakness)
Criteria: The access to post journal entries in the general ledger should be restricted. Journal entries should be independently prepared, reviewed before being posted to the general ledger.

Condition: During the review of the City’s journal entry approval matrix and JE testing, we noted the posting from the subledger to GL do not require approvals at the general ledger level nor at the subledger level. Considering the number of employees who can post entries through subledger without review and the fact that corrections to payroll, payable, revenue/receivables, cash management, capital assets all can be posted through subledger and do not require approval, it increased the risk of unauthorized or incorrect journals get posted into general ledger.

Cause: The City didn’t have control in place to ensure all journal entries are properly reviewed before posting.

Effect:. Journal entries recorded in the City’s accounting system may be inaccurate, unapproved, or unsupported.

Recommendation: We recommend that the City limit the number of employees who can post journal entries in the subledger and general ledger, and implement system control to ensure all journal entries are reviewed before posting.

Management’s response:

City management concurs with the recommendation and will work with our internal IT team as well as consultants, if necessary, to explore how the Oracle ERP system’s workflows can be adjusted to include an approval process for posting adjusting entries, which are currently system generated and automatically posted.
11

City of San Luis Obispo
Single Audit Reports
Schedule of Findings and Questioned Costs
For the year ended June 30, 2022
Section II – Current Year Findings, continued
A. Financial Statement Audit Finding, continued
2022-002 Notes and Loans Receivable Tracking (Material Weakness) Criteria: The City is responsible for fair presentation of the financial statements in conformity with accounting principles generally accepted in the United States of America.

Condition: In fy2022, the City posted material prior period adjustments (over $3M) to record affordable housing loans, which were funded through City’s funds and CDBG. The loans were omitted from the prior years financial statements by error.

Cause: The loans were omitted due to miscommunication, or lack of communication between city departments that left the Finance Department unaware of the existence of the loans.

Effect: The financial statements were materially misstated.

Recommendation: We recommend the City to improve communication between Finance Department and other departments to ensure all financial transactions are captured properly.

Management’s Response:

Many of the loans were provided in prior years and included provisions for the forgiveness of the repayment. At the time of the transactions, it was determined that forgiveness was highly likely and therefore the transactions were treated as a grant, rather than a loan. However, more recently, the City’s practices related to facilitating affordable housing units have changed, and there is better clarity whether the assistance provided is in the form of a loan or a grant.

City management concurs with the recommendation and has put procedures in place in the year-end close checklist to ensure that all affordable housing loans are properly recorded. 12

City of San Luis Obispo
Single Audit Reports
Schedule of Findings and Questioned Costs
For the year ended June 30, 2022
Section II – Current Year Findings, continued
A. Financial Statement Audit Finding, continued
2022-003 Year-End Close and Audit Preparedness (Significant Deficiency) Criteria: The City is responsible for fair presentation of the financial statements in conformity with accounting principles generally accepted in the United States of America. In addition, the City is responsible for the accuracy and completeness of all information provided and maintaining adequate records for the audit.

Condition:
 We received some significant adjustments after being provided the final TB. We listed below some major post-closing entries we noted:
o Significant adjustments in recording loan receivables o ARPA revenue was not properly recorded as unearned
o Custodial funds were not tracked properly according to GASB 84 o To correct missing AP accruals
o To correct receivables balances
 The schedules initially provided for Receivables (AR, Notes Receivables, Tax Receivables) cannot be tied to GL and do not have description of what were included in the balances but a list of debit and credit transactions only.
 We had difficulties in our revenue test as the documents the City provided cannot be easily linked to our requests or missing information that we requested, most of which is because there is no easily reconcilable documentation from the amounts that post to the general ledger to the original revenues.

Cause: The City’s closing process was not comprehensive enough to identify timely all the journal entries and adjustments needed to ensure the accuracy of the various account balances. Also, some information and documents provided to the auditor were either inaccurate or incomplete.

Effect: The City’s accounting records needed significant adjustments after the closing of the books and during the audit. Also, the inaccurate and incomplete information provided to the auditor caused delays in the audit and added more complexity to the audit.

Recommendation: We recommend that the City update its closing process to ensure all transactions and adjustments are accounted for timely before the audit starts, and have the information and documents reviewed before submitting to the auditors.
13

City of San Luis Obispo
Single Audit Reports
Schedule of Findings and Questioned Costs
For the year ended June 30, 2022
Section II – Current Year Findings, continued
A. Financial Statement Audit Finding, continued
2022-003 Year-End Close and Audit Preparedness (Significant Deficiency), continued Management’s response:

The City agrees with the auditor’s comments and acknowledges that there is still additional room for improvement related to the year-end closing procedures and verifying the data from the Oracle ERP system. This has been an area of struggle since going live with the Oracle ERP system and although we have made great progress, there are areas of focus and attention that can continue to improve the accuracy and efficiency of the auditing process. Management is committed to dedicating the resources necessary to reduce the number of adjustments required after providing the final trial balance and improve the schedules for receivables. In addition, the creation of additional reports and supporting documents to substantiate the receivables balances will be undertaken. 14

City of San Luis Obispo
Single Audit Reports
Schedule of Findings and Questioned Costs
For the year ended June 30, 2022
Section II – Current Year Findings, continued
A. Financial Statement Audit Finding, continued
2022-004 Payroll Module Implementation (Significant Deficiency) Criteria: An effectively implemented payroll system should process the payroll accurately, and an effective internal control system over payroll requires timely and accurate payroll processing.

Condition: During the performance of the audit, we noted that – • The Oracle payroll module has overtime configuration implemented incorrectly, and the City has to manually track the payroll in a spreadsheet and correct the error as it occurs since the implementation.
• The configuration of payroll journal entries posting was implemented incorrectly which caused the variance between the bank record and the City’s general ledger.

Cause: The Oracle payroll module has not been implemented correctly.

Effect: Errors and fraud can go undetected in payroll processing with a large volume of manual corrections needed.

Recommendation: We recommend the City to work with the third-party vendor to correct the implementation of payroll module.

Management’s Response:

The City has recently entered into a contract with a consultant to assist with the reconfiguration of the payroll module to correct the overtime calculations. This work is expected to resolve the issue upon completion.
15

City of San Luis Obispo
Single Audit Reports
Schedule of Findings and Questioned Costs
For the year ended June 30, 2022
Section II – Current Year Findings, continued
B. Federal Award Program Audit Finding
No findings or questioned costs were noted in the current year. 16

City of San Luis Obispo
Single Audit Reports
Schedule of Findings and Questioned Costs
For the year ended June 30, 2022
Section III – Prior Year Findings
A. Financial Statement Audit Finding
2021-001 Year-End Close and Balance Sheet Account Reconciliations (Material Weakness) Criteria: The City is responsible for fair presentation of the financial statements in conformity with accounting principles generally accepted in the United States of America. In addition, an effective internal control system over financial closing and reporting provides reasonable assurance for the safeguarding of assets, the reliability of financial information, and compliance with laws and regulations.

Condition: During the performance of the audit, we noted that the City had to record a large number of adjusting entries after the closing process was complete to record transactions not previously recorded or to correct transactions or balances previously recorded in error. Those adjusting entries should have been part of the closing process and the timing of recording those adjusting entries have caused some delays and added complexity in the audit.

Cause: The City’s closing process was not comprehensive enough to identify timely all the journal entries and adjustments needed to ensure the accuracy of the various account balances. Additionally, multiple employees were granted access to post journal entries after the City closed the book without enough monitoring from the management.

Effect: The City’s accounting records needed significant adjustments after the closing of the books and during the audit which caused delays in the audit and added more complexity in dealing with the large volume of adjustments.

Recommendation: We recommend that the City update its closing process to ensure all transactions and adjustments are accounted for timely before the audit starts. Additionally, we recommend that the City restrict the employees access to post adjustments after the close of the book.

The City should furthermore develop formal written policies over significant accounts that include the timely reconciling of accounts to activity reported in related subsidiary ledgers. Also, the City should restrict journal entries posting after the closing process.

Status: See current year finding 2022-003
17

City of San Luis Obispo
Single Audit Reports
Schedule of Findings and Questioned Costs
For the year ended June 30, 2022
Section III – Prior Year Findings, continued
A. Financial Statement Audit Finding, continued
2021-002 Journal Entries Posting and Numbering (Material Weakness) Criteria: Journal entries should be independently prepared, reviewed, and posted to the general ledger with unique identification number. In addition, journal entries should be adequately documented to support its accuracy and purpose.

Condition: During the performance of the audit, we noted the following regarding the City’s journal entry process:
 For 9 out of 60 testing samples, the City was unable to provide us with documentation or documentation was insufficient for journal entries selected for review.  For 8 out of 60 testing samples, the journal entries were not appropriately approved.  For 3 out of 60 testing samples, the journal entries were not properly recorded or calculated though they were still approved.
 The City uses various numbering schemes (a date and time format, a subsidiary ledger-month format, other) that makes it difficult to determine the number of journal entries recorded and the sequence of entries.
 Journal entries can be prepared and posted without system restriction, and no controls in place to ensure the journal entries are approved before posted.

Cause: The City didn’t consistently and effectively execute the review procedures across the fiscal year and no formal written policy regarding the journal entries posting and numbering.

Effect: Journal entries recorded in the City’s accounting system may be inaccurate, unapproved or unsupported.

Recommendation: We recommend that the City implement formal written procedures and policies over journal entries to ensure only accurately prepared and supported journal entries are recorded to the general ledger.

Status: Partially implemented, see current year finding 2022-001. 18

City of San Luis Obispo
Single Audit Reports
Schedule of Findings and Questioned Costs
For the year ended June 30, 2022
Section III – Prior Year Findings, continued
A. Financial Statement Audit Finding, continued
2021-003 Bank Reconciliation (Material Weakness)
Criteria: An effective internal control system over cash and investments includes frequent and timely reconciling of account balances to information provided by the bank and custodians.

Condition: During the performance of the audit, we noted that the City was behind in performing the monthly bank reconciliation, and the June 2021 bank reconciliation process were not appropriately performed until the start of the engagement in October 2021. Also, the final June 2021 bank reconciliation was not balanced and had an unreconciled variance of around $40,000, which was still under investigation by the City.

Cause: The City was not able to perform the bank reconciliations timely as there was not sufficient procedures in place to ensure completion of the process.

Effect: Errors and fraud can go undetected without frequent and timely bank reconciliation.

Recommendation: We recommend the City develop formal written policies over cash and investments that include the timely reconciling of accounts and include cash and investment accounts reported in each fund.

Status: Implemented
19

City of San Luis Obispo
Single Audit Reports
Schedule of Findings and Questioned Costs
For the year ended June 30, 2022
Section III – Prior Year Findings, continued
A. Financial Statement Audit Finding, continued
2021-004 Payroll Module Implementation (Significant Deficiency) Criteria: An effectively implemented payroll system should process the payroll accurately, and an effective internal control system over payroll requires timely and accurate payroll processing.

Condition: During the performance of the audit, we noted that – • The Oracle payroll module has overtime configuration implemented incorrectly, and the City has to manually track the payroll in a spreadsheet and correct the error as it occurs since the implementation.
• The configuration of payroll journal entries posting was implemented incorrectly which caused the variance between the bank record and the City’s general ledger.

Cause: The Oracle payroll module has not been implemented correctly.

Effect: Errors and fraud can go undetected in payroll processing with a large volume of manual corrections needed.

Recommendation: We recommend the City to work with the third-party vendor to correct the implementation of payroll module.

Status: See current year finding 2022-004
20

City of San Luis Obispo
Single Audit Reports
Schedule of Findings and Questioned Costs
For the year ended June 30, 2022
Section III - Prior Year Findings, continued
A. Federal Award Audit Finding
No findings or questioned costs were noted in the prior year. 21

City of San Luis Obispo
Transportation
Development Act Funds
Financial Statements
Years Ended
June 30, 2022 and 2021

City of San Luis Obispo,
California
Transportation Development Act Funds
Financial Statements
Years Ended June 30, 2022 and 2021

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City of San Luis Obispo, California
Transportation Development Act
Funds Report and Financial
Statements
Year Ended June 30, 2022 and 2021
Table of Contents
Page
Independent Auditor’s Report 1
Balance Sheets – June 30, 2022 and 2021 5
Statements of Revenues, Expenditures and Changes in Fund Balance – Years Ended June 30, 2022 and 2021 6
Statements of Fund Net Position – June 30, 2022 and 2021 7 Statements of Revenues, Expenses and Changes in Fund Net Position – Years Ended June 30, 2022 and 2021 8
Statements of Cash Flows – Years Ended June 30, 2022 and 2021 9 Notes to Financial Statements 11
TDA Fund Supplementary Information
Schedule of Revenues and Expenditures – Budget and Actual – Years Ended June 30, 2022 and 2021 20
Report on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in accordance with Government Auditing Standards 21
Independent Auditor’s Report on Transportation Development Act Compliance 23

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INDEPENDENT AUDITOR’S REPORT
To the Honorable Mayor and Members of the City Council
of the City of San Luis Obispo
San Luis Obispo, California
Report on the Audit of the Financial Statements
Opinions
We have audited the accompanying financial statements of the Transportation Development Act (TDA) Fund and the Transit Fund of the City of San Luis Obispo, California, as of and for the year ended June 30, 2022 and 2021, and the related notes to the financial statements as listed in the table of contents.

In our opinion, the accompanying financial statements present fairly, in all material respects, the respective financial position of the TDA Fund and the Transit Fund, as of June 30, 2022 and 2021, and the respective changes in financial position for the year then ended in accordance with accounting principles generally accepted in the United States of America.

Basis for Opinions
We conducted our audit in accordance with auditing standards generally accepted in the United States of America (GAAS) and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the City and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.

Responsibilities of Management for the Financial Statements The City’s management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the TDA fund and the Transit Fund’s ability to continue as a going concern for twelve months beyond the financial statement date, including any currently known information that may raise substantial doubt shortly thereafter.

To the Honorable Mayor and Members of the City Council
of the City of San Luis Obispo
San Luis Obispo, California

Auditor’s Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinions. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements.

In performing an audit in accordance with GAAS, we:
 Exercise professional judgment and maintain professional skepticism throughout the audit.  Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.
 Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the TDA fund and the Transit Fund’s internal control.

Accordingly, no such opinion is expressed.
 Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements.
 Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the TDA fund and the Transit Fund’s ability to continue as a going concern for a reasonable period of time.

We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control– related matters that we identified during the audit.

Emphasis of Matter
As discussed in Note 1, the financial statements present only the TDA Fund and the Transit Fund and do not purport to, and do not, present fairly the financial position of the City, as of June 30, 2022 and 2021, and the changes in its financial position or where applicable, its cash flows for the years ended in accordance with accounting principles generally accepted in the United States of America. Our opinion is not modified with respect to this matter.
2

To the Honorable Mayor and Members of the City Council
of the City of San Luis Obispo
San Luis Obispo, California

Required Supplementary Information
Management has omitted management’s discussion and analysis that accounting principles generally accepted in the United States of America require to be presented to supplement the basic financial statements. Such missing information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. Our opinions on the basic financial statements are not affected by this missing information.

Supplementary Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the Transportation Development Act (TDA) Fund and the Transit Fund’s financial statements. The budgetary comparison schedule is presented for purposes of additional analysis and is not a required part of the financial statements.

The budgetary comparison schedule on page 21 is the responsibility of management and was derived from and relate directly to the underlying accounting and other records used to prepare the financial statements. Such information has been subjected to the auditing procedures applied in the audit of the financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the financial statements or to the financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the budgetary comparison schedule is fairly stated in all material respects in relation to the financial statements as a whole.

Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated January 31, 2023 on our consideration of the TDA fund and the Transit Fund’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the TDA fund and the Transit Fund’s internal control over financial reporting and compliance.

Badawi and Associates, CPAs
Berkeley, California
January 31, 2023
3

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4

2022 2021
Assets
Cash and investments $ 4,421 8,681 $
Total assets $ 4,421 8,681 $
Liabilities and Fund Balance
Liabilities
Unearned revenue $ 4,421 - $
Total liabilities 4,421 -
Fund balances:

Unassigned - 8,681
Total liabilities and fund balance $ 8,681 $ 4,421
City of San Luis Obispo, California
Transportation Development Act (TDA) Fund
Balance Sheets
June 30, 2022 and 2021
The accompanying notes are an integral part of these financial statements. 5

2022 2021
Revenues - intergovernmental allocations $ 36,409 53,681 $ Other financing uses - operating transfers to City of San Luis Obispo (45,000) (36,409) Excess of revenues over other financing uses 8,681 -
Fund balance - beginning of year - -
Fund balance - end of year $ 8,681 $ -
City of San Luis Obispo, California
Transportation Development Act (TDA) Fund
Statements of Revenues, Expenditures and Changes in Fund Balance June 30, 2022 and 2021
The accompanying notes are an integral part of these financial statements. 6

2022 2021
Assets
Current assets:

Cash and investment $ 3,610,074 5,747,671 $
Accounts receivable 3,234 90
Interest receivable 8,401 10,631
Due from other governments 1,877,213 2,805,689
Total current assets 7,635,605 6,427,398
Capital assets:

Infrastructure 221,743 110,972
Buildings and improvements 5,212,278 5,101,506
Transit operating equipment 9,021,099 9,021,099
Construction in progress 2,182 83,058
Total capital assets 14,427,407 14,346,530
Less accumulated depreciation (9,928,541) (9,552,679)
Total capital assets, net of accumulated depreciation 4,498,866 4,793,851 Total assets 12,134,471 11,221,249
Deferred Outflows of Resources
Pension related 145,137 101,832
Other post‐employment benefits related 9,274 18,309
Total deferred outflows of resources 163,446 111,106
Liabilities
Current liabilities:

Accounts payable 450,885 470,446
Accrued salaries and compensated absences 25,184 20,512 Unearned revenues 3,235,731 4,301,164
Total current liabilities 4,792,122 3,711,800
Noncurrent liabilities:

Compensated absences, net of current portion 7,029 3,452 Net pension liability 753,586 555,660
Net other post‐employment benefits liability 39,427 30,808 Total noncurrent liabilities 593,497 796,465
Total liabilities 4,508,265 5,385,619
Deferred Inflows of Resources
Pension related 688 142,711
Other post‐employment benefits related 15,642 23,824
Total deferred inflows of resources 166,535 16,330
Net Position
Net investment in capital assets 4,498,866 4,793,851
Restricted 2,013,909 2,246,897
Total net position $ 6,745,763 $ 6,807,760
City of San Luis Obispo, California
Transit Fund
Statements of Fund Net Position
June 30, 2022 and 2021
The accompanying notes are an integral part of these financial statements. 7

2022 2021
Operating revenues:

Passenger fares $ 172,957 $ 178,184
Special transit fares 150,000 537,500
Other revenue 3,320 3,168
Total operating revenues 713,777 331,352
Operating expenses:

Purchased transportation 2,414,328 2,076,933
Other transportation services 596,413 168,252
Fuel and lubricants 340,952 204,966
Other materials and supplies 43,979 5,638
Salaries and wages 212,935 186,668
Fringe benefits 121,548 42,614
General and administrative 226,183 321,727
Depreciation 535,801 375,863
Total operating expenses 4,023,536 3,851,264
Operating loss (3,137,487) (3,692,184)
Nonoperating revenues:

Transportation Development Act operating grants 1,324,557 73,655 Federal Transit Administration operating grants 1,877,213 2,805,689 SGR 8,468 278,343
Interest (134,748) 878
Total nonoperating revenues 3,075,490 3,158,565
Change in net position (61,997) (533,619)
Net position - beginning of year 6,807,760 7,341,379
Net position - beginning of year, as restated 6,807,760 7,341,379 Net position - end of year $ 6,745,763 $ 6,807,760
City of San Luis Obispo, California
Transit Fund
Statements of Revenues, Expenses and Changes in Net Position Years Ended June 30, 2022 and 2021
The accompanying notes are an integral part of these financial statements. 8

2022 2021
Cash flows from operating activities:

Cash received from customers 2,710,830 $ 354,233 $
Cash payments to suppliers for goods and services (3,000,375) (2,765,080) Cash payments to General Fund for interfund services (226,183) (321,727) Cash payments to employees for services (339,057) (322,583) Net cash used in operating activities (854,785) (3,055,157) Cash flows from noncapital financing activities:

Operating grants received 4,348,549 3,210,238
Net cash provided by noncapital financing activities 3,210,238 4,348,549 Cash flows from capital and related financing activities:

Acquisition and construction of capital assets (80,878) (2,180) Net cash used in capital and related financing activities (80,878) (2,180) Cash flows from investing activities:

Interest on investments (136,978) 969
Net cash provided by (used in) investing activities (136,978) 969 Net increase (decrease) in cash and cash equivalents and investments 2,137,597 1,292,181 Cash and cash equivalents and investments - beginning of year 3,610,074 2,317,893 Cash and cash equivalents and investments - end of year $ 5,747,671 $ 3,610,074 City of San Luis Obispo, California
Transit Fund
Statements of Cash Flows
Years Ended June 30, 2022 and 2021
The accompanying notes are an integral part of these financial statements. 9

2022 2021
Reconciliation of operating loss to net cash used in operating activities:

Operating loss $ (3,692,184) (3,137,487) $
Adjustments to reconcile operating loss to net cash used in operating activities:

Depreciation 535,801 375,863
Changes in operating assets, deferred outflows, liabilities, and deferred inflows:

Accounts receivable 22,881 931,620
Accounts payable 66,445 19,561
Unearned revenue - 1,065,433
Accrued salaries and compensated absences (6,394) (1,095) Pension related deferred outflows and inflows and net pension liability 22,028 (99,208) OPEB related deferred outflows and inflows and net OPEB liability (3,734) (9,472) Net cash used in operating activities $ (3,055,157) (854,785) $ Reconciliation of cash and cash equivalents and investments to the statement of fund net position:

Cash and investment $ 3,610,074 5,747,671 $
Total cash and cash equivalents and investments $ 3,610,074 5,747,671 $ Non cash transactions
Gain (loss) on sale of capital assets $ - - $
Statements of Cash Flows, Continued
Years Ended June 30, 2022 and 2021
City of San Luis Obispo, California
Transit Fund
The accompanying notes are an integral part of these financial statements. 10

City of San Luis Obispo, California
Transportation Development Act (TDA) Fund and Transit Fund Notes to the Financial Statements
June 30, 2022 and 2021
NOTE 1 - The Reporting Entity
The City of San Luis Obispo (the City) operates a fixed route public transportation system within the City limits and to the California Polytechnic State University (Cal Poly). Vehicle operations and vehicle maintenance are provided under contract by a private transportation company. Nonvehicle-related support and administrative services are provided by City staff.

The Transportation Development Act (TDA) Fund (the Fund) of the City of San Luis Obispo, California (the City) is a special revenue fund created by resolution of the City Council to account for the revenues received pursuant to the TDA. Such revenues allocated under specific state statutes are legally restricted to financial expenditures made of the development and construction of local streets and roads, including pedestrian and bicycle facilities.

The Transit Fund is an enterprise fund of the City created by resolution of the City Council to account for the revenues received pursuant to the Transportation Development Act (TDA), Federal Transit Authority (FTA) and the revenues received from the transit operations described above. Such revenues are allocated under specific statutes and are legally restricted to finance expenditures made for transit operations, the development of public transportation systems and transportation planning. When both restricted and unrestricted resources are available for the same purpose, it is the City’s policy to use restricted funds first.

NOTE 2 - Summary of Significant Accounting Policies
Measurement Focus, Basis of Accounting and Basis of Presentation The Transportation Development Act (TDA) Fund’s financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are recognized when measurable and available.

Revenues are considered to be available when they are collectible within the current period or soon enough thereafter to pay the liabilities of the current period. For this purpose, the City considers interest and grant revenues earned but not received as susceptible to accrual under this method. Expenditures are generally recognized at the time liabilities are incurred.

The Transit Fund’s financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. Revenues are recognized when earned and expenses are recognized when incurred regardless of the timing of related cash flows. The Fund distinguishes operating revenues and expenses from nonoperating items. Operating revenues and expenses generally result from providing services in connection with the Fund’s principal ongoing operations. The principal operating revenues of the Fund are charges to customers for transit services. Operating expenses for the Fund include cost of services, administrative expenses, and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as nonoperating revenues and expenses, including non-exchange transactions such as TDA and FTA grants.

Non-exchange transactions, in which the Transit Fund receives value without directly giving equal value in return, include grants.

Revenue from grants is recognized in the fiscal year in which all eligibility requirements have been satisfied. Eligibility requirements include timing requirements, which specify the fiscal year when the resources are to be used or the fiscal year when use is first permitted; matching requirements, in which the Transit Fund must provide local resources to be used for a specific purpose; and expenditures requirements, in which the resources are provided to the Transit Fund on a reimbursement basis.

Annual Financial Statements
The financial statements of the Transportation Development Act (TDA) Fund and the Transit Fund are intended to reflect the financial position; results of operations and cash flows where applicable in conformity with generally accepted accounting principles and are not intended to present the financial position, results of operations, or cash flows of the City of San Luis Obispo, California.
11

City of San Luis Obispo, California
Transportation Development Act (TDA) Fund and Transit Fund Notes to the Financial Statements
June 30, 2022 and 2021

NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued Measurement Focus, Basis of Accounting and Basis of Presentation Special Revenue Fund – Transportation Development Act Fund This fund is used to account for the City’s share of Transportation Development Act (TDA) Article 3 funds that are legally restricted for the improvement and maintenance of street systems including pedestrian and bicycle facilities. Under the City's Financial Plan policies, all TDA Article 3 revenues are allocated for alternative transportation purposes. The purpose of this fund is to account for these revenues.

Enterprise Fund - Transit
This fund is used to account for the operation and maintenance of the City’s transit system. TDA Article 4 and FTA allocations for transit operations are accounted for in this fund.

Cash, Cash Equivalents, and Investments
Cash and cash equivalents consist of cash on hand, cash balances in checking and money market accounts and short- term investments, with an original maturity of three months or less. Investments which are in the City’s internal investment pool are also treated as cash equivalents for the purposes of the statement of cash flows.

Amounts Due from Other Governments
Generally, amounts due from other governments are recorded as revenues when earned. However, when the use of funds is the prime factor for determining eligibility for grants, revenue is accrued when the related expenses have been made on an approved grant.

Capital Assets
Capital assets are recorded at cost and depreciated using the straight-line method over their estimated useful lives, ranging from 5 to 20 years. Capital assets are defined by the City as assets with an initial, individual cost of more than $25,000. Detailed capital assets can be found in Note 5.

Net Pension Liability, Deferred Outflows and Deferred Inflows The City recognizes a net pension liability, which represents the City’s excess of the total pension liability over the fiduciary net position of the pension reflected in the actuarial reports provided by the California Public Employees’ Retirement System (CalPERS) plans (Plans). The City has allocated a proportionate share of the net pension liability, deferred outflows, deferred inflows and pension expense to the Transit Fund. The net pension liability is measured as of the City’s prior fiscal year-end.

Changes in the net pension liability are recorded, in the period incurred, as pension expense or as deferred inflows of resources or deferred outflows of resources depending on the nature of the change. The changes in the net pension liability that are recorded as deferred inflows of resources or deferred outflows of resources (that arise from changes in actuarial assumptions or other inputs and differences between expected or actual experience) are amortized over the weighted average remaining service life of all participants in the respective pension plan and are recorded as a component of pension expense beginning with the period in which they are incurred.

For purposes of measuring the net pension liability and deferred outflows/inflows of resources related to pensions, and pension expense, information about the fiduciary net position of the City’s CalPERS Plans and additions to/deductions from the Plans’ fiduciary net position have been determined on the same basis as they are reported by CalPERS. For this purpose, benefit payments (including refunds of employee contributions) are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value. Projected earnings on pension investments are recognized as a component of pension expense.
12

City of San Luis Obispo, California
Transportation Development Act (TDA) Fund and Transit Fund Notes to the Financial Statements
June 30, 2022 and 2021

NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued Other Post-Employment Benefits (OPEB) Liability, Deferred Outflows and Deferred Inflows For purposes of measuring net OPEB liability, deferred outflows of resources and deferred inflows of resources related to OPEB, and OPEB expense, information about the fiduciary net position of the City’s plan (OPEB Plan), and additions to or deductions from the OPEB Plan’s fiduciary net position, have been determined on the same basis as they are reported by the California Employer’s Retiree Benefit Trust Program (CERBT). For this purpose, benefit payments (including refunds of employee contributions) are recognized when currently due and payable in accordance with benefit terms. Investments are reported at fair value.

Generally accepted accounting principles require that the reported OPEB results must pertain to liability and asset information within certain defined timeframes. For this report, the following timeframes are used:

Valuation Date June 30, 2021 and 2019
Measurement Dates June 30, 2021 and 2020
Measurement Periods July 1, 2020 to June 30, 2021,
and July 1, 2019 to June 30, 2020
Fund Balance
The TDA Fund’s financial statements report fund balance in classifications that comprise a hierarchy based primarily on the extent to which the City is bound to honor constraints on the specific purpose for which amounts in the funds can be spent. The Fund does not have a fund balance in the current fiscal year, therefore classification is not necessary. However, GASB Statement No. 54, Fund Balance Reporting and Governmental Fund Type Definitions, identifies five components of fund balance – nonspendable, restricted, committed, assigned and unassigned.

Nonspendable - This component includes amounts that cannot be spent because they are either (a) not in spendable form or (b) legally or contractually required to be maintained intact.

Restricted - This component consists of amounts that have constraints placed on them either externally by third-parties (creditors, grantors, contributors, or laws or regulations of other governments) or by law through constitutional provisions or enabling legislation. Enabling legislation authorizes the City to assess, levy, charge or otherwise mandate payment of resources (from external resource providers) and includes legally enforceable requirements (compelled by external parties) that those resources be used only for the specific purposes stipulated in the legislation.

Committed - This component consists of amounts that can only be used for specific purposes pursuant to constraints imposed by minute order authorized by the City Council. Also included in this component are encumbrances which represent legal and binding obligations for the acquisition of future goods and services. Those committed amounts established by minute order cannot be used for any other purpose unless the City Council adopts a new minute order so directing. With respect to encumbered amounts, the City may take steps to cancel the order for goods or services and thereby terminate the obligation.

Assigned - This component consists of amounts that are constrained by the City’s intent to be used for specific purposes, but are neither restricted nor committed. The City Manager or Director of Finance are authorized to assign amounts to a specific purpose.

Constraints imposed on the use of assigned amounts can be removed with no formal Council actions.

Unassigned - This classification represents amounts that have not been restricted, committed, or assigned to specific purposes. 13

City of San Luis Obispo, California
Transportation Development Act (TDA) Fund and Transit Fund Notes to the Financial Statements
June 30, 2022 and 2021

NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued Fund Balance Spending Policy
The City follows a practice in which restricted, committed, assigned, and unassigned fund balances are spent when more than one amount is available for a specific purpose. When both restricted and unrestricted resources are available for use, it is the City’s policy to use restricted resources first, then unrestricted resources (committed, assigned and unassigned) as they are needed. When unrestricted resources (committed, assigned and unassigned) are available for use, it is the City’s policy to use committed resources first, then assigned, and then unassigned as they are needed.

Budgets and Budgetary Accounting
The City has received national recognition for its use of a two-year Financial Plan and budgetary process that emphasizes longrange planning and effective program management. Significant features of the City’s two-year Financial Plan include the integration of Council goal-setting into the budgetary process and the extensive use of formal policies and measurable objectives.

The Financial Plan includes operating budgets for two years and a capital improvement plan (CIP) for five years.

Under this multi-year approach, appropriations continue to be made annually; however, the Financial Plan is the foundation for preparing the budget for the second year. Additionally, unexpended operating appropriations from the first year may be carried over for specific purposes into the second year with the approval of the City Manager.

Estimates
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect certain reported amounts and disclosures.

Accordingly, actual results could differ from those estimates.

NOTE 3 - Cash and Cash Equivalents and Investments
Transportation Act Development (TDA) Fund and Transit Fund are pooled with the City’s cash and investments in order to generate optimum interest income. The City pools its available cash for investment purposes. Cash and cash equivalents are combined with investments and displayed as Cash and Investments.

At June 30, 2022 and 2021, cash and investments consisted of the following:

Investment Fair Value Measurements
The City categorizes its fair value measurements within the fair value hierarchy established by generally accepted accounting principles. Investment securities classified in Level 1 of the fair value hierarchy are valued using prices quoted in active markets for those securities. Investment securities classified in Level 2 of the fair value hierarchy are valued using matrix pricing or market corroborated pricing. Matrix pricing is used to value securities based on the securities’ relationship to benchmark quoted prices. 2022 2021
Cash and investment $ 5,756,352 $ 3,614,495
14

City of San Luis Obispo, California
Transportation Development Act (TDA) Fund and Transit Fund Notes to the Financial Statements
June 30, 2022 and 2021

NOTE 3 - CASH AND CASH EQUIVALENTS AND INVESTMENTS, Continued Custodial Credit Risk – Deposits
Custodial credit risk is the risk that in the event of a bank failure, the City’s deposits may not be returned to it. Cash balances held in banks are insured up to $250,000 by the Federal Depository Insurance Corporation. For custodial credit risk associated with deposits, the City follows California Government Code, which requires California financial institutions to secure the City’s deposits by pledging government securities as collateral. The market value of the pledged securities must equal 110% of the City’s deposits. California law also allows financial institutions to secure the City’s deposits by pledging first trust deed mortgage notes equal to 150% of the City’s deposits. All deposits held by financial institutions are fully insured or collateralized with securities, held by the pledging financial institutions’ trust departments in the City’s name.

The City follows the practice of pooling cash and investments for all funds under its direct daily control. Funds held by outside fiscal agents under provisions of bond indentures are maintained separately.

Interest earned on pooled cash and investments is allocated quarterly to the various funds based on the respective fund’s average quarterly cash balance. Interest earned from cash and investments with fiscal agents is credited directly to such funds.

Interest Rate Risk
This is the risk that the market value of securities in the portfolio will fall due to changes in general interest rates. In accordance with its policies in the Investment Management Plan, the City mitigates interest rate risk by:
 Structuring the investment portfolio so that securities mature to meet cash requirements for ongoing operations, thereby avoiding the need to sell securities on the open market before maturity.  Investing operating funds primarily in shorter-term securities.

The City’s investment policy also includes portfolio maturity targets. A minimum of 20% of the portfolio will be invested in securities maturing in one year or less. Up to 80% of the portfolio can be invested in securities with a maturity over one year, with no more than 10% of the portfolio invested in securities with a maturity over five years.

Credit Risk
This is the risk of loss due to the failure of the security issuer or backer. The City’s policies to mitigate credit risk include:
 Limiting investments to the safest types of securities. The California Government Code limits the investment vehicles available to local agencies. The credit risk of these securities is measured by the assignment of a rating by a nationally recognized statistical rating organization.
 Pre-qualifying the financial institutions, broker/dealers, intermediaries and advisors with which the City will do business.

Concentration of Credit Risk
The City’s policies contained in the Investment Management Plan provide guidelines (by type of investment that limits either the dollar amount, the percent of the portfolio or the maturity term) for diversifying the investment portfolio so that potential losses on individual securities will be minimized.
15

City of San Luis Obispo, California
Transportation Development Act (TDA) Fund and Transit Fund Notes to the Financial Statements
June 30, 2022 and 2021

NOTE 3 - CASH AND CASH EQUIVALENTS AND INVESTMENTS, Continued Concentration of Credit Risk, Continued
The City’s Investment Management Plan outlines the following criteria related to portfolio diversification:
 No more than 5% of the City’s portfolio (exclusive of government agency issues or LAIF) shall be placed with any financial institution.
 No more than 25% of the City’s portfolio shall be invested in collateralized certificates of deposit issued by financial institutions.
 Certificates of deposit (negotiable and collateralized) placed by the City shall not constitute more than 15% of the total assets of the institution; and negotiable certificates of deposit will only be placed with institutions with total assets in excess of $200 million and that maintain a ratio of equity to total assets of at least 5%.

Additional Cash and Investment Disclosures
See the City of San Luis Obispo June 30, 2022 and 2021 Annual Comprehensive Financial Reports for additional cash and investment disclosures.

NOTE 4 - Due from Other Governments
At June 30, 2022 and 2021, the amounts due from other governments were as follows:

NOTE 5 - Capital Assets
Capital Assets activity for the fiscal year ended June 30, 2022, was as follows:
2022 2021
Federal Transit Administration - capital and
operating grants $ 1,877,213 $ 2,805,689
Balance Deletions/ Balance
June 30, 2021 Additions Transfers/Adjustment June 30, 2022 Capital assets not being depreciated:

Construction in progress $ 2,182 $ 83,058 $ (2,182) $ 83,058 Capital assets being depreciated:

Infrastructure 221,743 - (110,771) 110,972
Buildings and improvements 5,101,506 - 110,772 5,212,278 Transit operating equipment 9,021,099 - 9,021,099 -
Total capital assets being depreciated 14,344,348 - 14,344,349 1 Less accumulated depreciation (9,552,679) (375,862) (9,928,541) - Total capital assets, net of accumulated depreciation 4,793,851 $ $ (292,804) $ (2,181) $ 4,498,866 16

City of San Luis Obispo, California
Transportation Development Act (TDA) Fund and Transit Fund Notes to the Financial Statements
June 30, 2022 and 2021

NOTE 5 - CAPITAL ASSETS, Continued
Capital Assets activity for the fiscal year ended June 30, 2021, was as follows:

NOTE 6 - Intergovernmental Allocations
The City has been allocated the following funds from the State Transit Assistance Fund (STAF), Local Transportation Fund (LTF) and State of Good Repair (SGR) for the years ended June 30, 2022 and 2021. The amounts have been and will be used for both operating expenses and capital assets.

For the years ended June 30, 2022 and 2021, the City also directly allocated $483,071, and $501,789, respectively, of LTF Article

4.0, Section 99260 funds to San Luis Obispo Regional Transit Authority (SLORTA). These funds are not shown in the accompanying financial statements.

In addition to TDA allocations, the City was also received a Low-Carbon Transit Operations Program (LCTOP) allocation of $256,731 to be spent toward the purchase of two electric transit vehicles. As of June 30, 2022, the City had not yet purchased the vehicles. The LCTOP amount is part of the unearned revenue balance at June 30, 2022.

Balance Deletions/ Balance
June 30, 2020 Additions Transters June 30, 2021
Capital assets not being depreciated:

Construction in progress $ 1 $ 2,181 $ - $ 2,182
Capital assets being depreciated:

Infrastructure 221,744 - 221,743 (1)
Buildings and improvements 5,101,506 - 5,101,506 -
Transit operating equipment 9,021,099 - 9,021,099 -
Total capital assets being depreciated 14,344,349 - 14,344,348 (1) Less accumulated depreciation (9,016,878) (535,801) (9,552,679) - Total capital assets, net of accumulated depreciation 5, $ 327,472 $ (533,620) $ 4,793,851 (1) $ Article Section 2022 2021
LTF 3.0 99233.3 $ 53,681 $ 40,830
LTF 4.0 99260 2,084,383 1,286,416
STAF 6.5 99313 257,229 189,658
STAF 6.5 99314 48,229 29,816
SGR 6.5 99314 8,468 8,481
SGR 6.5 99313 269,862 -
$ 2,451,990 $ 1,825,063
Applicable
Allocating TDA Statute Amount
17

City of San Luis Obispo, California
Transportation Development Act (TDA) Fund and Transit Fund Notes to the Financial Statements
June 30, 2022 and 2021

NOTE 7 - Fare Revenue Ratios
For the years ended June 30, 2022 and 2021 the City had fare revenue ratios of 98%, and 90%, respectively, computed as follows:

Due to the global pandemic, the California legislature passed AB 90 and AB 149. AB 90 prohibits the imposition of a penalty on an operator that does not maintain the required ratio of fare revenues to operating cost during the 2019–20, 2020–21, and 2021-22 fiscal years. AB 149 extends the penalty exemption through the fiscal year 2022-23 as well as authorizes transit operators to include federal grant funds as local funds for the purpose of computing fare revenue ratios.

TDA regulations require a minimum ratio of 20% for a municipality the size of the City. The City is in compliance with the applicable TDA regulations for the year ended June 30, 2022 and June 30, 2021.

NOTE 8 - Pensions
The City contributes to the California Public Employees’ Retirement System (CalPERS) for its employees and participates in an agent-multiple employer plan (Miscellaneous Plan) for its miscellaneous employees. The City has allocated a portion of the Miscellaneous Plan that relates to the Transit Fund. The portion of the net pension liability allocated to the Transit Fund for the years ended June 30, 2022 and 2021 were $555,660 and $753,586, respectively. The portion of the deferred outflows of resources allocated to the Transit Fund for the years ended June 30, 2022 and 2021 were $145,137 and $101,832, respectively. The portion of the deferred inflows of resources allocated to the Transit Fund for the years ended June 30, 2022 and 2021 were $142,711 and $688, respectively. The portion of the pension expense allocated to the Transit Fund for the years ended June 30, 2022 and 2021 were $(99,209) and $22,028, respectively, and is shown as a part of total fringe benefits in the related fiscal year.

Additional Pension Disclosures
See the City of San Luis Obispo June 30, 2022 and 2021 Annual Comprehensive Financial Reports for additional pension disclosures as well as required supplementary information.

NOTE 9 - Other Post-Employment Benefits (OPEB)
The City’s primary other post-employment benefits (OPEB) cost obligation is for retiree health benefits under its election to participate in the CalPERS Health Benefit Program, an agent multiple-employer defined benefit OPEB plan, under the “unequal contribution option.” The City has allocated a portion of the plan that relates to the Transit Fund. The portion of the net OPEB liability allocated to the Transit Fund for the years ended June 30, 2022 and 2021 were $30,808 and $39,427, respectively. The portion of the deferred outflows of resources allocated to the Transit Fund for the years ended June 30, 2022 and 2021 were $18,309 and $9,274, respectively. The portion of the deferred inflows of resources allocated to the Transit Fund for the years ended June 30, 2022 and 2021 were $23,824 and $15,642, respectively. The portion of the OPEB expense allocated to the Transit Fund for the years ended June 30, 2022 and 2021 were $(6,248) and $(565), respectively, and is shown as a part of total fringe benefits in the related fiscal year.
2022 2021
Operating revenues - fares $ 710,457 $ 328,184
Other local support - federal grants 1,877,213 $ 2,805,689 (a) Net Operating revenues 2,587,670 3,133,873
(b) Net operating costs, net of depreciation and vehicle lease costs $ 3,475,401 $ 3,487,735 Exclude capital expenses under uniform system of accounts for purposes of calculating fare revenue ratios but
treated as operating expenses for financial statements (830,773) - (b) Adjusted operating costs for purposes of calculating fare revenue ratios $ 2,644,628 $ 3,487,735 (c) Fare revenue ratio [(a) / (b)] 98% 90%
18

City of San Luis Obispo, California
Transportation Development Act (TDA) Fund and Transit Fund Notes to the Financial Statements
June 30, 2022 and 2021

NOTE 9 - OTHER POST-EMPLOYMENT BENEFITS (OPEB), Continued Additional OPEB Disclosures
See the City of San Luis Obispo June 30, 2022 and 2021 Annual Comprehensive Financial Reports for additional OPEB disclosures as well as required supplementary information.

Operating Transfers
The City expends all amounts for alternate transportation projects in its General Fund or Capital Outlay Fund. LTF monies received by the City are initially deposited in the Transportation Development Act (TDA) Fund and subsequently transferred to the General Fund, where such funds are expended or transferred to the Capital Outlay Fund to be expended on designated transportation projects.

NOTE 10 - Commitments and Contingencies
Regional Transit Authority Pension Expense
The City is presently a member agency of the San Luis Obispo Regional Transit Authority (see ACFR Note 10), a duly established Joint Powers Authority (JPA) comprised of all local cities and the County of San Luis Obispo. The City’s contractual contribution to that entity is approximately 18% of the total expense. The City was advised that the Regional Transit Authority was working with CalPERS to determine whether it is required to enroll certain previously unenrolled transit employees in the CalPERS pension system and whether the entity may be liable for obligations related to the failure to enroll those employees and make contributions on their behalf. On December 10, 2019 the County Board of Supervisors approved a contract for participation of the JPA in the San Luis Obispo County Pension Trust and the Employees Retirement Plan. The current amount of potential CalPERS unfunded liability for the JPA may reach as high as $4 million. It is not anticipated that the City’s annual payment to the JPA will increase to satisfy this unfunded liability.

NOTE 11 - Subsequent Events
Events subsequent to June 30, 2022 have been evaluated through January 31, 2023, which is the date the financial statements were available to be issued. Management did not identify subsequent events that required disclosure. 19

2022 Original Final Actal
Revenues - intergovernmental allocations 45,900$ 45,900$ 53,681$ $ 7,781 Other financing uses - operating transfers
to City of San Luis Obispo (45,900) (97,129) (45,000) 52,129 Excess of revenues over other financing uses -$ (51,229) $ 8,681$ $ 59,910 2021 Original Final Actal
Revenues - intergovernmental allocations 45,900$ 45,900$ 36,409$ $ (9,491) Other financing uses - operating transfers
to City of San Luis Obispo (45,900) (45,900) (36,409) 9,491 Excess of revenues over other financing uses -$ -$ -$ $ - Budget Variance with
Final Budget
Positive
City of San Luis Obispo, California
Transportation Development Act (TDA) Fund
Supplementary Information
Schedules of Revenues and Expenditures - Budget and Actual June 30, 2022 and 2021
Variance with
Final Budget
Positive
(Negative)
Budget
20

REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE

AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED

IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
Independent Auditor’s Report
To the Honorable Mayor and Members of the City Council
of the City of San Luis Obispo
San Luis Obispo, California
We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of the Transportation Development Act (TDA) Fund and the Transit Fund (TDA Program) of the City of San Luis Obispo, California (City), as of and for the year ended June 30, 2022, and the related notes to the financial statements, and have issued our report thereon dated January 31, 2023.

Report on Internal Control Over Financial Reporting
In planning and performing our audit of the financial statements, we considered the City’s internal control over financial reporting (internal control) to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control.

Accordingly, we do not express an opinion on the effectiveness of the City’s internal control.

A deficiency in internal control exists when the design or operation of a control does not allow management or employees in the normal course of performing their assigned functions, to prevent, or detect and correct misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity’s financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance.

Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses or significant deficiencies may exist that were not identified.

To the Honorable Mayor and Members of the City Council
of the City of San Luis Obispo
San Luis Obispo, California
Page Two
Report on Compliance and Other Matters
As part of obtaining reasonable assurance about whether the TDA Program’s financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit and, accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards.

Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the entity’s internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the entity’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose.

Badawi and Associates, CPAs
Berkeley, California
January 31, 2023
22

REPORT ON COMPLIANCE AND ON INTERNAL CONTROL

OVER COMPLIANCE FOR TRANSPORTATION DEVELOPMENT ACT FUNDS Independent Auditor’s Report
To the Honorable Mayor and Members of City Council
of the City of San Luis Obispo
San Luis Obispo, California
Report on Compliance
Opinions
We have audited the City of San Luis Obispo’s (City) compliance with the types of compliance requirements described in Section 6666 and 6667 of the Rules and Regulations of the California Administrative Code in the Transportation Development Act Statutes and Administrative Code for 1987 (the Act) and the allocation instructions and resolutions of the San Luis Obispo Council of Governments applicable to the City’s Transportation Development Act Article 3, 4 and 6.5 Program (TDA Program) for the years ended June 30, 2022 and 2021.

In our opinion, the City complied, in all material respects, with the compliance requirements referred to above that could have a direct and material effect on its TDA Program for the year ended June 30, 2022 and 2021.

Basis for Opinion
We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America (GAAS); the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States; and Section 6666 and 6667 of the rules and regulations of the California Administrative Code in the Transportation Development Act Statutes and Administrative Code for 1987 (the Act); and the allocation instructions and resolutions of the San Luis Obispo Council of Governments. Our responsibilities under those standards and the Act are further described in the Auditor’s Responsibilities for the Audit of Compliance section of our report.

We are required to be independent of the City and to meet our other ethical responsibilities, in accordance with relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion on compliance for the City’s TDA Program. Our audit does not provide a legal determination of the City’s compliance with the compliance requirements referred to above.

To the Honorable Mayor and Members of City Council
of the City of San Luis Obispo
San Luis Obispo, California

Responsibilities of Management for Compliance
Management is responsible for compliance with the requirements referred to above and for the design, implementation, and maintenance of effective internal control over compliance with the requirements of laws, statutes, regulations, rules and provisions of contracts or grant agreements applicable to the City’s TDA Program.

Auditors’ Responsibilities for the Audit of Compliance
Our objectives are to obtain reasonable assurance about whether material noncompliance with the compliance requirements referred to above occurred, whether due to fraud or error, and express an opinion on the City’s compliance based on our audit. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS, Government Auditing Standards, and the Section 6666 and 6667 of the Rules and Regulations of the California Administrative Code in the Transportation Development Act Statutes and Administrative Code for 1987 (the Act) and the allocation instructions and resolutions of the San Luis Obispo Council of Governments will always detect material noncompliance when it exists. The risk of not detecting material noncompliance resulting from fraud is higher than for that resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

Noncompliance with the compliance requirements referred to above is considered material if there is a substantial likelihood that, individually or in the aggregate, it would influence the judgment made by a reasonable user of the report on compliance about the City’s compliance with the requirements of the TDA Program as a whole.

In performing an audit in accordance with GAAS, Government Auditing Standards, and the Section 6666 and 6667 of the Rules and Regulations of the California Administrative Code in the Transportation Development Act Statutes and Administrative Code for 1987 (the Act) and the allocation instructions and resolutions of the San Luis Obispo Council of Governments, we:
 Exercise professional judgment and maintain professional skepticism throughout the audit.  Identify and assess the risks of material noncompliance, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the City’s compliance with the compliance requirements referred to above and performing such other procedures as we considered necessary in the circumstances.
 Obtain an understanding of the City’s internal control over compliance relevant to the audit in order to design audit procedures that are appropriate in the circumstances and to test and report on internal control over compliance in accordance with the Section 6666 and 6667 of the Rules and Regulations of the California Administrative Code in the Transportation Development Act Statutes and Administrative Code for 1987 (the Act) and the allocation instructions and resolutions of the San Luis Obispo Council of Governments, but not for the purpose of expressing an opinion on the effectiveness of City’s internal control over compliance. Accordingly, no such opinion is expressed.
24

To the Honorable Mayor and Members of City Council
of the City of San Luis Obispo
San Luis Obispo, California

We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and any significant deficiencies and material weaknesses in internal control over compliance that we identified during the audit.

Report on Internal Control Over Compliance
A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of the Section 6666 and 6667 of the Rules and Regulations of the California Administrative Code in the Transportation Development Act Statutes and Administrative Code for 1987 (the Act) and the allocation instructions and resolutions of the San Luis Obispo Council of Governments on a timely basis. A material weakness in internal control over compliance is a deficiency, or combination of deficiencies in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of the Section 6666 and 6667 of the Rules and Regulations of the California Administrative Code in the Transportation Development Act Statutes and Administrative Code for 1987 (the Act) and the allocation instructions and resolutions of the San Luis Obispo Council of Governments will not be prevented, or detected and corrected, on a timely basis. A significant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance with a type of compliance requirement of the Section 6666 and 6667 of the Rules and Regulations of the California Administrative Code in the Transportation Development Act Statutes and Administrative Code for 1987 (the Act) and the allocation instructions and resolutions of the San Luis Obispo Council of Governments that is less severe than a material weakness in internal control over compliance, yet important enough to merit attention by those charged with governance.

Our consideration of internal control over compliance was for the limited purpose described in the Auditor’s Responsibilities for the Audit of Compliance section above and was not designed to identify all deficiencies in internal control over compliance that might be material weaknesses or significant deficiencies in internal control over compliance. Given these limitations, during our audit we did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses, as defined below. However, material weaknesses or significant deficiencies in internal control over compliance may exist that were not identified.

Our audit was not designed for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, no such opinion is expressed. 25

To the Honorable Mayor and Members of City Council
of the City of San Luis Obispo
San Luis Obispo, California

The purpose of this report on internal control over compliance is solely to describe the scope of our testing of internal control over compliance and the results of that testing based on the requirements of the Section 6666 and 6667 of the Rules and Regulations of the California Administrative Code in the Transportation Development Act Statutes and Administrative Code for 1987 (the Act), and the allocation instructions and resolutions of the San Luis Obispo Council of Governments. Accordingly, this report is not suitable for any other purpose.

Badawi and Associates, CPAs
Berkeley, California
January 31, 2023
26

City of San Luis Obispo, Council Memorandum
City of San Luis Obispo
Council Agenda Correspondence
DATE: February 15, 2023
TO: Mayor and Council
FROM: Christine Dietrick, City Attorney
VIA: Derek Johnson, City Manager
SUBJECT: ITEM 5i. TERMINATION OF LOCAL EMERGENCY DECLARATION REGARDING THE COVID-19 PANDEMIC
For Council’s review and approval is a draft Resolution (Attachment A) terminating the local emergency declaration regarding the COVID-19 Pandemic, concurrent with the State of California’s termination on February 28, 2023.

ATTACHMENT:

A – Draft Resolution Terminating COVID-19 Emergency

R ________
RESOLUTION NO. ____ (2023 SERIES)

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

OBISPO, CALIFORNIA, TERMINATING THE DECLARATION OF A
LOCAL EMERGENCY FOR THE COVID-19 PANDEMIC EFFECTIVE
FEBRUARY 28, 2023
WHEREAS, on March 4, 2020, Governor Newsom declared a State of Emergency for the State of California and, thereafter, on March 12, 2020, the San Luis Obispo County Public Health Officer declared a health emergency due to the COVID-19 pandemic; and
WHEREAS, on March 17, 2020, the City Council of the City of San Luis Obispo declared a local emergency to exist in the City of San Luis Obispo by Resolution No. 11099 (2020 Series) as a result of conditions of disaster or extreme peril to the safety of persons and property within the City of San Luis Obispo, as defined by California Government Code 8558 (c), caused by the COVID-19 pandemic; and WHEREAS, viral mutations causing successive waves of infection and illness within United States, the State of California, and the City and County of San Luis Obispo have continued since that date and Federal, State and City emergency declarations have remained in place in order to permit ongoing responses necessary to prevent and address the spread of COVID-19 and its related impacts; and WHEREAS, the Governor or the State of California has announced that the COVID-19 State of Emergency will end on February 28, 2023, following the necessary period to evaluate and respond to infections following the winter holidays; and WHEREAS, the City has the tools needed to continue fighting COVID-19 when the State of Emergency terminates at the end of February, including vaccines and boosters, testing, treatments and other mitigation measures, like masking and indoor ventilation as necessary for individuals and vulnerable populations to protect themselves from the most serious impacts of infection and to avoid overwhelming local medical resources; and
WHEREAS, following the termination of the State of Emergency, the City Council now determines that the situation resulting from said conditions of disaster or extreme peril will then be within the control of the normal protective services, personnel, equipment, and facilities of and within the City of San Luis Obispo.

NOW, THEREFORE, BE IT RESOLVED by the Council of the City of San Luis Obispo as follows
SECTION 1. The City Council of the City of San Luis Obispo hereby proclaims the termination of the local emergency, effective concurrent with the termination of the State of Emergency by the Governor on February 28, 2023.

Resolution No. _____ (2023 Series) Page 2
R ________
SECTION 2. All prior actions authorized by the City Council related to the local emergency shall terminate on such dates following this termination of local emergency, as previously specified in the emergency resolutions of this Council, including, but not limited to Resolutions 11231 (permit extensions), 11232 (business support and recovery measures), and 11264 (economic recovery alignment and safe parking measures) (2021 Series).

SECTION 3. The City Council of the City of San Luis Obispo hereby authorizes the City Manager to seek recovery for eligible costs for the City’s response to the COVID-19 Pandemic and reimburse the City for said expenses.

Upon motion of _______________________, seconded by
_______________________, and on the following roll call vote:

AYES:

NOES:

ABSENT:

The foregoing resolution was adopted this _____ day of ___________________ 2023. ___________________________
Mayor Erica A. Stewart
ATTEST:
_________________________
Teresa Purrington
City Clerk
APPROVED AS TO FORM:
__________________________
J. Christine Dietrick
City Attorney
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of San Luis Obispo, California, on _____________________. ___________________________
Teresa Purrington
City Clerk

Item 6a
Department: Public Works
Cost Center: 5101
For Agenda of: 2/21/2023
Placement: Business
Estimated Time: 120 Minutes
FROM: Matt Horn, Public Works Director
Prepared By: Gaven Hussey, Parking Services Manager
SUBJECT: ADOPTION OF THE 2023 ACCESS AND PARKING MANAGEMENT PLAN

RECOMMENDATION

1. Adopt a Draft Resolution entitled, “A Resolution of the City Council of the City of San Luis Obispo, California, adopting the Access and Parking Management Plan; and

2. Authorize the Public Works Director, or their designee, to approve the development and implementation of a ‘locals’ incentive parking program that provides a limited continuation of the first hour free or similar benefit in the parking structures.”

REPORT-IN-BRIEF
City staff with support from a contracted consulting firm, Walker Consultants (Walker), prepared this comprehensive update to the City’s Access and Parking Management Plan (Plan). This report provides an overview of the proposed 2023 Plan and a review of the update process. The report presents the proposed goals, strategies, and action items to guide the future of access and parking demand management throughout the City. A copy of the 2023 Access and Parking Management Plan document is provided as Attachment A to this report and is also available for public review on the City’s Parking page at www.slocity.org/parking.

Staff recommends adoption of a Resolution (Attachment B) to adopt the 2023 Access and Parking Management Plan and to authorize the Public Works Director or their designee to implement a local parking program consistent with the policy framework of the report.

As written, the Plan is intended to be adaptive as new technologies are advancing to help cities better manage access and parking. Allowing periodic revisions to the document ensures it is current with best management practices and continues to align with broader City goals established by Council. Any such revisions would be presented to Council for consideration.

Item 6a

POLICY CONTEXT
Updating the City’s adopted Access and Parking Management Plan (Plan) was one of the major work efforts identified for the Parking Program in the 2021-23 Financial Plan. This work effort supports the Major City Goal of Climate Action, Open Space, and Sustainable Transportation. The General Plan’s Circulation Element requires regular updates to the Plan under section 13: Parking Management. The Plan update focused on incorporating strategies and action items to help achieve the modal split objectives described in the Circulation Element and as shown in Table 1 below.

Type of Transportation Baseline
(as of 2017)
2035
Goals
Motor Vehicles 67.7% 50%
Transit 2.8% 12%
Bicycles 8.3% 20%
Walking, Carpools, and Other Forms 21.2% 18%
Table 1: Circulation Element Modal Split Objectives
The Plan update also focused on including strategies and action items to support the City’s Climate Action Plan’s greenhouse gas emissions goal of carbon neutrality by 2035 as well as several General Plan Land Use Element policies and programs such as parking in-lieu fees for downtown developments, downtown residential parking, and locations of new public parking facilities.

DISCUSSION
Background
The City’s Access and Parking Management Plan (Plan) is the Parking Services Program’s foundational strategic document and provides guidance on access to parking facilities and related resources throughout the City. The Plan focuses primarily on the downtown area but also includes specific actions for residential neighborhoods that qualify to participate in the Preferential Parking Permit District Program. The Plan also serves as an instrument to implement access and parking management strategies and projects detailed in the General Plan’s Circulation Element.

As part of a Zoning Regulations update in 2011, the Plan underwent minor revisions to incorporate policies for downtown residents, but the document remained largely unchanged since the last major update in 2002. Over the past two decades, significant advancement in parking management strategies along with new technologies focused on parking services have occurred. This comprehensive update ensures that the City is using the best practices to meet the current and future needs of our diverse community regarding access and parking.

Item 6a
The 2023 Plan provides policy direction and guidance to move the community toward a more holistic approach to access and parking in the City. This will be achieved by (1) incorporating innovative, and proven best practices from cities around the world; and (2) by aligning City policy documents including the Active Transportation Plan, Circulation and Land Use Elements, Climate Action Plan, and the Downtown Concept Plan, with the 2023 Plan.
2023 Access and Parking Management Plan at a Glance
The Plan is organized into five main areas:

1. Section 1: Introduction. Explains the purpose of the Plan, provides an overview of the accomplishments from the 2011 amended version of the Plan, and discusses the relationship between the Plan and other City guiding documents.

2. Section 2: Summary of the Plan: Provides an overview of the Plan update process including existing conditions, community outreach efforts, case studies and peer city research, and goals for the updated Plan.

3. Section 3: Existing Conditions Study. Provides a review of the existing access and parking conditions documented by Walker which partnered with a third-party operator, IDAX Solutions, to conduct a parking supply and demand analysis for the downtown area and the preferential parking permit districts.

4. Section 4: Community Outreach and Engagement. Summarizes the extensive community outreach efforts used to inform the Plan update.

5. Section 5: Summary of Recommendations. Based on the information gathered and described in the prior section of the report, this section details the goals, policies, and action items. Each action item provides a summary of the related existing conditions, rationale for its inclusion in the report, related City policies, timing for implementation, responsible party(ies), and implementation and monitoring plan.

Major Changes from the 2011 Access and Parking Management Plan to the 2023 Plan
Parking Services is one component of a broader effort to gradually shift travel habits from reliance on single occupancy vehicle (SOV) trips to more sustainable options such as biking and walking. The updated 2023 Plan focuses less on managing parking permits, hourly rates, and time limits; and more on promoting active transportation usage, outreach and education about modes of travel, and supporting other departments and agencies in accomplishing mutual goals and objectives. Through a collaborative approach, Parking Services can still provide high quality services and promote downtown and neighborhood vitality while implementing action items to incentivize non-vehicle travel and access patterns.

While the 2011 Access and Parking Management Plan focused heavily on the downtown area it had few policies and actions for residential areas of the City. New parking patterns have emerged over time which affect residents throughout the City and management strategies are proposed in the 2023 Plan to balance the access and parking needs for residents, visitors, business owners, and employees of the City.

Item 6a
Previous Advisory Body Action: ATC and PC
Active Transportation Committee
On November 3, 2022, the Active Transportation Committee (ATC) reviewed and commented on draft action items related to the bicycle and pedestrian goals established in the 2023 Plan. The ATC also reviewed and commented on the active transportation specific programs and initiatives implemented by the case study cities. Below is a summary of the comments and feedback from the ATC meeting. a. Allow the Parking Fund to be a funding source for ATP projects1 b. Find ways to improve safety for cyclists after dark
c. Identify safe places for parking bicycles
d. Consider including a guaranteed ride home program
e. Gather data on how many people use the park and ride lot and bike into the City f. Address circulation issues caused by long-term parking g. Look at temporary rental bike lockers used in other cities Planning Commission
On December 14, 2022, the Planning Commission reviewed and commented on the draft goals, policies, and action items related to the General Plan’s Circulation Element, Downtown Concept Plan, and the Climate Action Plan. Public comment was received.

Below is a summary of the comments and feedback from the Planning Commission meeting.*
a. Consider additional park and ride options
b. Support use of parklets where appropriate
c. Explore an Eco Pass from Boulder as a good option to assist with development d. Consider downtown resident passes
e. Consider removing five (5) parking spaces on Chorro and Monterey for bike safety f. Video monitor bike lockers for added security
* NOTE: Walker incorporated the comments and feedback into the final report for the Plan update. However, responses to some comments and additional data collection are not part of this project’s scope and would need to be completed separately.

PLAN UPDATE PROCESS: A DEEPER DIVE
In June 2022, Parking Services staff contracted Walker Consultants, a leading provider of access and parking planning services, to help guide the update of the 2023 Access and Parking Management Plan (Plan). Walker focused their efforts on four main areas:
a. Evaluating the existing conditions of access and parking in the City, b. Engaging the community in an extensive outreach effort, c. Collecting best management practices from comparative agencies, and d. Then developing relevant goals, policies, and action items based on the data collected and input received.

1 It is important to note that parking fees are not programmed in the Parking Fund for support of ATP and thus would be a new expense not covered in the fund analysis.

Item 6a

1. Existing Conditions Study
Walker studied and inventoried the existing access and parking conditions in the City relevant to the Plan update. Existing conditions includes summary information on the City’s mobility and access systems, accomplishments from the current Plan, overview of the existing parking programs, parking supply and demand, and current marketing materials and methods used by Parking Services. The parking supply and demand section constitutes the bulk of the study because of the extensive information generated by the data collection and analysis process.2
The peak observed parking demand downtown occurred at 7:00pm on Thursday, July 21st during Farmer’s Market. Figure 1 shows the percent occupancy of the public on- and off-street facilities during this time. The overall utilization rate of downtown public parking was 84.6% during the 7:00pm peak which is just below the 85% threshold used in the parking industry to measure when a parking system is effective at managing demand. (When parking is observed to be around the 85% threshold, then spaces are well-used, but it is still possible for drivers to find a space without cruising around waiting for another driver to leave.) Off-street facilities were used more than on-street parking spaces. This is due to the proximity of off-street parking facilities to the downtown core while on-street spaces are dispersed over a larger geographic area.

2 Walker conducted two separate car counts, in 2022 (July 21st and 23rd, and September 22nd and 24th) to determine parking demand in both downtown and in the Preferential Parking Permit Districts (Districts).

Occupancies in the downtown area were collected every two hours between 9:00 a.m. and 9:00 p.m. on Thursday and Saturday of the same week in both July and September. For the Districts, one occupancy count was conducted for each district within the district’s hours of enforcement. The July counts show summer parking demand when tourism is highest, and the September counts show demand when Cal Poly and Cuesta College are in session. There were no significant anomalies like holidays or major events during either time frame that would have skewed the results of the data collection.

Figure 1: Heat Map
for Thursday, July
21, 2022 at 7:00pm

Item 6a
Below are the key findings from the parking supply and demand data collection and analysis:

1. Parking demand followed very similar patterns in July and September, with slightly lower utilization observed during the September data collection.

2. The parking utilization rate in the downtown core was always below the 85% recommended threshold. Even at the peak demand hour, during the Thursday Farmer’s Market, downtown parking utilization did not exceed this threshold, and parking spaces were available; primarily, in the outlying areas.

3. Outside of the Farmer’s Market, the overall peak utilization rate ranged from 54% to 63%.

4. San Luis Obispo has been successful in encouraging people to park off-street in the downtown study area through parking rate strategies and marketing.

5. Time restrictions for loading zones, 30-minute, and 2-hour spaces have successfully resulted in greater availability of these high-demand spaces, relative to 10-hour and unrestricted spaces.

6. Average utilization in the permit districts ranged from 25% in July to 53% in September while permit compliance rate averaged 81% during both data collection periods.

Walker’s Existing Conditions Study concluded that the parking supply in both the downtown and residential areas are currently sufficient to meet peak demand periods.

Much of the available parking is at locations of greater distances to the core of downtown.

Parking Services has been successful in implementing many of the goals and action items in the current APMP through various policies and programs. Marketing and communication have increased over the recent years but should be expanded to reach a broader audience about parking options and availability. Recently adopted technology and approved capital projects will improve access and information for public parking users.

2. Community Outreach and Engagement
A multi-pronged outreach and engagement strategy was used and included stakeholder interviews, online surveys, a virtual town hall meeting, and presentations to City advisory bodies and Downtown SLO. The Plan update was advertised on social media over a dozen times (about one per week between August and December 2022). Parking Services staff periodically updated the Parking webpage with information about the Plan’s update progress and opportunities for upcoming public input on the Plan. Email notifications were also sent out before major milestone events like the virtual town hall meeting and the Active Transportation Committee meeting. The feedback received through the outreach and engagement process helped to inform the strategies and action items included in the final report.

Item 6a
a. Stakeholder Interviews
Walker met with and received input from multiple internal and external stakeholders. External stakeholders included Downtown SLO, Save Our Downtown, Residents for Quality Neighborhoods, Cal Poly student and faculty representatives, and People’s Self-Help Housing. Walker also reached out to RACE Matters, SLO Climate Coalition, and Housing Authority of SLO but were unable to reach someone for comment. In total, Walker met with over 20 individuals and representatives during 14 different interview sessions.

During the stakeholder interviews, people expressed a general concern about the cost and complexity of parking options, especially for long-distance employees, and the lack of non-drive options for many trip types. Stakeholders also asked:

1. What is the future of the parklet program and tradeoffs compared to more permanent streetscape improvements?

2. How does Cal Poly impact parking, transportation systems, and use of mobility routes?

3. What will be the result of the various permit system changes, parking fee increases, garage entry monitoring updates, and other program updates? Will this eliminate any of the parking affordability efforts and subsidies the City has created?
The Plan supports implementation of the parklet program and more permanent improvements but does not discuss tradeoffs between the two. Cal Poly’s impact on parking, particularly in the neighborhoods, is evidenced in the existing conditions study; however, counts were not conducted on the transit systems or use of mobility routes, so impacts on these systems are not discussed. Certain actions in the 2023 Plan recommend reduction in parking subsidies and increases in permit rates with conditions to accommodate low-income individuals. The intent is to provide more equitable programs that do not adversely impact sensitive populations.
b. Virtual Town Hall
Walker and City staff held a virtual town hall meeting on September 21, 2022, to engage directly with community members regarding perceptions and attitudes toward access and parking needs in both the downtown area and in residential neighborhoods. The event was advertised on the City’s website, via press release, frequent social media posts, and printed flyers handed out to downtown businesses.

The event included live polling of participants, breakout rooms, and an open-ended discussion period at the end of the event, which 22 community members attended.

Approximately 17 were able to participate in Mentimeter which uses presentation software and features slideshows and real-time polling of participants. (Some attendees were limited in their participation due to limited video and audio functionality). A recording of the meeting was posted on the City’s YouTube page for future viewing.

Item 6a
c. Online Community Survey
An online community survey was made available to the general public during September 2022. The survey was advertised on social media, the City’s Parking page on the City website, and at the Virtual Town Hall meeting. The survey collected feedback from almost 300 individuals on topics ranging from travel patterns to long-term sustainability goals and concerns about recent changes in downtown access. The survey was available in both English and Spanish; however, no Spanish surveys were completed.

Below is a summary of the key findings concerning downtown access and parking:

1. 62% of respondents indicated they are residents living outside the downtown area.

2. Over 74% of respondents drive a personal vehicle to get downtown.

3. Half of respondents stay an average of one to three hours when visiting downtown.

4. 75% of respondents think climate goals should play ‘some’ to ‘a lot’ of a role in the City’s Access and Parking Management Plan.

5. 48% of respondents support encouraging private parking lots to share available spaces with the public.

6. Proximity to destinations and price of parking were cited as the two most important factors to respondents when parking downtown.

7. Half of respondents find it very easy or somewhat easy to walk, bike, or take the bus to downtown.

Below is a summary of the key findings from the online community survey concerning Preferential Parking Permit Districts:

1. Only 8% of all respondents live in one of the Preferential Parking Permit Districts.

2. 50% of respondents believe the program is sufficient to ensure parking availability for permit holders.

3. 70% of respondents believe the number of permits sold per household should be changed. (The survey did not indicate whether more or fewer permits should be sold).

One of the critical questions from the online community survey that informed the development of action items included in the final report asked, “Which of the following active mobility solutions would you be willing to consider?” Respondents were allowed to select more than option. Of the 240 respondents that answered the question, 70% indicated support for improving sidewalk and pedestrian connectivity, 48% supported cash benefits for downtown employees who do not drive alone to work, and 37% supported the addition of more bike racks. Figure 2 shows the complete list options and the corresponding support levels from respondents.

Item 6a
Figure 2: Responses to Question 30 from the Online Community Survey d. Downtown SLO Presentation
In December 2022, staff met with Downtown SLO’s Parking and Access Committee to provide a progress report on the update process and to present the draft goals, strategies, and action items. The Committee provided the following suggestions at the meeting and forwarded to the Planning Commission which reviewed them the following week.3

1. Keep the first hour free in the structures.

2. Implement dynamic parking rates on-street.

3. Offer downtown employees safe and reasonably priced options.

4. Involve Downtown SLO representative in the upcoming pricing feasibility study.

5. Include an overall update on the Parking Fund’s health in the plan to that plan progress can be analyzed and included.

6. Consider future parking needs for new developments.

7. Focus on marketing and communication efforts to educate people about this Plan.

3 Some of the suggestions provided by Downtown SLO are not within the scope of the plan update and would have to be addressed separately through the City’s financial plan process.

70.4%

49.2% 47.9%

38.8% 37.5% 37.1%

22.9%
0%
20%
40%
60%
80%
100%
Support
Q30: Which of the Following Active Mobility Solutions
Would You Be Willing to Consider? (Select All That Apply) Improve Sidewalk Conditions and Connectivity
Improve Public Transportation Frequency and Route Options Provide Cash Benefits to Downtown Employees Who Use Non-Drive-Alone Methods Build More Residnetial and Commercial Uses Downtown
Construct More Quality Bikeways
Add More Bike Racks
Other

Item 6a
e. Online Community Poll
Walker also developed a five-question online poll to follow-up to the online survey.

The quick poll was made available through the City’s Open City Hall portal and was open during the 2nd half of December 2022. The poll was advertised through a press release and social media. Of the 216 respondents, 42% indicated they would walk, bike, or use transit to get to and around downtown if more bikeway routes were added. Figure 3 shows the full list of improvements and responses that would help encourage respondents to access the downtown area other than in a drive-alone vehicle.

Figure 3: Responses to Question 3 from the Online Community Poll Overall, the community outreach and engagement effort reached a diverse range of individual community members and community partners. The feedback collected demonstrated support for expansion of active transportation options and integration of those options with parking programs. However, many people that find existing paid parking systems confusing or inconvenient for their needs but feel reliant upon them given the available options. There is an opportunity for Parking Services to the foster education around active transportation options in the City while still providing user-friendly vehiclefocused programs for those that cannot easily adopt other transportation methods.

3. Case Study Cities and Best Management Practices
Historically, the City has used in-state coastal cities as comparative agencies for parking management policies and practices. However, many coastal cities in California either have limited parking programs that are not vertically integrated like our City’s program or are too close to major metropolitan areas and are impacted by their regional influences.

Both scenarios make an apples-to-apples comparison difficult.

Item 6a
City staff and Walker chose to look beyond California to other states and cities abroad that are implementing leading best practices and technologies to manage access and parking. The comparative agencies demonstrate effective parking demand reduction strategies and increase in multi-modal mobility that can help to further the goals outlined in the Active Transportation Plan, the Downtown Concept Plan, and the General Plan’s Circulation Element. The cities included for the comparative review area:

1. Boulder, Colorado

2. Sacramento, California

3. Ann Arbor, Michigan

4. Portland, Oregon

5. Rotterdam, Netherlands

6. Strasbourg, France
Table 2 outlines the categories used by Walker to organize the programs implemented by the comparative agencies and examples for each of the categories.

Table 2: Example Best Management Practices by Category
Best Practice
Category Example Programs and Policies
Employee
Parking Demand
Reduction
Transportation Wallet (Portland, OR): A collection of passes and credits for use on transit, streetcar, bike-share, e-scooters, and car-share. Transportation Wallet is funded through parking permit surcharge fees, set by the City’s parking committees.

Area Parking
Permit Programs
Non-Resident Commuter Permits (Boulder, CO): Allows nonresidents to park in some neighborhood parking permit zones.

Non-resident commuter permits are available on a limited basis and limited to certain blocks within the designated zone.

Pricing Strategies
Occupancy-based paid parking Expansion (Rotterdam): Uses occupancy thresholds to determine where paid parking should be introduced. If occupancy is over 60% and new housing will be developed, then paid parking is introduced.

Multimodal
Mobility Measures
Mobility safety fines (Boulder, CO): Parking violations that impede mobility safety, such as parking in a bike lane, carry an additional penalty and help fund active transportation projects.

Financial
Integration
Climate and Mobility Fee (Portland, OR): Charges a “Parking Climate and Equitable Mobility Transaction Fee of 20 cents” per public parking transaction to further TDM initiatives.

Communication
Communications campaigns (Strasbourg, FR): The “Ecomobilité” campaign challenged car dependence with active transportation posters, brochures, and other messaging throughout the city.

Item 6a
The City already employs many best practices for parking management and transportation demand management including some identified among the comparative agencies. The Case Study Cities section of the report explores other successful practices that are helping communities manage parking and access. The comparative agencies reveal how other practices might address needs and opportunities like those facing the City and might further integrate the Access and Parking Management Plan with the goals of the City’s other guiding documents. The other best practices not currently employed in the City helped to form the strategies and action items put forth in the final report.

4. Recommendations: Goals, Strategies, and Action Items Walker has developed two main goals for the Access and Parking Management Plan update under which strategies and action items are laid out to achieve each goal (shown in italics). The purpose of the goals is to recognize the focus and commitment the City has made to reduce climate-changing emissions, support multimodal trip objectives, and to improve the safety and experience of the public space for all users.

Goal 1: Promote mode shift and emissions reductions by making biking, walking, and transit more attractive than driving alone, fostering an economically and culturally vibrant downtown.

Strategies to accomplish this goal:

A. Reduce subsidies for parking
B. Create investments and programs for active transportation and transit C. Reduce barriers to active transportation
D. Increase awareness and appeal of sustainable travel options Goal 2: Support Parking Services success by using parking spaces efficiently, promoting fiscal responsibility, ensuring availability, improving the customer experience, and fostering an economically and culturally vibrant downtown.

Strategies to accomplish this goal:

A. Use parking pricing to influence demand and distribution B. Regulate use of the curbside space to influence demand and distribution of parking C. Use technology and wayfinding to improve the parking experience D. Use parking permit districts to maximize parking capacity Each of the strategies contain specific action items that Parking Services should implement to align operations with the goals and policies of other City guidance documents. Table 3 below lists example action items, how they relate to other City policies, timing of the action, the party responsible for implementation, and performance measures. Some of the language for each example action has been simplified for formatting purposes. See the full report for a detailed description of each action item.

The report recognizes that some of the action items cannot be accomplished solely through the Parking Services office and will require coordination with other City divisions/departments as well as community partners.

Item 6a
Rationale Action Detail Timing City Policies the
Action Supports
Responsible
Party
Implementation /
Monitoring Plan

1.A.2 Expand Downtown Parking Permit Options to Include Daily Parking Bundles When parking is
charged by the day,
people may consider
whether to drive and
parking each day
Offer reduced rate bundle
of daily parking passes Short-term
-Circulation Element

2.1.1. and 2.1.4
-CAP 3.1.B
Parking Services
Ex. Track sales and
usage of daily permits
versus monthly permits

1.B.2 Implement a Bikeshare Program
Bike share programs
provide access to
bicycles for travel
around downtown and
to Cal Poly
Partner with a third-party
to operate a bike share
program
Medium-term
-Circulation Element
mode shift goals
-CAP 2.2A
-ATP Policy 3.7
-DCP Action 37
Transportation,
City Administration
Ex. Implement bike share
program. Track number of
people using the program

1.C.6 Continue to Coordinate with SLOCOG on their Transportation Programs Coordinating with
regional programs helps
City reach mode share
goals
Coordinate with SLOCOG
on programs that promote
active transportation
On-going
-Circulation Element
Policy 2.1.1.
-ATP Policy 4.8 and

6.2 Transportation,
Parking, SLO
Transit
Ex. Track number of
annual coordination
efforts

2.A.3 Implement Demand-Based Pricing
Implement demandbased pricing
Ensures parking
availability and increased
space turnover in highly
utilized spaces.

Long-Term
-Circulation Element
Policies 2.1.4 and

13.1.1 -DCP Action 52
Parking
Ex. Track parking
occupancy at least every
6 months

2.C.5 Continue to Expand Off-Street Electric Vehicle (EV) Charging for Vehicles and E-bikes There is a need for
additional EV chargers
Evaluate opportunities to
expand EV charging in
off-street facilities
Medium-term
-ATP Policy 3.2A
-CAP Pillar 4
-DCP Action 48
Parking Services
Ex. Track number of EV
stations and e-bike
charging stations installed
downtown
Table 3: Example Action Items from the 2023 Access and Parking Management Plan

Item 6a
If adopted, the 2023 Plan will inform the upcoming Financial Plan process and requests presented as part of the Parking Fund budget forecast. Some of the action items will not have significant budget implications because they are components of existing programs and initiatives already being implemented.

Financial Feasibility Study
During the Plan update process, staff and Walker heard concerns about the parking rate changes approved as part of the 2022-23 Supplemental Budget. At the budget adoption, Council approved an elimination of the first hour free in the structures and an increase in hourly parking rates up to 150% above current rates by July 2025. Council made the decision based on funding scenarios for the new Cultural Arts District parking structure scheduled to break ground Fall 2023. Downtown SLO requested Walker analyze the financing scenarios for the new structures and whether there is a true need to increase rates and to eliminate the free first hour in the structures.

The request is outside the scope of the work agreed upon to update the Access and Parking Management Plan. Similar work has also not been completed for previous plan updates because the Access and Parking Management Plan is a policy document that recommends certain programs or actions take place while a feasibility study is typically project-specific and recommends prescriptive action based on the findings. A feasibility study can be undertaken but as a separate work effort and the 2023-25 Financial Plan would identify it as a work program
Develop and Implement a ‘Locals” Incentive Parking Program During the Plan update process, staff received feedback from community members and local businesses on the importance to downtown commerce and activity created through the current offering of limited free parking at the parking structures that is subsidized by the Parking Fund. As previously referenced, Council approved the elimination of the first hour free in the structures in accordance with the financial projection associated with funding scenarios for the new Cultural Arts District parking structure. Staff were directed to return to Council in the Spring of 2023 to discuss strategies and tactics on parking options and ways to support downtown and the community members who rely on this benefit.

Staff are seeking authorization to develop and implement a ‘Locals’ incentive parking program that would allow for a limited continuation of the current subsidies for qualifying local community members. This program would require individuals to provide proof of local residency and once approved a nominal fee associated with the cost of operating the program. In turn the community member would be provide the first hour free or a similar benefit in designated parking structures. Staff are actively working with vendors to develop a program. The program would be available to be implemented to coincide with the implementation of approved rate increases. Council would be notified prior to the implementation. Staff will review financial impacts and make recommendations to adjust accordingly to ensure that Capital Projects are not jeopardized.

Item 6a

CONCURRENCE
Representatives from the Public Works Department, Community Development Department, and City Administration were interviewed by Walker to gather input on existing conditions and future vision for access and parking in the City. Representatives from the same departments reviewed and provided comments on the draft version of the report.

The Active Transportation Manager worked closely with Parking Services staff to link Active Transportation Plan action items with key areas of the Plan update to ensure consistency and alignment with broader City initiatives.

ENVIRONMENTAL REVIEW
The California Environmental Quality Act (CEQA) does not apply to the recommended action in this report because the recommended action does not constitute a “Project” under CEQA Guidelines Sec. 15378. The Access and Parking Management Plan update is an administrative activity of a government agency that will not result in direct or indirect physical impact on the environment. Future projects, programs, and actions listed in the Access and Parking Management Plan may be subject to CEQA, per the normal environmental review process.

FISCAL IMPACT
Budgeted: Yes Budget Year: 2022-23
Funding Identified: Yes
Fiscal Analysis:

Funding
Sources
Initial Project
Cost
Change Order(s)
Approved
Total Project
Cost
Remaining
Balance
Parking Fund $ 99,905 $ 37,800 $ 137,705 $ 95
Total $ 99,905 $ 37,800 $ 137,705 $ 95
The Access and Parking Management Plan (Plan) update was funded through the adoption of the 2021-23 Financial Plan. The initial budget was $100,000 and Walker’s proposal came in at $99,905 but a change order of $37,800 was needed and approved by the City Manager to cover additional costs for data collection and community outreach.

The change order was funded through the Parking Fund’s Contract Services account.

Implementation of action items detailed in the Plan are not covered in the fiscal impact section of this report but will be analyzed and presented as individual actions are taken to Council for review and approval.

Item 6a

ALTERNATIVES
City Council could request more information, suggest substantial changes, and/or otherwise request that the 2023 Access and Parking Management Plan be presented for adoption at a date certain. Staff does not recommend these actions. The update has included extensive outreach, data collection and analysis, and was reviewed by numerous stakeholders. The adopted Plan will also inform the upcoming budget process for the Parking Fund and timely action is beneficial to this process.

ATTACHMENTS
A - 2023 Access and Parking Management Plan
B - Draft Resolution Adopting the 2023 Access and Parking Management Plan

Access and Parking Management Plan
DRAFT | FEBRUARY 14, 2023

CITY OF SAN LUIS OBISPO
To provide community members and visitors with a top
tier parking program that maximizes state of the art
technology and balances out pricing and access.

San Luis Obispo Access and Parking Management Plan
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San Luis Obispo Access and Parking Management Plan 1
Acknowledgments
Thank you to the many community members who contributed to the Access and Parking Management Plan.

CITY COUNCIL
Erica A. Stewart, Major
Jan Marx, Vice Mayor
Andy Pease
Michelle Shoresman
Emily Francis
Carlyn Christianson (former)

PLANNING COMMISSION
Steve Kahn (Chair)
Michael Hopkins (Vice Chair)
Justin Cooley
Dave Houghton
Bob Jorgensen
Juan Munoz-Morris

PHOTOGRAPHY AND

COMMUNICATIONS
JPW Communications

PROJECT CONSULTANTS
Walker Consultants

COMMUNITY PARTNERS
California Polytechnic University
Downtown SLO Staff and the Parking
and Access Committee
People’s Self-Help Housing
Residents for Quality Neighborhoods
Save Our Downtown

ACTIVE TRANSPORTATION

ADVISORY COMMITTEE
Russell Mills (Chair)
Lea Brooks (Vice Chair)
Jill Caggiano
Francine Levin
Kimmie Nguyen
Jonathan Roberts

CITY MANAGEMENT
Derek Johnson, City Manager
Shelly Stanwyck, Assistant City
Manager

CITY STAFF
Gaven Hussey
Alex Fuchs
Matt Horn
Adam Fukushima
Rachel Cohen
The community had a variety of opportunities to learn about the Plan and provide input on the Plan’s recommendations through the following means (described in further detail in Section 04 and Appendix C: Community Outreach Report):
• Community workshops
• Community surveys
• Quick polls
• Presentations and meetings with Planning Commission, the Active Transportation Committee, Downtown SLO, community associations, business groups, and other entities.
• Informational materials including a project fact sheet, presentations, and postcards • Social media engagement on Instagram, Nextdoor, Facebook • Postcards to local businesses to inform the community about the study and opportunities for input The combination of understanding existing policies and plans, parking occupancies and behavior analysis, a review of existing transportation options, plans for the future, input from the community, and best practices provided the necessary information to develop this Plan.

2 San Luis Obispo Access and Parking Management Plan
Table of Contents
01 Introduction p. 05
02 Summary of The Plan p. 09
03 Existing Conditions Summary p. 15
04 Community Outreach and Engagement Summary p. 25
05 Summary of Recommendations p. 31
06 Detailed Recommendations p. 51
G Glossary p. 87
A Appendices (as separate documents) p. 88
A. Existing Conditions and Parking Utilization Report
B. Case Study and Peer City Review
C. Community Outreach Report
D. City Council Resolution ## To be updated after adoption

San Luis Obispo Access and Parking Management Plan 3
List of Figures and Tables
Figure 1 Diagram of influential City plans p. 7
Figure 2 Project schedule summary p. 9
Figure 3 Downtown parking - Thursday peak p. 10
Figure 4 Downtown parking - Friday peak p. 10
Figure 5 Downtown parking utilization day-long p. 11
Figure 6 Downtown Concept Plan illustration p. 16
Figure 7 Map of downtown parking p. 19
Figure 8 Peak use measured parking in downtown p. 22
Figure 9 Downtown parking utilization - July 21, 2022 p. 23 Figure 10 Downtown parking utilization - July 23, 2022 p. 23 Figure 11 Preferential Parking Permit district utilization p. 24 Figure 12 Virtual Town Hall screenshot p. 27
Figure 13 Downtown Concept Plan street classifications p. 34 Figure 14 Diagram of employee cash out programs p. 55
Figure 15 Street Types - Downtown Concept Plan p. 65
Figure 16 SLO Tiered Parking Prices Map p. 75
Figure 17 Public Works / Parking Services website menu p. 80 Table 1 Downtown on-street parking capacity p. 11
Table 2 Downtown off-street parking capacity p. 11
Table 3 Mode split objectives for 2030 p. 15
Table 4 Current bicycle parking requirements p. 61
Table 5 Parking hourly rate changes, 2023 and 2025 p. 70 Table 6 Downtown permits and daily rates comparison p. 71

4 San Luis Obispo Access and Parking Management Plan
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San Luis Obispo Access and Parking Management Plan 5
What is Access and Parking Management?
San Luis Obispo’s downtown is the heart of the City. It is a vibrant place centered around culture, arts, history, and most importantly, people. Visitors and residents alike go there to walk the tree-lined streets, dine, shop, or simply people-watch. Its vitality relies upon balancing the various interests of all who live, work and visit the City and also reflects its holistic approach to fostering travel options and easy access with an emphasis on equity, sustainability, and economic resilience.

The City of San Luis Obispo has a long history of sustainability and is one of the most walkable and bike-friendly places in the country.

It has one of the most ambitious Climate Action Plans in the nation, and is aimed at reaching climate neutrality by 2035. The City’s recently adopted Active Transportation Plan includes strategies to repurpose and/or reconfigure on-street parking for pedestrians and bike space and explore the feasibility of allocating parking revenues towards active transportation improvements to reduce parking demand. The General Plan Circulation Element further advocates for reducing the number of vehicle trips and parking demand through use of technology and supporting policies, and the Downtown Concept Plan prioritizes pedestrian and bike safety by advocating for design of streets with pedestrians in mind first, and directs drivers to parking structures to avoid the downtown core where many people walk and bike.

With land for parking at a premium, this Access and Parking Management Plan sets a path for modernizing parking management and maximizing use of available land. It makes it easier for drivers to The City of San Luis Obispo has a long history of sustainability and is one of the most walking and bike friendly places in the country. Downtown San Luis Obispo is a vibrant place centered around culture, arts, history, commerce, and most importantly, people.
01 Introduction
find available parking, which reduces traffic congestion and creates safer streets. The in-progress new Cultural Arts District Parking Structure will support new housing and commercial development, enhance economic vitality and offer amenities for downtown residents within walking distance. The garage will also free up onstreet parking and provide opportunities to repurpose street space for other uses people can enjoy.

The purpose of the Access and Parking Management Plan is to:

1. Implement programs and actions described in this plan within budget constraints and consistent with Financial Plan goals and policies.

2. Identify strategies to continue to modernize the management of the City’s public parking.

3. Improve access and the parking experience for residents, employees, businesses, and visitors of the downtown area.

4. Provide a framework for effective and innovative parking policies and management in Downtown San Luis Obispo (SLO) as
well as in its residential to meet overall City goals to increase walking, biking, and transit and achieve climate neutrality.

This Access and Parking Management Plan is considered a living document that will be reviewed and updated periodically as needed.

Its recommendations were developed based on parking and access data collection, stakeholder and community input, research and analysis, and peer city reviews for best practices

6 San Luis Obispo Access and Parking Management Plan
Building on Previous Plans
In 2002 San Luis Obispo adopted its first Access and Parking Management Plan with a focus on managing parking in the commercial core and reducing employee parking demand. A 2011 Plan update established broad goals to support the commercial viability and character of the City by providing enough parking in the core for visitors and employees, reducing employee parking demand by offering and promoting other modes of travel, supporting downtown residential mixed use, and maintaining strong fiscal stewardship of the parking program.

Parking Services has since implemented many policies and actions identified in the 2002 and 2011 Plans. These actions include:
• Made it easier for people to ride transit by expanding City and County employee trip reduction programs and the Downtown Access Pass for free employee bus travel, for example. • Transformed several parking lots into new residential and commercial developments to promote more effective land use and support the financial sustainability of the parking fund. • Made available more on-street parking spaces in front of businesses for customers by adjusting parking pricing and creating the Prox card, DROP card, and ten-hour meter parking passes to incentivize longer-term parkers to park off-street in structures. • Utilized current technology that makes parking more convenient with the addition of modernized pay stations and use of mobile apps. License Plate Recognition technology is used to enforce hourly parking time limits more efficiently.
• Added new short-term loading and drop-off zones (in demand since the pandemic began in 2020). • Permitted overnight resident parking in City-owned public garages. • Opened the Calle Joaquin park-and-ride facility south of town to decrease downtown traffic and parking congestion.
• Initiated preliminary design and bidding for a new public parking garage to support more housing and retail development.
• Established and expanded residential parking permit districts in partnership with impacted neighborhoods.
• Piloted carpool parking in one parking structure (NOTE: Due to low utilization the spaces were converted back to all access parking).

Multi-space pay station

San Luis Obispo Access and Parking Management Plan 7
Figure 1: Diagram of influential City plans and policies Relationship to City Policies
Since 2011 there have been significant changes in parking and travel habits, technologies, demand for curb space, and related City goals for transportation and climate action. With this update, the plan also aligns with new policies such as the Active Transportation Plan and the Climate Action Plan for Community Recovery that the 2011 APMP predates. This Access and Parking Management Plan, like those in the past, supports the goals of the City’s General Plan’s Circulation Element and the Downtown Concept Plan, which have both been updated since 2011.

Access and Parking Management Plan
Recommendations and actions for
the 2023-2028 timeframe
Downtown Concept Plan
A Vision and physical plan for downtown as
the heart of the San Luis Obispo community
Climate Action Plan
Creating a sustainable, carbon-neutral
community by 2035
General Plan: Circulation
Reduce the share of driving trips and
improve options for active mobility
Active Transportation Plan
Policies and actions to make walking and
bicycling more popular and useful

8 San Luis Obispo Access and Parking Management Plan
What You Will Find in this Plan
02 Summary of The Plan
A high-level overview of the Plan process, data collection, best practice research, community input, key goals, and recommendations.
03 Existing Conditions
Detailed descriptions of parking inventory and utilization counts1
, along with observations about the overall San Luis
Obispo transportation system.
04 Community Outreach and Engagement
An overview of the major topics and input received through a variety of engagement meetings with members of the public, stakeholders, staff, and other project partners.
05 Summary of Recommendations
Recommendations include which agencies and groups should take lead on each action, and an estimated implementation timeline of:
• Short-term actions achievable in the next 1 to 2 years • Medium-term actions achievable in the next 3 to 4 years • Long-term actions achievable in the next 5 or more years Each action has an implementation / monitoring plan to
evaluate progress. This section also catalogs the key goals and policies from other City plans that are relevant to the Access and Parking Management Plan.
06 Detailed Recommendations
Additional information about each recommendation.

G Glossary
A guide to key terms and phrases used in the Plan.

A Appendices
Appendices include the Existing Conditions Report, Case Study and Peer City Review, Community Outreach Report,
and City Council Adoption Resolution 1
Public parking inventory and occupancy data were collected over two days each in July and September within downtown and in residential parking permit areas.

Parking and travel observation data were collected in August. The data was analyzed to identify peak parking demand in the area as well as locations of highly utilized and underutilized spaces. Further details on data collection and analysis are included in Section 03 and Appendix A.

San Luis Obispo Access and Parking Management Plan 9
02 Summary of the Plan
Project Process
The Access and Parking Management Plan project occurred from early Summer 2022 through early Spring 2023. Key phases, tasks, and events are shown below.
2022 2023

JUNE JULY AUGUST SEPTEMBER OCTOBER NOVEMBER DECEMBER JANUARY FEBRUARY MARCH Background Review and Case Study Research
July Parking
Counts
Sept. Parking
Counts
Community
Survey
Community
Online Town
Hall
Active
Transportation
Committee Review
Stakeholder Interviews
Draft Recommendations Development
Preparation of Access and Parking
Management Plan
City Council and Public
Review Period
Planning Commission and
City Council Review Period
Community
Poll
Figure 2: Project schedule summary

10 San Luis Obispo Access and Parking Management Plan
Figure 3: Downtown parking - Thursday peak Figure 4: Downtown parking - Saturday peak Existing Conditions
The Access and Parking Management Plan (APMP) acknowledges and seeks to address many of the overall city access and mobility concerns and opportunities identified in precedent plans such as the Active Transportation Plan and General Plan Circulation Element. The APMP conducted project-specific parking utilization counts, summarized below.

The above map describes parking utilization:
• July 21, 2022, at 7:00pm during Farmer’s Market
• On-street: 78% full (899 used by cars, 146 used by Farmer’s Market staging, 256 available)
• Off-street City garages and lots: 92% full) (1,274 used, 103 available)
The above map describes parking utilization:
• September 24, 2022, at 7:00pm
• On-street: 51% full (695 used, 662 available)
• Off-street City garages and lots: 71% full) (988 used, 389 available)

San Luis Obispo Access and Parking Management Plan 11
Preferential Parking Permit (PPP) Districts
• During utilization counts from Thursday, September 22 to Friday, September 23, 2022, (when all schools were in-session), the districts were a combined 53% used. • Utilization varied across PPP districts: 41% was the lowest and 74% was the highest • *Preferential Parking Permit Districts currently are mostly located in residential neighborhoods north of Downtown and near CalPoly University.

Below are further details about parking capacity on-street and off-street, a utilization range throughout one day of counting, and a description of parking permit areas and use. Reminder: this is the overall peak of counted parking use
Off-Street Facility Quantity On-Street Space Type Quantity 842 Palm Street Garage 415 Unrestricted 50
919 Palm Street Garage 240* 10-Hour 469
871 Marsh Street Garage 577 4-Hour 14
Lot 14 - Palm Street 79 2-Hour 513
Lot 9 - Monterey Street 25 30-Minute 148
Lot 10 - Nipomo Street 29 ADA 28
Lot 15 – Monterey Street 12 White Curb: Passenger Loading 53 Total 1,377 Yellow Curb: Commercial Loading 69
Total 1,344
Quantity On-Street Space Type Quantity
415 Unrestricted 50
240* 10-Hour 469
577 4-Hour 14
79 2-Hour 513
25 30-Minute 148
29 ADA 28
12 White Curb: Passenger Loading 53
1,377 Yellow Curb: Commercial Loading 69
Total 1,344
Table 1: Downtown on-street parking capacity
Table 2: Downtown off-street parking capacity
*includes 192 public spaces and 48 spaces reserved for City and County Library employees.
**includes Lot 4, which is below the Marsh Street Garage Expansion **
Figure 5: Downtown parking utilization throughout the day - Thursday, July 21, 2022

12 San Luis Obispo Access and Parking Management Plan
Community Outreach

OUTREACH METHODS A FEW KEY PIECES OF COMMUNITY INPUT
The Project Team engaged with community members and stakeholders frequently, including early in the project to learn about travel habits and needs, and later to ask people their thoughts on a variety of access and parking strategies.

An Online Town Hall Meeting
With several dozen participants providing in-depth
insights about traveling around San Luis Obispo and
why they go to different destinations.

Strong support for the Access and Parking Management
Plan to boost progress towards carbon emissions
reduction and reduced driving mode share goals.

Over a Dozen Stakeholder Interviews
Business owners, students and staff, City employees,
housing providers, neighborhood groups, and others.

A desire for parking to be easier to find, with more
consistent availability and less confusion about time limit rules, how to pay, and permit types.

Nearly 300 Online Survey Responses about Travel Behavior An English and Spanish language survey available
to community members to provide information about
transportation needs, habits, and concerns.

Many people said that improved bike routes, sidewalks,
trails, and transit service would make it more likely that they can drive less for some trips.

Over 216 Online Responses about Draft Recommendations
Community members provided their thoughts about
the various draft strategies and recommendations
being considered for access and parking.

Support for the City to think about creative uses of the street, not just for lanes and parking, but for seating, bike parking, landscape features, and other features.

People support transportation options are plentiful and equitable, and want to center the Plan around people
with irregular and widely varied travel needs.

San Luis Obispo Access and Parking Management Plan 13
Case Studies and Peer City Research
Case studies and peer city research in communities comparable to San Luis Obispo or facing similar access and parking challenges help the project team partners identify strategies and tactics that may be useful. Below is a brief summary of case study and research findings in categories such as flexible transportation wallets, parking pricing, mobility education, and infrastructure for walking, riding, and rolling methods of travel.

Employee Parking Demand Reduction
• EcoPass (Boulder, CO): an employer-sponsored pass for lowcost or free transit. • Parking Cash-Out (Boulder, CO): instead of providing parking, employers pay employees the cash equivalent value, reducing driving incentives. Cash-out is required in California for large employers.
• Alternative Mode Commuter Option (Sacramento, CA): switched to bulk purchases of daily parking permits (instead of monthly passes) to make parking a daily choice and reflect true parking costs.
• Transportation Wallet (Portland, OR): a single “wallet” for allow flexible payments for transit, bike share, car share, parking, and other ways to travel.

Use Parking Permit Revenue to Support Alternative Modes • (Boulder, CO): revenue from neighborhood parking permits will fund transit, bikeway construction, and the EcoPass program. • (Portland, OR): a surcharge on residential parking permits that is dedicated towards transportation demand management and the Transportation Wallet.

Parking Pricing Strategies
• Occupancy-based price adjustments (Sacramento, CA): increases the cost of parking in high-demand locations to redirect demand to less used locations.
• Tier-based pricing (Sacramento, CA): per-hour cost increases each hour to promote parking turnover.

Investment in Active Transportation
• Free secure bike parking (Boulder, CO): free bike room parking in City garages.
• Parking-protected bike lanes (Sacramento, CA): a safer bicycle route for all users.
• People-Friendly Streets (Ann Arbor, MI): local streets with slow traffic and walking and bicycling safety.

Communications and Education
• SmartTrips’ New Movers Program (Portland, OR): information sent by mail and online to residents to inform them aware of various travel options.

14 San Luis Obispo Access and Parking Management Plan
Goals for Access and Parking Management
The Access and Parking Management Plan has two key goals that aim to achieve climate neutrality by 2035 while making access to parking safe and convenient or those who choose to drive.

This recommendation builds on the City’s use of contemporary parking management, policies, and technology to provide people with more travel choices and make it easier to walk, bike, and ride transit which will reduce greenhouse gas emissions. The resulting increase in foot traffic downtown will also support local businesses.

For those who have no option other than driving, these strategies will make it easy to find a parking space and visit businesses, which will reduce circling around the blocks and traffic congestion, and make downtown safer for all. This goal also will support new downtown housing and retail developments.

GOAL #1: Promote mode shift and emissions
reductions by making biking, walking, and transit
more attractive than driving alone, fostering an
economically and culturally vibrant downtown.

GOAL #2: Support Parking Services success
by using parking spaces efficiently, promoting
fiscal responsibility, ensuring availability, and
improving the customer experience.

Walking across Marsh Street Welcome to parking sign

San Luis Obispo Access and Parking Management Plan 15
The Existing Conditions section of Chapter 02 Summary of the Plan briefly describes access and parking in San Luis Obispo. Section 03 here provides a broader summary of transportation systems, parking utilization, and progress on the previous Access and Parking Management Plan. Further detail is available in Appendix A: Existing Conditions and Parking Utilization Report.

RELEVANT BACKGROUND PLANS
In addition to the Access and Parking Management Plan, the City of San Luis Obispo has several other plans that set forth community goals and strategies related to transportation. Each plan has a unique focus, but all share an overarching vision of reducing dependence on single occupant vehicle (SOV) travel and greenhouse emissions. To achieve these goals, strategies should be developed holistically, and each plan should align with and complement the others. The documents include:
• Active Transportation Plan (2021): This plan provides implementation strategies to achieve the mode share goals set forth in the Circulation Element, showing the connection between building better-connected and safer walking and bicycling routes and reducing private vehicle travel. • Climate Action Plan for Community Recovery (2022): The plan’s objective of carbon neutrality by 2035 includes the goal of achieving the Circulation Element’s mode split objectives by 2030, which accounts for 16 percent of proposed greenhouse gas emissions reductions. • Circulation Element of the General Plan (2014): This describes the City’s goals to achieve more active transportation mode split by 2035. This includes reducing the number of people who drive alone from 67.7 percent today to 50 percent by 2030, increasing bicycling to 20 percent, boosting transit to 12 percent, having walking, carpooling, and other forms of transportation account for 18 percent of travel. The Circulation Element also establishes that downtown areas and residential corridors and neighborhoods should prioritize active transportation modes over vehicle travel.

A thorough understanding of San Luis Obispo’s current conditions and of the community goals expressed in other City planning documents will help Parking Services evaluate and implement impactful strategies through the Access and Parking Management Plan Update.
03 Existing Conditions Summary
Transportation % of City resident
trips
Motor Vehicles 50%
Transit 12%
Bicycles 20%
Walking, Carpools,
and other forms 18%
Table 3: Mode split objectives for 2030
Source: City of San Luis Obispo, General Plan,
Circulation Element (2014)
Street closure for Thursday farmers
markets

16 San Luis Obispo Access and Parking Management Plan
• Downtown Concept Plan (2017): The Downtown Concept Plan establishes a vision for Downtown San Luis Obispo in alignment with the Land Use and Circulation elements of the General Plan.

Goals for downtown include prioritizing pedestrian activity, providing ample wayfinding for motorists, and providing a safe and easy-to-use bicycle network that enhances connections to surrounding neighborhoods, improving bicycle parking, and encouraging the redevelopment of surface parking lots with denser retail and mixed-use development.

Figure 6: Downtown Concept Plan illustration (from the Concept Plan Supplement page 3.2) Figure 3.1. Downtown Concept Plan Illustrative
DANA
PALM
MILL

MONTEREY

HIGUERA
MARSH

PACIFIC
PISMO

MISSION PLAZA

MASTER PLAN

H I G U E R A
PALM

MONTEREY

HIGUERA
MARSH

PACIFIC

P I S M O

WALKERARCHERCARMELBEACH

NIPOMO NIPOMO
BROAD

BROADGARDEN

CHORRO CHORRO

MORRO MORRO

OSOS OSOS

SANTA ROSA SANTA ROSA
TORO

J O H N S O N A V E

JOHNSON AVE
PEPPER

T O R O
1 9
10 19 18
2 11
3 12
20 39 40 41 42 43 44 45
38 27 28 29 30 31 32
26 51 52 53 54 55 56 57 58
4 13
21 33
46 59
5 14
22 34
47 60
6 15
23 35
48 7
16 24
36 49
8 17
25 37
50 61
BLOCK NUMBERS 27 See block descriptions in plan supplement

COMMERCIAL MIXED USE
Street-front commercial uses with upper level residential and/ or office uses

OFFICE MIXED USE
Office uses with compatible residential and/ or commercial uses

RESIDENTIAL
Wide variety of medium density and high density housing

HOSPITALITY
Hotels and conference facilities

COMMUNITY SERVING
Government facilities, museums, churches, and schools

PARKING
Above or below ground parking that may include roof top public spaces PARKS
May include publicly accessible historic sites, gardens and walkways

PLAZA, PASEOS, AND SHARED STREETS
Paseos may include publicly accessible private property

San Luis Obispo Access and Parking Management Plan 17
SAN LUIS OBISPO’S EXISTING TRANSPORTATION
San Luis Obispo has a range of transportation options other than private motor vehicle travel for people to get around. These include local bus service, regional bus and rail service, and a robust and growing network of pedestrian and bicycle routes. The core urban and semi-urban adjacent parts of the city are well-connected with a street grid, complete sidewalk network, and bikeways linking certain inner neighborhoods.

Transit Options
Transit currently accounts for 2.8 percent of resident city trips. The Circulation Element aims to boost this number to 12 percent by 2030. The City’s Transit Division (SLO Transit) operates eight bus routes, which provide regular service on four primary routes (one route running each direction).

These buses link downtown to the airport, California Polytechnic (“Cal Poly”) University, the Laguna Lake area neighborhoods, and elsewhere. Regional transit connections include SoCo bus to Cuesta College, Morro Bay, Los Osos, Paso Robles, Cambria, and Santa Maria; and Amtrak Pacific Surfliner rail service southbound along the coast to cities including Santa Barbara and Los Angeles.

Bicycle Network
Bicycling currently accounts for 8.3 percent of resident city trips, and the Circulation Element aims to boost this to 20 percent. The existing bicycle network includes approximately 75 miles of designated bikeways, including 11 miles of shared-use pathways, 63 miles of bicycle lanes/routes, and a half mile of neighborhood greenways. Community engagement for the 2021 Active Transportation Plan found that protected bike lanes on major arterials are the most desired types of bicycle infrastructure. The City plans to continue expanding and improving the safety of its bicycle network. Another example of significant investment includes the installation of buffered bike lanes on Higuera and Marsh Streets as part of a repaving and lane reconfiguration project.

Pedestrian Infrastructure and Connectivity
According to the 2021 Active Transportation Plan, walking currently accounts for 7.2 percent of resident trips. The City aims to increase this to 12 percent by 2030. Community outreach conducted as part of the Active Transportation Plan revealed commonly cited barriers to walking to include the lack of crosswalks, safety and vehicle speeding, and the need for improved lighting. San Luis Obispo currently has plans for improved crossings.

SLO Transit Bus in downtown
Protected bike lane on Higuera Street.

18 San Luis Obispo Access and Parking Management Plan

EXISTING PARKING PROGRAM REVIEW
Parking Services is a separate enterprise fund within the City and thus operates using its own generated revenue. Funds collected from paid parking go towards maintaining existing parking, constructing new parking as needed, staffing, and enforcement.

Downtown on-street parking enforcement occurs between 9:00am and 9:00pm Monday through Saturday, and between 1:00pm and 9:00pm on Sundays. Parking Services manages twelve preferential parking permit districts in residential areas, each with unique day-of-week and time regulations.

Public Paid Parking
Parking Services operates roughly 2,600 public parking spaces downtown, spread across five offstreet surface lots, three parking structures, and street parking controlled through a variety of time limits, per-hour pricing, permits, and curb use restrictions (such as loading zones). Lower rates for off-street parking encourage long-term parkers to utilize the structures, and higher rates for on-street parking in the busiest areas help promote turnover and ensure availability. People paying to park onstreet use either a payment app or multi-space payment kiosk in the downtown core, or coin meters located at each parking space in the downtown edge. The City plans to replace most coin meters with multi-space pay stations in 2023.

Public structures require fees paid upon exit, and public surface lots require payment either by smart meter, coin meter, or payment app. Currently, drivers do not have to pay for their first hour of garage parking, a program that is scheduled to end on July 1, 2023, when both on-street and off-street daily rates will also increase, and parkers will use mobile apps and payment stations to pay upon entry.

While daily parking prices are scheduled to increase in 2023 and 2025 (see the table on page 70 for information), long-term passes and permits prices are not slated to increase. This is intended to help preserve affordable parking options for downtown employees.

Time and Curb Restrictions
In addition to requiring payment, most on-street spaces have time limits to help ensure turnover.

There are 30-minute, 2-hour, and 10-hour spaces.

Off-street parking structures have no time limits and a maximum daily rate for daytime parking.

Overnight paid parking between 12:00 am and 5:00 am is also allowed in the structures for an additional fee.

On-street pay station
Parking Structure 3

San Luis Obispo Access and Parking Management Plan 19
Figure 7: Map of existing downtown parking locations and regulations, as of January 2023

20 San Luis Obispo Access and Parking Management Plan
Downtown Parking Permits
Parking Services offers a variety of different parking permits to meet the needs of various user groups. The permits offer discounted rates or the use of certain spaces in the downtown area. • Commercial Loading Zone permits are available for businesses to purchase and renew for $60 annually. These permits allow delivery vehicles to park in Commercial Loading Zones during business hours for a maximum of 30 minutes. The Commercial Loading Zone spaces are designated by a yellow curb and posted signage.
• Special Event and Construction permits allow reservations of downtown on-street spaces for $20 per space per day.
• Parking Passes are available for downtown employees and residents. The prices of these permits are not slated to increase in 2023 and 2025; only daily rates will increase. • Quarterly Parking Pass for Employees (PROX Card) cost $255 per quarter and are valid for the Marsh Street Structure or Palm Structure between the hours of 6:00 am and midnight. • Residential Overnight Parking (DROP PROX Pass) permits cost $375 per quarter and are valid 24 hours a day on the upper floors of the Marsh Street and Palm Street structures. • Monthly Street Parking Permits (10-hour meter permits) provide individuals a reduced rate for parking at any 10-hour on-street metered space. At the beginning of each quarter, 400 Quarterly permits are available for $180 each, and at the beginning of each month, 200 Monthly permits are available are available for $60 each. The permits usually sell out. • 10-Hour Meter Residential permits are available for residents with 10-hour meters in front of their residence to park in 10-hour spaces at a discounted rate of $20 per year. Each household may apply for up to two permits. Permit holders are still subject to overnight parking prohibitions.
• In the third quarter of 2022, a total of 297 structure parking passes were sold. Below are sales figures across the various user groups:
• City employees: 94 passes
• County and Courthouse employees: 35 passes
• Other Downtown employees: 152 passes
• Downtown residents: 16 passes
Curbside Loading
Downtown areas with a high need for pick-up and drop-off services have designated Passenger Loading Zones marked by a white curb. Passenger loading zones allow public parking for a maximum Loading zone on Higuera Street
ADA parking on Garden Street

San Luis Obispo Access and Parking Management Plan 21
of ten minutes for of loading and unloading passengers or depositing mail. Passenger Loading Zone regulations apply between 7:00 am and 6:00 pm Monday to Saturday, and between 1:00 pm and 6:00 pm Sunday. Passenger loading zones are enforced 24/7 if they are near a hotel, theatre, or mailbox.

Commercial Loading Zone spaces are marked by a yellow curb. Commercial Loading Zones allow loading by commercial vehicles for a maximum of 30 minutes. Commercial Loading Zone regulations apply 7:00 am and 6:00 pm every Monday to Saturday, and between 1:00 pm and 6:00 pm every Sunday. Commercial loading zones can also be used by passenger vehicles for up to three minutes, but the vehicle must be occupied. The City offers permits which allow non-commercial vehicles to stay for up to 30 minutes. As a way of improving access to downtown businesses, commercial vehicles may load and unload from the travel lanes on Higuera Street and Marsh Street so long as an adjacent travel lane remains available, bike lanes are not blocked, and pedestrian movement is not obstructed.

Accessible Parking
Disabled Person parking placards and plates allow the use of designated on-street (blue curb) and off-street Americans with Disabilities Act (ADA) spaces, preferential parking permit zone spaces, and any on-street time-restricted spaces at no charge.

Preferential Parking Permit Areas
Parking Services also manages twelve Preferential Parking Permit Districts throughout the City, which impose restrictions on who can park on-street during different hours of the day and days of the week.

All districts have posted signage indicating the restriction (see Figure 8).

Only residents displaying valid parking permits may occupy on-street parking during the limitation hours. Permits are available for $20 annually per permit, and each residence may purchase up to two permits. Temporary residential permits are also available for visitors. Preferential Parking Districts are primarily located near Cal Poly University as a way of regulating parking and limiting university parking spillover. Establishing new districts or expansion of existing districts requires the approval of a majority of residents and support from City Council.

For the 2021-2022 permit year, 825 of 1,002 available residential district permits were sold, an 82 percent purchase rate that reflects high uptake by residents of the preferential parking districts. The share of available permits that were purchased ranged from 62 percent in the Palomar district to 94 percent in the Alta Vista district.

The City supports a variety of curbside
uses, including dining parklets
Parking structure pay station

22 San Luis Obispo Access and Parking Management Plan

DOWNTOWN PARKING UTILIZATION
This section shows how parking demand varies according to time of day and day of the week. It includes spatial analysis of demand throughout the downtown study area, analysis by off-street facility and on-street space type, and turnover analysis for on-street and lot parking.

Overall Study Area Demand
A widely recognized best practice in parking management involves the comparison of actual parking utilization rates with an 85 percent occupancy threshold. When parking is 85 percent occupied, spaces are well-used—showing prices are not needlessly deterring people from driving to the area— but also still possible for drivers to find a space without cruising around waiting for another driver to leave, which results in increased emissions and traffic congestion. Utilization rates can be compared with this threshold at various levels of analysis—for individual block faces, specific parking space categories, or an entire area:
• Overall parking occupancy for all on and off-street spaces in the downtown study area was almost always well below the 85 percent occupancy threshold in both July and September. • During both observation periods, both Thursday and Saturday parking demand was lowest at 9:00 am, reached a 1:00 pm lunch hour peak, fell slightly in the afternoon, and reached a second peak at 7:00 pm. The 7:00 pm peak was especially high on Thursdays, during the Farmers Market. • July and September utilization rates were similar, with most of the time-point utilization rates just slightly higher in July than September.

On-Street and Off-Street Demand
Even when total parking occupancy is observed to be at or below the 85 percent threshold, efficient parking management requires understanding how evenly occupancy is spread across the study area and across different types of spaces. When occupancy rates are uneven, the City might respond by increasing prices in high demand areas, lowering prices in low demand areas, or improving signage and wayfinding so drivers know where parking is available. Maintaining availability of onstreet parking is especially important to support local businesses, ensuring that potential customers interested in a quick trip are not discouraged from visiting due to a lack of convenient on-street parking.

PEAK PARKING USE IN

DOWNTOWN
(combined on-street and
structures)
86% at 7:00pm
Thursday, July 21, 2022
58% at 1:00pm
Saturday, July 23, 2022
82% at 7:00pm
Thursday, September 22, 2022
62% at 7:00pm
Saturday, September 22, 2022
Parking regulations sign
Figure 8: Peak use measured parking in
downtown

San Luis Obispo Access and Parking Management Plan 23
Based on the data collected, San Luis Obispo has
been effective in maintaining on-street parking
availability downtown; on-street occupancy rates
were lower than off-street occupancy rates for
most of the day on both Thursday and Saturday
in both July and September. The higher off-street
occupancies are likely at least partially due to the
free first hour of parking offered in garages as an
incentive for visitors to park off-street.

Preferential Parking Permit Area Utilization
Each PPP has its own regulations. Many districts
restrict non-permit holders from parking only during
certain daytime hours, only overnight, or only on
weekdays. In other districts, the restrictions apply
at all times.

Overall utilization across all the PPP areas was
25% on Thursday, July 21, 2022, and 53% on
Thursday, September 22, 2022 during period times
of the day when restrictions were active. During
both counts 81% of vehicles displayed a valid PPP
permit tag. The September counts are higher, likely
due to several universities being in session that we
not during the July counts.

The following map shows parking occupancy on
each block during the September 2022 counts.

Figure 9: Downtown parking utilization throughout the day - Thursday, July 21, 2022 Figure 10: Downtown parking utilization throughout the day - Saturday, July 23, 2022

24 San Luis Obispo Access and Parking Management Plan
Figure 11: Preferential Parking Permit areas utilization - Thursday, September 22, 2022 PPP District Inventory
Alta Vista 1 197
Alta Vista 2 179
Anholm 68
College Highlands 229
Dana 58
Ferrini 26
Mission Orchard 62
Monterey Heights 413
Murray 41
Palomar 61
Park View 299
Tassajara 115
TOTAL 1,748

San Luis Obispo Access and Parking Management Plan 25
04 Community Outreach Summary
The Community Engagement section of Chapter 02 Summary of the Plan describes the key touchpoints the project had with community members and stakeholders and briefly summarizes crucial themes heard throughout these conversations. Section 04 here elaborates on important findings from each community event and survey. Further detail is available in Appendix C: Community Outreach Report.

Stakeholder Interviews: September-December 2022
The Project Team conducted one-on-one and group interviews with California Polytechnic University student organizations and campus transportation and facilities managers, representatives from Residents for Quality Neighborhoods and Save Our Downtown, City of San Luis Obispo staff, Downtown SLO, and others. These people typically had deep and long-term knowledge of area access and parking issues and provided insights into the experiences of students, residents, downtown employees, tourists, and City staff in accessing the city and operating mobility services. • Key Concerns
• The cost and complexity of parking options, especially for long-distance employees • Many stakeholders lament the lack of non-drive options for many trip types and users • How does CalPoly impact on parking, transportation systems, and use of mobility routes? • What will be the result of the various permit system changes, parking fee increases, garage entry monitoring updates, and other program updates on parking affordability? • Active transportation and emissions reduction goals will resonate strongly in this community. • Engage with especially underserved and underrepresented people, who may have some of the most challenging transportation circumstances in SLO.
• Seek more clarity about downtown parking pricing, availability, and time limits. The current regime is confusing, both to find parking and to figure out time limits and payment systems Conversations and engagement with the San Luis Obispo community helped shape an understanding of important access and parking needs and how people thought different improvement strategies could be beneficial.

People value the attractiveness and
walkability of downtown SLO

26 San Luis Obispo Access and Parking Management Plan
• Leverage and emphasize priority projects from the Active Transportation Plan to better align APMP updates with other citywide and location-specific investments, policies, and infrastructure. This includes looking for priority access active routes and bolstering City goals for reducing drive-alone vehicle travel and reducing greenhouse gas emissions. • Seek to better understand who is using parking districts, and if changes to permit availability, cost, and enforcement are needed.
• Look for opportunities to link CalPoly and Downtown with non-driving modes. • Consider the impacts of downtown growth (especially housing) on parking and overall mobility. • Seek to diversify SLO Transit ridership beyond primarily CalPoly students. Numerous stakeholders note the challenges of supporting commute and travel options for agriculture workers, who have highly varied work shifts and locations. There may be potential to boost ridesharing among this population.
• Consider if long-term streetscape improvements are more viable for downtown enjoyment than the parklet program. Some people stated they find the parklets useful but a detraction from downtown character and favor instead more durable street designs. • Support for permanent street closures is mixed and somewhat weak, while overall streetscape design improvements are more supported.

Virtual Town Hall: September 2022
The Project Team facilitated a virtual town hall through the City’s Zoom account. The event was advertised on the City’s website, press release, through word-of-mouth, social media posts, and print fliers handed out to downtown businesses. The event was timed to overlap with the online community survey, which ran for several weeks prior to the town hall. Twenty-two community members attended the event. Approximately 17 were able to participate in Mentimeter voting.

Key findings include
• Participants primarily travel by personal vehicle, walking, bicycle, or public transportation. • Many of the participants were employees of downtown businesses and thus offered insights about day-long parking needs and early-morning or late-evening transportation needs. • Other respondents visit Downtown to dine, shop, attend events, and use recreation facilities. • When asked what ideas come to mind regarding access and parking in Downtown San Luis Obispo, many responded negatively, saying: confusing, expensive, car-centric, bad transit.

Expanded street seats and partial
closure on Monterey Street

San Luis Obispo Access and Parking Management Plan 27
• Respondents largely favored creating space for active mobility and transit, outdoor gathering spaces, and goods delivery over space for parking and strict vehicle movement.
• Respondents favor tactics to improve directional signage to parking, create more pickup and dropoff curbside space, charge more for parking in the busiest areas, and creating more shared parking agreement spaces.
• Respondents favor tactics to Improve sidewalk conditions and connectivity; Improve public transportation frequency and route options; provide cash benefits to employees who don’t drive alone to commute; construct more quality bike lanes; build more residential and commercial uses in downtown; and add more bike parking racks.
• During the free comment period, respondents expressed ideas around these (and other) topics: improving transit service and frequency; boosting bikeway connections; keeping first hour parking free to encourage business activity; better parking efficiency and user-friendliness; support for parklets and gathering/commercial zones; more use of pickup and drop-off zones; preserve driving/parking as an option for those who need it, but don’t prioritize and incentivize it
Key points raised during breakout discussion groups included:
• Concern about the switch to parking enforcement extending to 9:00pm driving away diners. • A lack of non-driving options, especially for late-night commuters, such as restaurant workers. • A need for more education and outreach to businesses about transportation options, including transit passes and employee parking permits.
• Overall agreement that parking supply and utilization is not congested downtown-wide, but that certain high-demand locations are regularly full and lacking in turnover. • Support for investment in transit, sidewalks, and biking routes; and commensurate support for disincentivizing drive-alone trips when possible.
• Several attendees had questions about the financial impact of access and parking reforms.

Figure 12: Screenshot of live online polling conducted from the September 2022 Virtual Town Hall

28 San Luis Obispo Access and Parking Management Plan
Online Community Survey: September 2022
The project team prepared an online survey for general community input and distributed it via social media, the City website, and several email contact lists. The survey ran from early September to 30 September 2022 and obtained 297 respondents. The survey was available in English and Spanish; no Spanish surveys were completed. The full results of the survey are available in the appendices.

COMMUNITY SURVEY SUMMARY
• Concerns about inability to find parking, lack of enforcement, and confusing regulation terms. • Opinions were mixed and polarized about dedicating street space to parking versus active mobility infrastructure and gathering spaces.
• Feelings were mixed and balanced on expressing the importance of dedicating downtown space to active transportation, transit, parking, goods delivery, and gathering space creation. • Regarding parking, respondents’ biggest concerns were lack of enforcement of time limits and an inability to find parking near their destinations.
• Roughly 40-50% of respondents support parking strategies that: improve directional wayfinding to parking, promote shared parking agreements, add more pickup/drop-off zones, and creating more parking supply.
• When asked if on-street parking should be prioritized over other potential uses of the public rightof-way (for example, bike lanes, transit stops, curbside dining, street fairs, commercial delivery) in the busiest areas of Downtown and/or at the busiest times, responses were mixed and polarized.

Strongly Agree with 28%, Agree with 14%, Neither agree nor disagree with 15%, Disagree with 15% and Strongly Disagree with 14%.
• Encouragingly, 59% of people find walking, biking, and transit to Downtown to be somewhat or very easy. Thirty percent find is somewhat or very difficult. (Q28) • When asked to rank goals for access management, results came back varied. Both making it easier to find parking and reducing vehicle congestion ranked highly. Making it easier and more pleasant to use other forms of travel like walking and biking was a popular second place. • One question asked which active mobility solutions people would be willing to consider. Many received high marks, with improving sidewalks, improving public transportation service, and providing cash benefits to encourage people to not drive alone being the most popular three.

SURVEY SNAPSHOT
(September 2022, question 7)
In an area with many shops, restaurants, and
attractions, like Downtown San Luis Obispo, how
important is it to provide space for each of the
following functions?
Space for customers and visitors
to drive and park their cars
Active travel access (walking and biking)
Delivery of goods
Space for employees and businesses
to drive and park their cars
Space for the community, like public art,
outdoor dining, food trucks, and mini parks
Transit access
Not Important
Somewhat Important
Very Important
0% 50% 100%

San Luis Obispo Access and Parking Management Plan 29
Online Community Survey: December 2022
The City launched a short online poll via the Open Town Hall platform and advertised the poll via regular social media and email methods. 216 people completed the poll. Results are below.

Key observations from the results include:
• Shopping and Dining is the most common reason for coming Downtown, with 85% of respondents citing it. Forty-four percent of people list professional services visits. Both are typical short-term trips that may commonly require two hours or less.
• Most respondents favor some expansion of permit districts to non-permit holders, so long as management of the district is upheld.
• Respondents listed that a variety of improvements and programs could encourage them to walk and bicycle for more trips. Adding infrastructure, in the form of bikeways, sidewalks, and paths, are the most supported options. This suggests that building active travel facilities is a key service the City can lead.
• Respondents given an overall uninterested rating to the concept to switch to bulk purchases of single-day parking passes. Understandably this is an unfamiliar payment and ticketing system that people may question.
• A substantial number of respondents answered “Sometimes” or “No” to ready availability of information about non-driving mode options. This suggests on opportunity to increase awareness and education.

SURVEY SNAPSHOT
(December 2022, question 4)
What improvements would encourage you to
choose to walk, bike, roll, or use transit to get to
and around downtown San Luis Obispo, instead
of driving in a single-occupancy vehicle? (Please
select up to three)
Add more bikeway routes such as bike lanes,
protected cycletracks, and path systems
Improve and add walking paths, including
sidewalks and paths where none exist today
Add more secure bicycle
parking throughout Downtown
Add bus service that goes to
more places around SLO
Increase bus
service frequency
Nothing would encourage me to
walk, bike, roll, or use transit more
I already primarily walk, bike, roll, or use
transit to Downtown San Luis Obispo
Provide cash benefits to downtown employees
who use non-drive-alone travel methods
0% 50% 100%

30 San Luis Obispo Access and Parking Management Plan
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San Luis Obispo Access and Parking Management Plan 31
05 Summary of Recommendations
Recommended actions including rationale, timeline, responsible parties, and implementation / monitoring plan.

The below list identifies policies and goals from preceding plans that are relevant to the Access and Parking Management Plan. These policies are referenced in the description of each APMP Action.

GENERAL PLAN CIRCULATION ELEMENT (2014)
Policies
• 2.1.1. Multi-level Programs The City shall support county-wide and community-based efforts aimed at substantially reducing the number of vehicle trips and parking demand. • 2.1.4. Downtown Congestion Within the Downtown the City shall establish and promote programs aimed at reducing congestion in a way that supports the long-term economic viability of the downtown.
• 2.2.2. City Trip Reduction The City shall maintain and where cost effective improve a trip reduction plan for City employees.
• 2.2.3. Large Employers The City shall work with employers to establish a voluntary commuter benefit options program that provides commute options for employees. • 2.2.4. Incentives for Educational Institutions 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.
• 3.1.1. Transit Development The City shall encourage transit accessibility, development, expansion, coordination and marketing throughout San Luis Obispo County to serve a broad range of local and regional transportation needs.
• 4.1.1. Bicycle Use The City shall expand the bicycle network and provide end-of-trip facilities to encourage bicycle use and to make bicycling safe, convenient and enjoyable. • 4.1.3. Continuous Network The City shall collaborate with SLO County to coordinate planning and development of county bikeways to support a regional bike network and identify and acquire additional rights of way in the City as they become available. • 4.1.12. Bike Parking The City shall facilitate development of conveniently located bike parking so as not to impede pedestrian walkways.

City Policy and Goal References in the APMP Recommendations Cover of the General Plan
Circulation Element

32 San Luis Obispo Access and Parking Management Plan
• 4.1.5. Bikeway Design and Maintenance The City shall design and maintain bikeways to make bicycling safe, convenient and enjoyable.
• 5.1.1. Promote Walking The City shall encourage and promote walking as a regular means of transportation.
• 6.1.1. Complete Streets The City shall design and operate city streets to enable safe, comfortable, and convenient access and travel for users of all abilities including pedestrians, bicyclists, transit users, and motorists.
• 13.1.1. Curb Parking The City shall manage curb parking in the downtown to encourage short-term use to those visiting businesses and public facilities. • 13.2.2 Monitor Public Parking The City shall regularly monitor the use of public parking in downtown.
• 13.2.3 Park and Ride Lots. The City shall coordinate with SLOCOG during periodic updates to SLOCOG’s Parking and Ride Lot Development report to evaluate the need for and location of park-and-ride lots to serve commuters.
• 14.1.3 Neighborhood Parking District The City’s Residential Parking District Program shall be updated to review the criteria and clarify the process for establishing a district. • 14.2.1 Neighborhood Parking Permits 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.

Goals
• Mode Shift Goal - Goal to reduce the number of people who drive alone from 67.7 percent today to 50 percent by 2030, boost bicycling to 20 percent, boosting transit to 12 percent, having walking, carpooling, and other forms of transportation account for 18 percent of travel • Transportation Goal 1.6.1.6 To promote the safe operation of all modes of transportation.

DOWNTOWN CONCEPT PLAN (2017) (referred to as DCP)
Goals
• 2.3 Provide opportunities for a variety of new public spaces and recreation downtown, including pocket parks, plazas, wide sidewalks with seating, an expanded Creek Walk, parklets, and creative rooftop public spaces.
• 3.6 Provide new in-lieu fee parking districts over time to accommodate the needs of future mixed-use development, recognizing the demand for parking today will not necessarily be the same in 25 years.

Cover of the Downtown Concept Plan