San Luis Obispo City Council
October 1, 2024

City Council
AGENDA

Tuesday, October 1, 2024, 5:30 p.m.

Council Chambers, 990 Palm Street, San Luis Obispo
Updated to provide Zoom link for Closed Session only.

Agenda Packet amended to remove Item 6f. Amendment to Community Workforce Agreement for Prado Road Interchange and Public Safety Center Projects.

Council meetings may be viewed remotely on Channel 20, the City’s YouTube Channel, and on the City’s website under the Public Meeting Agendas web page. Attendees of City Council or Advisory Body meetings are eligible to receive one hour of complimentary parking; restrictions apply, visit Parking for Public Meetings for more details.

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 may not be processed until the following day.

Public Comment during the meeting:

Meetings are held in-person. To provide public comment during the meeting, you must be present at the meeting location.

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 must 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. CLOSED SESSION (4:30 - 5:30 PM)
Council Member Francis will be attending only Closed Session virtually due to illness.

Zoom link is provided for Closed Session Only.
https://slocityorg.zoom.us/j/85156471835?pwd=5hEBfmHboKrHSQmpAQRk3lYqBUbQu1.1 Passcode: 725667
Or Telephone:

Call 1 669 900 6833 US (San Jose)
Webinar ID: 851 5647 1835
Passcode: 725667

1.a CALL TO ORDER
Mayor Erica A. Stewart will call the Closed Session to order at 4:30 p.m. in the Council Hearing Room at City Hall, 990 Palm Street, San Luis Obispo.

1.b PUBLIC COMMENT ON CLOSED SESSION ITEMS ONLY
Public comment will only be accepted for items on the closed session agenda.

1.c PUBLIC EMPLOYEE PERFORMANCE EVALUATION - GOALS
Pursuant to Government Code § 54957(b)(1)
Title: City Manager

1.d ADJOURNMENT
City Council will hold a Regular Meeting on October 1, 2024 at 5:30 p.m. in the Council Chambers at City Hall, 990 Palm Street, San Luis Obispo.

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

3. PLEDGE OF ALLEGIANCE
Council Member Michelle Shoresman will lead the Council in the Pledge of Allegiance.

4. PRESENTATIONS

4.a DOMESTIC VIOLENCE AWARENESS MONTH PROCLAMATION
Mayor Erica A. Stewart will present a proclamation declaring the month of October as "Domestic Violence Awareness Month".

4.b FIRE PREVENTION MONTH PROCLAMATION
Mayor Erica A. Stewart will present a proclamation declaring the month of October as "Fire Prevention Month".

4.c NATIONAL CYBERSECURITY AWARENESS MONTH

PROCLAMATION
Mayor Erica A. Stewart will present a proclamation declaring the month of October as "National Cybersecurity Awareness Month".

4.d CAL POLY ENROLLMENT/HOUSING PRESENTATION
The City Council will receive an update from Cal Poly representatives on enrollment and housing.

4.e CITY MANAGER REPORT
Receive a brief report from City Manager Whitney McDonald.

5. 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.

6. 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 6a to 6h.

6.a WAIVE READING IN FULL OF ALL RESOLUTIONS AND

ORDINANCES
Recommendation:

Waive reading of all resolutions and ordinances as appropriate.

6.b MINUTES REVIEW - SEPTEMBER 17, 2024 COUNCIL MINUTES 11 Recommendation:

Approve the minutes of the City Council meeting held on September 17, 2024.

6.c SECOND READING AND ADOPTION OF ORDINANCE NO. 1740
(2024 SERIES) APPROVING AN AMENDMENT TO TABLE 2-1 IN
TITLE 17 (ZONING REGULATIONS) OF THE MUNICIPAL CODE

WITH APPROVAL OF CONDITIONAL USE PERMIT
17 Recommendation:

Adopt Ordinance No. 1740 (2024 Series) entitled, “An Ordinance of the City Council of the City of San Luis Obispo, California, approving amendments to Table 2-1 (Uses Allowed by Zone) in Title 17 (Zoning Regulations) to allow Cannabis Retail Storefronts to conduct retail sales by delivery with approval of a Conditional Use Permit or by amendment to an existing Conditional Use Permit. The project is exempt from environmental review (CEQA) (CODE-0401-2024).”

6.d APPROVE A MILLS ACT HISTORICAL PROPERTY PRESERVATION AGREEMENT FOR THE SNYDER HOUSE AT 1406 MORRO STREET
(HIST-0386-2024)
25 Recommendation:

As recommended by the Cultural Heritage Committee, adopt a Draft Resolution entitled, “A Resolution of the City Council of the City of San Luis Obispo, California, approving a Historic Property Preservation Agreement between the City and the owner of the Snyder House at 1406 Morro Street (Application No. HIST-0386-2024).”

6.e AMENDMENT NO. 1 TO GRANT AGREEMENT WITH SAN LUIS

OBISPO REPERTORY THEATRE
45 Recommendation:

Approve Amendment No. 1 to Grant Agreement between the San Luis Obispo Repertory Theatre and the City of San Luis Obispo to provide grant funding in the additional amount of $2,760,000 and authorize the Mayor to execute the agreement.

6.f AMENDMENT TO COMMUNITY WORKFORCE AGREEMENT FOR

PRADO ROAD INTERCHANGE AND PUBLIC SAFETY CENTER

PROJECTS
Recommendation:

This item has been pulled by staff and will be rescheduled to a date uncertain at this time.

6.g SECOND READING AND ADOPTION OF ORDINANCE NO. 1741
(2024 SERIES) TO AMEND QUALIFICATION FOR CONSTRUCTION

BOARD OF APPEALS
87 Recommendation:

Adopt Ordinance No. 1741 (2024 Series) entitled, “An Ordinance of the City Council of the City of San Luis Obispo, California, amending Section 15.04.020, Subsection N, of the San Luis Obispo Municipal Code,” which will remove the local requirement to maintain an Accessibility Board of Appeals pursuant to Health and Safety Code 19957.5.

6.h SECOND READING AND ADOPTION OF ORDINANCE NO. 1742
(2024 SERIES) TO ESTABLISH AN IMPACT FEE DEFERRAL

PROGRAM FOR ELIGIBLE AFFORDABLE FOR-RENT RESIDENTIAL

PROJECTS
95 Recommendation:

Adopt Ordinance No. 1742 (2024 Series) entitled, “An Ordinance of the City Council of the City of San Luis Obispo, California, amending section

4.56.050 (Payment of Fees) of the Municipal Code to establish a development impact fee deferral program for eligible affordable housing projects.”

7. PUBLIC HEARING AND BUSINESS ITEMS

7.a 2023-24 ANNUAL REPORT OF THE TOURISM BUSINESS
IMPROVEMENT DISTRICT (Estimated Time: 20 Minutes)
103
Recommendation:

As recommended by the Tourism Business Improvement
District (TBID) Board, receive and approve the TBID Board’s annual report for FY 2023-24; and

1. Adopt a Draft Resolution of Intention entitled, “A Resolution of the City Council of the City of San Luis Obispo, California, declaring its intention to continue the San Luis Obispo Tourism Business Improvement District, to continue the basis for and to levy the assessment for the district, and to set a date for the Public Hearing on the district and the assessment for 2024-25.”

2. 7.b ANNUAL UPDATE ON IMPLEMENTATION OF THE ECONOMIC
DEVELOPMENT STRATEGIC PLAN (Estimated Time: 30 Minutes) 145
Recommendation:

Receive and file the annual update on the implementation status of the Economic Development Strategic Plan (EDSP).

7.c FISCAL YEAR 2023-24 YEAR END BUDGET REPORT (Estimated Time: 90 Minutes)
165
Recommendation:

1. Receive and file the FY 2023-24 Year End Budget Report; and Receive and discuss the Revised Long-Term Forecast, 2025- 27 Financial Plan calendar and community outreach survey in preparation for the 2025-27 financial planning process.

2. 8. LIAISON REPORTS AND COMMUNICATIONS
Not to exceed 15 minutes. Council Members report on subcommittee assignments to various regional boards and committees, listed below. At this time, any Council Member or the City Manager may ask a question for clarification, make an announcement, or report briefly on their respective assignments. 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)
Per Council direction at the August 27th Special Meeting, for the September 17, October 1, and October 15 City Council Meetings, Liaison Reports will be heard after the City Manager Report.

Mayor Stewart
• City/University Quarterly Meeting
• Regional Economic Action Coalition (REACH)
• City Selection Committee
• Performing Arts Center Commission
• Visit SLO County Advisory Committee
• Whale Rock Commission
Vice Mayor Pease
• Downtown Association Board
• County Water Resources Advisory Committee (WRAC)
• San Luis Obispo Council of Government (SLOCOG)
• San Luis Obispo Regional Transit Authority (SLORTA)
Council Member Francis
• Cal Poly Campus Planning Committee
• Community Action Partnership
• Local Agency Formation Commission (LAFCO)
• Nacimiento Water Project
Council Member Marx
• Air Pollution Control District (APCD)
• Integrated Waste Management Authority (IWMA)
• Airport Land Use
• Central Coast Clean Energy (3CE)
Council Member Shoresman
• California Men's Colony Citizens Advisory Committee
• Homeless Services Oversight Committee (HSOC)
• Zone 9 Advisory Committee
• SLO Climate Coalition Liaison

9. COUNCIL COMMUNICATIONS
Not to exceed 15 minutes. The purpose of this time is to allow Council to provide updates, make announcements, or share information on City activities.

10. ADJOURNMENT
The next Regular Meeting of the City Council will be held on October 15, 2024 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 Channel: www.youtube.com/CityofSanLuisObispo. 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
September 17, 2024, 5:30 p.m.

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

Present:

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

1. CLOSED SESSION (4:30 - 5:30 PM)

1.a CALL TO ORDER
Mayor Erica A. Stewart called the Closed Session Meeting of the San Luis Obispo City Council to order at 4:30 p.m. in the Council Hearing Room at City Hall, 990 Palm Street, San Luis Obispo with all Council Members present.

1.b PUBLIC COMMENT FOR CLOSED SESSION ITEMS ONLY
None

1.c CONFERENCE WITH LEGAL COUNSEL - ANTICIPATED LITIGATION Action: City Attorney Christine Dietrick indicated that Council took no reportable action on this item.

1.d ADJOURNMENT
Closed Session adjourned at 5:40 p.m. to the Regular City Council meeting.

2. CALL TO ORDER
A Regular Meeting of the San Luis Obispo City Council was called to order on September 17, 2024 at 5:40 p.m. in the Council Chambers, 990 Palm Street, San Luis Obispo, by Mayor Stewart.

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

2 4. PRESENTATIONS

4.a RECOVERY MONTH PROCLAMATION
Mayor Erica A. Stewart presented a proclamation declaring the month of September as "Recovery Month" to Amanda Torrente on behalf of Sun Street Centers.

4.b DRIVE ELECTRIC WEEK PROCLAMATION
Mayor Erica A. Stewart presented a proclamation declaring September 27 - October 6, 2024 as "Drive Electric Week" to Laura Albers on behalf of SLO Climate Coalition.

4.c INTRODUCTION OF FIRE MARSHAL KIM RAPP
Fire Chief Todd Tuggle introduced the new Fire Marshal, Kim Rapp.

4.d CITY MANAGER REPORT
City Manager Whitney McDonald provided a report on upcoming projects.

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

Scott Collins - Housing Authority of San Luis Obispo
Jim Aaron
--End of Public Comment--

6. CONSENT AGENDA
Public Comments:

None
---End of Public Comment---
Motion By Council Member Marx
Second By Council Member Shoresman
To approve Consent Calendar Items 6a to 6e.

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

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

6.b MINUTES REVIEW - AUGUST 27, 2024 AND SEPTEMBER 3, 2024

COUNCIL MINUTES
Approve the following minutes of the City Council:
 August 27, 2024 - Special Meeting
 September 3, 2024 - Regular Meeting

6.c AUTHORIZATION TO ADVERTISE CALIFORNIA BOULEVARD AND TAFT STREET WATER MAIN REPLACEMENT, SPECIFICATION NO.
2000545

1. Approve the project plans and specifications for California Boulevard and Taft Street Water Main Replacement, Specification Number 2000545; and

2. Authorize staff to advertise for bids; and

3. Authorize the City Manager to award the Construction Contract pursuant to Section 3.24.190 of the Municipal Code if the lowest responsible bid is within the Engineer’s Estimate of $1,200,000; and

4. Authorize the City Engineer to approve Contract Change Orders up to the available project budget and any amended budget
subsequently approved by the City Manager up to $200,000.

6.d AMEND THE COUNCIL POLICIES AND PROCEDURES MANUAL TO

INCLUDE A SECTION REGARDING INTERNS/VOLUNTEERS
Adopt Resolution No. 11520 (2024 Series) entitled, “A Resolution of the City Council of the City of San Luis Obispo, California, amending its Council Policies and Procedures Manual,” regarding the use of Council Member Interns/Volunteers with the addition to 2.5.6 Council Volunteers, as written in the staff agenda correspondence, requiring Volunteer Waivers.

6.e SECOND READING OF ORDINANCE NO. 1738 (2024 SERIES)
AMENDING MUNICIPAL CODE TITLE 6 - ANIMALS
Adopt Ordinance No. 1738 (2024 Series) entitled, “An Ordinance of the City Council of the City of San Luis Obispo, California, amending Title 6 (Animals) of the Municipal Code to adopt and incorporate by reference San Luis Obispo County Code Title 9 (Animals) and to retain certain city requirements regarding animals.”

4 7. PUBLIC HEARING AND BUSINESS ITEMS

7.a FIRE DEPARTMENT STRATEGIC PLAN 2024-2029
Fire Chief Todd Tuggle provided an in-depth staff report and responded to Council questions.

Public Comments:

None
---End of Public Comment---
ACTION: By consensus, the Council provided comments and directed staff to receive and file the Fire Department's 2024-2029 Strategic Plan.

7.b ADOPT A RESOLUTION AND INTRODUCE AN ORDINANCE TO AMEND SECTION 4.56.050 (PAYMENT OF FEES) OF THE MUNICIPAL CODE

TO ESTABLISH A DEVELOPMENT IMPACT FEE DEFERRAL PROGRAM

FOR ELIGIBLE AFFORDABLE HOUSING PROJECTS
Principal Planner Teresa McClish and Housing Coordinator David Amini provided an in-depth staff report and responded to Council questions.

Public Comments:

Scott Collins - Housing Authority of San Luis Obispo
---End of Public Comment---
Motion By Council Member Shoresman
Second By Council Member Francis

1. Adopt Resolution No. 11521 (2024 Series) entitled, “A Resolution of the City Council of the City of San Luis Obispo, California, superseding Resolution No. 9903 (2007 Series) providing for the deferral of city-wide development impact fees for eligible affordable housing projects”; and

2. Introduce Ordinance No. 1742 (2024 Series) entitled, “An Ordinance of the City Council of the City of San Luis Obispo, California, establishing a development impact fee deferral program for eligible affordable housing projects”; and

3. Authorize the Community Development Director to approve applications for impact fee deferrals and execute agreements therefor, in forms approved by the City Attorney’s Office. The Director may refer approvals to City Council on an as-needed basis or concurrently with Affordable Housing Fund (AHF) awards.

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

8. LIAISON REPORTS
Mayor Stewart indicated that the City/University meeting is scheduled for Thursday. She attended the Casa Annual Gala. She also met with the Regional Representative of the Anti-Defamation League regarding how we can support our community.

Vice Mayor Pease wanted to highlight the Downtown SLO Board and Friends of Downtown SLO are holding a Fall Fest.

Council Member Marx indicated there is an APCP meeting on September 18th.

There is approval of a grant for landscaping equipment trade out for an electric one on their agenda. She attended an IWMA Board meeting where they approved the purchase of a new building for their Administrative Offices. The next Airport Land Use meeting is cancelled. She will be attending the Central Coast Community Energy Annual meeting on September 18th and 19th in Aptos.

Council Member Shoresman attended a Zone 9 meeting where the Mid-Higuera bypass was discussed. She attended the Climate Coalition event at Meadow Park. Their next regular meeting is Thursday. She also indicated that there is a Homeless Services Oversight Committee meeting tomorrow (Wednesday September 18th at 1:00 p.m.)

9. COUNCIL COMMUNICATIONS
Council provided updates, made announcements, and shared information on City activities.

10. ADJOURNMENT
The meeting was adjourned at 8:16 p.m. The next Regular City Council Meeting is scheduled for October 1, 2024 at 5:30 p.m. in the Council Chambers at City Hall, 990 Palm Street, San Luis Obispo.
_________________________
APPROVED BY COUNCIL: XX/XX/2024

Item 6c
Department: Community Development
Cost Center: 4001
For Agenda of: 10/1/2024
Placement: Consent
Estimated Time: N/A
FROM: Timmi Tway, Community Development Director
Prepared By: Ivana Gomez, Cannabis Business Coordinator SUBJECT: SECOND READING AND ADOPTION OF ORDINANCE NO. 1740 (2024 SERIES) APPROVING AN AMENDMENT TO TABLE 2-1 IN TITLE 17 (ZONING REGULATIONS) OF THE MUNICIPAL CODE TO ALLOW

CANNABIS RETAIL STOREFRONTS TO CONDUCT RETAIL SALES BY

DELIVERY WITH APPROVAL OF A CONDITIO

RECOMMENDATION
Adopt Ordinance No. 1740 (2024 Series) entitled, “An Ordinance of the City Council of the City of San Luis Obispo, California, approving amendments to Table 2-1 (Uses Allowed by Zone) in Title 17 (Zoning Regulations) to allow Cannabis Retail Storefronts to conduct retail sales by delivery with approval of a Conditional Use Permit or by amendment to an existing Conditional Use Permit. The project is exempt from environmental review (CEQA) (CODE-0401-2024).”

POLICY CONTEXT
Per Chapter 17.124 (Amendments – Zoning Regulations and Zoning Map), the City Council may review the proposed text amendment, including the Planning Commission’s recommendation, and take action based on consistency with the General Plan and State Law.

DISCUSSION
Previous Council and Advisory Body Action
On March 7, 2023, at the Annual Cannabis Business Program Update, the City Council provided direction to staff to update the Cannabis Program to allow retail storefronts to offer delivery services. As a result, staff revised the program’s administrative regulations and application materials to allow retail storefronts to engage in delivery. These changes required thorough internal review and approval by the City Manager via City Manager Report.

On August 14, 2024, the Planning Commission reviewed the proposed text amendment and recommended the City Council introduce and adopt the Ordinance approving the

Item 6c
amendment to Table 2-1 (Uses Allowed by Zone) in Title 17 (Zoning Regulations) of the Municipal Code (Resolution No. PC-1089-24).

On September 3, 2024, the City Council voted 5 – 0 to introduce Ordinance No. 1740 (2024 Series) approving an amendment to Table 2-1 (Uses Allowed by Zone) of Title 17 (Zoning Regulations) in the Municipal Code to allow retail storefronts to conduct retail sales by delivery with the approval of a Conditional Use Permit, or by amendment to an existing Conditional Use Permit
If Council adopts the Ordinance, it shall be effective 30 days after its final passage.

Public Engagement
Each public hearing associated with this item has been noticed in compliance with the City’s notification requirements for a proposed text amendment. If the Ordinance is adopted, existing retail storefronts who wish to engage in delivery may apply for an amendment to their existing Conditional Use Permit, which is a discretionary review process that requires legal notices and a public hearing for each development project.

Future retail storefronts in the City may apply for a Conditional Use Permit to establish and operate a retail storefront and may opt to engage in storefront sales only or storefront and delivery sales at the time of application.

CONCURRENCE
The City has a designated steering committee comprised of representatives from the City Attorney’s Office, Police Department, Finance Department, Community Development Department, and City Administration to support the City’s Cannabis Program. The proposed amendments contained within this report have been reviewed and are supported by the steering committee as consistent with previous Council direction.

ENVIRONMENTAL REVIEW
Adoption of the proposed amendments to Table 2-1 (Uses Allowed by Zone, Section §

17.10.020) of the Municipal Code has been reviewed in accordance with the California Environmental Quality Act (CEQA) Guidelines. It has been determined that the amendments are exempt from environmental review under CEQA Guidelines Section § 15301(b)(3) (General Rule Exemption), which applies to activities that can be clearly seen to have no potential for significant environmental impact. The proposed amendments involve minor modifications to the regulations governing commercial cannabis retail storefront operations and are not expected to have any significant effect on the environment. However, project-specific environmental review will be required for any new commercial cannabis activity. Any new or existing cannabis retail storefront seeking a Conditional Use Permit or an amendment to an existing permit to engage in delivery services will be required to comply with all applicable state and local laws, including CEQA requirements.

FISCAL IMPACT

Item 6c
Budgeted: N/A Budget Year: 2024-25
Funding Identified: N/A
Fiscal Analysis:

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

Total $0 $0 $0 $0
There is no fiscal impact associated with the proposed amendments to the Municipal Code. There are many delivery services located outside of City limits that are able to deliver within the City, so staff anticipates a minimal increase in tax revenue if the Ordinance is approved.

ALTERNATIVES

1. Council may decide to modify the Ordinance before adoption. Depending on changes proposed, modification of the Ordinance may require reintroduction and then adoption during subsequent public hearing, which will delay implementation of the Ordinance.

2. Council may decide not to adopt the Ordinance. This action is not recommended because it the Ordinance is consistent with City Council direction to allow cannabis retail storefronts to deliver.

ATTACHMENTS
A – Ordinance No. 1740 (2024 Series)

O 1740
ORDINANCE NO. 1740 (2024 SERIES)

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SAN LUIS OBISPO, CALIFORNIA, APPROVING AMENDMENTS TO TABLE 2-1
(USES ALLOWED BY ZONE) IN TITLE 17 (ZONING REGULATIONS) OF

THE MUNICIPAL CODE TO ALLOW CANNABIS RETAIL

STOREFRONTS TO CONDUCT RETAIL SALES BY DELIVERY WITH

APPROVAL OF A CONDITIONAL USE PERMIT OR BY AMENDMENT
TO AN EXISTING CONDITIONAL USE PERMIT. THE PROJECT IS
EXEMPT FROM ENVIRONMENTAL REVIEW (CEQA) (CODE-0401-2024) WHEREAS, the Planning Commission of the City of San Luis Obispo conducted a public hearing in the Council Chamber of City Hall, 990 Palm Street, San Luis Obispo, California on August 14, 2024, for the purpose of recommending an amendment to Table 2-1 (Uses Allowed by Zone) in Title 17 (Zoning Regulations) of the Municipal Code, pursuant to a proceeding under CODE-0401-2024; City of San Luis Obispo, applicant; and
WHEREAS, the City Council of the City of San Luis Obispo conducted a public hearing in the Council Chamber of City Hall, 990 Palm Street, San Luis Obispo, California on September 3, 2024, for the purpose of introducing an ordinance to amend Table 2-1 (Uses Allowed by Zone) in Title 17 (Zoning Regulations) of the Municipal Code, pursuant to a proceeding under CODE-0401-2024; City of San Luis Obispo, applicant; and
WHEREAS, notices of said public hearing were made at the time and in the manner required by law; and
WHEREAS, the City Council has duly considered all evidence, including the testimony of interested parties and the evaluation and recommendation by staff, presented at said hearing.

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

SECTION 1. Findings. Based upon all the evidence, the City Council makes the following findings:

1. The proposed amendments to Table 2-1 (Uses Allowed by Zone, Section §

17.10.020) of the Municipal Code are consistent with the State of California’s Department of Cannabis Control regulations.

2. The proposed amendments to Table 2-1 (Uses Allowed by Zone, Section §

17.10.020) are consistent with previous City Council direction on March 7, 2023, to update the Cannabis Program to allow cannabis retail storefronts to offer delivery services.

3. The proposed amendments to Table 2-1 (Uses Allowed by Zone, Section §

17.10.020) are consistent with the City Council's broader goals of regulating cannabis businesses to ensure public safety and compliance with state laws.

Ordinance No. 1740 (2024 Series) Page 2
O 1740

4. The proposed amendments to Table 2-1 (Uses Allowed by Zone Section §

17.10.020) of the Municipal Code are consistent with the Major City Goal (Financial Plan 2023-2025) to implement initiatives that reinforce a thriving and sustainable local economy as well as to ensure fiscally responsible and sustainable city operations by strengthening existing cannabis businesses, promoting the economic well-being of the community.

5. The proposed amendments to Table 2-1 (Uses Allowed by Zone Section §

17.10.020) of the Municipal Code are consistent with the purpose of the Retail Commercial (C-R) Zone to serve the entire community and the region, as well as tourists and travelers.

6. The proposed amendments to Table 2-1 (Uses Allowed by Zone Section §

17.10.020) of the Municipal Code are consistent with the purpose of the Service Commercial (C-S) Zone to provide services to meet local needs and demands of the region, including services and limited retail.

SECTION 2. Environmental Determination. Adoption of the proposed amendments to Table 2-1 (Uses Allowed by Zone, Section § 17.10.020) of the Municipal Code has been reviewed in accordance with the California Environmental Quality Act (CEQA) Guidelines. It has been determined that the amendments are exempt from environmental review under CEQA Guidelines Section § 15301(b)(3) (General Rule Exemption), which applies to activities that can be clearly seen to have no potential for significant environmental impact. The proposed amendments involve minor modifications to the regulations governing commercial cannabis retail storefront operations and are not expected to have any significant effect on the environment. However, project-specific environmental review will be required for any new commercial cannabis activity. Any new or existing cannabis retail storefront seeking a Conditional Use Permit or an amendment to an existing permit to engage in delivery services will be required to comply with all applicable state and local laws, including CEQA requirements.

SECTION 3. Action. The City Council hereby adopts an ordinance to amend the Land Use section entitled, “Cannabis Activity” of Table 2-1 (Uses Allowed by Zone, Section § 17.10.020) in Title 17 (Zoning Regulations) of the City of San Luis Obispo Municipal Code to allow cannabis retail storefronts to conduct retail sales by delivery with approval of a Conditional Use Permit or by amendment to an existing Conditional Use Permit as set forth and incorporated herein.

Ordinance No. 1740 (2024 Series) Page 3
O 1740
Table 2-1: Uses Allowed By Zone
Key:

A = Allowed; MUP = Minor Use Permit approval required; CUP = Conditional Use Permit approval required
M/A = Minor Use Permit approval required on ground floor along street frontage, allowed on second floor or above
Land Use
Permit Requirement by Zoning District Specific Use
AG C/OS R Regulations -1 R-2 R-3 R-4 PF O C-N C-C C-R C-D C-T C-S M BP

CANNABIS ACTIVITY
Cannabis See Section 17.86.080
Specialty Cultivator MUP MUP MUP
Small Cultivator MUP MUP MUP
Nursery MUP MUP MUP
Manufacturing MUP MUP MUP
Distributor MUP MUP MUP
Microbusiness CUP MUP/
CUP
MUP/
CUP
MUP/
CUP
See Sec.

17.86.080(E)(12) for
specific requirements per
zone.

Testing CUP A A A
Director’s action required.

See also Sec.

17.86.080(E)(9).

Retailer (Delivery
Only) MUP MUP MUP
Retailer (Storefront
with or without Delivery)

CUP CUP
Existing retail storefronts
that wish to provide
delivery services shall
modify their existing
Conditional Use Permit to
include delivery.

SECTION 4. Severability. If any subdivision, paragraph, sentence, clause, or phrase of this Ordinance is, for any reason, held to be invalid or unenforceable by a court of competent jurisdiction, such invalid or unenforceability shall not affect the validity or enforcement of the remaining provisions of this Ordinance, or any other provisions of the City’s rules and regulations. It is the City’s express intent that each remaining portion would have been adopted irrespective of the fact that any one or more subdivisions, paragraphs, sentences, clauses, or phrases be declared invalid or unenforceable.

Ordinance No. 1740 (2024 Series) Page 4
O 1740
SECTION 5. A summary of this ordinance, together with the names of Council members voting for and against, shall be published at least five (5) days prior to its final passage, in The New Times, a newspaper published and circulated in this City. This ordinance shall go into effect at the expiration of thirty (30) days after its final passage.

INTRODUCED on the 3
rd day of August 2024, AND FINALLY ADOPTED by the
Council of the City of San Luis Obispo on the ____ day of ____, 2024, on the following vote:

AYES:

NOES:

ABSENT:
_____________________
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 6d
Department: Community Development
Cost Center: 4003
For Agenda of: 10/1/2024
Placement: Consent
Estimated Time: N/A
FROM: Timmi Tway, Community Development Director
Prepared By: Walter Oetzell, Assistant Planner
SUBJECT: APPROVE A MILLS ACT HISTORICAL PROPERTY PRESERVATION AGREEMENT FOR THE SNYDER HOUSE AT 1406 MORRO STREET
(HIST-0386-2024)

RECOMMENDATION
As recommended by the Cultural Heritage Committee, adopt a Draft Resolution entitled, “A Resolution of the City Council of the City of San Luis Obispo, California, approving a Historic Property Preservation Agreement between the City and the owner of the Snyder House at 1406 Morro Street (Application No. HIST-0386-2024).”

POLICY CONTEXT
The recommended action on this item is supported by historical preservation policies set out in § 3.0 of the Conservation and Open Space Element of the City’s General Plan, particularly Program 3.6.2, regarding participation in financial incentive programs to encourage maintenance and restoration of historic properties, and also with the purpose of encouraging private stewardship of historic buildings through incentives, as provided by Section 14.01.010 (B)(3) of the City’s Historic Preservation Ordinance.

DISCUSSION
The owners of the Snyder House at 1406
Morro Street (Figure 1) submitted an
application to enter into a Mills Act Historic
Property Preservation Agreement with the
City (see Request Letter, Attachment B, and
Draft Agreement, Attachment C).

The property is located at the southeast
corner of Morro and Pismo Streets, in the Old
Town Historic District, and is developed with
six residential buildings. The Snyder House is
located at the corner of the property and is a
two-story single-family dwelling built around
1885 (Figure 1), currently accommodating
Figure 1: The Snyder House (1406 Morro)

Item 6d
several rental units. The property was included in the Master Inventory of Historic Structures adopted in 1983 (Resolution No. 5197).1
The Historic Resources Inventory for the building (Attachment D) notes its architectural significance and several of the characteristic features of the dwelling’s architectural style, described as “Victorian Wood Frame with Eastlake Motifs such as its shiplap siding, highpitched roof, gabled dormers, and bargeboard woodwork attached to the eaves and façade. Also noted is its association with D.D. and Harriet H. Snyder, who operated a store on Higuera Street, and lived in the home in 1904 (Inventory, pg. 2).

The Mills Act Program
It is the City’s policy that significant historic resources be rehabilitated and preserved (COSE § 3.3). The Mills Act Program is a property tax reduction program for protection of cultural resources that encourages their maintenance and restoration (§ 3.6.2 of the General Plan Conservation and Open Space Element). Participation in the program is limited to Master List Resources; the most unique and important historic resources in terms of age, architectural or historical significance, rarity, or association with important persons or events in the City’s past (HPO § 14.01.050 (A)). Currently, there are 66 properties participating in the program, with the last request (for the Brecheen House at 1133 Pismo) approved by the Council in August, 2024.

The City and owners of a Master List Resource enter into an historical property contract under which the owners agree to restore, maintain, and protect the property in accordance with historical preservation standards. Owners may qualify for property tax relief, potentially realizing tax savings of between 40% and 60% per year. A Mills Act Contract has a minimum term of ten years, and is extended annually for an additional year, unless, after the initial term, either the City or the owner, by written notice, decides not to renew the contract.

Previous Council or Advisory Body Action
On August 26, 2024, the Cultural Heritage Committee reviewed this application for participation in the Mills Act Historic Preservation Program,2 along with the terms of the draft preservation contract, and, by a vote of 7-0, recommended that the Council approve the contract.

Public Engagement
Public notice of this hearing has been provided to owners and occupants of property near the subject site, and published in The New Times and posted on the City’s website. The agendas for this meeting have been posted at City Hall and online, consistent with adopted notification procedures for development projects.

1 Council Resolution 5197 available at: opengov.slocity.org/WebLink/DocView.aspx?id=27829 2 Cultural Heritage Committee staff report (August 26, 2024) available online at:
opengov.slocity.org/WebLink/DocView.aspx?id=198786

Item 6d

ENVIRONMENTAL REVIEW
Entering into a “Mills Act Contract” with the owners of historical property is not subject to the provisions of the California Environmental Quality Act (CEQA) because it is not a project as defined in CEQA Guidelines § 15378 (Definitions – Project). Implementation of the Mills Act is a government fiscal activity which does not involve commitment to any specific project resulting in a potentially significant physical impact on the environment CEQA Guidelines § 15378 (b)(4)).

FISCAL IMPACT
Budgeted: No Budget Year: 2024-2025
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 $ $ 0 $ $ 0
After the Mills Act contract is recorded, the County Assessor values the property by an income capitalization method, following guidelines provided by the State Board of Equalization. Because of the timing and the method of valuing the restricted property, it is difficult to accurately estimate the tax savings and resulting fiscal impacts to the City under a particular historical property contract. However, the Office of Historic Preservation (California Department of Parks and Recreation) estimates that property owners participating in the program may realize property tax savings of between 40% and 60% each year for newly improved or purchased older properties. The City’s property tax revenue will be reduced accordingly.

ALTERNATIVES

1. Decline to enter into a Mills Act Historical Property Contract with the property owner. This alternative is not recommended. The contract provides a tax relief incentive that is a tool for achieving the City’s goals for historical preservation.

2. Continue consideration of the request to a future date for additional information or discussion.

Item 6d

ATTACHMENTS
A - Draft Resolution approving a Mills Act Contract for 1406 Morro Street) B - Draft Historic Property Preservation Agreement (HIST-0386-2024) C - Applicant Request Letter (HIST-0386-2024)
D - Historic Resources Inventory (1406 Morro)

RESOLUTION NO. ____ (2024 SERIES)

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

OBISPO, CALIFORNIA, APPROVING A HISTORIC PROPERTY

PRESERVATION AGREEMENT BETWEEN THE CITY AND THE
OWNERS OF THE SNYDER HOUSE AT 1406 MORRO STREET
(APPLICATION NO. HIST-0386-2024)
WHEREAS, the City Council of the City of San Luis Obispo is authorized by California Government Code Section 50280 et seq. (known as “the Mills Act”) to enter into contracts with the owners of qualified historical properties to provide for appropriate use, maintenance, and rehabilitation such that these historic properties retain their historic characteristics; and
WHEREAS, the City Council has adopted Resolution No. 9136 (2000 Series), establishing the Mills Act Historic Property Tax Incentive Program as an ongoing historic preservation program to promote the preservation, maintenance, and rehabilitation of historic resources through financial incentives; and
WHEREAS, the City Council of the City of San Luis Obispo designated 1406 Morro Street, described as the Snyder House, as a Master List Historic Resource of the City of San Luis Obispo on August 16, 1983 by adoption of Resolution No. 5197, pursuant to the policies in the City’s Historic Preservation Program Guidelines; and WHEREAS, Fred E. Kelley and Sophia P. Kelley, Trustees of the Kelley Family Trust dated April 13, 2005, are the owners of that certain qualified real property, together with associated structures and improvement thereon, located on Assessor’s Parcel Number 003-541-017, located at 1406 Morro Street, in the City of San Luis Obispo, California, also described as The Snyder House; and
WHEREAS, the City and Owners, for their mutual benefit, now desire to enter into an agreement to limit the use of the property to prevent inappropriate alterations and to ensure that character-defining features are preserved and maintained in an exemplary manner, and repairs and improvements are completed as necessary to carry out the purposes of California Government Code, Chapter 1, Part 5 of Division 1 of Title 5, Article 12, Sec. 50280 et seq., and to qualify for an assessment of valuation pursuant to Article

1.9, Sec. 439 et. seq. of the Revenue and Taxation Code; and WHEREAS, the Cultural Heritage Committee of the City of San Luis Obispo conducted a public hearing in the Council Chamber of City Hall, 990 Palm Street, San Luis Obispo, California, on August 26, 2024, for the purpose of reviewing the proposed historic property preservation agreement, and recommended that the City enter into the agreement; and

Resolution No. _____ (2024 Series) Page 2
R ______
WHEREAS, the City Council conducted a public meeting in the Council Chamber of City Hall, 990 Palm Street, San Luis Obispo, California, on October 1, 2024, for the purpose of considering approval of the historic property preservation agreement, and has duly considered all evidence, including the record of the Cultural Heritage Committee hearing and recommendation and the evaluation and recommendation by staff; and WHEREAS, notices of said public hearings and meetings were made at the time and in the manner required by law.

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

SECTION 1. Findings. Based upon all the evidence, the City Council makes the following findings:
a) Conservation and Open Space Element Program 3.6.2 states that the City will participate in financial assistance programs such as property tax reduction programs that encourage maintenance and restoration of historic properties. b) The Snyder House, located at 1406 Morro Street, has been recognized as a historic asset in the community by its designation as a Master List Historic Property by the City Council on August 16, 1983 (Resolution 5197). As such, maintaining the structure will meet the City’s goals for historic preservation listed in policies 3.3.1 through 3.3.5 of the Conservation and Open Space Element.

SECTION 2. Environmental Determination. The City Council has determined that the above actions do not constitute a project, as defined in California Environmental Quality Act Guidelines § 15378, and are not subject to environmental review.

SECTION 3. Historic Property Preservation Agreement Approved. The City Council hereby approves the “Historic Property Preservation Agreement between the City of San Luis Obispo and the Owners of the Historic Property Located at 1406 Morro Street,” to be entered into by the City and the property owners, Fred E. Kelley and Sophia P. Kelley, Trustees of the Kelley Family Trust dated April 13, 2005.

SECTION 4. Community Development Director Authorized to Sign Agreement for City. The City Council hereby authorizes the Community Development Director to execute said agreement on behalf of the Council of the City of San Luis Obispo.

Resolution No. _____ (2024 Series) Page 3
R ______
SECTION 5. Recordation of the Agreement. No later than twenty (20) days after the parties enter into said agreement, the City Clerk shall cause the agreement to be recorded in the Office of the County Recorder of the County of San Luis Obispo.

On motion of Council Member ________________, seconded by Council Member _____________, and on the following roll call vote:

AYES:

NOES:

ABSENT:

The foregoing resolution was passed and adopted this _____ day of___________, 2024. ___________________________
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

HISTORIC PROPERTY PRESERVATION AGREEMENT BETWEEN

THE CITY OF SAN LUIS OBISPO AND THE OWNERS OF THE HISTORIC PROPERTY LOCATED AT 1406 MORRO STREET, IN THE CITY AND THE COUNTY OF SAN LUIS OBISPO, STATE OF CALIFORNIA.

THIS AGREEMENT is made and entered into this________ day of ________ , 2024, by and between the City of San Luis Obispo, a municipal corporation (hereinafter referred to as the “City”), and Fred E. Kelley and Sophia P. Kelley, Trustees of the Kelley Family Trust dated April 13, 2005 (hereinafter referred to as “Owners”), and collectively referred to as the “parties.” Section 1. Description of Preservation Measures. The Owners, their heirs, or assigns hereby agrees to undertake and complete, at their expense, the preservation, maintenance, and improvements measures described in “Exhibit A” attached hereto.

Section 2. Effective Date and Term of Agreement. This agreement shall be effective and commence upon recordation and shall remain in effect for an initial term of ten (10) years thereafter. Each year upon the anniversary of the agreement’s effective date, such initial term will automatically be extended as provided in California Government Code Section 50280 through 50290 and in Section 3, below.

Section 3. Agreement Renewal and Non-renewal.
a. Each year on the anniversary of the effective date of this agreement (hereinafter referred to as “annual renewal date”), a year shall automatically be added to the initial term of this agreement unless written notice of nonrenewal is served as provided herein.
b. If the Owners or the City desire in any year not to renew the agreement, the Owners or the City shall serve written notice of nonrenewal of the agreement on the other party. Unless such notice is served by the Owners to the City at least ninety (90) days prior to the annual renewal date, or served by the City to the Owners at least sixty (60) days prior to the annual renewal date, one (1) year shall automatically be added to the term of the agreement as provided herein.
c. The Owners may make a written protest of the notice. The City may, at any time prior to the annual renewal date, withdraw its notice to the Owners of nonrenewal. d. If either the City or the Owners serves notice to the other party of nonrenewal in any year, the agreement shall remain in effect for the balance of the term then remaining.

Section 4. Standards and Conditions. During the term of this agreement, the historic property shall be subject to the following conditions:
a. Owners agree to preserve, maintain, and, where necessary, restore or rehabilitate the building and its character-defining features, including: the building’s general

Historic Preservation Agreement
1406 Morro Street

architectural form, style, materials, design, scale, proportions, organization of windows, doors, and other openings; interior architectural elements that are integral to the building’s historic character or significance; exterior materials, coatings, textures, details, mass, roof line, porch, and other aspects of the appearance of the building’s exterior, as described in Exhibit A, to the satisfaction of the Community Development Director or his designee.
b. The building’s interior closely relates to the property’s eligibility as a qualified historic property. The Owners agree to allow pre-arranged tours on a limited basis, to the approval of the Community Development Director or his designee. c. All building changes shall comply with applicable City specific plans, City regulations and guidelines, and conform to the rules and regulations of the Office of Historic Preservation of the California Department of Parks and Recreation, namely the U.S. Secretary of the Interior’s Standards for Rehabilitation and Standards and Guidelines for Historic Preservation Projects. Interior remodeling shall retain original, character-defining architectural features such wood details, pillars and arches, special tile work, or architectural ornamentation to the greatest extent possible.
d. The Community Development Director shall be notified by the Owners of changes to character-defining exterior features prior to their execution, such as major landscaping projects and tree removals, exterior door or window replacement, repainting, remodeling, or other exterior alterations requiring a building permit.

The Owners agree to secure all necessary City approvals and/or permits prior to changing the building’s use or commencing construction work. e. Owners agree that property tax savings resulting from this agreement shall be used for property maintenance and improvements as described in Exhibit A. f. The following are prohibited: demolition or partial demolition of the historic building; exterior alterations or additions not in keeping with the standards listed above; dilapidated, deteriorating, or unrepaired structures such as fences, roofs, doors, walls, windows; outdoor storage of junk, trash, debris, appliances, or furniture visible from a public way; or any device, decoration, structure, or vegetation which is unsightly due to lack of maintenance or because such feature adversely affects, or is visually incompatible with, the property’s recognized historic character, significance, and design as determined by the Community Development Director.
g. Owners shall allow reasonable periodic examination, by prior appointment, of the interior and exterior of the historic property by representatives of the County Assessor, the State Department of Parks and Recreation, the State Board of Equalization, and the City as may be necessary to determine the owners’ compliance with the terms and provisions of this agreement.

Historic Preservation Agreement
1406 Morro Street

Section 5. Furnishing of Information. The Owners hereby agree to furnish any and all information requested by the City which may be necessary or advisable to determine compliance with the terms and provisions of this agreement.

Section 6. Cancellation.
a. The City, following a duly-noticed public hearing by the City Council as set forth in Government Code Section 50285, may cancel this agreement if it determines that the Owners have breached any of the conditions of this agreement or has allowed the property to deteriorate to the point that it no longer meets the standards for a qualified historic property; or if the City determines that the Owners have failed to preserve, maintain, or rehabilitate the property in the manner specified in Section 4 of this agreement. If a contract is cancelled because of failure of the Owners to preserve, maintain, and rehabilitate the historic property as specified above, the Owners shall pay a cancellation fee to the State Controller as set forth in Government Code Section 50286, which states that the fee shall be 12 ½% of the full value of the property at the time of cancellation without regard to any restriction imposed with this agreement.
b. If the historic building is acquired by eminent domain and the City Council determines that the acquisition frustrates the purpose of the agreement, the agreement shall be cancelled and no fee imposed, as specified in Government Code Section 50288.

Section 7. Enforcement of Agreement.
a. In lieu of and/or in addition to any provisions to cancel the agreement as referenced herein, the City may specifically enforce, or enjoin the breach of, the terms of the agreement. In the event of a default, under the provisions to cancel the agreement by the Owners, the City shall give written notice of violation to the Owners by registered or certified mail addressed to the address stated in this agreement. If such a violation is not corrected to the reasonable satisfaction of the Community Development Director or designee within thirty (30) days thereafter; or if not corrected within such a reasonable time as may be required to cure the breach or default of said breach; or if the default cannot be cured within thirty (30) days (provided that acts to cure the breach or default may be commenced within thirty (30) days and shall thereafter be diligently pursued to completion by the Owners); then the City may, without further notice, declare a default under the terms of this agreement and may bring any action necessary to specifically enforce the obligations of the Owners growing out of the terms of this agreement, apply to any court, state or federal, for injunctive relief against any violation by the owners or apply for such relief as may be appropriate.
b. The City does not waive any claim of default by the Owners if the City does not enforce or cancel this agreement. All other remedies at law or in equity which are not otherwise provided for in this agreement or in the City’s regulations governing

Historic Preservation Agreement
1406 Morro Street

historic properties are available to the City to pursue in the event that there is a breach or default under this agreement. No waiver by the City of any breach or default under this agreement shall be deemed to be a waiver of any other subsequent breach thereof or default herein under.
c. By mutual agreement, City and Owners may enter into mediation or binding arbitration to resolve disputes or grievances growing out of this contract.

Section 8. Binding Effect of Agreement. The Owners hereby subject the historic building located at 1406 Morro Street, San Luis Obispo, California, Assessors Parcel Number 003-541-017, to the covenants, reservations, and restrictions as set forth in this agreement. The City and Owners hereby declare their specific intent that the covenants, reservations, and restrictions as set forth herein shall be deemed covenants running with the land and shall pass to and be binding upon the Owners’ successors and assigns in title or interest to the historic property. Every contract, deed, or other instrument hereinafter executed, covering or conveying the historic property or any portion thereof, shall conclusively be held to have been executed, delivered, and accepted subject to the covenants, reservations, and restrictions expressed in this agreement regardless of whether such covenants, restrictions, and reservations are set forth in such contract, deed, or other instrument.

Section 9. Notice. Any notice required by the terms of this agreement shall be sent to the address of the respective parties as specified below or at other addresses that may be later specified by the parties hereto.

To City: Community Development Director
City of San Luis Obispo
919 Palm Street
San Luis Obispo, CA 93401
To Owners: Fred E. Kelly and Sophia P. Kelley, Trustees The Kelley Family Trust dated April 13, 2005
1323 Mill St
San Luis Obispo CA 93405
Section 10. General Provisions.
a. None of the terms, provisions, or conditions of this agreement shall be deemed to create a partnership between the parties hereto and any of their heirs, successors, or assigns, nor shall such terms, provisions, or conditions cause them to be considered joint ventures or members of any joint enterprise.
b. The Owners agree to hold the City and its elected and appointed officials, officers, agents, and employees harmless from liability for damage or from claims for damage for personal injuries, including death, and claims for property damage which may arise from the direct or indirect use or activities of the Owners, or from

Historic Preservation Agreement
1406 Morro Street

those of their contractor, subcontractor, agent, employee, or other person acting on the Owners’ behalf which relates to the use, operation, maintenance, or improvement of the historic property. The Owners hereby agree to and shall defend the City and its elected and appointed officials, officers, agents, and employees with respect to any and all claims or actions for damages caused by, or alleged to have been caused by, reason of the Owners’ activities in connection with the historic property, excepting however any such claims or actions which are the result of the sole negligence or willful misconduct of City, its officers, agents, or employees. c. This hold harmless provision applies to all damages and claims for damages suffered, or alleged to have been suffered, and costs of defense incurred, by reason of the operations referred to in this agreement regardless of whether or not the City prepared, supplied, or approved the plans, specifications, or other documents for the historic property.
d. All of the agreements, rights, covenants, reservations, and restrictions contained in this agreement shall be binding upon and shall inure to the benefit of the parties herein, their heirs, successors, legal representatives, assigns, and all persons acquiring any part or portion of the historic property, whether by operation of law or in any manner whatsoever.
e. In the event legal proceedings are brought by any party or parties to enforce or restrain a violation of any of the covenants, reservations, or restrictions contained herein, or to determine the rights and duties of any party hereunder, the prevailing party in such proceeding may recover all reasonable attorney’s fees to be fixed by the court, in addition to court costs and other relief ordered by the court. f. In the event that any of the provisions of this agreement are held to be unenforceable or invalid by any court of competent jurisdiction, or by subsequent preemptive legislation, the validity and enforceability of the remaining provisions, or portions thereof, shall not be affected thereby.
g. This agreement shall be construed and governed in accordance with the laws of the State of California.

Section 11. Amendments. This agreement may be amended, in whole or in part, only by a written recorded instrument executed by the parties hereto.

Section 12. Recordation and Fees. No later than twenty (20) days after the parties enter into this agreement, the City shall cause this agreement to be recorded in the office of the County Recorder of the County of San Luis Obispo. Participation in the program shall be at no cost to the Owners; however the City may charge reasonable and necessary fees to recover direct costs of executing, recording, and administering the historical property contracts.

Historic Preservation Agreement
1406 Morro Street

IN WITNESS WHEREOF, the City and Owners have executed this agreement on the day and year written above.

THE KELLEY FAMILY TRUST DATED APRIL 13, 2005
____________________________________ ______________________________ Fred E. Kelley, Trustee Date
____________________________________ ______________________________ Sophia P. Kelley, Trustee Date

CITY OF SAN LUIS OBISPO
____________________________________ ______________________________ Mayor Erica A. Stewart Date
ATTEST:
______________________________
Teresa Purrington, City Clerk
APPROVED AS TO FORM:
______________________________
J. Christine Dietrick, City Attorney

ALL SIGNATURES MUST BE NOTARIZED

Historic Preservation Agreement
1406 Morro Street

EXHIBIT A

MAINTENANCE AND IMPROVEMENT MEASURES FOR THE SNYDER HOUSE LOCATED AT 1406 MORRO STREET, SAN LUIS OBISPO, CALIFORNIA

1. Owners shall preserve, maintain, and repair the historic building, including its character-defining architectural features in good condition, to the satisfaction of the Community Development Director or designee, pursuant to a Mills Act Preservation Contract with the City of San Luis Obispo for property located at 1406 Morro Street.

Character-defining features shall include, but are not limited to: roof, eaves, dormers, trim, porches, walls and siding, architectural detailing, doors and windows, window screens and shutters, balustrades and railings, foundations, and surface treatments.

2. Owners agree to make the following improvements and/or repairs during the term of this contract but in no case later than ten (10) years from the contract date. All changes or repairs shall be consistent with the City’s Historic Preservation Ordinance and the Secretary of the Interior’s Standards for the Treatment of Historic Properties:
 Replacement of roofing materials and gutters
 Repair of trim detail (under gutters)
 Landscape maintenance, including trimming of trees
 Interior and exterior painting
 Waterproofing around claw-footed (original) bathtubs
 Window maintenance
 Interior structural renovations
 General maintenance and upkeep
THE KELLEY FAMILY TRUST DATED APRIL 13, 2005
____________________________________ ______________________________ Fred E. Kelley, Trustee Date
____________________________________ ______________________________ Sophia P. Kelley, Trustee Date

Hello,
Our names are Fred and Sophia Kelley and we own the Snyder House, a historical home located at 1406 Morro Street, at the corner of Morro and Pismo downtown. We believe this building qualifies for Mills Act Status and are therefore applying as such.

Built in 1885, the Snyder House boasts vernacular architecture consisting of its Victorian wood frame with Eastlake motifs. lt is an L-shaped, 2-story wood house with 150' of frontage by 180' of depth. lt has a high pitch roof with vintage gable dormers.

This legacy property once belonged to D.D. and Harriet Snyder who supplied necessary goods to the San Luis Obispo community by running a store at 760 Higuera.

We imagine they may be related to local dentist G.A. Snyder, after whom the Snyder Building was named. Later, it was home to Mrs. Marion Kohler who served to educate the local youth as a teacher. This beautifully-restored gem preserves the integrity of the Old Historic Town neighborhood by conveying a glimpse into SLO's past to everyone heading downtown on Morro or Pismo St. We love it and are very passionate about preserving it.

The home is currently on the "Master's List" and we hope to have it added to the Mills Act list. We have attached a list of Planned lmprovements and a timeline of what we plan to do in the next few years.

Thank you for your time and consideration
Best,
Sophia and Fred Kelley

PLANNED IMPROVEMENTS
Property: 1406 Morro Street, San Luis Obispo, CA 93401
Item
Replace roof
Replace gutters
Repair trim detail under gutters
Trim trees
Update landscaping
Landscape lighting
lnterior painting
Exterior painting
New fence in back by parking lot
Waterproof around daw tubs to keep original tubs
Maintenance on original windows
lnterior structural renovations
Itam completion vear
2024
2424
2025
2425
2026
2026-2027
2027
2027-2028
2025
2A25-2026
2027
2025-2028

Item 6e
Department: Administration
Cost Center: 1005
For Agenda of: 10/1/2024
Placement: Consent
Estimated Time: N/A
FROM: Greg Hermann, Deputy City Manager
Prepared By: Robert Hill, Sustainability & Natural Resources Official SUBJECT: SAN LUIS OBISPO REPERTORY THEATRE – AMENDMENT NO. 1 TO

GRANT AGREEMENT

RECOMMENDATION
Approve Amendment No. 1 to Grant Agreement between the San Luis Obispo Repertory Theatre and the City of San Luis Obispo to provide grant funding in the additional amount of $2,760,000 and authorize the Mayor to execute the agreement.

POLICY CONTEXT
SLO REP’s long-standing plans for construction of a new Downtown Theatre project (the “Downtown Theatre”) are consistent with the plans for the Cultural Arts District identified in the City’s Downtown Concept Plan (2017) and the “Economic Resiliency, Cultural Vitality and Fiscal Sustainability” Major City Goal, Strategic Approach 1.4(a), “Continue to work with our community partners to ensure the Cultural Vitality of the City,” as specified in the City’s 2023-25 Financial Plan.

DISCUSSION
Background
The San Luis Obispo Repertory Theatre (“SLO REP”), previously known as the San Luis Obispo Little Theatre, has been a long-standing tenant of the City’s old library property at 888 Morro Street located next door to City Hall. SLO REP first began to set forth a vision for a new 300-seat community theatre in the early 1990s. In March 2000, the City Council identified several options for such a theatre within what would become known as the Cultural Arts District Parking Structure site located at the corner of Palm and Nipomo Streets and committed to working with SLO REP.

SLO REP is a strong community partner and local non-profit, including a sound Board and governance structure, professional staff and theatre offerings, and implementation of a significant capital campaign in anticipation of the design, construction, and operating costs associated with the planned move to a new location.

Item 5e
On May 22, 2019, the City and SLO REP entered into an Exclusive Negotiating Agreement (“ENA”) to set the parameters and conditions for SLO REP’s long-term use of a portion of the City property for construction and operation of a new Downtown Theatre where the Cultural Arts District Parking Structure will also be located.

On January 25, 2022, SLO REP submitted to the City Council a formal “Challenge Grant” request for funding in the amount of $3,940,000 towards construction of the new Downtown Theatre project. At its regularly scheduled meeting on February 15, 2022, the City Council appropriated the requested funding as part of the FY 2021-2022 Mid-Year Budget Review. On April 21, 2022, the City and SLP REP entered into a Grant Agreement for funding in the aggregate amount of $3,940,000 (Attachment B).

On May 22, 2024, the City and SLO REP entered into Amendment No. 1 to the Exclusive Negotiating Agreement to extend the term for up to a one-year term in total, with additional provisions that require a written document that demonstrates an operating reserve of 20% for the first year of operating the new theatre and a three-year operating plan, including the establishment of a fund for building and facilities maintenance and repair. It is anticipated that the ENA will be replaced by a long-term lease with a term not-to-exceed 99 years when SLO REP can demonstrate that all conditions of the ENA, as amended, have been met (Attachments C and D). A lease agreement is tentatively planned for Council consideration in November 2024.

On May 30, 2024, the City Council received from SLO REP an update to their Challenge Grant request (Attachment E). In making its request for additional funding, SLO REP’s letter describes the following investment rationale:

1. Direct economic impact of more than $4 million annually once fully operational.

2. Attraction of 50,000 people annually to the downtown area.

3. Consistency with Major City Goals for arts and culture, as well as relevant DEI activities through multi-cultural programming, diverse casting, theatre offerings, and support of other local non-profits / community-based organizations.

4. Activation of “Theatre in the Park” events to reach new audiences at no-cost or low-cost at staged outdoor venues such as Mission Plaza or Mitchell Park.

On June 4, 2024, the City Council adopted Resolution No. 11501 (2024 Series) approving the Fiscal Year 2024-25 Budget, including an additional $2.76 million in grant funding to SLO REP towards the project (Attachment F).

Key Highlights of the Grant Agreement and Amendment No. 1 The existing Grant Agreement and draft Amendment No. 1 include the following key deal points and structure, consistent with prior direction from the City Council:

1. Grant funding in the combined amount of $6,700,000 ($3,940,000 plus $2,760,000).

2. The Exclusive Negotiating Agreement and Amendment No. 1 to Exclusive Negotiating Agreement are incorporated by reference.

Item 5e

3. SLO REP must meet a series of conditions precedent to funding, including raising and first utilizing all other necessary funds to complete the project, execution of a long-term lease for the property on which the new Downtown Theatre will be constructed, and obtaining all required building permits and project entitlements.

4. Grant funds may be used for direct construction costs at the new Downtown Theatre only.

5. Grant funds will be disbursed only on a reimbursement basis upon submittal of satisfactory invoices.

6. SLO REP shall submit quarterly progress reports to the City.

Public Engagement
SLO REP’s Updated Challenge Grant Request was considered as part of the FY 2024- 2025 Supplemental Budget Review at the City Council’s regularly scheduled and noticed meeting. Council considered both public testimony and written correspondence submitted by SLO REP and its supporters detailing their current anticipated budget and necessary funding required to complete the new Downtown Theatre building.

The contractual arrangements specified in the draft Amendment No. 1 to Grant Agreement are considered a matter of routine City business in order to carry out City Council’s budget priorities; however, any member of the public may provide written comments or in-person testimony addressing this item.

CONCURRENCE
The City’s Public Works Department and Community Development Department have offered their concurrence with the recommended action.

ENVIRONMENTAL REVIEW
Entering into the subject Grant Agreement is not considered a project, in and of itself, under CEQA Guidelines Section 15378. However, the City completed environmental review as lead agency for both its Parking Structure and the Downtown Theatre and certified a Final Environmental Impact Report by Resolution No. 10923 (2018 Series).

FISCAL IMPACT
Budgeted: Yes Budget Year: 2024-25
Funding Identified: No

Item 5e
Fiscal Analysis:

Funding
Sources
Total Budget
Available
Current
Funding
Request
Remaining
Balance
Annual
Ongoing
Cost
General Fund $3,940,000 $2,760,000 $ $
State
Federal
Fees
Other:

Total $3,940,000 $2,760,000 N/A N/A
In Council Agenda Correspondence published contemporaneous with the June 4, 2024 City Council meeting, staff described that the requested $2,760,000 could be funded by designating a portion of the Infrastructure Investment Fund (IIF) that had been identified for the Prado Bridge (which is not expected to go to construction in the current fiscal year).

Further, “Staff would return to Council in September (upon completion of the unaudited year-end report) with an amended grant agreement. Staff would also recommend that the Council prioritize backfilling the funding for the Prado Bridge project using one-time funds available as a part of the Mid-year budget update in February 2025.” As described under a separate Council Agenda Report also on the October 1, 2024, agenda titled FY 2023-24 Year End Budget Report (Unaudited), the General Fund ended the year with sufficient fund balance available to contribute the full additional $2.76 million previously authorized by Council to the Infrastructure Investment Fund. Staff will include a recommendation with the FY 2024-25 Mid-Year Budget Report to make this contribution to the IIF, which will ensure that other projects funded out of the IIF will not be impacted.

ALTERNATIVES

1. Council may direct modifications to the draft Amendment No. 1 to Grant Agreement to incorporate different terms or requirements.

2. Council could direct staff to bring back an item for future budget hearings when action could be taken to identify other funding sources in support of the draft Amendment No. 1 to Grant Agreement. This alternative is not recommended as sufficient funding is available to allocate to the IIF as part of the FY 2024-25 Mid-Year Budget Report, as contemplated at the June 4, 2024, City Council meeting.

ATTACHMENTS
A - Draft Amendment No. 1 to Grant Agreement
B - Grant Agreement - April 21, 2022
C - Exclusive Negotiating Agreement – May 22, 2019
D - Amendment No. 1 to Exclusive Negotiating Agreement – May 22, 2024 E - SLO REP Challenge Grant Update – May 30, 2024
F - City Council Minutes - June 4, 2024

AMENDMENT NO. 1 TO GRANT AGREEMENT

SAN LUIS OBISPO

REPERTORY THEATRE
THIS AMENDMENT NO. 1 TO GRANT AGREEMENT is made and entered in the City of San Luis Obispo on _____________________________________, by and between the City of San Luis Obispo, a California Municipal Corporation and Charter City (“the City”) and San Luis Obispo Repertory Theatre, a California non-profit organization (“SLO REP”). The City and SLO REP are jointly referred to as the “Parties”.

WITNESSETH:

WHEREAS, on May 22, 2019, the City and SLO REP entered into an Exclusive Negotiating Agreement (“ENA”), and on May 22, 2024 entered into Amendment No. 1 to the Exclusive Negotiating Agreement, which together set forth the current parameters, conditions, milestones, and conditions precedent to entering into a long-term lease for SLO REP to use a portion of City property to construct and operate a new theatre building adjacent to the City’s Cultural Arts District Parking Structure, and
WHEREAS, on April 21, 2022, the City and SLO REP entered into a Grant Agreement that set forth certain parameters, conditions, milestones, and conditions precedent to the City providing one-time only grant funding to SLO REP to be paid in installments not-to-exceed the aggregate sum of $3,940,000 for reimbursement of direct construction costs incurred for the new theatre building, and
WHEREAS, on June 4, 2024, the City Council adopted Resolution No. 11501 (2024 Series) approving the Fiscal Year 2024-25 Budget and, upon consideration of public testimony and written correspondence submitted by SLO REP detailing their current anticipated budget and necessary funding required to complete the new theatre building, included an additional $2,760,000 million in grant funding to SLO REP towards the project, for a total in grant funding towards the project, by the City of San Luis Obispo, in the amount of $6,700,000.

NOW THEREFORE, in consideration of their mutual promises, obligations, and covenants hereinafter contained, the parties hereto agree as follows:

1. The Grant Agreement is hereby amended as follows:
i. The sum of grant funding shall be increased by the amount of $2,760,000.00 for a total of $6,700,000.00.
ii. The Exclusive Negotiating Agreement and Amendment No. 1 to the Exclusive Negotiating Agreement are hereby incorporated by reference, and attached hereto collectively as Exhibit A.

2. All other terms and conditions of the Grant Agreement shall remain in full force and effect.

IN WITNESS WHEREOF, the parties hereto have caused this instrument to be executed the day and year first written above.

CITY OF SAN LUIS OBISPO SLO REPERTORY THEATRE
_________________________________ ____________________________________ Erica A. Stewart, Mayor Kevin Harris, Managing Artistic Director ATTEST
_________________________________
Teresa Purrington, City Clerk

APPROVED AS TO FORM
_________________________________
J. Christine Dietrick, City Attorney

GRANT AGREEMENT

SAN LUIS OBISPO

REPERTORY THEATRE
This agreement dated ____________________________ is between SAN LUIS OBISPO REPERTORY THEATRE, a California non-profit corporation (“SLO REP”) and CITY OF SAN LUIS OBISPO, a California Municipal Corporation and Charter City (“CITY”) (the “Grant Agreement”) with reference to the following:

WHEREAS, SLO REP and CITY previously entered into an Exclusive Negotiating Agreement (the “ENA”) on May 22, 2019, that identified a mutual interest in the development of a new theatre site, to be leased by SLO REP, and a new City parking structure to be located on CITY property, together with obligations to be performed by both CITY and SLO REP and recitation of conditions precedent for purposes of SLO REP entering into a long-term lease with CITY for a portion of CITY’s property; and
WHEREAS, SLO REP issued a written Challenge Grant Request to the City Council dated January 25, 2022, that set forth a rationale and basis for SLO REP’s request of CITY to contribute to the construction of its new downtown theatre project (the “Downtown Theatre”), to be located at the corner of Palm Street and Nipomo Street, San Luis Obispo, and contiguous with CITY’s planned Cultural Arts District Parking Structure (“Parking Structure”); and WHEREAS, at its regularly scheduled meeting on February 15, 2022, the City Council appropriated $3.94 million, as requested by SLO REP, as part of its approval of the FY 2021-2022 Mid-Year Budget Review; and
WHEREAS, CITY’s financial support towards construction of the Downtown Theatre to be leased and used by SLO REP is intended to be a challenge grant that will serve to motivate and catalyze other funders and donors in furtherance of SLO REP’s overall capital campaign and fundraising goals for the construction of the Downtown Theatre site development; and WHEREAS, the new Downtown Theatre will ultimately be available to both residents of the City and visitors alike, thereby serving public purposes in furtherance of CITY’s goals for facilitating both arts and cultural amenities, as well as contributing to a thriving and prosperous downtown area through economic development activities, and
WHEREAS, SLO REP’s long-standing plans for construction of a new Downtown Theatre are consistent with CITY’s Downtown Concept Plan (2017) and its “Economic Recovery, Resiliency & Fiscal Sustainability” Major City Goal specified in the 2021-23 Financial Plan, and WHEREAS, CITY completed environmental review as lead agency for both the development of the Parking Structure and the Downtown Theatre and certified a Final Environmental Impact Report by Resolution No. 10923 (2018 Series).

NOW, THEREFORE, CITY and SLO REP for and in consideration of the mutual benefits, promises and agreements set forth herein, do agree as follows:

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1. Construction of the Downtown Theatre
On or before the date that is ten (10) years following the execution of this Grant Agreement, SLO REP shall complete construction of the Downtown Theatre. SLO REP’s failure to comply with this term may result in amendment, provided substantial progress or extenuating circumstances can be documented, or termination of this Agreement as provided herein.

2. Grant Amount and Allowed Expenses
City agrees to pay SLO REP a one-time only grant in installments as provided in Section 4, the aggregate sum of $3,940,000 (“Grant Funds”), to be used towards the construction of the Downtown Theatre, subject to the conditions set forth herein. The Grant Funds shall only be used for Eligible Costs directly related to construction of the Downtown Theatre as specified below.

CITY’s Grant Funds may only be used for direct construction costs defined as contractor expenses for labor, project management, material, equipment, utilities and other direct construction costs ("Eligible Costs"). Payments for “soft” costs are not Eligible Costs and shall not be paid from CITY Grant Funds. “Soft” costs are expense items that are not considered direct construction costs such as architectural and engineering expenses or project fees associated with the project. If there is a dispute about whether a project cost is an Eligible Cost, CITY shall have final determination of whether the cost is an Eligible Cost.

SLO REP acknowledges that construction of the Downtown Theater is subject to payment of prevailing wages on the entirety of the project due to the City’s contribution of funding to the project and that such obligation will be expressly conveyed by SLO REP to and will be binding on any covered contractor engaged to perform work on the Downtown Theatre project.

3. Conditions Precedent to Funding
SLO REP shall satisfy the following required conditions prior to any disbursement of Grant Funds by CITY. With respect to any requested reimbursement, SLO REP shall:
a. Maintain its 501(c)(3) non-profit status.
b. Shall secure all other grant funds, donations, pledges, or financing necessary to complete construction of the Downtown Theatre, inclusive of the amount of Grant Funds provided by the CITY pursuant to this Grant Agreement, and shall first utilize (or provide for first utilizing) all other grant funds, donations, or financing then available (collectively “Other Available Funding”) for the construction of the Downtown Theatre prior to any request for reimbursement from CITY. However, SLO REP’s initial reimbursement request for Grant Funds may be made prior to complete exhaustion of Other Available Funding, as necessary, to ensure continued availability of funding to complete construction of the Downtown Theatre in conformance with the construction schedule to be provided under Section 3(e) and the schedule of values to be provided under Section 3(f). However, in no instance shall reimbursement requests for CITY’s Grant Funds exceed the estimated value of completed improvements.

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c. Continue to adhere to all of the requirements of the ENA, attached hereto as Exhibit A and hereby incorporated by reference, until such time as a long-term lease is entered into with CITY, as contemplated by the ENA. Once the long-term lease is in place, SLO REP shall abide by all lease terms and conditions. d. Have secured all necessary project entitlements and building permit(s) for construction of the Downtown Theatre that may be applicable as further described in Paragraph 6, below.
e. Have submitted to the Public Works Director’s reasonable satisfaction a critical path construction schedule that includes all Downtown Theatre project-related tasks, and thereafter update this critical path construction schedule and furnish the same to the City on a quarterly basis (4 times a year) until construction is complete and a certificate of occupancy for the Downtown Theatre is furnished. f. Submit to the Public Works Director's reasonable satisfaction a “schedule of values” for items of work the general contractor will thereafter be completing. Identify in the schedule of values each of the items that are proposed to be funded, and when, by CITY Grant Funds.

4. Reimbursement Requests
Upon satisfaction of the conditions identified in Section 3, reimbursement paymentrequests for Eligible Costs identified in the construction schedule required pursuant to Section 3(e) shall be submitted to CITY’s Deputy City Manager. Reimbursement payment requests shall include supporting documentation including contractor invoices and the most current building inspection documentation available at that time, as well as a statement that the construction work progress has been accepted by SLO REP. Reimbursement payment requests may be submitted on a bi-monthly (twice per month) basis and will be reviewed and approved for reimbursement by the CITY in a timely manner, and CITY will make best efforts to process and pay reimbursement requests within fifteen (15) business days from the date of such payment request, provided that sufficient documentation supporting the reimbursement request is provided to CITY. Sufficiency of payment documentation shall be in the sole but reasonable discretion of the CITY and CITY reserves the right to request and receive additional reasonable documentation to support SLO REP’s reimbursement requests and as may be appropriate to aid in City’s determination of whether the requested reimbursement payment is for an Eligible Cost.

5. Construction at Other Sites
If SLO REP determines that construction of the Downtown Theatre at the specified site is impractical or inadvisable for any reason, then SLO REP may not use the Grant Funds for any other purpose without prior written approval of the City Council.

6. Permits
SLO REP shall apply for and obtain all necessary building and other related permits and project entitlements necessary to construct the Downtown Theatre in conformance with local, state, and federal laws. This Grant Agreement does not authorize the construction of the Downtown Theatre or otherwise alter or impact the exercise of the City’s independent regulatory and land use authority.

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7. Funding Source Recognition
SLO REP will ensure recognition of the role of CITY in providing funding through this Grant Agreement. CITY shall be identified as a funding source in all applicable publications, press releases, social media outreach and similar fundraising promotions.

8. Amendments
CITY and SLO REP may amend this Agreement at any time provided that such amendments make specific reference to this Grant Agreement, and are executed in writing, signed by a duly authorized representative of each organization, and approved by the City Council. Such amendments will not invalidate this Agreement, nor relieve or release either CITY or SLO REP from its obligations under this Grant Agreement, except as expressly provided in writing in any such duly executed amendments.

9. Quarterly Reports and Financial Assurance
The SLO REP shall provide quarterly reports on both Downtown Theatre construction project progress including the use of CITY Grant Funds. These reports shall be due at the end of the first month after the end of the calendar quarter (i.e. January, April, July, and September) and submitted to the Deputy City Manager. The quarterly reports should include percentage of construction completion, other available funding on hand or then receivable, and work anticipated to be completed in the following quarter. CITY reserves the right to request and receive copies of invoices, account statements, or audits of SLO REP’s financial records pertinent to the Downtown Theatre’s construction and in CITY’s sole discretion, to withhold reimbursement payments until satisfactory reports and supporting documentation are received.

10. Assignability
The SLO REP shall not assign or transfer any interest in this Grant Agreement without the prior written consent of the City Council.

11. Conflict of Interest
No member of the CITY’s governing body and no other public official of such locality, who exercises any functions or responsibilities in connection with the planning or carrying out of the Downtown Theatre project, will have any personal financial interest, direct or indirect, in this Grant Agreement; and the SLO REP will take appropriate steps to assure compliance.

SLO REP agrees to abide by the provisions of 24 CFR 84.42 and 570.611, which require in part, that SLO REP to maintain a written code or standards of conduct that will govern the performance of its officers, employees or agents engaged in the award and administration of contracts supported by Federal funds.

12. Severability
If any provision of this Grant Agreement is held invalid, the remainder of the Grant Agreement will not be affected thereby and all other parts of this Grant Agreement will nevertheless remain in full force and effect.

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13. Entire Agreement
This Agreement constitutes the entire agreement between CITY and SLO REP for the use of funds received under this Grant Agreement and shall supersede all prior communications and proposals, whether electronic, oral, or written between CITY and SLO REP with respect to this Grant Agreement.

14.No Agency or Employment
The SLO REP is solely responsible for all activities supported by this Grant Agreement.

Nothing in this Grant Agreement creates a partnership, agency, joint venture, employment, or any other type of relationship between SLO REP and CITY. SLO REP shall not represent itself as an agent of CITY for any purpose, and has no authority to bind CITY in any manner whatsoever. SLO REP and all of its agents, representatives, or participants in any manner in the performance of its obligations and duties hereunder, shall be employees, independent contractors, or volunteers solely of SLO REP. They shall not for any purpose be considered employees or agents of CITY.

15.Indemnification
The SLO REP agrees, to the fullest extent permitted by law, to defend, indemnify, and hold harmless CITY its officers, directors, affiliates, employees, and agents (“City Indemnitees”), from and against any and all claims, liabilities, losses and expenses (including reasonable attorney’s fees) directly, indirectly, wholly or partially arising from or in connection with any act or omission of SLO REP, its employees or agents, in applying for, accepting, or use of the Grant Funds, or in carrying out the Downtown Theatre project as set forth. In the event the City Indemnitees are made a party to any action, lawsuit, or other adversarial proceeding arising from SLO REP’s performance under this Grant Agreement, SLO REP shall provide a defense to the City Indemnitees or at the City’s option, reimburse the City Indemnitees their costs of defense, including reasonable legal fees, incurred in defense of such claims.

16.Termination
The City Manager may, within his or her reasonable discretion, initiate termination of this Grant Agreement in the event of any material breach of the terms of this Grant Agreement by SLO REP. Material breach includes breach of Sections 1-7, 9 and 15 of this Grant Agreement, but does not include minor delays in reporting or other delays in obligations set forth herein caused through no fault of SLO REP as well as administrative or clerical errors made in good faith. Upon the City Manager’s written notice of breach, SLO REP shall have forty-five (45) calendar days to cure any such breach (the “Notice of Breach”). Should SLO REP fail to cure, or provide documentation of substantial progress towards curing such breach within forty-five (45) calendar days of the date of the Notice of Breach, the City Manager shall provide written notice of termination of this Grant Agreement (the “Notice of Termination”). Said termination shall be effective thirty (30) calendar days after the City Manager mails the Notice of Termination to SLO REP. Any remaining Grant Funds in excess of then unpaid Eligible Costs, as defined in Section 2, actually incurred as of the date of notice of termination shall revert to CITY upon the effective date of termination.

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17.Notices
For purposes of notice under this agreement, all notices shall be considered effective upon being sent by certified mail to the following addresses:

CITY:

City of San Luis Obispo
990 Palm Street
San Luis Obispo, CA 93401
Attn: City Manager
SLO REP:

San Luis Obispo Repertory Theatre
888 Morro Street
San Luis Obispo, CA 93401
Attn: Managing Artistic Director

CITY OF SAN LUIS OBISPO, A MUNICIPAL CORPORATION
By:

Derek Johnson, City Manager

SAN LUIS OBISPO REPERTORY THEATRE, A CALIFORNIA NON-PROFIT

CORPORATION
By: ___________ Kevin Harris, Managing Artistic Director APPROVED AS TO FORM:

By:

J. Christine Dietrick, City Attorney
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EXCLUSIVE NEGOTIATING AGREEMENT
This Exclusive Negotiating Agreement (“Agreement”) is entered into this ___day of ______, 2019 (the “Effective Date”), by and between the City of San Luis Obispo, a California charter municipal corporation ("the City'') and San Luis Obispo Repertory Theatre, a California non-profit corporation (“SLO REP”). The City and SLO REP are jointly referred to as the “parties”.

RECITALS
WHEREAS, the City is the legal owner of the property located at 888 Morro Street in San Luis Obispo, California (the “Property”); and
WHEREAS, the City identified a portion of the Property as the site of a proposed public parking structure (“Palm Nipomo Parking Structure”) and anticipates that an estimated 18,000 square foot portion of the Property will not be needed for the Palm Nipomo Parking Structure (“Remainder Property”); and WHEREAS, SLO REP desires to construct a not-for-profit live performance theatre facility and related onsite and off-site (if any) improvements (“Theatre”) on the Remainder Property; and WHEREAS, the parties recognize that the exact location, size and availability of the Remainder Property for the Theatre cannot be determined at this time, and understand that the Remainder Property has development restrictions including maintenance of trees, street setbacks and provision of pedestrian connections/plazas from the Palm Nipomo Parking Structure to Monterey Street that affect the net buildable land; and
WHEREAS, the City wishes to support community-based performing arts groups by encouraging development of a live performance theatre facility in the downtown; and WHEREAS, the City and SLO REP recognize that identifying a location for the Theatre, as well as some of the terms of a future lease, may help SLO REP’s capital fundraising efforts; and WHEREAS, construction of the Palm Nipomo Parking Structure and the Theatre and related rezoning and general plan amendments will require environmental review, and SLO REP must provide certain information about the Theatre before City can conduct the environmental review; and WHEREAS, the City’s Financial Management Manual allows exclusive negotiations for long term lease of City property when the there is a clear link between the proposal and accomplishment of significant City goals, plans or policies; and
WHEREAS, the City considers the development of a not-for-profit live performance theatre on the Remainder Property to be in the public interest and in accordance with the City's goals and the existing and proposed Downtown Concept Plan.

NOW, THEREFORE, in consideration of the mutual covenants, conditions, promises and agreements herein set forth, the parties agree as follows:

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AGREEMENT

1. RECITALS. The above Recitals are true.

2. TERM. This Agreement shall commence upon the Effective Date and shall continue in effect for a period of five (5) years (the “Term”), unless sooner terminated as provided herein. The Parties may extend the Term of this Agreement in writing upon mutual consent.

3. PURPOSE. The purpose of this Agreement is to enable the City to proceed with the Palm Nipomo Parking Structure, and to allow SLO REP to explore the feasibility of SLO REP financing, designing, constructing and operating the Theatre, at its sole cost and expense, on the Remainder Property.

4. CITY’S OBLIGATIONS. The City shall, during the Term of this Agreement:
a. Exclusivity. Negotiate exclusively with SLO REP as the future tenant of the Remainder Property.
b. Initiate Rezoning, General Plan amendments, and Lot Line Adjustment.

Upon City Council authorization, initiate all rezoning, General Plan amendments, and a lot line adjustment necessary to allow the construction of the Palm Nipomo Parking Structure on a portion of the Property and the Theatre on the Remainder Property. The intent of this Agreement is for the Remainder Property to be created as a “finished lot,” although the City legally cannot, and therefore does not, contractually agree as to how it will exercise its legislative authority to rezone or amend the General Plan and its land use authority to complete a lot line adjustment. c. Environmental Review. The City has completed environmental review of the Palm Nipomo Parking Structure and the Theatre and has certified a Final Environmental Impact Report (“FEIR”) by Resolution No. 10923 (2018 Series). If SLO REP makes any changes to the Theatre design or if any of the conditions set forth in CEQA Guidelines § 15162 are triggered, then SLO REP may negotiate the portion of costs it will bear in the event substantial new environmental issues are discovered during construction, or if any project-specific environmental review related to the Theatre is deemed necessary.

5. SLO REP’s OBLIGATIONS. SLO REP shall, during the term of this Agreement:
a. Non-Profit Status. Be a California non-profit corporation in good standing and be exempt from state and federal income taxes under section 501 (c) (3) of the Internal Revenue Code.
b. Proof of Financial Ability. Provide to City’s reasonable satisfaction that it has the financial ability to design, construct and operate the Theatre on the Remainder Property. At a minimum SLO REP shall:

Fundraising Plan. Provide the City with a fundraising plan by December 31, 2019 that is acceptable to, and approved by, the City Manager, whose approval shall not be unreasonably withheld, delayed or conditioned. The fundraising plan shall include a timeline with milestones that shall be met no later than 1 year from the estimated completion of the Palm Nipomo Parking Structure. These DocuSign Envelope ID: 0D5F9552-0A12-4481-A99B-695D14987222

milestones shall include, at a minimum, prior to commencement of lease negotiations, but no later than one (1) year after City’s award and execution of a contract to construct the Palm Nipomo parking Structure, that SLO REP shall demonstrate, to the City Finance Director’s reasonable satisfaction, that SLO REP has available at least 50% of all the funds necessary to design and construct the Theatre.
i. Preliminary Cost Estimates. Provide the City with preliminary costs estimates by December 31, 2020 to design, construct and operate the Theatre for at least the first two (2) years after completion of construction. Update those estimates as design progresses, but at least every 6 months. SLO REP will include the payment of prevailing wages in its estimates.
ii. Annual Financials. Annually, on or before December 31st of each year, provide the City with a current financial statement, copy of most recent filed state and federal tax returns, and copies of current bank statements, to demonstrate fundraising results for the Theatre.
iii. Formal Development Application. Finalize and submit a formal development application for the Theatre to the City.
iv. Compensation for City Review Costs. Discuss and finalize how City processing and review costs will be funded.
c. Environmental Review Information. Provide the City promptly with all information necessary to conduct any subsequent environmental review of the Theatre that may be necessary. This information includes, but is not limited to, square footage of structure; square footage of various uses such as office, storage, classroom, and theatre; number of seats; maximum number of performances per week, and any other information deemed necessary by City.

6. TERMINATION. Either party may terminate this Agreement without liability to the other party at any time by written notice to the other. This Agreement shall automatically terminate in the event SLO REP fails to secure building permits for the Theatre one year after the completion of the Palm Nipomo parking structure.

7. CONDITIONS PRECEDENT TO LEASE NEGOTIATION AND EXECUTION. All of the following conditions must be met as conditions precedent prior to lease execution for the Remainder Property:
a. Lease negotiation:
i. Rezoning and Lot Line Adjustment. City has rezoned and/or amended the City’s general plan and has perfected a lot line adjustment that will create the Remainder Property as a “finished lot” allowing for construction and its use as the Theatre.
ii. Obligations Met. Both City and SLO REP have met all of their respective obligations under the Agreement.

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b. Availability of Funds for Design, Construction, and Operation of the Theatre Prior to execution of the lease, SLO REP demonstrates to the City Manager’s reasonable satisfaction that SLO REP has met all applicable fundraising milestones in the fundraising plan approved by the City Manager.
c. Non-Profit Status. SLO REP has maintained its non-profit and tax-exempt status under applicable state and federal law.
d. Design and Construction Schedule. Prior to lease execution, provide to the City’s Community Development Director’s reasonable satisfaction, a design and construction schedule, demonstrating, at a minimum, the Theatre will be constructed and completed within 3 years of the completion of the Palm Nipomo Parking Structure. e. Design Coordination. Coordinate design of the Theatre with the City to ensure it is compatible with the Palm Nipomo Parking Structure.

8. GENERAL LEASE TERMS. If the parties enter into the exclusive negotiations, the parties desire that the lease include the following general provisions; provided, the actual language of each provision is subject to further negotiation, and most material terms and provisions of the lease have not yet been discussed. The City shall not lease the land for minimal rent unless the lease is completely acceptable to the City and approved by the City Attorney. Nothing in this paragraph shall be interpreted as an agreement or offer to lease upon the terms, provisions or language set forth below.
a. SLO REP shall commence construction of the Theatre no later than one (1) year after the completion of the Palm Nipomo Parking Structure and shall complete construction of the Theatre within three (3) years after that. SLO REP shall not commence construction of the Theatre unless SLO REP demonstrates, to the City’s Finance Manager’s reasonable satisfaction prior to expiration of the year within which SLO REP is to commence construction, that SLO REP has all of the funds necessary to design and construct, as well as operate for at least one (1) years after completion of construction, the Theatre, plus a 15% contingency, available in cash or approved financing (the “Required Funds”).

If SLO REP does not timely demonstrate that SLO REP has the Required Funds, or if SLO REP fails to timely begin or timely complete construction, SLO REP shall be in substantial default, and the lease shall automatically terminate unless City agrees otherwise in writing. The Theatre shall be deemed complete only upon issuance of a Certificate of Occupancy.
b. Minimum 40-year term with the right of first refusal for additional lease years provided that Theatre is in good standing at the time of the renewal window, which shall open after 35 years and conclude after 37 years unless the window is extended. c. Rent of $1.00 per year provided SLO REP:
i. Is a California non-profit corporation in good standing; and ii. Is a federal and state income tax exempt 501 (c)(3) entity; and uses the Remainder Property solely as a live performance theatre and related City approved community uses.

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iii. SLO REP’s failure to maintain its non-profit corporate status in good standing or its tax-exempt status under applicable state and federal law or to use the Remainder Property for any purpose other than as a live performance theatre and related City approved community uses during the term or any extended term of the lease, shall be a material breach of the lease. In the event any such breach occurs, City may, at its option, either terminate the lease or raise the rent to fair market rates for neighboring commercial uses.
d. SLO REP shall design, construct, operate and maintain the Theatre and all street frontage and landscaping, utility extensions and connections, and other improvements, based on agreed upon and approved plans and specifications, at its sole cost and expense without any assistance from the City.
e. SLO REP shall be responsible for meeting or mitigating all conditions, impacts, mitigations and requirements identified in the environmental review and entitlement processes for issues associated with the SLO REP’s operation of a theatre on the Property, at SLO REP’s sole cost and expense.
f. The design of the Theatre must be compatible with the design of the Palm Nipomo Parking Structure, including the parking structure’s entrance and exiting needs, as determined by the sole discretion of the Public Works Director. g. SLO REP shall take all reasonable efforts to preserve, protect, and maintain the large oak tree on 614 Monterey, along with the tree on the corner of Monterey and Nipomo. h. If the SLO REP is not in material compliance with the Lease or ceases to be financially solvent and to maintain the Property in a commercially reasonable manner, the lease shall contain provisions for the City to declare a default of the Lease, for SLO REP to effect a reasonable cure of the default(s), and for the City to terminate the Lease if the default(s) are not cured pursuant to the terms and conditions of the Lease, and for the Remainder Property to revert to the City.
i. Prevailing wages shall be paid by SLO REP for construction of the Theatre and related improvements, mitigations etc.
j. SLO REP shall pay all applicable parking in lieu fees for a Community Partner, as determined by the sole discretion of the City’s Public Works Director. k. Payment of possessory interest and other taxes by SLO REP. l. Other long-term landlord protection ground lease provisions, such as City standard insurance requirements, indemnity provisions, attorneys’ fees, prohibitions against nuisance, waste, requiring maintenance at SLO REP expense, etc. m. If the City Council does not move ahead with the construction of the Palm/Nipomo structure, a new agreement will need to be negotiated between the parties for a mutually acceptable alternate site or an alternate set of requirements for a portion of the Property. n. The City will not subordinate its interest in the Remainder Property to any financing.

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10. AMENDMENT. This Agreement may be extended or modified with the mutual consent of the parties. Any such extension, amendment, modification or variation from the terms of this Agreement shall be in writing and shall be effective only upon approval by the City Council.

11. COMPLETE AGREEMENT. This written Agreement, including all writings specifically incorporated herein by reference, shall constitute the complete agreement between the parties.

No oral agreement, understanding or representation not reduced to writing and specifically incorporated herein shall be of any force or effect, nor shall any such oral agreement, understanding or representation be binding upon the parties.

12. NOTICE. All notices to the parties shall be in writing and shall be sent by United States mail, postage prepaid by registered or certified mail addressed as follows:

City: Derek Johnson
City Manager
990 Palm Street
San Luis Obispo, CA 93401
SLO REP: Kevin Harris
Managing Artistic Director
888 Morro Street
San Luis Obispo, CA 93401

13. AUTHORITY TO EXECUTE AGREEMENT. Both City and SLO REP warrant and represent that each individual executing the Agreement on behalf of each party is a person duly authorized and empowered to execute agreements for such party.

IN WITNESS WHEREOF, the parties execute this Agreement on the day and year first above written.

ATTEST CITY OF SAN LUIS OBISPO
Teresa Purrington
City Clerk
Date Heidi Harmon
Mayor
Date
APPROVED AS TO FORM: SLO REPERTORY THEATRE
J. Christine Dietrick
City Attorney
Date Kevin Harris
Managing Artistic Director
Date
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Council Minutes
City Hall, 990 Palm Street, San Luis Obispo
Tuesday, December 4, 2018
Regular Meeting of the City Council

CALL TO ORDER
A Regular Meeting of the San Luis Obispo City Council was called to order on Tuesday, December 4, 2018 at 6: 00 p.m. in the Council Hearing Room, located at 990 Palm Street, San Luis Obispo, California, by Mayor Harmon.

ROLL CALL
Council Members

Present: Council Members Carlyn Christianson Aaron Gomez, Erica A Stewart, Vice Mayor Andy Pease, and Mayor Heidi Harmon.

Council Members

Absent: None
City Staff

Present: Derek Johnson, City Manager; Christine Dietrick, City Attorney; and Teresa Purrington, City Clerk; were present at Roll Call. Other staff members presented reports or responded to questions as indicated in the minutes.

PLEDGE OF ALLEGIANCE
Vice Chair Pease led the Pledge of Allegiance.

APPOINTMENTS

1. APPOINTMENTS TO THE ZONE 9 ADVISORY COMMITTEE
City Clerk Purrington presented the contents of the report.

Public Comments:

None
End of Public Comments ---
ACTION: MOTION BY VICE CHAIR PEASE, SECOND BY COUNCIL MEMBER CHRISTIANSON, CARRIED 5- 0 to:

San Luis Obispo Page I
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San Luis Obispo City Council Minutes of December 4, 20] 8 Page 2 Make appointments to the Zone 9 Advisory Committee, effective December 31, 2018, and recommend the County Board of Supervisors confirm, as follows:

1. Appoint Christine Mulholland to serve as public member to represent the City of San Luis Obispo on the Zone 9 Advisory Committee for a term to expire on December 31, 2022; and

2. Appoint Dave Romero to serve as the alternate member to represent the City of San Luis Obispo on the Zone 9 Advisory Committee for a term to expire on December 31, 2022; and

3. Appoint Matt Horn, City Engineer, to serve as the staff representative on the Zone 9 Advisory Committee; and

4. Appoint Brian Nelson, Supervising Civil Engineer, to serve as the alternate staff representative on the Zone 9 Advisory Committee for a term to expire on December 31, 2022.

2. APPOINTMENTS TO THE CITIZENS' REVENUE ENHANCEMENT OVERSIGHT COMMISSION, JACK HOUSE COMMITTEE, AND MASS_ TRANSPORTATION

COMMITTEE
City Clerk Purrington presented the contents of the report.

Public Comments:

Tom Tyran Kincaid
End ofPublic Comments ---
ACTION: MOTION BY COUNCIL MEMBER CHRISTIANSON, SECOND BY COUNCIL MEMBER GOMEZ, CARRIED 5- 0 to:

1. Confirm the appointment of Winston Newland to the Citizens' Revenue Enhancement Oversight Commission, to complete an unexpired term through June 30, 2019.

2. Confirm the appointment of Julie Moore, as the representative of the San Luis Obispo County History Center, to the Jack House Committee effective December 4, 2018; and

3. Confirm the appointment of Ryan Hund, as the ASI student representative, to the Mass Transportation Committee, to complete an unexpired term through March 31, 2019.

INTRODUCTION

3. INTRODUCTION OF ERIC HAGEN CHIEF BUILDING OFFICIAL
Community Development Director Michael Codron introduced Eric Hagen as the new Chief Building Official.

PRESENTATIONS

4. PROCLAMATION - RECOGNITION OF SERVICE - CARRIE MATTINGLY City Manager Derek Johnson presented a proclamation to retiring Utilities Director Carrie Mattingly, in recognition of her service.

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San Luis Obispo City Council Minutes of December 4- 2018 Pabe 3

PUBLIC COMMENT ON ITEMS NOT ON THE AGENDA
None
End of Public Comment ---

CONSENT AGENDA
ACTION: MOTION BY COUNCIL MEMBER CHRISTIANSON, SECOND BY VICE CHAIR PEASE, CARRIED 5- 0 to approve Consent Calendar Items 5 thru 12.

Public Comment
Lea Brooks — 8
Myron Amerine — 8
Kevin Harris — 10
Myron Amerine — 12
End ofPublic Comment ---

5. WAIVE READING IN FULL OF ALL RESOLUTIONS AND ORDINANCES CARRIED 5- 0, to waive reading of all resolutions and ordinances as appropriate.

6. SCHEDULE OF CITY COUNCIL MEETINGS FOR 2019
CARRIED 5- 0, to adopt the proposed 2019 regular City Council meeting schedule with meetings normally held the first and third Tuesday of every month, with the following exceptions:

1. Reschedule the Regular City Council meeting of January 1 to January 8, 2019, and

2. Cancel the Regular City Council meetings ofAugust 6 and December 17, 2019.

7. APPROVAL OF THE FINAL MAP FOR TRACT 3089 PHASE 1, AVILA RANCH, 175 VENTURE DRIVE (SBDV2042- 2015)
CARRIED 5- 0, to adopt a Resolution entitled, " A Resolution of the City Council of the City of San Luis Obispo, California, approving the final map for Tract 3089 Phase 1 Avila Ranch ( 175 Venture Drive, SBDV-2042-2015)," and authorizing the Mayor to execute the easements, agreements, and associated fee offers, including the recommended changes in the staffagenda correspondence.

8. PLANS AND SPECIFICATIONS FOR BUCHON TRAFFIC CALMING
CARRIED 5- 0, to

1. Approve Plans and Specifications for Buchon Traffic Calming Measures; and

2. Authorize staff to advertise for bids and the City Manager to award the contract if the lowest responsible bid is within the Engineer' s Estimate of $160,000; and

3. Authorize the use and transfer of $ 142,000 from the City' s Neighborhood Traffic Calming budget and $ 18, 000 from the City' s Traffic Safety & Operations Budget to the project account.

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San Luis Obispo City Council Minutes ofDeceniber 4. 2018 Page 4

9. ADJUSTMENTS TO SUPPLEMENTAL SALARY SCHEDULE AND POLICY AS A

RESULT OF MINIMUM WAGE INCREASES
CARRIED 5- 0, to

1. Adopt a Resolution entitled, " A Resolution of the City Council of the City of San Luis Obispo, California, establishing and adopting a supplemental employee salary schedule and superseding previous resolutions in conflict," as necessary to comply with California Fair Wage Act of 2016 requiring a minimum wage of $ 12. 00 per hour effective January 1, 2019; and

2. Adopt the revised Supplemental Employee Policy.

10. SAN LUIS OBISPO REPERTORY THEATRE EXCLUSIVE NEGOTIATING

AGREEMENT
CARRIED 5- 0, to
Authorize the Mayor to sign an Exclusive Negotiating Agreement with the San Luis Obispo Repertory Theatre, SLO REP, for long-term use of a portion of the Palm/ Nipomo Parking Structure site to construct and operate a new theatre, based on parameters previously set forth by the City Council.

11. REPEALING AND REPLACING RESOLUTION NO. 10894 TO REFLECT

UPDATED ZONING REGULATION SECTION FOR PROPERTY MAINTENANCE

STANDARDS
CARRIED 5- 0, to Adopt a Resolution entitled, " A Resolution of the City Council of the City of San Luis Obispo, California, repealing and replacing Resolution No. 10894 ( 2018) to reflect updated zoning regulation sections."

12. ACQUISITION OF EASEMENTS FOR THE RAMONA DRIVE TO FOOTHILL BOULEVARD CLASS 1 PATH
CARRIED 5- 0, to Authorize the Mayor to execute easement and deed agreements in a total amount not to exceed $ 423, 700 including title and escrow charges in a form subject to the approval of the City Attorney.

PUBLIC HEARING ITEMS AND BUSINESS ITEMS

13. WATER RESOURCE RECOVERY FACILITY PROJECT - AUTHORIZATION TO BID
Utilities Director Carrie Mattingly and Deputy Director Dave Hix provided an in-depth staff report and responded to Council questions.

Public Comments:

Autumn Brown
Rosemary Wrenn
Scott Zimmerman
Daniel Mora
Richard Van Humbeck
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San Luis Obispo City Council_ Minutes of December 4, 2018 Pie 5, Jesse Brooks
Quinn Brady
Tony Skinner
Sean Perry
Dave Baldwin
David Gilliland
Nick Andre
End of Public Comment ---
ACTION: MOTION BY MAYOR HARMON SECOND BY COUNCIL MEMBER CHRISTIANSON, CARRIED 5- 0 to:

1. Approve plans and specifications for the Water Resource Recovery Facility ( WRRF) Project, Specification No. 91620; and

2. Authorize staff to advertise for construction bids pending City Engineer' s approval of the bid set; and

3. Authorize the City Manager to award the contract if the lowest responsible bid is within the project construction budget of $111, 600,000; and

4. Approve amended WRRF Project -specific Construction Contract Change Order policy and authorize the Utilities Director to be responsible for construction contract change orders ( CCOs) for the WRRF Project in any amount with the limitation that the sum total of all CCOs not exceed the contingency budget amount of $13, 390,000; and

5. Incorporate the Community Workforce Agreement into WRRF Project Spec. No 91620 as approved by signatory Craft Councils and Unions affiliates and the Tri -Counties Building and Construction Trades Council, AFL- CIO as included in the Council agenda packetfor the November 13, 2018 Meeting.

STUDY SESSION ITEMS

14. BOB JONES TRAIL ( CALLE JOAQUIN TO OCEANAIRE) PREI+ERREI)

ALTERNATIVE SELECTION
Public Works Director Daryl Grigsby, Transportation Manager Jake Hudson and Active Transportation Manager Adam Fukushima provided an in-depth staff report and responded to Council questions.

Public Comments:

Myron Amerine
Lea Brooks
Ken Kienow
End of Public Comment ---
ACTION: By consensus, Council directed staff to evaluate other route alternatives which are not consistent with the Bicycle Transportation Plan as part of the planning of the forthcoming Active Transportation Plan.

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San Luis Obis o City Council Minutes of December 4 2018 Parc 6 RECESS
Council recessed at 8: 35 p.m. and reconvened at 8: 50 p.m., with all Council Members present.

PUBLIC HEARING ITEMS AND BUSINESS ITEMS

15. 2019- 21 FINANCIAL PLAN PROCESS: ECONOMIC OUTLOOK BUDGET

POLICIES AND CAPITAL IMPROVEMENT PLAN REVIEW
Finance Director Brigitte Elke and Budget Manager Alex Ferreira provided an in-depth staff report and responded to Council questions.

Public Comments:

None
End of Public Comment ---
ACTION: By consensus, the Council reviewed and approved the 2019- 21 Financial Plan Goal Setting Process.

COUNCIL COMMUNICATIONS AND LIAISON REPORTS
Vice Mayor Pease invited the public to the Police Department Community Meeting and Station tour on Thursday, December 6, 2018 and also indicated that the City Council would be participating in the annual holiday parade on Friday, December 7, 2018.

ADJOURNMENT
The meeting was adjourned at 10: 02 p.m. The next Rescheduled Regular City Council Meeting is scheduled for Tuesday, January 8, 2019 at 6: 00 p.m., in the Council Chamber, 990 Palm Street, San Luis Obispo, California.
l
Teresa Purrington
City Clerk
APPROVED BY COUNCIL: 01/ 08/ 2019
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AMENDMENT NO. 1 TO EXCLUSIVE NEGOTIATING AGREEMENT
THIS AMENDMENT NO. 1 TO EXCLUSIVE NEGOTIATING AGREEMENT is made and entered in the City of San Luis Obispo on _______________________________________, by and between the City of San Luis Obispo, a charter municipal corporation (“the City”) and San Luis Obispo Repertory Theatre, a California non-profit organization (“SLO REP”). The City and SLO REP are jointly referred to as the “Parties”.

WITNESSETH:

WHEREAS, on May 22, 2019, the City and SLO REP entered into an Exclusive Negotiating Agreement (“ENA”) that set forth certain parameters, conditions, milestones, and conditions precedent to entering into a long-term lease for SLO REP to use of a portion of City property to construct and operate a new theatre building adjacent to the City’s Cultural Arts District Parking Structure, and WHEREAS, the ENA has a five-year term that may be extended by mutual agreement of the Parties and both the City and SLO REP have a desire to continue working together towards the construction and long-term operation of a new theatre building; and
WHEREAS, both the City and SLO REP have completed and will continue to maintain their respective obligations specified in the ENA, as well as satisfy the necessary conditions precedent to lease negotiations and execution (paragraphs 5, 6, and 8), and the Parties are presently working together to move towards the preparation of a mutually agreeable lease agreement.

NOW THEREFORE, in consideration of their mutual promises, obligations, and covenants hereinafter contained, the parties hereto agree as follows:

1. The Exclusive Negotiating Agreement is hereby amended as follows:
i. The term shall be extended for a period of six (6) months from the date of this Amendment No. 1, provided that SLO REP shall disclose to City other sites or options, if any, that it may be considering for the theatre. The ENA may be extended for an additional six (6) month period thereafter with approval by the City Manager. The additional six (6) month extension may only be considered upon SLO REP delivering a written notice of intent to proceed with final lease negotiations with the City.

DocuSign Envelope ID: 30F8ABF1-2039-4524-B672-CFEA30A9FDE3 5/22/2024 | 12:09 PM PDT

ii. Paragraph 8a., General Lease Terms, shall be amended as follows: “SLO REP shall commence construction of the Theatre no later than one (1) year after the completion of the Palm Nipomo Cultural Arts District Parking Structure and shall complete construction of the Theatre within three (3) years after that.

SLO REP shall not commence construction of the Theatre unless SLO REP demonstrates, to the City’s Finance Manager Director’sreasonable satisfaction prior to expiration of the year within which SLO REP is to commencement of construction, that SLO REP has all of the funds necessary to design and construct, as well as operate for at least one (1) years after completion of construction, the Theatre, plus a 15% construction contingency, available in cash or approved financing (the “Required Funds”), and SLO REP shall also submit to the City Manager (or their delegate) a written document that demonstrates an operating reserve of 20% for the first year of operating the new theatre and three year operating plan including the establishment of a fund for building and facilities maintenance and repair.”
iii. Paragraph 8b., General Lease Terms, shall be replaced as follows: “A lease term not-to-exceed ninety-nine (99) years.”

2. All other terms and conditions of the Exclusive Negotiating Agreement remain in full force and effect.

IN WITNESS WHEREOF, the parties hereto have caused this instrument to be executed the day and year first written above.

CITY OF SAN LUIS OBISPO SLO REPERTORY THEATRE
_________________________________ ________________________________ Erica A. Stewart, Mayor Kevin Harris, Managing Artistic Director ATTEST
_________________________________
Teresa Purrington, City Clerk

APPROVED AS TO FORM
_________________________________
J. Christine Dietrick, City Attorney
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SAN LUIS OBISPO REPERTORY THEATRE CHALLENGE GRANT REQUEST

APPENDIX A: SLO REP ECONOMIC IMPACT REPORT

DOWNTOWN CORE ACTIVATION
SLO REP’s audience drawing power is often underestimated, its full impact often lost amid the fanfare accorded other performing arts events. Other arts organizations have several big events during the year that, rightfully so, command attention in the local media. SLO REP, on the other hand, provides a steady, yearround calendar of programming. We are like the great TV show that people tune into weekly, in relatively large numbers, versus the summer blockbuster that people rush to see before it’s gone.

For perspective:

In SLO REP’s current 100-seat venue, nearly 20,000 patrons buy tickets to attend SLO REP’s annual 200 performances. These totals are greater than the total audiences for San Luis Obispo Symphony, Opera SLO, Festival Mozaic, and the Civic Ballet combined.

The most popular national touring shows at the PAC rarely sell out two performances, totaling a maximum of 2,572 patrons. SLO REP’s annual gala and season musical productions regularly bring in 3,000 patrons over the course of the run.

In the new venue, SLO REP plans to produce 324 performances each season, Wednesday- Sunday, on 176 days of the year. These performance and audience projections do not include foot traffic from our year-round Academy of Creative Theatre education program or special, non-season events throughout the year.

AN EFFICIENT CATALYST
By bringing hundreds of patrons downtown on nearly half the days of the year, SLO REP provides an efficient and significant catalyst activating the downtown core. SLO REP will prove to be a bright shining beacon, attracting new visitors and residents alike to San Luis Obispo who want to experience distinctivelive performances available nowhere else in the frequency and quality than can be seen on SLO REP’s new stage.

ECONOMIC IMPACT
In projecting SLO REP’s economic impact, we drew
from the most recent research on San Luis Obispo
County arts patrons’ spending conducted by
Americans for the Arts (January, 2024).

In our planned new venue, SLO REP will produce
324 individual performances during our first full
season (FY 29), potentially bringing 53,600 patrons
to the downtown core in our 210-seat mainstage
theatre, and our 100-seat black box theatre.

In addition to our 324 regular performances, SLO REP is planning 24 "Cabaret" performances throughout the year to activate the downtown core during late-night hours.

APPENDIX A: SLO REP ECONOMIC IMPACT REPORT

EMPLOYMENT
Based on our current calendars, SLO REP projects the following payroll breakdowns for our yearround Exempt and Non-Exempt employees in FY 29:

F/ T
Exempt)
Total
Employee Position FTE
P/ T (NonExempt) P/ Y ( NonExempt) Total Emp.

Payroll
20 hrs/ wk < 20 hrs/ wk
Artistic Director 95,000 1
Managing Director $ 70,000 1
Development Director $ 70,000 1
Development Assistant $ 25,000 0.5
Marketing Director $ 60,000 1
Education Director $ 60,000 1
Education Assistant/ Outreach $ 25,000 0.5
Production Manager $ 60,000 1
Technical Director $ 60,000 1
Assistant Technical Director $ 12,500 0.25
Volunteer Director/ House Mgr $ 27,500 0.75
Box Office Manager $ 20,000 0.5
Facilities Director $ 12,500 0.25
Costume Shop Coordinator $ 7,500 0.25
Assistant House Manager 1 $ 5,500 0.25
Assistant House Manager 2 $ 5,500 0.25
Assistant House Manager 3 $ 5,500 0.25
Assistant House Manager 4 $ 5,500 0.25
Box Office Staff 1 $ 4,000 0.25
Box Office Staff 2 $ 4,000 0.25
Scene Shop Crew 1 $ 10,000 0.25
Scene Shop Crew 2 $ 10,000 0.25
TOTALS $ 475,000 $ 97,500 $ 82,500 12 $ 655,000

APPENDIX A: SLO REP ECONOMIC IMPACT REPORT
Based on our current calendars, SLO REP projects the following payroll breakdowns for our show- specific artist contracts in FY 29:

Artist Position Average # of
Contracts
Total Total FTE
Contract
Total
Each
Season
Payroll Hours
Director ( Mainstage) $ 3,500 8 $ 28,000 1,200 0.58
Director (Black Box) $ 2,750 5 $ 13,750 750 0.36
Director ( ACT Show) $ 2,800 2 $ 5,600 400 0.19
Director (Staged Reading) $ 300 5 $ 1,500 175 0.08
Actor ( Mainstage) $ 2,500 50 $ 125,000 11,250 5.41
Actor (Black Box) $ 2,000 30 $ 60,000 6750 3.25
Musical Director $ 2,500 8 $ 20,000 400 0.19
Choreographer ( Mainstage) $ 2,500 4 $ 10,000 200 0.10
Choreographer ( Black Box) $ 2,250 2 $ 4,500 100 0.05
Choreographer ( ACT) $ 1,750 1 $ 1,750 75 0.04
Tech Crew ( Mainstage) $ 750 40 $ 30,000 5000 2.40
Tech Crew (Black Box) $ 500 26 $ 13,000 3250 1.56
Lighting Designer ( Mainstage) $ 2,250 8 $ 18,000 320 0.15 Lighting Designer ( Black Box) $ 1,500 5 $ 7,500 200 0.10 Lighting Designer ( ACT) $ 750 2 $ 1,500 80 0.04
Costume Designer ( Mainstage) $ 1,750 8 $ 14,000 1200 0.58 Costume Designer ( Black Box) $ 1,250 5 $ 6,250 500 0.24 Costume Designer ( ACT) $ 500 2 $ 1,000 150 0.07
Sound Designer ( Mainstage) $ 800 8 $ 6,400 400 0.19
Sound Designer ( Black Box) $ 600 5 $ 3,000 250 0.12
Sound Designer ( ACT) $ 500 2 $ 1,000 100 0.05
Musicians ( Mainstage) $ 1,750 5 $ 8,750 875 0.42
Musicians ( Black Box) $ 1,500 3 $ 4,500 525 0.25
Props Design (all) $ 300 16 $ 4,800 640 0.31
TOTALS $ 37,550 250 $ 389,800 34,790 16.73
The total estimated employment impact for our 2028-29 inaugural season:

Total number of positions hired: 277
Total payroll: $1,044,800
Total FTE per year: 28.7

APPENDIX A: SLO REP ECONOMIC IMPACT REPORT

AMERICANS FOR THE ARTS
ARTS AND ECONOMIC PROSPERITY 6 SURVEY RESULTS
January, 2024)
SLO REP – ECONOMIC IMPACT FY 2019 AND FY 2029 (no parking revenue) Annual Economic Impact $ 3,868,783
Parking Revenue (next page) $ 316,651
TOTAL $ 4,185,434

APPENDIX A: SLO REP ECONOMIC IMPACT REPORT
SLO REP PARKING REVENUE – FY 2029
Based on:
2024 parking structure fees ($3/hr.)
Average time spent at performance/lobby pre-show: 2.75 hrs.

Average time spent at pre-show meal/drinks/downtown: 2.25 hrs. 95% capacity in venue
2 patrons per car
According to a 2014 survey of SLO REP patrons:
67% of SLO REP audiences go to dinner/drinks before or after a show (5 hrs. in structure) 28% of SLO REP audiences only attend the performance ( 2 hrs. in structure) 5% of SLO REP audiences use alternate transportation/free parking

1 Council Minutes
June 4, 2024, 5:30 p.m.

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

Present:

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

1. CALL TO ORDER
A Regular Meeting of the San Luis Obispo City Council was called to order on June 4, 2024 at 5:30 p.m. in the Council Chambers, 990 Palm Street, San Luis Obispo, by Mayor Stewart.

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

3. PRESENTATIONS

3.a JUNETEENTH PROCLAMATION
Mayor Stewart presented a proclamation declaring June 15, 2024 as Juneteenth Day" to Cheryl Vines on behalf of the SLO NAACP.

3.b PRIDE MONTH PROCLAMATION
Mayor Stewart presented a proclamation declaring the month of June as Pride Month" to Dusty Colyer-Worth, on behalf of GALA.

3.c HUNGER AWARENESS DAY PROCLAMATION
Mayor Stewart presented a proclamation declaring June 7, 2024 as Hunger Awareness Day" to Molly Kern on behalf of the SLO Food Bank.

3.d CITY MANAGER REPORT
Interim City Manager Whitney McDonald provided a report on upcoming projects.

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

Silvia
Robert Skinner
Mark Shaffer
Brenden Jacoby
Paloma Nava
Audrey Tran
Andrew Gould
Deena
Abdallah Harazneh
Julia Alber
Dusty Colyer- Worth
Bassem
End of Public Comment--

5. CONSENT AGENDA
Mayor Stewart requested that Item 5j be pulled from the Consent Agenda.

Vice Mayor Pease recused from Item 5k.

Vice Mayor Pease requested that Item 5m be pulled from the Consent Agenda.

Motion By Council Member Shoresman
Second By Council Member Francis
To approve Consent Calendar Items 5a to 5i and 5k to 5l.

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

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

5.b MINUTES REVIEW - MAY 14, 2024 AND MAY 21, 2024 COUNCIL MINUTES Approve the following minutes of the City Council:

May 14, 2024 - Special Meeting
May 21, 2024 - Regular Meeting

3 5.c 2024 BIENNIAL REVIEW OF THE CITY’S CONFLICT OF INTEREST CODE Direct the review of the City’s Conflict of Interest Code and the filing of a Biennial Notice with the City Clerk regarding such review, as required by the Political Reform Act.

5.d AUTHORIZATION TO CONTINUE THE COLLECTION OF MULTIDWELLING PROPERTY FIRE AND LIFE SAFETY INSPECTION FEES Adopt Resolution No. 11496 ( 2024 Series) entitled, “ A Resolution of the City Council of the City of San Luis Obispo, California, authorizing the San Luis Obispo County Auditor to collect fees for 2024-25 Fire and Life Safety Inspections of Multi-Dwelling Properties containing three or more dwelling units on the Secured Property Tax Roll pursuant to California Government Section 54988, Et Seq.”

5.e ADOPTION OF THE 2024 WATER SUPPLY AND DEMAND ASSESSMENT Receive and file the City’s 2024 Water Supply and Demand Assessment.

5.f APPROVE AN ENCAMPMENT RESOLUTION FUND SUBRECIPIENT

AGREEMENT WITH THE COUNTY OF SAN LUIS OBISPO FOR

IMPLEMENTATION OF THE WELCOME HOMEVILLAGE PROJECT
Approve the Encampment Resolution Fund Subrecipient Agreement with the County of San Luis Obispo for implementation of the Welcome Home Village project and authorize the City Manager, or their designee, to execute the agreement.

5.g AMENDMENT TO THE GARDEN STREET TERRACES AFFORDABLE

HOUSING AGREEMENT TO CONVERT ONE BELOW MARKET RATE

RENTAL UNIT TO ONE BELOW MARKET HOMEOWNERSHIP UNIT
Adopt Resolution No. 11497 ( 2024 Series) entitled, “ A Resolution of the City Council of the City of San Luis Obispo, California, to approve the conversion of one Below Market Rate Rental Unit to a Home Ownership Unit within the City’s Below Market Rate Housing Program,” with an option to purchase offered to the existing moderate- income tenant, for the Garden Street Terraces project.

5.h AUTHORIZATION TO APPLY FOR WATERSMART GRANT FOR

ADVANCED METER INFRASTRUCTURE WATER METERS
Adopt Resolution No. 11498 ( 2024 Series) entitled, “ A Resolution of the City Council of the City of San Luis Obispo, California, approving the application for grant funding for the WaterSMART Water and Energy Efficiency Program for purchase and implementation of advanced metering infrastructure.”

4 5.i 2024-25 ROAD MAINTENANCE RECOVERY ACT (SB1) FUNDING AND

PROJECTS
Adopt Resolution No. 11499 ( 2024 Series) entitled, “ A Resolution of the City Council of the City of San Luis Obispo, California, adopting a list of projects for Fiscal Year 2024-25 funded by SB 1: The Road Repair and Accountability Act of 2017.”

5.k SECOND READING OF ORDINANCE NO. 1736 ( 2024 SERIES) TO

ADOPT THE ENERGY EFFICIENT RENOVATIONS POLICY
Vice Mayor Pease declared a conflict on this item and recused due to her business being involved in the design and construction industry.

1. Adopt Ordinance No. 1736 ( 2024 Series) entitled, “ An Ordinance of the City Council of the City of San Luis Obispo, California, adopting Local Amendments to Part 6 of the Building Construction and Fire Prevention Code, 2023” approving the Energy Efficient Renovations Policy for major residential additions and alterations; and

2. Direct staff to submit the approved local amendments and accompanying required submittal forms and information to the California Energy Commission to initiate the local amendments to California Energy Code review and approval process.

5.l FY 2024-25 GRANT APPLICATIONS FOR THE ALCOHOLIC BEVERAGE

CONTROL, OFFICE OF TRAFFIC SAFETY, DEPARTMENT OF JUSTICE

COMMUNITY ORIENTED POLICING AND DEPARTMENT OF JUSTICE

TOBACCO GRANT PROGRAM

1. Adopt Resolution No. 11500 ( 2024 Series) entitled, “ Resolution Authorizing Grant Application for Funding from the Department of Alcoholic Beverage Control”,

2. Authorize staff to submit grant applications to the following agencies:
a. FY 2024-25 Department of Alcoholic Beverage Control in the amount of $93,154.
b. FY 2024-25 Office of Traffic Safety in the amount of $185,100. c. FY 2024-25 Department of Justice Office of Community Oriented Policing Services in an amount not to exceed $ 250,000 with a City match of approximately $ 558,000.
d. FY 2024-25 Department of Justice Tobacco Grant Program in an amount not to exceed $ 60,000.

3. If the grants are awarded, authorize the City Manager or a designee to execute grant related documents and authorize the Finance Director to make the necessary budget adjustments upon the award of the grant.

5 Pulled from Consent by Mayor Stewart

5.j SECOND READING OF ORDINANCE NO. 1735 ( 2024 SERIES) AMENDING CHAPTER 52 OF THE MUNICIPAL CODE ( PARKING RATES) Jennifer Rice, Deputy Director of Mobility Services, provided a brief update on the next steps regarding implementation of the parking rates and responded to Council questions.

Motion By Mayor Stewart
Second By Council Member Marx
Adopt Ordinance No. 1735 ( 2024 Series) entitled, “ An Ordinance of the City Council of the City of San Luis Obispo, California, amending Title 10, Chapter 52 (Parking Meters and Parking Payment Centers), of the Municipal Code Modifying Hourly Parking Rates On-Street and In Surface Parking Lots.”
Ayes (5): Council Member Francis, Council Member Marx, Council Member Shoresman, Vice Mayor Pease, and Mayor Stewart
CARRIED ( 5 to 0)
Pulled from Consent by Vice Mayor Pease

5.m INITIATION OF DETACHMENT APPLICATION TO MODIFY CITY LIMIT BOUNDARY ON SLACK STREET EAST OF GRAND AVE. TO

ACCOMMODATE CAL POLY FACULTY AND STAFF HOUSING

PROJECT, VISTA MEADOWS
Motion By Council Member Marx
Second By Vice Mayor Pease
Authorize staff to proceed with processing a Detachment Application to modify the City limit boundary on Slack Street east of Grand Avenue to accommodate a new Cal Poly faculty and staff housing development known as Vista Meadows, as well as other City limit clean-up areas as needed to correct historical boundary crossings around Cal Poly, for future submittal to LAFCO after City process and required hearings.

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

6 6. PUBLIC HEARING AND BUSINESS ITEMS

6.a ADOPTION OF THE FY 2024-25 SUPPLEMENTAL BUDGET
Finance Director Emily Jackson, Principal Budget Analyst Riley Kuhn, and Capital Improvement Program Administrative Manager Madeline Kacsinta provided an in-depth staff report and responded to Council questions.

Public Comments:

Ellie Washington
Kevin Harris
Maxine Castillo
Dave Christy
Barry Price
End of Public Comment---
Motion By Council Member Marx
Second By Council Member Francis
Adopt Resolution No. 11501 ( 2024 Series) entitled, “ A Resolution of the City Council of the City of San Luis Obispo, California, approving the Fiscal Year 2024-25 Budget” and approve the allocations as stated in the Supplemental Budget document with the following addition:

Amend the SLO REP Challenge Grant in the amount of $2.76 million and utilize Infrastructure Investment Fund dollars designated for Prado Road and Bridge Widening project and prioritize Infrastructure Investment Fund reimbursement with undesignated General Fund Balance at mid-year and future budget hearings as needed.

Ayes (4): Council Member Francis, Council Member Marx, Vice Mayor Pease, and Mayor Stewart
Noes (1): Council Member Shoresman
CARRIED ( 4 to 1)

7. LIAISON REPORTS AND COMMUNICATIONS
Council Member Francis attended ASI Civic Day at Cal Poly, the RTA electric bus meet and greet, the City/University Quarterly lunch, and the Campus Planning Committee meeting.

Vice Mayor Pease attended the SLOCOG meeting.

7 Council Member Marx attended a session of the SLO REP's children program, the Memorial Day ceremony at the American Legion, the IWMA executive committee, and went on a hike with the Northern Chumash Tribal Counsel on the Rollie/Twisselman property.

Council Member Shoresman attended Good Morning SLO, the Special Human Relations Commission meeting to discuss the reallocation of grant funds, and the SLO High School Community Service awards ceremony.

Mayor Stewart attended a couple of the SLO Blues games, rode the 2A bus with one of the Teamsters members and met with some of the drivers, attended the Diablo Decommissioning meeting, the five-year anniversary celebration of Sensorio opening, and participated in the State of the City presentation.

8. ADJOURNMENT
The meeting was adjourned at 9:26 p.m. The City Council will hold a Special Closed Session Meeting on Thursday, June 13, 2024 at 5:30 p.m. in the Council Hearing Room at City Hall, 990 Palm Street, San Luis Obispo.

The next Regular Meeting of the City Council will be held on June 18, 2024 with Closed Session at 4:30 p.m. in the Council Hearing Room and the Regular Meeting at 5:30 p.m. in the Council Chambers at City Hall, 990 Palm Street, San Luis Obispo.

APPROVED BY COUNCIL: 06/18/2024

Item 6g
Department: Community Development
Cost Center: 4006
For Agenda of: 10/1/2024
Placement: Consent
Estimated Time: NA
FROM: Timmi Tway, Community Development Director
Prepared By: Michael Loew, Deputy Director/Chief Building Official SUBJECT: SECOND READING AND ADOPTION OF ORDINANCE NO. 1741 (2024

SERIES) TO AMEND QUALIFICATION FOR CONSTRUCTION BOARD

OF APPEALS

RECOMMENDATION
Adopt Ordinance No. 1741 (2024 Series) entitled, “An Ordinance of the City Council of the City of San Luis Obispo, California, amending Section 15.04.020, Subsection N, of the San Luis Obispo Municipal Code,” which will remove the local requirement to maintain an Accessibility Board of Appeals pursuant to Health and Safety Code 19957.5.

POLICY CONTEXT
City Charter Section 1202: Eligibility, Appointment, and Length of Terms – permits nonregistered voter and non-city resident participation on citizen committees, commissions, boards, and authorities depending upon the nature and purpose of the advisory body, as determined by City Council. City Council approval is required to amend the Advisory Body Handbook revising the participation requirements for committee members.

The specific qualifications for appointment to the Construction Board of Appeals are established under Municipal Code Title 15.04.020 Section 113 and in the Advisory Body Handbook under the Bylaws of the board.

DISCUSSION
Background
On September 3, 2024, the City Council voted 5-0 to introduce Ordinance No. 1741 (Attachment A), which amends Municipal Code Section 15.04.020 Subsection N, and removes the local requirement to establish an Accessibility Board of Appeals pursuant to California Health and Safety Code Section 19957.5. Currently, this municipal code section requires the Construction Board of Appeals (CBOA) to have two physically disabled members, two members experienced in construction, and one member of the public. The amendment to the municipal code allows the City Council to establish local qualifications in the bylaws of the CBOA.

Item 6g
Additionally, based on CBOA’s recommendation, the City Council adopted Resolution No. 11519 (Series 2024), which modifies the qualifications in the bylaws of the board.

Resolution No. 11519 (2024 Series) ensures the CBOA has representation for the physically disabled community and allows advocates who represent them to fill these positions. A vacancy for a physically disabled representative has existed on the board since April of 2022. Furthermore, the updated bylaws now consider applicants eligible to fill the physically disabled community representative positions even if they do not meet the registered voter and residency requirements.

Previous Council or Advisory Body Action
On November 15, 2022, Council adopted Resolution No. 11377 (2022 Series) amending the Human Relations Commission’s (HRC) purpose statement and bylaws section of the Advisory Body Handbook. The amendment expanded the residency requirements for two of the commissioner positions allowing up to two members to be residents and registered voters of San Luis Obispo County or Cal Poly campus with a significant connection to the City of San Luis Obispo. The HRC amendments were supported by the HRC itself as well as the Diversity, Equity, and Inclusion (DEI) Taskforce.

On December 5, 2023, Council adopted Resolution No 11462 (2023 Series) amending the Mass Transportation Committees bylaws section of the Advisory Body Handbook.

The amendment modified the residency requirements for the person with disability position and provides a pathway for the position to be filled by an individual who represents the physically disabled community.

On April 25, 2024, during a Regular Meeting, the Construction Board of Appeals voted to recommend the amendments as proposed in this report.

On September 3, 2024, the City Council voted 5-0 to introduce Ordinance 1741 (2024 Series) that will amend the municipal code and adopted Resolution No. 11519 to amend the advisory body handbook. No changes have been made to the Ordinance since introduction.

Public Engagement
The proposed amendments were discussed at a public meeting of the Construction Board of Appeals on April 25, 2024. This item was introduced at a public hearing during a regular meeting of the City Council on September 3, 2024, which allowed for public comment and followed the required postings and notifications.

CONCURRENCE
The current Construction Board of Appeals membership and Office of Diversity, Equity, and Inclusion concurs with these recommendations. The report and ordinance have been reviewed by the Finance Department and City Attorney’s Office.

Item 6g

ENVIRONMENTAL REVIEW
The California Environmental Quality Act (CEQA) 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: NA Budget Year: 2024-25
Funding Identified: NA
Fiscal Analysis:

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

Total $NA $NA $NA $NA
There are no fiscal impacts associated with the proposed Ordinance.

ALTERNATIVES

1. Council may decide to modify the Ordinance before adoption. Depending on the changes proposed, modifications of the Ordinance may require reintroduction and then adoption during a subsequent public hearing, which will delay implementation of Ordinance.

2. Council could decide not to adopt the Ordinance and require the CBOA to be established pursuant to Health and Safety Code 19957.5. This action is not recommended by staff because the Council has adopted Resolution No. 11519 (2024 Series) that updates the qualifications for members in the bylaws. The new bylaws would be in conflict with the municipal code if this ordinance is not adopted.

ATTACHMENTS
A - Ordinance No. 1741 (2024 Series)

O 1741
ORDINANCE NO. 1741 (2024 SERIES)

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SAN LUIS OBISPO, CALIFORNIA, AMENDING SECTION 15.04.020, SUBSECTION

N, OF THE SAN LUIS OBISPO MUNICIPAL CODE
WHEREAS, the membership requirements for appointment to the Construction Board of Appeals is established in the City of San Luis Obispo Advisory Body Handbook and the Building Construction and Fire Prevention Code of the City of San Luis Obispo, 2023; and
WHEREAS, the Building Construction and Fire Prevention Code of the City of San Luis Obispo, 2023 is adopted under Title 15 of the City of San Luis Obispo Municipal Code; and
WHEREAS, the disability representative position of the Construction Board of Appeals has been vacant since April 1, 2022; and
WHEREAS, expansion of eligibility for the disability representative position could assist in filling the vacancy; and
WHEREAS, the requirements for membership are established locally; and WHEREAS, the language of Health & Safety Code §19957.5 is permissive as to the creation of a local accessibility appeals board; and WHEREAS, the amendments herein do not require the City Council to make express findings for local amendments not considered a “building standard” as defined by Health and Safety Code Section 18909(c).

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

SECTION 1. Environmental Determination. The project is exempt from environmental review per CEQA Guidelines under the General Rule (Section 15061(b)(3)). The project involves updates and revisions to existing regulations. The proposed code amendments are consistent with California Law, specifically the California Health & Safety Code Sections 17958.7 and 18941.5. It can be seen with certainty that the proposed Municipal Code text amendments will have no significant effect on the environment.

SECTION 2. Findings. The City Council finds that each amendment referred to in the ordinance are reasonably necessary and are not considered a “building standard” as defined in Health and Safety Code Section 18909(c).

Ordinance No. 1741 (2024 Series) Page 2
O 1741
SECTION 3. Subsection N of Section 15.04.020 of the San Luis Obispo Municipal Code is hereby amended to read as follows:

N. Amend Chapter 1, Division II, Section 113 to read as follows:
113.1 General. In order to hear and decide appeals of orders, decisions or determinations made by the building official, code official or fire code official relative to the application and interpretations of the California Building Standards Code, the Uniform Housing Code, the Uniform Code for the Abatement of Dangerous Buildings, and the International Property Maintenance Code, and standards referenced by Title 15 of the City of San Luis Obispo Municipal Code, there shall be and is hereby created a Board of Appeals. The building official or fire code official shall be an ex officio member and shall act as secretary to said board but shall have no vote upon any matter before the board. The Board of Appeals shall be appointed by the applicable governing authority and shall hold office at its pleasure. The board shall adopt rules of procedure for conducting its business and shall render all decisions and findings in writing to the appellant with a duplicate copy to the building official.
113.2 Limitations on authority. An application for appeal shall be based on a claim that the true intent of this code or the rules legally adopted hereunder have been incorrectly interpreted, the provisions of this code do not fully apply or an equally good or better form or construction is proposed. The board shall have no authority to waive requirements of this code. For appeals relating to accommodations for the disabled, the authority of the board shall include the ability to authorize reasonable alternatives to disabled access requirements imposed by the California Building Standards Code.
113.3 Qualifications. The board of appeals shall consist of seven members, five of which who are qualified by experience and training to pass on matters pertaining to building construction and building service equipment, hazards of fire, explosions, hazardous conditions or fire protection systems and are not employees of the jurisdiction.

SECTION 4. The Chief Building Official and Fire Code Official are hereby authorized and directed to transmit a copy of this ordinance to the California Building Standards Commission as required by California Health and Safety Code Section 17958.7.

SECTION 5. If any provision of this Ordinance is for any reason held to be invalid by a court of competent jurisdiction, the City of San Luis Obispo hereby declares that it would have passed each and every remaining provision irrespective of such holding in order to accomplish the intent of this ordinance.

Ordinance No. 1741 (2024 Series) Page 3
O 1741
SECTION 6. A summary of this ordinance, together with the names of Council members voting for and against, shall be published at least five (5) days prior to its final passage, in The New Times, a newspaper published and circulated in this City. This ordinance shall go into effect at the expiration of thirty (30) days after its final passage.

INTRODUCED on the 3
rd day of September 2024, AND FINALLY ADOPTED by
the Council of the City of San Luis Obispo on the ___ day of _________ 2024, on the following vote:

AYES:

NOES:

ABSENT:
___________________________
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 6h
Department: Community Development
Cost Center: 4008
For Agenda of: 10/1/2024
Placement: Consent
Estimated Time: N/A
FROM: Timmi Tway, Community Development Director
Prepared By: David Amini, Housing Coordinator
SUBJECT: SECOND READING AND ADOPTION OF ORDINANCE NO. 1742 (2024

SERIES) TO ESTABLISH AN IMPACT FEE DEFERRAL PROGRAM FOR

ELIGIBLE AFFORDABLE FOR-RENT RESIDENTIAL PROJECTS

RECOMMENDATION
Adopt an Ordinance entitled, “An Ordinance of the City Council of the City of San Luis Obispo, California, amending section 4.56.050 (Payment of Fees) of the Municipal Code to establish a development impact fee deferral program for eligible affordable housing projects.”

POLICY CONTEXT
The City’s Major City Goal for housing and homelessness states:

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, non-governmental 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.

The Goal includes implementation measure no. 5 to implement Below Market Rate housing best practices.

The City recently received the Prohousing designation from the State Housing and Community Development Department for innovation in housing policy and a demonstrated commitment to developing solutions to the state’s housing crisis.

The City’s 6th Cycle Housing Element includes a Goal for Affordability, supported by the following policies and programs:

Item 6h
Program 2.9 - Assist with the issuance of tax-exempt bonds, tax credit financing, loan underwriting or other financial tools to help develop or preserve at least 20 affordable units annually through various programs. The proposed resolution and draft Ordinance allow for deferral of impact fees in the form of a loan to the project. The financing mechanism of a loan, rather than a waiver of impact fees, enables projects to leverage the loan amount as soft funding, adding points to competitive tax credit financing applications.

Program 6.16 - Incentivize 20 affordable housing developments per year during the planning period consistent with SLOMC Affordable Housing Incentives. The impact fee deferral program established by the ordinance will provide a standardized process for requesting and implementing impact fee deferral. This will incentivize development of affordable housing.

DISCUSSION
Background
On September 17, 2024, the City Council voted 5-0 to introduce Ordinance No. 1742, (Attachment A), which amends section 4.56.050 (Payment of Fees) of the Municipal Code to establish a development impact fee deferral program for eligible affordable housing projects. No substantive changes have been made to the Ordinance since introduction.

Previous Council or Advisory Body Action
On May 2, 1995, the City Council adopted Resolution No. 8415 (1995 Series) (page 35) which waived development review fees for affordable housing units at the direction of the Community Development Director.

On November 21, 2000, the City Council adopted Resolution No. 9131 (2000 Series) for the purpose of waiving citywide development impact fees for affordable housing units in excess of inclusionary requirements or developed by non-profit housing corporations.

On June 5, 2007, the City Council adopted Resolution No. 9903 (2007 Series) which superseded and replaced Resolution No. 9131 (2000 Series), to allow for development impact fee waivers for voluntary affordable housing units developed by private developers (such as ADUs) in addition to projects that exceed the number required to meet the City’s inclusionary requirements and projects by non-profit developers.

Public Engagement
The proposed amendments were discussed with affordable housing developers and received support. This item was on the agenda for the September 17, 2024 Regular City Council meeting which also allows for public comment and followed the required postings and notifications.

Item 6h

CONCURRENCE
The City Public Works, Finance Department, City Attorney, Parks, Utilities, and Police/Fire departments reviewed and concurred with the recommended amendments in the Ordinance.

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

FISCAL IMPACT
Budgeted: N/A Budget Year: 2024-25
Funding Identified: N/A
Fiscal Analysis:

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

Total $0 $ 0 $ 0 $ 0
There is no financial impact directly associated with updating the development impact fee deferral program for eligible residential projects. The indirect impact of fee deferrals would be the delay in availability of impact fee revenue. Over the last 10 years, 8 impact fee deferral loans have been given to affordable housing projects, totalling $5 million in deferred impact fee revenue, with repayment terms ranging from 30 to 55 years at 3 percent interest. The proposed resolution would update the repayment term on all future deferral loans to 20 years, reducing the indirect impact on the City’s impact fee funds.

Staff anticipates that about one project per year will be given an impact fee deferral loan under the program.

Item 6h

ALTERNATIVES

1. Council may decide to modify the Ordinance before adoption. Depending on the changes proposed, modifications of the Ordinance may require reintroduction and then adoption during a subsequent public hearing, which will delay implementation of Ordinance.

2. Council could decide not to adopt the Ordinance and require future impact fee deferrals to be conducted under the existing 2007 resolution. This is not recommended by staff, as the Ordinance provides a critical update to the fee deferral program, clarifying the term and applicability of fee deferrals.

ATTACHMENTS
A - Ordinance No. 1742 (2024 Series)

O 1742
ORDINANCE NO. 1742 (2024 SERIES)

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SAN LUIS OBISPO, CALIFORNIA, AMENDING SECTION 4.56.050 (PAYMENT OF

FEES) OF THE MUNICIPAL CODE TO ESTABLISH A DEVELOPMENT

IMPACT FEE DEFERRAL PROGRAM FOR ELIGIBLE AFFORDABLE
FOR-RENT HOUSING PROJECTS. THE PROJECT IS EXEMPT FROM

ENVIRONMENTAL REVIEW (CEQA) (IMPACT FEE DEFERRAL

PROGRAM)
WHEREAS, the City Council of the City of San Luis Obispo conducted a public hearing in the Council Chambers of City Hall, 990 Palm Street, San Luis Obispo, California, on November 21, 2000, adopting Council Resolution No. 9131 (2000 Series) for the purpose of waiving city-wide development impact fees for affordable housing units in excess of inclusionary requirements; and
WHEREAS, the City Council of the City of San Luis Obispo conducted a public hearing in the Council Chambers of City Hall, 990 Palm Street, San Luis Obispo, California, on June 5, 2007, adopting Council Resolution No. 9903 (2007 Series), which superseded and replaced Resolution No. 9131 (2000 Series); and WHEREAS, the City Council of the City of San Luis Obispo conducted a public hearing in the Council Chambers of City Hall, 990 Palm Street, San Luis Obispo, California, on September 17, 2024, adopting Council Resolution No. 11521 (2024 Series), which superseded and replaced Resolution No. 9903 (2007 Series); and WHEREAS, the City Council of the City of San Luis Obispo conducted a public hearing in the Council Chamber of City Hall, 990 Palm Street, San Luis Obispo, California on September 17, 2024, for the purpose of considering the amendments amendment to Section 4.56.050 (Payment of Fees) of the Municipal Code to implement the Development Impact Fee Deferral Program; and
WHEREAS, the City has identified Housing as a Major City Goal; and WHEREAS, the City’s Housing Element Programs 2.9 and 6.16 supports incentivization of affordable housing incentives; and
WHEREAS, impact fees are an identified barrier to production of affordable housing; and
WHEREAS, impact fees for affordable housing projects have been deferred by the City to help accelerate production of affordable housing; and WHEREAS, the aforementioned Program formalizes a process for applying for and receiving impact fee deferrals; and

Ordinance No. 1742 (2024 Series) Page 2
O 1742
WHEREAS, deferral of impact fees structured as a loan owed to the City provides defined terms of repayment and ensures no ultimate loss of revenue to cover the ongoing impacts of the development; and
WHEREAS, the City Council finds that the proposed amendment is consistent with the General Plan, and other applicable City goals and policies as amended; and WHEREAS, notices of said public hearing were made at the time and in the manner required by law; and
WHEREAS, the City Council has duly considered all evidence, including the deferral program’s consistency with the Mitigation Fee Act and the California Constitution, the City’s ongoing need to cover the costs of increased residential development, the input of interested parties, and evaluation and recommendations by staff.

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

SECTION 1. Incorporation of Recitals. The City Council find that the foregoing recitals and staff report presented with this ordinance are true and correct and are incorporated in the ordinance by this reference and adopted as the findings of the City Council.

SECTION 2. Findings. Based upon all the evidence, the City Council makes the following additional findings:

1. The proposed amendments to Section 4.56.050 to implement the Impact Fee Deferral Program will not cause significant health, safety, or welfare concerns since the amendments are consistent with the General Plan and directly implement City goals and polices.

2. The proposed amendments to Section 4.56.050 of the Municipal Code are consistent with the 6th Cycle Housing Element Program 6.18 which states “Actively seek and collaborate with non-profit housing providers to (jointly) apply for three revenue sources each year during the planning period, including State, Federal and private/non-profit sources, and financing mechanisms to financially assist with the development of housing affordable to extremely low, very low and low or moderate income households.”
SECTION 3. Environmental Determination. This Ordinance is exempt from the California Environmental Quality Act (CEQA), because it is not a “project” under Public Resources Code § 21065 and the CEQA Guidelines §15378 in that the impact fee deferral program would not cause either a direct or reasonably foreseeable indirect physical change in the environment. Every development project subject to a development impact fee deferral loan would be required to undergo applicable development review, including CEQA compliance or finding of exemption.

Ordinance No. 1742 (2024 Series) Page 3
O 1742
SECTION 4. Section 4.56.050, entitled “Payment of fees” is hereby amended to read as follows:

A. Except as otherwise provided in Section 66007 of the Government Code, development impact fees shall be paid to the city upon final inspection or the date the certificate of occupancy is issued, whichever occurs first, unless the City requires payment of those fees at an earlier time as authorized by Government Code 66007. In cases where payment of all or part of the required fee is deferred beyond the earlier date of final inspection or certificate of occupancy, the community development director may require that the applicant, at the applicant’s expense, execute a contract with the city to pay all deferred impact fees in accordance with the provisions of the City’s Impact Fee Deferral Program, as further described in subsection B of this Section and further approved and amended through City Council Resolution.

B. Impact Fee Deferral Program

1. In accordance with the provisions and definitions of the City’s Development Impact Fee Deferral Program Guidelines, an eligible applicant may enter into a development impact fee deferral loan agreement for a qualifying forrent residential development project. The fee deferral agreement shall explicitly provide for the recordation of a lien against the real property on which the approved development project is to be located, which shall be removed upon payment in full of all deferred fees. All costs assessed by the county for the recordation of the documents set forth herein shall be paid by the applicant at the time of execution of the fee deferral agreement. Deferral is at the sole discretion of the City. The Community Development Director will consider the needs of the City and the feasibility of the deferral request on a case-by-case basis. The decision of the Community Development Director (or the Council, if approval is deferred to the City Council by the Community Development Director) on an impact fee deferral application is final and not appealable.

2. The development impact fees eligible for deferral shall be limited to the fees identified in Section 4.56.030. Special district fees, water and wastewater impact fees shall not be eligible for the Impact Fee Deferral Program.

SECTION 5. Severability. If any subdivision, paragraph, sentence, clause, or phrase of this Ordinance is, for any reason, held to be invalid or unenforceable by a court of competent jurisdiction, such invalidity or unenforceability shall not affect the validity or enforcement of the remaining portions of this Ordinance, or any other provisions of the city's rules and regulations. It is the city's express intent that each remaining portion would have been adopted irrespective of the fact that any one or more subdivisions, paragraphs, sentences, clauses, or phrases be declared invalid or unenforceable.

Ordinance No. 1742 (2024 Series) Page 4
O 1742
SECTION 6. Implementation. A summary of this ordinance, together with the names of Council members voting for and against, shall be published at least five (5) days prior to its final passage in The New Times, a newspaper published and circulated in this City. This ordinance shall go into effect at the expiration of thirty (30) days after its final passage.

INTRODUCED on the 17th day of September 2024, AND FINALLY ADOPTED by the Council of the City of San Luis Obispo on the ___ day of ___, 2024, on the following vote:

AYES:

NOES:

ABSENT:
__________________________
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 7a
Department: Administration
Cost Center: 208-1006
For Agenda of: 10/1/2024
Placement: Business
Estimated Time: 30 minutes
FROM: Greg Hermann, Deputy City Manager
Prepared By: Jacqui Clark-Charlesworth, Tourism & Community Promotions Manager; Molly Cano, Economic Development & Tourism Manager
SUBJECT: 2023-24 ANNUAL REPORT OF THE TOURISM BUSINESS

IMPROVEMENT DISTRICT

RECOMMENDATION

1. As recommended by the Tourism Business Improvement District (TBID) Board, receive and approve the TBID Board’s annual report for FY 2023-24; and

2. Adopt a Draft Resolution of Intention entitled, “A Resolution of the City Council of the City of San Luis Obispo, California, declaring its intention to continue the San Luis Obispo Tourism Business Improvement District, to continue the basis for and to levy the assessment for the district, and to set a date for the Public Hearing on the district and the assessment for 2024-25.”

POLICY CONTEXT
As referenced in the City’s Municipal Code, 12.42.060 and Sections 36530 and 36533 of the State’s Parking and Business Improvement Law, the appointed TBID Advisory Board is to submit an annual report that outlines the past year’s efforts and how the funding was used and to what effect.

Background
In June 2008, the Council adopted Ordinance No. 1517 establishing a tourism business improvement district as requested by the local lodging industry. The district was formed under the State’s Parking and Business Improvement Law of 1989, sections 36500 et seq. of the Streets and Highways Code and codified into the City’s Municipal Code under Chapter 12.42.

Pursuant to Municipal Code Section 12.42.060 and Sections 36530 and 36533 of the State’s Parking and Business Improvement Law, the appointed TBID Advisory Board is to submit an annual report (Attachment A) that outlines the past year’s efforts and how the funding was used and to what effect.

Item 7a
Section 36534 further requires that after the approval of the annual report, the Council shall adopt a resolution of intention (Attachment B) to levy an annual assessment for that fiscal year. The resolution also sets a public hearing to receive any written or oral protests against the continuation of the TBID as required by the applicable statute.

Annual Report
On September 4, 2024, the TBID Board met in a regular monthly meeting to finalize the 2023-24 annual report for recommendation to the Council. The annual report reiterates the use of the TBID funds within the defined marketing platform that guides the strategy used to deliver on the TBID’s objective and goals.

The annual report’s contents include:

1. TBID Background and Advisory Body

2. 2023-24 Year by the Numbers

3. Strategic Plan Implementation and Program Approach

4. 2023-24 Summary of Activities

5. 2023-24 Financial Statement

6. Looking Ahead to 2024-25

7. Charts and Graphs showing various results
Next Steps
Should the City Council approve the annual report and adopt the resolution of intention, a public hearing will be noticed for October 15, 2024. The public hearing will allow hoteliers to submit comments, voice concerns, and protest the assessment.

As set forth in Sections 36524 and 36525 of the California Streets and Highways Code, the Council has the ability to continue the proposed citywide TBID at this public hearing on October 15, 2024, unless oral or written protests are received from City hoteliers that pay 50% or more of the proposed assessments. In that event, the Council cannot consider continuation of the TBID in the City for at least one year.

Noticing Schedule
Legal notices regarding the Council’s review and consideration of the TBID annual report were published in the New Times and postcards were mailed to TBID properties on September 19, 2024. For convenience, the link to the agenda was also distributed to TBID constituents and stakeholders via email. Public noticing for the TBID Advisory Board meeting held on September 4, 2024, was performed through the posting of the agenda on the City’s website by 5:00 pm on August 30, 2024, with the agenda distributed to TBID constituents and stakeholders via email for convenience.

Previous Council or Advisory Body Action
On September 4, 2024, the TBID Board approved the 2023-24 annual report for submission to Council and recommended the continuation of the TBID for fiscal year 2024-25 (Attachment C).

Item 7a
Public Engagement
This item is on the agenda for the October 1, 2024 Council Meeting and will follow all required postings and notifications. The public has an opportunity to comment on this item at or before the meeting. All Advisory Body Meetings for the TBID were noticed in accordance with Brown Act standards.

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: 2023-24
Funding Identified: Yes
Fiscal Analysis:

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

Total $ $ $ $
Acceptance of the FY 2023-24 Annual Report does not result in any direct fiscal impacts to the City. The current unaudited year-end TBID Assessment Revenue for FY 2023-24 is $2,201,977, which is approximately $61,177 more than the budgeted amount, based on the calculation of 20% of the projected Transient Occupancy Tax (TOT) reflected on page 12 of the City’s FY 2024-25 Adopted Financial Plan Supplement.

In FY 2024-25, the TBID projected revenue is $2,183,616 and is budgeted for program costs including staffing. Additionally, the City will retain approximately $43,672 of the assessment revenue - roughly 2% of FY 2024-25 TBID Assessment Revenue - to cover the City’s administrative costs associated with collecting and disbursing the assessment.

ALTERNATIVES
The Council may choose to not approve the report or adopt the resolution of intention. This action is not recommended as the advisory body has fully reviewed the report and recommended the approval to Council to move forward with the Public Hearing for the TBID. Council also has the option to request additional information before approval.

Item 7a

ATTACHMENTS
A – SLO TBID 2023-24 Annual Report
B – Draft Resolution of Intention to continue the SLO TBID C – TBID Draft Minutes from September 4, 2024

SLO TBID
ANNUAL
REPORT
2023-2024 Page 107 of 265
Background . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 Advisory Body . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 Advisory Body Bylaws . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 2022-23 Year By The Numbers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 Strategic Plan Implementation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 Constituent Relations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 Diversity, Equity and Inclusion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 Sustainability . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 Visit San Luis Obispo . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 Marketing Activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 Brand & Campaign . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12 Website . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 SEO . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 Digital Media . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 Email Marketing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 Print Advertising . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15 Social Media . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16 Public Relations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17 Promotions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18 Guest Services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19 Events....................................................................................20 Strategic Partnerships . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21 Industry Relations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22 2022-23 Awards & Accolades . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23 Financial Statement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24 Looking Ahead . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25 Appendix . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26 TOT Chart For 2022-23 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29 TOT Distribution For 2022-23 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29 TOT Month To Month 2022-23 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30 OCC Month To Month . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31 ADR Month To Month . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32 REVPAR Month To Month . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33 Strategic Imperatives . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34

CONTENTS

SLO TBID Annual Report 2023-24 3
In June 2008, the City Council adopted Ordinance 1517 establishing the Tourism Business Improvement District (TBID) in the City of San Luis Obispo as requested by the local lodging industry. The assessment of two percent of gross receipts for the district became effective on October 1, 2008, and the use of funds as defined in Section 12.42.030 of the Municipal Code states:
“This ordinance is made and enacted pursuant to the provisions of the Parking and Business Improvement Area Law of 1989 (Sections 36500 et. seq., of the California Streets and Highways Code). The purpose of forming the district as a business improvement area under the Parking and Business Improvement Area Law of 1989 is to provide revenue to defray the costs of services, activities and programs promoting tourism which will benefit the operators of hotels in the district through the promotion of scenic, recreational, cultural and other attractions in the district as a tourist destination.” The use of the assessment fund is based on the recommendation of the Tourism Business Improvement District advisory board (TBID Board) which is staffed by City of San Luis Obispo hotel owners, operators, and/or managers. The board members are appointed by the City Council and serve for an initial term of four years with the opportunity to serve a second term for a maximum of eight years. 2023-24 Tourism Business Improvement District Board

BACKGROUND

ADVISORY BODY

NAME PROPERTY STATUS TERM CONCLUDES
Clint Pearce * ** Madonna Inn Appointed May 2022 3/31/2026 Lori Keller Apple Farm Inn Appointed June 2022 3/31/2026 Prashant Patel Vagabond Appointed Sept. 2022 3/31/2025
Lydia Bates * ** Hotel San Luis Obispo Appointed Sept. 2022 3/31/2028 Winston Newland Quality Suites Appointed April 2022 3/31/2027 Sandy Sandoval Embassy Suites SLO Appointed June 2022 3/31/2025 Nipool Patel Lamplighter Inn & Suites Appointed October 2023 3/31/2028 * Served as Chair for a portion of FY 23-24
** Served as Vice Chair for a portion of FY 23-24

SLO TBID Annual Report 2023-24 4
In addition to the governing City ordinance, the TBID Board established its advisory body bylaws and further defined its role and functions as:

The functions and duties of the TBID Board shall include, but not be limited to, the following:

A. Planning a comprehensive program to promote tourism to the City of San Luis Obispo and prepare an annual marketing program consistent with industry goals and objectives.

B. Develop advertising and promotional programs and projects to benefit the lodging industry in San Luis Obispo.

C. Present an annual assessment report to the City Council regarding the implemented promotional programs and projects.

D. Perform any other lawful tasks as directed by the Council.

The TBID Board meets monthly on the second Wednesday at 10 a.m. for its regular board meeting. In fiscal year 2023-24, the board continued holding a second monthly special meeting in addition to the regular board meeting. In total, the Board met 16 times for regularly scheduled monthly meetings and special board meetings during the fiscal year, representing an average of 37 volunteer hours annually per each of the seven board members. In 2023-24, the Board also met for agency interviews for their Marketing Services RFP. This process began in November 2023 and culminated in the Board’s recommendation during their May meeting.

ADVISORY BODY BYLAWS

SLO TBID Annual Report 2023-24 5
In the 2024-25 fiscal year, the City of San Luis Obispo once again collected a record-breaking figure of transient occupancy tax (TOT) totaling $10.9 million. This number represents a 2% increase over budget San Luis Obispo once again saw five $1 million revenue collection months in July, August, September April and June. This incredible contribution of TOT revenue to the City’s General Fund is one of the direct benefits of tourism for the City, as the full collection of TOT revenue is retained by the City. Separately, the TBID retains the revenue collected through its special assessment of 2%, which in FY 23-24 resulted in nearly $2.2 million, more than $200,000 originally projected.

The fiscal year 2023-24 occupancy level in the city slightly increased by less than 1% compared to the 2022-23 fiscal year, with an average annual occupancy rate of 68% for the year. While this modest year-over-year growth illustrates the continued recovery of visitors returning to travel with overnight stays in San Luis Obispo — when compared to occupancy pre-pandemic, it is still about 3% below the 2018-19 fiscal year when annual average occupancy for the city exceeded 70% for the year.

The growth of the Average Daily Rate (ADR) in San Luis Obispo has slowed. In 2023-24 the annual ADR was approximately $176, which on average is essentially flat to the previous year, but still $23 higher than the pre-pandemic year of 2018-19 for comparison.

The last key indicator used by the TBID to gauge impact is RevPAR, defined as Revenue Per Available Room. In the 2023-24 fiscal year, the annual average RevPAR was slightly up from the prior year at the rate of $121.77 on average.

While these numbers present a snapshot of the status of the lodging properties, the TBID Board also tracks the visitation into the downtown Visitor Center to represent the foot traffic. In FY 23-24, the Visitor Center served approximately 85,826 guests, up nearly 4% compared to the previous fiscal year.
2023-24 YEAR BY THE NUMBERS
MEASUREMENT FY 2023-24 RESULT % CHANGE FROM FY 2023-24
TOT $10,901,820.00 0%
TBID $2,176,043.00 0%
Occupancy 68.17% 0.7% increase
ADR $176.31 -0.5% decrease
RevPAR $ 121.77 0.0%

CHECK THE APPENDIX FOR COMPLETE GRAPHS (GRAPHS FOR TOT/ADR/REVPAR/OCC)

SLO TBID Annual Report 2023-24 6
The TBID Strategic Plan serves as one piece of the framework for the direction and decisions made by the TBID Board for the tourism program this fiscal year. As outlined in the plan, the SLO TBID stewards the San Luis Obispo brand and represents its lodging partners, driving overnight stays by telling the story of San Luis Obispo through targeted marketing content and activities, serving as a convener and subject matter expert for tourism conversations impacting the destination and advancing strategic partnerships that extend the reach and influence of Visit San Luis Obispo.

As defined within the plan, the TBID continues to focus on the fulfillment of the following five Strategic Imperatives:
• Elevate the SLO Brand and Experience
• Deliver Smart Growth
• Build Meaningful Partnerships
• Ensure Operational Excellence
• Foster Destination Resilience
Each of these imperatives contains objectives and initiatives that the TBID Board strives to achieve in the life of the plan. The examples of the accomplishments pertaining to these Strategic Imperatives are highlighted throughout the annual report. In the fall of 2024, the TBID Board will be undergoing an update to its Strategic Plan for 2025-2030.

CHECK THE APPENDIX TO VIEW THE FULL STRATEGIC PLAN MATRIX

STRATEGIC PLAN IMPLEMENTATION

SLO TBID Annual Report 2023-24 7
As a commitment to the imperative to “Ensure Operational Excellence” the TBID Board continued to support constituent relations efforts in 2023-24. To keep the lodging constituency abreast of all TBID business, the TBID Board was assigned properties to liaise.

Each board member was responsible for communication with their respective group of hotels and then asked to report their findings during the “Hotel Update” portion of each Board meeting agenda.

The TBID also leveraged the outreach support of the SLO Chamber’s contracted services to perform weekly lodging call-arounds and quarterly hotel visits. This resulted in 3,922 touch points with San Luis Obispo hotels through phone calls, emails and property visits to distribute important visitor-serving collateral.

In addition, this year the TBID hosted two partner receptions to encourage constituent networking and provide an opportunity to hear important information on TBID projects and programs. Attendees at both events represented nearly half of the 42 lodging properties with eight strategic and community partners also in attendance. In post-event surveys, constituents rated the presentation and updates from the TBID and partners and the ability to network as most valuable.

In addition creating opportunities for networking and education, the TBID also created marketing resources to support the lodging properties connection to promotional efforts. Visit San Luis Obispo’s MidWekend promotion to support off-peak, shoulder season travel was once again turned into a toolkit that was shared with lodging properties to utilize across their own channels. In addition to the marketing efforts of the TBID, the toolkit allowed individual properties to utilize draft messaging and promotional creative to more easily speak to their audiences, incentivizing travel to their property and SLO.

CONSTITUENT RELATIONS

SLO TBID Annual Report 2023-24 8

DIVERSITY, EQUITY AND INCLUSION
The TBID shares in the global mission for diversity, equity and inclusion. Along with partner destination marketing organizations like Visit SLO CAL, the TBID is committed to spreading the message that San Luis Obispo is a welcoming and inclusive destination for all. As an ally, the TBID listens and continuously reflects to fully understand the demand for more direct action so that all people can unequivocally feel a stronger sense of belonging and safety here. It is in the TBID organization’s DNA to treat all persons equally, with dignity and respect, including all cultures, national origins, gender identities, gender expressions, sexual orientations, pregnancy statuses, racial and ethnic identities, linguistic backgrounds and languages, age, abilities, genetic information, veteran status and spiritual/religious beliefs. The TBID is committed to sharing and amplifying these values with everyone who travels to San Luis Obispo.

The TBID is committed to advancing Diversity, Equity and Inclusion through all work scopes, with diverse representation being top of mind as we invite newcomers and all to explore San Luis Obispo. DEI continues to show up within tourism efforts through:
• Creating a strategic partnership with Gala Pride and Diversity Center. • Targeting more diverse audiences through paid media and public relations. • Uplifting and sharing diverse stories and faces through owned channels. • Expanding diverse representation within TBID-owned marketing assets.

SLO TBID Annual Report 2023-24 9

SUSTAINABILITY
At its core, Visit San Luis Obispo’s brand vision is to be known as a tourism organization that balances business and sustainability, helping make San Luis Obispo a must-stay destination while passionately partnering to reach the City’s 2035 carbon neutrality goal.

Over the past three years, Visit San Luis Obispo focused on creating a sub-brand — Sustainable SLO — to speak to travelers and locals and develop a consistent visual language that could be broadly applied. From these efforts sprang the Keys for Trees program and subsequent efforts, which not only created visibility around the City’s goals but also effected real-world change at a time when the importance of every action toward sustainability is heightened.

This year Visit San Luis Obispo continued previous work efforts and developed new, impactful partnerships to advance sustainability and climate action within the tourism efforts. A few highlights include:
• Partnering with Kind Traveler, a responsible travel platform, to leverage their sustainable-minded audience and network. • Continuing Keys for Trees, developed to offset the carbon impact from travel in the community. Through this program, 1% of the TBID’s projected revenue was directed to planting trees in San Luis Obispo as part of the Office of Sustainability and Natural Resources’ program with EcoSLO.
• Continued Citywide collaborations such as Solid Waste and Parks & Recreation to brand the City's big belly trash receptacles and trailheads.
• Promoting off-season and mid-week travel through Visit San Luis Obispo’s promotional campaign The Midweekend.

SLO TBID Annual Report 2023-24 10

MARKETING ACTIVITIES
To ensure that the TBID marketing programs are intercepting travelers at all stages of the traveler’s journey, the TBID and the team of agencies utilized different marketing levers across that journey. This multi-pronged approach drove an efficient and effective conversion strategy. The SLO brand messages and the areas of opportunity were adapted to tease potential travelers across the journey. In addition, looking at the travelers’ journey helped the TBID incorporate and account for the fluctuations in travel behavior. •Aim to create
brand awareness &
connection
•Create shareable
content that inspires
travel
•Bring prospects to the
website to encourage
research and
discovery about what
makes the destination
special and unique
•Help prospective
travelers plan with
destination-specific
content
•Encourage travelers to
visit key stakeholder
pages to book & plan
their trip

SERVICES
•Organic Social
•Paid Social
•Display Ads
•Email
•PR
•Influencers

SERVICES
•Website Experience
•Organic Search
•Paid Search
•Organic Social
•Paid Social
•Display Ads
•3rd Party Ads
•Email
•Public Relations
•Print

SERVICES
•Organic Search
•Paid Search
•Paid Social
•3rd Party Ads
•Website Experience
•Email

SERVICES
•Website Experience
•Email
•Organic Social

SERVICES
•Organic Social
•Keep the conversation
going to amplify our
message
•Utilize website to
plan in-destination
moments and
activities
•Find up-to-date travel
information

DREAMING PLANNING BOOKING EXPERIENCING SHARING

SLO TBID Annual Report 2023-24 11

POSITION
(Distinctly stand out
among competition)

PROMISE
(Clear messaging and
identity that connects)
PURPOSE + PERSONALITY + PRINCIPLES
(United brand & culture)

BRANDING & CAMPAIGN
The TBID, known as Visit San Luis Obispo, manages the tourism brand for the destination of San Luis Obispo, delivering balanced growth of tourism with creativity and integrity. The Visit San Luis Obispo brand supports the TBID’s initiatives to share the abundance of SLO, drive prosperity to the lodging economy and serve as the voice of all stakeholders. n FY 23-24, Visit San Luis Obispo continued to utilize the recently updated brand book. The guide describes what the destination marketing organization stands for, how it benefits travelers and locals and why it stands out. It contains the brand’s essence and spirit, as well as how it can be brought to life visually, verbally and culturally. It contains everything from guidelines for messaging and logo use to color palettes and brand partnership examples, as well as outlines the philosophies and beliefs for Visit San Luis Obispo.

If putting “heads in beds” is Visit San Luis Obispo’s business purpose, putting “hearts in beds” is its brand purpose. We live to share all that SLO stands for so we can emotionally connect with and welcome people who will fall in love with our community in such a way that they actually become part of it, caring for it as if it were their home and returning time and time again.

SLO TBID Annual Report 2023-24 12

PURPOSE

HEARTS IN BEDS
If putting “heads in beds” is our business purpose, putting “hearts in beds” is our brand purpose. We live to share all that San Luis Obispo stands for so we can emotionally connect with and welcome people who will fall in love with our community in such a way that they actually become part of it, caring for it like they live here and returning time and time again.

PROMISE

A CHANCE TO LIVE THE SLO LIFE
The “SLO Life” is a deep breath that releases life’s pressures.

It’s a change of pace. It’s a fresh take. It’s a warm embrace. It’s a feeling of comfort and calm in a welcoming place filled with a special energy, connection, creativity and a wholehearted spirit.

You can feel the “SLO Life” wrap its arms around you and pull you close. It’s tangible. And you’ll never want to let that feeling go, so you live the “SLO Life” to its fullest while you’re here and take a piece of it with you when you head back home.

POSITION

HOMEBASE AWAY FROM HOME
You don’t just visit SLO on vacation, you become part of our community and culture, an honorary local. The welcoming waves hello, neighborly nods and small-town California charm instantly make you feel comfortable and allow you to start living the “SLO Life.” As you immerse yourself in our city, you bond with it and start to feel a sense of belonging that blends with the beauty of life’s stresses being released because you’re away–it truly feels like a home away from home. And with the beaches, iconic sites and stunning beauty of the world-class Central Coast nearby, it’s also an incredible homebase during your vacation. SLO is the ideal homebase away from home.

SLO TBID Annual Report 2023-24 13

WEBSITE
SEO
↑
21%
Overall Traffic YoY
↑
32%
Organic Traffic
26%
Pages per Session
↑
126%
Organic Hotel Referrals
↑
126%
Organic Homestay Referrals
↑
26%
New Users YoY
9%
Hotel Partner Referrals YoY (35,979 vs 33,173)
↑
9%
Hotel Partner Referrals YoY
VisitSLO.com is the City’s official tourism website and the primary marketing tool used to represent the destination. It’s designed mainly for consumers but also serves the travel trade, meeting planners, TBID members and media.

The website is the cornerstone for all of Visit San Luis Obispo’s marketing efforts — everything flows to or from the website. In July 2023, the TBID launched a redesign of VisitSLO.com, a process years in the making.

Search Engine Optimization (SEO) ensures the relevancy and success of the TBID’s website. It also builds website authority to improve VisitSLO.com’s positioning and findability on search pages. By developing the depth of content and optimizing existing content, VisitSLO.com saw increased organic traffic to optimized pages and encouraged users to engage with the website by improving user experience. The decrease in blog views is due to many of those articles being repurposed into pages instead. The decrease in blog views is due to many of those articles being repurposed into pages instead, and pulling traffic with it. ↑
↑

SLO TBID Annual Report 2023-24 14

DIGITAL MEDIA
Leveraging a 7% budget increase, our FY23-24 digital media strategy employed a comprehensive, integrated approach combining traditional and digital tactics. Building on past successes, we focused on increasing awareness and interest for San Luis Obispo in key markets. Our goals included:
• Brand Awareness & Interest: Increase brand awareness and build desire to visit San Luis Obispo in target drive and fly markets.

Strategically managing spend, efficiently and effectively to maximize budget. • Increase Engagement & Planning: Encourage further engagement and consideration of San Luis Obispo among potential travelers by driving them to VisitSLO.com
• Encourage Conversions & Booking: Optimize digital media strategies in order to encourage high-intent audiences to engage with The strategy proved successful, and we continue to gain valuable performance insights that will help us build upon previous years to consistently position San Luis Obispo as a top destination among our target audiences. ↑
27%
Paid Traffic YoY

62.9 MIL
Paid Impressions

13.83%
Paid Search CTR Benchmark 4.68%

13.83%
Paid Social CTR +30%
↑
84%
Google Ads Partner Referrals YoY
↑
73%
Google Ads + Facebook Clicks YoY
3,668
New Subscribers Added in the Last Year
34 Emails sent in total
(Including brand research outreach,
additional MidWeekend promotions, etc.)

EMAIL MARKETING
Building on the foundation laid in FY 22-23 with a revamped email template, segmented subscriber database, welcome series and reengagement strategy, our FY 23-24 efforts centered on boosting audience engagement and growing our subscriber list. Through the monthly creation of hyper-personalized content, we aimed to foster stronger connections with SLO visitors. By offering gated content, giveaways and prominent sign-up buttons across the newly redesigned VisitSLO.com, we grew our email list while delivering tailored content to existing subscribers.
↑
50%
Avg. Newsletter Open Rate

2.4%
Avg. Click Rate
20 Total Emails Sent
↑
92%
Growth in Newsletter Subscribers
↑

SLO TBID Annual Report 2023-24 15

PRINT ADVERTISING
Limited print advertising placements were continued in Visit San Luis Obispo’s media mix for FY 23-24. Traditional print campaigns are an important tool to reach niche market visitors primarily in the mature demographic and to reinforce travel inspiration while building brand awareness for the destination.

Placements Included:
• Visit SLO CAL Visitors Guide
• SLO Chamber Visitors Guide
• Visit California Visitors Guide & Road Trips Guide
• Destination Brochure Distribution through Certified Folders • Cal Poly Program Ad & Visiting Teams Guide
• Central Coast Tourism Council Map Cover and Regional Listing • Women’s Day Magazine
SLO Chamber Visitors Guide
Women's Day Magazine

SLO TBID Annual Report 2023-24 16

SOCIAL MEDIA
ShareSLO — Visit San Luis Obispo’s social media — is a platform for locals and visitors alike to find inspiration, information and connection to and within San Luis Obispo. The goal of ShareSLO is to optimize Visit San Luis Obispo’s efforts and further establish clear value for following ShareSLO across social media.

Some of the highlights include:
• Creating an organic viral reel each quarter — We’re in SLO (337k), Hidden Gems Hike (217k), SLO Restaurant Week (100k), Waterfall Tiktok (47k) & Waterfall Reel (77k).
• Partnering with Amtrak on collaborative reel getting in front of their audience of 301k. • Substantial follower increase, 7,800 across all platforms with a 10% increase in out-of-area followers. • Shoutout from Visit California for the Top Short-Form Video in their California Now Travel Story Network June Newsletter.

Visit San Luis Obispo Social Media Channels:

SLO TBID Annual Report 2023-24 17

PUBLIC RELATIONS
In FY 23-24, Visit San Luis Obispo continued the shared approach to Public Relations contract efforts which included a joint contract between the TBID and the Promotional Coordinating Committee (PCC) with the San Luis Obispo Chamber of Commerce for Public Relations efforts, plus the TBID continued with the national Public Relations agency, DCI. On behalf of the City’s Community Promotions program, the SLO Chamber is responsible for establishing professional relationships with local and regional strategic partners and journalists to build and maintain awareness of San Luis Obispo as an ideal place to live, play and stay. To further expand the proactive destination Public Relations efforts, DCI is responsible for national media relations.

Our Public Relations efforts resulted in dozens of individual media visits and a group press trip, The Art of SLO(wing) Down. A significant new undertaking was the Southern California Media Mission, a dedicated activation for SLO on the road. Over five days, staff and SLO Chamber’s PR representative met with 23 national and regional media across three events and individual meetings spanning from Los Angeles to San Diego. The goal for PR in FY 23-24 was to curate fresh, unique content to continue inspiring travel, generate and secure media leads that speak to our target audiences — including drive markets — as well as build and strengthen relationships with key media who are the catalyst to generating awareness of the destination and its diverse experiences.

Overall, San Luis Obispo received 276 mentions in media articles as a result of Public Relations efforts in FY 23-24, of which 133 placements were attributed to the proactive work. Top media coverage included: CNN Travel, Los Angeles Times, Forbes and AFAR. 605 MIL
Circulation

23.4 MIL
Media Impressions
$5.8 MIL
Ad Equivalency
571/1032
Qualitative Score
86 Total Number of Placements
17 PLACEMENTS
20% MWM List Penetration

SLO TBID Annual Report 2023-24 18

PROMOTIONS
This year, Visit San Luis Obispo continued a promotion that began in FY 21-22 to drive midweek stays. The MidWeekend supports the strategic imperative to Deliver Smart Growth, as well as aligns with the destination stewardship and sustainability efforts by encouraging travel outside peak periods..

The MidWeekend
In the winter of 2024, the MidWeekend promotional campaign returned to help drive midweek stays in San Luis Obispo. From February 1 to March 31, 2024, visitors were offered $100 cash when they booked two nights between Sunday and Thursday. The promotional campaign was integrated into the existing paid media plan with a focus on reaching our outdoor, relaxation, wine and dine and remarketing audiences to send potential travelers to the MidWeekend landing page to get direct access to information on the special offer. In total, 216 visitors took advantage of the promotion, resulting in 531 total room nights and more than $93,000 in revenue across 33 of SLO’s 42 lodging properties.

SLO TBID Annual Report 2023-24 19

GUEST SERVICES
Through a dedicated contract with the Visit San Luis Obispo, the San Luis Obispo Chamber of Commerce provides a suite of guest services to Visit San Luis Obispo. In FY 23-24, the SLO Chamber Visitor Center was contracted to answer each call made to Visit San Luis Obispo 1-877-SLO-TOWN number, which serves as a response tool to Visit San Luis Obispo’s advertising efforts and digital presence. This creates the option for a “real person” to assist in trip planning, ensuring that travelers seeking personal guidance have a friendly, live voice to shape their experience of San Luis Obispo before even arriving. The telephone number, 1-877-SLO-TOWN, is a separate line that rings in the Chamber and is used solely to refer Visit San Luis Obispo properties and promote San Luis Obispo as a destination. During FY 23-24, nearly 500 calls were answered on the 1-877-SLO-TOWN line. The Guest Services also included the Live Chat widget on VisitSLO.com which received hundreds of conversations throughout the year

SLO TBID Annual Report 2023-24 20
EVENTS
In FY 23-24, destination events continued to return to San Luis Obispo and the TBID Board considered the funding for these events on a case-by-case basis using the general application established in FY 19-20.

Events Sponsored:
• SLO COAST WINE COLLECTIVE, HARVEST ON THE COAST - NOVEMBER 4, 2023 For the first time in more than a decade, Harvest on the Coast was held in Edna Valley, SLO’s wine region. The previous 11 years SLO Coast Wine Collective’s signature event had been held in Avila Beach. Visit San Luis Obispo supported the event with funding as its exclusive lodging partner as well as with marketing and advertising support leading up to the event. Additionally, any guests staying in a SLO lodging property received complimentary early access to a VIP tasting prior to the main event. • VINEYARD TEAM, SUSTAINABLE AG EXPO – NOVEMBER 13-15, 2023 The Sustainable Ag Expo was a three-day, mid-week, off-season educational symposium and tradeshow attracting over 500 wine industry professionals to San Luis Obispo. The Expo in 2023 marked the 18th year of the event. Visit San Luis Obispo supported this event with cash sponsorship for industry-specific promotion and funding to support lodging for speakers and presenters.
• MISSION COLLEGE PREP HIGH SCHOOL, MISSION PREP CHRISTMAS CLASSIC, DECEMBER 19-22, 2023 The Mission Prep Christmas Classic is a four-day premier California High School Basketball tournament featuring some of the best high school basketball players from the state and beyond. The event draws a majority of out-of-area attendees and livestreams to thousands more. Visit San Luis Obispo was the exclusive lodging partner and supported the event with funding to host teams in SLO properties.
• SLO INTERNATIONAL FILM FESTIVAL, 30TH FESTIVAL– APRIL 25-30, 2024 The 30th San Luis Obispo International Film Festival hosted a six-day event and screened over 100 films throughout the week. The event featured a VIP Festival Lounge, Red Carpet events, live music, educational conversations with filmmakers and industry leaders and capstone events each night that brought the community together to celebrate the arts and expose our audience to important topics around the world. Visit San Luis Obispo supported the festival in various promotional ways including funding and managing the out-of-area paid media campaign, funding to provide lodging for filmmakers, media and industry professionals and promoting a complimentary See + Stay film fest package in exchange for overnight reservations. • GALA PRIDE & DIVERSITY CENTER, PRIDE AND CULTURAL PROGRAM - YEAR ROUND Gala Pride and Diversity Center celebrated 30 years in 2024 and turned the success of their signature event, Central Coast Pride, into an ongoing Pride and Cultural Program. Visit San Luis Obispo invested as a legacy partner supporting not only the three-day kick-off Pride celebration which was held at venues throughout SLO like the Fremont Theater, Meadow Park and at Mission Plaza for PRIDE in the Plaza, but year-round programming. As part of the partnership, Visit San Luis Obispo funded and managed the out-of-area paid media campaign for Central Coast Pride, remains Gala’s exclusive lodging partner and continues to partner on overall cross-promotional efforts.

In addition, the Visit San Luis Obispo continued participating in the multi-jurisdictional working group of 18 destination partners, event organizers and community leaders convened by Visit SLO CAL to provide input and guidance for the Events & Festivals Strategy. The Events & Festivals Working Group (EFWG) was pivotal in the development of the SLO CAL Events & Festivals strategy and alignment to drive new countywide visitation, to achieve incremental growth in the economic impact of tourism and enhance residents’ quality of life. The project work focused on creating a strategy for existing and future events that attract overnight visitors to the county, more efficiently utilize off-peak periods, drive collaboration and/or pairing of events for a positive economic outcome for SLO CAL and

SLO TBID Annual Report 2023-24 21

STRATEGIC PARTNERSHIPS
Visit San Luis Obispo collaborates with numerous community partners and industry nonprofit organizations in marketing San Luis Obispo as a destination, which makes the TBID more efficient in promotional activities. Visit San Luis Obispo’s strategic partnerships provide the opportunity for the marketing agencies and team to build relationships with the organizations below, elevating the destination as a whole. Promotional opportunities with each organization give Visit San Luis Obispo new platforms and audiences to build brand awareness.

In April of 2024, Visit San Luis Obispo officially launched a new partnership with Kind Traveler, a responsible travel platform that empowers travelers to create positive change in the communities they visit. Through their Every Stay Gives Back Program, Visit San Luis Obispo has been able to showcase its Keys for Trees initiative and appeal directly to sustainably minded travelers within Kind Traveler’s network.

In FY 23-24, the partnerships with Cal Poly continued to be essential to making a first and lasting impression of San Luis Obispo to supporters and their students. The partnership with Cal Poly’s Office of Student Affairs was extremely valuable this year with SLO Days, where during thirteen separate 45-minute long presentations about discovering San Luis Obispo, the team is able to connect with thousands of new Cal Poly Parents and Supporters. In addition to SLO Days, Visit San Luis Obispo has a presence on campus during Mustang Family Weekend and Open House.

The TBID also continued the partnership with Cal Poly Athletics and Mustang Sports. This partnership included the sponsorship of the athletic program in exchange for marketing benefits and the hosting of the rooms using the sponsorship fee in SLO TBID properties. .

Top partnerships included:
• Cal Poly’s Office of Student Affairs – New Student & Transition Programs and Parent Program • Cal Poly Athletics – Mustang Sports
• Kind Traveler
• ECOSLO with Keys for Trees
• SLO Coast Wine Collective
• Gala Pride & Diversity Center

SLO TBID Annual Report 2023-24 22

INDUSTRY RELATIONS

CALIFORNIA HOTEL & LODGING ASSOCIATION (CHLA)
The California Hotel & Lodging Association (CHLA) protects the rights and interests of the California lodging industry. Legislative advocacy, educational training, communication and cost-saving programs are provided for all segments of the industry. Through the TBID, all lodging properties in the City of SLO are members of CHLA and can utilize the services offered. This year, CHLA attended the second Visit San Luis Obispo Partner Reception presenting statewide legislative updates.

VISIT CALIFORNIA
The Visit California partnership has been critical in the growth of Visit San Luis Obispo’s brand within the California Tourism product.

SLO has received coverage through the marketing activities performed by Visit California including travel trade, press and industry outreach. Monthly submissions are uploaded to Visit California for media leads, trade contacts and newsletter content.

CENTRAL COAST TOURISM COUNCIL
The Central Coast Tourism Council (CCTC) is an organization of tourism and hospitality professionals whose marketing efforts accomplish collectively what no single tourism entity can do alone — promote the entire California Central Coast as a destination and maximize our members’ tourism revenue. The CCTC serves as the Central Coast's voice in Sacramento and partners with California Tourism's global marketing and advertising campaigns. The TBID is actively involved in CCTC with a seat on the board from staff and the SLO Chamber public relations representative on the PR committee.

VISIT SLO CAL
The TBID maintains participation with Visit SLO CAL by having a representative on the Board of Directors and the Economic Development & Tourism Manager on the Marketing Committee. The TBID Board leverages the partnership with Visit SLO CAL to promote San Luis Obispo on a national and international level — beyond the local and state reach the TBID’s marketing plan focuses to achieve. The TBID’s participation in Visit SLO CAL also encompasses group sales, film commission, countywide public relations and countywide strategic planning like the SLO CAL Events & Festivals Strategy.

SLO TBID Annual Report 2023-24 23
2022-23 AWARDS & ACCOLADES
Through the work of Noble Studios, the TBID received multiple awards for integrated campaign and brand book development.

AAF RENO ADDY
Silver - Specialty Advertising / Merchandise

HSMAI ADRIAN AWARD
Bronze - Environmental, Social, Governance (Sustainable SLO)

AAF RENO ADDY
Silver - User Experience

HSMAI ADRIAN AWARD
Bronze - Digital Website

HSMAI ADRIAN AWARD
Bronze - Brand Campaign
FINALIST IN THE 2024
ETSY AWARDS IN THREE CATEGORIES:
• Best Email Marketing Campaign
• Best Website
• Best Use of Sustainability and Social
Responsibility (Sustainable SLO)

SLO TBID Annual Report 2023-24 24
2023-24 FINANCIAL STATEMENT
INCOME SOURCE 2023-24
2023-24 TOT Revenue Assumption * $10,704,000
2023-24 TBID Assessment Revenue Assumption * $2,140,800 Fund Balance Transfer
Fund Reserve $200,000
2023-24 TBID Program Budget $2,140,800

EXPENDITURE ALLOCATED
Operations/Staffing
Administration Overhead (2% of TBID Assessment) $42,816 Staffing (FTE & .75 FTE)
Staffing Contingency
$276,698
$276,698
Contracts & Marketing Services
Marketing Contract - Noble Studios/DCI $1,000,000
Chamber of Commerce - PR $50,000
Chamber of Commerce - Guest Services $51,975
Chamber of Commerce - Media Monitoring Service Fee $3,713 Co-op Marketing Program Funding $45,000
Content Marketing Services - Badger Branding $87,800
Partnerships & Promotions
Cal Poly Athletics $65,000
EcoSLO - Sustainability Initiative $21,408
SLO Coast Wine Collective Membership $4,500
Events & Promotions
General Events Promotion $100,000
Event Activation + Collateral $40,000
Seasonal Promotion $25,000
Tradeshows
Tradeshows $25,000
Tourism Conferences $8,000
Tourism Organizations
CCTC Dues $1,000
Smith Travel Report $3,629
CalTravel Membership $1,000
California Hotel & Lodging Association $30,000
Research + Program
Research + Program Development $160,000
Support / Meetings
Tourism Program Expenses $7,500
FAM Trip Hosting $8,000
Services/Online Tools/ Fulfillment (Dropbox, Crowdiff, Survey Monkey) $15,000 Contingency
Contingency Fund $29,000
Totals Commited $2,140,341
Funds Remaining
Total Allocated Expenditures **
* This figure was not adjusted within the TBID operating program budget following the Adopted Supplement Budget ** This figure represents the total allocated expenditures. The difference will be available for carryover to the 2022-23 program budget.

SLO TBID Annual Report 2023-24 25

LOOKING AHEAD
As the TBID moves into FY 24-25, the key focus areas that remain top of mind for the work of the Board in the next fiscal year:
• Updating the TBID Strategic Plan for 2025-2030, setting the tone and tenor for Visit San Luis Obispo’s impact. • Developing the next evolution of Visit San Luis Obispo’s brand campaign with “the SLO Life Coach.” • Expanding Destination Stewardship through Sustainable SLO and Visit San Luis Obispo’s commitment to fostering a thriving and balanced tourism economy.
• Continuing a thoughtful and intentional approach to Diversity, Equity and Inclusion across all TBID programs emphasizing the new opportunity utilizing TBID’s new public relations agency, Uniquely Driven and their network and expertise.

While these are not the only subjects that the TBID Board will be focused on, these four areas will require a significant amount of dedication as Visit San Luis Obispo works toward successful implementation of each.

Additionally, the TBID Board will implement the defined imperatives from the recently updated 2024-26 Strategic Marketing & Business Plan. In alignment and building off the forthcoming 2025-2030 Strategic Plan, the two-year marketing plan is truly a guide for the overarching marketing initiatives for Visit San Luis Obispo, and also the individual tactics and specific efforts that will help achieve them.

LOOKING AHEAD

SLO TBID Annual Report 2023-24 26

APPENDIX
TOT CHART FOR 2023-24
TOT DISTRIBUTION FOR 2023-24
12,000,000
6,000,000
4,000,000
$615,972.30
$10,031,635.32
0 2009-10 2010-11 2011-12 2012-13 2013-14 2013-14 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22 Homestay Hotel
2022-23 2023-24

SLO TBID Annual Report 2023-24 27
TOT MONTH TO MONTH 2023-24
2,000,000
1,000,000
500,000
0 July Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar. Apr. May June

OCC MONTH TO MONTH
80+
0 2021-22 2022-23 2023-24
July Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar. Apr. May June 40

28 ADR MONTH TO MONTH
SLO TBID Annual Report 2023-24
190+
120
2021-22 2022-23 2023-24
July Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar. Apr. May June 150

REVPAR MONTH TO MONTH
190+
120
(Revenue $)
150
90 0
2018-19 2019-20 2020-21
July Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar. Apr. May June

SLO TBID Annual Report 2023-24 29
SLO TBID STRATEGIC IMPERATIVES - FY 19-24

IMPERATIVE OBJECTIVES INITIATIVES
Elevate the
SLO Brand and
Experience
• Increase visitor
awareness in target
markets
• Increase positive
visitor perception
PRIORITY 1:
• Integrate the City’s priorities into the execution of the TBID’s marketing strategies
• Identify the core SLO identity and develop a plan to market it PRIORITY 2:
• Develop a TBID Destination Stewardship approach
PRIORITY 3:
• Identify opportunities to influence community placemaking and destination management efforts
Deliver Smart
Growth
• Exceed California’s
RevPAR growth over
FY21 baseline
• Year-over-year
growth in ratio of
weekday to weekend
occupancy
PRIORITY 1:
• Develop an approach to monitoring local sentiment related to tourism PRIORITY 2:
• Influence the SLO conference center development plan and effort • Identify structure and budget allocation for midweek and group business
PRIORITY 3:
• Develop a local business travel program to drive visitation Build Meaningful
Partnerships
• Increase average
Earned Partnership
Value score over
2022 baseline
• Grow economic
impact of tourism in
SLO by 2024, over
2017 baseline
PRIORITY 3:
• Identify and develop BOLD partnerships that generate overnight stays
• Create a partnership management plan using measurable goals that are in line with our TBID mission
Ensure
Organizational
Excellence
• Growth in member
newsletter open rates
• Growth in
stakeholder
satisfaction score on
survey
PRIORITY 1:
• Establish and document a process to execute, evaluate and track strategic plan
PRIORITY 2:
• Identify opportunities to streamline governance and leverage constituency of TBID
Foster
Destination
Resilience
• Year-over-year
growth in TOT over
FY21 baseline
PRIORITY 1:
• Implement COVID-19 Response Plan
PRIORITY 2:
• Document lessons learned from COVID era to feed resilience assessment
PRIORITY 3:
• Perform a destination resilience assessment

SLO TBID Annual Report 2023-24 30 Page 136 of 265
R _____
RESOLUTION NO. ______ (2024 SERIES)

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

OBISPO, CALIFORNIA, DECLARING ITS INTENTION TO CONTINUE

THE SAN LUIS OBISPO TOURISM BUSINESS IMPROVEMENT

DISTRICT, TO CONTINUE THE BASIS FOR AND TO LEVY THE

ASSESSMENT FOR THE DISTRICT, AND TO SET A DATE FOR THE

PUBLIC HEARING ON THE DISTRICT AND THE ASSESSMENT FOR
2024-25
WHEREAS, the Parking and Business Improvement Law of 1989, sections 36500 et seq. of the Streets and Highways Code, authorizes cities to establish business improvement districts for several purposes, one of which is promotion of tourism; and WHEREAS, the lodging businesses within the proposed City of San Luis Obispo Tourism Business Improvement District had requested the City of San Luis Obispo establish such a self-assessment improvement district in 2008; and WHEREAS, the San Luis Obispo Tourism Business Improvement District was established in July 2008 and incorporated into the Municipal Code under Chapter 12.42; and
WHEREAS, the assessment went into effect on October 1, 2008; and WHEREAS, the City Council appointed an advisory board to provide oversight, guidance, and recommendations regarding the use of the assessment funds; and WHEREAS, the City Municipal Code and the Parking and Business Improvement Law require the advisory board to prepare and submit an annual report stating proposed changes, improvements and activities for the fiscal year; and WHEREAS, an annual report was prepared pursuant to Section 36533 of the Streets and Highway Code; and
WHEREAS, notices regarding the approval of the annual report were sent on September 19, 2024 to all assessed properties.

NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of San Luis Obispo as follows:
a) That the Tourism Business Improvement District Annual Report for fiscal year 2023-24 as filed by the advisory body is hereby approved.

Resolution No. _____ (2024 Series) Page 2
R ______
b) The San Luis Obispo City Council proposes to continue the established Tourism Business Improvement District in the City of San Luis Obispo in accordance with City Municipal Code Chapter 12.42 and the California Streets and Highways Code, sections 36500 et seq. (Parking and Business Improvement Law of 1989).
c) The assessment levied by the Tourism Business Improvement District shall be used to promote lodging at the hotels within the district and administer a marketing program that increases overnight hotel stays pursuant to the set goals.
d) The assessment will be levied and allocated by the City of San Luis Obispo. e) The assessment is proposed to be levied on all “hotels”, as that term is defined in San Luis Obispo Municipal Code section 3.04.020, to wit: any structure, or any portion of any structure, which is occupied or intended or designed for occupancy by transients for dwelling, lodging or sleeping purposes, and includes any hotel, inn, tourist home or house, motel, studio hotel, bachelor hotel, lodging house, rooming house, apartment house, dormitory, public or private club, mobile home or house trailer at a fixed location, or other similar structure or portion thereof.
f) The assessment shall be based on two percent (2%) of gross room rent. g) New hotels shall not be exempt from immediate assessment. h) The public hearing, held pursuant to the City Municipal Code Chapter 12.42 and the Parking and Business Improvement Law of 1989, section 36535 of the Streets and Highways Code, is to allow for comments on the District and proposed assessment, and is hereby set for 5:30 P.M., Tuesday, October 15, 2024, before the City Council of San Luis Obispo.
i) At the public hearing, the testimony of all interested persons for or against the continuation of the District, the boundaries of the District, or the furnishing of specified types of improvements or activities will be heard. j) Any protest against the continuation of the City of San Luis Obispo Tourism Business Improvement District and the levying of the assessment, or any aspect thereof, may be made in writing. A protest may be withdrawn at any time before the conclusion of the public hearing. Any written protest shall contain a description of the business in which the person signing the protest is not shown on the official records of the City of San Luis Obispo as the owner of the business, then the protest shall contain or be accompanied by written evidence that the person is the owner of the authorized representative of the business.

Any protest as to the regularity or evidence of the proceedings shall be in writing and clearly state the irregularity or defect to the City of San Luis Obispo at 990 Palm Street, San Luis Obispo, CA 93401.

Resolution No. _____ (2024 Series) Page 3
R ______
k) If, at the conclusion of the public hearing, there are of record, written protests by the owners of businesses within the proposed San Luis Obispo Tourism Business Improvement District that will pay fifty percent (50%) or more of the total assessments of the entire San Luis Obispo Tourism Business Improvement District, no further proceedings to continue the San Luis Obispo Tourism Business Improvement District shall occur. New proceedings to form the San Luis Obispo Tourism Business Improvement District shall not be undertaken again for a period of at least one (1) year from the date of the finding. If the majority of written protests are only as to an improvement or activity proposed, then that type of improvement or activity shall not be included in the San Luis Obispo Tourism Improvement District.

Resolution No. _____ (2024 Series) Page 4
R ______
BE IT FURTHER THEREFORE RESOLVED, the City Clerk is instructed to provide notice as required by the City Municipal Code Chapter 12.42 and the Parking and Business Improvement Law of 1989, section 36534, subpart (a)(7) of the Streets and Highways Code, to wit: the City Clerk shall give notice of the public hearing by causing the resolution of intention to be published once in a newspaper of general circulation in the City no less than seven days before the public hearing.

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

AYES:

NOES:

ABSENT:

The foregoing resolution was adopted this _____ day of _____________________ 2024. ___________________________
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

1 Tourism Business Improvement District Board Minutes
September 4, 2024, 10:00 a.m.

City Hall, 990 Palm Street, San Luis Obispo
TBID Board Present: Member Winston Newland, Member Nipool Patel, Member Prashant Patel, Member Sandy Sandoval, Vice Chair Clint Pearce, Chair Lydia Bates
TBID Board Absent: Member Lori Keller
City Staff Present: Economic Development & Tourism Manager Molly Cano, Tourism & Community Promotions Manager Jacqui ClarkCharlesworth _____________________________________________________________________

1. CALL TO ORDER
A Special Meeting of the San Luis Obispo Tourism Business Improvement District Board was called to order on September 4, 2024 at 10:03 a.m. in the Council Hearing Room at City Hall, 990 Palm Street, San Luis Obispo, by Chair Bates.

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

None
--End of Public Comment--

3. BUSINESS ITEMS

3.a FY 23-24 TBID ANNUAL REPORT APPROVAL (15 MIN)
Economic Development & Tourism Manager Molly Cano presented the staff report and responded to inquiries.

Public Comment:

None
--End of Public Comment--
Motion By Member Sandoval
Second By Member Nipool Patel

2 To approve the 2023-24 TBID Annual Report.

Ayes (6): Member Newland, Member Nipool Patel, Member Patel, Member Sandoval, Vice Chair Pearce, and Chair Bates
Absent (1): Member Keller
CARRIED (6 to 0)

3.b STRATEGIC MARKETING & BUSINESS PLAN APPROVAL (15 MIN) Tourism & Community Promotions Manager Jacqui Clark-Charlesworth presented the staff report and responded to inquiries.

Public Comment:

None
--End of Public Comment--
Motion By Vice Chair Pearce
Second By Member Newland
To approve the marketing and business plan for 2024-26.

Ayes (6): Member Newland, Member Nipool Patel, Member Patel, Member Sandoval, Vice Chair Pearce, and Chair Bates
Absent (1): Member Keller
CARRIED (6 to 0)

3.c FY 2024-25 MEDIA PLAN REVIEW AND APPROVAL (25 MIN)
Hayley Corbett and Danni Winter of Noble Studios presented the FY 2024- 25 media plan and rollover budget from FY2023-24 for the Board’s review and approval.

Public Comment:

None
--End of Public Comment--
Motion By Member Sandoval
Second By Member Nipool Patel
To approve the media plan and roll over the remaining balance of $11,994.25 from FY 23-24 to FY 24-25’s paid media budget.

3 Ayes (6): Member Newland, Member Nipool Patel, Member Patel, Member Sandoval, Vice Chair Pearce, and Chair Bates
Absent (1): Member Keller
CARRIED (6 to 0)

3.d STRATEGIC PLAN CONSULTANT APPROVAL (15 MIN)
Tourism & Community Promotions Manager Jacqui Clark-Charlesworth presented the staff report and responded to inquiries.

Public Comment:

None
--End of Public Comment--
Motion By Member Sandoval
Second By Member Nipool Patel
To approve the consultant of Whereabout for the TBID’s 2025-2030 Strategic Plan.

Ayes (6): Member Newland, Member Nipool Patel, Member Patel, Member Sandoval, Vice Chair Pearce, and Chair Bates
Absent (1): Member Keller
CARRIED (6 to 0)

3.e BUDGET UPDATES (10 MIN)
Tourism & Community Promotions Manager Jacqui Clark-Charlesworth presented the staff report and responded to inquiries.

Public Comment:

None
--End of Public Comment--
Motion By Member Nipool Patel
Second By Vice Chair Pearce
To approved staff's recommendation to replenish the FAM Trip Hosting Budget in an amount up to $7,500 from available fund balance and to approve up to $3,500 from the Event Activation + Collateral to create Visit

4 SLO branded socks to be distributed to Spartan Race attendees at the onsite activation.

Ayes (6): Member Newland, Member Nipool Patel, Member Patel, Member Sandoval, Vice Chair Pearce, and Chair Bates
Absent (1): Member Keller
CARRIED (6 to 0)

4. ADJOURNMENT
The meeting was adjourned at 11:25 a.m. The next Regular Meeting of the Tourism Business Improvement District Board is scheduled for October 9, 2024 at 10:00 a.m. in the Council Hearing Room at City Hall, 990 Palm Street, San Luis Obispo.
_________________________
APPROVED BY TOURISM BUSINESS IMPROVEMENT DISTRICT BOARD:

XX/XX/202X

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Department: Administration
Cost Center: 1004
For Agenda of: 10/1/2024
Placement: Business
Estimated Time: 20 minutes
FROM: Greg Hermann, Deputy City Manager
Prepared By: Molly Cano, Economic Development & Tourism Manager; McKenzie Taffe, Economic Development Analyst
SUBJECT: UPDATE ON IMPLEMENTATION OF THE ECONOMIC DEVELOPMENT

STRATEGIC PLAN

RECOMMENDATION
Receive and file the annual update on the implementation status of the Economic Development Strategic Plan (EDSP).

POLICY CONTEXT
The City’s 2023-25 Financial Plan Major City Goal (MCG) for Economic Resiliency, Cultural Vitality and Fiscal Sustainability includes the direction to staff to 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. Based on the adoption of the Economic Development Strategic Plan (EDSP) by City Council on July 18, 2023, staff began work on MCG task 1.1.a. to implement relevant actions in the updated EDSP focusing on those relevant to Economic Resiliency, Cultural Vitality and Fiscal Sustainability.

Additionally, the City’s General Plan Land Use Element, Chapter 1: Society and Economy, outlines that “San Luis Obispo should be a well-balanced community.

Environmental, social, and economic factors must be taken into account in important decisions about San Luis Obispo's future. A healthy economy depends on a healthy environment. The social fabric of the community for both residents and visitors must also be a part of that balance. Therefore, complementary to the goals and objectives of this element, the City shall maintain and bi-annually review goals and objectives that promote the economic well-being of the community.”

REPORT-IN-BRIEF
Since the development of the Economic Development program in the City of San Luis Obispo in 1996, a number of Economic Development strategic plans have been created and implemented based on the relevant needs of the community at that specific point in time. In July 2023, the City Council approved the update to the EDSP and since that time

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staff has been implementing the work program in accordance with the corresponding implementation matrix (Attachment A). The EDSP is organized into three pillar areas: (1) Business and Entrepreneur Vitality; (2) Placemaking and Promotion; and (3) Talent Development and Attraction. The comprehensive EDSP implementation matrix is included as Attachment A to this report for reference to all completed work in alignment with the work progress of the EDSP. As reflected on the implementation matrix, all the initiatives outlined in the work plan for FY 24 are completed or in progress.

DISCUSSION
Background
The City’s Economic Development Program was established in 1996. The original focus of the program was the generation of revenue, primarily through increasing sales tax and Transient Occupancy Tax (TOT). The economic challenges of 2008-2010 created additional focus on the City’s role in economic development. As a result of this focus, the City Council approved the first EDSP in 2012. The primary objective of that plan was focusing on a system to create Head of Household (HOH) jobs, now referred to as Moderate Income Plus Jobs. Then in 2015, the original EDSP received a minor update to redirect the focus to property development in conjunction with the update of the Land Use and Circulation Element of the City’s General Plan. After 2015, an update the EDSP was recommended every five years to ensure that the work of the newly titled “Economic Development and Tourism Program” remained relevant and consistent with the goals of the community. The next update was originally planned in the 2019-20 fiscal year, but due to the pandemic was delayed to fiscal year 2022-23 and was subsequently approved by the City Council in July 2023.

In the updated 2023 EDSP, the plan advanced into a framework designed to respond to the changes that occurred in the intervening years, both in terms of the City’s internal efforts and the external economic development landscape. These changes include the effects of the economic and social changes resulting from the COVID-19 pandemic; the increasing economic threats posed by the climate crisis and the related economic opportunities created by the transition to a clean energy economy; and the growing attention and value being placed on diversity, equity, and inclusion (DEI) across the economic development community. The program also evolved into the Office of Economic Development & Tourism (Office of ED&T), bringing more alignment between the economic development and community promotion work for and in the City.

Current Economic Development Strategic Plan
The EDSP framework contains three sections: the mission statement, guiding principles, and major pillars. The mission statement is the primary foundational element of the plan as it sets the tone, provides direction, and informs the development of the strategies in the sections that follow. The guiding principles reflect the impact of the changes outlined above. Guiding principles shape the direction of the plan and are interwoven throughout the strategies and actions. The guiding principles are:

Item 7b

1. Economic Resilience. Maintaining a dynamic economic and business environment.

2. Equitable and Inclusive Economic Development. Expanding economic opportunities for all residents and businesses in San Luis Obispo.

3. Sustainable Economic Development. Ensuring economic vitality through climateand system-focused sustainable growth.

4. Holistic Approach. Enhancing internal and external collaboration for effective execution and implementation.

5. Regional Collaboration. Expanding partnerships with organizations across the region.

Finally, the major pillars are the broad focus areas that underpin the overall strategy. The pillars are streamlined and refined to three areas:

1. Business and Entrepreneur Vitality: Improving the local business environment and helping entrepreneurs to thrive, adapt, innovate, and grow in the face of challenges and opportunities.

2. Placemaking and Promotion: Maintaining the City’s quality of place while increasing awareness of local amenities and fostering a sense of inclusion among residents and visitors.

3. Talent Development and Attraction: Supporting initiatives that develop the skills needed to secure quality jobs as well as attract and retain a skilled and diverse workforce.

The EDSP then expands each of the three major pillars into robust action plan that outlines initiatives that make up the EDSP detailed work plan. Additionally, given the timing with the Major City Goal process for the 2023-25 Financial Plan, all strategies and actions related to the Economic Resiliency, Cultural Vitality and Fiscal Sustainability MCG work plan were integrated into the action plan. In total the EDSP outlines 121 priority initiatives for implementation.

With the plan established, the implementation of the EDSP is paramount in continuing to advance the economic vitality of the City. Successful implementation of the plan encourages job creation, support for infrastructure developments, public-private and public-public partnerships, and business retention and expansion. A five-year implementation matrix was created to guide City staff and community partners in realizing the outlined recommendations. The implementation matrix includes detailed strategies, staff roles and responsibilities, potential partnerships, a timeframe for implementation, and metrics for measuring success. The implementation matrix is similar in format to the Major City Goal work plans. The matrix is designed to be a flexible, ever-evolving tool for tracking progress toward realization of the plan. While it is intended to serve as a guide for implementation, the document is meant to be updated with changes to realized timelines, key accomplishments or as other aspects of the plan as it evolves.

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Additionally, the Office of ED&T has operationalized many of the metrics that are used to track the impact of the work being implemented. These measurements are available on the City’s website where applicable and maintained on a consistent basis. The Office of ED&T updates the implementation matrix quarterly and posts the updated version to the City’s website. As described at the time of the EDSP adoption, staff will continue to update the City Council in the fall of each year in conjunction with the annual report from the Tourism Business Improvement District (TBID), for a comprehensive update from the Office of Economic Development & Tourism.

Implementation and Key Accomplishments
Implementation of the EDSP is an ongoing process and staff continues to adapt to emerging needs, constraints, and opportunities to address economic development in the City. To address the 121 individual priority initiatives outlined between the three major pillars of the EDSP for the 5-year plan, in FY 23-24 staff has focused on the first-year priorities for implementation. These priorities are identified within the implementation matrix timeline column under the heading “FY24” along the corresponding quarter in which the work effort was underway by staff. Since fiscal year 2023-24 was the first year of the plan, all the initiatives identified within the time “Ongoing” column were also addressed in the first year as priorities as well, along with actions related to the Economic Resiliency, Cultural Vitality and Fiscal Sustainability MCG. In total 86 of the 121 individual priority initiatives were addressed within the first year of the plan’s implementation, including 77 Ongoing tasks and 9 FY24 tasks.

When considering the implementation and key accomplishments of those priority initiatives in FY 23-24, the work is best described with the three pillar areas: (1) Business and Entrepreneur Vitality; (2) Placemaking and Promotion; and (3) Talent Development and Attraction. The comprehensive summary of the key accomplishments for each of the priority initiatives addressed in FY 23-24 are outlined on the EDSP implementation matrix included as Attachment A to this report. Select key accomplishments within each pillar, however, have been highlighted below to showcase focused areas of achievement for the EDSP this fiscal year.

Pillar 1. Business and Entrepreneur Vitality
Improving the local business environment and helping entrepreneurs to thrive, adapt, innovate, and grow in the face of challenges and opportunities.

Key Accomplishments Include:
 Implementation of business communication and outreach activities that proactively communicate with the business community on a regular basis as it relates to important economic development programs, opportunities, and activities. (1.1.2)
o A total of 28 business emails were sent to approximately 8,000 local business owners during FY 23-24.

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 Expand business outreach efforts with a formal business retention and expansion program that assists new and existing businesses, monitors employer trends, and pinpoints enterprises and sectors that require support. (1.1.3)
o Over 100 businesses were supported through retention and expansion efforts. Approximately 30 were new businesses and nearly 70 were existing businesses. Assistance provided to these businesses included business resource referrals, site selection, building and planning permit guidance, and assistance with other government agencies. o Staff established and documented standard operating procedures for monitoring employer and consumer trends utilizing data commissioned and prepared by a contractor on a quarterly and semi-annual basis which will be used to established guidelines for more formalized programs.
 Establish a business welcome program that provides support to new businesses. This can include everything from welcome materials, business visits and training, and support. The appropriate partners can be included in this process where relevant.
o Proactive outreach to new businesses focused on business visits after openings and support through the City processes. Trainings were also provided by strategic partners (Cal Poly, SBDC, SCORE, etc.) through sponsorship funding by the City.
o Staff has researched best practices for a business welcome program and is currently developing program materials including cross departmental resource checklists that will be made available online and for delivery during in-person business visits. Expected completion of the materials is in Q3 of FY25.
 Maintain and build on the efforts with the Cal Poly CIE (CIE), which includes the Hothouse and other activities, to help ensure its continued success and the success of the local entrepreneurs it supports. (1.2.2) o One specific accomplishment was the support provided for Angel Con where startup companies Mense and Nexstera Tech were the winners of the 7th annual AngelCon Pitch Competition, which raised a total of $215,000 from 21 investors.
 Supported organizations like the SBDC, the Service Corps of Retired Executives (SCORE), and Softec to address the needs of both startup and existing businesses. (1.2.4)
o According to the SBDC Consulting Services for the period June 1, 2023, to May 31, 2024, the Cal Poly CIE SBDC counseled 485 clients; totaling 3,797 hours of counseling (not including 4,450 Cal Poly student project counseling hours - nearly double compared to the last reporting period).

Through the SBDC, 14 businesses started, 127 jobs were created, and $1,708,494 of capital was secured regionally.

Item 7b
 Execution of ongoing Support Local campaigns to support the small business community to sustain growth. (1.4.1)
o Buy Local Bonus during the holiday season resulted in nearly 8,000 qualified receipts that were submitted by shoppers during the program totaling $818,547 in local spending. When added with the City’s investment, the total direct local spending was $943,547. o Eat Local Bonus in January resulted in $255,660 total local spending based on submitted receipts. While the results were significant, the real spotlight in January was the new program SLO Restaurant Week. The first-ever SLO Restaurant Week took place from January 12-21, 2024 and included 41 restaurants that signed up to take part and offer a "Perfect Pairing”. More than 1,000 diners participated during the "10 Delicious Days" and participants in the program, both businesses and diners, have requested a more robust program in 2025.
 Inclusive business practices were encouraged and promoted Citywide this fiscal year by capturing and showcasing best practices discovered from the DEI Business Grant program. Staff from the Office of DEI and ED&T collaborated to support seven of the DEI SLO Business Grant recipients to discuss their experience with the grant and the community impact. To highlight the learnings, a symposium is in development to share best practices for diversity, equity, and inclusion in business. (1.4.4) Pillar 2. Placemaking and Promotion
Maintaining the City’s quality of place while increasing awareness of local amenities and fostering a sense of inclusion among residents and visitors.

Key Accomplishments Include:
 Continued elevation of the unique identity of each business neighborhood to increase awareness of amenities beyond the Downtown core. (2.1.4) Develop and promote an identity for each business neighborhood that reflects its culture and history. (2.1.4.1)
o This effort is in partnership with the City’s Promotional Coordinating Committee (PCC). Along with the launch of the new VisitSLO.com, in FY 23-24 the “Neighborhood” section of the site was launched including interactive map, unique storytelling opportunities to highlight the unique businesses and commerce options across the nine business neighborhoods of SLO, and supported with creative assets like videos, logos and blogs that were created.
o Additionally, a strategic consultant has been commissioned and a study is underway to evaluate best practices to guide the implementation of the business neighborhood identity project. The study is expected to be completed by Q3 of FY25 for PCC continued assessment and implementation.

Item 7b
 A refresh to the conference center feasibility study was commissioned in FY 23-24 including the addition of new sites that were studied. The study is in the final review and is expected to be published on the City’s website before the end of the calendar year. (2.3.3)
 In Q4 of FY24, Staff prepared a comprehensive review of the status of Downtown vibrancy including considerations for addressing vacancies and other economic opportunities. This effort resulted in Staff’s support of business expansion, addressing two large downtown vacancies. (2.3.6)  Together with community partners, the cultural vitality of the City was recognized and celebrated in a number of new programs including ARTober, Piano in the Plaza, and the Lunar New Year celebration and 150th anniversary of the Ah Louis Store in the historic Chinatown which welcomed thousands of residents and visitors. (2.4.6)
Pillar 3. Talent Development and Attraction
Supporting initiatives that develop the skills needed to secure quality jobs as well as attract and retain a skilled and diverse workforce.

Key Accomplishments Include:
 Updates continued to be made on the employment scorecard and the economic activity scorecard published on the City’s website on a frequent and consistent basis. These important data sources educate and inform the City, community and prospective businesses and workforce. (3.1.1)  The City continued to support new and expanded private childcare options through the use of grant funding and other programs. As of July 2024, the grant has created 11 newly licensed businesses and 116 slots for children, with 8 applicants pending licensure with potential to create an additional 92 slots. (3.1.7)
 Ongoing collaboration continued with the Chamber on initiatives like the SLO Onboarding Assistance Resource (SOAR) program that help to attract and retain talent. The SOAR program has aided more than 440 relocating employees since October 2022 when the pilot program launched. The top three areas of assistance have been social connections, housing search assistance, and partner employment opportunities. As the program evolves from the pilot into an evergreen program, staff will continue to elevate collaboration. (3.2.3)
Next Steps
Over the first year of the EDSP implementation, significant progress has been made on the work program and initiatives within the action plan. Many of the priority initiatives, including those that were started in FY24, will continue to be further developed in subsequent years. Elevated programs, expanded partnerships, and proactive business and workforce activities will continue to be enhanced as the plan progresses through implementation in the second year and beyond. Some of the expected initiatives of focus in FY25 include, but are not limited to:

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 Formalizing business retention and expansion efforts including development of the Business Welcome program. (1.1.3)
 Supporting innovative and alternative funding methods and service models to address the needs of the Downtown area. (2.3.4)
 Supporting the creation of coworking, shared resource facilities, maker spaces, and other innovative ways to lower the barriers to entry and provide additional resources. (1.2.1)
 Continuing to elevate the unique identity of each business neighborhood to increase awareness of amenities beyond the Downtown core through the business neighborhood identity study currently underway in partnership with the Promotional Coordinating Committee. (2.1.4)
 Supporting community-based neighborhood planning efforts with the Community Development Department and the Community Services Group. (2.5.2)  Initiate an update to the zoning regulations to further incentivize and streamline the review and permitting of day care centers, including consideration of relaxed property development standards. (3.1.8.)
 Develop relationships with the coworking facilities to promote opportunities to engage with and contribute to the community. (3.2.2.)
Previous Council or Advisory Body Action
The City Council approved the EDSP on July 18, 2023.

Public Engagement
Staff consistently engages with strategic partner organizations, stakeholder groups, the business community and residents and visitors. Information and data are made available on the City’s website for the public to access. A form for business support is available through the website as well, as a means for the public and business community to connect directly with Economic Development staff.

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: 2024-25
Funding Identified: Yes

Item 7b
Fiscal Analysis:

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

Total $ $ $ $
The current FY 2024-25 program budget for Economic Development includes sufficient funding for resources, partnerships and services to implement the workplan as programed. The work efforts to implement the key tasks outlined in the EDSP for FY 2024-25 have been budgeted for, however, those are primarily one-time funds and those programs will require additional funding to be continued in the future. Staff will evaluate all programs and funding through the development of the 2025-27 Financial along with any funding recommendations to the Council.

ALTERNATIVES

1. Council could decide not to receive the status report on the Economic Development Strategic Plan. This action is not recommended by staff because the plan is a key component of managing the City’s economic development efforts and would result in delayed implementation.

2. Council could choose to direct changes to the Economic Development Strategic Plan implementation. This is not recommended as changes could cause delays in accomplishing goals and derail timelines that are based on extensive work with stakeholders.

ATTACHMENTS
A - EDSP Implementation Matrix updated July 1,2024

CLIENT: City of San Luis Obispo, California
PLAN NAME: 2023 Economic Development Strategic Plan Update UPDATE DATE: 1-Jul-24
Lead Organization
Supporting Partners
Timeline
Status ON TRACK

IN PROGRESS

INCOMPLETE
Key Accomplishments / Notes
NOTE:

Abbreviation
Cal Poly California Polytechnic State University
CIE Center for Innovation and Entrepreneurship at Cal Poly SLO City City of San Luis Obispo
COM City of SLO Communications
CDD City of SLO Community Development Department
ED&T City of SLO Economic Development and Tourism
FIRE City of SLO Emergency Management
FIN City of SLO Finance Department
IT City of SLO IT Department
DEI City of SLO Office of Diversity, Equity & Inclusion SNR City of SLO Office of Sustainability &Natural Resources PR City of Slo Parks and Recreation
PW City of SLO Public Works
CC Climate Coalition

ABOUT THIS DOCUMENTMATRIX COMPONENTSABBREVIATIONS USED
Organization Name
This implementation matrix is designed to be a flexible, ever-evolving tool for tracking progress towards implementation of your strategic plan. In addition to identifying lead organizations and establishing priorities, it provides a graphic representation of when actions should realistically be implemented and suggests potential partners to help carry them out. The status column provides a visual indicator for monitoring where each strategy and action stands. Finally, space is provided for logging key milestones and accomplishments or capturing notes about barriers encountered.

Organization responsible for implementation of this task.Stakeholder and partner organizations that will serve as collaborators or that can help move implementation forward.

A visual representation of the suggested timing of implementation This item has been accomplished or action is on track toward meeting or maintaining this task.Action has been initiated, but is delayed or otherwise not fully on track. Requires removal of barriers or other actions to achieve implementation.

Action has not begun on this item or barriers may prevent implementation.

Brief description of relevant activities, major milestones, and/or accomplishments related to this task.The "Lead Organization" and "Status" columns have been conveniently formatted with dropdown lists. Please use one of the provided list items to populate these fields by clicking arrow that appears at the bottom right of each cell in these columns. See illustration. For the Status column, your selection will be automatically color-coded to match the indicators shown above. (These cells populate the drop -down menu and should not be edited or deleted. Likewise, the abbreviations shown in Column G are used to populate the Lead Organization drop-down list.) The remaining fields are free-form and will accommodate any length of text.

City of San Luis Obispo, California | Updated July 2024 Page 155 of 265 CAPSLO Community Action Partnership of San Luis Obispo County CCC Cuesta Community College
DCSLO Diversity Coalition San Luis Obispo County
DSLO Downtown SLO
ECOSLO Environmental Center of San Luis Obispo
HCSLO History Center of San Luis Obispo County
REACH Regional Economic Action Coalition
SLCUSD San Luis Coastal Unified School District
SLOCC San Luis Obispo Chamber of Commerce
SLOCOG San Luis Obispo Council of Governments
SLOC San Luis Obispo County
SLOWDB San Luis Obispo County Workforce Development Board SLOMA San Luis Obispo Museum of Art
SCORE SCORE San Luis Obispo
SLOAC SLO County Arts Council
SLOP SLO Partners

SOFTEC SOFTEC
UCC Uplift the Central Coat
SLO CAL Visit SLO CAL
City of San Luis Obispo, California | Updated July 2024 Page 156 of 265 ONGOING FY24 FY25 FY26-FY28

1.1.1. Continue to work with partners at the Chamber, REACH, Cal Poly, Downtown SLO, SCORE and others to support the business community through retention, creation, attraction, education, and communication efforts. [M.C.G. 1.2(b)] ED&T SLOCC, REACH, Cal Poly, DSLO, SCORE SLO
 ON TRACK
Ongoing reoccurring meetings are held with Cal Poly,Chamber, DSLO, and REACH. Scheduling annualdiscussion with all business support agencies for August

1.1.2. Continue to proactively communicate with the business community on a regular basis as it relates to important economic development programs, opportunities, and activities.

ED&T SLOCC, DSLO, CIE, COM
 ON TRACK
Periodic updates continue to be sent to all business licenseholders and interested parties. During FY24, a total of 28separate business emails were sent.

1.1.3. Expand business outreach efforts with a formal BRE program that assists new and existing businesses, monitors employer trends, and pinpoints enterprises and sectors that require support.

ED&T SLOCC, DSLO, CIE Q4 IN PROGRESS
FY24: 100+ businesses contacts made. Assistance provided to these businesses included business resource referrals, site selection, building and planning permit guidance, and assistance with other government agencies. This FY ED&T established and documented standard operating procedures for monitoring employer and consumer trends utilizing data commissioned and prepared by a contractor on a quarterly and semi-annual basis. Additional research and outreach into the BRE program has started with internal and external 1.1.3.1 Establish a business welcome program that provides support to new businesses. This can include everything from welcome materials, business visits and training, and support. The appropriate partners can be included in this process where relevant.

ED&T SLOCC, DSLO Q4 IN PROGRESS
Drafting the business welcome program with input from otherCity Departments and prospective new businesses in theCity. Expected completion of the materials is in FY25 Q3 dueto the complex coordination of more than eight internalprograms and other external partners.

1.1.3.2 Reestablish the business visit program with the Chamber of Commerce (including all businesses) to identify needs of important geographic areas or business sectors in the community.

ED&T SLOCC Q3 IN PROGRESS Discussions with SLO Chamber on the program are underway, the return of the program is anticipated for FY25 Q2.

1.1.3.3 Participate in the Downtown SLO business visits program on a regular basis. ED&T DSLO Q3 ON TRACK Following onboarding of new ED&T staff + DSLO staffdiscussions are underway for coordated buiness visits whenapplicable. In FY24 visits were separte and referal based.Expected implmention of coppertaive visits in FY25 Q1.

1.1.3.4 Determine the feasibility of an ongoing annual business survey to begin to develop data and trend analysis specific to the City and the business community. ED&T SLOCC Q1 IN PROGRESS Basic information is available from the BW Research project to serve as a basis for discussion.

1.1.3.5 Investigate the use of an existing City technology platform (e.g., Ask SLO) to act as a customer relationship management system to document detailed notes, follow-ups, and touchpoints over time.

ED&T IT Q3

1.1.3.6 Continue to maintain relationships with the development real estate community through the Developer’s Roundtable; the Building, Design, and Construction Group; and other formal and informal meetings to understand potential commercial and residential development projects, potential tenants, and upcoming

ED&T CDD
 ON TRACK
ED&T team participated in Developer s Roundtable in Q3FY24 which included changes to the format based onindustry input. ED&T staff considering additional andalternative industry group forums with CDD Director in thefuture as needed 1.1.3.7 Compile information collected from business licenses, surveys, visits, and other sources to track trends among employers and distribute these findings to business support partners, such as business and workforce training providers, as well as other local and regional economic development partners.

ED&T FIN


1.1.3.8 Highlight the City’s BRE accomplishments to showcase successful economic development efforts, maintain the confidence of the local business community, and encourage continued investment in business support activities. ED&T COM  ON TRACK
Successful results from the FY24 Buy Local Bonus, EatLocal Bonus, and Resturant Week programs werecommunicated to local media and the public through Citycommunication channels. Development of new downtownsummer spending promotion to coincide with upcoming

1.1.4. Ensure broad and inclusive engagement in area and specific plans updated by the Community Development Department to represent the needs of local businesses. [M.C.G. 1.2(e]

ED&T CDD
 ON TRACK
Monthly check in meetings established with the ED&T and Community Development Director to stay informed and involved.

1.1.5. Connect businesses to the SLO Green Business Network and other third-party resources for operational sustainability and efficiency (e.g., electric fleet rebates and lighting rebates). ED&T SNR, ECOSLO  ON TRACK
Monthly check in meetings established with the City'sSustainability Team to move this forward. ED&T meetingwith EcoSLO for the advancement of Green BusinessNetwork. Met with new CEO for EcoSLO in FY24 Q4.EcoSLO expected to releaunch program in FY25 Q1.

1.1.6. Provide support to help entrepreneurs, innovators, and new businesses participate in the clean energy transition. ED&T SNR, ECOSLO  ON TRACK Monthly check in meetings established with the City's Sustainability Team to move this forward.

1.2.1. Support the creation of coworking, shared resource facilities, maker spaces, and other innovative ways to lower the barriers to entry and provide additional resources. ED&T CDD, CIE, DSLO, SLOCC  ON TRACK Continued discussions with the HotHouse and Cal Poly to support efforts to expand services.

KEY ACCOMPLISHMENTS / NOTES
NOTE: FY26-FY28 are subject to evaluation, resource allocation, and funding during the Major City Goal and Budget process for the respective year.

LEAD

ORGANIZATION

SUPPORTING

PARTNERS

TIMELINE
STATUS

1.2. ENTREPRENEURIAL SUPPORT. Continue to bolster the entrepreneurial ecosystem by improving access to resources, education, and networks for entrepreneurs.

PILLAR 1: BUSINESS AND ENTREPRENEUR VITALITY

1.1. BUSINESS RETENTION AND EXPANSION (BRE). Develop a proactive and targeted approach to identify and address the needs of existing businesses, while creating an environment that fosters growth and innovation.

City of San Luis Obispo, California | Updated July 2024 Page 157 of 265 ONGOING FY24 FY25 FY26-FY28 KEY ACCOMPLISHMENTS / NOTES NOTE: FY26-FY28 are subject to evaluation, resource allocation, and funding during the Major City Goal and Budget process for the respective year.

LEAD

ORGANIZATION

SUPPORTING

PARTNERS

TIMELINE
STATUS
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1.2.2. Maintain and build on the efforts with the Cal Poly CIE (CIE), which includes the Hothouse and other activities, to help ensure its continued success and the success of the local entrepreneurs it supports.

ED&T CIE
 ON TRACK Quarterly check in meetings established with the CIE team to ensure alignment.

1.2.3. Develop tools to anchor businesses that graduate from the CIE programs and other incubator programs into the community. In addition to the location assistance and other support, address continued access to business support resources and funding.

ED&T CIE, REACH, SLOCC, DSLO Q3

1.2.4. Maintain support of organizations like the SBDC, the Service Corps of Retired Executives (SCORE), and Softec to address the needs of both startup and existing businesses. ED&T CIE, SCORE, SOFTEC  ON TRACK
Sponsorship support is ongoing on an annual basis.Currently using one-time funding. Ongoing funding to beestablished in the 2025-27 Financial plan. Successfulintegration of promotion for business training opportunitieshave been added to City's Business email.

1.2.5. Collaborate with the CIE, the Chamber, REACH, and other partners to conduct familiarization tours with venture capitalists mirroring the successful approach used in the City’s tourism marketing.

ED&T CIE, DSLO, REACH, SLOCC

Started discussions with CIE to explore feasibility of aventure capital familiarization tour and advised on bestpractices.

1.2.6. Work with REACH and other partners to promote the region in general and the City specifically as an entrepreneur destination in select markets, such as the Silicon Valley area. Target high-growth entrepreneurs who do not require a significant amount of operating space to grow.

ED&T CIE, DSLO, REACH, SLOCC
 ON TRACK
Ongoing support and collaboration between the ED&T teamand REACH to respond to RFI's and to perform marketing ofthe area for business relocation.

1.2.6.1 Create a clear message about what the City has to offer entrepreneurs and highlight the City’s values, culture, quality-of-place amenities, and other strengths. ED&T CIE, DSLO, REACH, SLOCC Q4 ON TRACK Marketing agency contract has been funded and established for this work effort. 1.2.6.2 Continue to enhance the online presence of the region and the City to attract entrepreneurs and investors. ED&T CIE, DSLO, REACH, SLOCC  ON TRACK Initial updates have been made to Business section of the City's website.

1.2.6.3 Partner with local organizations to amplify the City’s messaging and reach a wider audience. ED&T CIE, DSLO, REACH, SLOCC  ON TRACK
Continued partnership with the SLO Chamber for mediaoutreach. Support of REACH digital ad placement forregional ED positioning.

1.2.6.4 Publicize current success stories by showcasing successful startups, highlighting innovation in critical industries, and promoting successful entrepreneurs who have made SLO their home.

ED&T CIE, DSLO, REACH, SLOCC, COM
 ON TRACK Discussing with CIE and SLO Chamber on how best to showcase the story of entrepeneurship in San Luis Obispo.

1.3.1. Build capacity for post-disaster recovery by working in conjunction with the emergency management function to develop a plan for business preparedness and recovery.

ED&T FIRE
 ON TRACK
Meeting quarterly with the Emergency Management team toaddress the recovery planning efforts will restart, pendingthe hiring of new Emergency Manager.

1.3.1.1 Continue to build on existing education efforts around natural disasters identified in the City’s Local Hazard Mitigation Plan and relevant hazard mitigation resources.

ED&T FIRE
 ON TRACK
SLO Children's Museum received a grant for installingfloodgates and will be working with the emergencymanagement team to film a PSA on the installation.

1.3.1.2 Increase the business community’s awareness of the City’s emergency management preparation and response protocols related to business operations, in advance of disruptive incidents.

ED&T FIRE, SLOCC, DSLO, COM
 ON TRACK Communcated various storm prepeation resouces to the bsuiness community during the Q3 storm events.

1.3.1.3 Outline a protocol for business re-entry in the event of an evacuation or temporary business closures. Establishing a tiered re-entry system will help to ensure an orderly return to operations by clarifying which businesses and industries are to be prioritized for reentry.

ED&T FIRE


1.3.1.4 Include a communications plan for keeping businesses informed before, during, and after a disaster. ED&T SLOCC, DSLO, COM 

1.3.1.5 Specify the roles and responsibilities of business support partners predisaster, during, and post-disaster. ED&T FIRE, CIE, DSLO, SLOCC 

1.3.2. Leverage partners, such as the SBDC and Downtown SLO, as well as the Chamber, to improve business disaster preparedness, awareness, and response. ED&T CIE, DSLO, SLOCC  ON TRACK Communcated various storm prepeation resouces to the bsuiness community during the Q3 storm events.

1.3.2.1 Increase awareness of, the need for, and benefits of, continuity planning through seminars, workshops, webinars, or other educational programs. ED&T FIRE, CIE, DSLO, SLOCC, COM 

1.3.2.2 Expand the continuity planning resources on slocity.org. Videos or recordings of previous training sessions will increase accessibility for business owners who do not have the time to attend live training.

ED&T FIRE


1.3.3. Partner with the SBDC to evaluate post-disaster funding options and increase local business awareness of federal post-disaster financial resources, such as US Small Business Administration disaster loans.

ED&T CIE
 ON TRACK Ongoing reoccurring meetings are held with Cal Poly & CIE staff.

1.3.4. Facilitate the communication of City programs that support preparedness, sustainability, and resiliency to the business community, including but not limited to fire and disaster preparedness, water conservation, building retrofit, and waste

ED&T SNR, FIRE, SLOCC, DSLO, CIE, COM
 ON TRACK Working with City partners to communicate information via the business email as available.

1.3. BUSINESS PREPAREDNESS, SUSTAINABILITY, AND RESILIENCY. Implement disaster preparedness measures that enhance the City’s ability to respond to economic disruptions and effectively support business recovery.

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1.3.5. Advocate for regional transportation initiatives and other solutions that support lower cost, more sustainable, and more efficient transportation and infrastructure for employees and businesses.

ED&T PW, CDD  ON TRACK
Worked with City partners to communicate informationrelated to this topic via the business email when relevantincluding communication on the Transit Innovation Study.

1.4.1. Continue activations, promotions, and programs like "Buy Local Bonus," "Eat Local Bonus," and "Shop Local" to build economic resiliency throughout the City and including Downtown. [M.C.G. 1.2(a)] ED&T SLOCC, DSLO  ON TRACK
Continued high engagement of the Support Local programsincluding succesful implemention and expansion of theBLB/ELB programs resulting in $1.2 million local spendingthrough the FY24 promotional programs.

1.4.2. Encourage business development in sectors that support the long-terms goals of the City as it relates to sustainability and diversity, equity, and inclusion. ED&T SNR, DEI, CIE, SLOCC, DSLO  ON TRACK ED&T team met with recipients of the DEI Business Grant tounderstand the successes and challenges of the programand anticipate future demand for grants of this nature.

1.4.3. Use information gathered from the business license demographic questions to reach out to specific types of businesses to help determine the unique needs of minorityowned businesses and develop a plan to address identified challenges with assistance from relevant partners.

ED&T DEI, SLOCC, CIE  ON TRACK ED&T and Finance discussed having a demographic survey go out in 2025 along with business license renewals.

1.4.4. Encourage and promote inclusive business practices Citywide by capturing and showcasing best practices discovered from the DEI Business Grant program and other relevant programs. Share and distribute creative solutions to the broader business community.

ED&T DEI, SLOCC,DSLO, COM Q1 ON TRACK
Meeting monthly with the City's DEI team to determineopportunities for promotion. ED&T and DEI team evaluatingcommunity engagement and informational opportunity withgrant recipients for FY25 Q2.

1.5.1. Continue to partner with the Office of Sustainability to implement the economic development related actions in the Climate Action Plan (CAP) as well as the sustainability related actions in the updated Economic Development Strategic Plan.

ED&T SNR  ON TRACK Monthly check in meetings established with the City's Sustainability Team to move this forward.

1.5.2. Continue to partner with the Office of Diversity, Equity, and Inclusion (DEI) to implement the economic development related actions in the DEI Major City Goal and planned DEI strategic framework as well as the DEI related actions in the updated Economic Development Strategic Plan (EDSP). [M.C.G. 1.1(c)] ED&T DEI  ON TRACK Monthly check in meetings established with the City's DEI Team to move this forward.

1.5.3. Leverage information gathered from surveys, business visitations, insights from local partners, and other sources to determine business support gaps and monitor improvements over time.

ED&T DEI, SLOCC, DSLO 

1.5.4. Ensure awareness of business support and economic development resources, especially within minority communities and among business owners who are new to the area or may have language barriers.

ED&T DEI, SLOCC, DSLO  ON TRACK
Monthly check in meetings established with the City's DEITeam to move this forward. Held coopertaive businessesvisits to support business owners and connected them tobilingual resources.

1.5.5. Build on efforts to improve the entitlement and permitting processes. Continue to make improvements, as needed, based on data and community feedback. ED&T CDD  ON TRACK Internal meetings to discuss opportunities for enhancedcommunication and information-sharing with businesses inthe permitting process.

1.5.5.1 Attend the Developer’s Roundtable events and other economic development related sessions. ED&T CDD  ON TRACK ED&T team particapted in Developer's Roundtable in Q3 FY24 which included changes to the format based on

1.5.5.2 Support the new Community Development Department and Community Services leadership on process improvements. ED&T CDD  ON TRACK Established monthly check in meetings with Community Development Director.

1.5.6. Continue to focus on efficiency and transparency in the permitting process through implementation of new tools, performance management reporting, and enhanced customer transparency tools. Report recurring performance measures or permit processing times during General Plan Annual Report. [M.C.G. 1.2(d)] ED&T CDD  ON TRACK The 2023 General Plan Annual Report was received at the 4/16/2024 City Council Meeting.

1.5.7. Represent the interests of the business community during the implementation of the broadband strategic plan. [M.C.G. 1.2(j)] ED&T IT, SLOCC  ON TRACK The ED&T team participated in the evaluation and selection of the City's partner.

1.5.8. Continue to advocate for solutions to macroeconomic and systemic issues, like housing, transportation, and childcare, in line with the City’s legislative platform, in economic development related settings at the local, regional (REACH), super-regional (Uplift the Central Coast), and state levels.

ED&T REACH, UCC  ON TRACK
Worked with CDD to provide a letter of support for theHousing and infrastructure plan at the County Board ofSupervisor meeting in August 2023.

1.4. SMALL BUSINESS DEVELOPMENT. Continue to support the small business community to sustain growth.1.5. BUSINESS SUPPORT INFRASTRUCTURE. Maintain efforts to develop and grow business support infrastructure and tools.

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2.1.1. Continue to promote the City to tourists, visitors, and locals through the efforts of the TBID and the PCC. [M.C.G. 1.2(c)] ED&T SLO CAL, SLOCC  ON TRACK Ongoing work effort is underway with both TBID and PCC.

2.1.1.1 Support activities as outlined in the City’s Tourism Business Improvement District (TBID) Strategic Marketing and Business Plan and sustain promotional activities targeted toward visitors and locals through continued engagement with the TBID and the Promotional Coordinating Committee (PCC)

ED&T SLO CAL, SLOCC
 ON TRACK
ED&T team lead the development of the amended TBID
marketing plan for FY24 and the program work for the PCCfor FY24. Efforts underway for FY25 TBID Marketing Planand PCC program work.

2.1.2. Ensure that the City’s efforts related to sustainability and open space protection (asdocumented in the CAP) and DEI (as documented in the forthcoming DEI Strategic Plan) are incorporated into the ED&T work program, as appropriate

ED&T SNR, DEI
 ON TRACK Meeting monthly with the Sustainability and DEI teams to ensure progress and alignment.

2.1.3. Ensure continued messaging alignment with Visit SLO CAL where appropriate. ED&T SLO CAL  ON TRACK ED&T team participated in the development and review of the Visit SLO CAL FY25 Marketing Plan.

2.1.4. Elevate the unique identity of each neighborhood to increase awareness of amenities beyond the Downtown core. ED&T CDD, SLOCC Q2 IN PROGRESS Neighborhood section of VisitSLO.com has been developedincluding promotional content. Adverstising program forneighborhoods has been intitiated.

2.1.4.1 Develop and promote an identity for each neighborhood that reflects its culture and history. ED&T CDD, SLOCC Q2 IN PROGRESS Unique identities have been created for all SLO areas including video and other content. Retained consultant for the comprehensive evaluation of the neighborhood identity2.1.4.2 Showcase and support neighborhood businesses through marketing and promotional efforts. ED&T CDD, SLOCC  ON TRACK Neighborhood section of VisitSLO.com has been developed including promotional content.

2.1.4.3 Involve residents in the process of identifying and celebrating the unique attributes and character of their neighborhoods. Convene interested parties in the neighborhood to discuss priority economic development and tourism opportunities. ED&T CDD  IN PROGRESS
First neighborhood meeting held, based on input and
feedback. PCC evaluated the public outreach plan for identityadoption, programming and coordination and retainedconsultant for the comprehensive evaluation of the

2.1.4.4 Empower neighborhood leaders or identify champions to take an active role in highlighting the unique characteristics of their communities.

ED&T CDD
 ON TRACK
Worked with Palm Street business owners to implement a
successful celebration of the historic Chinatown during LunarNew Year as pilot program to support neighborhoodpromotional collaborations.Worked with business owner in the LoBro neighborhood toshare promotional plan with neighborhood representatives ina business-led community meeting.

2.2.1. Personalize the SLO experience and advance the “Live the SLO Life” brand by leveraging storytelling. ED&T SLOCC, DSLO  ON TRACK
Secured extensive PR placements in local, regional and
national media outlets. SLO named in top 10 small towns in America by CNN.

2.2.1.1 Highlight diverse residents, visitors, business owners, and employees to share testimonials of their experiences in SLO. This could be individuals sharing stories of their business, occupation, hobbies, personal history, or experience with local events and destinations.

ED&T SLOCC, DSLO, SCORE SLO Q1 ON TRACK
The City's sponsorship of SCORE helped fund a BIPOCBusiness event on August 29th, 2023. Contiuned work effortsstill underway.

2.2.1.2 Manage online sources that highlight local information—including Wikipedia pages for the City—and ensure they reflect the “Live the SLO Life” brand ED&T  ON TRACK ED&T team in the process of evaluating and accessing the platforms.

2.2.2. Highlight the diverse culture, history, assets, and amenities of the City to help foster a sense of inclusion. ED&T SLOAC, SLOCC, DSLO, HCSLO, SLOMA  ON TRACK
Developed the ARTober program to celebrate national Arts & Humanities month in San Luis Obispo. ARTober will return inFY25 Q2.

2.2.2.1 Leverage the History Center of San Luis Obispo County and other community partners in telling the SLO story. ED&T SLOAC, SLOCC, DSLO, HCSLO, SLOMA  ON TRACK
Worked with over a dozen local arts & cultural organizationsto promote and implement ARTober. ARTober will return inFY25 Q2.

2.2.2.2 Publicize historical or cultural landmarks that represent diverse communities.

ED&T DEI, SLOHC
 ON TRACK
Through the "Art Starts With" campaign, the City promotedvarious public art installations that depict historical or culturalsignificance.

2.2.2.3 Continue to support cultural events that celebrate the various cultures within the City through the Cultural Grants-in-Aid Program (GIA) and the Tourism and Community Promotions Program. ED&T SLOCC  ON TRACK
PCC has awarded $100,000 in grant funding to organizationsthrough the GIA and CACP program in FY24. FY25 CACP program underway with grant recommendationsgoing to Council in July 2024.

2.2.2.4 Partner with local business that reflect the diversity of the City.

ED&T SLOCC, DSLO
 ON TRACK
Diverse businesses are included in PR and marketing effortsthrough TBID and PCC. Example of results include CNNTravel feature.

2.2.3. Continue to support the Downtown SLO programs like Clean & Safe, the Ambassadors, and homelessness support. [M.C.G. 1.3(c)] ED&T DSLO  ON TRACK
Annual contract in place with Downtown SLO along with ongoing creative collaboration on program implemention andbusiness responsiveness.

2.2.4. Continue to work with Downtown SLO to build on the success of the historic Thursday Night Farmers’ Market and the Concerts in the Plaza program ED&T DSLO  ON TRACK Provided grant funding and promotional support for Farmers' Market and Concerts in the Plaza.

2.2.5. Enhance both the virtual and the physical wayfinding between the various areas of the City and Downtown. ED&T PW, CDD, DSLO  ON TRACK
Funded the design update and installation of the large acrylicmaps in the downtown area. Wayfinding signs were installedin Mission Plaza and along the creek.

2.3.1. Continue to partner with Downtown SLO to ensure the promotion, resiliency, growth, and vitality of the Downtown. [M.C.G. 1.3(a)] ED&T DSLO  ON TRACK Collaborated closely with DSLO in response to business challenges including construction, parking and visitation.

NOTE: FY26-FY28 are subject to evaluation, resource allocation, and funding during the Major City Goal and Budget process for the respective year.

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2.1. QUALITY-OF-PLACE PROMOTION. Bolster efforts to promote the City as an appealing destination for all people to live, work, visit, and invest.2.2. WELCOMING ENVIRONMENT. Create an inclusive and friendly environment for residents, workers, and visitors.2.3. DOWNTOWN VITALITY. Continue to support and maintain a vibrant and dynamic urban core that attracts people and businesses.

City of San Luis Obispo, California | Updated July 2024 Page 160 of 265 ONGOING FY24 FY25 FY26-FY28
NOTE: FY26-FY28 are subject to evaluation, resource allocation, and funding during the Major City Goal and Budget process for the respective year.

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PILLAR 2: PLACEMAKING AND PROMOTION

2.3.2. Continue to financially and operationally support Downtown SLO during the winter holidays including incentivizing private participation through the matching program. [M.C.G. 1.3(b)] ED&T DSLO  ON TRACK
Holiday contract has been signed and efforts for this year are underway. The 47th annual Holiday Parade had 15,000attendees.

2.3.3. Restart discussions with partners regarding the potential of a conference facility and explore potential funding structures (i.e., public, private, or public-private partnership). ED&T SLO City, SLOC, SLO CAL, DSLO Q1 ON TRACK Conference center study "refresh" is in progress. Final report expected to be complete in FY25 Q2.

2.3.3.1 Determine additional sites to be added to the current feasibility study.

ED&T CDD Q1 ON TRACK
Two additional sites have been added to thestudy including the current Courthouse building and the area near 1166
Higuera St.

2.3.4. Support innovative and alternative funding methods and service models to address the needs of the Downtown area. ED&T DSLO  ON TRACK DSLO is evaluating a new PBID.

2.3.5. Support opportunities that speed the implementation of the Downtown Concept Plan. ED&T CDD  ON TRACK Several "sidewalk bulb outs" are in the review process.

Maintaining communication in the Mission Plaza restoration project.

2.3.6. Develop a Council Report and Study Session on downtown vacancies, the status, and possible options to address any issues identified. [M.C.G. 1.3(d)] ED&T Q4 ON TRACK Completed FY24 Q4. In place of a study session, staff held meetings with individual Council members to review thestatus and vibrancy of downtown.

2.4.1. Develop a Council Memorandum on the current base level of economic support for Arts and Cultural activities across the various departments in the City.[M.C.G. 1.4(h)] ED&T Q2 ON TRACK Completed FY24 Q4. Memo released in Q2 2024.

2.4.2. Continue to financially support the Arts and Cultural activities of the City through the PCC's GIA program and the additional grant funding via the PCC. [M.C.G. 1.4(d)] ED&T  ON TRACK
PCC has awarded $100,000 in grant funding to organizationsthrough the GIA and CACP program in FY24. FY25 CACP program underway with grant recommendationsgoing to Council in July 2024.

2.4.3. Investigate the alignment of artistic and cultural initiatives across the City. ED&T SLOAC, SLOMA, CDD, DSLO, DEI Q22.4.4. Ensure that the City promotes the various City and privately owned art installations through programs like the public art promotional plan developed by the PCC. [M.C.G. 1.4(c)] ED&T PR, COM  ON TRACK The 8-month "Art Starts With" campaign was completed inSeptember which established 8 themed public art promotional"reels" and garnered over 650k impressions on social media.FY25 ongoing coordation with Public Art Coordinator.

2.4.5. Engage the Office of DEI to develop initiatives that encourage increased participation in arts programming by underserved groups, including youth ED&T DEI, SLOAC 2.4.6. Continue to work with community partners to ensure the cultural vitality of the City. [M.C.G. 1.4(a)] ED&T SLOAC, SLOMA, HCSLO  ON TRACK Worked with over a dozen local arts & cultural organizationsto promote and implement ARTober. ARTober will return inFY25 Q2.

2.4.7. Continue the Citywide banner program. [M.C.G. 1.4(e)] ED&T DSLO  ON TRACK Evaluating the addition of a street banner location on Morro Street. New banners being added in FY25 Q1 for

2.4.8. Evaluate additional opportunities to expand support of the cultural vitality of the community as part of the 2025–2027 goal-setting process ED&T 2.5.1. Maintain joint efforts with the Community Development Department and other partners to communicate the need to increase the supply of workforce and multifamily housing by supporting the implementation of the City’s Housing Element Policies and Programs as they align with the City’s Major City Goals ED&T CDD  ON TRACK
Coordinated the City's represention at the SLO CountyHousing Summit. Supported the outreach and communicationof the City's ProHousing designation.

2.5.2. Evaluate a more structured community-based neighborhood planning effort with the Community Development Department and the Community Services Group for inclusion in the 2025–2027 goal-setting process ED&T CDD 

2.5.3. Advocate for greater accessibility to commercial centers, jobs, parks and open spaces, amenities, hospitals, and schools as outlined in the City’s various planning documents, like the Conservation and Open Space Element, Parks and Recreation Blueprint for the Future, and Active Transportation Plan ED&T CDD, PW, SNR, PR  ON TRACK ED&T staff involvement as appliacable.

2.5.4. Support the development and expansion of multimodal transportation solutions tha encourage access to and around Downtown as well as between residential and commercial corridors. Options should address the following ED&T PW  ON TRACK
Worked with City partners to communicate information related to this topic via the business email when relevant includingcommunication on the Transit Innovation Study.

2.5.4.1 Aligning with the City’s sustainability goals. ED&T PW, SNR  ON TRACK Support of the Sustainable SLO implemention.

2.5.4.2 Expanding mass transit by increasing frequency of service and providing more routes. ED&T PW  ON TRACK Communication on the Transit Innovation Study and tranist options for customers and employees Downtown. 2.5.4.3 Integrating different modes of transportation, such as shared bikes or electric scooters. ED&T PW  ON TRACK PCC reviewed and provided support of the Bikeshare RFP.2.5.4.4 Improving the pedestrian and cycling infrastructure. ED&T PW  ON TRACK PCC reviewed and provided support of the Bikeshare RFP.

2.5. INCLUSIVE NEIGHBORHOOD PLANNING. Encourage inclusive neighborhood planning efforts that benefit residents and encourage both housing production and economic activity.2.4. CULTURAL VITALITY. Strengthen working relationships with and maintain financial support of the arts community to enrich the cultural offerings throughout the City.

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3.1.1. Continue to update the employment scorecard and the economic activity scorecard. [M.C.G. 1.1(e)] ED&T CDD  ON TRACK Unemployment data updated monthly, employment trends updated biannually, and all other data updated quarterly.

3.1.2. Promote and increase awareness of Moderate Income+ jobs with existing and potential employers. ED&T SLOCC, SLOP, SLOWDB  ON TRACK Employment trends updated biannually.

3.1.2.1 Work with the Chamber to recruit local business leaders willing to speak out on the need for improved job quality as a driver of inclusive economic growth with their peers
ED&T SLOCC Q4 ON TRACK
Discussions with SLO Chamber on the program are underway. Utilizing the forum of the Business Visits to incorporate these conversations in FY25 Q2.

3.1.3. Prioritize support for talent development efforts that target occupations offering higher wages and benefits. ED&T SLOCC, SLOP, SLOWDB, CCC  ON TRACK Initial meetings have been held with the Workforce Development Board.

3.1.4. Partner with industry and workforce training providers and encourage the County to broaden and measure the effectiveness of the Workforce Investment Board (WIB) to proactively identify and address skilled labor gaps.

ED&T SLOP, SLOWDB


3.1.5. Investigate ways to determine a proxy measurement to track progress of growing Moderate Income+ jobs. ED&T CDD 

3.1.6. Work with local employers to identify and promote professional and career development opportunities for workers outside the workplace. ED&T SLOP, SLOWDB 

3.1.7. Continue to support new and expanded private childcare options through the use of grant funding and other programs. [M.C.G. 1.2(g)] ED&T CAPSLO  ON TRACK
To date, the grant has created 11 newly licenced businessesand 116 slots for children, with 8 applicants pending licensurewith potential to create an additional 92 slots.

3.1.8. Initiate an update to the zoning regulations to further incentivize and streamline the review and permitting of day care centers, including consideration of relaxed property development standards.

ED&T CDD Q4 IN PROGRESS
Only item added to 23-25 work program with agreement fromCDD on June 6, 2023. Language slight changed to remove"with Community Development leaders" to match agreedlanguage 3.1.9. Proactively evaluate opportunities to partner with Cal Poly, San Luis Coastal Unified School District and other major employers for employer-supported childcare programs. [M.C.G. 1.2(i)] PR PR, Cal Poly, SLCUS
 ON TRACK Lead organization updated to Parks and Recreation Department.

3.2.1. Promote the availability of the coworking space available to remote workers and home-based business owners. Coworking spaces help to foster a sense of community and connect workers to potential clients, partners, and mentors.

ED&T Cal Poly, SLOCC Q1 ON TRACK Met with CIE to understand the day-to-day operations of the HotHouse and support needs.

3.2.2. Develop relationships with the coworking facilities to promote opportunities to engage with and contribute to the community. ED&T Cal Poly Q1 ON TRACK Met with CIE to understand the day-to-day operations of the HotHouse and support needs.

3.2.3. Maintain and expand partnerships with the Chamber on initiatives like the SLO Onboarding Assistance Resource (SOAR) program that help to attract and retain talent.

ED&T SLOCC
 ON TRACK
The SOAR program has offered assistance to 440 relocatingemployees since October 2022 when the pilot programlaunched. The top three areas of assistance have been socialconnections, housing search assistance, and partneremployment opportunities.

3.2.4. Investigate with partners opportunities to develop programs and tools to help engage new employees. ED&T SLOCC, DSLO 

3.3.1. Leverage existing tourism marketing materials and strategies detailed in the TBID marketing plan to support any new talent attraction efforts. ED&T Q33.3.2. Enhance collaboration with local and regional partners to showcase the unique selling points of the City, such as its natural beauty, the vibrant arts and culture scene, and recreational activities.

ED&T SLOCAL, SLOCC
 ON TRACK Promotional converations are ongoing with Visit SLO CAL, Chamber and Cal Poly.

3.3.3. Facilitate stronger connections among students, employers, and the broader community to help retain graduating high school and college students. ED&T Cal Poly, CIE, SLCUSD  ON TRACK Presented to the SLCUSD contoing eductaion teachers on carree pathways in FY24 Q3.

3.3.4. Initiate a talent re-attraction or boomerang campaign targeting adjacent markets where there are likely concentrations of former SLO residents or Cal Poly students. ED&T Cal Poly, REACH 

3.3.5. Support the talent recruitment efforts of local employers. ED&T SLOCC  ON TRACK Supported connections between employeers and SLO Chamber realted to SOAR resoures.

KEY ACCOMPLISHMENTS / NOTES
NOTE: FY26-FY28 are subject to evaluation, resource allocation, and funding during the Major City Goal and Budget process for the respective year.

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PILLAR 3: TALENT DEVELOPMENT AND ATTRACTION

3.1. SYSTEM DEVELOPMENT. Encourage the continued strengthening of the system to create Moderate Income+ jobs.3.2. EMPLOYER AND EMPLOYEE INTEGRATION. Develop methodologies, tools, and programs to welcome and acclimate new employers and employees to the community.3.3. TALENT ATTRACTION AND RETENTION. Position the City as not just a place to visit but also a desirable location to live and work.

City of San Luis Obispo, California | Updated July 2024 Page 162 of 265 ONGOING FY24 FY25 FY26-FY28 KEY ACCOMPLISHMENTS / NOTES NOTE: FY26-FY28 are subject to evaluation, resource allocation, and funding during the Major City Goal and Budget process for the respective year.

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PILLAR 3: TALENT DEVELOPMENT AND ATTRACTION

3.3.5.1 Ensure that employers are aware of the data and information available that can inform potential employees about the community. ED&T SLOCC  ON TRACK Provide information in outreach with links to the Business section of the City's website where data is loacted.3.3.5.2 Respond to specific employer requests for community data and information. ED&T SLOCC  ON TRACK Provide information in outreach with links to the Business section of the City's website where data is loacted.3.3.5.3 Work with employers to identify other sources of community data and information that would assist in their employee recruitment efforts. ED&T SLOCC  ON TRACK Mainitian weekly meeting with the SLO Chaber to sharre
information and business needs. Provide information inoutreach with links to the Business section of the City'swebsite where data is loacted.

3.4.1. Support the creation of a talent pipeline for green jobs and supporting businesses that align with the goals and objectives of the Climate Action Plan. ED&T SLOCC, SNR  ON TRACK Meeting monthly with the City's Sustainability team to determine opportunities for effort.

3.4.2. Continue to advocate for solutions that can help to address the systemic issues withchildcare. ED&T UWSLO, CFSLO  ON TRACK Contiune ongoing communiaction with CAPSLO. 3.4.3. Partner with the Chamber to regularly inform local and regional training providers of skilled labor needs of employers. ED&T SLOCC  ON TRACK Working with the Chamber to put structure around this work.

3.4.3.1 Organize regular meeting or forums where local businesses can meet with workforce training providers to discuss their needs and collaborate on solutions. ED&T SLOCC  ON TRACK Coordinating an annual roundtable of business support agencies to understand opportunities for collaboration.

3.4.3.2 Share relevant BRE visit insights as well as industry and workforce trends with training partners. ED&T SLOCC  ON TRACK Mainitian weekly meeting with the SLO Chaber to sharre information and business needs.

3.4.3.3 Facilitate introductions between workforce training providers and major employers to build relationships and identify areas of need. ED&T SLOCC  ON TRACK Mainitian weekly meeting with the SLO Chaber to sharre information and business needs.

3.4. EDUCATIONAL PARTNERSHIPS. Leverage educational partnerships to create and grow pathways to Moderate Income+ jobs that strengthen the local economy.

City of San Luis Obispo, California | Updated July 2024 Page 163 of 265