San Luis Obispo City Council
March 4, 2025

c. Implementation of applicable removal and disposal protocol and requirements for identified naturally occurring asbestos.
➢ AQ-4 Monitoring Plan. The City shall verify receipt of the asbestos survey and verify all measures are shown on relevant site plan sheets at the time of submittal of applications for demolition, building, and construction permits, if applicable.

Mitigation Measure AQ-5. Regulated asbestos-containing material could be encountered during the proposed demolition activities and rehabilitation of the Rosa Butrón Adobe. At the time of application for demolition permits, the project developer shall demonstrate compliance with the National Emission Standards for Hazardous Air Pollutants (40 Code of Federal Regulations Part 61, Subpart M - National Emission Standard for Asbestos) regarding the proper handling, abatement, and disposal of regulated asbestos-containing material. National Emission Standards for Hazardous Air Pollutants requirements for regulated structures include, but are not limited to:
a. Hire a Certified Asbestos Consultant to conduct an asbestos survey report. b. Prepare a written work plan addressing asbestos handling procedures in order to prevent visible emissions.
c. Submit he asbestos survey report and work plan to the City at the time of application for demolition and building permits.
d. Submit a notification form, survey, and work plan to the San Luis Obispo County Air Pollution Control District, at least 10 business days prior to demolition, regardless of regulated asbestos-containing materials.
e. Go to https://www.slocleanair.org/rules-regulations/asbestos.php for more information.
➢ AQ-5 Monitoring Plan. The City shall verify receipt of the asbestos survey and work plan and verify all measures are shown on relevant site plan sheets at the time of submittal of applications for demolition, building, and construction permits, if applicable.

Mitigation Measure AQ-6. If during the demolition or rehabilitation of existing structures paint is separated from the construction materials (e.g., chemically, or physically), the paint waste will be evaluated independently from the building material by a qualified hazardous materials inspector to determine its proper management. All hazardous materials shall be handled and disposed of in accordance with federal, state, and local regulations. According to the California Department of Toxic Substances Control, if the paint is not removed from the building material during demolition (and is not chipping or peeling), the material can be disposed of as construction debris (a non-hazardous waste). The landfill operator will be contacted prior to disposal of building material

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debris to determine any specific requirements the landfill may have regarding the disposal of lead-based paint materials. The disposal of demolition debris shall comply with any such requirements. The project applicant shall document proof that paint waste has been evaluated by a qualified hazardous waste materials inspector and handled according to their recommendation to the City Community Development Department. ➢ AQ-6 Monitoring Plan. The City shall verify receipt of evidence that separated paint waste was evaluated by a qualified hazardous waste materials inspector and handled according to their recommendation, if applicable.

Biological Resources Mitigation
Mitigation Measure BIO-1. The developer shall retain a qualified biologist to conduct roosting bat surveys prior to proposed demolition/rehabilitation activities. Predisturbance surveys for bats shall include one daytime survey and one dusk survey no more than 14 days prior to the start of construction to determine if bats are roosting in the abandoned structure or in any of the trees on the property. If bats are found to be roosting on the project site, a bat exclusion plan shall be developed by the qualified biologist to ensure impacts to bats are avoided and submitted to the City for review and approval.
➢ BIO-1 Monitoring Plan. The City shall verify receipt of the survey plan and review and approve the exclusion plan, if applicable.

Mitigation Measure BIO-2 If construction activities involving ground disturbance or vegetation removal are proposed at any point during the typical nesting bird season (February 1–September 15), a nesting bird survey shall be conducted by a qualified biologist no more than 10 days prior to the start of ground disturbance to determine presence/absence of nesting birds. Surveys shall cover all areas potentially affected by the project via direct impacts (e.g., nest destruction) or indirect impacts (e.g., noise, vibration, odors, movement of workers or equipment, etc.). If nesting activity is detected, the following measures shall be implemented:
a. Buffer Establishment. If an active bird nest is observed during preconstruction surveys or during construction, the qualified biologist shall determine an appropriate no-disturbance setback based on existing conditions and bird behavior. These buffers shall remain in place until the breeding season has ended or until a qualified biologist has determined that the birds have fledged and are no longer reliant on the nest or parental care for survival. b. Variance of Buffer Distances. Variance from the no-disturbance buffers described above may be allowable when there is a compelling biological or

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ecological reason to do so, such as when the construction area would be concealed from a nest site by topography. Any variance from the no-disturbance buffers shall be advised and supported by a qualified biologist. The California Department of Fish and Wildlife may be contacted for technical assistance if recommended by the qualified biologist.
c. Nesting Monitoring. If nest buffers are reduced, the biologist shall monitor any construction activities within the pre-determined setback distance. If nesting birds show any signs of disturbance, including changes in behavior, significantly reducing frequency of nests visits, or refusal to visit the nest, the biologist will stop work and increase the nest buffer. If appropriate on a case-by-case basis, as determined by the qualified biologist, nest monitoring may be reduced to weekly spot-check monitoring, at a minimum, if the biologist determines that the nesting birds have shown no signs of disturbance from construction activities and a continuation of the same types of construction activities are unlikely to disturb the nesting birds. All monitoring reports shall be submitted to the City. d. Nest Removal. Nests, eggs, or young of birds covered by the Migratory Bird Treaty Act and California Fish and Game Code shall not be moved or disturbed until a qualified biologist has determined that the nest has become inactive or young have fledged and become independent of the nest.
e. Reporting. A qualified biologist shall document all active nests and submit a letter report to the City of San Luis Obispo documenting project compliance with the Migratory Bird Treaty Act, California Fish and Game Code, and applicable project mitigation measures.
➢ BIO-2 Monitoring Plan. The City shall verify receipt of the survey report, active nest letter report, and monitoring reports, if applicable.

Mitigation Measure BIO-3 Water Pollution Control Plan. At the time of application for demolition, grading, or building permits, whichever occurs first, the project applicant shall prepare and submit a Water Pollution Control Plan (WPCP) to be reviewed and approved by the City. The WPCP shall include, but not be limited to, the following erosion and sedimentation control methods and shall be implemented during the construction phases of the project:
a. If possible, the potential for erosion and sedimentation shall be minimized by scheduling construction activities during the dry season (June 15–October 31). b. Sediment and erosion control measures shall be developed by a qualified engineer to protect water quality and comply with appropriate local and state regulations. Measures may include the use of silt fence, straw wattles, erosion

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control blankets, straw bales, sandbags, fiber rolls, and other appropriate techniques employed to protect the drainage feature on and farther downstream of the property. All areas with soil disturbance shall have appropriate erosion controls and other stormwater protection best management practices installed to prevent erosion potential. All sediment and erosion control measures shall be installed per the engineer’s requirements.
c. Spill kits shall be maintained on the project site and a Spill Response Plan shall be in place.
d. Equipment shall be refueled in designated areas with appropriate spill containment. Equipment storage shall use drip pans or ground covers as appropriate to ensure leaks are contained. All equipment and vehicles shall be checked and maintained on a daily basis to ensure proper operation and to avoid potential leaks or spills.
e. Concrete washout shall be conducted in specified areas and with appropriate containment measures to ensure washout does not leave the site and enter the City of San Luis Obispo’s storm drain system. Washing of equipment, tools, etc., shall occur in specified locations where the tainted water will not affect the drainage or City of San Luis Obispo’s storm drain system. f. The use of chemicals, fuels, lubricants, or biocides shall be in compliance with all federal, state, and local regulations. All uses of such compounds shall observe label and other restrictions mandated by the U.S. Environmental Protection Agency, California Department of Food and Agriculture, and other federal and state legislation.
g. All project-related spills of hazardous materials within or adjacent to the project site should be cleaned up immediately.
➢ BIO-3 Monitoring Plan. The City shall review and approve the WPCP and verify all measures are shown on relevant site plan sheets.

Cultural Resources Mitigation
Mitigation Measure CR-1 Alternative Building Materials. At the time of application for building permits, building plans for the residential units shall be reviewed to verify use of alternate window materials (i.e., other than vinyl) such as wood or another synthetic material with colors and finishes that better reflect the character of the adobe and nearby historical resources.
➢ CR-1 Monitoring Plan. The City shall verify all relevant plan sheets have been updated to identify alternative window materials consistent with this measure.

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Mitigation Measure CR-2 Rehabilitation Plan Implementation. Prior to issuance of a permit for demolitions or any alterations to the Rosa Butrón Adobe, construction plans shall include all proposed treatments detailed in the approved Rehabilitation Plan shown on relevant demolition and/or building permit sheets as callouts and notes to guide the rehabilitation process and be reviewed and approved by a qualified consultant for consistency with the approved Rehabilitation Plan and SOI Standards. Final construction plans shall be reviewed and approved by the Community Development Director. The qualified consultant shall include either a historic architect that meets the SOI Qualifications in historic architecture and has demonstrable experience with the rehabilitation of historic adobe buildings, or an SOI Qualified architectural historian and a materials conservation specialist with expertise in the preservation and rehabilitation of adobe buildings. The selected consultant shall be available to assist the design and construction team throughout the execution of the project to ensure that treatment approaches compliant with the SOI Standards for Rehabilitation are being implemented.

The final construction plans shall include:
• Assessment of the building that focuses on the existing conditions of specific architectural systems (i.e. windows, doors, roof) and materials (i.e. adobe and wood siding). A condition assessment of the building’s structural systems and inclusion of mechanical and electrical systems shall also be included. • Preparation of detailed Standards compliant treatment recommendations related to the existing character-defining features of the Rosa Butrón Adobe and their preservation. In addition to the Standards, treatment recommendations should also take into consideration other appropriate guidelines and guidance documents, including publications by the National Park Service’ Technical Preservation Services.
• Description of recommendations related to the new construction at the Rosa Butrón Adobe. This should address fundamental issues including, but not limited to:
a. The appearance of the new rear elevation, including the forms, fenestration patterns, materials, and finishes;
b. How the new rear elevation will be integrated into the historic fabric of the side elevations, as well as the architectural and structural systems of the building, in a way that complies with the Standards; and

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c. Recommendations related to landscape and site improvements around the Rosa Butrón Adobe, such as drainage, to continue preserving the building in its rehabilitated configuration.
• Treatment recommendations for the continued short- and long-term maintenance of the Rosa Butrón Adobe.

The above implementation requirements shall be incorporated into construction plan submittals and shall be administered by the appropriate City Planning staff responsible for the administration of the Historic Preservation Program to the satisfaction of the Community Development Director and will be required prior to the issuance of any building or demolition permits.
➢ CR-2 Monitoring Plan. The City shall verify all proposed treatments detailed in the approved Rehabilitation Plan are shown on relevant demolition and building plan sheets. The implementation requirements shall be administered by the appropriate City planning staff responsible for the administration of the Historic Preservation Program to the satisfaction of the Community Development Director and will be required prior to the issuance of any building or demolition permits.

Mitigation Measure CR-3 Preconstruction Historic Resources Training. Prior to issuance of demolition and construction permits, whichever occurs first, all construction staff shall attend a preconstruction training session that outlines relevant information related to the treatment of historic resources. This training may be held by City staff affiliated with the City’s Historic Preservation Program, along with relevant consultants, including SOI-Qualified architectural historians, and/or contractors/craftsman with expertise related to the rehabilitation and preservation of adobe buildings. The training shall cover key concepts related to historic preservation practices and the City’s Historic Preservation Program, sensitive scope items related to the demolition and rehabilitation of the building’s historic core, and general site protocols and procedures during construction activities that are intended to protect and preserve the Rosa Butrón Adobe.
➢ CR-3 Monitoring Plan. The City shall review the submitted training materials and trainers’ qualifications to ensure compliance with this measure.

Mitigation Measure CR-4 Construction Protection Protocols. At the time of application for demolition and construction permits, whichever occurs first, construction plans shall include protection protocols that will protect the Rosa Butrón Adobe during construction activities. These measures shall address issues related to the stabilization of any deteriorated materials at the historic buildings as identified in the Rehabilitation Plan, identification of appropriate construction equipment to be used on and in proximity to the historic adobe, and on-site security measures specific to preserving the adobe

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from vandalism or other human-related damage. Protocols shall also identify emergency procedures in the event of inadvertent damage during construction, or damage sustained in the event of a natural disaster. Final construction plans shall be subject to the review and approval of the Community Development Director. ➢ CR-4 Monitoring Plan. The City shall review submitted project plans and verify all protection measures have been identified on relevant plan sheets.

Mitigation Measure CR-5 Selection of Contractors with Rehabilitation Experience.

Prior to issuance of demolition and construction permits, whichever occurs first, the City shall review and approve the applicant-chosen contractor team for the relevant demolition, rehabilitation, and construction phases of the project that has demonstrated experience with preserving and rehabilitating historic resources. Special consideration shall be given to bid teams that have staff or subcontractors with experience in the treatment of adobe buildings.
➢ CR-5 Monitoring Plan. The City shall review the selected contractor’s credentials and verify they meet the intent of this measure.

Mitigation Measure CR-6 At the time of building and/or grading permit application submittal, the project applicant shall retain a City of San Luis Obispo-qualified archaeologist to develop an Archaeological Monitoring Plan for the project. The plan shall include, but not be limited to:
a. List of personnel involved in the monitoring activities b. Description of how the monitoring shall occur;
c. Description of frequency of monitoring (e.g., full time, part time, spot checking); d. Description of what resources are expected to be encountered, including, but not limited to, mission-era artifacts;
e. Description of circumstances that would result in the halting of work at the project site;
f. Description of procedures for halting work on the project site and notification procedures;
g. Description of monitoring reporting procedures;
h. Specific, detailed protocols for what to do in the event of the discovery of human remains; and
i. Thresholds for reducing and/or discontinuing monitoring in the event resources are not present and/or the potential to encounter resources is negligible.

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The Archaeological Monitoring Plan shall be reviewed and approved by City staff prior to the issuance of project building and/or grading permits. ➢ CR-6 Monitoring Plan. The City shall review and approve the Archaeological Monitoring Plan prior to issuance of grading, demolition, or building permits.

Mitigation Measure CR-7 If cultural resources are encountered during subsurface earthwork activities, all ground-disturbing activities within a 25-foot radius of the find shall cease and the City shall be notified immediately. Work shall not continue until a City of San Luis Obispo-qualified archaeologist assesses the find and determines the need for further study. If the find includes Native American-affiliated materials, a local Native American tribal representative will be contacted to work in conjunction with the City of San Luis Obispo-approved archaeologist to determine the need for further study.

A standard inadvertent discovery clause shall be included in every grading and construction contract to inform contractors of this requirement. Any previously unidentified resources found during construction shall be recorded on appropriate California Department of Parks and Recreation forms and evaluated for significance in terms of the California Environmental Quality Act criteria by a qualified archaeologist.

If the resource is determined significant under the California Environmental Quality Act, the qualified archaeologist shall prepare and implement a research design and archaeological data recovery plan, in conjunction with locally affiliated Native American representative(s) as necessary, that will capture those categories of data for which the site is significant. The archaeologist shall also perform appropriate technical analysis, prepare a comprehensive report, and file it with the Central Coast Information Center, located at the University of California, Santa Barbara, and provide for the permanent curation of the recovered materials.
➢ CR-7 Monitoring Plan. The City shall verify halt work measures have been identified on relevant plan sheets. The City shall notify a local Native American tribal representative, if applicable. The City shall review and approve the resource evaluation and research design and archaeological data recovery plan, if applicable.

Mitigation Measure CR-8 In the event that human remains are exposed during earthdisturbing activities associated with the project, an immediate halt work order shall be issued, and the City of San Luis Obispo Community Development Director and locally affiliated Native American representative(s) (as necessary) shall be notified. California Health and Safety Code Section 7050.5 requires that no further disturbance of the site or any nearby area reasonably suspected to overlie adjacent human remains shall occur until the County Coroner has made the necessary findings as to origin and disposition pursuant to California Public Resources Code Section 5097.98. If the remains are determined to be of Native American descent, the coroner shall notify the

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Native American Heritage Commission within 24 hours. These requirements shall be printed on all building and grading plans.
➢ CR-8 Monitoring Plan. The City shall verify halt work measures have been identified on relevant plan sheets. The City shall notify a local Native American tribal representative and the County Coroner, if applicable.

Noise Mitigation
Mitigation Measure N-1 For the entire duration of the construction phase of the project, the following noise reduction measures shall be adhered to:
a. Stationary construction equipment that generates noise that exceeds 60 Aweighted decibels at the project boundaries shall be shielded with the most modern noise control devices (i.e., mufflers, lagging, and/or motor enclosures). b. Impact tools (e.g., jackhammers, pavement breakers, rock drills, etc.) used for project construction shall be hydraulically or electrically powered wherever possible to avoid noise associated with compressed air exhaust from pneumatically powered tools.
c. Where use of pneumatic tools is unavoidable, an exhaust muffler on the compressed air exhaust shall be used.
d. All construction equipment shall have the manufacturers’ recommended noise abatement methods installed, such as mufflers, engine enclosures, and engine vibration insulators, intact and operational.
e. All construction equipment shall undergo inspection at periodic intervals to ensure proper maintenance and presence of noise control devices (e.g., mufflers, shrouding, etc.).
➢ N-1 Monitoring Plan. The City shall verify noise reduction measures have been identified on relevant plan sheets.

Mitigation Measure N-2 Construction plans shall note construction hours, truck routes, and all construction noise reduction measures and shall be reviewed and approved by the City of San Luis Obispo Community Development Department prior to issuance of grading/building permits. The City of San Luis Obispo shall provide and post signs stating these restrictions at construction entry sites prior to commencement of construction and shall maintain these signs throughout the construction phase of the project. All construction workers shall be briefed at a preconstruction meeting on construction hour limitations and how, why, and where noise reduction measures are to be implemented.

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➢ N-2 Monitoring Plan. The City shall verify construction hours, truck routes, and noise reduction measures have been identified on relevant plan sheets.

Mitigation Measure N-3 For all construction activity at the project site, additional noise attenuation techniques shall be employed as needed to ensure that noise levels are maintained within levels allowed by the City of San Luis Obispo Municipal Code, Title 9, Chapter 9.12 (Noise Control). Such techniques shall include, but are not limited to, the following:
a. Sound blankets shall be used on noise-generating equipment; b. Stationary construction equipment that generates noise levels above 65 Aweighted decibels at the project boundaries shall be shielded with a barrier that meets a sound transmission class (a rating of how well noise barriers attenuate sound) of 25;
c. All diesel equipment shall be operated with closed engine doors and shall be equipped with factory-recommended mufflers;
d. The movement of construction-related vehicles, except for passenger vehicles, along roadways adjacent to sensitive receptors shall be limited to the hours between 7:00 a.m. and 7:00 p.m., Monday through Saturday. No movement of heavy equipment shall occur on Sundays or official holidays (e.g., Thanksgiving, Labor Day); and
e. Temporary sound barriers shall be constructed between construction sites and affected uses.
➢ N-3 Monitoring Plan. The City shall verify noise reduction measures have been identified on relevant plan sheets.

Mitigation Measure N-4 The project contractor shall notify residents and business operators at properties within 300 feet of the project of proposed construction timelines and noise compliant procedures to minimize potential annoyance related to construction noise. Signs shall be in place prior to and throughout grading and construction activities informing the public that noise-related complaints shall be directed to the construction manager prior to the City of San Luis Obispo Community Development Department. ➢ N-4 Monitoring Plan. The City shall verify receipt of the notice and list of recipients.

Section 2. Findings. The Planning Commission hereby makes the following findings in support of the project:

General Plan Conformance

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1. The Planning Commission hereby determines that the City’s action to authorize and/or construct buildings or structures for the purposes of developing affordable housing is in conformance with the General Plan.

Development Approval: The Planning Commission hereby grants final approval to the project (ARCH-0329-2022 and EID-0637-2022) based on the following findings:

1. The project is consistent with the Land Use Element of the General Plan because it supports the City’s land use designation’s purpose and application for MediumHigh Density Residential land uses by providing residential units at the density level specified in the zone.

2. As conditioned, the project conforms to applicable property development standards set forth in the Zoning Regulations, for the Medium-High Density Residential (R-3) zone. The proposed uses are compatible with the project site and with existing uses in the vicinity, which include multi-family residential uses.

3. The project is consistent with Housing Element Policies 7.1 and 7.3, which encourage new development that respects neighborhood character and provides pedestrian and bicycle linkages to schools, shopping areas, and parks.

4. The project is consistent with Conservation and Open Space Element Policy 3.6.9, which requires the City to preserve and rehabilitate City-owned historic adobes through techniques that help fund rehabilitation and adaptive reuse.

5. The Cultural Heritage Committee (CHC) reviewed the project on October 28, 2024, and found the project to be consistent with the City’s Historic Preservation Ordinance, with recommendations to add interpretive signage explaining the history and significance of the adobe and site.

6. The Architectural Review Commission (ARC) reviewed the project on November 18, 2024, and found the project to be consistent with the Community Design Guidelines, with the recommendation for two modifications to the design of the project.

7. The requests for a concession for a reduction of site development standards to reduce the required vehicle parking to provide 4 vehicle spaces where 29 are normally required, and to reduce the required bicycle parking to provide 26 bicycle spaces where 45 are normally required, are necessary to facilitate the production of affordable housing units in accordance with Density Bonus Law and consistent with the intent of Housing Element programs 2.17, 6.10, 6.11, and 6.19, and the alternative affordable housing incentives outlined in Section 17.140.070 of the Zoning Regulations.

Section 3. Action. The project conditions of approval do not include mandatory code requirements. Code compliance will be verified during the plan check process, which may

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include additional requirements applicable to the project. The Planning Commission hereby grants final approval to the project with incorporation of the following conditions:

Planning Division

1. Compliance with Conditions. Final project design and construction drawings submitted for a building permit shall be in substantial compliance with the project plans approved by the Planning Commission (ARCH-0329-2022). A separate, fullsize sheet shall be included in working drawings submitted for a building permit that lists all conditions and code requirements of project approval listed as sheet number

2. Reference shall be made in the margin of listed items as to where in plans requirements are addressed. Any change to approved design, colors, materials, landscaping, or other conditions of approval must be approved by the Director or Architectural Review Commission, as deemed appropriate.

2. Demolition of Structures Older than 50 Years. Demolition of portions of the existing building shall not commence until a permit has been issued by the building official.

The applicant shall comply with Municipal Code Chapter 15.04 Construction and Fire Prevention Regulations, Appendix Chapter A2 Demolition and Moving of Buildings.

3. Colors and Materials. Plans submitted for a building permit shall call out the colors and materials of all proposed building surfaces and other improvements. Colors and materials shall be consistent with the color and material board submitted with the Development Review application. The color of the exterior siding shall match that of the updated renderings presented to the Planning Commission. All color and materials in final permit drawings shall be subject to the satisfaction of the Community Development Director.

4. Number of Parking Spaces. The applicant has been granted a concession to reduce the number of required parking spaces under State Density Bonus law. The number of parking spaces to be provided are 4 vehicle spaces and 26 bicycle spaces.

5. Bicycle Parking. Plans submitted for a building permit shall clearly depict the location of all required short and long-term bicycle parking for all intended uses, as well as requiring e-bike charging access in the long-term parking area. Plans shall show all areas designated for long-term bicycle parking such as bicycle lockers, interior spaces, or storage rooms. Short-term bicycle racks shall be consistent with the City Active Transportation Plan Design Guidelines and feature “hi-low style” campus racks (such as “Peak Racks”) or City-approved equivalent (inverted “U” rack designs shall not be permitted) and shall be installed in close proximity to, and visible from, the main entries into the buildings. Sufficient detail shall be provided about the placement and design of bike racks, lockers, and interior spaces to demonstrate compliance with relevant Engineering Standards and Community Design Guidelines, to the satisfaction of the Public Works and Community Development Directors.

6. Lighting Plan. Plans submitted for building permit shall include a photometric plan,

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demonstrating compliance with maximum light intensity standards not to exceed a maintained value of 10 foot-candles. The locations of all lighting, including bollard style landscaping or path lighting, shall be included in plans submitted for a building permit. All wall-mounted lighting fixtures shall be clearly called out on building elevations included as part of working drawings. All wall-mounted lighting shall complement building architecture. The lighting schedule for the building shall include a graphic representation of the proposed lighting fixtures and cut-sheets on the submitted building plans. The selected fixture(s) shall be shielded to ensure that light is directed downward consistent with the requirements of the City’s Night Sky Preservation standards contained in Chapter §17.70.100 of the Zoning Regulations.

7. Site Maintenance. The storage area for trash and recycling cans shall be screened from the public right-of-way consistent with §17.70.200 of the Zoning Regulations.

The subject property shall be maintained in a clean and orderly manner at all times, free of excessive leaves, branches, and other landscape material. The applicant shall be responsible for the clean-up of any landscape material in the public right-ofway.

8. Landscaping. The applicant shall submit a landscaping plan containing an irrigation system plan with submittal of working drawings for a building permit. The legend for the landscaping plan shall include the sizes and species of all groundcovers, shrubs, and trees with corresponding symbols for each plant material showing their specific locations on plans. The surfaces and finishes of hardscapes shall be included on the landscaping plan. All tree preservation requirements and tree plantings shall comply with the conditions herein from the City Arborist.

9. Fences. Plans submitted for construction permits shall include elevation and detail drawings of all walls and fences. Fences, walls, and hedges will comply with the development standards described in the Zoning Regulations (§17.70.070 –Fences, Walls, and Hedges).

10. Backflow Preventer. The location of any required backflow preventer and doublecheck assembly shall be shown on all site plans submitted for a building permit, including the landscaping plan. Construction plans shall also include a scaled diagram of the equipment proposed. Where possible, as determined by the Utilities Director, equipment shall be located inside the building within 20 feet of the front property line. Where this is not possible, as determined by the Utilities Director, the back-flow preventer and double-check assembly shall be located in the street yard and screened using a combination of paint color, landscaping and, if deemed appropriate by the Community Development Director, a low wall. The size and configuration of such equipment shall be subject to review and approval by the Utilities and Community Development Directors.

11. Noise Compliance. The design of proposed structures shall incorporate noise attenuating construction techniques that reduces noise exposure to acceptable levels. Exposure in outdoor activity areas must not exceed 65 dB and indoor exposure must not exceed 45 dB consistent with the City’s Noise Ordinance. Plans

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submitted for construction permits must clearly indicate and describe noise attenuation measures, techniques, and materials, and demonstrates their compliance with noise levels limits.

12. Signage. Prior to final occupancy, interpretive historical signage shall be installed to the satisfaction of the Community Development Director. The interpretive signs shall reflect all periods of significance and the cultural narrative of the site. The layout, content, and narrative of the interpretive signage shall be prepared by a qualified historic consultant and reviewed by the Cultural Heritage Committee.

13. Expiration of Entitlement. If the required building permits are not submitted for the site development within three years of this discretionary action, the approval shall expire. Requests for renewals may be granted in conformance with §17.104.070.

Housing Programs – Community Development Department

14. Affordable Housing Agreement. Prior to issuance of building permits, the City and the applicant shall enter into an Affordable Housing Agreement, to be recorded in the office of the county recorder. The agreement shall specify mechanisms or procedures to assure the continued affordability and availability of the residential units to low-income households, to the satisfaction of the Community Development Director.

Engineering Division – Public Works/Community Development

15. The building plan submittal shall include a complete site plan with all property lines, dimensions, easements, survey monumentation, public rights-of-way, and existing improvements for reference. The plans shall include the most current Boundary Survey summary and Record of Survey prepared by MBS Land Surveyors. The property line identifications shall correctly show and label the northerly property line, if the deed calls are to the centerline (thalweg) of Stenner Creek in accordance with the latest Record of Survey.

16. The building plan submittal shall show all existing private or public easements, including any shared driveway easement/agreement. The submittal shall provide copies of easements if not otherwise included as embedded links in a Preliminary Title Report.

17. The building plan submittal shall show and reference any existing improvements to remain, including any encroachments of site, structure, or utility improvements from the adjoining properties. The site/civil plans shall show and reference the “sliver” parcel and related survey monumentation for reference.

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18. The building plan submittal shall include a complete site development plan showing all existing and proposed public and private improvements including utility identification and abandonments.

19. A pre-construction meeting shall be scheduled by the developer prior to the commencement of any construction activities including but not limited to demolition, construction staging, site preparation, or tree removals/pruning. The inspection shall include the contractor(s) of record, building, public works, and stormwater inspectors, City Arborist, project planner, and City Natural Resources Manager or City Biologist.

20. The applicant/contractor shall provide written notice to the neighboring property owner and tenants located at 460-464 Dana 90 days prior to commencing with construction that could affect their access. A copy of said notice shall be provided to the City Planning Division. If the original notice only includes a general schedule, a separate notice(s) with detailed access closures, etc. shall be provided a minimum of 10 days prior to any closure.

21. A separate encroachment permit will be required for all work or construction staging within the public right-of-way.

22. Any sections of damaged or displaced curb, gutter, and/or sidewalk shall be repaired or replaced to the satisfaction of the Public Works Department. The plans shall show or note the limit of the known sidewalk replacement. All or portions of the existing detached/parkway sidewalk improvements may need to be replaced with integral sidewalk per City Engineering Standards. The applicant shall contact the Engineering Division to coordinate a detailed site walk to clarify the limits and types of improvements to be shown in the building plan submittal.

23. The details of the existing driveway approach, if proposed to remain, shall be included in the plan submittal. If proposed to remain, a design exception may be required to the approval of by the City Engineer.

24. The plans shall show and label all existing frontage improvements and utilities located along the Dana Street frontage. Additional clarification may be required to determine whether one or more sewer laterals may exist along the parcel frontage.

The plans shall identify the 1” pipe/valve that is located within the parkway. The valve and any piping shall be abandoned or upgraded per City Engineering Standards to the satisfaction of the City Engineer.

25. The site plan shall provide any additional information or discovery on the abandoned piping system and improvements located near the top of creek bank. The plans and reports shall clarify where the existing or former private waste disposal system, septic tank, and/or leach fields might exist. If not discoverable or if records of their

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abandonment do not exist, the plan shall include notes to provide direction to the contractor(s) on the steps to take upon any discovery of a former private waste system.

26. The site plan shall show all existing buildings and improvements along with the proposed disposition. Neighboring structures and site improvements shall be shown for 464 Dana for reference. Show all existing and proposed parking areas and compliance with the Parking and Driveway Standards.

27. The site plan shall show and label the existing sections of historic granite curbing (2 sections) leading into the existing unimproved parking area. The plan and reports shall clarify the proposed disposition or re-use of the granite. If not proposed or conditioned for use within the site, these sections shall be retained as City property.

28. The site plan shall show the location of the solid, recycle, and green waste container storage areas per City Standards and guidelines. The solid waste container placement in the public right-of-way shall be shown and noted on the plans to the satisfaction of the Public Works Department and San Luis Garbage Company.

Special curb painting or other strategy may be required to accommodate the weekly placement and pick-up of the containers to the satisfaction of the City.

29. Provide a complete and accurate site plan showing all existing and proposed utilities, and utility abandonments. The plan shall show and label both the existing overhead electrical service and separate tele-com wiring service drops for reference. The plan shall clarify that all wire services to the existing and proposed units shall be underground. Provide a proposed utility plan for reference. The plan should show and note that all wire services to the new campus shall be underground. The utility/demolition plans shall show the existing gas service and note the termination at the gas main in accordance with City and Gas Company standards.

30. The PGE preliminary memo and final handout package shall be reviewed and approved by the City prior to commencing with the pertinent construction. The undergrounding of the electrical service and tele-communication wiring shall be accomplished without a net increase in utility poles located within the public right-ofway unless specifically approved by the Community Development Director.

31. The plans and reports shall clarify the proposed and required fire sprinkler system(s) to the satisfaction of the Building Division and Fire Department. The residential systems shall be in accordance with City Standards and the pertinent NFPA Standards. Unless an amended underground is approved for a 2” service lateral, the plans and related standard references shall be amended. Likewise, if a 2” underground service is endorsed, the plans shall reference the appropriate 2” fire service standard.

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32. The final foundation design shall show and note compliance with the California Building Code for vertical and lateral loading, tree preservation requirements/strategies, and the Floodplain Management Regulations.

33. Provide a preliminary grading and drainage plan for reference. Include some analysis of the adjoining upslope watershed to clarify whether run-on is expected in non-flood storm events. The project shall show how any run-on will be accepted and conveyed in a non-erosive manner to an approved outlet.

34. The plans and submittal shall show and note compliance with the Drainage Design Manual (DDM), the Floodplain Management Regulations, and the Post Construction Stormwater Regulations (PCR’s).

35. The preliminary drainage report shall include a response to the bulleted items in Section 2.3.1 of the DDM. This area may be considered part of the in-fill area of downtown. The report may still need to consider the project impacts on existing and proposed flooding depths and velocities in accordance with the Floodplain Management Regulations and FEMA requirements. The report may need to be expanded to analyze and clarify the difference in flood storage volume, worst-case pre vs. post cross-section, and analysis of the ultimate foundation design.

36. The plans and reports shall show and note the Base Flood Elevation (BFE) in accordance with the FIRM and FIS. The plans and reports shall clarify the strategy for elevating the new structures and building service equipment at least 1’ above the BFE. Additional freeboard beyond the proposed 1.1 foot is recommended to avoid conflicts based on normal construction tolerances and to improve the resiliency of the campus. The detailed plans for the units shall be provided in conjunction with this analysis to confirm whether any additional freeboard/protections are required for building service equipment, ducting, envelope insulation, etc. in accordance with FEMA standards. Depending upon the final design and analysis, the certification of the design elevation of the foundation system/finish floor may be required prior to foundation inspection approvals.

37. The plans and project description should clarify the scope of work and proposal for the remodel of the existing residence to remain. Show the finish floor elevation of the adobe structure compared to the Base Flood Elevation. Show and note compliance with the regulations for the proposed remodel/adaptive reuse of the existing historic structure and how structures that are substantially remodeled and/or substantially damaged comply with the current regulations. This Master List Historic structure is considered to be exempt from these provisions if the structure remains as master listed after the remodel. Any new building service equipment or utility are not exempt from compliance with the regulations and protection from flood damage.

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Some passive protections or “dry” floodproofing are recommended for the existing structure to remain.

38. The final drainage report shall show and note compliance with the PCR’s. Provide a completed checklist and supporting plans and exhibits that document the existing and proposed impervious areas, performance requirements, and proposed performance strategies. The analysis shall include a detail of all existing and proposed impervious surfaces. Unless otherwise exempt, the plan and analysis shall include the square footage of all new or altered “impervious” walkways, ramps, deck structures, parking areas, and drive aisles. The plans and report shall clarify how the DMA-A2 drainage area that has run-off directed toward Dana Street will be treated for Performance Requirement 2 (PR-2), water quality.

39. The building plan submittal shall include the complete site plan and tree survey.

Show and note the diameter and species of each tree. Include a summary of trees to be removed, relocated, or retained along with any pertinent tree protection measures. The plan shall show and label any off-site trees that have tree canopies/root zones that could extend into this campus and could be affected by the proposed construction. The plans and reports shall include all tree protection notes and improvements to the satisfaction of the consulting arborist and City Arborist.

City Arborist – Public Works

40. The project shall replant, at a minimum, one tree for every tree removed. All trees replanted shall be 15-gallon or 24-inch box trees. If the compensatory trees cannot be accommodated onsite to the satisfaction of the City Arborist, they will be required at a 2:1 rate offsite. Tree species and size selections are also subject to City Arborist approval.

41. Street trees are required at a minimum rate of one (1) 15-gallon street tree for each 35 linear feet of frontage. The plans shall show all existing and proposed street trees.

Tree species selections are subject to City Arborist approval.

42. All compensatory trees shall be planted per the City’s Engineering Standards for tree planting prior to final building inspection. All trees planted as part of a compensatory plan shall survive and any trees that do not survive or establish in good health shall be replanted.

43. The building plan submittal shall show all existing trees to be removed and trees to be retained. The plan shall show any neighboring trees with canopies/root zones within the area of construction disturbance. Tree protection measures shall be shown and noted on the building plans in accordance with the Tree Assessment (December 15, 2023) to the satisfaction of the City Arborist.

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44. In accordance with the Construction Best Practices outlined in the Tree Assessment, the Project Arborist shall review and approve the proposed tree protection measures prior to commencing with any demolition, grading, or construction. The Project Arborist shall approve any safety pruning, the cutting of substantial roots (greater than 2-inches in diameter), or grading within the dripline of trees. A city-approved arborist shall complete pruning using ISA best practices. All required tree protection measures shall be shown or noted on the building plans.

45. A substantial amount of work will be taking place in the critical root zone of both a 30-inch DBH and 36-inch DBH Coast Live Oak. Additional tree protection measures need to be put in place to protect the critical root zone to the satisfaction of the City Arborist. This could include the use of plywood or the application of thick mulch to minimize compaction to the critical root due to foot traffic or construction equipment.

The Project Arborist shall be onsite to monitor any digging, or boring taking place in the critical root zones of any trees to be protected.

46. Consider removing the 37-inch DBH Avocado, shown as protected in the Tree Assessment Report. Avocados are known for their shallow and sensitive root systems. The grading for the ADA parking could send the tree into decline. Older trees can be considerably more sensitive to damage than younger trees. The tree’s canopy will also need to be cut back to prevent avocados from falling the parking lot area. This loss of canopy will also negatively affect the tree’s ability to recover from damage to or loss of its critical root zone.

47. California Fish and Game Code Section 3503.5 and the Migratory Bird Treaty Act of 1972 prevents the removal of trees with active nests. To account for most nesting birds, removal of trees should be scheduled to occur in the fall and winter (between September 1st and January 31st) and after the young have fledged. If removing trees during the nesting season (February 1st to August 31st), a qualified biologist shall inspect any trees marked for removal that contain nests to determine if the nests are active. If there are active nests, trees shall not be removed and may only be removed once a qualified biologist provides a confirmation memo that breeding / nesting is completed, and young have fledged the nest prior to removal of the tree to the satisfaction of the Community Development Director or City Biologist.

48. A final landscaping plan, including irrigation details and plans, shall be submitted to the Community Development Department along with working drawings. The legend for the landscaping plan shall include the sizes and species of all groundcovers, shrubs, and trees with corresponding symbols for each plant material showing their specific locations on plans.

Natural Resources – Office of Sustainability

49. Nesting Birds. All tree removals associated with development at the project site shall be scheduled to occur outside of the typical nesting bird season (February to September), to avoid potential impacts to nesting birds in accordance with

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Government Code Section 3503 and 3505.5.

50. Sediment and Erosion Control Plan. Plans submitted for a building permit shall include a sediment and erosion control plan that protects the creek banks and channel from erosion and prevent sedimentation of the creek near and downstream from the site. Current Best Management Practices (BMP) should be utilized.

Washing of concrete, paint, tools, or equipment shall occur only in areas where polluted water and materials can be contained and removed from the site.

51. Construction Buffer. Prior to construction activities of any new structures in areas within 20 feet of the channel, a setback area of 5-feet from the outer edge of riparian vegetation will be fenced with orange construction fencing and signed to prohibit entry. To control sedimentation during and after project implementation, silt fencing shall be installed adjacent to, and outside the orange construction fencing. Once construction in the 20-foot setback is complete, the fencing may be removed.

52. Construction Site Maintenance. During construction, no litter or construction debris shall be placed within the setback. All such debris and waste will be picked up daily and properly disposed of at an appropriate site. In addition, all project-generated debris, building materials, and rubbish will be removed from the setback and from areas where such materials could be washed into the channel.

53. Construction Activity. All refueling, maintenance, and staging of equipment and vehicles shall occur at least 50 feet from the channel and in a location where a potential spill would not drain directly toward the channel. Prior to the onset of work activities, a plan will be in place for prompt and effective response to any accidental spills.

54. Creek Preservation. Plans submitted for a building permit shall not include any improvements, modifications, or grading within the top of bank of the creek channel.

Utilities Department

55. The building permit submittal shall include a site utility plan showing the size of existing and proposed sewer and water services. The proposed utility infrastructure shall comply with the latest engineering design standards effective at the time the building permit is obtained and shall have reasonable alignments needed for maintenance of public infrastructure along public roads. All residential units are to be individually metered, with the possibility to consider submetering feasibility, subject to the approval of the Utilities Director. Backflow preventors shall be provided for the domestic and landscape (if required) water meters, to the satisfaction of the Utilities Director. Fire flow service shall pass through a double-check backflow device.

56. The building permit submittal shall include a final landscape design plan and irrigation plan and shall identify the square footage of landscaping proposed as part of the project. If greater than 500 square feet, applicant shall provide a Maximum

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Applied Water Allowance (MAWA) calculation. The project’s estimated total water use (ETWU) to support new ornamental landscaping shall not exceed the project’s maximum applied water allowance (MAWA). If the project includes one thousand square feet of landscaping or greater, the project shall provide a separate city-owned landscape water meter.

57. Plans submitted for a building permit shall comply with the City’s Development Standards for Solid Waste Services. Plans shall show the location and size of the bin enclosure(s) that can store the required containers for waste, recycling, and organics. Plans shall show the location of the discarded materials containers during pickup if different than the location of the proposed enclosure(s). Provide a copy of the service review letter from San Luis Garbage within the plan set.

58. Potable city water shall not be used for major construction activities, such as grading and dust control. Recycled water is available through the City’s Construction Water Permit program.

Fire Department

59. Plan sets shall include a separate sheet/s titled F identifying the following fire and life safety features for the specific project. Site or Civil work involving water supply information, underground fire line size and location, fire apparatus access and turnarounds, location of public/private fire hydrants, fire lanes, location of backflow device, fire department connection, maximum grade and cross slope, and other information pertinent to the site. An architectural drawing showing location of fire sprinkler riser, fire alarm control panel, Knox Box, address numbers, suite numbers, exiting plan, exit signs, emergency lights, fire extinguishers, door/hardware schedule, duct detectors, elevator/shaft information, high piled storage areas, trash locations, required signage, location of exterior awnings, or any other pertinent information pertaining to the project.

60. Sheet/s titled F shall contain a fire department NOTES section containing requirements for the individual project. Comments or notes which have been cut and pasted from previous projects which do not pertain to, or contain wrong information for, the project being reviewed will be returned for correction and cause a delay in the plan review process. An example of a standard note might include (Buildings undergoing construction shall maintain fire safety at all times and shall be in accordance with Chapter 33 of the 2022 California Fire Code). Notes should also include any deferred submittal items such as fire protection systems or rack storage.

Be mindful that all code references shall be to current code editions.

Indemnification

61. Indemnification. The applicant shall defend, indemnify and hold harmless the City and/or its agents, officers and employees from any claim, action or proceeding against the City and/or its agents, officers or employees to attack, set aside, void or

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annul, the approval by the City of this project, and all actions relating thereto, including but not limited to environmental review (“Indemnified Claims”). The City shall promptly notify the applicant of any Indemnified Claim upon being presented with the Indemnified Claim and the City shall fully cooperate in the defense against an Indemnified Claim.

On motion by Commissioner Tolle, seconded by Commissioner Jorgensen, and on the following roll call vote:

AYES: Commissioner Flores, Commissoner Jorgensen, Commissioner Kahn, Commissioner Tolle, Vice Chair Houghton, and Chair Cooley NOES: None
REFRAIN: None
ABSENT: Commissioner Munoz-Morris
The foregoing resolution was passed and adopted this 11th day of December, 2024. ____
Tyler Corey, Secretary
Planning Commission

City of San Luis Obispo, Council Memorandum
City of San Luis Obispo
Council Agenda Correspondence
DATE: March 4, 2025March 4, 2025
TO: Mayor and Council
FROM: Timmi Tway, Community Development Director
Prepared By: David Amini, Housing Coordinator
VIA: Whitney McDonald, City Manager
SUBJECT: ITEM 6B - INTRODUCE AN ORDINANCE AMENDING TITLE 16 (SUBDIVISION REGULATIONS) AND TITLE 17 (ZONING
REGULATIONS) OF THE CITY’S MUNICIPAL CODE (CODE-0031-2025) Staff received the following questions. The questions are below with staff’s response shown in italics:
1) Is there any law or guidance on whether major or minor lot splits should be allowed in areas mapped under SB 99 as having limited evacuation routes? The Climate Adaptation and Safety Element identifies areas within the City that have limited evacuation routes under the requirements of SB 99. The state law governing lot splits, Government Code Section 66499.41 (9), does not directly include these areas in the list of parcel characteristics that are excluded from the lot provisions of state law. This Section does exclude parcels located in very high fire hazard severity zones. Based on the current Fire Hazard Severity Zone map, which was last updated in 2011, there are 17 parcels on San Luis Drive that are located in the very high fire hazard severity zone and would be excluded from subdividing under the provisions of Government Code Section 66499.41 (9).This neighborhood is also identified in the City’s Safety Element as having limited evacuation routes. The Fire Hazard Severity Zone map is scheduled to be updated within the coming months. The City’s Major and Minor Lot Split regulations refer directly to the Government Code section above for exclusions. 2) Can you provide an example of what a SB 684 major lot split could look like in SLO?
Staff plans on publishing a handbook style document, similar to HCD’s existing ADU handbook, that shows what could be done with a major or minor urban lot split in order to provide clarity to the public.

With a major lot split, a property owner of either a vacant R-1 lot, or a lot zoned R2 or above can apply for and be granted a new subdivision map and associated residential development of up to 10 units/lots, with each resulting lot being no smaller than six hundred square feet, approved in a streamlined fashion, providing

Item 6b. Introduce an Ordinance Amending Title 16 and Title 17 (CODE-0031-2025) Page 2 the application meets all of the objective requirements of the regulations. These regulations will allow homeowners and developers to have multiple avenues to achieve a higher density on underutilized R-2 or above residentially zoned properties, either through the major lot split route or through the ADU updates.

If you take the example of a standard, 5,000 to 10,000 square foot R-2 zoned lot with an existing single family home and large yard, the major lot split would allow the property to be split and another single family home permitted on the newly split lot that has more square footage than an ADU, and would be able to be sold separately from the original house. This could allow for more homeownership opportunities in existing City neighborhoods, and could allow existing homeowners to leverage their land to realize higher equity in their homes. We have seen the existing minor lot split regulations under SB-9 be used to achieve this type of development – the major lot split will expand this opportunity to all other residential zones of the City.
3) How do the proposed zoning code changes comply with SB 1211, which allows up to eight detached ADUs on a multifamily property? How is the maximum amount of units calculated?
The updates to the zoning code remove language that restricted the amount of accessory dwelling units on a lot to one ADU and one JADU. This allows applicants to apply under the auspices of state law established under SB 1211. The law allows an applicant to construct up to eight detached ADUs on a property with an existing multifamily dwelling. The number of ADUs is restricted to be no more than the number of existing units on the site, per state law. Therefore, if there is a property with an existing 4-unit apartment building, the owner can apply to build up to 4 detached ADUs. The ADUs can share walls and be attached to each other, but must be detached from the existing multifamily dwelling. State law provides minimum setbacks, heights, and design standards for these ADUs. The City code imposes the development standards of the underlying zone on these ADUs, which are more permissive than state law requirements.
4) What are the “specific, adverse impacts” under state law that a local agency may deem an application for a housing development project associated with an urban lot split noncompliant?
State law regarding lot splits is found in, which states that “a local agency shall not disapprove the housing development project or emergency shelter, or condition approval in a manner that renders the housing development project or emergency shelter infeasible, including through the use of design review standards, unless it makes written findings, based upon a preponderance of the evidence in the record, as to the following:

Item 6b. Introduce an Ordinance Amending Title 16 and Title 17 (CODE-0031-2025) Page 3 (2) The housing development project or emergency shelter as proposed would have a specific, adverse impact upon the public health or safety, and there is no feasible method to satisfactorily mitigate or avoid the specific, adverse impact without rendering the development unaffordable to low- and moderate-income households or rendering the development of the emergency shelter financially infeasible. As used in this paragraph, a “specific, adverse impact” means a significant, quantifiable, direct, and unavoidable impact, based on objective, identified written public health or safety standards, policies, or conditions as they existed on the date the application was deemed complete. The following shall not constitute a specific, adverse impact upon the public health or safety:
(A) Inconsistency with the zoning ordinance or general plan land use designation.
(B) The eligibility to claim a welfare exemption under subdivision (g) of Section 214 of the Revenue and Taxation Code.”
This portion of state law also states the following:
“It is the intent of the Legislature that the conditions that would have a specific, adverse impact upon the public health and safety, as described in paragraph (2) of subdivision (d) and paragraph (1) of subdivision (j), arise infrequently.” The state law clearly dictates that there are very few cases where a specific, adverse impact upon the health and safety of the public would arise from a housing project associated with an urban lot split. The City zoning code, as updated, directly refers to this portion of state law as the only way where the director can deem an application for a lot split as noncompliant. Given that there are no clear lists or enumeration of the specific types of impacts that would constitute “specific, adverse impact” under state law, such determinations will continue to require careful site and fact specific analysis and the burden would fall entirely on the City to justify the denial of a project on that basis. That analysis will continue to evolve with continued changes to state law and judicial interpretations of the laws.

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Department: Community Development
Cost Center: 4006
For Agenda of: 3/4/2025
Placement: Public Hearing
Estimated Time: 60 minutes
FROM: Timmi Tway, Community Development Director
Prepared By: David Amini, Housing Coordinator; Teresa McClish, Principal Planner SUBJECT: INTRODUCE AN ORDINANCE AMENDING TITLE 16 (SUBDIVISION REGULATIONS) AND TITLE 17 (ZONING REGULATIONS) OF THE

MUNICIPAL CODE ADDRESSING STATE LEGISLATIVE UPDATES ON

ACCESSORY AND JUNIOR ACCESSORY DWELLING UNITS AND

URBAN LOT SPLITS, AND CLARIFICATIONS TO RE

RECOMMENDATION
As recommended by the Planning Commission, introduce a Draft Ordinance entitled, “An Ordinance of the City Council of the City of San Luis Obispo, California, approving an update to the City’s Subdivision Regulations (Title 16) and Zoning Regulations (Title 17) to implement State Legislative Updates on Accessory and Junior Accessory Dwelling Units and Urban Lot Splits; and an Update to the City’s Zoning Regulations (Title 17) to Provide Clarifications to Regulations for Affordable Housing Projects with an Exemption from Environmental Review (CEQA).”

POLICY CONTEXT
The California State Legislature has passed numerous bills that require updates to the City’s Municipal Code to maintain consistency with state housing law. The proposed amendments to comply with state law, as well as other amendments identified for more efficient processing or clarification, are supported by City policy as described below.

On November 17, 2020, the City Council adopted the 6th Cycle Housing Element, which includes housing policies and programs for 2020-2028. Accessory Dwelling Units (ADU) are an important part of the City’s housing production, address state mandated Regional Housing Needs Allocation (RHNA), and help the City meet housing policy goals. The Housing Element contains the following policies that encourage housing production.

HE Policy 2.4: Encourage housing production for all financial strata of the City's population, as allocated in the Regional Housing Needs Allocation, for the 6th cycle planning period. The number of units per income category are: extremely low and very low income, 825 units; low income, 520 units; moderate income, 604 units; and above moderate income, 1,405 units.

HE Policy 8.1: Encourage housing development that meets a variety of special needs, including large families, single parents, disabled persons, the elderly, students, veterans,

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farmworkers, the homeless, or those seeking congregate care, group housing, singleroom occupancy, or cohousing accommodations, utilizing universal design.

HE Policy 6.8: To help meet the 6th cycle RHNA production targets, the City will support residential infill development and promote higher residential density where appropriate.

The State Housing and Community Development department (HCD) allows the City to count one-half of ADU production towards moderate income affordable housing allocations. ADU production allows important infill opportunities and missing middle housing typologies through a variety of detached and attached formats in both singlefamily and multi-family residential districts. Amending the City’s subdivision regulations for urban lot splits expands the types of lots eligible for subdivision in multi-family districts and supports additional residential infill projects. Community Development Department (CDD) staff also periodically reviews the City’s Zoning Regulations to identify possible barriers to development, including affordable housing development. Several of the proposed amendments provide additional clarifications on regulations. This is especially important as housing production is an integral part of the Housing and Homelessness Major City Goal:

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.

REPORT-IN-BRIEF
The California State Legislature passed numerous bills that went into effect in 2024 and at the beginning of 2025, introducing new or altered state laws related to ADUs, junior accessory dwelling units (JADUs), and urban lot splits, requiring amendments to the City’s subdivision and zoning regulations.

In accordance with Government Code §65585, on September 11, 2024, HCD provided the City’s Community Development Department with a letter outlining thirteen purported inconsistencies between the City’s Zoning Regulations and state ADU law. Many cities and counties in California received a similar letter, as HCD has indicated their intent to more strictly enforce these laws. As the state agency tasked with interpreting and enforcing state housing law, HCD is requiring that amendments be made to the City’s Zoning Regulations to address these inconsistencies, or for CDD to provide to HCD an explanation as to how the City’s regulations are already consistent with state ADU law.

HCD’s letter and CDD’s response can be viewed in Attachment C.

The proposed amendments seek to bring the City’s Municipal Code into compliance with state law per new legislation regarding ADUs, JADUs, and urban lot splits and correspondence from California’s Department of Housing and Community Development.

In addition to state law compliance, some of the proposed amendments address miscellaneous items identified via community feedback that seek to alleviate possible barriers to housing development and streamline regulations and processes. The two sections of the City’s Municipal Code being amended are the City’s Subdivision Regulations in Title 16, and the Zoning Regulations in Title 17. Due to the continuing

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legislative updates to state housing law, Staff anticipates a second update to the Subdivision and Zoning Regulations later this year.

DISCUSSION
New State Legislation
Several new significant state laws were recently passed that necessitate changes to local regulations in the municipal code, as outlined in the letter received from the State on September 11, 2024. These laws include:
 Senate Bill No. 477 reorganized and renumbered various state code provisions relating to the creation and regulation of ADUs and JADUs, consolidating them into Chapter 13 of Division 1 of Title 7 of California’s Government Code (sections 66310 through 66342).
 Senate Bill No. 1211 introduced several changes to Government Code sections 66313, 66314, and 66323, which deal with state ADU law. This bill prohibits local agencies from requiring the replacement of off-street parking spaces if an uncovered parking space is demolished in conjunction with the construction of, or conversion to, an ADU.

It also prohibits local agencies from imposing any objective development or design standard not authorized by the provisions listed in state ADU law and provides a definition for the phrase “livable space” as being “a space in a dwelling intended for human habitation, including living, sleeping, eating, cooking, or sanitation.” Lastly, this bill allows up to eight detached ADUs to be developed on a lot with an existing multifamily dwelling, provided that the number of ADUs does not exceed the number of existing units on the lot.
 Senate Bill No. 450 introduced several changes to Government Code sections 65852.21 and 66411.7, which deal with urban lot splits and resultant residential development. This bill removes a local agency’s ability to deny a proposed housing development associated with an urban lot split on the basis that it would have a specific, adverse impact on the physical environment. This bill also specifies that a local agency must consider and approve or deny a proposed housing development project associated with an urban lot split within 60 days of receiving a complete application. If the local agency denies the application, they are required to provide a list of items that are defective or deficient and a description of how they can be resolved by the applicant.
 Senate Bill No. 684, codified in Government Code sections 65852.28, 65913.4.5, and 66499.41, allows the subdivision of a multi-family zoned lot less than 5-acres in size into 10 or fewer lots at a minimum lot size of 600 square feet for the subsequent development of 10 or fewer residential units. The number of lots and the number of residential units need not be the same. For example, a property may be subdivided into four lots while still being allowed to develop up to 10 residential units. The provisions introduced under this bill are discussed in more detail below. Subdivisions under Government Code 66499.41 are referred to in this update as “major urban lot splits.”

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 Effective July 1, 2025, Senate Bill No. 1123 will implement several changes to the provisions introduced under Senate Bill No. 684. This bill expands the types of lots eligible for major urban lot splits and adds new requirements and allowances for these developments. The proposed amendments incorporating major urban lot splits into the municipal code are intended to proactively comply with this law.

HCD Letter - Accessory Dwelling Units
Letter from California’s Department of Housing and Community Development On September 11, 2024, CDD received a letter from HCD1 outlining inconsistencies between the City’s Municipal Code and California’s Government Code regarding ADUs.

CDD provided a response to the 13 items identified by HCD that described how the City would propose to amend the Municipal Code or how the code is already in compliance with state law. Both HCD’s letter and CDD’s response can be reviewed in Attachment C.

Below is a brief overview of the items identified by HCD that will require amendments to Chapter 17.86 of the City’s Municipal Code.
 Statutory Numbering: Senate Bill 477 restructured and relocated state ADU code to Chapter 13, of Division 1, of Title 7, of the Government Code. This means that existing references to state code pertaining to ADUs are now outdated. The proposed ordinance provided in Attachment A contains numerous changes to statutory references throughout the City’s Municipal Code.
 Zones: The City’s existing Zoning Regulations permit ADUs in the following zones:

AG, C/OS, R-1, R-2, R-3, R-4, and O. HCD claimed that this list is not inclusive of all zones that would allow ADUs as described under Government Code 66314, which states that ADUs are to be allowed in a lot zoned for single-family or multi-family dwellings and has a proposed or existing dwelling. The proposed code update would amend the Zoning Regulations to include the C-N, C-C, C-R, C-D, C-T, C-S, and M zones in this existing list of zones where ADUs are permitted. (Attachment A - Section 13; 17.86.020(B)(3))
 Mixed Use: The City’s existing Zoning Regulations state that structures containing both commercial and residential uses are not considered residential structures, prohibiting the development of ADUs on such properties. Government Code 66323 states that ADUs described under that section are to be permitted in residential or mixed-use zones with proposed or existing single-family or multi-family dwellings.

Additionally, Government Code 66314 permits ADUs on any lot zoned to allow residential use with a proposed or existing dwelling. The proposed code update would remove exemption of mixed-use structures from the ADU Regulations, thereby allowing ADUs to be developed on mixed-use properties. (Attachment A – Section 13;

17.86.020(B)(3))
 Max Sizes: The City’s existing Zoning Regulations specify gross floor area limits as allowed by the Government Code. However, these regulations do not account for ADUs that qualify under Government Code 66323, which prohibits local agencies from

1HCD has statutory authority to review local agencies’ ADU ordinances and to enforce State ADU Laws (see Govt. Code §65585.)

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imposing specific gross floor area limitations on certain ADU configurations described under said section. The proposed code update would add language exempting ADUs that qualify under this section of state law from the City’s gross floor area requirements. (Attachment A – Section 13; 17.86.020(B)(3))  ADU Allowance: The City’s existing Zoning Regulations state that only one ADU is permitted per lot. They also state that the provisions of Government Code 65852.2(e) (now 66323) cannot be combined with other ADU provisions outlined in the City’s Municipal Code. This now conflicts with Government Code 66323 that states “a local agency must ministerially approve an application for a building permit… to create any of the following: (1) One accessory dwelling unit and one junior accessory dwelling unit…” The use of the word “any,” followed by an enumeration of by-right ADU types permitted, implies that any of the said types can be combined. This permits a property zoned for a single-family residence, that meets specified requirements, to create one converted ADU, one detached, new construction ADU, and one JADU via Government Code 66323. The proposed code update would remove language from the Zoning Regulations that limit the number of ADUs permitted on a residential property. (Attachment A – Section 13; 17.86.020(B)(3))
 Sprinklers: The City’s existing Zoning Regulations state that fire sprinklers are not required in an ADU if fire sprinklers are not required in the existing primary residence.

Government Code 66314 supports this, but also stipulates that the construction of an ADU will not trigger a requirement for fire sprinklers to be installed in the existing primary residence. The proposed code update would add this additional fire sprinkler language to the Zoning Regulations. (Attachment A – Section 13; 17.86.020(B)(3))  Denial Requirements: Government Code 66317 outlines the required timeline for a local agency to review and provide a decision on an ADU application, as well as guidelines for a local agency to follow in the event of application denial. These guidelines require a local agency to provide a full set of comments to the applicant with a list of items that are defective or deficient and a description of how those items can be resolved. The City’s existing Zoning Regulations include language for the required timeline but does not address application denials. The proposed code update would add this language for compliance with state law. (Attachment A – Section 13;

17.86.020(B)(4))
 JADUs on Multiple Single-Family Lots: The City’s existing Zoning Regulations state that a junior accessory dwelling unit (JADU) may be located on a lot that contains “one” existing or proposed single-family structure. Government Code 66333 states “one [JADU] per residential lot zoned for single-family residences with a single-family residence built, or proposed to be built, on the lot.” The use of “a” implies that one JADU may be allowed on a lot that contains more than one single-family structure, which the Zoning Regulations restricts. The proposed code update would change the Zoning Regulations to address this discrepancy. (Attachment A – Section 13;

17.86.020(C)(2))
 JADUs, Sanitation, and Interior Entry: The City’s existing Zoning Regulations state that an interior connection to the residence that a JADU exists within may be maintained or removed. Government Code 66333 specifies that JADUs that do not

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contain a separate bathroom must maintain an interior entrance to the main residence in addition to the required separate exterior entrance. The proposed code update would add this language to the Zoning Regulations. (Attachment A – Section 13;

17.86.020(C)(3))
 Short Term Rental: HCD asserted that because Government Code 66333 does not provide language for rental term limits for JADUs, the City’s Zoning Regulations, which prohibit rental terms of less than 30 days for JADUs, are inconsistent with state law on the matter. The City responded to HCD, stating its intent to preserve this element of the City’s Municipal Code to ensure housing affordability as well as consistency with other elements of the code regarding ADUs. The City further expressed that ADUs and JADUs represent a significant portion of the City’s new housing stock, and removing this portion of the code as suggested by HCD would reduce a considerable portion of available housing in favor of short-term rental income for investors.

Government Code 66333 does not expressly prohibit the City from imposing minimum rental terms for JADUs, and the City believes its interpretation is consistent with state law and furthers the state law’s purpose of housing production.

Additional Amendments Pertaining to ADUs
In addition to the changes described above, staff proposes several miscellaneous amendments related to ADUs. These changes were identified through discussions with builders, developers, and property owners, as possible barriers to housing development or possible inconsistencies with state law that were not identified by HCD. These proposed amendments are as follows:
 ADU Design: The current zoning regulations require that new ADUs match the primary residence in style, form, and materials. As state law continues to require objective design standards regarding ADUs, these specific requirements can be subjective in nature, challenging to implement, and do not always result in the best building design. CDD has received numerous requests from community members to remove these provisions in order to allow more flexibility in the design of ADUs. This proposed ordinance update would remove this language from the Zoning Regulations. (Attachment A – Section 13; 17.86.020(B)(3))
 Separate Conveyance: The Zoning Regulations currently restrict the conveyance and sale of ADUs separate from the primary residence, which is inconsistent with state ADU law. The proposed code update would add references to state ADU law to account for instances in which ADUs can be separately conveyed. (Attachment A – Section 8; 16.15.035, Section 9; 16.17.020, and Section 13; 17.86.020(B)(2))

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Streamlining of ADU Conversions
As state law continues to provide more avenues for the development of ADUs and JADUs, staff has seen an increase in the variety of designs being submitted for review. One such design that was brought to the attention of staff is the pre-emptive conversion of newly constructed or altered space in an existing residential structure that would be eligible for conversion to an ADU or JADU if already existing.

One example is the expansion of an existing residence (whether a primary residence or detached ADU) that includes the construction of a new garage. Under state law and the City’s municipal code, the new garage would be eligible for conversion to an ADU or JADU when it officially becomes existing dwelling unit. However, this means that under the current process, the applicant would need to receive approval for this addition and construct the space to the required building standards for a garage. Then, they would need to submit a second application for the ADU or JADU conversion, and upon approval, demolish and/or alter portions of the newly constructed garage into the approved ADU or JADU. Comments received by the development community on this issue state that this places an unnecessary burden on the applicant/property owner and is generally wasteful to require this two-step process. To streamline this process, staff is proposing the following provision to be added as 17.86.020(B)(4)(c) (Attachment A – Section 13):

Building permit applications that propose the expansion or alteration of an existing single-family or multifamily dwelling, or the conversion of existing space within a single-family or multifamily dwelling, for the purpose of creating an accessory dwelling unit or a junior accessory dwelling unit, are permissible under this Chapter. Said expansion or alteration to an existing single-family or multifamily dwelling shall be consistent with the City’s objective design standards and any applicable zoning regulations. The number of ADUs within the existing or proposed converted space of a multifamily dwelling shall not exceed 25 percent of the existing number of multifamily dwelling units. The provisions of this section do not apply to new construction multifamily dwellings.

The language provided above would allow an applicant to propose an addition or alteration to a structure with the intent of converting it to an ADU, which is allowed by state law. The City would not require the applicant to first “create” the existing space by having it permitted and built as an addition prior to allowing its conversion to an ADU.

The language above clarifies that the City will process an addition/alteration along with the request to “convert” that space into an ADU. This results in the same outcome, as would otherwise be required by state law, but eliminates onerous steps for the property owner.

Urban Lot Splits
Originally introduced under Senate Bill No. 9, now codified under California Government Code Sections 65852.21 and 66411.7, urban lot splits allow for the subdivision and subsequent development of a single-family residential lot (zoned R-1) into two lots of relatively equal size, each entitled to a maximum of two residential units. Sections 65852.21 and 66411.7 also provide a streamlined subdivision and development review process prohibiting discretionary review. The City created Chapter 16.15 (Urban Lot

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Splits) under Title 16 (Subdivision Regulations) of its Municipal Code to implement these provisions as required by state law. In 2024, the state legislature passed Senate Bill No. 450, altering the provisions of these sections. The update included in Attachment A would incorporate the changes presented in said legislation.

Urban lot splits, as they are described in the City’s Municipal Code, are relegated to R-1 zoned properties. In 2024, the state legislature passed Senate Bill No. 684, now referenced under California Government Code Sections 65852.28, 65913.4.5, and 66499.41, creating a similar subdivision and development system for multi-family zoned properties. In addition to SB 684, the state legislature passed Senate Bill No. 1123, which altered some of the provisions introduced by the former. Staff’s approach to integrating the provisions of SB 684 and 1123 into the City’s Municipal Code involves substantial changes to Chapter 16.15 of the Subdivision Regulations.

The number of similarities between these two types of urban lot splits provides the opportunity to expand upon an existing section in the City’s Municipal Code. However, there are enough differences to necessitate a means to reference both types independently of one another. Therefore, staff has proposed to refer to urban lot splits under California Government Code Sections 65852.21 and 66411.7 (SB 9 & SB 450) as “minor urban lot splits,” and those under Sections 65852.28, 65913.4.5, and 66499.41 (SB 684 & SB 1123) as “major urban lot splits.”
Update for Major Urban Lot Splits
Major urban lot splits are established under this code update. This allows property owners of multifamily and vacant single family lots to create a subdivision of up to 10 lots, and build housing units on each resulting parcel.

Below is a summary of major urban lot splits, including various qualifying requirements, standards, and regulations that apply as required by state law:
 Permitted Locations: Major urban lot splits are allowed in the R-1 (must be vacant and no larger than one and one-half acre), R-2, R-3, and R-4 zones where the property is substantially surrounded by urban uses and all qualifying requirements can be met. (Attachment A – Section 3; 16.15.005)
 Adverse Impacts: The Community Development Director may deem an application noncompliant upon written findings that the proposed housing development project associated with a major urban lot split would have a specific, adverse impact on public health and safety This provision is allowed per Government Code 65589.5(2)(d) (Attachment A – Section 4; 16.15.010)
 Procedural Requirements: The City is required to approve or deny major urban lot split applications ministerially within 60 days of receiving a complete application. If an application is denied, the City is required to provide a full set of comments and a list of items that are defective or deficient with a description of how said items can be resolved. (Attachment A – Section 4; 16.15.010)

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 Maximum Number of Dwellings: The resulting lots of a major urban lot split must contain at least one residential unit, with the entirety of the property to be subdivided limited to a maximum of 10 residential units. (Attachment A – Section 5; 16.15.020)  Hazardous and Protected Areas: A major urban lot split cannot be located on a site identified in subparagraphs (A) to (J), inclusive, of paragraph (9) of subdivision (a) of California Government Code Section 66499.412, unless the development satisfies the requirements specified therein. (Attachment A – Section 5; 16.15.020)  Demolition or Alteration of Housing: A major urban lot split cannot result in the demolition or alteration of the type of housing identified in paragraph (8), inclusive, of subdivision (a) of California Government Code 66499.41. This includes housing subject to a recorded covenant, ordinance, or law restricting rent to levels affordable to persons and families of low-, very low-, and extremely low-income, and more. (Attachment A – Section 5; 16.15.020)
 Subsequent Urban Lot Splits: A major urban lot split cannot be conducted on a lot that was established through a prior urban lot split. (Attachment A – Section 5;

16.15.020)
 Subdivision Map Act: Major urban lot splits must conform to all applicable objective requirements of the Subdivision Map Act, except as otherwise provided in Chapter

16.15 of the City’s Municipal Code. (Attachment A – Section 5; 16.15.020)  Lot Requirements and Limits: A major urban lot split may not result in more than 10 lots, with each lot being no smaller than 600 square feet. If the property subject to a major urban lot split is zoned for single-family use, each lot shall be no smaller than 1,200 square feet. Additionally, the average total area of floorspace for the proposed dwelling units associated with a major urban lot space cannot exceed 1,750 square feet. The square footages listed are per state law requirements. (Attachment A – Section 5; 16.15.020)
 Rental Term: The rental of any residential unit created via a major urban lot split must be for terms longer than 30 days. This is a requirement of City law. (Attachment A – Section 5; 16.15.020)
 Housing Unit Specifications: Residential units on lots created by a major urban lot split must be either constructed on fee simple ownership lots, part of a common interest development, part of a housing cooperative, constructed on land owned by a community land trust, or part of a tenancy in common. (Attachment A – Section 5;

16.15.020)
 Housing Element: If a parcel to be subject to a major urban lot split is identified in the City’s Housing Element, the associated housing development project must result in at least as many units as projected for that parcel. Additionally, if the parcel is identified as contributing to a portion of the City’s share of the regional housing need for low- or very low-income households, the housing development project must result in as many

2 Government Code 66499.41 prohibits the following sites from being allowed an urban lot split: Prime farmland, wetlands, land within a very high fire hazard severity zone, hazardous waste sites, sites within an earthquake fault zone, floor areas, within floodways, land identified for conservation, habitat for protected species, or land under conservation easement.

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affordable units as projected and be subject to a recorded affordability restriction of at least 45 years. If the parcel is not identified in the City’s Housing Element, the associated housing development project must result in at least 66% of the maximum allowable residential density or 66% of the applicable residential density specified in subparagraph (B) of paragraph (3) of subdivision (c) of California Government Code Section 65583.2, whichever is greater. (Attachment A – Section 5; 16.15.020)  Water and Sewer Requirement: Lots created through a major urban lot split must be served by a public water system and municipal sewer system. (Attachment A – Section 5; 16.15.020)
 Separately Alienable: A major urban lot split shall not result in any existing dwelling unit being alienable separate from the title to any other existing dwelling unit on the lot. This requirement is provided by California General Code Section 66499.41 (Attachment A – Section 5; 16.15.020)
 Floor Area Ratio: A housing development project associated with a major urban lot split is subject to a floor area ratio standard not less than 1.0 for developments consisting of 3 to 7 units, inclusive, and a floor area ratio not less than 1.25 for projects consisting of 8 to 10 units, inclusive. (Attachment A – Section 5; 16.15.020) Update for Minor Urban Lot Splits
The existing provisions of Chapter 16.15 of the City’s Municipal Code are still applicable to minor urban lot splits, which are only allowed in the single-family (R-1) zone. However, with the passing of SB 450, several changes were implemented to Government Code Sections 65852.21 and 66411.7 that will require the following changes to the municipal code:
 Impacts to the Physical Environment: Local agencies may no longer deny housing development projects associated with urban lot splits on the basis that the project would have a specific, adverse impact upon the physical environment. (Attachment A – Section 5; 16.15.020)
 Procedural Requirements: Local agencies are required to approve or deny an urban lot split ministerially within 60 days of receiving a complete application, and upon denial, must provide the applicant with a list of defective or deficient items with a description of how they can be resolved. (Attachment A – Section 5; 16.15.020) Car Share Vehicles
Under 16.15.025 of the City’s Municipal Code, housing developments associated with urban lot splits are required to provide one parking space per residential unit. This parking requirement is waived if the property is located within one-half mile walking distance of either a high-quality transit corridor as defined in subdivision (b) of Section 21155 of the Public Resources Code, or a major transit stop as defined in Section 21064.3 of the Public Resources Code. Parking is also waived if the property can show that a car share vehicle is located within one block of the subject parcel. The property would then be required to enter into an agreement with the City to ensure that a car share vehicle will remain available in perpetuity until off-street parking is provided or development of a high-quality transit corridor or a major transit stop within one-half mile of the subject parcel occurs.

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Currently, the City of San Luis Obispo does not contain a high-quality transit corridor, nor a major transit stop. To be exempt from parking requirements, some property owners have utilized the car share vehicle exemption. However, staff has found that existing guidelines for car share vehicles are lacking in detail, allowing this exemption to be used in a manner inconsistent with its purpose. Following a review of surrounding jurisdictions, staff is proposing the following definition to be added to Chapter 16.26 of the City’s Municipal Code:
“Car share vehicle” means a motor vehicle that is operated as part of a regional fleet by a public agency or private car sharing company or organization that possesses a valid business license with the City of San Luis Obispo and provide hourly or daily services. Car share vehicles shall be stored on parking spaces dedicated to car share vehicles in between each use. Execution of a contract between the public agency or private car sharing company or organization and the client, and retrieval of the car share vehicle’s keys, shall take place at the location of the car share vehicle.

This new definition will add clarity to the existing car share vehicle exemption and ensure that this alternative will offset the impacts of on-street vehicle parking to the same extent as off-street parking and proximity to major transit as contemplated by state law. (Attachment A – Section 10; 16.26.065)
Supportive/Transitional Housing Clarification
In recent months, CDD has received feedback from some of the City’s affordable housing partners that the standards outlined in the Zoning Regulations restrict the development of potential projects that could provide supportive and/or transitional housing by requiring the projects to contain some commercial component in commercial zones (essentially requiring projects in commercial zones to be mixed-use). The intent of these requirements was to create mixed use areas where the City desires projects to have both commercial and residential components, which can help activate streets in commercial areas. This required commercial component complicates financing for these projects, which can make projects very difficult or infeasible. With the production of such housing being a priority for the City, and to be consistent with efforts to reduce barriers to affordable housing development, staff is proposing the following note to be added to the Supportive and/or Transitional Housing, with On- or Off-Site Services land use category of Table 2- 1 of Chapter 17.10 (Attachment A – Section 11):

Projects that contain supportive and/or transitional housing located within a commercial zone are not required to be a mixed-use development and may be 100% residential except for those projects located in the C-D zone or Downtown Core. This includes projects that combine below market rate housing and supportive and/or transitional housing units.

This language would remove the commercial requirement for supportive and/or transitional housing located in commercial zones outside of the Downtown Core and C-D zones in order to attempt to remove this identified barrier to this type of housing development.

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Previous Council or Advisory Body Action
The Planning Commission met on February 12, 2025 (Agenda Packet) and reviewed the proposed amendments and adopted a Resolution (Attachment B) which recommended that City Council adopt an Ordinance amending Title 16 (Subdivision Regulations) and Title 17 (Zoning Regulations) of the Municipal Code addressing state legislative updates on accessory and junior accessory dwelling units and urban lot splits, and clarifications to regulations for affordable housing projects, with an exemption from environmental review (CEQA), as represented in the staff report and attachments, with modifications as follows (in bold):

1. Revise Section 17.86.020(C)(5) to read as follows:
“Except as provided by state law, the owner of the property shall occupy either the primary residence or the junior accessory dwelling unit.” Staff recommended this modification in agenda correspondence submitted for the Planning Commission hearing. The reference made to state law is intended to refer to several exceptions to the owner occupancy requirement under state JADU law.

2. Revise Section 17.86.020(C)(6) to read as follows:
“Except as provided by state law, prior to the issuance of building permits for a junior accessory dwelling unit...”
Staff recommended this modification in agenda correspondence submitted for the Planning Commission hearing. The reference made to state law is intended to refer to any future changes to state JADU law that may require exceptions to this covenant agreement requirement.

3. Revise Section 16.15.025(D)(2) to read as follows:
“There is a car share vehicle, as defined in Section 16.26.065, located within one block...”
Staff recommended this modification in agenda correspondence submitted for the Planning Commission hearing in order to reference the correct municipal code section.

4. Revise Section 16.15.020(I)(2) to read as follows:
“Copies of the unrecorded easement agreements must be submitted with the application. The easement agreements must be recorded against the property prior to or concurrently with the final parcel map.”
The Planning Commission recommended this modification in order to better align with the practical application of recording subdivision parcel maps.

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Next Steps
This update to the Zoning Regulations addresses the requirements of new state housing law and comments by HCD and removes barriers to housing development identified through community outreach and collaboration. Additional feedback from the community will be taken into consideration for a future update to the Zoning Regulations.

Public Engagement
Advisement of proposed amendments were discussed at the City’s most recent Developer’s Roundtable meeting, and the Roundtable attendees were provided a link to the Planning Commission’s agenda packet and invited to comment. Public notice was provided for the Planning Commission meeting (February 12, 2025), and public comment was received prior to and at the meeting. Public notice of this hearing has been published in a widely circulated local newspaper, and hearing agendas for this meeting have been posted at City Hall, consistent with adopted notification procedures. Email notices have been provided for each public meeting to those on the interested parties list.

CONCURRENCE
Planning Division Staff, as well as the City Attorney’s office, have reviewed the proposed changes to Titles 16 and 17 and provided feedback that has been incorporated into the proposed amendments in this report.

ENVIRONMENTAL REVIEW
The proposed code amendments have been assessed in accordance with the authority and criteria contained in the California Environmental Quality Act (CEQA) and the State CEQA Guidelines. Specifically, the proposed amendments have been determined to be exempt from further environmental review pursuant to CEQA Guidelines Section 15061(b)(3), the “Common Sense” exemption, because the activity is covered by the general rule that CEQA applies only to projects which have the potential for causing a significant effect on the environment, and it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment.

The proposed code amendments pertaining to ADUs and JADUs are also exempt under Public Resources Code Section 21080.17 that applies to local ordinances implementing state law related to accessory dwelling units. The proposed code amendments regarding the Subdivision Regulations are not considered a project under CEQA pursuant to Government Code Sections 65852.28(e), 65913.4.5(b), and 66499.41(i) and thus are not subject to further environmental review under CEQA.

FISCAL IMPACT
Budgeted: N/A Budget Year: N/A
Funding Identified: N/A

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Fiscal Analysis:

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

Total $0 $0 $0 $0
The amendments contained in the proposed ordinance do not have a fiscal impact on the City.

ALTERNATIVES

1. Continue consideration of the proposed zoning amendments. An action continuing the project should include direction for staff on pertinent issues that should be further studied or analyzed for future presentation to the Council, with consideration that the State has provided the City with a letter containing items that must be addressed to ensure City regulations are compliant with state law.

2. Do not approve the proposed zoning amendments. Not approving the amendments would result in the City’s Municipal Code not being consistent with state law. Denying the proposed amendments would also allow a possible barrier to affordable housing production to remain within the City’s Zoning Regulations.

ATTACHMENTS
A - Draft Ordinance adopting amendments to Titles 16 (Subdivision Regulations) and 17 (Zoning Regulations)
B - Signed Planning Commission Resolution recommending that City Council adopt amendments to Titles 16 and 17 with modifications presented by staff and the Commission
C - HCD Correspondence

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ORDINANCE NO. _____ (2025 SERIES)

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SAN LUIS OBISPO, CALIFORNIA, APPROVING AN UPDATE TO THE CITY’S
SUBDIVISION REGULATIONS (TITLE 16) AND ZONING REGULATIONS (TITLE 17) TO IMPLEMENT STATE LEGISLATIVE UPDATES ON

ACCESSORY AND JUNIOR ACCESSORY DWELLING UNITS AND
URBAN LOT SPLITS; AND AN UPDATE TO THE CITY’S ZONING
REGULATIONS (TITLE 17) TO PROVIDE CLARIFICATIONS TO

REGULATIONS FOR AFFORDABLE HOUSING PROJECTS WITH AN
EXEMPTION FROM ENVIRONMENTAL REVIEW (CEQA) (CODE-0031-
2025)
WHEREAS, on October 11, 2023, Governor Newsom approved SB 684 to allow the development of ten or fewer residential lots on urban lots no larger than five acres; and
WHEREAS, on March 25, 2024, Governor Newsom approved SB 477 to reorganize various provisions relating to the creation and regulation of accessory and junior accessory dwelling units; and
WHEREAS, on September 19, 2024, Governor Newsom approved SB 1211 to further encourage development of accessory dwelling units, SB 450 to update the regulatory powers a local agency can exercise on urban lot splits subject to Government Code Section 65852.21 and 66411.7, and SB 1123 to expand upon the provisions introduced in SB 684; and
WHEREAS, the City of San Luis Obispo desires to update Title 16 (Subdivision Regulations) and Title 17 (Zoning Regulations) so that they may be consistent with current state law; and
WHEREAS, a number of minor changes have been identified in order to add clarification to or streamline the development review processes to more efficiently implement policies and programs of the City of San Luis Obispo’s General Plan that are implemented through Title 16 (Subdivision Regulations) and Title 17 (Zoning Regulations); and
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 February 12, 2025, for the purpose of recommending various amendments to Title 16 and Title 17 of the Municipal Code to ensure consistency with state law and improve the efficiency of development review processes; and

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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 March 4, 2025, for the purpose of introducing various amendments to Title 16 and Title 17 of the Municipal Code to ensure consistency with state law and improve the efficiency of development review processes; and
WHEREAS, notice of said public hearing were made at the time and in the manner required by the law; and
NOW, THEREFORE, BE IT ORDAINED by the Council of the City of San Luis Obispo as follows:

SECTION 1. Findings. Based upon all evidence, and as recommended by the Planning Commission, the City Council makes the following findings:

1. The proposed amendments to Titles 16 and 17 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 Title 17 are consistent with the 6th Cycle Housing Element in promoting Goal 5 (Housing Variety) and Goal 6 (Housing Production).

3. The proposed amendments to Title 16 and 17 are consistent with state law.

4. Requiring a junior accessory dwelling unit to be rented for a period of at least thirty days ensures housing affordability as well as consistency with other elements of the Ordinance regarding ADUs, which do have term limits under state law. JADUs and ADUs represent a significant portion of the City’s new housing stock, and allowing short term rentals for ADUs and JADUs in this region of the State would cause a significant reduction in availability in the local rental market, thereby reducing available housing for working families and individuals in favor of short-term rental income for investors. This requirement is consistent with state law and furthers state law’s goals of housing production.

SECTION 2. Environmental Determination. The proposed amendments to Title 16 and Title 17 of the Municipal Code have been assessed in accordance with the authority and criteria contained in the California Environmental Quality Act (CEQA) and the state CEQA guidelines. Specifically, the proposed amendments have been determined to be exempt from further environmental review pursuant to CEQA Guidelines Section 15061(b)(3), the “Common Sense” exemption, because the proposed actions have no possibility of having a significant effect on the environment. The proposed code amendments pertaining to ADUs and JADUs are also statutorily exempt under Public Resources Code Section 21080.17 (exemption for local ordinances implementing state law related to accessory dwelling units.)
SECTION 3. Title 16 SUBDIVISIONS: Section 16.15.005 Purpose and applicability is hereby amended as follows:

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The purpose of this chapter is to appropriately regulate qualifying “urban lot splits” within qualifying locations in low-density residential (R-1) zones in accordance with California Government Code Sections 66411.7. state law.

For the purposes of this chapter, urban lot splits subject to California Government Code Sections 65852.21 and 66411.7 (and other comparable provisions which may hereafter be added by the legislature) shall be referred to as “minor urban lot splits.” Urban lot splits subject to California Government Code Sections 65852.28, 65913.4.5, and 66499.41 (and other comparable provisions which may hereafter be added by the legislature) shall be referred to as “major urban lot splits.” The use of the phrase “urban lot split” on its own is in reference to both major and minor urban lot splits.

A. Applicability. The standards and limitations set forth in this chapter shall apply to minor urban lot splits under California Senate Bill 9 of 2021 (“SB 9”) within the R-1 zone residential zones in the city, and major urban lot splits within the R-1 (vacant lots only; no larger than one and one-half acre), R-2, R-3, and R-4 zones, notwithstanding any other conflicting provisions of this code. In the event of a conflict between the provisions of this chapter and any other provision of this code, the provisions of this chapter shall prevail.

B. Interpretation. The provisions of this chapter shall be interpreted to be consistent with the provisions of California Government Code Section Sections 66411.7 and 66499.41, and shall be applied in a manner consistent with state law.

The city shall not apply any requirement or development standard provided for in this chapter to the extent prohibited by any provision of state law.

C. Permitted Locations. A lot on which an urban lot split is proposed must be located within and R-1 zone and meet all qualifying requirements of Section

16.15.020. A lot subject to a minor urban lot split must be located within an R-1 zone and meet all qualifying requirements of Section 16.15.020. A lot subject to a major urban lot split must be located within an R-1 (vacant lot only; no larger than one and one-half acre), R-2, R-3, or R-4 zone that is no larger than five acres, substantially surrounded by urban uses, and meet all qualifying requirements of Section 16.15.022. (Ord. 1729 § 4 (Exh. A), 2023).

SECTION 4. Section 16.15.010 Permit application and review procedures is hereby amended as follows:

A. Application. An Per state law, an applicant for an SB 9 urban lot split shall submit all required items from the tentative map application on file at the community development department. The application shall be accepted if it is completed as prescribed and accompanied by payment for all applicable fees. In addition to all required submittal checklist items for a tentative map, sufficient information shall be provided in the application to demonstrate, through objective review, the following: (1) the lots will accommodate development that complies with development standards and city codes, (2) information is provided to justify

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any proposed exceptions to objective standards, (3) sufficient access to the public right-of-way is provided or preserved, (4) the lots accommodate needed easements, infrastructure, and emergency access, and (5) any information deemed necessary by the director for objective review as needed evidence that the proposal will not result in any specific adverse impacts.

B. Review. Consistent with state law, the director will review and determine compliance of a complete application for an SB 9 urban lot split pursuant to this Chapter ministerially, without discretionary review or public hearing.

C. Effectiveness of Approval. The ministerial approval of a final parcel map for an urban lot split does not take effect until the city has confirmed that all required documents have been recorded at the county clerk-recorder.

D. Specific, Adverse Impacts. Notwithstanding anything else in this section, the director shall deem an application for a tentative parcel map an urban lot split noncompliant upon written findings, based on a preponderance of the evidence, that the project proposed housing development project would have a specific, adverse impact, as defined and determined in paragraph (2) of subdivision (d) of California Government Code Section 65589.5, on either public health and safety or on the physical environment and for which there is no feasible method to satisfactorily mitigate or avoid the specific adverse impact. (Ord. 1729 § 4 (Exh.

A), 2023)
E. Procedural Requirements. Within sixty days of receiving a complete application for an urban lot split, the city shall ministerially approve any such application which complies with all applicable requirements and development standards identified in this chapter. If the application does not comply with the listed requirements and standards identified in this chapter, the applicant will receive a full set of comments with a list of items that are defective or deficient and a description of how the application can be remedied by said applicant. These procedural requirements shall also apply to the housing development project associated with the urban lot split.

SECTION 5. Section 16.15.020 Qualifying requirements is hereby amended as follows:

A proposed urban lot split Minor and major urban lot splits must meet all of the following requirements, unless otherwise stated in this chapter, in order to be an eligible urban lot split under their respective Government Code sections. Government Code Section 66411.7 (urban lot split) It shall be the responsibility of the applicant to demonstrate to the satisfaction of the director that each of these requirements is satisfied. The applicant and/or owner of the property shall provide a sworn statement, in a form approved by the director, attesting to all facts necessary to establish that each requirement is met.

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A. Maximum Number of Dwellings. An urban lot split shall not result in more than two dwelling units of any kind on the resulting parcels. As described by Government Code Section 66411.7(j), the two-unit limitation applies to any combination of primary dwelling units, ADUs, or JADUs.

1. A minor urban lot split shall not result in more than two dwelling units of any kind on the resulting parcels. As described by California Government Code Section 66411.7(j), the two-unit limitation applies to any combination of primary dwelling units, ADUs, or JADUs.

2. A major urban lot split shall contain at least one dwelling unit on each resulting parcel (see California Government Code Section 66499.41(e)). A maximum of ten dwelling units may be developed on the parcel to be subdivided. As described by Section 66499.41(g), the City may deny an application which proposes accessory dwelling units and/or junior accessory dwelling units on the resulting parcel(s).

B. Hazardous and Protected Areas. The proposed lot split shall not be located on any site identified in subparagraphs (B) to (K), inclusive, of paragraph (6) of subdivision (a) of California Government Code Section 65913.4, unless the development satisfies the requirements specified therein. Such sites include, but are not limited to, prime farmland, wetlands, high or very high fire hazard severity zones, special flood hazard areas, regulatory floodways, and lands identified for conservation or habitat preservation as specifically defined in Government Code Section 65913.4.

1. A minor urban lot split shall not be located on any site identified in subparagraphs (B) to (K), inclusive, of paragraph (6) of subdivision (a) of California Government Code Section 65913.4, unless the development satisfies the requirements specified therein. Such sites include, but are not limited to, prime farmland, wetlands, high or very high fire hazard severity zones, special flood hazard areas, regulatory floodways, and lands identified for conservation or habitat preservation as specifically defined in Government Code Section 65913.4.

2. A major urban lot split shall not be located on any site identified in subparagraphs (A) to (J), inclusive, of paragraph (9) of subdivision (a) of California government Code Section 66499.41, unless the development satisfies the requirements specified therein. Such sites include, but are not limited to, prime farmland, wetlands, very high fire hazard severity zones, special flood hazard areas, regulatory floodways, and lands identified for conservation or habitat preservation.

C. Historic Properties. The proposed A minor urban lot split shall not be located within a historic district or on property included on the State Historic Resources Inventory, as defined in Section 5020.1 of the California Public Resources Code, or within a site that is designated or listed as a historic resource pursuant to the city’s historic preservation ordinance.

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D. Affordable Housing. Demolition or Alteration of Housing. The proposed A minor urban lot split shall not require the demolition or alteration of the types of housing that is subject to a recorded covenant, ordinance, or law that restricts rents to levels affordable to persons and families of moderate, low, or very low income. identified in subparagraph (D), inclusive, of paragraph (3) of subdivision (a) of California Government Code Section 66411.7. A major urban lot split shall not require the demolition or alteration of the types of housing identified in paragraph (8), inclusive, of subdivision (a) of California Government Code Section 66499.41.

E. Subsequent Urban Lot Splits. In the case of an urban lot split, the lot proposed to be subdivided shall not have been established through a prior urban lot split.

F. Adjacent Urban Lot Splits. In the case of an a minor urban lot split, the lot proposed to be subdivided (“subject lot”) shall not be adjacent to any lot that was established through an a minor urban lot split by the owner of the subject lot or by any person acting in concert with the owner of the subject lot.

G. Subdivision Map Act. An urban lot split must conform to all applicable objective requirements of the Subdivision Map Act, including implementing requirements in this code, except as otherwise provided in this chapter. Notwithstanding the foregoing, no dedication of rights-of-way or construction of off-site improvements is required solely for an a minor urban lot split.

H. Lot Size Lot Requirements and Limits. An urban lot split application may subdivide an existing lot to create no more than two new lots of approximately equal lot area; provided, that one lot shall not be smaller than forty percent of the lot area of the original lot proposed for subdivision. Both newly created lots must each be no smaller than one thousand two hundred square feet.

1. A minor urban lot split application may subdivide an existing lot to create no more than two new lots of approximately equal lot area; provided, that one lot shall not be smaller than forty percent of the lot area of the original lot proposed for subdivision. Both newly created lots must each be no smaller than one thousand two hundred square feet.

2. A major urban lot split may subdivide an existing lot to create no more than ten new lots, with each lot being no smaller than six hundred square feet. If the property subject to a major urban lot split is zoned for single-family use, each lot shall be no smaller than one thousand two hundred square feet. The average total area of floorspace for the proposed dwelling units to be located on lots created via a major urban lot split shall not exceed one thousand seven hundred fifty net habitable square feet, as defined by California Government Code Section 66499.41.

I. Easements. The owner must enter into an easement agreement with each utility/public-service provider to establish necessary easements that are sufficient for the provision of public services and facilities to each of the resulting lots.

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1. Each easement must be shown on the tentative parcel map and the final parcel map.

2. Copies of the unrecorded easement agreements must be submitted with the application. The easement agreements must be recorded against the property prior to or concurrent with final parcel map approval.

J. Required Affidavit. The applicant for a final parcel map for an a minor urban lot split must sign an affidavit provided by the city stating that the applicant intends to occupy one of the dwelling units on one of the resulting lots as the applicant’s principal residence for a minimum of three years from the date of approval of the minor urban lot split, or in the case of a vacant property a minimum of three years from the date of issuance of occupancy certification of any new residential dwellings on either of the resulting lots.

K. Rental Term. Rental of any unit created pursuant to this section shall be for a term longer than thirty days. (Ord. 1729 § 4 (Exh. A), 2023) L. Housing Unit Specifications. Housing units on a major urban lot split shall be one of the housing unit types identified in paragraph (4), inclusive, of subdivision (a) of California Government Code Section 66499.41.

M. Housing Element. The proposed housing development associated with a major urban lot split shall meet one of the following, as applicable:

1. If the parcel is identified in the city’s Housing Element for the current planning period, the housing development will result in at least as many units as projected for that parcel. Additionally, if the parcel is identified to accommodate any portion of the city’s share of the regional housing need for low- or very low-income households, the development will result in at least as many low- or very lowincome units as projected in the housing element and shall be subject to a recorded affordability restriction of at least 45 years.

2. If the parcel is not identified in the city’s Housing Element for the current planning period, the development will result in at least sixty-six percent of the maximum allowable residential density or sixty-six percent of the applicable residential density specified in subparagraph (B) of paragraph (3) of subdivision (c) of Section 65583.2, whichever is greater.

N. Water and Sewer Requirement. All parcels created through a major urban lot split shall be served by a public water system and municipal sewer system.

O. Separately Alienable. A major urban lot split shall not result in any existing dwelling unit being alienable separate from the title to any other existing dwelling unit on the lot.

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P. Floor Area Ratio. For major urban lot splits, a floor area ratio standard not less than 1.0 shall apply for housing development projects consisting of three to seven units, inclusive, and a floor area ratio standard not less than 1.25 shall apply for housing development projects consisting of eight to ten units, inclusive.

SECTION 6. Section 16.15.025 Property improvement standards is hereby amended as follows:

A. Objective Standards. The design and improvements of any lot created through an urban lot split shall be subject to the standards and criteria set forth in this section. In addition, except as modified or provided by this section or state law, any lot created through an urban lot split shall conform to all objective standards applicable to the lot as set forth in this title and/or in an applicable specific plan or planned unit development ordinance or resolution, along with all applicable objective standards and criteria contained in standard plans and specifications, policies, codes, regulations, and/or standard conditions duly promulgated and/or adopted by the city.

B. Lot Access. Each resulting lot must have frontage on the public right-of-way of at least twenty feet or be served by an access easement serving no more than two lots. Access shall be provided in compliance with these standards:

1. Vehicle access easements serving a maximum of two parcels shall meet the following standards:
i. Easement width shall be a minimum of twenty feet and shall comply with Engineering Standard 2120 for driveway ramp improvements and widths.
ii. The minimum length for a vehicle access easement is twenty feet. No maximum easement length shall be set. If easement length is more than seventy-five feet, a vehicle turnaround shall be provided. iii. No residential structure shall be closer than three feet to the easement. iv. Vehicle access easements shall not be located closer than twenty-five feet to an intersection.

2. Where a lot does not abut a public street, and where no automobile parking spaces are required under subsection D of this section, a vehicle access easement is not required. An easement providing pedestrian access to a street from each lot shall be provided meeting the following standards:
i. Easement width shall be a minimum of ten feet;
ii. Pedestrian access easements shall not exceed two hundred feet in length.

3. Access and provisions for fire protection consistent with the California Fire Code shall be provided for all structures served by an access easement.

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4. Surfacing of easements, pedestrian walkways required within easements, and turnaround dimensions shall meet the requirements of the California Fire Code and the city’s engineering standards.

5. Lots taking access by an easement must record a shared maintenance agreement for the driveway/accessway. The agreement shall be recorded prior to or concurrently with the final parcel map.

C. Lot Line Configurations. The location of property lines associated with an urban lot split application shall comply with all objective standards as identified in Section 16.18.040 (Location of lot lines), and as described below:

1. No Except as otherwise provided in state law, no portion of an urban lot split may result in a lot width or depth of less than twenty feet for any portion of the subdivision.

2. A lot line shall not bisect or be located within four feet of any existing or proposed structure.

D. Parking Required. Off-street parking of up to one space per unit shall be provided and comply with the city’s parking and driveway design and development standards Section 17.72.090 except when:

1. The parcel is located within one-half mile walking distance of either a highquality transit corridor as defined in subdivision (b) of Section 21155 of the Public Resources Code, or a major transit stop as defined in Section 21064.3 of the Public Resources Code.

2. There is a car share vehicle, as defined in Section 16.26.065, located within one block of the parcel. Owner shall enter into an agreement with the city to ensure that a car share vehicle will remain within one block of the parcel in perpetuity, unless and until owner provides off-street parking or development occurs such that subsection (D)(1) of this section applies. (Ord. 1729 § 4 (Exh.

A), 2023)
SECTION 7. Section 16.15.030 Exceptions to objective standards is hereby amended as follows:

A. All proposed lots and development proposed pursuant to this chapter shall comply with all city zoning codes, and objective policies, and guidelines unless an exception is granted. No exception shall be granted for any of the qualifying requirements as outlined in Section 16.15.020. Any proposed exception to any relevant objective standards, policies, guidelines, or codes shall not be granted unless the community development director can affirmatively determine the application meets all of the below requirements. For the purpose of these requirements, existing improvements or development is not considered a physical constraint.

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B. The necessity to grant the exception(s) is based on site development feasibility where there are no options for other design alternatives such as modifying the footprint, moving lot lines, adding stories, or reducing floor area (to minimum eight hundred square feet) and where the applicant has demonstrated it is physically not possible to redesign the project to avoid the necessity of exceptions.

C. The For a minor urban lot split, the requested exceptions represent the minimum deviation necessary to allow the construction of two units on each resulting parcel and which would not require any of the units to be less than eight hundred square feet. For a major urban lot split, the requested exceptions represent the minimum deviation necessary to allow parcels that are no less than six hundred square feet in size, or parcels that are no less than one thousand two hundred square feet in size when the property is zoned R-1. (Ord. 1729 § 4 (Exh.

A), 2023)
SECTION 8. Section 16.15.035 Separate conveyance is hereby amended as follows:

A. Separate conveyance of the two lots resulting from an urban a minor urban lot split is permitted. If dwellings or other structures (such as garages) on different lots are adjacent or attached to each other, the minor urban lot split boundary may separate them for conveyance purposes if the structures meet building code safety standards and are sufficient to allow separate conveyance. If any attached structures span or will span the new lot line, or if the two lots share a driveway, appropriate covenants, easements or similar documentation allocating legal and financial rights and responsibilities between the owners of the two lots (“CC&Rs”) for construction, reconstruction, use, maintenance, and improvement of the attached structures and any related shared drive aisles, parking areas, or other portions of the lot must be recorded before the city will approve a final parcel map for the minor urban lot split. Notwithstanding the provision of such CC&Rs, however, where attached structures and/or related shared facilities span a lot line resulting from an a minor urban lot split, all owners of both lots shall be jointly and severally responsible for the use and maintenance of such structures and/or shared facilities in compliance with all provisions of this code.

1. Primary dwelling units located on the same lot may not be owned or conveyed separately from one another. All fee interest in a lot and all dwellings must be held equally and undivided by all individual owners of the lot.

2. Except as provided in Government Code Section 65852.26 state law, accessory dwelling units (ADU) may not be sold or otherwise conveyed separate from the primary residence.

3. Junior accessory dwelling units (JADU) may not be sold or otherwise conveyed separate from the primary residence.

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B. A lot created by a final parcel map under this section shall not be further subdivided. Condominium airspace division or common interest subdivisions are not permitted on a lot created through an urban lot split. (Ord. 1729 § 4 (Exh. A), 2023)
SECTION 9.Section 16.17.020 Airspace subdivisions, common interest subdivisions, and flexible lot design subdivisions is hereby amended as follows:

E. Separate Conveyance. Separate conveyance of the lots resulting from an airspace or common interest subdivision is permitted. If dwellings or other structures (such as garages) on different lots are adjacent or attached to each other, the subdivision boundary may separate them for conveyance purposes if the structures meet building code safety standards and are sufficient to allow separate conveyance. If any attached structures span or will span the new lot line, or if the lots share a driveway, appropriate covenants, easements or similar documentation allocating legal and financial rights and responsibilities between the owners of the lots (“CC&Rs”) for construction, reconstruction, use, maintenance, and improvement of the attached structures and any related shared drive aisles, parking areas, or other portions of the lot must be recorded before the city will approve a final map for the common interest subdivision. Notwithstanding the provision of such CC&Rs, however, where attached structures and/or related shared facilities span a lot line resulting from a common interest subdivision, all owners of the lots shall be jointly and severally responsible for the use and maintenance of such structures and/or shared facilities in compliance with all provisions of this code.

1. Except as provided in Government Code Section 65852.26 state law, accessory dwelling units may not be sold or otherwise conveyed separate from the primary residence. (Ord. 1729 § 4 (Exh. A), 2023)
SECTION 10. Section 16.26.065 Car Share vehicle is hereby added as follows:
“Car share vehicle” means a motor vehicle that is operated as part of a regional fleet by a public agency or private car sharing company or organization that possesses a valid business license with the city of San Luis Obispo and provides hourly or daily services.

Car share vehicles shall be stored on parking spaces dedicated to car share vehicles when not in use by a client. Execution of a contract between the public agency or private car sharing company or organization and the client, and retrieval of the car share vehicle’s keys, shall take place at the location of the car share vehicle.

SECTION 11. Title 17 ZONING REGULATIONS Section 17.10.020 Use regulations by zone is hereby amended as follows:

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Residential
Care
Facilities—6
or Fewer
Residents
A A A A A A M/A M/A M/A MUP Multiple state
statutes
Residential
Care
Facilities—7
or More
Residents
MUP MUP MUP MUP MUP MUP MUP Multiple state
statutes
Supportive
and/or
Transitional
Housing,
with On- or
Off-Site
Services
A A A A MUP A A A A A A A A Projects that contain
supportive and/or
transitional housing
located within a
commercial zone are
not required to be a
mixed-use
development and
may be 100%
residential except for
those projects
located in the C-D
zone or Downtown
Core. This includes
projects that
combine below
market rate housing
and supportive
and/or transitional
housing units.

Farmworker
Housing
A A

MIXED USES
Mixed-Use
Development
A A A A A A A A See Sec. 17.70.130
and GC Sec.
65852.24

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SECTION 12. Section 17.69.010 Purpose and application is hereby amended as follows:

B. Applicability. The provisions of this chapter apply to all residential projects, in all zones, that qualify for streamlined, ministerial processing per Government Code Section 65913.4, or that are a “use by right” residential project. In addition, eligible residential projects must comply with all objective city policies, thresholds of significance, development standards, and design standards as established in, but not limited to, the general plan, zoning regulations, city standard specifications and engineering standards, active transportation plan, transportation impact study guidelines, climate action plan, and the municipal code.

A “use by right” residential project is a residential project that includes at least twenty percent of the units as affordable to lower income households (low, very low, and extremely low) and does not require discretionary review or approval (ministerial review only) and or residential projects that are otherwise deemed subject to ministerial processing per state or local law.

Residential projects seeking exceptions, waivers, or modifications to any development standards set forth in the city’s zoning regulations or the design standards set forth in this chapter, excluding modifications granted as part of density bonus concession, incentive, parking reduction, or waiver of development standards pursuant to state density bonus law or the city’s density bonus regulations (Chapter 17.140), shall not be eligible for ministerial and/or streamlined processing contemplated by this chapter, and will be subject to the city’s discretionary development review process outlined in Chapter 17.106.

Where these standards conflict with other state law or local code requirements (including but not limited to California Building Code and the city’s standard specifications and engineering standards) the more restrictive provision shall prevail. (Ord. 1703 § 4, 2021)
SECTION 13. Section 17.86.020 Accessory dwelling units, and junior accessory dwelling units, and guest quarters is hereby amended as follows:

A. Purpose and Applicability. The purpose of this chapter is to prescribe development and site regulations that apply, except where specifically stated, to accessory dwelling units, junior accessory dwelling units, and guest quarters, as defined in Chapter 17.156 (Land Use Definitions).

B. Accessory Dwelling Units. The provisions in this subsection shall apply to accessory dwelling units as defined in Chapter 17.156 (Land Use Definitions) and where allowed in compliance with Chapter 17.10 (Use Regulations).

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1. Purpose. The purpose of this chapter is to provide for the creation of accessory dwelling units in a manner that is consistent with requirements identified in Government Code Section 65852.2 Chapter 13 of Division 1 of Title 7 of the California Government Code, as amended from time to time.

Implementation of this section is meant to expand housing opportunities by increasing the number of smaller units available within existing neighborhoods.

2. General Requirements.
a. Application. Where this section does not contain a particular type of standard or procedure, conventional zoning standards and procedures shall apply.
b. No Subdivision of Property. Except as provided in state law, No no subdivision of property shall be allowed where an accessory dwelling unit has been established and the resulting subdivision does not maintain the primary residence on the same lot as the accessory dwelling unit(s). c. Sale of Property. This section shall apply to new owners of property where an accessory dwelling unit has been established. All conditions of director’s action (if applicable), restrictive covenants and other contractual agreements with the city shall apply to the property and the new owners, except as allowed or prohibited by state law.
d. Applicability of Building Codes. Accessory dwelling units shall conform to all applicable building and construction codes.

3. Specific Requirements and Standards.
a. Zones Where Allowed. An accessory dwelling unit, as defined in Chapter 17.156 (Land Use Definitions), can be created in the AG, C/OS, C-N, C-C, C-R, C-D, C-T, C-S, M, R-1, R-2, R-3, R-4, or O (Office) zone on lots with an existing or proposed residential structure. For the purposes of this section, structures that contain both commercial and residential uses are not considered residential structures.
b. Size of Accessory Dwelling Unit. The Except as provided in state law, the gross floor area of an accessory dwelling unit shall be no less than one hundred fifty square feet and shall not exceed eight hundred fifty square feet for a studio or one-bedroom unit, or one thousand square feet for a unit containing two or more bedrooms.
i. The director may authorize an exception to the square footage standards to allow an accessory dwelling unit up to one thousand two hundred square feet through the director’s action process. In the R-1 zone, this exception can only be approved on lots that are at least twelve thousand square feet in area. In all other zones, exceptions shall be based on compatibility with the development pattern of the neighborhood.

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c. Limitation on Number. Only one accessory dwelling unit is permitted per lot.
d. c. Design Standards. Accessory dwelling units shall conform to all applicable development standards of the underlying zone, including but not limited to height, setback area, parking, and building coverage, unless otherwise stated in this section or prohibited by state law. i. No passageway, defined as a pathway that is unobstructed clear to the sky and extends from a street to one entrance of the accessory dwelling unit, shall be required in conjunction with the construction of an accessory dwelling unit.
ii. No setback shall be required for an existing permitted structure that is converted to an accessory dwelling unit, or for an accessory dwelling unit that is constructed in replacement of an existing permitted structure, provided it is in the same location and has the same dimensions including height.
iii. A setback of no more than four feet from the side and rear lot lines is required for an accessory dwelling unit, for walls up to sixteen feet in height.
iv. Accessory dwelling units that include the creation of new square footage shall be limited to sixteen feet in height. Up to one hundred fifty square feet of new square footage may be exempted from this requirement in connection to a conversion of existing upper floor square footage, but only as needed to accommodate ingress and egress.
(a) In order to provide additional design options for accessory dwelling units, units that include the creation of new square footage can be constructed up to twenty-five feet in height if consistent with the setback standards provided in Article 2 of this title (Zones, Allowable Uses and Development and Design Standards).
v. Architectural style and form shall match the style and form of the primary residential structure(s) on the property.
vi. The materials of the accessory dwelling unit shall match the materials of the primary residential structure(s) on the property. vii.v. The minimum required setback for any balcony or terrace above the first floor shall be increased to ten feet from the adjacent property line(s). Upper level private or common open space areas provided as accessory to an accessory dwelling unit shall not exceed an aggregate area of fifty square feet. Roof decks or rooftop open spaces are prohibited.

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viii.vi. Exceptions to these design standards can be approved by the director, through director’s action, subject to required findings (Section

17.108.040).
e. d. Fire Sprinklers. Accessory dwelling units shall not be required to provide fire sprinklers if fire sprinklers are not required for the primary residence. The construction of an accessory dwelling unit shall not require fire sprinklers to be installed in the existing primary dwelling. f. e. Parking Requirements. No additional parking spaces shall be required for an accessory dwelling unit. If a garage or carport is converted or removed to accommodate an accessory dwelling unit, replacement parking is not required.
g. f. Historic Resources. Accessory dwelling units on listed historic properties and in historic districts shall be consistent with the historic preservation ordinance, including historic preservation guidelines and Secretary of the Interior standards for the treatment of historic properties. h. g. Utility Connection Fees. Where an accessory dwelling unit is created within an existing structure (primary or accessory), no new utility connection or payment of impact fees shall be required. For all other accessory dwelling units, a new utility connection for the accessory dwelling unit and payment of impact fees may be required if the accessory dwelling unit is seven hundred fifty square feet or more. New accessory dwelling units located in sewer capacity constrained areas are subject to Section 13.08.396 (Wastewater flow offset).
i. h. Additional Accessory Dwelling Unit Types. Additional Accessory Dwelling Unit Configurations. Accessory dwelling units that are consistent with Government Code Section 65852.2(e) 66323 shall receive ministerial approval. The provisions of Government Code Section 65852.2(e) cannot be combined with other accessory dwelling unit provisions of this section and no exceptions are available for projects subject to Section 65852.2(e).

Building permit applications to create accessory dwelling units consistent with Government Code Section 65852.2(e) 66323 shall clearly be labeled as such (e.g., “ADU-e” “ADU-66323”). In connection to the provision of Government Code Section 65852.2(e), multifamily dwelling structures shall be defined in accordance with Government Code Section 65589.5(h)(2).

4. Procedural Requirements. An accessory dwelling unit that meets the standards contained in this section shall be subject to ministerial review (building permit) and approval without discretionary review (i.e., use permit, architectural review, etc.) or public hearing.
a. Within sixty days of receiving a complete application, the city shall approve any such application which complies with all applicable requirements and development standards identified in this chapter or deny any such application that does not. If the proposed accessory dwelling

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unit(s) does not comply with the requirements and standards identified in this chapter, the applicant shall receive a full set of comments with a list of items that are defective or deficient and a description of how the application can be remedied by said applicant. When an accessory dwelling unit is proposed within a new residential structure, this sixty-day requirement shall only apply once all other aspects of the permit are approved.
b. Building permit applications for accessory dwelling units on lots containing an existing primary dwelling or dwellings shall not include other changes or improvements to the property unless those improvements are required to facilitate the creation of the accessory dwelling unit. c. Building permit applications that propose the expansion/alteration of an existing single-family or multifamily dwelling, or the conversion of existing space within a single-family or multifamily dwelling, for the purpose of creating an accessory dwelling unit or junior accessory dwelling unit are permissible under this Chapter. Said expansion or alteration to an existing single-family or multifamily dwelling shall be consistent with the City’s objective design standards and any applicable zoning regulations. The number of ADUs within the existing or proposed converted space of a multifamily dwelling shall not exceed 25 percent of the existing number of multifamily units. The provisions of this section do not apply to new construction multifamily dwellings.

5. No Short-Term Rental. An accessory dwelling unit cannot be rented for a period of less than thirty days. Homestay use of an accessory dwelling unit is prohibited.

6. Violations. Violation of any of the provisions of this chapter shall be subject to basic code enforcement action as provided in Title 1.

C. Junior Accessory Dwelling Units. The provisions in this subsection shall apply to junior accessory dwelling units as defined in Chapter 17.156 (Land Use Definitions) and where allowed in compliance with Chapter 17.10 (Use Regulations).

1. Purpose. The purpose of this chapter is to provide for the creation of junior accessory dwelling units in a manner that is consistent with requirements identified in Government Code Section 65852.22 Chapter 13 of Division 1 of Title 7 of the California Government Code, as amended from time to time.

Implementation of this section is meant to expand housing opportunities by increasing the number of smaller units available within existing neighborhoods.

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2. General Requirements.
a. Application. Where this section does not contain a particular type of standard or procedure, conventional zoning standards and procedures shall apply.
b. Areas Where Junior Accessory Dwelling Units Are Allowed. Upon meeting the requirements of this section, junior accessory dwelling units may be established in any zone where the use of the property is a singleunit dwelling, either existing or proposed. c. Sale of Property. A junior accessory dwelling unit shall not be sold independently of the primary dwelling on the parcel.
d. Location. A junior accessory dwelling unit must be created within the walls of a proposed or existing primary dwelling.
i. Conversion of an existing garage into a junior accessory dwelling unit shall only be permitted if replacement parking is provided consistent with Sections 17.70.170 (Setbacks) and 17.76.040 (Front yard parking). No setback exception shall be approved to accommodate replacement parking.
e. Size of Junior Accessory Dwelling Unit. The gross floor area of a junior accessory dwelling unit shall not exceed five hundred square feet. f. Limitation on Number. Only one junior accessory dwelling unit may be located on any residentially zoned lot zoned for single-family residences with existing or proposed single-family residence(s). A junior accessory dwelling unit may only be located on a lot that contains one permitted single-family structure or in connection with the construction of a singlefamily structure. A junior accessory dwelling unit may be located on the same lot as an accessory dwelling unit under one of the following circumstances:
i. The accessory dwelling unit was constructed at the same time as the single-family residence.
ii. The accessory dwelling unit was created through the conversion of existing space within a single-family residence or accessory structure. iii. The accessory dwelling unit, either new or existing, is a detached unit, and the detached accessory dwelling unit is no larger than eight hundred square feet, no taller than sixteen feet in height and has setbacks of no less than four feet from side and rear lot lines. g. Applicability of Building Codes. Junior accessory dwelling units shall conform to all applicable building and construction codes.

3. Performance Standards and Compatibility.

Ordinance No. _____ (2025 Series) Page 19
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a. Design Standards. Junior accessory dwelling units shall conform to all applicable development standards of the underlying zone, including but not limited to height, setback area, parking, and building coverage and shall be subject to the provisions below. A junior accessory dwelling unit that conforms to this section shall not be considered a dwelling unit for the purpose of calculating density.
i. A separate exterior entry shall be provided to serve a junior accessory dwelling unit.
ii. The interior connection to the main living area may be maintained or removed. A separate entrance from the main entrance to the primary structure, with an interior entry to the main living area, shall be provided if the junior accessory dwelling unit does not include a separate bathroom.
iii. At a minimum, junior accessory dwelling units shall include an efficiency kitchen, which shall contain a cooking facility, food preparation counter, and storage cabinets.
iv. Junior accessory dwelling units shall not be required to provide fire sprinklers if fire sprinklers are not required for the primary residence.

The construction of a junior accessory dwelling unit shall not require fire sprinklers to be installed in the existing primary dwelling v. No additional parking spaces shall be required for a junior accessory dwelling unit.
b. Utility Connection Fees. Where a junior accessory dwelling unit is created no new utility connection or payment of impact fees shall be required.
c. Fire and Life Protection. For purposes of any fire or life protection ordinance or regulation, a junior accessory dwelling unit shall not be considered a separate or new dwelling unit.

4. Procedural Requirements. A junior accessory dwelling unit that meets the standards contained in this section shall be subject to ministerial review (building permit) and approval without discretionary review (i.e., use permit, architectural review, etc.) or public hearing.
a. Within sixty days of receiving a complete application, the city shall approve any such application which complies with all applicable requirements of this section.
b. Building permit applications for junior accessory dwelling units on lots containing an existing single-family residence shall not include other changes or improvements to the property unless those improvements are required to facilitate the creation of the junior accessory dwelling unit.

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5. Owner Occupancy. The Except as provided by state law, the owner of the property shall occupy either the primary residence or the junior accessory dwelling unit.

6. Covenant Agreement. Prior Except as provided by state law, prior to the issuance of building permits for a junior accessory dwelling unit, a covenant agreement shall be recorded which discloses the structure’s approved floor plan and status as a “junior accessory dwelling unit” and agreeing that the owner of the property will occupy either the primary residence or the junior accessory dwelling unit. This agreement shall be recorded in the office of the county recorder to provide constructive notice to all future owners of the property.

7. No Short-Term Rental. A junior accessory dwelling unit cannot be rented for a period of less than thirty days. Homestay use of a junior accessory dwelling unit is prohibited.

8. Violations. Violation of any of the provisions set forth in this chapter shall be subject to code enforcement action as provided in Title 1.

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SECTION 14. 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 ________ day of __________ 2025, AND FINALLY ADOPTED by the Council of the City of San Luis Obispo on the _______ day of __________ 2025, 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

RESOLUTION NO. PC-1095-25

A RESOLUTION OF THE PLANNING COMMISSION OF THE CITY OF

SAN LUIS OBISPO RECOMMENDING THE CITY COUNCIL INTRODUCE AND ADOPT AN ORDINANCE AMENDING TITLE 16 (SUBDIVISION
REGULATIONS) AND TITLE 17 (ZONING REGULATIONS) OF THE

MUNICIPAL CODE WITH CHANGES ADDRESSING STATE

LEGISLATIVE UPDATES ON ACCESSORY AND JUNIOR ACCESSORY

DWELLING UNITS AND URBAN LOT SPLITS, AND CLARIFICATIONS

TO REGULATIONS FOR AFFORDABLE HOUSING PROJECTS, WITH

AN EXEMPTION FROM ENVIRONMENTAL REVIEW (CEQA) AS

REPRESENTED IN THE STAFF REPORT AND ATTACHMENTS DATED
FEBRUARY 12, 2025 (CODE-0031-2025)
WHEREAS, on October 11, 2023, Governor Newsom approved SB 684 to allow the development of ten or fewer residential lots on urban lots no larger than five acres; and
WHEREAS, on March 25, 2024, Governor Newsom approved SB 477 to reorganize various provisions relating to the creation and regulation of accessory and junior accessory dwelling units; and
WHEREAS, on September 19, 2024, Governor Newsom approved SB 1211 to further encourage development of accessory dwelling units, SB 450 to update the regulatory powers a local agency can exercise on urban lot splits subject to Government Code Section 65852.21 and 66411.7, and SB 1123 to expand upon the provisions introduced in SB 684; and
WHEREAS, the City of San Luis Obispo desires to update Title 16 (Subdivision Regulations) and Title 17 (Zoning Regulations) so that they may be consistent with current state law; and
WHEREAS, a number of minor changes have been identified in order to add clarification to or streamline the development review processes to more efficiently implement policies and programs of the City of San Luis Obispo’s General Plan that are implemented through Title 16 (Subdivision Regulations) and Title 17 (Zoning Regulations); and
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 February 12, 2025, for the purpose of recommending various amendments to Title 16 and Title 17 of the Municipal Code to ensure consistency with state law and improve the efficiency of development review processes; and WHEREAS, notice of said public hearing were made at the time and in the manner required by the law; and

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WHEREAS, the Planning Commission has duly considered all evidence, including the testimony of the applicant, interested parties, and the evaluation and recommendations by staff, presented at said hearing.

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

SECTION 1. Findings. Based upon all evidence, the Planning Commission makes the following findings:

1. The proposed amendments to Titles 16 and 17 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 Title 17 are consistent with the 6th Cycle Housing Element in promoting Goal 5 (Housing Variety) and Goal 6 (Housing Production).

3. The proposed amendments to Title 16 and 17 are consistent with state law.

SECTION 2. Environmental Determination. The proposed amendments to Title 16 and Title 17 of the Municipal Code have been assessed in accordance with the authority and criteria contained in the California Environmental Quality Act (CEQA) and the state CEQA guidelines. Specifically, the proposed amendments have been determined to be exempt from further environmental review pursuant to CEQA Guidelines Section 15061(b)(3), the “Common Sense” exemption, because the proposed actions have no possibility of having a significant effect on the environment. The proposed code amendments pertaining to ADUs and JADUs are also statutorily exempt under Public Resources Code Section 21080.17 (exemption for local ordinances implementing state law related to accessory dwelling units.)
SECTION 3. Action. The Planning Commission hereby recommends to the City Council the introduction and adoption of an ordinance to amend Title 16 (Subdivision Regulations) and Title 17 (Zoning Regulations) of the City’s Municipal Code regarding accessory dwelling units, junior accessory dwelling units, urban lot splits, and clarifications to regulations for affordable housing projects, as set forth in Attachment 1.

Upon motion of Commissioner Houghton, seconded by Commissioner Jorgensen, and on the following roll call vote:

AYES: Vice Chair Houghton, Commissioner Jorgensen, Commissioner Flores, Commissioner Kahn, Commissioner Tolle, Chair Cooley
NOES: None
ABSENT: Commissioner Munoz-Morris

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The foregoing resolution was passed and adopted this 12th day of February, 2025. ____
Tyler Corey, Secretary
Planning Commission

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ATTACHMENT 1: DRAFT ORDINANCE
ORDINANCE NO. _____ (2025 SERIES)

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SAN LUIS OBISPO, CALIFORNIA, APPROVING AN UPDATE TO THE CITY’S
SUBDIVISON REGULATIONS (TITLE 16) AND ZONING REGULATIONS (TITLE 17) TO IMPLEMENT STATE LEGISLATIVE UPDATES ON

ACCESSORY AND JUNIOR ACCESSORY DWELLING UNITS AND
URBAN LOT SPLITS; AND AN UPDATE TO THE CITY’S ZONING
REGULATIONS (TITLE 17) TO PROVIDE CLARIFICATIONS TO

REGULATIONS FOR AFFORDABLE HOUSING PROJECTS WITH AN
EXEMPTION FROM ENVIRONMENTAL REVIEW (CEQA) (CODE-0031-
2025)
WHEREAS, on October 11, 2023, Governor Newsom approved SB 684 to allow the development of ten or fewer residential lots on urban lots no larger than five acres; and
WHEREAS, on March 25, 2024, Governor Newsom approved SB 477 to reorganize various provisions relating to the creation and regulation of accessory and junior accessory dwelling units; and
WHEREAS, on September 19, 2024, Governor Newsom approved SB 1211 to further encourage development of accessory dwelling units, SB 450 to update the regulatory powers a local agency can exercise on urban lot splits subject to Government Code Section 65852.21 and 66411.7, and SB 1123 to expand upon the provisions introduced in SB 684; and
WHEREAS, the City of San Luis Obispo desires to update Title 16 (Subdivision Regulations) and Title 17 (Zoning Regulations) so that they may be consistent with current state law; and
WHEREAS, a number of minor changes have been identified in order to add clarification to or streamline the development review processes to more efficiently implement policies and programs of the City of San Luis Obispo’s General Plan that are implemented through Title 16 (Subdivision Regulations) and Title 17 (Zoning Regulations); and
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 February 12, 2025, for the purpose of recommending various amendments to Title 16 and Title 17 of the Municipal Code to ensure consistency with state law and improve the efficiency of development review processes; and

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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 March 4, 2025, for the purpose of introducing various amendments to Title 16 and Title 17 of the Municipal Code to ensure consistency with state law and improve the efficiency of development review processes; and
WHEREAS, notice of said public hearing were made at the time and in the manner required by the law; and
NOW, THEREFORE, BE IT ORDAINED by the Council of the City of San Luis Obispo as follows:

SECTION 1. Findings. Based upon all evidence, and as recommended by the Planning Commission, the City Council makes the following findings:

1. The proposed amendments to Titles 16 and 17 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 Title 17 are consistent with the 6th Cycle Housing Element in promoting Goal 5 (Housing Variety) and Goal 6 (Housing Production).

3. The proposed amendments to Title 16 and 17 are consistent with state law.

4. Requiring a junior accessory dwelling unit to be rented for a period of at least thirty days ensures housing affordability as well as consistency with other elements of the Ordinance regarding ADUs, which do have term limits under state law. JADUs and ADUs represent a significant portion of the City’s new housing stock, and allowing short term rentals for ADUs and JADUs in this region of the State would cause a significant reduction in availability in the local rental market, thereby reducing available housing for working families and individuals in favor of short-term rental income for investors. This requirement is consistent with state law and furthers state law’s goals of housing production.

SECTION 2. Environmental Determination. The proposed amendments to Title 16 and Title 17 of the Municipal Code have been assessed in accordance with the authority and criteria contained in the California Environmental Quality Act (CEQA) and the state CEQA guidelines. Specifically, the proposed amendments have been determined to be exempt from further environmental review pursuant to CEQA Guidelines Section 15061(b)(3), the “Common Sense” exemption, because the proposed actions have no possibility of having a significant effect on the environment. The proposed code amendments pertaining to ADUs and JADUs are also statutorily exempt under Public Resources Code Section 21080.17 (exemption for local ordinances implementing state law related to accessory dwelling units.)
SECTION 3. Title 16 SUBDIVISIONS: Section 16.15.005 Purpose and applicability is hereby amended as follows:

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The purpose of this chapter is to appropriately regulate qualifying “urban lot splits” within qualifying locations in low-density residential (R-1) zones in accordance with California Government Code Sections 66411.7. state law.

For the purposes of this chapter, urban lot splits subject to California Government Code Sections 65852.21 and 66411.7 (and other comparable provisions which may hereafter be added by the legislature) shall be referred to as “minor urban lot splits.” Urban lot splits subject to California Government Code Sections 65852.28, 65913.4.5, and 66499.41 (and other comparable provisions which may hereafter be added by the legislature) shall be referred to as “major urban lot splits.” The use of the phrase “urban lot split” on its own is in reference to both major and minor urban lot splits.

A. Applicability. The standards and limitations set forth in this chapter shall apply to minor urban lot splits under California Senate Bill 9 of 2021 (“SB 9”) within the R-1 zone residential zones in the city, and major urban lot splits within the R-1 (vacant lots only; no larger than one and one-half acre), R-2, R-3, and R-4 zones, notwithstanding any other conflicting provisions of this code. In the event of a conflict between the provisions of this chapter and any other provision of this code, the provisions of this chapter shall prevail.

B. Interpretation. The provisions of this chapter shall be interpreted to be consistent with the provisions of California Government Code Section Sections 66411.7 and 66499.41, and shall be applied in a manner consistent with state law.

The city shall not apply any requirement or development standard provided for in this chapter to the extent prohibited by any provision of state law.

C. Permitted Locations. A lot on which an urban lot split is proposed must be located within and R-1 zone and meet all qualifying requirements of Section

16.15.020. A lot subject to a minor urban lot split must be located within an R-1 zone and meet all qualifying requirements of Section 16.15.020. A lot subject to a major urban lot split must be located within an R-1 (vacant lot only; no larger than one and one-half acre), R-2, R-3, or R-4 zone that is no larger than five acres, substantially surrounded by urban uses, and meet all qualifying requirements of Section 16.15.022. (Ord. 1729 § 4 (Exh. A), 2023).

SECTION 4. Section 16.15.010 Permit application and review procedures is hereby amended as follows:

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A. Application. An Per state law, an applicant for an SB 9 urban lot split shall submit all required items from the tentative map application on file at the community development department. The application shall be accepted if it is completed as prescribed and accompanied by payment for all applicable fees. In addition to all required submittal checklist items for a tentative map, sufficient information shall be provided in the application to demonstrate, through objective review, the following: (1) the lots will accommodate development that complies with development standards and city codes, (2) information is provided to justify any proposed exceptions to objective standards, (3) sufficient access to the public right-of-way is provided or preserved, (4) the lots accommodate needed easements, infrastructure, and emergency access, and (5) any information deemed necessary by the director for objective review as needed evidence that the proposal will not result in any specific adverse impacts.

B. Review. Consistent with state law, the director will review and determine compliance of a complete application for an SB 9 urban lot split pursuant to this Chapter ministerially, without discretionary review or public hearing.

C. Effectiveness of Approval. The ministerial approval of a final parcel map for an urban lot split does not take effect until the city has confirmed that all required documents have been recorded at the county clerk-recorder.

D. Specific, Adverse Impacts. Notwithstanding anything else in this section, the director shall deem an application for a tentative parcel map an urban lot split noncompliant upon written findings, based on a preponderance of the evidence, that the project proposed housing development project would have a specific, adverse impact, as defined and determined in paragraph (2) of subdivision (d) of California Government Code Section 65589.5, on either public health and safety or on the physical environment and for which there is no feasible method to satisfactorily mitigate or avoid the specific adverse impact. (Ord. 1729 § 4 (Exh.

A), 2023)
E. Procedural Requirements. Within sixty days of receiving a complete application for an urban lot split, the city shall ministerially approve any such application which complies with all applicable requirements and development standards identified in this chapter. If the application does not comply with the listed requirements and standards identified in this chapter, the applicant will receive a full set of comments with a list of items that are defective or deficient and

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a description of how the application can be remedied by said applicant. These procedural requirements shall also apply to the housing development project associated with the urban lot split.

SECTION 5. Section 16.15.020 Qualifying requirements is hereby amended as follows:

A proposed urban lot split Minor and major urban lot splits must meet all of the following requirements, unless otherwise stated in this chapter, in order to be an eligible urban lot split under their respective Government Code sections. Government Code Section 66411.7 (urban lot split) It shall be the responsibility of the applicant to demonstrate to the satisfaction of the director that each of these requirements is satisfied. The applicant and/or owner of the property shall provide a sworn statement, in a form approved by the director, attesting to all facts necessary to establish that each requirement is met.

A. Maximum Number of Dwellings. An urban lot split shall not result in more than two dwelling units of any kind on the resulting parcels. As described by Government Code Section 66411.7(j), the two-unit limitation applies to any combination of primary dwelling units, ADUs, or JADUs.

1. A minor urban lot split shall not result in more than two dwelling units of any kind on the resulting parcels. As described by California Government Code Section 66411.7(j), the two-unit limitation applies to any combination of primary dwelling units, ADUs, or JADUs.

2. A major urban lot split shall contain at least one dwelling unit on each resulting parcel (see California Government Code Section 66499.41(e)). A maximum of ten dwelling units may be developed on the parcel to be subdivided. As described by Section 66499.41(g), the City may deny an application which proposes accessory dwelling units and/or junior accessory dwelling units on the resulting parcel(s).

B. Hazardous and Protected Areas. The proposed lot split shall not be located on any site identified in subparagraphs (B) to (K), inclusive, of paragraph (6) of subdivision (a) of California Government Code Section 65913.4, unless the development satisfies the requirements specified therein. Such sites include, but are not limited to, prime farmland, wetlands, high or very high fire hazard severity zones, special flood hazard areas, regulatory floodways, and lands identified for

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conservation or habitat preservation as specifically defined in Government Code Section 65913.4.

1. A minor urban lot split shall not be located on any site identified in subparagraphs (B) to (K), inclusive, of paragraph (6) of subdivision (a) of California Government Code Section 65913.4, unless the development satisfies the requirements specified therein. Such sites include, but are not limited to, prime farmland, wetlands, high or very high fire hazard severity zones, special flood hazard areas, regulatory floodways, and lands identified for conservation or habitat preservation as specifically defined in Government Code Section 65913.4.

2. A major urban lot split shall not be located on any site identified in subparagraphs (A) to (J), inclusive, of paragraph (9) of subdivision (a) of California government Code Section 66499.41, unless the development satisfies the requirements specified therein. Such sites include, but are not limited to, prime farmland, wetlands, very high fire hazard severity zones, special flood hazard areas, regulatory floodways, and lands identified for conservation or habitat preservation.

C. Historic Properties. The proposed A minor urban lot split shall not be located within a historic district or on property included on the State Historic Resources Inventory, as defined in Section 5020.1 of the California Public Resources Code, or within a site that is designated or listed as a historic resource pursuant to the city’s historic preservation ordinance.

D. Affordable Housing. Demolition or Alteration of Housing. The proposed A minor urban lot split shall not require the demolition or alteration of the types of housing that is subject to a recorded covenant, ordinance, or law that restricts rents to levels affordable to persons and families of moderate, low, or very low income. identified in subparagraph (D), inclusive, of paragraph (3) of subdivision (a) of California Government Code Section 66411.7. A major urban lot split shall not require the demolition or alteration of the types of housing identified in paragraph (8), inclusive, of subdivision (a) of California Government Code Section 66499.41.

E. Subsequent Urban Lot Splits. In the case of an urban lot split, the lot proposed to be subdivided shall not have been established through a prior urban lot split.

F. Adjacent Urban Lot Splits. In the case of an a minor urban lot split, the lot proposed to be subdivided (“subject lot”) shall not be adjacent to any lot that was

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established through an a minor urban lot split by the owner of the subject lot or by any person acting in concert with the owner of the subject lot.

G. Subdivision Map Act. An urban lot split must conform to all applicable objective requirements of the Subdivision Map Act, including implementing requirements in this code, except as otherwise provided in this chapter. Notwithstanding the foregoing, no dedication of rights-of-way or construction of off-site improvements is required solely for an a minor urban lot split.

H. Lot Size Lot Requirements and Limits. An urban lot split application may subdivide an existing lot to create no more than two new lots of approximately equal lot area; provided, that one lot shall not be smaller than forty percent of the lot area of the original lot proposed for subdivision. Both newly created lots must each be no smaller than one thousand two hundred square feet.

1. A minor urban lot split application may subdivide an existing lot to create no more than two new lots of approximately equal lot area; provided, that one lot shall not be smaller than forty percent of the lot area of the original lot proposed for subdivision. Both newly created lots must each be no smaller than one thousand two hundred square feet.

2. A major urban lot split may subdivide an existing lot to create no more than ten new lots, with each lot being no smaller than six hundred square feet. If the property subject to a major urban lot split is zoned for single-family use, each lot shall be no smaller than one thousand two hundred square feet. The average total area of floorspace for the proposed dwelling units to be located on lots created via a major urban lot split shall not exceed one thousand seven hundred fifty net habitable square feet, as defined by California Government Code Section 66499.41.

I. Easements. The owner must enter into an easement agreement with each utility/public-service provider to establish necessary easements that are sufficient for the provision of public services and facilities to each of the resulting lots.

1. Each easement must be shown on the tentative parcel map and the final parcel map.

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2. Copies of the unrecorded easement agreements must be submitted with the application. The easement agreements must be recorded against the property prior to or concurrent with final parcel map approval.

J. Required Affidavit. The applicant for a final parcel map for an a minor urban lot split must sign an affidavit provided by the city stating that the applicant intends to occupy one of the dwelling units on one of the resulting lots as the applicant’s principal residence for a minimum of three years from the date of approval of the minor urban lot split, or in the case of a vacant property a minimum of three years from the date of issuance of occupancy certification of any new residential dwellings on either of the resulting lots.

K. Rental Term. Rental of any unit created pursuant to this section shall be for a term longer than thirty days. (Ord. 1729 § 4 (Exh. A), 2023) L. Housing Unit Specifications. Housing units on a major urban lot split shall be one of the housing unit types identified in paragraph (4), inclusive, of subdivision (a) of California Government Code Section 66499.41.

M. Housing Element. The proposed housing development associated with a major urban lot split shall meet one of the following, as applicable:

1. If the parcel is identified in the city’s Housing Element for the current planning period, the housing development will result in at least as many units as projected for that parcel. Additionally, if the parcel is identified to accommodate any portion of the city’s share of the regional housing need for low- or very low-income households, the development will result in at least as many low- or very lowincome units as projected in the housing element and shall be subject to a recorded affordability restriction of at least 45 years.

2. If the parcel is not identified in the city’s Housing Element for the current planning period, the development will result in at least sixty-six percent of the maximum allowable residential density or sixty-six percent of the applicable residential density specified in subparagraph (B) of paragraph (3) of subdivision (c) of Section 65583.2, whichever is greater.

N. Water and Sewer Requirement. All parcels created through a major urban lot split shall be served by a public water system and municipal sewer system.

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O. Separately Alienable. A major urban lot split shall not result in any existing dwelling unit being alienable separate from the title to any other existing dwelling unit on the lot.

P. Floor Area Ratio. For major urban lot splits, a floor area ratio standard not less than 1.0 shall apply for housing development projects consisting of three to seven units, inclusive, and a floor area ratio standard not less than 1.25 shall apply for housing development projects consisting of eight to ten units, inclusive.

SECTION 6. Section 16.15.025 Property improvement standards is hereby amended as follows:

A. Objective Standards. The design and improvements of any lot created through an urban lot split shall be subject to the standards and criteria set forth in this section. In addition, except as modified or provided by this section or state law, any lot created through an urban lot split shall conform to all objective standards applicable to the lot as set forth in this title and/or in an applicable specific plan or planned unit development ordinance or resolution, along with all applicable objective standards and criteria contained in standard plans and specifications, policies, codes, regulations, and/or standard conditions duly promulgated and/or adopted by the city.

B. Lot Access. Each resulting lot must have frontage on the public right-of-way of at least twenty feet or be served by an access easement serving no more than two lots. Access shall be provided in compliance with these standards:

1. Vehicle access easements serving a maximum of two parcels shall meet the following standards:
i. Easement width shall be a minimum of twenty feet and shall comply with Engineering Standard 2120 for driveway ramp improvements and widths.
ii. The minimum length for a vehicle access easement is twenty feet. No maximum easement length shall be set. If easement length is more than seventy-five feet, a vehicle turnaround shall be provided. iii. No residential structure shall be closer than three feet to the easement.

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iv. Vehicle access easements shall not be located closer than twenty-five feet to an intersection.

2. Where a lot does not abut a public street, and where no automobile parking spaces are required under subsection D of this section, a vehicle access easement is not required. An easement providing pedestrian access to a street from each lot shall be provided meeting the following standards:
i. Easement width shall be a minimum of ten feet;
ii. Pedestrian access easements shall not exceed two hundred feet in length.

3. Access and provisions for fire protection consistent with the California Fire Code shall be provided for all structures served by an access easement.

4. Surfacing of easements, pedestrian walkways required within easements, and turnaround dimensions shall meet the requirements of the California Fire Code and the city’s engineering standards.

5. Lots taking access by an easement must record a shared maintenance agreement for the driveway/accessway. The agreement shall be recorded prior to or concurrently with the final parcel map.

C. Lot Line Configurations. The location of property lines associated with an urban lot split application shall comply with all objective standards as identified in Section 16.18.040 (Location of lot lines), and as described below:

1. No Except as otherwise provided in state law, no portion of an urban lot split may result in a lot width or depth of less than twenty feet for any portion of the subdivision.

2. A lot line shall not bisect or be located within four feet of any existing or proposed structure.

D. Parking Required. Off-street parking of up to one space per unit shall be provided and comply with the city’s parking and driveway design and development standards Section 17.72.090 except when:

1. The parcel is located within one-half mile walking distance of either a highquality transit corridor as defined in subdivision (b) of Section 21155 of the

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Public Resources Code, or a major transit stop as defined in Section 21064.3 of the Public Resources Code.

2. There is a car share vehicle, as defined in Section 16.26.065, located within one block of the parcel. Owner shall enter into an agreement with the city to ensure that a car share vehicle will remain within one block of the parcel in perpetuity, unless and until owner provides off-street parking or development occurs such that subsection (D)(1) of this section applies. (Ord. 1729 § 4 (Exh.

A), 2023)
SECTION 7. Section 16.15.030 Exceptions to objective standards is hereby amended as follows:

A. All proposed lots and development proposed pursuant to this chapter shall comply with all city zoning codes, and objective policies, and guidelines unless an exception is granted. No exception shall be granted for any of the qualifying requirements as outlined in Section 16.15.020. Any proposed exception to any relevant objective standards, policies, guidelines, or codes shall not be granted unless the community development director can affirmatively determine the application meets all of the below requirements. For the purpose of these requirements, existing improvements or development is not considered a physical constraint.

B. The necessity to grant the exception(s) is based on site development feasibility where there are no options for other design alternatives such as modifying the footprint, moving lot lines, adding stories, or reducing floor area (to minimum eight hundred square feet) and where the applicant has demonstrated it is physically not possible to redesign the project to avoid the necessity of exceptions.

C. The For a minor urban lot split, the requested exceptions represent the minimum deviation necessary to allow the construction of two units on each resulting parcel and which would not require any of the units to be less than eight hundred square feet. For a major urban lot split, the requested exceptions represent the minimum deviation necessary to allow parcels that are no less than six hundred square feet in size, or parcels that are no less than one thousand two hundred square feet in size when the property is zoned R-1. (Ord. 1729 § 4 (Exh.

A), 2023)

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SECTION 8. Section 16.15.035 Separate conveyance is hereby amended as follows:

A. Separate conveyance of the two lots resulting from an urban a minor urban lot split is permitted. If dwellings or other structures (such as garages) on different lots are adjacent or attached to each other, the minor urban lot split boundary may separate them for conveyance purposes if the structures meet building code safety standards and are sufficient to allow separate conveyance. If any attached structures span or will span the new lot line, or if the two lots share a driveway, appropriate covenants, easements or similar documentation allocating legal and financial rights and responsibilities between the owners of the two lots (“CC&Rs”) for construction, reconstruction, use, maintenance, and improvement of the attached structures and any related shared drive aisles, parking areas, or other portions of the lot must be recorded before the city will approve a final parcel map for the minor urban lot split.

Notwithstanding the provision of such CC&Rs, however, where attached structures and/or related shared facilities span a lot line resulting from an a minor urban lot split, all owners of both lots shall be jointly and severally responsible for the use and maintenance of such structures and/or shared facilities in compliance with all provisions of this code.

1. Primary dwelling units located on the same lot may not be owned or conveyed separately from one another. All fee interest in a lot and all dwellings must be held equally and undivided by all individual owners of the lot.

2. Except as provided in Government Code Section 65852.26 state law, accessory dwelling units (ADU) may not be sold or otherwise conveyed separate from the primary residence.

3. Junior accessory dwelling units (JADU) may not be sold or otherwise conveyed separate from the primary residence.

B. A lot created by a final parcel map under this section shall not be further subdivided. Condominium airspace division or common interest subdivisions are not permitted on a lot created through an urban lot split. (Ord. 1729 § 4 (Exh. A), 2023) SECTION 9.Section 16.17.020 Airspace subdivisions, common interest subdivisions, and flexible lot design subdivisions is hereby amended as follows:

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E. Separate Conveyance. Separate conveyance of the lots resulting from an airspace or common interest subdivision is permitted. If dwellings or other structures (such as garages) on different lots are adjacent or attached to each other, the subdivision boundary may separate them for conveyance purposes if the structures meet building code safety standards and are sufficient to allow separate conveyance. If any attached structures span or will span the new lot line, or if the lots share a driveway, appropriate covenants, easements or similar documentation allocating legal and financial rights and responsibilities between the owners of the lots (“CC&Rs”) for construction, reconstruction, use, maintenance, and improvement of the attached structures and any related shared drive aisles, parking areas, or other portions of the lot must be recorded before the city will approve a final map for the common interest subdivision. Notwithstanding the provision of such CC&Rs, however, where attached structures and/or related shared facilities span a lot line resulting from a common interest subdivision, all owners of the lots shall be jointly and severally responsible for the use and maintenance of such structures and/or shared facilities in compliance with all provisions of this code.

1. Except as provided in Government Code Section 65852.26 state law, accessory dwelling units may not be sold or otherwise conveyed separate from the primary residence. (Ord. 1729 § 4 (Exh. A), 2023)
SECTION 10. Section 16.26.065 Car Share vehicle is hereby added as follows:
“Car share vehicle” means a motor vehicle that is operated as part of a regional fleet by a public agency or private car sharing company or organization that possesses a valid business license with the city of San Luis Obispo and provides hourly or daily services.

Car share vehicles shall be stored on parking spaces dedicated to car share vehicles when not in use by a client. Execution of a contract between the public agency or private car sharing company or organization and the client, and retrieval of the car share vehicle’s keys, shall take place at the location of the car share vehicle.

SECTION 11. Title 17 ZONING REGULATIONS Section 17.10.020 Use regulations by zone is hereby amended as follows:

Residential
Care
Facilities—6

A A A A A A M/
A

M/A M/A MU
P
Multiple state
statutes

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or Fewer
Residents
Residential
Care
Facilities—7
or More
Residents
MU
P
MU
P
MU
P
MU
P
MU
P
MU
P
MU
P
Multiple state
statutes
Supportive
and/or
Transitional
Housing,
with On- or
Off-Site
Services

A A A A MU
P
A A A A A A A A Projects that
contain
supportive
and/or
transitional
housing located
within a
commercial zone
are not required
to be a mixed-use
development and
may be 100%
residential except
for those projects
located in the C-D
zone or
Downtown Core.

This includes
projects that
combine below
market rate
housing and
supportive
and/or
transitional
housing units.

Farmworker
Housing
A A

MIXED USES

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Mixed-Use
Developmen
t
A A A A A A A A See Sec.

17.70.130 and GC
Sec. 65852.24
SECTION 12. Section 17.69.010 Purpose and application is hereby amended as follows:

B. Applicability. The provisions of this chapter apply to all residential projects, in all zones, that qualify for streamlined, ministerial processing per Government Code Section 65913.4, or that are a “use by right” residential project. In addition, eligible residential projects must comply with all objective city policies, thresholds of significance, development standards, and design standards as established in, but not limited to, the general plan, zoning regulations, city standard specifications and engineering standards, active transportation plan, transportation impact study guidelines, climate action plan, and the municipal code.

A “use by right” residential project is a residential project that includes at least twenty percent of the units as affordable to lower income households (low, very low, and extremely low) and does not require discretionary review or approval (ministerial review only) and or residential projects that are otherwise deemed subject to ministerial processing per state or local law.

Residential projects seeking exceptions, waivers, or modifications to any development standards set forth in the city’s zoning regulations or the design standards set forth in this chapter, excluding modifications granted as part of density bonus concession, incentive, parking reduction, or waiver of development standards pursuant to state density bonus law or the city’s density bonus regulations (Chapter 17.140), shall not be eligible for ministerial and/or streamlined processing contemplated by this chapter, and will be subject to the city’s discretionary development review process outlined in Chapter 17.106.

Where these standards conflict with other state law or local code requirements (including but not limited to California Building Code and the city’s standard specifications and engineering standards) the more restrictive provision shall prevail. (Ord. 1703 § 4, 2021)

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SECTION 13. Section 17.86.020 Accessory dwelling units, and junior accessory dwelling units, and guest quarters is hereby amended as follows:

A. Purpose and Applicability. The purpose of this chapter is to prescribe development and site regulations that apply, except where specifically stated, to accessory dwelling units, junior accessory dwelling units, and guest quarters, as defined in Chapter 17.156 (Land Use Definitions).

B. Accessory Dwelling Units. The provisions in this subsection shall apply to accessory dwelling units as defined in Chapter 17.156 (Land Use Definitions) and where allowed in compliance with Chapter 17.10 (Use Regulations).

1. Purpose. The purpose of this chapter is to provide for the creation of accessory dwelling units in a manner that is consistent with requirements identified in Government Code Section 65852.2 Chapter 13 of Division 1 of Title 7 of the California Government Code, as amended from time to time.

Implementation of this section is meant to expand housing opportunities by increasing the number of smaller units available within existing neighborhoods.

2. General Requirements.
a. Application. Where this section does not contain a particular type of standard or procedure, conventional zoning standards and procedures shall apply.
b. No Subdivision of Property. Except as provided in state law, No no subdivision of property shall be allowed where an accessory dwelling unit has been established and the resulting subdivision does not maintain the primary residence on the same lot as the accessory dwelling unit(s). c. Sale of Property. This section shall apply to new owners of property where an accessory dwelling unit has been established. All conditions of director’s action (if applicable), restrictive covenants and other contractual agreements with the city shall apply to the property and the new owners, except as allowed or prohibited by state law.
d. Applicability of Building Codes. Accessory dwelling units shall conform to all applicable building and construction codes.

3. Specific Requirements and Standards.

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a. Zones Where Allowed. An accessory dwelling unit, as defined in Chapter 17.156 (Land Use Definitions), can be created in the AG, C/OS, C-N, C-C, C-R, C-D, C-T, C-S, M, R-1, R-2, R-3, R-4, or O (Office) zone on lots with an existing or proposed residential structure. For the purposes of this section, structures that contain both commercial and residential uses are not considered residential structures.
b. Size of Accessory Dwelling Unit. The Except as provided in state law, the gross floor area of an accessory dwelling unit shall be no less than one hundred fifty square feet and shall not exceed eight hundred fifty square feet for a studio or one-bedroom unit, or one thousand square feet for a unit containing two or more bedrooms.
i. The director may authorize an exception to the square footage standards to allow an accessory dwelling unit up to one thousand two hundred square feet through the director’s action process. In the R-1 zone, this exception can only be approved on lots that are at least twelve thousand square feet in area. In all other zones, exceptions shall be based on compatibility with the development pattern of the neighborhood.
c. Limitation on Number. Only one accessory dwelling unit is permitted per lot.
d. c. Design Standards. Accessory dwelling units shall conform to all applicable development standards of the underlying zone, including but not limited to height, setback area, parking, and building coverage, unless otherwise stated in this section or prohibited by state law. i. No passageway, defined as a pathway that is unobstructed clear to the sky and extends from a street to one entrance of the accessory dwelling unit, shall be required in conjunction with the construction of an accessory dwelling unit.
ii. No setback shall be required for an existing permitted structure that is converted to an accessory dwelling unit, or for an accessory dwelling unit that is constructed in replacement of an existing permitted structure, provided it is in the same location and has the same dimensions including height.

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iii. A setback of no more than four feet from the side and rear lot lines is required for an accessory dwelling unit, for walls up to sixteen feet in height.
iv. Accessory dwelling units that include the creation of new square footage shall be limited to sixteen feet in height. Up to one hundred fifty square feet of new square footage may be exempted from this requirement in connection to a conversion of existing upper floor square footage, but only as needed to accommodate ingress and egress.
(a) In order to provide additional design options for accessory dwelling units, units that include the creation of new square footage can be constructed up to twenty-five feet in height if consistent with the setback standards provided in Article 2 of this title (Zones, Allowable Uses and Development and Design Standards).
v. Architectural style and form shall match the style and form of the primary residential structure(s) on the property.
vi. The materials of the accessory dwelling unit shall match the materials of the primary residential structure(s) on the property. vii.v. The minimum required setback for any balcony or terrace above the first floor shall be increased to ten feet from the adjacent property line(s). Upper level private or common open space areas provided as accessory to an accessory dwelling unit shall not exceed an aggregate area of fifty square feet. Roof decks or rooftop open spaces are prohibited.
viii.vi. Exceptions to these design standards can be approved by the director, through director’s action, subject to required findings (Section

17.108.040).
e. d. Fire Sprinklers. Accessory dwelling units shall not be required to provide fire sprinklers if fire sprinklers are not required for the primary residence. The construction of an accessory dwelling unit shall not require fire sprinklers to be installed in the existing primary dwelling.

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f. e. Parking Requirements. No additional parking spaces shall be required for an accessory dwelling unit. If a garage or carport is converted or removed to accommodate an accessory dwelling unit, replacement parking is not required.
g. f. Historic Resources. Accessory dwelling units on listed historic properties and in historic districts shall be consistent with the historic preservation ordinance, including historic preservation guidelines and Secretary of the Interior standards for the treatment of historic properties. h. g. Utility Connection Fees. Where an accessory dwelling unit is created within an existing structure (primary or accessory), no new utility connection or payment of impact fees shall be required. For all other accessory dwelling units, a new utility connection for the accessory dwelling unit and payment of impact fees may be required if the accessory dwelling unit is seven hundred fifty square feet or more. New accessory dwelling units located in sewer capacity constrained areas are subject to Section 13.08.396 (Wastewater flow offset).
i. h. Additional Accessory Dwelling Unit Types. Additional Accessory Dwelling Unit Configurations. Accessory dwelling units that are consistent with Government Code Section 65852.2(e) 66323 shall receive ministerial approval. The provisions of Government Code Section 65852.2(e) cannot be combined with other accessory dwelling unit provisions of this section and no exceptions are available for projects subject to Section 65852.2(e).

Building permit applications to create accessory dwelling units consistent with Government Code Section 65852.2(e) 66323 shall clearly be labeled as such (e.g., “ADU-e” “ADU-66323”). In connection to the provision of Government Code Section 65852.2(e), multifamily dwelling structures shall be defined in accordance with Government Code Section 65589.5(h)(2).

4. Procedural Requirements. An accessory dwelling unit that meets the standards contained in this section shall be subject to ministerial review (building permit) and approval without discretionary review (i.e., use permit, architectural review, etc.) or public hearing.

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a. Within sixty days of receiving a complete application, the city shall approve any such application which complies with all applicable requirements and development standards identified in this chapter or deny any such application that does not. If the proposed accessory dwelling unit(s) does not comply with the requirements and standards identified in this chapter, the applicant shall receive a full set of comments with a list of items that are defective or deficient and a description of how the application can be remedied by said applicant. When an accessory dwelling unit is proposed within a new residential structure, this sixty-day requirement shall only apply once all other aspects of the permit are approved.
b. Building permit applications for accessory dwelling units on lots containing an existing primary dwelling or dwellings shall not include other changes or improvements to the property unless those improvements are required to facilitate the creation of the accessory dwelling unit. c. Building permit applications that propose the expansion/alteration of an existing single-family or multifamily dwelling, or the conversion of existing space within a single-family or multifamily dwelling, for the purpose of creating an accessory dwelling unit or junior accessory dwelling unit are permissible under this Chapter. Said expansion or alteration to an existing single-family or multifamily dwelling shall be consistent with the City’s objective design standards and any applicable zoning regulations. The number of ADUs within the existing or proposed converted space of a multifamily dwelling shall not exceed 25 percent of the existing number of multifamily units. The provisions of this section do not apply to new construction multifamily dwellings.

5. No Short-Term Rental. An accessory dwelling unit cannot be rented for a period of less than thirty days. Homestay use of an accessory dwelling unit is prohibited.

6. Violations. Violation of any of the provisions of this chapter shall be subject to basic code enforcement action as provided in Title 1.

C. Junior Accessory Dwelling Units. The provisions in this subsection shall apply to junior accessory dwelling units as defined in Chapter 17.156 (Land Use

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Definitions) and where allowed in compliance with Chapter 17.10 (Use Regulations).

1. Purpose. The purpose of this chapter is to provide for the creation of junior accessory dwelling units in a manner that is consistent with requirements identified in Government Code Section 65852.22 Chapter 13 of Division 1 of Title 7 of the California Government Code, as amended from time to time.

Implementation of this section is meant to expand housing opportunities by increasing the number of smaller units available within existing neighborhoods.

2. General Requirements.
a. Application. Where this section does not contain a particular type of standard or procedure, conventional zoning standards and procedures shall apply.
b. Areas Where Junior Accessory Dwelling Units Are Allowed. Upon meeting the requirements of this section, junior accessory dwelling units may be established in any zone where the use of the property is a singleunit dwelling, either existing or proposed. c. Sale of Property. A junior accessory dwelling unit shall not be sold independently of the primary dwelling on the parcel.
d. Location. A junior accessory dwelling unit must be created within the walls of a proposed or existing primary dwelling.
i. Conversion of an existing garage into a junior accessory dwelling unit shall only be permitted if replacement parking is provided consistent with Sections 17.70.170 (Setbacks) and 17.76.040 (Front yard parking). No setback exception shall be approved to accommodate replacement parking.
e. Size of Junior Accessory Dwelling Unit. The gross floor area of a junior accessory dwelling unit shall not exceed five hundred square feet. f. Limitation on Number. Only one junior accessory dwelling unit may be located on any residentially zoned lot zoned for single-family residences with existing or proposed single-family residence(s). A junior accessory dwelling unit may only be located on a lot that contains one permitted

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single-family structure or in connection with the construction of a singlefamily structure. A junior accessory dwelling unit may be located on the same lot as an accessory dwelling unit under one of the following circumstances:
i. The accessory dwelling unit was constructed at the same time as the single-family residence.
ii. The accessory dwelling unit was created through the conversion of existing space within a single-family residence or accessory structure. iii. The accessory dwelling unit, either new or existing, is a detached unit, and the detached accessory dwelling unit is no larger than eight hundred square feet, no taller than sixteen feet in height and has setbacks of no less than four feet from side and rear lot lines. g. Applicability of Building Codes. Junior accessory dwelling units shall conform to all applicable building and construction codes.

3. Performance Standards and Compatibility.
a. Design Standards. Junior accessory dwelling units shall conform to all applicable development standards of the underlying zone, including but not limited to height, setback area, parking, and building coverage and shall be subject to the provisions below. A junior accessory dwelling unit that conforms to this section shall not be considered a dwelling unit for the purpose of calculating density.
i. A separate exterior entry shall be provided to serve a junior accessory dwelling unit.
ii. The interior connection to the main living area may be maintained or removed. A separate entrance from the main entrance to the primary structure, with an interior entry to the main living area, shall be provided if the junior accessory dwelling unit does not include a separate bathroom.
iii. At a minimum, junior accessory dwelling units shall include an efficiency kitchen, which shall contain a cooking facility, food preparation counter, and storage cabinets.

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iv. Junior accessory dwelling units shall not be required to provide fire sprinklers if fire sprinklers are not required for the primary residence.

The construction of a junior accessory dwelling unit shall not require fire sprinklers to be installed in the existing primary dwelling v. No additional parking spaces shall be required for a junior accessory dwelling unit.
b. Utility Connection Fees. Where a junior accessory dwelling unit is created no new utility connection or payment of impact fees shall be required.
c. Fire and Life Protection. For purposes of any fire or life protection ordinance or regulation, a junior accessory dwelling unit shall not be considered a separate or new dwelling unit.

4. Procedural Requirements. A junior accessory dwelling unit that meets the standards contained in this section shall be subject to ministerial review (building permit) and approval without discretionary review (i.e., use permit, architectural review, etc.) or public hearing.
a. Within sixty days of receiving a complete application, the city shall approve any such application which complies with all applicable requirements of this section.
b. Building permit applications for junior accessory dwelling units on lots containing an existing single-family residence shall not include other changes or improvements to the property unless those improvements are required to facilitate the creation of the junior accessory dwelling unit.

5. Owner Occupancy. The Except as provided by state law, the owner of the property shall occupy either the primary residence or the junior accessory dwelling unit.

6. Covenant Agreement. Prior Except as provided by state law, prior to the issuance of building permits for a junior accessory dwelling unit, a covenant agreement shall be recorded which discloses the structure’s approved floor plan and status as a “junior accessory dwelling unit” and agreeing that the owner of the property will occupy either the primary residence or the junior

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accessory dwelling unit. This agreement shall be recorded in the office of the county recorder to provide constructive notice to all future owners of the property.

7. No Short-Term Rental. A junior accessory dwelling unit cannot be rented for a period of less than thirty days. Homestay use of a junior accessory dwelling unit is prohibited.

8. Violations. Violation of any of the provisions set forth in this chapter shall be subject to code enforcement action as provided in Title 1.

SECTION 14. 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 4th day of March, 2025, 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 ______________________.

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___________________________
Teresa Purrington
City Clerk

STATE OF CALIFORNIA - BUSINESS, CONSUMER SERVICES AND HOUSING AGENCY GAVIN NEWSOM, Governor

DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT

DIVISION OF HOUSING POLICY DEVELOPMENT
651 Bannon Street, Suite 400 Sacramento, CA 95811
(916) 263-2911 / FAX (916) 263-7453
www.hcd.ca.gov
September 11, 2024
Timmi Tway
Director of Community Development
City of San Luis Obispo
919 Palm St
San Luis Obispo, CA 93401
Dear Timmi Tway:

RE: Review of San Luis Obispo’s Accessory Dwelling Unit (ADU) Ordinance under State ADU Law (Gov. Code, §§ 66310 – 66342)
Please Note: As of March 25, 2024, with the Chaptering of Senate Bill (SB) 477 (Chapter 7, Statutes of 2024), the sections of Government Code relevant to State ADU and Junior Accessory Dwelling Unit (JADU) Law have been re-numbered (Enclosure 1).

Thank you for submitting the City of San Luis Obispo (City) ADU Ordinance No. 1705 (Ordinance), adopted December 7, 2021, to the California Department of Housing and Community Development (HCD). HCD has reviewed the Ordinance and submits these written findings pursuant to Government Code section 66326, subdivision (a). HCD finds that the Ordinance fails to comply with State ADU and JADU Laws in the manner noted below. Under section 66326, subdivision (b)(1), the City has up to 30 days to respond to these findings. Accordingly, the City must provide a written response to these findings no later than October 11, 2024.

The Ordinance addresses many statutory requirements; however, HCD finds that the Ordinance does not comply with State ADU Law in the following respects:

1. Statutory Numbering - The Ordinance contains several references to code sections that were deleted by SB 477, effective March 25, 2024. These include Government Code sections 65852.2, 65852.22 and 65852.26. The contents of these sections were relocated to Government Code, Title 7, Division 1, Chapter 13 (sections 66310-66342, see Enclosure). The City must amend the Ordinance to refer to the correct code sections.

2. Section 17.86.020 B.3.a. – Zones – The Ordinance creates a discrete list of zones that permit ADU development, namely “AG, C/OS, R-1, R-2, R-3, R-4, or O” zones. HCD requests and requires more information on this limitation on zones that permit by-right residential development within the City. Government Code section 66314, subdivision (d)(2) allows ADUs wherever a “lot is zoned to

Timmi Tway, Planning and Zoning

allow single-family or multifamily dwelling residential use and includes a proposed or existing dwelling.”

3. Section 17.86.020 B.3.a. – Mixed Use – The Ordinance states, “Structures that contain both commercial and residential uses are not considered residential structures.” However, this will likely have the effect of disallowing ADU development in or with mixed-use lots, otherwise authorized under state law.

Government Code section 66323, subdivision (a) specifically requires that “A local agency shall ministerially approve an application for a building permit within a residential or mixed-use zone to create any of the following…” before referring to units with existing or proposed single-family dwellings (in subdivisions (a)(1) and (a)(2) and multifamily dwellings (in subdivisions (a)(3) and (a)(4).Additionally, Government Code section 66317, subdivision (d)(2), permits ADUs where “The lot is zoned to allow single-family or multifamily dwelling residential use and includes a proposed or existing dwelling.” Therefore, the City must amend the Ordinance to comply with State ADU Law.

4. Section 17.86.020 B.3.b.1. – Max Sizes – The Ordinance states, “The gross floor area of an accessory dwelling unit shall be no less than 150 square feet and shall not exceed 850 square feet for a studio or one -bedroom unit, or 1,000 square feet for a unit containing two or more bedrooms.” Although the City may impose maximum sizes for ADUs, some types of ADUs may not have size limitations under state law. For example, ADUs created pursuant to Government Code section 66323, subdivisions (a)(1), (3), and (4) do not have size limitations. Therefore, the City must remove or amend the referenced Ordinance language.

5. Section 17.86.020 B.3.c and B.3.i. – ADU Allowance – The Ordinance states, “Only one accessory dwelling unit is permitted per lot.” It later notes that while an ADU subject to Government Code section 66323 will receive ministerial approval, “The provisions of Government Code Section 65852.2(e) cannot be combined with other accessory dwelling unit provisions of Section 17.86.020 and no exceptions are available for projects subject to Section 65852.2(e).” These provisions unlawfully limit ADUs to one per lot, regardless of the format of the ADU.

Government Code section 66323 states, “Notwithstanding Sections 66314 to 66322, inclusive, a local agency shall ministerially approve an application for a building permit within a residential or mixed-use zone to create any of the following: (1) One accessory dwelling unit and one junior accessory dwelling unit per lot with a proposed or existing single-family dwelling…(A) The accessory dwelling unit or junior accessory dwelling unit is within the proposed space of a single family dwelling or existing space of a single-family dwelling or accessory structure.” Subparagraph (2) permits “[o]ne detached, new construction, accessory dwelling unit that does not exceed four-foot side and

Timmi Tway, Planning and Zoning

rear yard setbacks.” The use of the term “any” followed by an enumeration of by right ADU types permitted means that any of these ADU types can be combined on a lot zoned for single-family dwellings.

This permits a homeowner, who meets specified requirements, to create one converted ADU; one detached, new construction ADU; and one JADU. Thus, if the local agency approves an ADU that is created from existing (or proposed) space, and the owner subsequently applies for a detached ADU (or vice versa) that meets the size and setbacks pursuant to the subdivision, the local agency cannot deny the application, nor deny a permit for a JADU under this section.

HCD notes that the Legislature, in creating the list, did not use “or” nor “one of” to indicate only one or another would be applicable to the exclusion of the other.

Limiting single-family lots to one ADU would prevent property owners from creating ADUs by-right under section 66323. Therefore, the City must amend the Ordinance to allow for all by-right ADU combinations.

6. Section 17.86.020 B.3.d.3. and 4. – Height – The Ordinance allows, “Walls up to 16 feet in height” and states “Accessory dwelling units that include the creation of new square footage shall be limited to sixteen feet in height.” However, However, Government Code section 66323, subdivision (a)(2)(B), directly refers to Government Code section 66321 (b)(4), which increases height maximums under certain conditions. The City must amend the Ordinance to comply with State ADU Law.

7. Section 17.86.020 B.3.e. and C.3.4. – Sprinklers – The Ordinance states, “Accessory dwelling units shall not be required to provide fire sprinklers if fire sprinklers are not required for the primary residence.” A similar statement is made for JADUs. However, Government Code section 66314, subdivision (d)(12) and 66323, subdivision (c) specifies an important additional limitation:
“The construction of an accessory dwelling unit shall not trigger a requirement for fire sprinklers to be installed in the existing primary dwelling.” Therefore, the City must add this language to the Ordinance to comply with State ADU Law.

8. Section 17.86.020 B.3.g. – Historic Resources – The Ordinance states, “Accessory dwelling units on listed historic properties and in historic districts shall be consistent with the historic preservation ordinance, including historic preservation guidelines and Secretary of the Interior standards for the treatment of historic properties.” However, the parameters of historic property listing, or historic districts is unclear. HCD requires more information – are local historic registries or locally designated historic districts relevant criteria for this section? Government Code section 66314, subdivision (b)(1) refers only to the “California Register of Historical Resources”.

Timmi Tway, Planning and Zoning

9. Section 17.86.020 B.4.a. – Denial Requirements – The Ordinance states, “Within sixty days of receiving a complete application, the city shall approve any such application which complies with all applicable requirements and development standards identified in this chapter. When an accessory dwelling unit is proposed within a new residential structure, this sixty-day requirement shall only apply once all other aspects of the permit are approved.” However, Government Code section 66317, subdivision (a) states, “The permitting agency shall either approve or deny the application to create or serve an accessory dwelling unit or a junior accessory dwelling unit within 60 days from the date the permitting agency receives a completed application,” and subdivision (b) states, “If a permitting agency denies an application for an accessory dwelling unit or junior accessory dwelling unit pursuant to subdivision (a), the permitting agency shall, within the time period described in subdivision (a), return in writing a full set of comments to the applicant with a list of items that are defective or deficient and a description of how the application can be remedied by the applicant.” As written, the Ordinance does not address state law requirements for denials. Therefore, the City must amend the Ordinance to reflect the entirety of the approval and denial process to comply with State ADU Law.

10.Section 17.86.020 C.2.f. – JADUs on Multiple SFH Lots – The Ordinance states, “A junior accessory dwelling unit may only be located on a lot that contains one permitted single-family structure or in connection with the construction of a single-family structure.” This would unlawfully restrict JADUs on any lot with more than one single-family primary dwelling. However, Government Code section 66333, subdivision (a) permits “one [JADU] per residential lot zoned for single-family residences with a single-family residence built, or proposed to be built, on the lot.” Note that this says “a” single-family residence, not “one” single-family residence built.

11.As Government Code section 66336 states, “A local agency shall not deny an application for a permit to create a junior accessory dwelling unit pursuant to this article due to the correction of nonconforming zoning conditions, building code violations, or unpermitted structures that do not present a threat to public health and safety and that are not affected by the construction of the junior accessory dwelling unit.” Multiple single-family homes on a single lot would be a nonconforming zoning condition that may not preclude the creation of a JADU. Therefore, lots with multiple single-family homes may have one JADU per lot. The City must amend the Ordinance to comply with State ADU Law.

12.Section 17.86.020 C.3.a.2. – JADUs, Sanitation, and Interior Entry – The Ordinance makes no reference to sanitation for JADUs, and states “The interior connection to the main living area may be maintained or removed.” However, Government Code section 66333, subdivision (e) states, “If a permitted junior accessory dwelling unit does not include a separate bathroom, the permitted

Timmi Tway, Planning and Zoning

junior accessory dwelling unit shall include a separate entrance from the main entrance to the structure, with an interior entry to the main living area.” Therefore, the City must amend the Ordinance to comply with State ADU Law.

13.Section 17.86.020 C.7. – Short Term Rental – The Ordinance states, “A junior accessory dwelling unit cannot be rented for a period of less than thirty days.

Homestay use of a junior accessory dwelling unit is prohibited.” However, Government Code section 66333 does not reference term limits for JADUs and therefore such a requirement would be unlawful and inconsistent with State JADU Law. The City must amend the Ordinance accordingly.

The City has two options in response to this letter1. The City can either amend the Ordinance to comply with State ADU Law2 or adopt the Ordinance without changes and include findings in its resolution adopting the Ordinance that explain the reasons the City believes that the Ordinance complies with State ADU Law despite HCD’s findings3.

If the City fails to take either course of action and bring the Ordinance into compliance with State ADU Law, HCD must notify the City and may notify the California Office of the Attorney General that the City is in violation of State ADU Law4.

HCD appreciates the City’s efforts in the preparation and adoption of the Ordinance and welcomes the opportunity to assist the City in fully complying with State ADU Law.

Please contact Mike Van Gorder, of our staff, at (916) 776-7541 or at [email protected] if you have any questions or would like HCD’s technical assistance in these matters.

Sincerely,
Jamie Candelaria
Senior Housing Accountability Unit Manager
Housing Policy Development Division
1 Gov. Code, § 66326, subd. (b)(2).
2 Gov. Code, § 66326, subd. (b)(2)(A).
3 Gov. Code, § 66326, subd. (b)(2)(B).
4 Gov. Code, § 66326, subd. (c).

State ADU/JADU Law Statutory Conversion Table
New Government Code Sections Previous Government Code Sections Article 1. General Provisions
66310 65852.150 (a)
66311 65852.150 (b)
66312 65852.150 (c)
66313 General Definition Section
65852.2 (j)
65852.22 (j)
Article 2. Accessory Dwelling Unit Approvals
66314 65852.2(a)(1)(A), (D)(i)-(xii), (a)(4)-(5)
66315 65852.2 (a)(8)
66316 65852.2 (a)(6)
66317 65852.2 (a)(3), (a)(7)
66318 65852.2 (a)(9), 65852.2 (a)(2)
66319 65852.2 (a)(10)
66320 65852.2 (b)
66321 65852.2 (c)
66322 65852.2 (d)
66323 65852.2 (e)
66324 65852.2 (f)
66325 65852.2 (g)
66326 65852.2 (h)
66327 65852.2 (i)
66328 65852.2 (k)
66329 65852.2 (l)
66330 65852.2 (m)
66331 65852.2 (n)
66332 65852.23.

Article 3. Junior Accessory Dwelling Units
66333 65852.22 (a)
66334 65852.22 (b)
66335 65852.22 (c)
66336 65852.22 (d)
66337 65852.22 (e)
66338 65852.22 (f)-(g)
66339 65852.22 (h)
Article 4. Accessory Dwelling Unit Sales
66340 65852.26 (b)
66341 65852.26 (a)
66342 65852.2 (a)(10)

Item 6c
Department: Human Resources
Cost Center: 3001
For Agenda of: 3/4/2025
Placement: Public Hearing
Estimated Time: 45 Minutes
FROM: Nickole Domini, Human Resources Director
Prepared By: Jeff Andrews, Human Resources Manager
SUBJECT: CITY WORKFORCE VACANCIES, RECRUITMENT, AND RETENTION TRENDS (AB 2561)

RECOMMENDATION

1. Adopt a Draft Resolution entitled, “A Resolution of the Council of the City of San Luis Obispo, California adopting ‘Policies and Procedures for the Public Hearing under AB 2561’”; and

2. Conduct a public hearing regarding, and receive and file the City of San Luis Obispo Workforce Vacancies, Recruitment, and Retention Trends presentation.

POLICY CONTEXT
Recommendations and information in this report are following Assembly Bill No. 2561, Chapter 409, an act to add Section 3502.3 to the Government Code that was signed into law on September 22, 2024, and became effective January 1, 2025 (Attachment C).

DISCUSSION
Report in Brief
Governor Newsom's signing of Assembly Bill 2561 (AB 2561) introduced new requirements for public agencies to address and publicly report on staffing vacancies and recruitment and retention efforts. As part of this law, public agencies must also highlight hiring challenges and potential policy obstacles. If vacancy rates in a bargaining unit reach a significant threshold, agencies must provide further details on job openings, applicant numbers, hiring timelines, and strategies for improving compensation and working conditions. Additionally, employee organizations are given the opportunity to present their perspectives during these public hearings.

This report outlines the City’s workforce composition, vacancy trends, and strategies to attract and retain employees. While recruitment and hiring remain top priorities, the City also focuses on long-term retention through incentive programs, internal promotion opportunities, and workplace improvements such as flexible scheduling, professional development, and employee engagement initiatives. All data collected is from the 2024 calendar year.

Item 6c
Background
On September 22, 2024, Governor Newsom signed Assembly Bill 2561 (“AB 2561”) into law to amend the Meyers-Milias-Brown Act (“MMBA”) and create Government Code Section 3502.3 (GC 3502.3), thereby creating a new obligation for public agencies to publicly address the status of their vacancies. As basis for the new requirements, the California Legislature determined that vacancies are a widespread and significant problem in the public sector. Vacancies require employees to take on heavier workloads, resulting in burnout and increased turnover, which negatively impacts the delivery of public service. Further, the legislature declared there is a statewide interest in ensuring that public agency operations are appropriately staffed and that high vacancy rates do not undermine public employee relations.

GC 3502.3 requires public agencies to present the status of their vacancies and recruitment and retention efforts during a public hearing before their governing board at least once per fiscal year prior to the adoption of a final budget for the fiscal year. During the presentation, the public agency is also required to identify any changes to policies, procedures, or recruitment activities that may lead to obstacles in the hiring process.

Additionally, if the number of vacancies meets or exceeds 20% of the total number of authorized full-time positions in a particular bargaining unit, the public agency shall include the following information in its presentation upon request of the recognized employee organization:

1. The total number of job vacancies within a bargaining unit.

2. The total number of applicants for vacant positions within the bargaining unit.

3. The average number of days to complete the hiring process from when a position is posted.

4. Opportunities to improve compensation and other working conditions.

GC 3502.3 entitles recognized employee organizations, regardless of the vacancy rate, to make a presentation before the governing board of a public agency during the same public hearing in which the public agency makes its annual presentation on vacancies.

City of San Luis Obispo Bargaining Groups
There are six (6) bargaining groups (four represented and two unrepresented) at the City consisting of 4811 authorized regular full- and part-time positions (478.25 full-time equivalent2(FTE)).

1 This number does not include the Council – one (1) Mayor and four (4) City Council Member positions. 2 A position is a job role that exists whether filled or vacant; FTE measures hours worked rather than the number of employees, allowing part-time hours to be aggregated into the equivalent of full-time positions for budgeting, forecasting, and staffing purposes.

Item 6c
Table 1: Count of Regular Full- and Part-Time3 Positions by Bargaining Group as of December 31, 2024
City of San Luis Obispo Bargaining Group Position Count City Employees’ Association 214
International Association of Firefighters, Local 3523 53 Police Officers' Association 71
Police Staff Officers' Association 17
Unrepresented Confidential Group 13
Unrepresented Management Group 113
Vacancies, Recruitment, Retention
Vacancies
Position vacancies are created for a number of reasons including when newly budgeted positions are approved, there is internal movement such as a promotion or transfer, or when an employee leaves the organization due to retirement, voluntary resignation, or involuntary termination. When vacancies occur, it is a high priority for the Human Resources Department and the City’s hiring managers to fill vacant positions in order to ensure continuity of services, maintain operational efficiency, minimize the need for overtime, and minimize disruptions to departmental functions. Timely recruitment and hiring efforts help the City sustain its workforce, meet community needs, and uphold service standards while also providing opportunities for internal growth and external talent acquisition.

Although AB 2561 now requires staff to present annually on the status of vacancies and efforts to recruit and retain staff, it has always been a priority for departments to fill vacancies as soon as reasonably possible. Throughout the 2024 calendar year (CY), the City’s average vacancy rate across all bargaining units was 6.6%. The vacancy rate is calculated monthly as the quantity of vacancies divided by the quantity of positions. As of December 31, 2024, the vacancy rate for each bargaining group was under 20%:

Table 2: Vacancy Rate by Bargaining Group as of December 31, 2024 City of San Luis Obispo Bargaining Group Vacancy Rate
City Employees’ Association 7.0%
International Association of Firefighters, Local 3523 11.3% Police Officers' Association 2.8%
Police Staff Officers' Association 5.9%
Unrepresented Confidential Group 7.7%
Unrepresented Management Group 9.7%

3 There are six (6) City positions budgeted at 50% or 75% part-time.

Item 6c
In CY 2024, there were four (4) retirements in the Fire bargaining group and three (3) retirements in the Police Staff Officers’ Association. This is important to note because retirements making up almost the entirety of the vacancies for those groups indicates strong employee retention. Retirement does not necessarily indicate dissatisfaction; it is typically planned and predictable and is considered natural turnover which is excluded from avoidable turnover and retention metrics. Voluntary resignations may suggest disengagement or better opportunities elsewhere. Vacancies in the other bargaining groups stem from a combination of factors, including resignations for local or out-of-area employment, retirements, unsuccessful completion of probationary period, and other personal reasons.

Recruitment and Retention Efforts
The Human Resources Department recognizes recruitment is about identifying, attracting, and hiring the right people, and retention is about keeping employees engaged, satisfied, and committed to the organization long-term. Both are critical for the success of the organization, especially in today’s competitive job market. Pursuant to the Council adopted Compensation Philosophy, it is the policy of the City of San Luis Obispo to recruit and retain well-qualified employees who exemplify the City’s organizational values.

To assist in recruitment and retention efforts, the Council approved updates to the City’s Recruitment, Referral, and Retention Incentive Program (RRR Program) (Attachment D) in 2022. The revised RRR Program was enhanced to establish guidelines and procedures for the eligibility, approval, and processing of recruitment, hiring, referral, and retention incentives for employees.

Table 3: Recruitment and Retention Incentives Provided in CY 2024 Incentive Type
Number of
Incentives
Provided
Accelerated Vacation Accrual 31
Hiring Incentive/Sign-on Bonus 18
Relocation Reimbursement 7
Referral Incentive 9
The RRR Program has helped with recruiting experienced Police Officers, a classification that most public agencies have a hard time filling. As of drafting this report, the City has only one (1) Police Officer vacancy out of an approved 46 positions, and that is due to a promotion. Although trends show a slow-down in the use of sign-on bonuses and relocation reimbursement incentives compared to previous years, they are still authorized by the Director of Human Resources for positions deemed hard-to-fill, such as Engineers and Planners. While these incentives come with a cost, the benefits of filled positions far outweigh the minimal expense.

Item 6c
Additionally, the City’s Employee Opportunity Program (EOP) was developed to enhance employment opportunities for current City employees who desire to transfer to other positions within the City and/or to promote from one position to another. When a department submits a hiring request for a regular full- or part-time position, all employees are notified of the opening via email and are provided five (5) business days to submit an employment application. Internal promotions are a key performance indicator for the Human Resources Department, with a goal of filling 40% of vacant positions via EOP. In CY 2024, 43% of vacant positions were filled via EOP.

For a recruitment to begin, the hiring department notifies Human Resources staff who then open a job posting either internally for an EOP opportunity, or externally to capture other applicants to interview and establish an eligibility list. Upon selecting a candidate, a conditional job offer is provided, the candidate completes necessary pre-employment procedures (e.g., background check, physical, etc.), a start date is determined, and a formal offer of employment is signed.

In CY 2024, Human Resources recruitment staff carried a higher-than-normal workload.

On average, there were 39 active recruitments per month, whereas a standard and sustainable workload for the one dedicated recruitment specialist is 20-25 recruitments at a given time. The median amount of time to fill a regular vacant position was 71 days.

Throughout CY 2024, 99 position vacancies were created, 104 job postings were opened, and staff successfully filled 107 vacancies. The differential stems from vacancies that were created in CY 2023 then filled in CY 2024. Conversely, vacancies created at the end of CY 2024 will initiate a recruitment to fill the vacancy in CY 2025.

The City received 3,217 job applications for regular positions in CY 2024. Advertising sources include LinkedIn, local job boards, state- and nationwide association-specific websites, and job sites such as Indeed and ZipRecruiter. The top sources where applicants learned about job openings were:
 The Government Jobs website (the City’s recruitment tool)  The City’s website
 A City employee
While the City’s average vacancy rate for CY 2024 was 6.6%, hiring for certain regular positions remains a challenge. Contributing factors include the rising demand for talent in specific sectors, such as civil engineers, the high cost-of-living in the San Luis Obispo area, and its geographical distance from a major metropolitan center, which can limit the applicant pool. In an effort to reduce the time to hire and attract qualified applicants, staff is exploring recruitment processes enhancements such as e-references, background checks integrated into the recruitment software, and applicant landing pages for City departments.

Item 6c
Filing vacancies and recruiting top talent are critical to delivering core services to the community and carrying out Council’s priorities, but retaining that talent is equally essential for sustaining long-term success and minimizing future vacancies. While the City has excelled in employee retention, internal workforce trends are shifting. Employees with less than five (5) years of tenure with the City are leaving more frequently. For example, in CY 2024, 70% of all City resignations stemmed from employees with less than five (5) years of City service. Exit interviews from these employees and national trends indicate that employees are increasingly prioritizing flexibility, remote work, and other evolving workplace values.

For CY 2024, the City’s retention rate was 87%, reflecting a strong ability to retain employees. The retention rate is calculated as the quantity of employees at the beginning of CY 2024, divided by the quantity of those employees who remained with the organization through the end of CY 2024. The average tenure for City employees is 7.6 years, demonstrating some stability within the workforce.

To meet the changing desires of employees, the City incorporates several retention strategies. First, the City aims to prioritize both physical and mental well-being. The City offers compressed work weeks, such as offering 9/80 work schedules, and hybridtelework options to help employees balance work and personal life. Employees are encouraged to use their paid-time off to rest and recharge, reducing burnout and supporting a healthy work-life balance. Additionally, the City provides an Employee Assistance Program (EAP), access to a wellness room that can be used outside of normal working hours, and mental health counseling for first responders.

Second, the City has a robust training and development program to provide career advancement as well as enhance employee engagement. One of the trainings encouraged and offered to all employees is the Clifton Strengths Finder assessment.

Strengths-based training helps enhance employee engagement and satisfaction by focusing on an employee’s individual talents, which fosters a sense of value and purpose.

This ultimately leads to higher retention rates, as employees feel more valued, aligned with their roles, and connected to the City’s mission. Professional growth and development are also fostered through the Tuition Reimbursement Program, where employees are eligible to receive reimbursement for the cost of educational programs which are directly related to the employee’s occupational field with the City. This demonstrates the City’s commitment to employees’ long-term professional development.

Employee engagement plays a critical role in retention, and the City recognizes its importance. Engaged employees who feel valued and supported tend to be motivated and passionate about their work and feel a strong connection to the organization.

Because of this significant impact, the City engages employees on a number of platforms.

Managers and supervisors are trained to provide regular performance feedback to employees and to recognize big and small accomplishments. Employees are also recognized formally through an employee recognition committee.

Item 6c
Communication also plays a pivotal role in employee engagement as it fosters trust, transparency, and a sense of connection between the employee and the City. To this end, the City Manager hosts regular bimonthly all-city briefings where employees are informed about issues that may impact them and provides an open line of communication.

Additionally, the City conducts an anonymous and confidential Employee Engagement Survey approximately every three years to gain insights on how to best support employees in delivering core services and achieving Council Major City Goals while ensuring a positive and engaged workforce. Through the survey, employees are empowered to share ideas and concerns. The most recent engagement survey was completed in early 2023, and the return rate was 88%. The following themes were identified and incorporated into the 2023-25 Major City Goal work plans to highlight and prioritize the importance of investing in the City’s workforce so each employee can effectively serve the community.
 Training and Development. Support and prioritize employee development and growth through investing in resources to train, develop, and onboard new and transitioning employees.
 Prioritization of Work. Support employees in managing and prioritizing their workloads by reviewing and prioritizing work efforts, goals, and balancing tradeoffs for a new workload.  Meeting Effectiveness. Evaluate and adjust internal meetings to create more effective meeting practices.
 Communication and Collaboration. Promote cross-department communication and collaboration amongst employees.
 Oracle Training and Communication. Evaluate and enhance the training and usability of Oracle Cloud, the City's Enterprise Resource Planning/Human Capital Management software.

In closing, the City has made significant strides in addressing vacancies and recruitment, and it is clear that retention is a crucial element for continued focus. By investing in employee engagement, wellness, professional development, recognition, and open communication, the City can continue to foster an environment where talent not only thrives but stays long-term.

Draft Policy for Public Hearings Under AB 2561
Attachment B, Exhibit A to Draft Resolution – Policies and Procedures for the Public Hearing Under AB 2561, outlines the proposed framework and procedures for holding public hearings and reporting on the City’s workforce vacancies, recruitment, and retention efforts in compliance with Assembly Bill 2561, with a purpose to ensure transparency, accountability, and responsiveness to community needs regarding the City’s staffing and employment practices. The draft policy includes definitions, reporting and notice requirements, and time allowed to present for employee organizations.

Previous Council or Advisory Body Action
There has been no previous Council or Advisory Body action. AB 2561 is a new law that went into effect January 1, 2025.

Item 6c
Public Engagement
This item is on the agenda for the March 4, 2025 City Council meeting and will follow all required postings and notifications. On December 23, 2024, all bargaining units were notified of the City’s intent to comply with Assembly Bill 2561. Further, they were notified they are entitled to make a presentation at this hearing pursuant to Government Code Section 3502.3. No other public outreach was conducted for this hearing.

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

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

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

Total $0 $0 $0 $0
The only cost associated with implementation of AB 2561 it the staff time associated with developing the report and presentation. Although AB 2561 created local mandates, it specifically precludes any reimbursement from the State pursuant to Part 7 of Division 4 of Title 2 of the Government Code (commencing with Section 17500) for costs mandated by the state pursuant to this act.

ALTERNATIVES

1. Direct staff to present the status of vacancies and recruitment and retention efforts during a public hearing more than once per fiscal year. The law only requires such reporting on an annual basis before a budget is adopted, and providing updates more frequently does not allow for collection of sufficient data to present accurate and appropriately representative reporting.

2. Modify the Policies and Procedures for Public Hearings Under AB 2561. Council may request changes or additions to the Policies and Procedures, so long as they comply with Government Code 3502.3.

Item 6c

ATTACHMENTS
A - Draft Resolution adopting “Policies and Procedures for the Public Hearing Under AB 2561”
B - Exhibit A to Draft Resolution – Policies and Procedures for the Public Hearing Under AB 2561
C - Assembly Bill No. 2561 Local Public Employees Vacant Positions Bill Text, including Government Code Section 3502.3
D - Recruitment, Referral, and Retention Incentive Program

R _______
RESOLUTION NO. _______ (2025 SERIES)

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS OBISPO, CALIFORNIA, ADOPTING “POLICIES AND PROCEDURES
FOR THE PUBLIC HEARING UNDER ASSEMBLY BILL 2561”
WHEREAS, Assembly Bill (AB) 2561, effective January 1, 2025, establishes new legal obligations for the City to report the status of their workforce vacancies and recruitment and retention efforts during a public hearing before the City Council at least once per fiscal year; and
WHEREAS, AB 2561 also requires the City to identify during the public hearing any necessary changes to City policies, procedures, and recruitment activities that may contribute to obstacles in the City’s hiring process; and WHEREAS, under AB 2561, the recognized employee organization for a bargaining unit is entitled to make a presentation to the City Council during the public hearing; and WHEREAS, procedural rules and policies regarding this public hearing are intended to ensure a fair, orderly, and efficient hearing process.

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

Resolution No. _______ (2025 Series) Page 2
SECTION 1: The City Council hereby adopts and approves the policies and procedures set forth in Exhibit A, incorporated herein, for public hearings held pursuant to California Assembly Bill 2561, codified at Government Code § 3502.3.

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

AYES:

NOES:

ABSENT:

The foregoing resolution was adopted this _______ day of _________________ 2025. __________________________
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

Policies and Procedures for Public
Hearings Under AB 2561

PURPOSE
This policy establishes the framework and procedures for holding public hearings and reporting on the City’s workforce vacancies, recruitment, and retention efforts in compliance with Assembly Bill 2561 (“AB 2561”) (Cal. Gov’t Code § 3502.3). The purpose is to ensure transparency, accountability, and responsiveness to community needs regarding the City’s staffing and employment practices.

SCOPE
This policy applies to the City, City Management, and the City Council.

DEFINITIONS
A. Authorized Full-Time Positions: regular part- and full-time positions that have been officially approved and funded by the City Council during the budget adoption process.

B. Recruitment: The process of advertising, screening, interviewing, and selecting qualified candidates for employment within the City of San Luis Obispo.

C. Retention: Efforts to maintain a stable and satisfied workforce by addressing factors that contribute to stability in the workforce.

D. Vacancies: Unfilled positions with the City of San Luis Obispo’s workforce that require recruitment efforts to fill.

POLICY STATEMENT
In accordance with AB 2561 (Cal. Gov’t Code § 3502.3) the City of San Luis Obispo shall hold a public hearing at least once per fiscal year prior to the adoption of the final budget and give a report on vacancies, recruitment, and retention efforts.

POLICY PROVISIONS
The City shall conduct public hearings at least once per fiscal year prior to the adoption of the final budget to present information on vacancies, recruitment, and retention efforts and issues with the policies, procedures, and recruitment activities that may lead to obstacles in the hiring process.

Notice of the public hearing shall be provided according to applicable law and City policies.

Members of the public and recognized employee organizations shall have the right to present information, concerns, and recommendations prior to the public hearing.

Each recognized employee organization shall have five (5) minutes total to present information, concerns, and recommendations at the public hearing. It is up to each employee organization how to allocate this five (5) minute allowance.

City of San Luis Obispo – Policies and Procedures for Public Hearings Under AB 2561

REPORTING REQUIREMENTS
The Human Resources Department of the City shall present information on the following at the public hearing:

1. The status of vacancies at the City

2. Information on City recruitment and retention efforts

3. Identify obstacles in the City’s hiring policies, procedures, and recruitment activities that may create challenges.

SPECIAL REPORTING REQUIREMENTS FOR HIGH VACANCY RATES
If the number of job vacancies within a single bargaining unit meets or exceed 20% of the total number of authorized full-time positions, then the City shall, upon the request of the recognized employee organization, include special reporting information at the public hearing as to that bargaining unit:

1. The total number of vacancies within the bargaining unit.

2. The total number of applications for vacant position within the bargaining unit.

3. The average number of days to complete hiring process from when a position is posted.

4. Opportunities to improve compensation and other working conditions.

MONITORING AND REVIEW
The City Council shall review the effectiveness of this policy on an annual basis and make revisions as necessary to ensure ongoing compliance with AB 2561 and alignment with best practices regarding public transparency. Notwithstanding the above, the City Manager is authorized to amend this policy for consistency with any changes in state law.

APPROVAL AUTHORITY: The City Council has delegated authority to the City Manager for future updates to this policy to remain in compliance with the law.

Responsible Department: Human Resources
Approved By:

Date Adopted:

For questions regarding this policy or to discuss a particular situation, please contact the Human Resources Department at (805) 781-7250.

SHARE THIS: Date Published: 09/23/2024 09:00 PM
AB-2561 Local public employees: vacant positions. (2023-2024) Assembly Bill No. 2561
CHAPTER 409
An act to add Section 3502.3 to the Government Code, relating to public employment. [ Approved by Governor September 22, 2024. Filed with Secretary of State September 22, 2024. ]

LEGISLATIVE COUNSEL'S DIGEST
AB 2561, McKinnor. Local public employees: vacant positions.

Existing law, the Meyers-Milias-Brown Act (act), authorizes local public employees, as defined, to form, join, and participate in the activities of employee organizations of their own choosing for the purpose of representation on matters of labor relations. The act requires the governing body of a public agency to meet and confer in good faith regarding wages, hours, and other terms and conditions of employment with representatives of recognized employee organizations and to consider fully presentations that are made by the employee organization on behalf of its members before arriving at a determination of policy or course of action.

This bill would, as specified, require a public agency to present the status of vacancies and recruitment and retention efforts at a public hearing at least once per fiscal year, and would entitle the recognized employee organization to present at the hearing. If the number of job vacancies within a single bargaining unit meets or exceeds 20% of the total number of authorized full-time positions, the bill would require the public agency, upon request of the recognized employee organization, to include specified information during the public hearing. By imposing new duties on local public agencies, the bill would impose a state-mandated local program. The bill would also include related legislative findings.

The California Constitution requires local agencies, for the purpose of ensuring public access to the meetings of public bodies and the writings of public officials and agencies, to comply with a statutory enactment that amends or enacts laws relating to public records or open meetings and contains findings demonstrating that the enactment furthers the constitutional requirements relating to this purpose.

This bill would make legislative findings to that effect.

The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.

This bill would provide that no reimbursement shall be made pursuant to these statutory provisions for costs mandated by the state pursuant to this act, but would recognize that a local agency or school district may pursue any available remedies to seek reimbursement for these costs.

Vote: majority Appropriation: no Fiscal Committee: yes Local Program: yes Home Bill Information California Law Publications Other Resources My Subscriptions My Favorites 1/8/25, 11:48 AM Bill Text - AB-2561 Local public employees: vacant positions. https://leginfo.legislature.ca.gov/faces/billNavClient.xhtml?bill_id=202320240AB2561 1/3

THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

SECTION 1. The Legislature finds and declares as follows:
(a) Job vacancies in local government are a widespread and significant problem for the public sector affecting occupations across wage levels and educational requirements. (b) High job vacancies impact public service delivery and the workers who are forced to handle heavier workloads, with understaffing leading to burnout and increased turnover that further exacerbate staffing challenges.
(c) There is a statewide interest in ensuring that public agency operations are appropriately staffed and that high vacancy rates do not undermine public employee labor relations.

SEC. 2. Section 3502.3 is added to the Government Code, to read:
3502.3. (a) (1) A public agency shall present the status of vacancies and recruitment and retention efforts during a public hearing before the governing board at least once per fiscal year. (2) If the governing board will be adopting an annual or multiyear budget during the fiscal year, the presentation shall be made prior to the adoption of the final budget. (3) During the hearing, the public agency shall identify any necessary changes to policies, procedures, and recruitment activities that may lead to obstacles in the hiring process. (b) The recognized employee organization for a bargaining unit shall be entitled to make a presentation at the public hearing at which the public agency presents the status of vacancies and recruitment and retention efforts for positions within that bargaining unit.
(c) If the number of job vacancies within a single bargaining unit meets or exceeds 20 percent of the total number of authorized full-time positions, the public agency shall, upon request of the recognized employee organization, include all of the following information during the public hearing:
(1) The total number of job vacancies within the bargaining unit. (2) The total number of applicants for vacant positions within the bargaining unit. (3) The average number of days to complete the hiring process from when a position is posted. (4) Opportunities to improve compensation and other working conditions. (d) This section shall not prevent the governing board from holding additional public hearings about vacancies. (e) The provisions of this section are severable. If any provision of this section or its application is held invalid, the invalidity shall not affect other provisions or applications that can be given effect without the invalid provision or application.
(f) For purposes of this section, “recognized employee organization” has the same meaning as defined in subdivision (a) of Section 3501.

SEC. 3. The Legislature finds and declares that Section 2 of this act, which adds Section 3502.3 to the Government Code, furthers, within the meaning of paragraph (7) of subdivision (b) of Section 3 of Article I of the California Constitution, the purposes of that constitutional section as it relates to the right of public access to the meetings of local public bodies or the writings of local public officials and local agencies. Pursuant to paragraph (7) of subdivision (b) of Section 3 of Article I of the California Constitution, the Legislature makes the following findings:

It is in the public interest, and it furthers the purposes of paragraph (7) of subdivision (b) of Section (3) of Article I of the California Constitution, to ensure that information concerning public agency employment is available to the public.

SEC. 4. No reimbursement shall be made pursuant to Part 7 (commencing with Section 17500) of Division 4 of Title 2 of the Government Code for costs mandated by the state pursuant to this act. It is recognized, however, that a local agency or school district may pursue any remedies to obtain reimbursement available to it under Part 7 (commencing with Section 17500) and any other law.
1/8/25, 11:48 AM Bill Text - AB-2561 Local public employees: vacant positions. https://leginfo.legislature.ca.gov/faces/billNavClient.xhtml?bill_id=202320240AB2561 2/3

1/8/25, 11:48 AM Bill Text - AB-2561 Local public employees: vacant positions. https://leginfo.legislature.ca.gov/faces/billNavClient.xhtml?bill_id=202320240AB2561 3/3

RECRUITMENT, REFERRAL, AND RETENTION INCENTIVE PROGRAM

PURPOSE
The purpose of the Recruitment, Referral, and Retention Incentive Program is to establish guidelines and procedures for the eligibility, approval, and processing of recruitment, hiring, referral, and retention incentives for applicants and employees.

POLICY
Pursuant to the City’s Compensation Philosophy, it is the policy of the City of San Luis Obispo to recruit and retain well-qualified employees who exemplify the City’s organizational values. To assist in recruitment and retention efforts, the following incentives have been identified as described in further detail below.

I. ACCELERATED VACATION ACCRUAL
Provide a year-for-year (1:1) accelerated vacation accrual for completed public sector years of service. For example, if an individual is extended a job offer after having five (5) years of public sector service, they will begin accruing vacation leave with the City of San Luis Obispo as if they have five (5) years of service.

To be eligible for service credit towards accelerated vacation accrual, the individual must:

1. Accept employment with the City of San Luis Obispo, and;

2. Fill a regular or contract position that is eligible for vacation accrual, and;

3. Have prior public sector work experience, and;

4. Provide details of prior public sector experience to Human Resources staff.

II. LUMP SUM HIRING INCENTIVE
Lump sum hiring incentives can be extended for regular or contract positions that are deemed hard to fill by the Director of Human Resources. The maximum value of the lump sum hiring incentives is $5,000 for all regular and contract positions, with the exception of Lateral Police Officers and Lateral Communications Technicians (Dispatchers) in the Police Department, as described in further detail below.

To be eligible for the lump sum hiring incentive, the following shall apply:

1. The hiring manager shall seek approval from the Director of Human Resources in advance of extending a job offer, and;

2. The individual must be filling a regular or contract position that is deemed difficult to fill by the Director of Human Resources, and;

3. The individual must be a selected candidate through the Employment Opportunity Program (EOP) or through an external recruitment.

4. The department must have sufficient budget to pay for the incentive.

Recruitment, Referral, and Retention Incentive Program – Last Updated June 2023 2 Due to the current and significant recruitment challenges for well-qualified employees in our Police Department, the hiring incentive specified below is designed in an effort to attract and retain the best Police Officers and Dispatchers possible to serve the San Luis Obispo community.

Lateral Police Officer Lump Sum Hiring Incentive
Offer a lateral police officer a signing incentive of up to $16,000 payable as follows:
• Up to $5,000 upon hire.
• Up to $1,000 upon successful completion of the Field Training Program. • Up to $5,000 upon successful completion of the 12-month probationary period. • Up to $5,000 paid upon successful completion of the third-year anniversary. • Grant up to forty (40) hours of vacation upon completion of the first six-months of employment. The Police Chief has the discretion to grant the 40 hours of vacation leave at a different time on a case-by-case basis.

Note: A lateral candidate is someone who has a minimum of one year of recent law enforcement experience and meets the minimum requirements of the position.

Lateral Communications Technician (Dispatcher) Lump Sum Hiring Incentive Offer a lateral dispatcher a signing incentive of up to $10,000 payable as follows:
• Up to $5,000 upon hire.
• Up to $1,000 upon successful completion of the Field Training Program. • Up to $2,000 upon successful completion of the 12-month probationary period. • Up to $2,000 paid upon successful completion of the third-year anniversary. • Grant up to forty (40) hours of vacation upon completion of the first six-months of employment. The Police Chief has the discretion to grant the 40 hours of vacation leave at a different time on a case-by-case basis.

Note: A lateral candidate is someone who has a minimum of one year of experience in dispatching for a Public Safety Agency and meets the minimum requirements of the position.

The lump sum hiring incentives will be provided to all eligible employees on their first paycheck, or as specified for the police positions above. All employees who receive a lump sum hiring incentive are subject to the continued service requirement outlined below.

Continued Service Requirement
Regular Employees
Failure to continue in the City service for three years, due to voluntary resignation, will result in the need to repay a proportional amount, of the relocation and/or hiring incentive. For example, an employee who receives a $3,000 hiring incentive and is reimbursed and resigns after 24 months with the City, will be responsible for repaying the City $1,000 ($3,000 total incentive divided by 36 months times remaining months to fulfill three-year commitment).

Recruitment, Referral, and Retention Incentive Program – Last Updated June 2023 3 The employee agrees that the Finance Department is authorized to make a deduction from the employee’s final payroll check for the appropriate amount of relocation and hiring incentive to be repaid. Employees who are terminated or released from probation are not required to repay the hiring incentive.

Contract Employees
Failure to continue in the City service for the term of the contract, due to voluntary resignation, will result in the need to repay a proportional amount, of the relocation and/or hiring incentive. For example, an employee with a two-year contract who receives a $3,000 hiring incentive and is reimbursed and resigns after 12 months with the City, will be responsible for repaying the City $1,500 ($3,000 total incentive divided by 24 months times remaining months to fulfill the two-year contract).

The employee agrees that the Finance Department is authorized to make a deduction from the employee’s final payroll check for the appropriate amount of relocation and hiring incentive to be repaid. Employees who are terminated or released from probation are not required to repay the hiring incentive.

III. REFERRAL INCENTIVES FOR EXISTING EMPLOYEES
To encourage employees to actively engage in the recruitment process, the City will pay a referral fee to existing employees who recruit a candidate for the City of San Luis Obispo employment in a regular or contract position who is ultimately hired for the position.

Exclusions

1. In order to avoid a conflict of interest, the following exclusions apply:
a. Appointed Officials and Department Heads are excluded from receiving a referral fee for any position.
b. Appointing authorities or supervisors who participate in the hiring decision are excluded from receiving a referral fee when referring applicants to the position for which they are recruiting.
c. Anyone who screens applications, serves on an interview panel, or otherwise participates in the selection and background investigation process are excluded from receiving a referral fee for the positions they were involved in recruiting.
d. Human Resources Department employees directly assigned to recruiting are excluded from receiving a referral fee.

2. Referring a current City employee will not result in a referral fee. This includes supplemental and contract employees who are hired into a regular position, or an employee in a regular position who is promoted or transferred to another position through the EOP.

Referral Fee Application Submittal and Deadline

1. The Referral Fee Application is available in the Forms and Policies section on SharePoint.

2. Referral Fee Applications must be submitted no later than one month after the new employee’s hire date. It is the responsibility of the employee to

Recruitment, Referral, and Retention Incentive Program – Last Updated June 2023 4 ensure that the application is submitted by the deadline. Referral fee applications will be submitted to the Human Resources Department, which is charged with administering the program.

3. The Human Resources Department will track each application submitted.

Application Certification
The new employee will be contacted by Human Resources to certify that a City of San Luis Obispo employee recruited them.

If more than one employee indicates they referred the same new employee, the Human Resources Director shall determine to whom the referral fee shall be paid based on the applicant's indication of which employee actively recruited them.

Prior to approving the Referral Fee Application, Human Resources staff will ensure none of the exclusions above apply.

Referral Fee Amount
After the referral fee application is approved, and the new employee has started work, the referring employee shall receive $500 (or up to $1,500 for employees who refer a lateral police officer or dispatcher), less applicable taxes. Payments will be processed along with the regular payroll check and will be reported as taxable income. The fee is not reported to CalPERS as special compensation.

Employees may make multiple referrals within the same calendar year. The second and subsequent approved referrals made by an employee in one calendar year will be paid at the amount of $1,000 less applicable taxes. Exception: Referrals for lateral police officer or dispatcher will remain at $1,500 for each referral. All other sections of this policy apply as described above.

Dispute Resolution
Any disputes arising from the Referral Fee section of this program may be appealed to the City Manager whose decision shall be final.

IV. RELOCATION REIMBURSEMENT
Relocation reimbursement is provided in an effort to ease the burden for candidates who accept employment with the City from out of the area and therefore face costs associated with the need to relocate. The City can reimburse relocation costs that are directly related to an employee’s relocation of 50 miles or more to San Luis Obispo County.

Eligibility Requirements
To be eligible for the relocation incentive the applicant must:

1. Accept employment with the City of San Luis Obispo, and;

2. Relocate their primary residence to San Luis Obispo County, and;

3. Relocate a distance of 50 miles or more, and;

Recruitment, Referral, and Retention Incentive Program – Last Updated June 2023 5 4. Fill a regular or contract position that is deemed difficult to fill by the Director of Human Resources.

Relocation Reimbursement Amount

1. Department Head positions. Total relocation benefits up to $15,000 (subject to applicable taxes).

2. All other regular or contract positions. Total relocation benefits up to $10,000 (subject to applicable taxes).

The reimbursement amount for each position will be determined by the hiring department and Human Resources and will be included in the new employee offer letter.

Eligible Expenses
Eligible expenses are those incurred in the movement and relocation of a personal place of residence meeting the eligibility requirements outlined above including the following:

1. Movement of household goods. The costs associated with packing, loading, transporting, and unloading personal household goods.

2. In-transit expenses. Gas, food, lodging during the actual move from the employee’s home at time of hire to their new temporary or permanent home in San Luis Obispo County.

3. Temporary living expenses. Hotel or motel, or other temporary lodging such as Airbnb or short-term rentals, necessary to allow the employee to start work.

4. First month rent and/or deposits. Costs associated with securing a residence in San Luis Obispo County such as the first month rent and security deposits for the new residence and costs associated with terminating a lease or rental agreement.

5. Closing costs. Costs associated with the sale of the employee’s primary residence or purchase of a home in San Luis Obispo County.

6. Other eligible expenses as defined by the Internal Revenue Service (IRS) for Form 3903, Moving Expenses.

Continued Service Requirement
Failure to continue in the City service for three years, due to voluntary resignation, will result in the need to repay a proportional amount of the relocation reimbursement, on a pay period basis. For example, if an employee resigns after one (1) year of employment with the City, they will be responsible for repaying approximately two thirds (2/3) of the reimbursed moving expenses.

The employee will sign an acknowledgment agreeing that the Finance Department is authorized to make a deduction from the employee's final payroll check for the appropriate amount of relocation reimbursement to be repaid. If the final payroll check is not adequate to cover the amount owed, the City will invoice the employee under its standard accounts receivable process and full range of collection options, if needed, according to Section 631 of the City’s Financial Management Manual. Employees who are terminated, released from probation, or discontinue employment due to death or

Recruitment, Referral, and Retention Incentive Program – Last Updated June 2023 6 permanent disability will not be required to repay the relocation reimbursement, and may not submit reimbursement requests after separating from employment.

Relocation Reimbursement Procedures
All authorized amounts described above will be documented in a new employee offer letter and the employee will sign acknowledging the benefits, potential tax consequences, and repayment requirements prior to starting work for the City. The City will not pay vendors directly for moving and relocation expenses.

The employee has up to one year after their hire date to use and claim their relocation reimbursement. If moving expenses are spread over several months, the employee may submit receipts in up to three separate requests, with a total of all requests not to exceed the authorized amount in the offer letter.

Once determined, the employee shall submit a completed Moving Expense Request Form with itemized receipts and a copy of their offer letter to their Department Head for approval. The Department Head will forward the approved documents to Payroll or disapproval to the Director of Human Resources, within five working days.

When the Department Head and/or the Director of Human Resources do not approve a submitted expense, an appeal may be made to the City Manager for a final decision.

All relocation reimbursements are considered taxable income for Federal income tax purposes. Moving and relocation expense reimbursements may or may not be considered taxable income for California income tax purposes depending on whether they are considered qualified or non-qualified, as prescribed by IRS tax code. Following submission of expense claims, Payroll Services will issue payment and deduct taxes accordingly.

V. STARTING SICK LEAVE BANK
The City Manager may authorize a one-time starting sick leave bank of up to 48 hours upon hire of a new Department Head. This will be documented in the new employee offer letter.

FUNDING SOURCE AND FUTURE CHANGES TO PROGRAM
Authorize the City Manager to make future administrative changes to this program in an effort to successfully attract and retain well-qualified employees. If there is a change to a monetary incentive, the department will be expected to cover the cost within departmental salary savings, or the City Manager can choose to move other funding as needed to support this program.

City of San Luis Obispo, Council Memorandum
City of San Luis Obispo
Council Agenda Correspondence
DATE: March 4, 2025
TO: Mayor and Council
FROM: Greg Hermann, Deputy City Manager
Prepared by: Lucia Pohlman, Sustainability and Natural Resources Analyst VIA: Whitney McDonald, City Manager
SUBJECT: ITEM 6D - AUTHORIZE PG&E AGREEMENT, ADOPT GOVERNMENT CODE 4217 FINDINGS, AND ISSUE WORK ORDER TO ADVANCE

MUNICIPAL FACILITY ENERGY SYSTEM RETROFITS
Staff received the following question, regarding the proposed participation in PG&E’s Sustainable Solutions Turnkey program for priority Lead by Example Energy Projects.

The question is below with staff’s response shown in italics:
1) Willdan examined BESS [Battery Energy Storage Systems] potential at several city facilities (page 701) but appears to base the recommendation on cost saving associated with electricity use and peak shaving. Some did not meet this criterion (Ludwick, City Hall, Library). Can the proposed BESS systems also be used as backup electricity supply? Is that a benefit was considered?
Willdan included small battery systems at the Corp Yard, Police Station, and Swim Center in their response to PG&E’s Request for Proposals. This BESS measure was estimated to have a simple payback period1 of 25.5 years. As described in the Council Agenda Report, a scope of work pursued through Government Code Section 4217 must provide cost savings to the agency. The City interprets “cost savings” to mean that the savings from all of the assets in a project portfolio are greater than the cost of the assets over the span of those assets’ useful lives. After further review, Willdan, PG&E, and the City agreed to remove BESS from the project portfolio because BESS typically have a useful life of 20 years and the proposed BESS measure had a 25.5-year payback period, which undermined the overall cost savings from the project portfolio. Further evaluation may be completed as part of the proposed Investment Grade Audit to determine whether there is a viable BESS at any site that could deliver cost savings. If any cost saving systems are identified, BESS may be reintroduced into the scope of work for the Investment Grade Audit, and any resilience benefits would be estimated at a high level in the final Investment Grade Audit report.

1 Simple payback period means the savings from the proposed project would pay for the capital cost of the project over the specified time period.

Item 6d. Authorize PG&E Agreement, adopt Government Code 4217 Findings, and issue Work Order to advance Municipal Facility Energy System Retrofits Page 2 It is important to note that battery storage and related resilience benefits are referenced in the Climate Adaptation and Safety Element of the General Plan and Lead by Example 2025-29 Work Program. Staff will continue to monitor external funding opportunities outside of the Sustainable Solutions Turnkey program to implement battery systems at City Facilities that have the potential to deliver both cost savings and resilience benefits.

Item 6d
Department: Administration
Cost Center: 9501
For Agenda of: 3/4/2025
Placement: Public Hearing
Estimated Time: 15 minutes
FROM: Greg Hermann, Deputy City Manager
Prepared By: Lucia Pohlman, Sustainability and Natural Resources Analyst SUBJECT: AUTHORIZE PG&E AGREEMENT, ADOPT GOVERNMENT CODE 4217

FINDINGS, AND ISSUE WORK ORDER TO ADVANCE MUNICIPAL
FACILITY ENERGY SYSTEM RETROFITS.

RECOMMENDATION

1. Adopt a Draft Resolution entitled, “A Resolution of the City Council of the City of San Luis Obispo, California, making findings on energy savings and authorizing a Services Agreement with the Pacific Gas and Electric Company pursuant to California Government Code Section 4217” and thereby approve the use of a design-build procurement method consistent with Government Code Section 4217; and

2. Authorize the City Manager to execute a Services Agreement with Pacific Gas and Electric Company (PG&E) to provide turnkey services for energy conservation assessments of City facilities and installation of energy conservation measures; and

3. Authorize the City Manager to execute a Work Order for an Investment Grade Audit for the Municipal Facility Energy System Retrofit Project.

POLICY CONTEXT
The information presented in this report is grounded in standing policy, including:
 Land Use Element of the General Plan:
o Policy 9.4 (Climate Action Plan) - The City shall maintain and implement its Climate Action Plan to reduce community and municipal GHG emissions consistent with State laws and objectives.
 Conservation and Open Space Element of the General Plan:
o Policy 2.2.1 (Atmospheric Change) - City actions shall seek to minimize undesirable climate changes and deterioration of the atmosphere’s protective functions that result from the release of carbon dioxide and other substances.
o Policy 2.2.5 (Model City) – The City will be a model of pollution control efforts. It will manage its own operations to be as pollution free as possible.

The City will work with other agencies and organizations to help educate citizens in ways to prevent air pollution.