San Luis Obispo City Council
June 3, 2025

City Council
AGENDA

Tuesday, June 3, 2025, 5:30 p.m.

Council Chambers, 990 Palm Street, San Luis Obispo
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INSTRUCTIONS FOR PUBLIC COMMENT:

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

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

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

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

Public Comment during the meeting:

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

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

Pages

1. CALL TO ORDER
Vice Mayor Michelle Shoresman will call the Regular Meeting of the San Luis Obispo City Council to order.

2. PLEDGE OF ALLEGIANCE
Council Member Jan Marx will lead the Council in the Pledge of Allegiance.

3. PRESENTATIONS

3.a HUNGER AWARENESS DAY PROCLAMATION
Vice Mayor Shoresman will present a proclamation declaring June 6th as "Hunger Awareness Day".

3.b INTRODUCTION - MATTHEW PENNON, DIVERSITY, EQUITY AND

INCLUSION MANAGER
Deputy City Manager Greg Hermann will introduce Matthew Pennon the new Diversity, Equity and Inclusion Manager.

3.c CITY MANAGER REPORT
Receive a brief report from City Manager Whitney McDonald.

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

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

Recommendation:

To approve Consent Calendar Items 5a to 5l.

5.a WAIVE READING IN FULL OF ALL RESOLUTIONS AND

ORDINANCES
Recommendation:

Waive reading of all resolutions and ordinances as appropriate.

5.b MINUTES REVIEW - MAY 20, 2025 DRAFT COUNCIL MINUTES 11 Recommendation:

Approve the minutes of the City Council meeting held on May 20, 2025.

5.c ADOPTION OF ORDINANCE NO. 1746 (2025 SERIES) AMENDING SECTION 17.86.080 OF TITLE 17 OF THE MUNICIPAL CODE TO

CLARIFY SPECIFIC LAND USE AND OPERATIONAL

REQUIREMENTS FOR COMMERCIAL CANNABIS ACTIVITY
[CITYWIDE]
21 Recommendation:

Adopt Ordinance No. 1746 (2025 Series) entitled, “An Ordinance of the City Council of the City of San Luis Obispo, California, approving an amendment to Section 17.86.080 (“Cannabis”) of Title 17 (“Zoning”) of the Municipal Code to clarify specific land use and operational requirements for commercial cannabis activity.” The project is exempt from environmental review under CEQA Guidelines Section 15301.

5.d CONSIDERATION OF THE 2025-26 HUMAN SERVICES GRANT

FUNDING RECOMMENDATIONS
43 Recommendation:

As recommended by the Human Relations Commission,
approve the 2025-26 Human Services Grant funding allocations in the amount of $150,000; and

1. Authorize the City Manager to execute agreements with each grant recipient.

2. 5.e 2025-26 PROJECTS FUNDED BY SB1: THE ROAD REPAIR AND ACCOUNTABILITY ACT OF 2017
63 Recommendation:

Adopt a draft Resolution entitled, “A Resolution of the City Council of the City of San Luis Obispo, California, adopting a list of projects for Fiscal Year 2025-26 funded by SB 1: The Road Repair and Accountability Act of 2017.”

5.f APPROVE A MILLS ACT HISTORICAL PROPERTY PRESERVATION AGREEMENT FOR THE “VOLLMER HOUSE” AT 1116 PISMO
STREET (HIST-0151-2025)
73 Recommendation:

As recommended by the Cultural Heritage Committee, adopt a Draft Resolution entitled “A Resolution of the City Council of the City of San Luis Obispo, California, approving a Historic Property Preservation Agreement between the City and the owners of the Vollmer House at 1116 Pismo Street (Application No. HIST-0151-2025)”

5.g AUTHORIZE THE DISPOSAL OF WRECKED FLEET ASSET 1712 93 Recommendation:

Authorize the Disposal of a Wrecked Fleet Asset No. 1712 in Accordance with Section 405-L of the City’s Financial Management Manual.

5.h FINAL ACCEPTANCE OF PUBLIC IMPROVEMENTS FOR TRACT
2428 PHASE 3 – A RESIDENTIAL SUBDIVISION AT 3000 CALLE
MALVA
143
Recommendation:

Adopt a Draft Resolution entitled, “A Resolution of the City Council of the City of San Luis Obispo, California, Accepting the Public Improvements, Certifying Completion of the Private Improvements, and Authorizing Release of the Securities for Tract 2428-Phase 3 (3000 Calle Malva)” accepting the public improvements, certifying the private improvements, and authorizing the release of securities for Tract 2428- Phase 3.

5.i AUTHORIZE COMMUNITY PARTNERSHIP AGREEMENT WITH SAN
LUIS OBISPO MUSEUM OF ART FOR 2025-2027
163
Recommendation:

Authorize the Mayor to execute a two-year Community Partnership Agreement with the San Luis Obispo Museum of Art for installation of several public art projects each year and as approved by the City Attorney.

5.j AUTHORIZE SELF-INSURED RETENTION INCREASE WITHIN THE CALIFORNIA JOINT POWERS INSURANCE AUTHORITY’S

GENERAL LIABILITY EXCESS PROTECTION PROGRAM
225
Recommendation:

Adopt a draft Resolution entitled, “A Resolution of the City Council of the City of San Luis Obispo, California, approving an Increase to the SelfInsured Retention Limit within the California Joint Powers Insurance Authority's General Liability Excess Insurance Program.”

5.k APPROVE THE AFFORDABLE CARE ACT REPORTING AND

TEMPORARY EMPLOYEE ELIGIBILITY POLICY IN COMPLIANCE

WITH THE AFFORDABLE CARE ACT
233
Recommendation:

Adopt a draft Resolution entitled, “A Resolution of the City Council of the City of San Luis Obispo, California, adopting the Affordable Care Act Reporting and Temporary Employee
Eligibility Policy.”

1. Authorize the City Manager to make future administrative changes to the policy as deemed necessary to remain
compliant with Affordable Care Act.

2. 5.l AUTHORIZATION TO TRANSFER FUNDS FROM SEWER FUND

COMPLETED PROJECTS AND AWARD THE FOOTHILL-SANTA

ROSA SEWER PIPELINE REPLACEMENT PROJECT,
SPECIFICATION NO. 2000096
249
Recommendation:

Authorize the transfer of $126,000 from Sewer Fund Completed Projects (602.9501.71501) to the Foothill-Santa Rosa Sewer Pipeline Replacement Project, Specification No. 2000096; and

1. Award a Construction Contract to Souza Engineering
Contracting, Inc in the amount of $598,591.00 for the FoothillSanta Rosa Sewer Pipeline Replacement Project, Specification No. 2000096; and

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

3. 6. PUBLIC HEARING AND BUSINESS ITEMS

6.a INTRODUCE A DRAFT ORDINANCE ADOPTING THE CALFIRE

LOCAL RESPONSIBILITY AREA FIRE HAZARD SEVERITY ZONE
MAPS AS REQUIRED BY GOVERNMENT CODE 51178
255
Recommendation:

Adopt an Ordinance entitled “An ordinance of the City of San Luis Obispo, California, designating the Fire Hazard Severity Zones as identified by the State Fire Marshal.”

7. LIAISON REPORTS AND COMMUNICATIONS
Not to exceed 15 minutes. Council Members report on subcommittee assignments, listed below, and other City activities. At this time, any Council Member or the City Manager may ask a question for clarification, make an announcement, or report briefly on their activities. In addition, subject to Council Policies and Procedures, they may provide a reference to staff or other resources for factual information, request staff to report back to the Council at a subsequent meeting concerning any matter or take action to direct staff to place a matter of business on a future agenda. (Gov. Code Sec. 54954.2) Mayor
Stewart
Vice Mayor
Shoresman
Council Member
Boswell
Council Member
Francis
Council
Member Marx
SLO Council of
Governments
Zone 9 Advisory
Committee
Airport Land Use Nacimiento Water
Project
Air Pollution
Control District
Regional
Economic Action
Coalition
Downtown
Association
Board
SLO Climate
Coalition
Community
Action
Partnership
Integrated
Waste
Management
Authority
CA Men’s
Colony Advisory
Committee
Homeless
Services
Oversight
Committee
Local Agency
Formation
Commission
County Water
Resources
Advisory
Committee
Performing Arts
Center
Commission
CP Campus
Planning
Committee
SLO Regional
Transit Authority
Visit SLO
County Advisory
Committee
Central Coast
Clean Energy

8. ADJOURNMENT
The next Regular Meeting of the City Council will be held on June 17, 2025 at 5:30 p.m. in the Council Chambers at City Hall, 990 Palm Street, San Luis Obispo.

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

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

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

1 Council Minutes
May 20, 2025, 5:30 p.m.

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

Present:

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

1. CLOSED SESSION (4:45 PM - 5:30 PM)

1.a CALL TO ORDER

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

None
---End of Public Comment---

1.c CONFERENCE WITH LEGAL COUNSEL—ANTICIPATED LITIGATION ACTION: City Attorney Christine Dietrick reported that the Council met in Closed Session on this item.

Motion By Council Member Francis
Second By Council Member Marx
To authorize the initiation of litigation. We are not disclosing the details of the case at this time out of concern for the ability to service the necessary parties and potential interference with that. The details will be available upon inquiry upon commencement of the action. There was no additional reportable action taken.

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

2 2. CALL TO ORDER
A Regular Meeting of the San Luis Obispo City Council was called to order on May 20, 2025 at 5:40 p.m. in the Council Chambers, 990 Palm Street, San Luis Obispo, by Mayor Stewart.

3. PLEDGE OF ALLEGIANCE
Mayor Stewart led the Council in the Pledge of Allegiance.

4. PRESENTATIONS

4.a ALS AWARENESS MONTH PROCLAMATION
Mayor Stewart presented a proclamation declaring May as "ALS Awareness Month" to Victoria Grostick on behalf of Amyotrophic Lateral Sclerosis Community.

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

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

William Jodry
MaryJane Jodry
Kathie Walker
Steven Walker
--End of Public Comment--

6. CONSENT AGENDA
Public Comment:

Item 6e
John McKenzie
Jeff Herbst
Jonathan
William Keniston
Brooke Schumacher
--End of Public Comment--
Motion By Council Member Francis
Second By Council Member Marx
To approve Consent Calendar Items 5a to 5j.

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

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

6.b MINUTES REVIEW - APRIL 29, 2025, APRIL 30, 2025, AND MAY 6, 2025

COUNCIL MINUTES
Approve the following minutes of the City Council:
 April 29, 2025 - Special Meeting
 April 30, 2025 - Special Closed Session Meeting
 May 6, 2025 - Regular Meeting

6.c FY 2024-25 Q3 BUDGET REPORT
Receive and file the FY 2024-25 Q3 Budget Report.

6.d APPROVE A THREE-YEAR CONTRACT RENEWAL FOR MICROSOFT OFFICE 365 GOVERNMENT PLAN SUBSCRIPTION LICENSES

1. Approve a three-year contract renewal for Microsoft Office 365 Government Plan subscription licenses; and

2. Per Municipal Code 3.24.060E, authorize waiver of formal bids to purchase Microsoft Office 365 subscription licenses through the cooperative agreement under the Licensed Support Provider (LSP) Agreement No IT ARC-00934 for Microsoft products and services under Microsoft Enterprise Agreement (EA) – 8084445 between the County of Riverside and Dell Marketing, L.P.; or below the cooperative purchasing net cost within the same terms and conditions; and

3. Authorize the City Manager to approve related Purchase Order Requisitions through the duration of the agreement.

6.e AUTHORIZATION TO ADVERTISE THE RIGHETTI COMMUNITY PARK PROJECT, SPECIFICATION NO. 2000054

1. Adopt Resolution No. 11563 (2025 Series) entitled, “A Resolution of the City Council of the City of San Luis Obispo, California, Authorizing Various Fund Reappropriations and Transfers to

4 Support the Righetti Community Park Project, Specification Number 2000054, and approving an Addendum to the Orcutt Area Specific Plan Environmental Impact Report for the Righetti Community Park Project.”

2. Approve the Project Plans and Special Provisions for the Righetti Community Park, Specification 2000054; and,

3. Authorize staff to advertise for bids; and,

4. Authorize the City Manager to award the Construction Contract pursuant to Section 3.24.190 of the Municipal Code, if the lowest responsible bid is within the Engineer’s Base Bid Estimate of $9,950,000; and,

5. Authorize the City Engineer to issue Contract Change Orders, provided they remain within the approved project budget or any amended budget subsequently authorized by the City Manager; and,

1. Authorize the Finance Director to:
a. Transfer funds to the Righetti Community Park Capital Project (Account No. 2000054) from the Development
Related Park Improvements project (Account No. 2000057 – Orcutt Area Tasks), as follows:
i. $304,637 in Capital Outlay Funds (LRM) from Account
No. 2000057-00
ii. $3,987,138 in Capital Outlay Funds (LRM) from Account No. 2000057-02
iii. $1,558,970.27 in Orcutt Area Specific Plan (OASP) Park Improvement Funds from Account No. 2000057-03
iv. $19,802.04 in OASP Park Improvement Funds from
Account No. 2000057-03
v. $14,850.80 in OASP Park Improvement Funds from
Account No. 2000057-04
vi. $783,512.85 in Capital Outlay Funds (LRM) from Account No. 2000057-05
vii. $500,000 in OASP Park Improvement Funds from
Account No. 2000057-05

5 b. Disappropriate $1,136,522 in Park Improvement Impact Fee – Citywide Fund back to the fund’s unallocated balance, as follows: $836,522 from Account No. 2000057-02$300,000
from Account No. 2000057-04
c. Disappropriate $180,197.96 in OASP Park Improvement
Funds from the Development Related Park Improvements
project (Account No. 2000057-03), which was
overcommitted

6. Approve the Addendum to the Orcutt Area Specific Plan Final Environmental Impact Report

6.f 2025 WATER SUPPLY AND DEMAND ASSESSMENT
Receive and file the City’s 2025 Water Supply and Demand Assessment

6.g AUTHORIZE EXECUTION OF OPEN-LOOP PAYMENT SYSTEM
AGREEMENTS AND AN AMENDMENT TO SB 125 COOPERATIVE

AGREEMENT WITH SLOCOG FOR REIMBURSEMENT OF COSTS

1. Adopt Resolution No. 11564 (2025 Series) entitled, “A Resolution of the City Council of the City of San Luis Obispo, California, approving agreements for San Luis Obispo (SLO) Transit’s openloop payment system project”; and

2. Authorize execution of Amendment No. 1 to the Senate Bill (SB) 125 Cooperative Agreement with SLOCOG for reimbursement of open-loop payment system project costs; and

3. Authorize execution of an agreement with Kuba, Inc. for procurement, installation, and warranty of payment acceptance devices; and

4. Authorize execution of an agreement with Kuba Inc. for ongoing support services for payment acceptance devices; and

5. Authorize execution of an agreement with Littlepay, Inc. for transit processor services; and

6. Authorize execution of an agreement with Token Transit, Inc. for integration and ongoing support of digital pass and fare purchases; and

6 7. Authorize the Finance Director to negotiate and execute an agreement with Elavon, Inc. for merchant processing services as part of the system configuration process.

6.h ACCEPTANCE OF THE FEDERAL SINGLE AUDIT FOR FISCAL YEAR 2023-24
Review and accept the Federal Single Audit Report for Fiscal Year 2023-

24. 6.i AUTHORIZE RELEASE OF RFP FOR MISSION PLAZA CAFÉ KIOSK

1. Authorize the release of a Request for Proposal for a food and beverage vendor at the Mission Plaza; and

2. Authorize the City Manager to award the contract and execute a vendor lease agreement with the selected vendor in a form approved by the City Attorney.

7. PUBLIC HEARING AND BUSINESS ITEMS

7.a REVIEW THE PROCESS FOR ISSUING NOTICE TO CORRECT TO

PRIVATE PROPERTY OWNERS FOR UNSAFE SIDEWALK OR

FRONTAGE CONDITIONS, AND AUTHORIZE STAFF TO ISSUE

NOTICES TO CORRECT
Deputy Director of Public Works Greg Cruce provided an in-depth staff report and responded to Council questions.

Public Comments:

Cynthia Kelley
---End of Public Comment---
Motion By Vice Mayor Shoresman
Second By Mayor Stewart

1. Adopt Resolution No 11565 (2025 Series) formalizing the City’s procedures for issuing Informal and Formal Notices to Correct for sidewalk and frontage improvement deficiencies; and

2. Adopt Resolution No. 11566 (2025 Series) approving the issuance of Formal Notices to Correct to the property owners of 360 Chorro Street, 368 Chorro Street, 878 Islay Street, 859 Mission Street, 867 Mission Street, 875 Mission Street, and 1543 Morro Street, and authorizing the City to execute the required work if the property

7 owner fails to commence the work within 14 days after the first Formal Notice to Correct is sent; with the following changes:
removing 360 Chorro, 368 Chorro, and 3195 South Higuera as work has been completed and waiting 30 days before starting the Formal Notice to Correct process; and

3. Authorize the Public Works Director to waive issuance of a Formal Notice to Correct if the property owner takes corrective action before the notice is formally issued.

4. Appropriate $178,102 from the CIP Reserves to fund the sidewalk reconstruction work.

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

7.b CONSIDER CREATING A COMMITTEE TO REVIEW THE CITY'S

ELECTION CAMPAIGN REGULATIONS AND/OR COUNCIL AND

ADVISORY BODY COMPENSATION
Motion By Vice Mayor Shoresman
Second By Council Member Francis
To form a Council Compensation Committee to review the full Council compensation package and compensation for Planning Commission and Architectural Review Commission and review all Advisory Bodies meeting and time commitments to make a recommendation if stipends should be provided, and recommendations to return to the City Council no later than May 1, 2026.

Ayes (5): Council Member Boswell, Council Member Francis, Council Member Marx, Vice Mayor Shoresman, and Mayor Stewart
CARRIED (5 to 0)
Motion By Mayor Stewart
Second By Council Member Francis
To direct staff to return in April 2026 with an Ordinance amending Section

2.40.040 of the Municipal Code to increase the maximum allowable per person contribution from $250 to $500;

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

8. LIAISON REPORTS AND COMMUNICATIONS
Mayor Stewart
 Attended the Coastal Rail Commission meeting on on May 16th on behalf of SLO Council of Governments (SLOCOG) -
 Attended Righetti Open Space Ribbon Cutting
 Met with Senator Laird regarding AB306
 Met with Jason Wheeler from Jack Rabbit
 Attended May 15th SCLC meeting
 Attended the Cuesta RN pinning
Vice Mayor Shoresman
 Will be attending the Homeless Services Oversight Committee tomorrow May 21st.
 Attended the SLO Arts Council recognition event
 Attended the Building a Better SLO workshop
 Attended the County Mayor's lunch in Morro Bay on behalf of the Mayor  Attended the Righetti Ranch Open Space Ribbon Cutting Council Member Boswell
 Attended the Righetti Open Space Ribbon Cutting
 Attended the Fire Department Badge Pinning
Council Member Francis
 Update on CAPSLO
 Attended the Child Care Resource Connection meeting
 Attended the Pacific Wildlife Organization ribbon cutting  Attended a Build a Better SLO workshop

9 Council Member Marx
 Will be attending the Air Pollution Control District (APCD) tomorrow May 21st
 Participated in interviews for new Executive Director for Integrated Waste Management Authority (IWMA)
 Attended a League of Women Voters meeting on May 10th  Attended the City Farm Sheep Shearing Shindig
 Attended the Righetti Ranch Open Space Ribbon Cutting

9. ADJOURNMENT
The meeting was adjourned at 8:50 p.m. The next Regular City Council Meeting is scheduled for June 3, 2025 at 5:30 p.m. in the Council Chambers at City Hall, 990 Palm Street, San Luis Obispo.

APPROVED BY COUNCIL: XX/XX/202X

Item 5c
Department: Community Development
Cost Center: 4001
For Agenda of: 6/3/2025
Placement: Consent
Estimated Time: N/A
FROM: Timmi Tway, Community Development Director
Prepared By: Ivana Gomez, Cannabis Business Coordinator SUBJECT: SECOND READING AND ADOPTION OF ORDINANCE NO. 1746 (2025 SERIES) AMENDING SECTION 17.86.080 (“CANNABIS”) OF TITLE 17 (“ZONING”) OF THE MUNICIPAL CODE TO CLARIFY SPECIFIC LAND

USE AND OPERATIONAL REQUIREMENTS FOR COMMERCIAL
CANNABIS ACTIVITY [CITYWIDE] (COD

RECOMMENDATION
Adopt Ordinance No. 1746 (2025 Series) entitled, “An Ordinance of the City Council of the City of San Luis Obispo, California, approving an amendment to Section 17.86.080 (“Cannabis”) of Title 17 (“Zoning”) of the Municipal Code to clarify specific land use and operational requirements for commercial cannabis activity.” The project is exempt from environmental review under CEQA Guidelines Section 15301. (Attachment A)

POLICY CONTEXT
On May 6, 2025, staff presented the Annual Cannabis Business Program Update, including proposed text amendments to the City’s cannabis zoning regulations to clarify specific land use and operational requirements for commercial cannabis activity. Per Chapter 17.124 (Amendments - Zoning Regulations and Zoning Map), the City Council may review the proposed text amendments, including the Planning Commission’s recommendation, and take action based on consistency with the General Plan and State Law.

DISCUSSION
Previous Council or Advisory Body Action
Staff presented the proposed text amendments to the Planning Commission at a public hearing on April 9, 2025. The Planning Commission reviewed the proposed text amendments to the City’s Zoning Regulations and voted 7-0 to adopt Resolution No. PC1100-25 recommending the City Council introduce and adopt an ordinance to amend Section 17.86.080 (“Cannabis”) of Title 17 (“Zoning”) of the Municipal Code1.

1 04-09-2025 PC Action Update

Item 5c
During a public hearing held on May 6, 2025 to receive an update on the Cannabis Business Program, the City Council voted 5-0 to introduce a draft ordinance entitled, “An Ordinance of the City Council of the City of San Luis Obispo, California, amending Section

17.86.080 ("Cannabis") of Title 17 ("Zoning Regulations") of the Municipal Code to clarify specific land use and operational requirements for commercial cannabis activity2.” If the Council adopts Ordinance No. 1746 (2025 Series) (Attachment A), it shall be effective 30 days after its final passage.

Proposed Text Amendments

1. Land Use Requirements for Retail Storefronts
Amendments to SLOMC Sections 17.86.080(E)(4)(e), (E)(10)(b)(iii), and (E)(12)(c)(vii) clarify that the 300-foot buffer from residentially zoned areas applies only within Cannabis Business (CBZ) Overlay Zones. This reflects the original legislative intent, as outlined in the May 1 and September 4, 2018 staff reports from the original adoption of the City’s buffer and zoning requirements for commercial cannabis and ensures consistency with the City's historical interpretation and application3. The buffer was always intended to apply only where residential zoning exists within a CBZ, such as in the South Broad and Airport Area CBZs. The need for this clarifying amendment was brought to staff’s attention after a recent appeal of a Conditional Use Permit approval for a retail storefront at 2400 Broad Street and aims to eliminate confusion for current and future projects. Additional language is proposed to clarify that new adjacent sensitive uses established after a retail storefront receives a Conditional Use Permit do not affect the continuation of that use.

This change reinforces the principle that legally established land uses may continue despite subsequent changes in neighboring land use.

2. Commercial Cannabis Development Standards
The term “CAN Overlay” in SLOMC Section 17.86.080(E)(5)(b) will be updated to “CBZ Overlay” for consistency with the City’s Zoning Map and Municipal Code.

3. Regulations for Retail Storefronts within a Microbusiness Operation State regulations (Cal. Code Regs., Title 4, § 15500) and City regulations (SLOMC Section 17.86.080(E)(12)(c)(i)) require that microbusinesses authorized to engage in retail sale comply with all rules and requirements applicable to a retailer license. Two amendments are proposed to align microbusiness regulations with current standards for retail storefront operations. First, the allowable hours of operation for retail storefront components of a microbusiness would be extended to match standalone retail storefronts (7:00 a.m. to 9:00 p.m. daily), consistent with the City’s regulations. Second, signage requirements would be updated to reflect the current entry restrictions, which allow

2 05-06-2025 Action Update
3 05-01-2018 Item 15 Cannabis Regulations Ordinance (1st Reading); 09-04-2018 Item 1 Establish Cannabis Business Locations

Item 5c
individuals 18 and older with a valid physician’s recommendation to enter a retail storefront, aligning with other retail storefront standards.

4. Purpose Statement – Reference to Federal Law
To avoid the need for future updates, the proposed amendment removes reference to the specific federal classification of cannabis in the purpose statement of SLOMC Section

17.86.080(A). Instead, the revised language affirms that the section does not alter or affect federal law, regardless of federal scheduling.

Public Engagement
The proposed text amendments were noticed in accordance with San Luis Obispo Municipal Code (SLOMC) Chapter 17.122 (Public Notices and Hearing) and California Government Code Sections 65854, 65090, and 65091. Notice of the proposed text amendments was published in the local newspaper on March 20, 2025, in advance of the Planning Commission hearing held on April 9, 2025. Additional public notices were published on April 10, 2025, prior to the City Council hearing on May 6, 2025, and again on May 29, 2025, in advance of the June 3, 2025, meeting to consider final adoption of the ordinance.

CONCURRENCE
Some of the proposed amendments are declaratory of existing law, ensuring clarity and regulatory consistency for both pending and future projects, and others are intended to conform City regulations to allowances under state law. The Director of Community Development and the City Attorney’s Office have reviewed the proposed amendments to the City’s cannabis zoning regulations and have found them to be consistent with State Law and the legislative intent of the adopted Ordinance.

ENVIRONMENTAL REVIEW
Adoption of the proposed amendments to Section 17.86.080 of the Municipal Code have been reviewed in accordance with the California Environmental Quality Act (CEQA) Guidelines. It has been determined that the amendments are exempt from environmental review under CEQA Guidelines Section § 15301(b)(3) (General Rule Exemption), which applies to activities that can be clearly seen to have no potential for significant environmental impact. Project-specific environmental review will be required for any new commercial cannabis activity.

FISCAL IMPACT
Budgeted: N/A Budget Year: 2025-26
Funding Identified: N/A

Item 5c
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
This item has no fiscal impact, as it does not propose any changes to the adopted budget or result in new expenditures or revenues. The update is informational in nature and reflects existing operations and fee structures previously approved by the City Council as part of the 2023–2025 Financial Plan. The proposed amendments to the Municipal Code are intended to clarify existing regulations and do not establish any new requirements.

ALTERNATIVES

1. The City Council may decide not to adopt the proposed Ordinance with recommended changes to the Zoning Regulations. The proposed changes to Sections 17.86.080(E)(4)(e), 17.86.080(E)(10)(b)(iii), and 17.86.080(E)(12)(c)(vii) are declaratory of existing law, and without adoption of the recommended changes, unintended ambiguity may persist regarding existing land use and operational requirements for commercial cannabis activity. The proposed changes to Section

17.86.080(E)(12)(c)(ix)-(x) are intended to reflect what is permitted under current state law, and without adoption of the recommended changes, the City’s cannabis regulations will remain inconsistent therewith.

2. The City Council may modify the proposed Ordinance. Substantive changes will require reintroduction at a subsequent public hearing.

3. The City Council may continue the item. The City Council may continue the item to a date uncertain if additional information is needed to address the proposed text amendments.

ATTACHMENTS
A – Ordinance No. 1746 (2025 Series) adopting text amendments to Section 17.86.080 (“Cannabis”) of Title 17 (“Zoning Regulations”) of the Municipal Code to clarify specific land use and operational requirements for commercial cannabis activity (CODE-0051- 2025).

ORDINANCE NO. 1746 (2025 SERIES)

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SAN LUIS OBISPO, CALIFORNIA, AMENDING SECTION 17.86.080 (“CANNABIS”) OF TITLE 17 (“ZONING REGULATIONS”) OF THE MUNICIPAL CODE

TO CLARIFY SPECIFIC LAND USE AND OPERATIONAL
REQUIREMENTS FOR COMMERCIAL CANNABIS ACTIVITY. THE
PROJECT IS EXEMPT FROM ENVIRONMENTAL REVIEW (CEQA).

WHEREAS, on May 15, 2018, the City Council adopted Ordinance No. 1647 (2018 Series), amending the Municipal Code (“SLOMC”) to establish regulations for commercial cannabis activity, including adoption of SLOMC Chapter 9.10 (Cannabis Regulations) and SLOMC § 17.86.080 (Cannabis Zoning Regulations), formerly Chapter 17.99; and WHEREAS, on March 21, 2023, the City Council adopted Ordinance No. 1725 (2023 Series) modifying specific rules for commercial cannabis retail storefront operations including expansion of allowable hours of operation from 9:00AM and 8:00PM daily to 7:00AM and 9:00PM daily and allowing individuals 18 to 20 years of age who have a valid physician’s recommendation for medicinal cannabis to enter and access retail storefronts who possess a valid state of California cannabis retailer license with M-designation (For Medical Use); and
WHEREAS, on September 18, 2018, the City Council adopted Ordinance No. 1653 (2018 Series), amending the City’s Zoning Regulations and Zoning Map to designate seven areas of the City as Cannabis Business Overlay Zones (“CBZ Overlay Zones”) where cannabis businesses may be located. Then, on May 16, 2023, the City Council adopted Ordinance No. 1727 (2023 Series), amending the Zoning Map to expand the CBZ Overlay Zones to include recently annexed areas of the City, including the Fiero Lane-Clarion Court and East Airport Areas; and
WHEREAS, upon adoption of the initial cannabis regulations on November 17, 2018, the City Council of the City of San Luis Obispo directed staff to return annually with an update to the City’s Cannabis Business Program, including recommendations for improvements based on operational and administrative experiences; 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 April 9, 2025, and voted to recommend the proposed amendments to Section 17.86.080 (“Cannabis”) of Title 17 (“Zoning Regulations”) of the Municipal Code; and
WHEREAS, the City Council of the City of San Luis Obispo conducted a public hearing in the Council Chamber of City Hall, 990 Palm Street, San Luis Obispo, California

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on May 6, 2025, and voted to introduce an Ordinance to amend Section 17.86.080 (“Cannabis”) of Title 17 (“Zoning Regulations”) of the Municipal Code; and WHEREAS, notices of said public hearing were made at the time and in the manner required by the law; and
WHEREAS, the City Council has duly considered all evidence, including the testimony of interested parties and the evaluation and recommendations provided by staff, presented at said hearing.

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

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

1. The proposed amendments to Municipal Code §§§ 17.86.080(E)(4)(e),

17.86.080(E)(10)(b)(iii), and 17.86.080(E)(12)(c)(vii) are consistent with State Law and are declaratory of existing City code, ensuring clarity and regulatory consistency for both pending and future projects. These amendments are declaratory of existing land use requirements for commercial cannabis activities and are consistent with the legislative intent of the currently adopted Zoning Ordinance. These amendments are intended to reflect the City’s interpretation and application of the buffer requirements since their adoption.

2. In adopting Municipal Code § 17.86.080 (formerly Chapter 17.99) on May 15, 2018, this Council found that the regulations balance the City’s competing interests in allowing certain commercial and research-related cannabis activities desired by the majority of voters, with the public health, welfare, and safety concerns of the City. The proposed amendments to Municipal Code §§§ 17.86.080(E)(4)(e),

17.86.080(E)(10)(b)(iii), and 17.86.080(E)(12)(c)(vii), as declaratory of existing code, accomplish the same.

3. The Council Agenda Report dated May 1, 2018, to establish the City’s Cannabis Regulations, including the adoption of specific buffer requirements, clearly indicates that the City Council intended the buffer from residentially zoned areas to apply within the CBZ Overlay Zones only.

4. The Council Agenda Report dated September 4, 2018, to formally establish the CBZ Overlay Zones states that the three-hundred-foot buffer requirement between residentially zoned land and retail storefronts applies from residential zoning that occurs within a CBZ Overlay Zone. Additionally, the CBZ Overlay Zones were designed to incorporate natural physical barriers—such as railroads and major roads—that inherently serve as buffers from sensitive sites, thereby minimizing potential impacts on public

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health and safety. Applying the 300-foot buffer requirement outside these overlay zones would unnecessarily restrict allowable commercial cannabis sites beyond what is necessary to ensure health and safety, as contemplated by the adoption of the overlay zones.

5. The terms “CAN Overlay” and “CBZ Overlay” have been used interchangeably. The proposed amendment to Municipal Code Section §

17.86.080(E)(5)(b) replaces “CAN Overlay” with “CBZ Overlay” to align with the adopted Zoning Map and Table 1‑ 1 (“Zones Established”) in SLOMC § 17.06.020(D).

6. The proposed amendments to Municipal Code §§ 17.86.080(E)(12)(c)(v)(ix) and 17.86.080(E)(12)(c)(v)(x) are consistent with State Law and the California Department of Cannabis Control (“DCC”) Regulations, specifically with DCC Regulations §§§ 15400, 15403, and 15500, which define regulations for commercial cannabis retail and microbusiness license holders.

7. The proposed amendments to Municipal Code §§ 17.86.080(E)(12)(c)(v)(ix) and 17.86.080(E)(12)(c)(v)(x) are consistent with Municipal Code § 17.86.080(E)(12)(c)(i) which requires microbusinesses authorized to engage in retail sales to comply with the regulations established for retail commercial cannabis activity.

8. The proposed amendment to Municipal Code § 17.86.080(A) does not alter or affect federal law, and it revises the purpose statement to remove the specific CSA classification of cannabis. This change ensures that the regulation remains effective regardless of any future federal scheduling changes.

SECTION 2. Environmental Determination. The recommended actions were reviewed in accordance with the California Environmental Quality Act (CEQA) Guidelines and are determined to be exempt from environmental review pursuant to CEQA Guidelines § 15301(b)(3) (General Rule Exemption), which exempts activities that can be seen with certainty to have no possibility for causing a significant effect on the environment. Project-specific environmental review will be required for any new commercial cannabis activity.

SECTION 3. Action. The City Council hereby adopts an ordinance amending Section 17.86.080 (“Cannabis”) of Title 17 (“Zoning Regulations”) of the Municipal Code to clarify specific land use and operational requirements for commercial cannabis activity.

Section 17.86.080 (“Cannabis”) of Title 17 (“Zoning Regulations”) of the City of San Luis Obispo Municipal Code is hereby amended as follows:

17.86.080 Cannabis.

A. Purpose. The purpose of this section is to protect the public health, safety, and welfare, enact strong and effective regulatory and enforcement controls in compliance

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with state of California law, protect neighborhood character, and minimize potential for negative impacts on people, communities, and the environment within the city of San Luis Obispo by establishing land use requirements and development standards for cannabis activities. Cannabis activity, as defined in Section 17.156.008 (C Definitions), includes the cultivation, possession, manufacturing, processing, storing, laboratory testing, labeling, transporting, distribution, delivery, or sale of cannabis or a cannabis product for either personal or commercial use. Therefore, this section recognizes that cannabis activities require land use controls due to state legal constraints on cannabis activity, and the potential environmental and social impacts associated with cannabis activity. Nothing in this section is intended to affect or alter federal law.

B. Applicability. Nothing in this section shall be construed to allow any conduct or activity relating to the cultivation, distribution, dispensing, sale, or consumption of cannabis that is otherwise illegal under local or state law, statute, rule or regulation. It is neither the intent nor the effect of this chapter to condone or legitimize the illegal use, consumption or cultivation of cannabis under state or local law and nothing herein is intended to interpret, alter, interfere with or in any way affect otherwise applicable federal law.

C. Definitions. See Chapter 17.156, Land Use Definitions (Table 2-1: Uses Allowed by Zone). Terms used in this section that are defined terms under state cannabis statutes or regulations shall have the same meaning as the respective state definition, as now defined or as the definition may be amended by the state in the future, except as otherwise specifically provided in Chapter 17.156, Land Use Definitions (Table 2-1:

Uses Allowed by Zone), or Chapter 9.10, Cannabis Regulations.

D. Personal Cultivation.

1. Indoor Personal Cultivation. Indoor personal cultivation of cannabis does not require a permit and is allowed in all private residences subject to all the following minimum performance standards:
a. All indoor personal cultivation shall occur only inside a private residence or fully enclosed and secure accessory building or structure to a private residence.

Accessory building or structure for indoor personal cultivation of cannabis does not include a greenhouse or hoop structure.
b. Structures and equipment used for indoor cultivation, such as indoor grow lights, shall comply with all applicable building, electrical and fire code regulations as adopted by the city.
c. All accessory buildings and structures used for indoor cultivation shall comply with the city’s zoning regulations and building codes.

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d. Indoor personal cultivation of cannabis may occur inside a dwelling and/or an accessory building or structure, subject to the following restrictions:
i. The cumulative cultivation for cannabis shall not exceed six cannabis plants per private residence.
ii. All personal cultivation shall be conducted by persons twenty-one years of age or older, and the cumulative total of cannabis plants per private residence, indoor and outdoor, shall not exceed six cannabis plants, regardless of the number of persons residing on the property. e. Personal cultivation of cannabis shall not interfere with the primary occupancy of the building or structure, including regular use of kitchen(s) or bathroom(s).
f. Cannabis cultivation must be concealed from public view at all stages of growth and there shall be no exterior evidence of cannabis cultivation occurring at the property visible with normal unaided vision from any public place, or the public right-of-way. Personal cultivation of cannabis shall be shielded to confine light and glare to the interior of the structure.
g. Nothing in this section is intended, nor shall it be construed, to preclude any landlord from limiting or prohibiting personal cultivation of cannabis by tenants. h. Nothing in this section is intended, nor shall it be construed, to authorize commercial cultivation of cannabis at a private residence. i. Personal cultivation of cannabis shall not create: offensive odors or excessive dust, heat, noise, light, glare, smoke, traffic, or hazards due to the use or storage of materials, processes, products or wastes, or other unreasonable impacts to persons of normal sensitivity who are living, working or lawfully present in the vicinity of the personal cultivation. j. Cannabis cultivation areas in a private residence shall be locked at all times when the cultivator is not present.

2. Outdoor Personal Cultivation. Outdoor personal cultivation of cannabis does not require a permit and is allowable at all private residences, subject to all of the following minimum performance standards:
a. Outdoor personal cultivation of cannabis is not permitted in the front yard between the public right-of-way and the private residence. Outdoor personal cultivation is only permitted in a rear or side yard that is entirely enclosed by a solid, opaque fence that is associated with a private residence used for residential purposes.

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b. The cannabis plants shall be placed at a minimum setback of five feet from the edge of canopy to the property line.
c. Cannabis cultivation must be concealed from public view at all stages of growth and there shall be no exterior evidence of cannabis cultivation occurring at the property visible by normal unaided vision from a public place or the public right-of-way. Cultivation may occur within a greenhouse or hoop structure (as long as it complies with the performance standards), but mixed light cultivation is prohibited.
d. All outdoor personal cultivation shall be conducted by persons twenty-one years of age or older.
e. The cumulative total of cannabis plants cultivated outdoor shall not exceed six cannabis plants per parcel containing a private residence, regardless of the number of persons residing on the property, and regardless of the number of private residences on the parcel.
f. Nothing in this section is intended, nor shall it be construed, to preclude any landlord from limiting or prohibiting cannabis cultivation by tenants. g. Nothing in this section is intended, nor shall it be construed, to authorize commercial cultivation of cannabis at a private residence outdoors. h. Outdoor personal cultivation of cannabis shall not create: offensive odors or excessive dust, heat, noise, light, glare, smoke, traffic, or hazards due to the use or storage of materials, processes, products or wastes, or other unreasonable impacts to people of normal sensitivity living, working or lawfully present in the vicinity of the personal cultivation.

E. Commercial Cannabis Businesses.

1. Commercial Cannabis Operator Permit.
a. No person or entity shall operate or conduct a commercial cannabis activity or commercial cannabis business without first obtaining both a commercial cannabis operator permit from the city pursuant to Chapter 9.10, Cannabis Regulations, and a use permit from the city pursuant to this chapter to conduct the commercial cannabis activity at a specific location. Any permit authorizing commercial cannabis activity pursuant to this chapter shall be conditioned upon the holder obtaining and maintaining a city commercial cannabis operator permit and the appropriate state license for the activity.

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b. A commercial cannabis activity pursuant to this chapter may be transferred, assigned, or bequeathed, by operation of law or otherwise as described in Section 9.10.120.
c. The commercial cannabis operator permit must be renewed each year. d. Expiration of the use permit shall be consistent with Section 17.104.070.

2. No Vested Right to Operate. No person shall have any entitlement or vested right to operate a cannabis business solely by virtue of licensing under these regulations. Operation of cannabis activity(ies) requires both the approval of a conditional use permit and a commercial cannabis operator permit under Chapter

9.10, which is a revocable privilege and not a right in the city. The applicant bears the burden of proving that all qualifications for licensure have been satisfied and continuously maintained prior to conducting a cannabis business at an otherwise allowed location within the city.

3. State Application Required. Filing a local application for cannabis activity(ies) with the city does not constitute an application with the state of California. A separate state application and license process must be followed through with the state.

4. Application Requirements. All commercial cannabis activities require qualification through the commercial cannabis operator selection approval process in Chapter 9.10, Cannabis Regulations, a state license and a use permit for a specific location pursuant to this chapter. The application for a use permit shall include the following information:
a. Site plan, floor plans, and a general description of the nature, squarefootage, parking and type of cannabis activity(ies) being requested. b. An operations plan including:
i. A security plan to the approval of the chief of police, pursuant to criteria approved by resolution of the city council, including but not limited to on-site security measures both physical and operational and, if applicable, security measures for the delivery of cannabis associated with the commercial cannabis business and payment of taxes and fees;
ii. Plan for restriction of access by minors;
iii. Employee safety and training plan;
iv. Odor, noise and light management plan;

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v. Estimated energy usage and energy efficiency plan;
vi. Estimated water usage and water efficiency plans;
vii. Waste management plan; and
viii. For retail sales, provide an educational material dissemination plan. c. Proposed signage:
i. Must comply with city’s sign regulations for size, area and type of sign, no exceptions allowed.
ii. Internal illumination of signs is prohibited.
iii. No portion of the cannabis plant may be used in any sign visible from the public right-of-way.
iv. Provide sign size, height, colors, and design of any proposed signage at the site.
v. Must include a sign inside the premises that states: “Smoking, ingesting, vaping, eating or consuming cannabis or cannabis products on this site or in a public place is prohibited.”
vi. Must include a sign at each entrance of a retail storefront that prohibits persons under twenty-one years of age from entering.
d. An analysis that demonstrates neighborhood compatibility and a plan for addressing potential compatibility issues.
e. Applications for retail storefronts shall include a vicinity map showing at least one thousand feet of surrounding area and the distances to the following uses: 1) one thousand feet from any preschool, elementary school, junior high school, high school, public park or playground, whether located within or outside a CBZ Overlay Zone; 2) six hundred feet from any licensed daycare center, whether located within or outside a CBZ Overlay Zone; and 3) three hundred feet from a residentially zoned areas located within a CBZ Overlay Zone. Youth centers do not require a buffer. Distance shall be measured from the nearest point of the property line of the site that contains the commercial cannabis activity to the nearest point of the property line of the enumerated use using a direct straight-line measurement.
f. Proof of ownership, option to purchase, (or lease agreement or option to lease with landowner’s express written consent to the proposed commercial

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cannabis activity(ies) to be conducted on the premises) or other proof of right to apply for the permit at the location.
g. A list of all other uses on the property.

5. Commercial Cannabis Development Standards. Each cannabis business is required to meet the following standards:
a. Qualification through the Chapter 9.10, Cannabis Regulations, commercial cannabis operator selection process to apply for a commercial cannabis operator permit. Submittal of a use permit application to conduct the commercial cannabis business within the zones specified for each type of commercial activity listed below.
b. Commercial cannabis facilities shall be allowed in areas demarcated with CBZ overlay zoning and as allowed in the underlying zone for each type of commercial cannabis activity.
c. All commercial cannabis facilities shall be sited and/or operated in a manner that prevents cannabis odors from being detected off site. Commercial cannabis activities shall not create offensive or excessive odors, dust, heat, noise, light, glare, smoke, traffic, or hazards due to the use or storage of materials, processes, products or wastes, or other unreasonable impacts to people of normal sensitivity living, working or lawfully present in the vicinity of the commercial facility.
d. All commercial cannabis operations must be concealed from public view at all times and there shall be no exterior evidence of cannabis or cannabis products occurring at the property visible with normal unaided vision from any public place, or the public right-of-way. Commercial manufacturing of cannabis or cannabis products shall be shielded to confine light and glare to the interior of the structure.
e. All commercial cannabis facilities shall include adequate measures that address enforcement priorities for commercial cannabis activities, including restricting access to the public and to minors and ensuring that cannabis and cannabis products are only obtained from and supplied to other permitted licensed sources within the state and not distributed out of state. f. The use permit to be issued under this chapter shall include, but is not limited to, the following conditions:
i. The obtaining and maintaining of the commercial cannabis operator permit and appropriate state license.

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ii. Payment of all applicable current and future state and local taxes and all applicable commercial cannabis fees and related penalties established by the city council, including but not limited to application, administrative review, inspection, etc.
iii. The commercial cannabis operator permit or a controlling interest in the permit may not be assigned, transferred or bequeathed, by operation of law or otherwise, unless permitted as described in Chapter 9.10, and the permit shall terminate automatically on such event.
iv. Any commercial cannabis operator permit issued pursuant to this chapter and Chapter 9.10 expires after one year, unless renewed. v. Prohibition of on-site consumption of cannabis at: (A) a commercial cannabis business or commercial cannabis activity location; (B) any other business, club or cooperative or event, regardless if open to the public or only to members; and (C) anywhere an entry or other fee is charged to attendees or the host or thing of value or consideration is received or exchanged.
vi. Prohibition of the possession, storage, sale, distribution or consumption of alcoholic beverages on the premises, or the holding of license from the State Division of Alcoholic Beverage Control for the sale of alcoholic beverages, or operating a business that sells alcoholic beverages on or adjacent to the commercial cannabis activity site.
vii. No cannabis products or cannabis accessories may be displayed in windows or visible from the public right-of-way or from places accessible to the general public.
viii. Prohibition of minors and persons under the age of twenty-one on the premises, even if accompanied by a parent or guardian, unless the person is at least eighteen years of age and is also in possession of a valid physician’s recommendation for medical cannabis.
ix. Outdoor storage of cannabis or cannabis products is prohibited.

6. Commercial Cultivation.
a. Commercial Cannabis Cultivation. Commercial cannabis cultivation may be conditionally permitted indoors only, subject to the requirements of this section and the obtaining and maintaining of a commercial cannabis operator permit pursuant to Chapter 9.10, Cannabis Regulations, and appropriate state license, in the following zones:

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i. Service commercial (C-S);
ii. Manufacturing (M);
iii. Business park (BP).
b. A maximum of seventy thousand square feet of cumulative canopy area (includes total canopy of either horizontal or vertical growing situations) for cultivation and nurseries shall be allowed for indoor commercial cannabis cultivation in the city within the zones identified above, including microbusinesses under subsection (E)(12) of this section. c. Outdoor commercial cannabis cultivation, including but not limited to cultivation in greenhouses, hoop structures, and by mixed light (part daylight/part artificial light), is prohibited. All commercial cannabis cultivation shall be conducted only inside a fully enclosed, legally permitted structure that meets all applicable building and other codes.
d. Commercial cannabis cultivation conditional permits include the following:
i. Specialty Cultivator. A maximum of no more than five thousand square feet of canopy of indoor cultivation (either in horizontal or vertical growing situations) and includes processing.
ii. Small Cultivator. A maximum of no more than ten thousand square feet of canopy of indoor cultivation (either in horizontal or vertical growing situations) and includes processing.
iii. Nursery, Cannabis. A maximum of no more than ten thousand square feet of indoor propagation area (either in horizontal or vertical growing situations).
e. Development Standards.
i. Compliance with subsection (E)(5) of this section, Commercial Cannabis Development Standards.
ii. Canopy areas shall be easily identifiable for inspection and measurement. Each unique area included in the total canopy calculation shall be separated by an identifiable boundary such as an interior wall or by at least ten feet of open space (see “Canopy” definition in Chapter 17.156). iii. All indoor cannabis cultivation shall be designed to accomplish zero net energy use from the start of the operation.

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iv. Pesticides and fertilizers shall be properly labeled, stored, and applied to avoid and prevent contamination through erosion, leakage, or inadvertent damage from rodents, pests, or wildlife.

7. Manufacturing.
a. Manufacturing (Nonvolatile) Permissible. Nonvolatile cannabis or cannabis products manufacturing may be conditionally permitted indoors only, subject to the requirements of this section and the obtaining and maintaining of a commercial cannabis operator permit pursuant to Chapter 9.10, Cannabis Regulations, and appropriate state license, in the following zones:
i. Service commercial (C-S);
ii. Manufacturing (M);
iii. Business park (BP).
b. Manufacturing (Volatile) Prohibited. Cannabis or cannabis products manufacturing involving volatile solvents, processes, compounds or substances is prohibited.
c. Development Standards.
i. Compliance with subsection (E)(5) of this section, Commercial Cannabis Development Standards.
ii. Outdoor manufacturing of cannabis or cannabis products is prohibited. iii. A complete description of all products used in the manufacturing process including the cannabis supply chain, liquids, solvents, agents, and processes.
iv. Storage protocol and hazard response plan.
v. Employee safety and training equipment plan, plus materials safety data sheet requirements, if any.

8. Distribution.
a. Commercial cannabis distribution may be conditionally permitted, subject to the requirements of this section and the obtaining and maintaining of a commercial cannabis operator permit pursuant to Chapter 9.10, Cannabis Regulations, and appropriate state license, in the following zones:
i. Service commercial (C-S);

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ii. Manufacturing (M);
iii. Business park (BP);
b. Development Standards.
i. Compliance with subsection (E)(5) of this section, Commercial Cannabis Development Standards.

9. Testing Laboratory.
a. Commercial cannabis testing may be conditionally permitted, subject to the requirements of this section and the obtaining and maintaining of a commercial cannabis operator permit pursuant to Chapter 9.10, Cannabis Regulations, and appropriate state license, in the following zones:
i. Service commercial (C-S);
ii. Manufacturing (M);
iii. Business park (BP);
iv. Office (O).
b. Development Standards.
i. Compliance with subsection (E)(5) of this section, Commercial Cannabis Development Standards.
ii. The cannabis testing laboratory, as proposed, will comply with all the requirements of the state for the testing of cannabis, including dual licensure and participation in an authorized track-and-trace program. iii. The owners, investors, permittees, operators, and employees of the cannabis testing laboratory will not be associated with, nor have any financial interest in, any other form of commercial cannabis activity. iv. The cannabis testing laboratory is accredited by an appropriate accrediting agency as approved by the state and further described in Health and Safety Code Section 5238 and as it may be amended.
v. The cannabis testing laboratory operating plan demonstrates proper protocols and procedures for statistically valid sampling methods and accurate certification of cannabis and cannabis products for potency, purity, pesticide residual levels, mold, and other contaminants according to adopted industry standards.

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10. Retail—Storefront.
a. Commercial cannabis storefront retail may be conditionally permitted, subject to the requirements of this section and the obtaining and maintaining of a commercial cannabis operator permit, and the appropriate state license, in the following zones:
i. Retail commercial (C-R);
ii. Service commercial (C-S).
b. Development Standards.
i. Compliance with subsection (E)(5) of this section, Commercial Cannabis Development Standards.
ii. Only three retail storefronts, which must front arterial streets, will be allowed within the city. Selection of the retail commercial cannabis operator will be selected from qualified commercial cannabis operators as set forth in Chapter 9.10, Cannabis Regulations. One of the retail storefronts shall have a medicinal license and may also have an adult use license. iii. Retail storefronts shall be located at least: 1) one thousand feet from any preschool, elementary school, junior high school, high school, public park or playground, whether located within or outside a CBZ Overlay Zone; 2) six hundred feet from any licensed day care center, whether located within or outside a CBZ Overlay Zone; and 3) three hundred feet from any residentially zoned area located within a CBZ Overlay Zone. Youth centers do not require a buffer. Distance shall be measured from the nearest point of the property line to the nearest point of the property line of the enumerated use using a direct straight-line measurement. A subsequently established use described herein shall not affect the continuation of a retail storefront in possession of a Use Permit issued under the standards of this Section and Chapter 9.10. iv. Retail storefronts must be separated from each other by at least one thousand feet.
v. Hours of operation shall be limited between seven a.m. and nine p.m. vi. Retail storefronts that possess a valid state of California cannabis retailer license with an A-designation must include a sign at each entrance of a retail storefront that prohibits persons under twenty-one years of age from entering. Retail storefronts that possess a valid state of California cannabis retailer license with an M-designation or both an A-designation and an M-designation must include a sign at each entrance of the retail

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storefront that prohibits persons under twenty-one years of age from entering unless the person is at least eighteen years of age and is also in possession of a valid physician’s recommendation for medical cannabis.

11. Retail—Non-Storefront (Delivery Services).
a. Commercial cannabis non-storefront retail may be conditionally permitted, subject to the requirements of this section and the obtaining and maintaining of a commercial cannabis operator permit pursuant to Chapter 9.10, Cannabis Regulations, and the appropriate state license, in the following zones:
i. Service commercial (C-S);
ii. Manufacturing (M);
iii. Business park (BP).
b. Development Standards.
i. Compliance with subsection (E)(5) of this section, Commercial Cannabis Development Standards.
ii. Hours of delivery shall be limited between six a.m. to ten p.m.

12. Microbusiness.
a. Microbusinesses fall into two groups as described below and may be conditionally permitted, subject to the requirements of this section and the obtaining and maintaining of a commercial cannabis operator permit pursuant to Chapter 9.10, Cannabis Regulations, and the appropriate state license, in the following zones:
i. Microbusinesses with no more than fifty percent of the gross receipts being from cultivation, distribution and manufacturing are allowed in the following zones:
(a) Retail commercial (C-R).
ii. Microbusinesses with no more than fifty percent of the gross receipts being from storefront retail sales are allowed in the following zones:
(a) Manufacturing (M);
(b) Business park (BP).

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iii. Microbusinesses located in the service commercial (C-S) zone are not limited by gross sales receipts from cultivation, distribution, manufacturing or retail sales.
b. Microbusinesses are subject to the seventy thousand square feet of canopy cultivation citywide limitation (either in horizontal or vertical growing situations) and the limit of three retail storefronts fronting arterial streets citywide set forth in subsection (E)(10) of this section.
c. Development Standards.
i. Compliance with subsection (E)(5) of this section, Commercial Cannabis Development Standards.
ii. A maximum of seventy thousand square feet of cumulative canopy for cultivation and nurseries shall be allowed for indoor cultivation in the city within the allowed land use zones.
iii. All indoor cannabis cultivation shall be designed to accomplish zero net energy use from the start of the operation.
iv. Pesticides and fertilizers shall be properly labeled, stored, and applied to avoid and prevent contamination through erosion, leakage, or inadvertent damage from rodents, pests, or wildlife.
v. Only three retail storefronts, which must front arterial streets, will be allowed within the city. Selection of the retail commercial cannabis operator will be selected from qualified commercial cannabis operators as set forth in Chapter 9.10, Cannabis Regulations. One of the retail storefronts shall have a medicinal license and may also have an adult use license. vi. Any microbusiness with a retail storefront shall require a planning commission use permit.
vii. Retail storefronts shall be located at least: 1) one thousand feet from any preschool, elementary school, junior high school, high school, public park or playground, whether located within or outside a CBZ Overlay Zone; 2) six hundred feet from any licensed day care center, whether located within or outside a CBZ Overlay Zone; and 3) three hundred feet from any residentially zoned area located within a CBZ Overlay Zone. Youth centers do not require a buffer. Distance shall be measured from the nearest point of the property line to the nearest point of the property line of the enumerated use using a direct straight-line measurement. A subsequently established use described herein shall not affect the continuation of a retail storefront in possession of a Use Permit issued under the standards of this Section and Chapter 9.10.

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viii. Retail storefronts must be separated from each other by at least one thousand feet.
ix. Hours of retail shall be limited to between seven a.m. to nine p.m. and delivery shall be limited to between six a.m. to ten p.m. x. Retail storefronts that possess a valid state of California cannabis retailer license with an A-designation must include a sign at each entrance of a retail storefront that prohibits persons under twenty-one years of age from entering.

Retail storefronts that possess a valid state of California cannabis retailer license with an M-designation or both an A-designation and an M-designation must include a sign at each entrance of the retail storefront that prohibits persons under twenty-one years of age from entering unless the person is at least eighteen years of age and is also in possession of a valid physician’s recommendation for medical cannabis.

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

O- ____
SECTION 5. A summary of this ordinance, together with the names of Council members voting for and against, shall be published at least five (5) days prior to its final passage, in The New Times, a newspaper published and circulated in this City. This ordinance shall go into effect at the expiration of thirty (30) days after its final passage.

INTRODUCED on the 6th day of May 2025, AND FINALLY ADOPTED by the Council of the City of San Luis Obispo on the 3rd day of June, 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

City of San Luis Obispo, Council Memorandum
City of San Luis Obispo
Council Agenda Correspondence
DATE: June 2, 2025
TO: Mayor and Council
FROM: Greg Hermann, Deputy City Manager
PREPARED BY: Matt Pennon, Diversity, Equity, and Inclusion Manager Samantha Vethavanam, DEI Admin Specialist
VIA: Whitney McDonald, City Manager
SUBJECT: ITEM 5d – CONSIDERATION OF THE 2025-26 HUMAN SERVICES

GRANT FUNDING RECOMMENDATIONS
Staff received the following questions regarding the Human Relations Commission’s funding recommendations for the Fiscal Year 2025-26 Human Services Grant. The questions are listed below in bold with staff response shown in italics:
1) How did the Commission’s final recommendations vary from the subcommittee’s initial recommendations, if at all?
The Commission’s final recommendations altered the subcommittee's initial recommendations in the following ways:
 Deducted $5,000 from the original funding recommendation to the Housing Authority of San Luis Obispo (HASLO) from $20,000 to $15,000.  Provided $5,000 to Meals that Connect. The subcommittee’s initial funding recommendation was $0.
 Deducted $5,000 from the original funding recommendation to the Mixteco Indigena Community Organizing Project from $20,000 to $15,000.  Deducted $10,000 from the original funding recommendation to People’s Self-Help Housing from $20,000 to $10,000.
 Provided $15,000 to CASA of San Luis Obispo County. The subcommittee’s initial funding recommendation was $0.

ITEM 5d – CONSIDERATION OF THE 2025-26 HUMAN SERVICES GRANT FUNDING RECOMMENDATIONS Page 2
2) What performance metrics from previous funding cycles were evaluated in determining current funding recommendations? (For instance, was performance in previous grant cycles and an agency’s ability to meet previous grant objectives/requirements in the past, used to determine whether or not they should be funded in the future?)
As a requirement for grant funding eligibility, applicants that have received previous Human Services Grant funding must be in good standing and have complied with all reporting requirements. The full Human Relations Commission also reviews all reports for each grant cycle, including the mid-year reports and the year-end reports to ensure compliance and targeted goals are being met.

During the subcommittee review process, consideration of previous reporting and grantee performance was a factor in deciding initial funding recommendations. 3) Some of the agencies recommended for funding serve people throughout SLO County, rather than specifically, people within or from SLO City. How was the impact on SLO City (vs. County, or a wider area) evaluated and were programs with bigger impact in SLO City prioritized for funding? Part of the Human Services Grant applicant criteria states that “grants are primarily made to organizations serving residents in the City of San Luis Obispo” and that “agencies serving residents in neighboring communities, also serving a significant number of City residents will be considered.” While much of the services provided by the grant applicants are for the residents of the City of San Luis Obispo, because of the nature of homelessness services, these programs may open to the County as a whole. However, the impact to City residents was a factor during the Commissions funding deliberations with a priority placed on programs that primarily serve City residents.

ITEM 5d – CONSIDERATION OF THE 2025-26 HUMAN SERVICES GRANT FUNDING RECOMMENDATIONS Page 3
4) It appears that some proposals that directly focus on homelessness prevention were not funded, while others with less of a focus on this topline priority were funded. Can you please provide a little more explanation and context on how those decisions came about?
The main funding priority was communicated to applicants during the grant application process and to subcommittee and full Commission members during the application review and recommendation process.

During deliberations, Commissioners defined homelessness prevention to include both direct homelessness prevention services as well as services that might have an indirect, but long-term impact on preventing homelessness.

The Chair of the Human Relations Commission will be available at the City Council meeting to answer additional questions the Council may have about the Commission deliberation process.
5) Were projects/programs that prioritized using HSG funds for direct service provision prioritized over those that included a larger proportion of funds for operational or overhead costs?
Funding criteria for the Human Services Grant includes that “applications for a specific program, project, equipment need, or general operational support will be considered if the organization’s mission falls under the main funding priority.” Additional funding information also states that “consideration may be provided to applicants who direct services efficiently to needy residents with low overhead and administrative costs.”
The above criterion was considered during funding deliberations.

Item 5d
Department: Administration
Cost Center: 1010
For Agenda of: 6/3/2025
Placement: Consent
Estimated Time: N/A
FROM: Greg Hermann, Deputy City Manager
Prepared By: Samantha Vethavanam, DEI Admin Specialist
SUBJECT: CONSIDERATION OF THE 2025-26 HUMAN SERVICES GRANT

FUNDING RECOMMENDATIONS

RECOMMENDATION

1. As recommended by the Human Relations Commission, approve the 2025-26 Human Services Grant funding allocations in the amount of $150,000; and

2. Authorize the City Manager to execute agreements with each grant recipient.

POLICY CONTEXT
The purpose of the Human Relations Commission (HRC) is to advise and make recommendations to City Council and the City Manager which promote and advance inclusion, mutual understanding, respect, and equitable treatment to all San Luis Obispo community members. Recommendations made by the HRC to City Council help address social concerns and the needs of the community, including recommendations for funding for the Human Services Grant (HSG) program. The HSG provides financial support to non-profit organizations that promote the economic and social well-being of the residents of San Luis Obispo.

DISCUSSION
Background
The City’s Human Services Grants (HSG) was originally discussed and approved by City Council on November 14, 1973, through a study session providing authority and responsibility to the HRC for funding and contract recommendations for Council consideration. The HSG program is fully funded by the City’s General Fund. The program had a Council approved change of name from Grants-in-Aid to the Human Services Grant in 2022 to better reflect the objectives of the program. The HSG program provides financial support to non-profit organizations that promote the economic and social wellbeing of the community members of San Luis Obispo. Grants are made to local organizations or agencies whose services contribute to the quality of life of City residents.

The HRC advises the City Council on funding priorities and grant recommendations.

Item 5d
Funding Priorities
On December 10, 2024, the Council reaffirmed the following as the main funding priority for the HSG:
 Homelessness prevention, including affordable, alternative, and transitional housing, and supportive services.

Council also designated secondary funding priorities to allow maximum flexibility for funding recommendations dependent upon the received applications. These priorities are not listed in order of importance and may receive funding if available:
 Hunger and malnutrition prevention.
 Supportive physical and mental health services for those in need.  Services for seniors, veterans and/or people with disabilities in need.  Supportive, developmental, and care services for children and youth in need.  Services encouraging diversity, equity, and inclusivity in marginalized communities, including access to language services.

The Office of Diversity, Equity, & and Inclusion (DEI) website and other messaging regarding the 2025-26 HSG program noted that the HRC will first fund all qualified applications that meet the main funding priority. After qualified main priority applications are funded, the HRC will consider applications for the secondary funding priorities.

HSG Application Process
On January 20, 2025, the HRC formally launched its annual HSG process by advertising the availability of grant funds and information regarding the upcoming HSG timeline to the general public, past applicants, and agencies and groups from underserved and underrepresented communities through the Office of DEI. HSG applications were due on February 28, 2025. The City received grant applications from 27 agencies requesting funding for programs totaling $419,942. Attachment A includes a complete list of the applicants, including a summary of each project submitted to the City for HSG funding and the HRC’s recommended funding amounts. All applications received can be found on this webpage.

HRC Review Process
On March 17 and 19, 2025, the HSG Grant Review Subcommittee comprised of Vice Chair Campos, Commissioner Smith, and Commissioner Ambrosio met to review grant applications and make preliminary funding recommendations. The subcommittee members considered the main funding priority set by Council, the location of the target population to be served, the number of people to be served relative to the overall request, the agencies’ track record, and the incurred expenses proposed to be offset by HSG dollars to guide their funding recommendations. On May 7, 2025, the HSG Grant Review Subcommittee presented their preliminary funding recommendations to the full HRC during a noticed public hearing. The public hearing was noticed via the New Times San Luis Obispo newspaper and via email through the City’s e-notifications system. During the discussion, the subcommittee engaged with other Commissioners to adjust the preliminary recommendations and voted to approve the adjusted funding

Item 5d
recommendations. HRC found that the projects recommended for funding further Council’s adopted goals to address community needs and promote the economic social well-being of San Luis Obispo community members.

Grant Contracts
Upon Council approval of the HSG funding recommendations, the City will enter into a contract with each organization that has been awarded grant funding. Organizations awarded grant funding will be required to provide a mid-year and year-end report describing administrative functions, metrics and outcomes, and use of funds related to the application for each grant program. Reports are reviewed by City staff and the HRC for completeness and compliance.

Public Engagement
The public, and more specifically non-profit service organizations, were engaged throughout the HSG award process. Non-profit service organizations received communication of available funding, a packet of information provided in English and Spanish was available on the Office of DEI website, and office hours and other support was offered during the application period. Grant applicants were also informed via email about the May 7, 2025 HRC public hearing one month in advance, two weeks in advance, and one week in advance. This item is on the consent agenda for the June 3, 2025, City Council meeting and will follow all required posting and notification. The public can submit comments on this item at or before the meeting.

ENVIRONMENTAL REVIEW
The California Environmental Quality Act does not apply to the recommended action in this report, because the action does not constitute a “Project” under CEQA Guidelines Sec. 15378, as the grant funding disbursements will not result in either a direct physical change in the environment or a reasonably foreseeable indirect physical change in the environment. Specific projects funded by the grants may be subject to environmental review or exemption therefrom.

FISCAL IMPACT
Budget: Yes Budget Year: 2025-26
Funding Identified: Yes
Fiscal Analysis:

Funding
Sources
Total Budget
Available
Current
Funding Request
Remaining
Balance
Annual
Ongoing Cost
General Fund $150,000 $150,000 $0 $
State
Federal
Fees
Other
Total $150,000 $150,000 $0 $

Item 5d
The draft 2025-26 budget presented Council on April 15, 2025 included $150,000 for the HSG programand no changes will be recommended with the final budget. HSG projects will be implemented for a period of one year starting at the beginning of the 2025-26 Fiscal Year.

ALTERNATIVES

1. The Council could decide to revise and adopt different funding recommendations. If Council decides to revise and adopt different funding recommendations, Council will need to pull the item from consent, deliberate, and vote on new final funding recommendations during the Council meeting.

2. The Council could decide to request that the HRC reconsider and recommend different funding allocations. If Council decides not to approve the recommendations and to request that the HRC consider different recommendations, the HRC would need to hold a special meeting to reconvene and modify their original recommendations. Council should also provide direction on the modifications desired if they decide to go with this option. This may delay prospective grant recipients’ implementation of projects recommended for funding in the FY25-26 grant cycle.

ATTACHMENTS
A – 2025-26 HRC Human Services Grant Preliminary Funding Recommendations B – May 7, 2025 HRC Meeting Minutes

# Organization Project/Program
Name Description of Project/Program RequestedAmount
Recommended
Amount
1 5 Cities Homeless
Coalition
Homeless Prevention
Assistance
This program will provide homelessness prevention
housing stabilization services using time-limited financial assistance to help people remain in housing or be rehoused. It will also provide targeted supportive services to identify and address barriers to stable housing. Funds will be used for rental assistance, staff, and stabilization fees.
$20,000 $0
2 Big Brothers & Big
Sisters of SLO
County
SLO Bigs Community
Mentorship Program
This program will match youth ages 7 to 17, who face
academic struggles or social difficulties, with adult
volunteers who share common interests. Bigs commit to
spending 6-8 hours per month with their Little, engaging in activities that build relationships and foster growth.

Funds will be used to support matches including
recruitment and community engagement, enrollment,
introductions, support, and operating costs.
$20,000 $0
3 Community Action
Partnership of
SLO County
(CAPSLO)
Homeless
Prevention/Stable
Housing Program
This program will provide emergency financial assistance to City of SLO households that are at risk of being
evicted and need assistance with a rental payment, or
who need financial assistance to secure housing. The
program will also provide case management for 6
months. Funds will be used for financial assistance
payments and some indirect expenses.
$20,000 $20,000
4 City Farm
Expansion of
Therapeutic
Horticulture
Programming for
Students with
Disabilities
This project will expand City Farms' existing Therapeutic Horticulture Program to provide over 850 hours of
instruction to more than 50 children and adults with
disabilities in SLO County. Adults will have access to onfarm programming and will allow for additional weekly sessions. Funds will be used to support two farm
instructors.
$15,000 $0

5 Community
Counseling Center
(CCC)
Inner Abode:

Addressing the Mental
Health Counseling
Needs of the
Unhoused in San Luis
Obispo
This project will increase and enhance CCC's presence
at 40 Prado Homeless Shelter by increasing hours of
service and access to bilingual/bicultural therapists, as well as providing clinical training for CAPSLO and CCC
staff working with the unhoused population. This includes motivational interviewing, trauma informed care, etc.

Funding will also subsidize CCC's ongoing, no cost in
person counseling for the unhoused, support for
unhoused students, and unhoused families. Funds will
be used to support a bilingual clinical supervisor and a bilingual homeless services mental health clinical
counselor.
$7,500 $0
6 Family Care
Network, Inc.

TAY Estelita Housing
Project
This project will provide improvements for safe and
stable housing for former foster youth ages 18-24. The
project needs additional improvements to meet the
youth's needs, such as improving the existing
picnic/outdoor area, adding a retaining wall, and
improving the front walkway. Funds will be used for
property frontage improvements, expanding the picnic
area and adding a bike rack, landscaping, and removing
storage units.
$20,000 $0
7 Housing Authority
of SLO (HASLO)
Housing Stability with
Supportive Services
This program will provide transitional housing support to individuals transitioning out of homelessness and to
prevent homelessness. It will provide funding for
essential items and other costs and provide tools to
maintain housing, including case management. This
program will also provide hunger and malnutrition
assistance to low-income individuals facing food
insecurity. It will also provide transportation assistance to residents who are medically vulnerable. Funds will be
used for transitional housing, food, and transportation. $20,000 $15,000
8 Hospice of SLO
County Caregiver Support
This program will provide a variety of services for home caregivers. This can include providing a temporary
break, emotional support and companionship,
housekeeping assistance, meal preparation, or resource
connection. Volunteers will provide these services up to 4 hours per week. Funds will be used to offset the cost of the Volunteer Services Manager's salary.
$10,000 $0

9 Independent
Living Resource
Center
Community Living and
Transition Services for
People with
Disabilities
This program will provide comprehensive community
living support services to individuals of all ages and
income levels with disabilities, ensuring they have the resources and skills to live independently. This program will offer housing assistance, assistive technology
access, benefits advisement, and personal assistance
coordination, among others. Funds will be used to
partially cover occupancy expenses, allowing redirection of additional resources to staff salaries and to reduce administrative burden.
$20,000 $0
10 Kesem Cal Poly
SLO
Camp Kesem at Cal
Poly
This program will be an overnight summer camp that is
led by a team of volunteer college students for children ages 6-18 who are impacted by a parent or primary
caregiver’s cancer. The camp will be one weeklong and
host 45 campers in July.
$5,000 $0
11 Literacy for Life Literacy Program
This program will teach non or low-literate adults to read, write, and speak English. The program assesses each
learner’s literacy level and guides them to meet their
individual learning goals. Funds will be used in all
aspects of the program including for data management,
books, wages, and rent.
$10,000 $0
12 Long Term Care
Ombudsman
Services of SLO
County
Ombudsman Services
This program will provide advocacy, facility monitoring, complaint investigation and resolution, information and assistance, advanced healthcare directive witnessing for skilled nursing facilities (SNFs), community education, and systemic advocacy to residents of SNFs and
residential care facilities throughout SLO City and
County. The program is also committed to homelessness
prevention. Funds will be used to partially cover salaries for staff.
$5,000 $5,000

13 Lumina Alliance
Emergency Shelter
Program for Sexual
Assault and Intimate
Partner Violence
This program provides emergency shelter at two sites in SLO County. The shelters are for survivors of sexual
assault and intimate partner violence. The shelters help residents find permanent housing and provides services
such as a 24-hour crisis hotline, individual and group
therapy sessions, assistance filing temporary restraining orders, case management, skills training, childcare,
financial assistance, and more. Funds will be used for
operating expenses including payroll, benefits, facility expenses, and repair and maintenance expenses,
among others.
$20,000 $20,000
14 Meals that
Connect
Nutrition for Healthy
Seniors
This program will provide nutrition, social interaction, and early intervention for seniors in SLO County. The
program delivers daily meals, offering wellness check-ins and fostering social connection Funds will be used for
food costs, kitchen staff labor, supplies, transportation costs, rent, and insurance.
$15,000 $5,000
15 Middle House
Early Recovery
Assistance to Alumni
Housing Portal
This program will provide 6 week stays at a Sober Living Facility and provide direct financial assistance after
completing one year in the program. The funding will
help these individuals secure stable housing. The
programs also help individuals in recovery obtain
employment and create a portal for addicts experiencing homelessness to become contributing members of
society. Funds will be used to support individuals in
recovery and to provide financial assistance after one
year.
$20,000 $0
16 Mixteco Indigena
Community
Organizing Project
(MICOP)
Housing/Wellness
Navigator Program
This program will provide direct housing support, eviction prevention, and rental assistance for Indigenous migrant families facing housing insecurity. Housing Navigators
will also assist families in accessing critical wraparound services such as Medi-Cal, SSDI, CalFresh, and utility
relief. The Housing Navigators will also assist families in securing and maintaining housing and educate tenants
on their rights. Funds will be used to support 1 FTE
Admin Assistant.
$20,000 $15,000

17 People's Self-Help
Housing (PSHH)
City of SLO Supportive
Housing Program
This program will provide comprehensive homelessness
prevention services to residents in all PSHH properties within SLO, which includes 73 units with an expansion to 217 units with the complete of Tiburon Place and Calle
Joaquin. Licensed social workers will deliver clinical case management and address housing stability needs.

Funds will be used to deliver homelessness prevention
services, including through salaries, mileage, workshops, meals, etc.
$20,000 $10,000
18 Restorative
Partners Opportunity to Fund
This program will support formerly incarcerated
individuals facing multiple challenges, including
homelessness, substance use recovery, and mental
health issues. Stable housing is prioritized, and the
program removes barriers to housing such as obtaining
documentation, providing rental assistance, and
supporting employment related needs. Funds will be
used to support the emergency needs of the individuals. $10,000 $10,000
19 Shower the People Shower the People
This program will provide mobile shower services to
unhoused individuals 5 days a week, 3-4 hours per day
in four different locations. Guests are offered a 15-minute hot shower which is cleaned and disinfected by
volunteers before the next guest. Shower guests also
receive a new t-shirt, new undergarments, new socks, a
toothbrush/toothpaste, comb, razor, and hand sanitizer.

Funds will go to support the programs continued
operation for one year.
$20,000 $20,000
20 SLO CASA General SLO CASA
Program Support
This project will allow volunteers from the community to complete a training, so they are able to work with
children and families in crisis. Volunteers provide support for children throughout the life of their child welfare case.

Funds will go to support part of the cost of rent for their SLO office complex, which is a hub for staff and
volunteers to convene.
$20,000 $15,000

21 SLO Child
Development
Resource Center
Child and Family Play
Therapy
This program will offer tailored, evidence-based
interventions to support children and families facing
poverty, trauma, and other adversities. The program
integrates mental health services with early education.

Funds will be used to expand services to serve 25
additional therapy clients by subsidizing therapy
sessions provided by an associate therapist and
providing 8 hours of training.
$10,000 $0
22 SLO Legal
Assistance
Foundation
Senior Homeless
Prevention
The program will provide homelessness prevention for
SLO City seniors through eviction prevention, eviction
defense, and assistance to residents in SNFs and
residential care facilities. Funds will be used for salaries, insurance, operating expenses, program supplies, and
admin overhead.
$20,000 $10,000
23 SLO Noor
Foundation
City of San Luis
Obispo Care Project
This program will include a free mobile clinic and
established brick and mortar locations which provide free medical, dental, vision, and mental health care to lowincome, uninsured, and underinsured SLO City residents. Funds will go to support clinical support
staffing, laboratory diagnostics, and clinical supplies. $20,000 $0
24 Smart Share
Housing Solutions
Senior Homeless
Prevention & Housing
Navigation
This program will work through multiple approaches:
providing inspiration, training, and one-on-one technical assistance to help residents meet current and future
housing needs through four areas - continued
HomeSharing training and TA; accessory dwelling unit
(ADU) production support; mentoring; and incorporating
Americans with Disabilities Act (ADA) enhancements.

Funds will go to support community events, virtual eblasts, ADU and home visits, trainings, research, advertising, technical support, and ADA planning.
$14,380 $0
25 Tolosa Children's
Dental
Tolosa Children's
Dental Center SLO
Office Expansion
This project will seek to expand care through four
initiatives: community outreach; targeted community
partnerships; additional dentists and support staff; and expanded operations from one day to four days a week
in the SLO Office. Tolosa provides oral healthcare to
underserved and underinsured children. Funds will
support costs to hire a dentist and support staff.
$20,000 $0

26 Transitions Mental
Health Association
Transportation
Solutions for
Transitional Housing
This project supports a 6-bedroom house with 12 clients who are chronically homeless or at risk of homelessness.

The project will provide transportation options for the residents to medical, behavioral health, employment, and social appointments through the acquisition of 4 bicycles for each house and monthly regional bus passes. Funds
will go to client expenses, insurance, and admin.
$13,062 $0
27 United Way of SLO
County
211 Homeless Intake
and Homeless
Prevention Screening
Services
This program will provide a dedicated homeless intake
and assessment initiative within the existing 211
program. This initiative will provide immediate support to individuals facing homelessness and housing insecurity
by connecting them with local resources. The line is
available 24/7. Funds will go to creating the new line. $5,000 $5,000
TOTAL $419,942 $150,000

1 Human Relations Commission Minutes
May 7, 2025, 5:00 p.m.

Council Hearing Room, 990 Palm Street, San Luis Obispo
Human Relations
Commissioners Present:

Commissioner Mason Ambrosio (arrived at 5:09pm),
Commissioner Vincent DeTurris, Commissioner Esmeralda
Parker, Commissioner Sierra Smith, Chair Angie Kasprzak Human Relations
Commissioners Absent:

Commissioner Stephanie Carlotti, Vice Chair Catuih Campos City Staff Present: Deputy City Manager Greg Hermann, DEI Administrative Specialist Samantha Vethavanam
_____________________________________________________________________

1. CALL TO ORDER
A Regular Meeting of the San Luis Obispo Human Relations Commission was called to order on May 7, 2025 at 5:06 p.m. in the Council Hearing Room at City Hall, 990 Palm Street, San Luis Obispo, by Chair Kasprzak.

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

None
--End of Public Comment--

3. CONSENT

3.a CONSIDERATION OF MINUTES - APRIL 2, 2025 HUMAN RELATIONS

COMMISSION MINUTES
Motion By Commissioner Smith
Second By Commissioner Parker
To approve the Human Relations Commission Minutes of April 2, 2025.

Ayes (4): Commissioner DeTurris, Commissioner Parker, Commissioner Smith, and Chair Kasprzak
Absent (3): Commissioner Ambrosio, Commissioner Carlotti, and Vice Chair Campos

2 CARRIED (4 to 0)
Commissioner Ambrosio joined the meeting at 5:09pm.

4. BUSINESS ITEMS

4.a HOMELESSNESS RESPONSE AND STRATEGIC PLAN OVERVIEW

AND UPDATE
Homelessness Response Manager Daisy Wiberg presented the staff report and responded to Commission inquiries.

Chair Kasprzak opened Public Comment
Public Comment:

None
--End of Public Comment--

5. PUBLIC HEARINGS

5.a REVIEW 2025-26 HUMAN SERVICES GRANT SUBCOMMITTEE

RECOMMENDATIONS AND PROVIDE A RECOMMENDATION TO

COUNCIL FOR APPROVAL
DEI Admin Specialist Samantha Vethavanam presented the staff report and responded to Commission inquiries.

Chair Kasprzak opened Public Comment
Public Comment:

Jerry Mihaic
Jack Lahey
Sister Theresa Harpin
Brandee Puitt
Dianna Vojaw
Marina Bernheimer
Gary Petersen
Ana Huynh
Jason Main
Devon McQuade
Jane Connely
Greta Burk
Jessica Yacoub
Elaina Smolen
Laura Edwards
--End of Public Comment--

3 Motion By Commissioner Parker
Second By Commissioner DeTurris
To provide the following funding recommendations to City Council for the 2025-26 Human Services Grants:

1. Community Action Partnership of San Luis Obispo County (CAPSLO) – Homeless Prevention/Stable Housing Program: $20,000

2. Housing Authority of the City of San Luis Obispo (HASLO) – Housing Stability with Supportive Services: $15,000

3. Long Term Care Ombudsman Services of SLO County –
Ombudsman Services: $5,000

4. Lumina Alliance – Emergency Shelter Program for Sexual Assault and Intimate Partner Violence: $20,000

5. Meals that Connect – Nutrition for Healthy Seniors: $5,000

6. Mixteco Indigena Community Organizing Project (MICOP) – Housing/Wellness Navigator Program: $15,000

7. People’s Self-Help Housing (PSHH) – City of SLO Housing Program:
$10,000

8. Restorative Partners – Opportunity to Fund: $10,000

9. Shower the People – Shower Program: $20,000

10.SLO CASA – General SLO CASA Program Support: $15,000

11.SLO Legal Assistance Foundation (SLOLAF) – Senior Homeless Prevention: $10,000

12.United Way of SLO County – 211 Homeless Intake and Homeless Prevention Screening Services: $5,000
Ayes (4): Commissioner Ambrosio, Commissioner DeTurris, Commissioner Parker, and Commissioner Smith
Noes (1): Chair Kasprzak
Absent (2): Commissioner Carlotti, and Vice Chair Campos CARRIED (4 to 1)

6. COMMENT AND DISCUSSION

6.a STAFF & COMMISSIONER UPDATES AND AGENDA FORECAST
Deputy City Manager Greg Hermann and DEI Admin Specialist Sam Vethavanam provided the following update of upcoming projects:
• New DEI Manager, Matt Pennon, will be starting on May 8th. • DEI High Impact Grant discussions will start at the June HRC meeting.

4 • Staff from the Police Department (PD), Economic Development & Tourism, and Sustainability & Natural Resources will also provide updates at the June HRC Meeting.
• DEI and PD will have a booth at Pride in the Plaza on Saturday May 31st.
• An upcoming Mixteco Cultural Competency Zoom training will be taking place Thursday, May 8th.
• The Construction Board of Appeals Meeting was held on May 6th, which upheld the City Building Official’s determination of code violations at 1150 Laurel Lane.

Commissioner DeTurris requested that the July 2, 2025 meeting be moved to July 9, 2025.

Motion By Commissioner DeTurris
Second By Commissioner Smith
Action Taken: By consensus, the Commission moved the July 2, 2025 Human Relations Commission meeting to July 9, 2025.

CARRIED (5-0)
Chair Kasprzak provided updates on the following events:
• SLO Climate Coalition events
• Diversity Coalition events
• RACE Matter Brunch and Film Fest
• Mujeres de Accion Coffee event
• Bike month events
• Tiny House Tours at Waterman Village
• Pride Season
Commissioner Smith shared that the July HRC Meeting will be her last.

Homeless Response Manager Daisy Wiberg shared the following updates:
• 40 Prado is hosting a resource fair on June 4th
• Welcome Home Village groundbreaking sometime in June

7. ADJOURNMENT
The meeting was adjourned at 7:34 p.m. The next Regular Meeting of the Human Relations Commission is scheduled for June 4, 2025 at 5:00 p.m. in the Council Hearing Room at City Hall, 990 Palm Street, San Luis Obispo. _________________________
APPROVED BY HUMAN RELATIONS COMMISSION: XX/XX/202X

Item 5e
Department: Public Works
Cost Center: 9501
For Agenda of: 6/3/2025
Placement: Consent
Estimated Time: N/A
FROM: Matt Horn, Public Works Director
Prepared By: Madeline Kacsinta, Capital Improvement Program Administrative Manager SUBJECT: 2025-26 PROJECTS FUNDED BY SB1: THE ROAD REPAIR AND ACCOUNTABILITY ACT OF 2017

RECOMMENDATION
Adopt a draft Resolution entitled, “A Resolution of the City Council of the City of San Luis Obispo, California, adopting a list of projects for Fiscal Year 2025-26 funded by SB 1: The Road Repair and Accountability Act of 2017.”

POLICY CONTEXT
This action and the associated resolution are required by the California Transportation Commission (CTC) to receive funding from the Road Maintenance and Rehabilitation Account (RMRA), created by the Road Repair and Accountability Act of 2017 (SB1). The proposed projects are consistent with the proposed 2025-27 Financial Plan’s Capital Improvement Plan.

DISCUSSION
Background
On April 28, 2017, the Governor signed Senate Bill 1 (SB1) (Beall, Chapter 5, Statutes of 2017), which is known as the Road Repair and Accountability Act of 2017 (SB1). SB1 creates a funding stream, and those funds are deposited into the state’s Road Maintenance and Rehabilitation Account (RMRA) and provided to agencies to address basic road maintenance, rehabilitation, and critical safety needs on both the state highway and local roadway systems. SB1 provides funding by charging:

1. An additional 12 cents per gallon on the gasoline excise tax, effective November 1, 2017.

2. An additional 20 cents per gallon on the diesel fuel excise tax, effective November 2, 2017.

3. An additional vehicle registration tax called the “Transportation Improvement Fee” with rates based on the value of the motor vehicle, effective January 1,

Item 5e
2018.

4. An additional $100 vehicle registration tax on zero emissions vehicles model year 2020 or later, effective July 1, 2020.

Based on the latest forecasts from January 2025, the City is estimated to receive approximately $1,277,312 of RMRA funding in Fiscal Year (FY) 2025-26. RMRA funds are programmed into the financial plan to help fund eligible Capital Improvement Plan (CIP) projects. The California Transportation Commission (CTC) has established guidelines for programming and reporting the use of RMRA funds. All RMRA reporting is submitted through the CTC online Local Streets and Roads (LSR) Reporting Tool. Each year, the City is required to submit a project list to the CTC by July 1st for the upcoming fiscal year. The City Council Resolution is a required component of that July 1st submittal and fulfills the City’s obligation to remain eligible for RMRA funding for Fiscal Year 2025-

26. Following this, staff will submit a project expenditure report by September 30th, detailing actual expenditures from the previous fiscal year.

Recommended Use of 2025-26 RMRA/SB1 Funding
2025 Paving Project
The 2025 Paving Project, planned to start construction in summer of 2025, is part of the City’s ongoing pavement management plan, which alternates between maintenance of neighborhood streets in even numbered years, and maintenance and repair of arterial streets in odd years. This approach is intended to promote equity between residential and commercial areas and spread the benefits to the entire community.

The 2025 Paving Project is structured with a Base Bid and two Additive Alternatives, A and B, to maximize the scope of work within available funding, as approved by City Council on May 6, 2025. The project’s Base Bid includes roadway reconstruction, striping, curb ramps, and implementation of the City’s Active Transportation Plan and Vision Zero goal on the following streets:
 Roadway Reconstruction
a. Tank Farm Road (Broad Street to Wavertree)
b. Sacramento Drive (Industrial Way to Via Esteban)
 Roadway Striping Refresh (no paving work or other improvements) a. Broad Street (Orcutt Road to Tank Farm)
b. Santa Rosa & Mill Street Crosswalks
c. Madonna Road (US 101 Southbound Ramps to Higuera)
d. Prado Road (Higuera to Serra Meadows)
e. Tank Farm Road (Santa Fe to Broad Street)
The project’s Additive Alternatives A and B include pavement maintenance, striping, curb ramps, and storm drain infrastructure to the following streets, respectively:
a. Orcutt Road (Tank Farm Road to City/County Line)
b. Calle Joaquin (Motel 6 to City/County Line)

Item 5e
Figure 1 below shows the locations identified in the 2025 Paving Project for roadway reconstruction. Areas identified to receive striping refresh only are not shown within the figure.

Figure 1
In addition to roadway reconstruction and maintenance, the 2025 Paving Project will incorporate various street modifications outlined in the City’s Active Transportation Plan, aimed at bolstering safety and mobility for all road users. These strategies encompass design elements specifically crafted to enhance pedestrian crossing safety, augment separation between bicyclists and motor vehicle traffic, and implement measures to mitigate traffic intensity and lower speeds on select streets.

Item 5e
The project is expected to begin construction in summer 2025 and will utilize all anticipated SB1 funds for FY 2025–26 within the same fiscal year. This plan is consistent with the 2025-27 Financial Plan which is scheduled for Council’s consideration to adopt on June 17, 2025.

Previous Council or Advisory Body Action
At the May 6, 2025 City Council meeting, staff received Council authorization to advertise the 2025 Paving Project.

Policy Context
This action and the associated resolution are required by the CTC for the use of RMRA funds. The proposed projects are consistent with the proposed 2025-27 Financial Plan and Major City Goals.

Public Engagement
The programming of SB1 funds is an administrative item, so no additional public engagement was completed outside of the 2025-27 Financial Plan process. The proposed paving project to receive SB1 funding has had considerable public engagement work. The public engagement work for the project included direct mailers that were sent to all properties within the vicinity notifying community members of the proposed project, planning process and schedule, project website and opportunities to provide input. Public meetings were held at the November 21, 2024 ATC meeting and the May 6, 2025 City Council Meeting.

CONCURRENCE
There is concurrence from the Finance Department and CIP Review Committee through its review and approval of the 2025-2027 Financial Plan.

ENVIRONMENTAL REVIEW
The California Environmental Quality Act (CEQA) does not apply to the recommended action in this report, because the action does not constitute a “Project” under CEQA Guidelines Section 15378. There are no environmental impacts resulting from approval of this item. Individual projects funded under this revenue source will be required to satisfy environmental review, if required, as part of project development and approval process.

FISCAL IMPACT
Budgeted: Yes Budget Year: 2025-
26 Funding Identified: Yes

Item 5e
Fiscal Analysis:

Funding Sources
Total
Budget
Available
Current
Funding
Request
Remaining
Balance
Annual
Ongoing
Cost
General Fund $ $ $ $
State
Federal
Other: RMRA/SB1 $1,277,312 $1,277,312 $0
Total $1,277,312 $1,277,312 $0
The recommendations in this report do two things:

1. Establish a project list for FY 2025–26. While the proposed resolution identifies only the 2025 Paving Project for SB 1 funding at this time, the establishment of this project list does not commit RMRA funds irrevocably. Council retains the ability to revise funding priorities or reallocate SB 1 funds to other eligible projects at any point prior to expenditure—for example, if a new SB 1-eligible project arises or if economic conditions change and impact SB 1 revenue projections. Any changes to the project list would be documented and communicated to the California Transportation Commission (CTC) through the annual SB 1 expenditure report submitted each September. The below table indicates the total SB1 funding contribution to be used for the 2025 Paving Project. Council received a separate staff report at the May 6, 2025 meeting requesting authorization to advertise the project, which included total costs and general fund contributions to the work.

RMRA SB 1 Project List for FY 2025-26
Project 2025-26 Funding
2025 Paving Project $1,277,312
Total $1,277,312
Estimated SB 1 2025-26 $1,277,312

2. Approve the allocation of $1,277,312 from the SB1 unassigned Fund Balance to the 2025 Paving Project Account, No. 2000616, to support upcoming pavement management. If approved, this funding will be formally appropriated with the adoption of the FY 2025-26 CIP budget on June 17, 2025. Unused project budget would be carried over to the following fiscal year, and transferred to the 2026 Paving Project Account, No. 2000617. SB 1 funds may be carried over from year to year with no formal time limit, provided they remain allocated to eligible projects and are accurately tracked and reported in the City’s annual SB 1 expenditure report submitted to the California Transportation Commission

Item 5e
(CTC). Carried-over SB 1 funds will also be reflected in the fiscal sections and funding tables of future projects, showing transfers from prior-year projects where applicable.

ALTERNATIVES
The City Council could deny adoption of the resolution to fund these Capital Improvement Plan projects using SB1 funds. Council could choose to direct staff to program these funds to a different project that is eligible for SB1 funding and return to Council with that recommendation.

ATTACHMENTS
A - Draft Resolution adopting the list of projects to receive 2025-26 SB1 Funding.

R ______
RESOLUTION NO. _____ (2025 SERIES)

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

OBISPO, CALIFORNIA, ADOPTING A LIST OF PROJECTS FOR FISCAL YEAR 2025-26 FUNDED BY SB 1: THE ROAD REPAIR AND
ACCOUNTABILITY ACT OF 2017
WHEREAS, Senate Bill 1 (SB 1), the Road Repair and Accountability Act of 2017 (Chapter 5, Statutes of 2017) was passed by the Legislature and Signed into law by the Governor in April 2017 to address the significant multi-modal transportation funding shortfalls statewide; and
WHEREAS, SB 1 includes accountability and transparency provisions that will ensure residents are aware of the projects proposed for funding in the community and which projects have been completed each fiscal year; and WHEREAS, the City must adopt by resolution a list of projects proposed to receive fiscal year funding from the Road Maintenance and Rehabilitation Account (RMRA), created by SB 1, which must include a description and the location of each proposed project, a proposed schedule for the project’s completion, and the estimated useful life of the improvement; and
WHEREAS, the City will receive an estimated $1,277,312 in RMRA funding in Fiscal Year 2025-26 from SB 1; and
WHEREAS, this is the ninth year in which the City is receiving SB 1 funding and will enable the City to continue essential road maintenance and rehabilitation projects, safety improvements, and increasing access and mobility options for the traveling public that would not have otherwise been possible without SB 1; and WHEREAS, the City has undergone a robust public process to ensure public input into our community’s transportation priorities and a budgeting process that has will be adopted by City Council that includes a full listing of Capital Improvements Plan projects and funding sources including SB-1; and
WHEREAS, the City used a Pavement Management System and other goals such as the complete streets elements and bicycle and pedestrian safety to develop the SB 1 project list to ensure revenues are being used on the most high-priority and cost-effective projects that also meet the community’s priorities for transportation investment; and WHEREAS, the funding from SB 1 will help the City maintain and rehabilitate streets/roads, sidewalks, and add active transportation infrastructure throughout the City this year and similar projects into the future; and
WHEREAS, the 2023 California Statewide Local Streets and Roads Needs Assessment found that the City/County’s streets and roads are in an “at lower risk”

Resolution No. _____ (2025 Series) Page 2
R ______
condition and this revenue will help us increase the overall quality of our road system and over the next decade will bring our streets and roads into a “good” condition; and WHEREAS, the SB 1 project list and overall investment in the City’s streets and roads infrastructure with a focus on basic maintenance and safety, investing in complete streets infrastructure and active transportation projects, and using cutting-edge technology, materials and practices, will have significant positive co-benefits statewide.

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

SECTION 1. The foregoing recitals are true and correct and are adopted herein as the findings of the Council.

SECTION 2. The following project will be funded in-part with Fiscal Year 2025- 26 RMRA revenues:

Project Title: 2025 Paving Project
Project Description: 2025 Paving work consistent with Pavement Maintenance Plan
a. Project Location:
• Roadway Reconstruction
a. Tank Farm Road (Broad Street to Wavertree)
b. Sacramento Drive (Industrial Way to Via Esteban)
• Roadway Striping Refresh (no paving work or other
improvements)
a. Broad Street (Orcutt Road to Tank Farm)
b. Santa Rosa & Mill Street Crosswalks
c. Madonna Road (US 101 Southbound Ramps to Higuera)
d. Prado Road (Higuera to Serra Meadows)
e. Tank Farm Road (Santa Fe to Broad Street)
The project’s Additive Alternatives A and B include pavement maintenance, striping, curb ramps, and storm drain infrastructure to the following streets, respectively:
a. Orcutt Road (Tank Farm Road to City/County Line)
b. Calle Joaquin (Motel 6 to City/County Line)
Estimated Project Schedule: Start July 2025 — Completion December 2025
Estimated Project Useful Life: 20 years

Resolution No. _____ (2025 Series) Page 3
R ______
Upon motion of Council Member ___________, seconded by Council Member ___________, and on the following roll call vote:

AYES:

NOES:

ABSENT:

The foregoing resolution was adopted this _____ day of _______________ 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

Item 5f
Department: Community Development
Cost Center: 4003
For Agenda of: 6/3/2025
Placement: Consent
Estimated Time: N/A
FROM: Timmi Tway, Community Development Director
Prepared By: Walter Oetzell, Assistant Planner
SUBJECT: APPROVE A MILLS ACT HISTORICAL PROPERTY PRESERVATION AGREEMENT FOR THE “VOLLMER HOUSE” AT 1116 PISMO STREET
(HIST-0151-2025)

RECOMMENDATION
As recommended by the Cultural Heritage Committee, adopt a Draft Resolution entitled “A Resolution of the City Council of the City of San Luis Obispo, California, approving a Historic Property Preservation Agreement between the City and the owners of the Vollmer House at 1116 Pismo Street (Application No. HIST-0151-2025)” (Attachment A)

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

DISCUSSION
The owners of the Vollmer House at
1116 Pismo Street applied to enter
into a Mills Act historical property
contract with the City (see Draft
Agreement and Request Letter,
Attachments B and C).

The property is located on the north
side of Pismo Street, about 150 feet
east of Santa Rosa Street, in the Old
Town Historic District. It is
developed with a two-story singlefamily dwelling, known as the Vollmer House (see Figure 1), built Figure 1: Vollmer House (1116 Pismo)

Item 5f
in 1912. The property was included in the Master Inventory of Historic Structures adopted in 1983 (Resolution No. 5197).1
The Historic Resources Inventory for the building (Attachment D) notes its architectural significance and several of the characteristic features of the dwelling’s architectural style, described as “Bungaloid,” such as its clapboard siding, medium-pitched roof, larger dormer, and exposed rafters, brackets and purlins. The architect is noted as Charles McKenzie of Wolf and Wolf, San Jose) and H. R. Lyman as builder. Also noted is its association with Ernest and Marguerite Vollmer, partners in A. McAlister and Co., and owners of commercial property in the city, for whom the house was built (Inventory, pg. 2).

As described in the applicant’s request letter (Attachment C), several renovation and maintenance items are planned to be completed within the life of the contract:

1. Replace or repair roof

2. Fix or replace dry rot issues including fumigation

3. Repaint exteriors and interiors and maintain

4. Maintain the historical look including the existing windows repair or, where necessary, replacement

5. Improve foundation as needed
The Mills Act Program
It is the City’s policy that significant historic resources be rehabilitated and preserved (COSE § 3.3.1). The Mills Act Program is a property tax reduction program for protection of cultural resources that encourages their maintenance and restoration (COSE § 3.6.2 of the General Plan Conservation and Open Space Element). Participation in the program is limited to Master List Resources; the most unique and important historic resources in terms of age, architectural or historical significance, rarity, or association with important persons or events in the City’s past (HPO § 14.01.050 (A)). Currently, there are 66 properties participating in the program, with the last request (for the Snyder House at 1406 Morro) approved by the Council in October, 2024.

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

1 Council Resolution 5197 available at: opengov.slocity.org/WebLink/DocView.aspx?id=27829

Item 5f
Previous Council or Advisory Body Action
On April 28, 2025, the Cultural Heritage Committee reviewed this application for participation in the Mills Act Historic Preservation Program,2 along with the terms of the draft preservation contract, and, by a vote of 5-0 (two Members absent), recommended that the City Council approve the contract.

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

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

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

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

Total $ $ 0 $ $ 0
After the Mills Act contract is recorded, the County Assessor values the property by an income capitalization method, following guidelines provided by the State Board of Equalization. Because of the timing and the method of valuing the restricted property, it is difficult to accurately estimate the tax savings and resulting fiscal impacts to the City under a particular historical property contract. However, a recent summary provided in

2 Cultural Heritage Committee staff report (April 28, 2025) available online at:
opengov.slocity.org/WebLink/DocView.aspx?id=207942

Item 5f
2024 by the County Assessor indicated that the total reduction in annual tax revenue to the City amounted to approximately $67,000 for a total of 65 properties on Mills Act contracts at the time, or about $1,000 per property.

ALTERNATIVES

1. Decline to enter into a Mills Act Historical Property Contract with the property owner. Denying the request to enter into a Mills Act contract would make unavailable an effective incentive for the historic property’s long-term preservation. The Mills Act Program is a financial assistance program identified in the General Plan for encouraging maintenance and restoration of historic properties.

2. Continue consideration of the request to a future date for additional information or discussion. If the Council wishes to continue consideration of this item to a future date, staff requests that the Council detail the specific information that should be provided for discussion at the future meeting.

ATTACHMENTS
A - Draft Resolution approving a Mills Act Contract for 1116 Pismo Street B –Draft Historic Property Preservation Agreement (HIST-0151-2025) C - Applicant Request Letter (HIST-0151-2025)
D - Historic Resources Inventory (1116 Pismo)

RESOLUTION NO. ____ (2025 SERIES)

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

OBISPO, CALIFORNIA, APPROVING A HISTORIC PROPERTY

PRESERVATION AGREEMENT BETWEEN THE CITY AND THE
OWNERS OF THE VOLLMER HOUSE AT 1116 PISMO STREET
(APPLICATION NO. HIST-0151-2025)
WHEREAS, the City Council of the City of San Luis Obispo is authorized by California Government Code Section 50280 et seq. (known as “the Mills Act”) to enter into contracts with the owners of qualified historical properties to provide for appropriate use, maintenance, and rehabilitation such that these historic properties retain their historic characteristics; and
WHEREAS, the City Council has adopted Resolution No. 9136 (2000 Series), establishing the Mills Act Historic Property Tax Incentive Program as an ongoing historic preservation program to promote the preservation, maintenance, and rehabilitation of historic resources through financial incentives; and
WHEREAS, the City Council of the City of San Luis Obispo designated 1116 Pismo Street, described as the Vollmer House, as a Master List Historic Resource of the City of San Luis Obispo on August 16, 1983, by adoption of Resolution No. 5197, pursuant to the policies in the City’s Historic Preservation Program Guidelines; and WHEREAS, Christopher David Frago and Heidi A. Howland-Frago are the owners of that certain qualified real property, together with associated structures and improvement thereon, located on Assessor’s Parcel Number 002-446-019, located at 1116 Pismo Street, in the City of San Luis Obispo, California, also described as The Vollmer House; and
WHEREAS, the City and Owners, for their mutual benefit, now desire to enter into an agreement to limit the use of the property to prevent inappropriate alterations and to ensure that character-defining features are preserved and maintained in an exemplary manner, and repairs and improvements are completed as necessary to carry out the purposes of California Government Code, Chapter 1, Part 5 of Division 1 of Title 5, Article 12, Sec. 50280 et seq., and to qualify for an assessment of valuation pursuant to Article 1.9, Sec. 439 et. seq. of the Revenue and Taxation Code; and.

WHEREAS, the Cultural Heritage Committee of the City of San Luis Obispo conducted a public hearing in the Council Chamber of City Hall, 990 Palm Street, San Luis Obispo, California, on April 28, 2025, for the purpose of reviewing the proposed historic property preservation agreement, and recommended that the City enter into the agreement; and
WHEREAS, the City Council conducted a public meeting in the Council Chamber of City Hall, 990 Palm Street, San Luis Obispo, California, on June 3, 2025, for the

Resolution No. _____ (2025 Series) Page 2
R ______
purpose of considering approval of the historic property preservation agreement, and has duly considered all evidence, including the record of the Cultural Heritage Committee hearing and recommendation and the evaluation and recommendation by staff; and WHEREAS, notices of said public hearings and meetings were made at the time and in the manner required by law.

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

SECTION 1. Findings. Based upon all the evidence, the City Council makes the following findings:
a) Conservation and Open Space Element Program 3.6.2 states that the City will participate in financial assistance programs such as property tax reduction programs that encourage maintenance and restoration of historic properties. b) The Vollmer House, located at 1116 Pismo Street, has been recognized as a historic asset in the community by its designation as a Master List Historic Property by the City Council on August 16, 1983 (Resolution 5197). As such, maintaining the structure will meet the City’s goals for historic preservation listed in policies 3.3.1 through 3.3.5 of the Conservation and Open Space Element.

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

SECTION 3. Historic Property Preservation Agreement Approved. The City Council hereby approves the “Historic Property Preservation Agreement between the City of San Luis Obispo and the Owners of the Historic Property Located at 1116 Pismo Street,” to be entered into by the City and the property owners, Christopher David Frago and Heidi A. Howland-Frago, attached hereto as “Exhibit A.” SECTION 4. Community Development Director Authorized to Sign Agreement for City. The City Council hereby authorizes the Community Development Director to execute said agreement on behalf of the Council of the City of San Luis Obispo.

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

Resolution No. _____ (2025 Series) Page 3
R ______
On motion of Council Member , seconded by Council Member , and on the following roll call vote:

AYES:

NOES:

REFRAIN:

ABSENT:

The foregoing resolution was passed and adopted this 3
rd day of June 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, this ______ day of ______________, 2025. ____________________________________
Teresa Purrington
City Clerk

HISTORIC PROPERTY PRESERVATION AGREEMENT BETWEEN

THE CITY OF SAN LUIS OBISPO AND THE OWNERS OF THE HISTORIC PROPERTY LOCATED AT 1116 PISMO STREET, IN THE CITY AND THE COUNTY OF SAN LUIS OBISPO, STATE OF CALIFORNIA.

THIS AGREEMENT is made and entered into this________ day of ________ , 2025, by and between the City of San Luis Obispo, a municipal corporation (hereinafter referred to as the “City”), and Christopher David Frago and Heidi A. Howland-Frago (hereinafter referred to as “Owners”), and collectively referred to as the “parties.” Section 1. Description of Preservation Measures. The Owners, their heirs, or assigns hereby agree to undertake and complete, at their expense, the preservation, maintenance, and improvements measures described in “Exhibit A” attached hereto.

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

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

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

Historic Preservation Agreement
1116 Pismo Street

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

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

Historic Preservation Agreement
1116 Pismo Street

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

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

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

Historic Preservation Agreement
1116 Pismo Street

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

Section 8. Binding Effect of Agreement. The Owners hereby subject the historic building located at 1116 Pismo Street, San Luis Obispo, California, Assessors Parcel Number 002-446-019, to the covenants, reservations, and restrictions as set forth in this agreement. The City and Owners hereby declare their specific intent that the covenants, reservations, and restrictions as set forth herein shall be deemed covenants running with the land and shall pass to and be binding upon the Owners’ successors and assigns in title or interest to the historic property. Every contract, deed, or other instrument hereinafter executed, covering or conveying the historic property or any portion thereof, shall conclusively be held to have been executed, delivered, and accepted subject to the covenants, reservations, and restrictions expressed in this agreement regardless of whether such covenants, restrictions, and reservations are set forth in such contract, deed, or other instrument.

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

To City: Community Development Director
City of San Luis Obispo
919 Palm Street
San Luis Obispo, CA 93401
To Owners: Christopher David Frago
Heidi A. Howland-Frago
PO Box 84
San Luis Obispo CA 93406
Section 10. General Provisions.
a. None of the terms, provisions, or conditions of this agreement shall be deemed to create a partnership between the parties hereto and any of their heirs, successors, or assigns, nor shall such terms, provisions, or conditions cause them to be considered joint ventures or members of any joint enterprise.
b. The Owners agree to hold the City and its elected and appointed officials, officers, agents, and employees harmless from liability for damage or from claims for damage for personal injuries, including death, and claims for property damage which may arise from the direct or indirect use or activities of the Owners, or from

Historic Preservation Agreement
1116 Pismo Street

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

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

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

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

Historic Preservation Agreement
1116 Pismo Street

OWNERS
____________________________________ ______________________________ Christopher David Frago Date
____________________________________ ______________________________ Heidi A. Howland-Frago Date

CITY OF SAN LUIS OBISPO
____________________________________ ______________________________ Timothea Tway Date
Community Development Director
Pursuant to authority conferred by Resolution [NNNN] (2025 Series) ATTEST:
______________________________
Teresa Purrington, City Clerk
APPROVED AS TO FORM:
______________________________
Christine Dietrick, City Attorney

ALL SIGNATURES MUST BE NOTARIZED

Historic Preservation Agreement
1116 Pismo Street

EXHIBIT A

MAINTENANCE AND IMPROVEMENT MEASURES FOR THE VOLLMER HOUSE LOCATED AT 1116 PISMO STREET, SAN LUIS OBISPO, CALIFORNIA

1. Owners shall preserve, maintain, and repair the historic building, including its character-defining architectural features in good condition, to the satisfaction of the Community Development Director or designee, pursuant to a Mills Act Preservation Contract with the City of San Luis Obispo for property located at 1116 Pismo Street.

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

2. Owners agree to make the following improvements and/or repairs during the term of this contract but in no case later than ten (10) years from the contract date. All changes or repairs shall be consistent with the City’s Historic Preservation Ordinance and the Secretary of the Interior’s Standards for the Treatment of Historic Properties:
 Repair or, as necessary, replace roofing materials
 Repair dry rot of materials
 Interior and exterior painting
 Window maintenance or, where necessary, replacement
 Foundation repair
 General maintenance and upkeep
OWNERS
____________________________________ ______________________________ Christopher David Frago Date
____________________________________ ______________________________ Heidi A. Howland-Frago Date

Item 5g
Department: Public Works
Cost Center: 5008
For Agenda of: 6/3/2025
Placement: Consent
Estimated Time: N/A
FROM: Matt Horn, Public Works Director
Prepared By: Greg Cruce, Deputy Director – Maintenance Operations SUBJECT: AUTHORIZE THE DISPOSAL OF WRECKED FLEET ASSET 1712

RECOMMENDATION
Authorize the Disposal of a Wrecked Fleet Asset No. 1712 in Accordance with Section 405-L of the City’s Financial Management Manual.

POLICY CONTEXT
Section 405 (Attachment A) of the City Financial Management Manual provides guidance related to Fleet Management. Section 405-L of this Fleet Management Policy provides guidance that vehicles that have been replaced or permanently removed from service shall be done in accordance with Section 480 (Attachment B) of the Financial Management Manual.

Section 480 of the Financial Management Manual Administrative Policy A states: “The Director of Finance & Information Technology (IT) is authorized to declare as surplus those items of personal property and consumable supplies estimated to be less than $1,000 in value; Council approval is required to declare personal and consumable supplies as surplus with a value of $1,000.”

DISCUSSION
Background
In January 2025, a City owned 2017 Toyota Rav 4 Hybrid (Fleet Asset No. 1712) was involved in a minor traffic accident. At that time, the vehicle appeared to be mechanically functional and continued to be operated without Fleet Services being notified. Shortly thereafter, the vehicles check engine light came on which led to a service request for the Fleet Maintenance Program to evaluate, diagnose and repair. Fleet staff inspected the vehicle and discovered the accident created a coolant leak that drained all cooling fluids.

Hybrid vehicles use the vehicles’ cooling system to cool and protect the hybrid battery.

The vehicle’s hybrid battery shows signs of swelling, which could be an indication of a damaged battery.

Item 5g
The vehicle was sent to a collision shop for an estimate to repair the radiator and body damage, which totaled $10,158, and does not include any work to the battery.

Unfortunately, there is no way to test the condition of the battery without repairing the vehicle. The current cost of the repairs exceeds 60% of the vehicles value, and if the battery is found to be damaged, the total repair cost will exceed the value of the vehicle.

Therefore, staff is recommending sending the vehicle to auction in its current state in accordance with Section 405 of the Financial Management Manual and not replacing this vehicle as transportation needs can be addressed within the City’s current fleet assets.

Public Engagement
This is an administrative item, so no public engagement was completed. The item is a consent item for the June 3, 2025, City Council meeting and will follow all required postings and notifications. The public will have an opportunity to comment on this item at or before the meeting.

CONCURRENCE
The Community Development Department concurs with the report and action.

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

FISCAL IMPACT
N/A
Budgeted: No Budget Year: 2025-26
Funding Identified: No
Fiscal Analysis:

Funding
Sources
Total Budget
Available
Current
Funding
Request
Remaining
Balance
Annual
Ongoing
Cost
General Fund -N/A - - -
State - - - -
Federal - - - -
Fees - - - -
Other: - - - -
Total -N/A - - -
All proceeds from the sale of the vehicle will be deposited into the CIP – Fleet fund

Item 5g
balance.

ALTERNATIVES
Council could choose not to approve this action. Council could direct staff to repair this vehicle or use this vehicle’s non-damaged parts for future repairs. This action could reduce future materials and supplies cost if a repair was warranted on a similar vehicle but would likely increase labor cost to find, remove and rehabilitate the part prior to installation of that part on a different vehicle.

ATTACHMENTS
A – Financial Management Manual, Section 405
B – Financial Management Manual, Section 480
C – Vehicle Repair Quote
D – Repair Photos

Section 405

FLEET MANAGEMENT

TABLE OF CONTENTS

OVERVIEW
A. Purpose and Objectives 2
B. Responsibilities 3

POLICIES
C. Maintaining Proper Fleet Size 6
D. Buying New Versus Used 7
E. Environmental Stewardship 8
F. Fleet Use Target Guidelines Before Replacement 9
G. Equipping and Marking Newly-Acquired Units 11

PROCEDURES
Budgeting
H. Budgeting for Fleet Additions and Replacements 12
Budgeting for Fleet Additions
Budgeting for Fleet Replacements
Off-Cycle Fleet Additions and Replacements
Replacing Damaged Fleet Units
Purchasing
I. Buying New Units: Cooperative Purchasing Contract 14 J. Buying New Units: Invitation for Bids 16
K. Buying Used Vehicles 17
Surplus Units
L. Disposing of Surplus Units 18
Originally adopted by the Council on October 2, 1990 (Resolution No. 6876), most recent update on February 17, 2009 (Resolution No. 10057).

Revised by the City Manager November 2014.
405-1 Page 97 of 285
SECTION 405-A: OVERVIEW

PURPOSE AND OBJECTIVES

1. Purpose
The City’s fleet represents a significant investment in the tools needed to deliver day-today services. This section of the Financial Management Manual outlines responsibilities, policies, and procedures for managing the City’s fleet according to established objectives.

2. Objectives
a. Minimize fleet life-cycle costs. Typically, it makes sense to get as much service life as possible out of a fleet unit. On the other hand, as fleet units get older and accumulate more miles, operation and maintenance costs eventually become excessive. Also, surplus value declines sharply after a certain point. Striking a sensible balance among these fleet management principles can maximize utility and minimize overall costs.
b. Avoid unnecessary capital outlays for fleet expansion and replacement.

Expanding the fleet or replacing an existing unit may not make sense if the unit is used only sparingly.
c. Preserve and improve fleet safety, utility, reliability, and economy. Regular and competent inspection and maintenance can prevent safety problems, maximize reliability, and minimize long-term costs. Newer vehicles usually incorporate more advanced technology such as airbags, anti-lock braking systems, and engines that burn cleaner, last longer, and use less fuel. New construction equipment usually incorporates technology that improves the productivity and safety of equipment operators. Also, newer units are more reliable. d. Maintain a positive image for the City. Routinely cleaning, maintaining, and repairing fleet units can demonstrate a commitment to good stewardship over City assets. Operating older vehicles and equipment can convey a positive impression of cost-consciousness. Stylish features with marginal utility may project an inappropriate image of luxury or extravagance.
e. Set a progressive example of environmental stewardship. Buying and operating alternative and fuel-efficient units, where functionally and fiscally practical, can demonstrate the practicality of such units in reducing conventional-fuel use and enhancing air quality. It can also encourage the initial supply of innovative products until widespread demand makes them more feasible to produce. f. Encourage responsible use of City vehicles and equipment. Conscientious use of City vehicles and equipment can improve safety and reduce liability. 405-2 Page 98 of 285
405-B: Overview

RESPONSIBILITIES

1. City Manager
a. Oversee the acquisition, operation, and disposal of all City-owned and leased Fleet vehicles and equipment.
b. Authorize replacement of fleet units damaged beyond repair when the cost or method of replacement exceeds Department Head purchasing authority and is within the City Manager’s purchasing authority.
c. Amend fleet management policies and procedures as required to accomplish adopted fleet management objectives.

2. Department Head
a. Ensure staff follows fleet management policies and procedures. b. Budget for fleet additions and replacements not funded through the Fleet Replacement Fund.
c. Authorize replacement of fleet units damaged beyond repair when the cost or method of replacement is within the Department Head’s purchasing authority.

Replacement units shall be economical and efficient; avoid luxury units.

Consultation with the Public Works Director including justification for replacement is required.
d. Ensure that all department employees who operate fleet units have appropriate and valid operator licenses.
e. Ensure discussion between management staff occurs to identify and consider incremental changes when Transit contracts renew or key fleet staff positions vacate. Potential opportunities include combining business activities, integration of fleet asset management and reporting, establishing equipment standards and using master contracts for outsourced service providers.

3. General Fleet Coordinator
a. Manage the acquisition, disposal and replacement of all units not assigned to the Fire or Transit Fleet.
b. Service and repair all vehicles and other related fleet equipment including portable and fixed emergency generators not assigned to the Fire or Transit Fleet. c. Manage inventories of fuel, oil, tires, and replacement parts needed for all units not assigned to the Fire or Transit Fleet.
d. Document maintenance history and cost, fuel use, and accumulated mileage (or hours) for each unit not assigned to the Fire or Transit Fleet. e. Identify units to be disposed.

4. Fire Fleet Coordinator
The City has established a separate Fire Fleet to address the specific needs of this specialized equipment. Fire equipment has a special roll and demands that require special certification and record keeping in maintaining unique equipment. A Fire Vehicle 405-3 Page 99 of 285
Mechanic position and Fire equipment maintenance facilities based at Fire Station One has been a long standing and successful norm for managing the Fire Fleet. This practice will continue indefinitely, however, when Fire maintenance staff positions vacate, the Public Works and Fire departments should take the opportunity to identify and consider potential opportunities that could be beneficial for consolidating some or all elements of the Fire and General Fleet.
a. Manage the acquisition, disposal and replacement of all units assigned to the Fire Fleet. This includes all vehicles and related fleet equipment – including portable and fixed emergency generators – assigned to the Fire Department. b. Service and repair all units assigned to the Fire Fleet. c. Manage inventories of the fuel, oil, tires, and replacement parts needed for all units assigned to the Fire Fleet.
d. Document the maintenance history and cost, the fuel use, and the accumulated mileage (or hours) for each unit assigned to the Fire Fleet. e. Identify units to be disposed.

5. Transit Fleet Coordinator
The City has established a separate Transit Fleet to address the specific needs of this specialized equipment. Transit equipment has a special roll and demands that require special certification and record keeping in maintaining unique equipment. A Transit Management position, comprehensive Service Contract, and Transit equipment maintenance facilities based at 29 Prado Road has been a long standing and successful norm for managing the Transit Fleet. This practice will to continue indefinitely, however, when Transit contracts are up for renewal or key Transit management staff positions vacate, Public Works should take the opportunity to identify and consider potential opportunities for consolidating some or all elements of the Transit and General Fleet. a. Manage the acquisition, disposal and replacement of all units assigned to the Transit Fleet. The Transit Fleet includes buses and service vehicles owned by the City and used by the City’s transit service contractor. Because such contractors prefer to service and repair the vehicles they operate, the Transit Fleet is kept separate from other City units.
b. Oversee the maintenance and operation activities of the Transit Fleet that are performed by the transit service contractor.
c. Identify units to be disposed.

6. Vehicle and Equipment Operator Responsibilities
a. Exercise good judgment.
b. Consult a supervisor or the fleet coordinator if any operator responsibilities are not clear.
c. Use City units only for conducting City business unless 1) a vehicle is part of a compensation package or 2) it is a standby vehicle used for de minimus use (see City Standby Vehicle Policy for more details).
d. Arrange for emergency repairs whenever consulting with the fleet coordinator would be impractical. Pay for emergency repairs by either using a City credit card or paying for the repair and submitting receipts for reimbursement. 405-4 Page 100 of 285
e. Wash and vacuum units periodically to maintain appearance and prevent premature deterioration of surfaces and materials. Use City-owned washing facilities if available. If City-owned washing facilities are not available, use a commercial car wash. Use commercial waxing and detailing services only with prior approval of the Fleet Coordinator.
f. Pay for any parking fees and tolls required while on City business. Submit receipts for reimbursement.
g. Pay any traffic and parking fines incurred. These payments are not reimbursable. h. Carry a valid California driver license.
i. Obey all traffic laws.
j. Except for emergency response, strictly observe speed limits and avoid rapid acceleration in order to minimize fuel use.
k. In order to minimize fuel use, avoid vehicle idling except when required for safety, emergency response, vehicle maintenance, equipment activity, or recommended warm-up.
l. Drive defensively.
m. Use turn signals.
n. Use seat belts and ensure all occupants the use seat belts. o. In case of accident, follow instructions included in the accident folder. p. Observe no smoking in City vehicles policy requirements in accordance with City policies pursuant to City Municipal Code Title 8, Health and Safety, 8.16.030 paragraph C.
q. Observe cell phone use policy requirements during operation of City vehicles.

7. Finance Division Responsibilities
a. Dispose of surplus vehicles in accordance with City policy in section 480 or the Finance Management Manual.
405-5 Page 101 of 285
Section 405-C: Policies

MAINTAINING PROPER FLEET SIZE

1. Minimum Fleet Size. The number of units in the fleet should not exceed the minimum number of units needed to effectively conduct City business.

2. Reviewing Vehicle Use. When budgeting for fleet replacements, calculate average annual mileage or hours for each unit to be replaced. If average annual use appears to be much lower than the average annual use within the same vehicle or equipment category, the following options should be considered instead of replacement:
a. Using a vehicle assigned to a convenient vehicle pool. b. Occasionally borrowing from, or establishing on-going shared equipment with another operating program.
c. Renting or leasing a vehicle or equipment item for a limited period of time in accordance with Financial Management Manual requirements and Finance Director approval where required.
d. Reimbursing employees for use of privately-owned personal vehicles where it is a practical or necessary alternative to City vehicle use, particularly if such use may result in reduction in fleet size and does not conflict with trip reduction efforts.

3. Reimbursement for Business Use of Personal Vehicles. When use of a privately owned personal vehicle is authorized for City business, reimbursement will be made at the current Internal Revenue Service rate allowed for business use of vehicles. Consistent with the IRS calculation of this rate, the per mile reimbursement rate will reflect all costs associated with operating a vehicle, including, but not limited to, depreciation, lease payments, maintenance, repairs, fuel, oil, insurance, and vehicle registration fees.

4. Timely Disposal of Replacement Units. Replacement of units shall not be a strategy to expand the fleet either temporarily or permanently. When a unit is replaced, it will expeditiously be declared surplus and be disposed, except that the Department Head in consultation with the Public Works Director may approve a one-time temporary retention and use not to exceed 180 days.
a. The General Fleet Coordinator may retain one surplus general purpose sedan or pickup truck for a loaner vehicle to be used by departments when their vehicles are being serviced.
b. The General Fleet Coordinator may retain one surplus backhoe/loader for lightduty use at the Corporation Yard.

NOTE: Retention of surplus units for use in alternative programs may be viable pursuant to pending Grey Fleet policy.

5. Authority to Dispose of Surplus Units. The Director of Finance & Information Technology is authorized to:
a. Dispose of surplus units by sale, auction, trade-in, or other disposal method according to City policies and procedures.
405-6 Page 102 of 285
Section 405-D: Policies

BUYING NEW VERSUS USED

1. Based on past experience with purchase of used general fleet equipment, and to ensure reliability and value, the City’s primary practice should be purchasing new vehicles and equipment when replacements are needed. Buying new fleet equipment takes advantage of design advancements and improvements in fuel usage at reasonable cost from competitive bidding through state and local cooperative purchase opportunities. This does not preclude the option to buy used on a case-by-case basis if there are specific reasons why used vehicles or specialize equipment is a more practical and cost effective alternative to buying new.

2. Exception. One standing exception to this policy is that the City will purchase used general-purpose police sedans. The Police Department needs general-purpose sedans that:
a. Are not typical government fleet vehicles with modest exterior trim levels so the sedans do not stand out as stripped-down government vehicles. This is important because these cars are often pressed into service for detective or undercover work. b. Have large interior capacities with plenty of seat width and legroom in the rear.

This is important because these cars must occasionally respond to emergencies carrying four fully equipped patrol officers.

To meet these two criteria and keep replacement budgets reasonable, the City should buy used vehicles to replace general-purpose police sedans. This procedure is common practice in California cities when replacing similar police vehicles. 405-7 Page 103 of 285
Section 405-E: Policies

ENVIRONMENTAL STEWARDSHIP

1. The City should incorporate “green” vehicles into its General, Fire, and Transit Fleets when such units:
a. Will produce significantly less air pollution, use less fossil fuel or have higher miles-per-gallon ratings than comparable conventional units. b. Will not compromise fleet safety, utility, and reliability. c. Can be fueled or recharged locally.
d. Can be serviced economically and locally.
e. Have a projected life cycle cost that is no more than 20% higher than the projected life cycle cost of comparable conventional-fuel units. The impact of environmental externalities, such as secondary pollution or market impacts from bio fuel production and distribution, should be considered with potential decisions in procuring alternative fuel vehicles.

2. Each new and replacement unit should have the best fuel-efficiency and the lowest emissions available while performing its primary program use. Incidental or occasional program uses should not compromise good fuel-efficiency and low emissions. For example, if the primary use is local transportation for one or two people, then a small or ultra-small vehicle is preferred. If the program occasionally needs a larger unit to transport three or four people to an out-of-town conference, such a unit should be rented or borrowed from another program area.
405-8 Page 104 of 285
Section 405-F: Policies

FLEET USE TARGET GUIDELINES BEFORE REPLACEMENT

1. The following table shows the age and mileage expected from City units in front-line operation before replacement or assignment to backup service:

Suggested Fleet Replacement Criteria
Vehicle or Equipment Category Age
(Years) Mileage Years Allowed in
Backup Service* Hours
Public Safety Vehicles
Police Patrol Vehicles --- 80,000 --- ---
Police Patrol Motorcycles --- 35,000 --- ---
Fire Pumper Trucks 16 --- 4 ---
Fire Aerial Ladder Trucks 20 --- 4 ---
Other Fire Trucks 10 --- --- ---
Other Public Safety Vehicles** --- 80,000 --- ---
General Purpose Vehicles
Police Sedans 8 90,000 ---
Sedans 11 90,000 ---
Station Wagons 11 90,000 ---
Passenger Vans 11 90,000 ---
Utility Vehicles 11 90,000 ---
Pickup Trucks (under 1 ton) 11 90,000 ---
Special Purpose Service Units
Light Trucks (under 1 ton) 12 100,000 ---
Medium Trucks (1 to 2 tons) 12 60,000 ---
Heavy Trucks (over 2 tons) 12 60,000 ---
Utility Scooters 6 30,000 5,000
Street Sweepers 8 60,000 6,000
Vacuum Flusher Trucks 12 60,000 ---
Trailers 18 --- ---
Construction Equipment 12 --- 5,000
Buses 12 --- ---
Mowers 7 --- 5,000
Boats 21 --- ---
Other Portable Equipment 15 --- ---
* Backup service defined as setting aside a unit from front line or regular service for the sole purpose of being available during down time of the front line unit. ** Includes any 24/7 scheduled units that are primarily assigned as a front-line, first responder emergencycall vehicle. As of November 2008, this includes the Police CSI Truck, Police Sergeant SUV and Fire Battalion Chief SUV.

2. For units purchased used, the age and mileage targets apply to age and mileage since new, rather than age and mileage since acquired by the City. 405-9 Page 105 of 285

3. Age/mileage/hours standards will be periodically reviewed and may be adjusted because of improvements in technology or maintenance practices.

4. In order to maintain the high level of reliability required for emergency response vehicles, replace police patrol units when they reach their mileage targets. For the same reason, fire safety units should be replaced when they reach their age targets.

5. For non-safety units, the age/mileage/hours targets are only guidelines. Units in exceptional condition with low-cost repair histories may continue in service beyond expected age/mileage/hours targets at the discretion of the fleet coordinator. On the other hand, units may be recommended for replacement before expected age/mileage/hours targets are reached if there are problems with irreparable damage, high maintenance cost, unreliability, unsafe components, or technological obsolescence. 405-10 Page 106 of 285
Section 405-G: Policies

EQUIPPING AND MARKING NEWLY-ACQUIRED UNITS

1. The Fleet Coordinator will equip each unit with the following articles:
a. Vehicle registration forms
b. Proof of insurance
c. An accident folder that includes an incident report form, an information exchange card, and witness information cards

2. General-purpose sedans, station wagons, and passenger vans do not require any special markings. However, these vehicles must be identified as belonging to the City of San Luis Obispo through such means as a license plate holder or window decal.

3. Utility vehicles, pickup trucks, and special purpose units will be marked with logos and colors listed in the City Style Guide, including the City fleet identification number.

4. Police patrol vehicles and patrol motorcycles will be marked so that they will be immediately recognizable as City public safety vehicles. The City Manager will approve marking schemes for patrol vehicles.

5. Emergency response units in the Fire Fleet will be marked so that they will be immediately recognizable as City public safety vehicles. The City Manager will approve marking schemes for emergency response units. General-purpose sedans in the Fire Fleet will be marked as described in #2 above.

6. Transit Fleet vehicles will be marked with a distinctive scheme that includes the term “SLO Transit.” Any changes to Transit Fleet markings will be considered by the Mass Transportation Committee and approved by Council.

7. The City Manager must approve any deviations from the provisions of paragraphs 2 through 5 and any additional special markings on any units. Any significant change to established vehicle markings may, at the discretion of the City Manager, require Council approval.
405-11 Page 107 of 285
Section 405-H: Procedures

BUDGETING FOR FLEET ADDITIONS AND REPLACEMENTS
Budgeting for additions and replacements will be pursuant to the City’s budget policies and the budget instructions issued for each Financial Plan cycle. Except as noted below, all fleet additions and replacements are approved by the Council through the budget process.

1. Budgeting for Fleet Additions
a. Prepare a Capital Improvement Plan (CIP) request for each proposed unit via the Fleet Supervisor.
b. Group similar units within one operating program into a single request. c. Departments shall rank each request in priority order.

2. Budgeting for Fleet Replacements
a. Examine units that are near or beyond age and mileage targets. Recommend replacement if justified by maintenance history, overall condition, value, and obsolescence.
b. Prepare a CIP request including the following for each unit being replaced:
• City identification number (e.g., 0405)
• Model year (e.g., 2010), make (e.g., Ford), and model (e.g., F-350) • Description (e.g., one-ton truck)
• Assigned department (e.g., Public Works)
• Assigned program (e.g., Signal and Light Maintenance) • Acquisition year (e.g., 2010-11)
• Acquisition price
• Recommended replacement year
• Estimated total replacement price (including the price of additional equipment such as radios and installation for new or transferred equipment) • Itemization of total replacement price (including base price, price of special equipment, price of special equipment installation, and five percent price contingency)
• Estimated surplus value
• Basis of estimated surplus value (e.g., blue book, previous auction proceeds) • Current odometer or hourmeter reading
• Projected odometer or hourmeter reading at replacement • Maintenance cost since acquisition
• Maintenance cost in the last full fiscal year
• Justification for replacement before age or mileage targets • Justification for replacement with other than a like unit • An explanation of how the replacement unit conforms to the policies of Section 405-E regarding environmental stewardship
405-12 Page 108 of 285

3. Off-Cycle Additions and Replacements
Request fleet additions or replacements at times other than the normal budget cycle (Financial Plans, Mid-Year Budget Reviews and Financial Plan Supplements) when necessary due to exceptional circumstances.

4. Replacing Fleet Units Damaged Beyond Repair
Authorize replacement of fleet units damaged beyond repair when the cost or method of replacement is within the Department Head’s purchasing authority.1 Consultation with the Public Works Director including justification for replacement is required.

Request Department Head approval to replace fleet units damaged beyond repair, subject to all of the following conditions:
a. The Fleet Coordinator has evaluated cost options and recommended replacement rather than repair as the most cost effective solution. b. The cost and method of replacement are within the Department Head’s purchasing authority.
c. Replacement units shall be economical and efficient; avoid luxury units. d. Adequate resources are available for the purchase within existing budget appropriations.
e. Submit (1) information about the unit being replaced (per paragraph 2b of this section) and (2) a full description of the circumstances resulting in the damage to the Public Works Director for review and approval.
1 Request City Manager and/or Council approval if replacement cost exceeds Department Head authority. 405-13

Section 405-I: Procedures
BUYING NEW UNITS: COOPERATIVE PURCHASING CONTRACT
Note: All Fleet purchases such as Police patrol vehicles, general-purpose fire trucks, sedans, station wagons, passenger vans, light to heavy trucks, utility vehicles, and construction equipment should generally be acquired new through State of California Multiple Award Schedule (CMAS) contracts. Specialized units not generally available through CMAS should generally be acquired new through “piggyback” purchases, where other local agencies have conducted competitive procurements and made those contracts available to the City.

1. Obtain a copy of the purchasing contract that extends contract prices to other government agencies.

2. Ensure that the specified unit along with options is appropriate for the intended use.

3. Contact any local dealers that might have been potential bidders to ensure that the cooperative contract price is a good value and prudent alternative to advertising for bids. a. Use local dealer within the city limits if they can provide the same brand, model and configuration of item(s) identified in cooperative purchase agreement(s) at or below the cooperative purchasing net cost within the same terms and conditions.

4. Include only those options needed to meet work requirements and typical comfort needs.

Avoid options like fancy wheels or leather upholstery that might be perceived as luxurious, even if there is no difference in price compared to ordinary options.

5. Specify the exterior paint color to be white. Specify another base color (preferably solid and non-metallic) if authorized or if it will demonstrably improve safety, enhance utility, or reduce cost.

6. Submit the following to the Finance Director for approval when using cooperative purchasing agreement:
a. Purchase order to dealer
b. Dealer invoice that references cooperative purchasing agreement contract number c. Copy of the cooperative purchasing agreement
d. Statement confirming dealer pricing agrees with cooperative purchasing agreement bid

7. Submit the following to the Finance Director for approval when using local dealer:
a. Purchase order to dealer
b. Dealer invoice
c. Documentation of cooperative purchasing agreement pricing for comparison d. Statement confirming local dealer pricing is better than cooperative purchasing agreement bid.

If unit cost exceeds Finance Director’s purchasing authority, submit a City Manager or Council Agenda Report requesting approval.

8. Receive the unit and examine it for defects and conformance to specifications. If satisfactory, mark the dealer’s invoice “okay to pay,” initial it, and forward it to the 405-14 Page 110 of 285
Finance Department with a copy of the purchase order. Note: CMAS contracts often include substantial cash discounts for payment within a stated period of time. For this reason, invoices should be processed promptly to earn such discounts.

9. Forward any title documents to the Finance Department.

10. Pay any State of California CMAS invoices and charge the appropriate project account.

The State assesses a nominal service charge – typically one percent of the base price – for CMAS procurements. Invoices for these service charges usually arrive two or three months after the procurement.
405-15 Page 111 of 285
Section 405-J: Procedures
BUYING NEW UNITS: INVITATION FOR BIDS
Note: Where appropriate vehicles and equipment are not available through cooperative purchasing contracts, they should be acquired new through invitations for bids.

1. Use the standard invitation for bids (IFB) template to create the specification.

2. In Section A (Description of Work), list the dimensions, capacities, ratings, and options that will adequately describe the unit needed for the intended use. Avoid describing a unit available from only one manufacturer.

3. Include only those options needed to meet work requirements and typical comfort needs.

Avoid options like fancy wheels or leather upholstery that might be perceived as luxurious, even if there is no difference in price compared to ordinary options.

4. Specify the exterior paint color to be white. Specify another base color (preferably solid and non-metallic) if it will demonstrably improve safety, enhance utility, or reduce cost.

5. If the unit will be picked up at the dealer or delivered by common carrier, eliminate insurance requirements from Section B (General Terms and Conditions) and eliminate Section E (Insurance Requirements) from the specification.

6. Eliminate the contract requirements from Section B (General Terms and Conditions).

Eliminate Section D (Form of Agreement) from the specification.

7. In Section C (Special Terms and Conditions), change language about awarding a contract to language about issuing a purchase order.

8. Along with the bid form, include a specification conformance form on which the bidder affirmatively indicates that its product meets the description included in Section A of the Invitation for Bid.

9. Request authorization from Finance Director to invite bids. If unit cost exceeds Finance Director’s purchasing authority, submit a City Manager or Council Agenda Report requesting authorization to invite bids and award contract via Finance Director.

10. Advertise for bids.

11. Open bids.

12. Prepare a purchase order to the successful bidder and submit it to the Finance Director for approval.

13. Receive the unit and examine it for defects and conformance to specifications. If satisfactory, mark the dealer’s invoice “okay to pay,” initial it, record the date unit was accepted, and forward it to the Finance Department with a copy of the purchase order.

14. Forward any title documents to the Finance Department. 405-16 Page 112 of 285
Section 405-K: Procedures

BUYING USED VEHICLES
Note: The City should use local vendors to find suitable vehicles at auction. This approach avoids high dealer markups and allows purchases of vehicles from leased corporate fleets.

1. Request Department Head approval to purchase a used vehicle when the cost or method of replacement is within the Department Head’s purchasing authority.2 Consultation with the Public Works Director including justification for purchase is required.

2. The Fleet Coordinator will initiate a search for a vehicle through vendors who buy and sell vehicles.

3. Identify a late model, low mileage vehicle that is acceptable for program requirements.

Consider only vehicles with options needed to meet work requirements and typical comfort needs. Avoid luxury vehicles.

4. Perform a technical inspection to confirm the vehicle is in excellent condition.

5. Negotiate a purchase price, including an extended warranty as appropriate, to be included in a written buyers order from the dealer.

6. Prepare a purchase order and submit it to the Finance Department.

7. Receive the vehicle and examine it for defects and conformance to the buyers order.

8. Forward any title documents to the Finance Department. 2 Request City Manager and/or Council approval if unit cost exceeds Department Head authority. 405-17

Section 405-L: Procedures

DISPOSING OF SURPLUS UNITS

1. When a unit is replaced or otherwise permanently removed from service, report to the Finance Department that it is surplus and available for sale.

2. Include in each such report the following information for each unit reported:
• City identification number (e.g., 9901)
• Vehicle identification number (VIN)
• License number
• Model year (e.g., 2005), make (e.g., Ford), and model (e.g., F-350) • Description (e.g., one-ton truck)
• Assigned department (e.g., Public Works)
• Assigned program (e.g., Signal and Light Maintenance) • Acquisition year (e.g., 2004-05)
• Estimated surplus value
• Basis of estimated surplus value (e.g., blue book, previous auction proceeds) • Current odometer or hourmeter reading
• Justification for replacement
• Current location
• Authorization to surplus (e.g., budget document that authorized replacement or other Council authorization to replace or dispose of the unit)

3. Finance Division will dispose of surplus vehicles in accordance with Section 480 of the Financial Management Manual.
405-18 Page 114 of 285
Section 480-A

SURPLUS PERSONAL AND UNCLAIMED PROPERTY POLICY

OVERVIEW
This policy addresses the procedures for the disposal of surplus personal property, unclaimed property, consumable supplies, and junk. The policies and procedures for the disposal or sale of surplus real property, abandoned property and resale inventory are provided in other policy documents.

In preparing this policy, not all issues or exceptions could be anticipated. Accordingly, the guidance given in this policy does not relieve Staff from exercising good judgment in their stewardship of the City's property resources. Whenever there is a question or doubt between the guidance provided in this policy and the good judgment expected of a prudent person, good judgment should always be the prevailing standard, with this policy as a minimum standard.

LEGISLATIVE POLICY
A. Surplus Property
Section 906 of the City Charter provides that the Council must approve the sale of surplus property (real or personal) with an estimated value greater than $1,000.

B. Unclaimed Property

1. Chapter 3.32 of the City Municipal Code provides for the disposal of unclaimed property by the Chief of Police. This property must be held for a minimum of four months and notice of sale must be given at least five days prior to sale by publication in a newspaper of general circulation. Property not sold may be destroyed by the Police Department after public auction.

2. Sections 2080.4 and 2080.6 of the Civil Code requires any person finding property valued at $10.00 or more to turn the property over to the Police Department within a reasonable time, stating when and where the property was found and providing a description of the property. If the property was saved, a statement is required from the "finder" describing:
a. From what and how it was saved.
b. Whether the owner of the property is known to the "finder". c. That the property has not been secreted, withheld, or partially disposed. 480-1 Page 115 of 285
Surplus Personal and Unclaimed Property Policy

ADMINISTRATIVE POLICY
A. The Director of Finance & Information Technology (IT) is authorized to declare as surplus those items of personal property and consumable supplies estimated to be less than $1,000 in value; Council approval is required to declare personal and consumable supplies as surplus with a value of $1,000.

B. Department Heads are authorized to approve the disposal of property that is essentially without value due to technical obsolescence or its unrepairable (or economically unrepairable) condition. Department Heads may dispose of such junk property in the manner they deem most appropriate, consistent with other rules, regulations, and the City's ethics policy.

C. Generally, estimating the value of surplus property is made by the Department Head or designated representative. In unique and unusual cases, Finance will assist Departments in estimating the value of property by using the City's auction firm to provide a professional estimate. However, in all cases, the Department Head must approve in writing the estimated value of the property to be sold or otherwise disposed.

D. The Director of Finance & IT is authorized to sell, transfer, trade, or otherwise dispose of surplus personal property, consumable supplies, or unclaimed property in the most cost effective manner. Normally the sale of this property will be at auction with a firm contracted to provide the following services:

1. Sell and dispose of personal property, consumable supplies and unclaimed property at auction.

2. Provide professional estimates as to the value of personal property and consumable supplies when required.

3. Assist in the sale of unique or special property and consumable supplies that requires the use of a "specialty house" to sell or dispose of the property.

4. Dispose of unsaleable property, supplies and equipment at an approved disposal site.

E. The Director of Finance & IT may dispose of surplus property and supplies by transfer to another local government agency or non-profit organization based on the recommendation of a Department Head. Although there may be circumstances where it is appropriate to make such transfer without compensation, cash or in-kind services should generally be received in an amount equal to or greater than the estimated value provided by the City's auction firm or the Department Head. In the case of vehicles, "low blue book value" may also be considered.

F. When it is a normal business practice, trade value should be obtained to determine the most cost effective method of disposal and as a standard by which to evaluate the services 480-2 Page 116 of 285
Surplus Personal and Unclaimed Property Policy
of the City's auction firm. There may be circumstances when trade value of property may exceed auction value, in which case the Director of Finance & IT may authorize the trade of surplus property versus sale at auction based on the recommendation of the appropriate Department head.

G. Advertising the sale of the City's property and unclaimed property will be made by the City's auction firm in accordance with these procedures, the Auction Services Agreement, and legislative policy. Accordingly, the advertising must disclose that the property for sale at auction is either the surplus property of the City of San Luis Obispo or is unclaimed property in the possession of the City and it must state the date and time of sale. Property sold at auction will be advertised at least five days in a newspaper of general circulation in the City of San Luis Obispo.

H. Property determined to be unclaimed by the Chief of Police may be sold at public auction in accordance with these policies and procedures under the following conditions:

1. It is a thing which is commonly the subject of sale.

2. The owner cannot (with reasonable diligence) be found.

3. The owner, if identified, refuses to pay the reasonable charges incurred by the City for storing and safeguarding of the property.

PROCEDURES
A. Surplus Personal Property and Consumable Supplies

1. Department Heads will identify personal property and supplies that are surplus to their needs and notify the Director of Finance & IT by Memorandum to sell or dispose of property identified, in accordance with City policy and procedures.

The property to be declared surplus will be listed and include the City Asset Number (if applicable), a descriptive name of the property, quantity, pickup location, estimated value, and name of the contract person with their extension number. Separate memorandums must be prepared for property estimated to exceed $1,000 in value and for property estimated to be less than $1,000 in value.

The memorandum (or listing) must indicate why the property is no longer required.

2. Department Heads may request that Finance assist them in estimating the value of personal property and consumable supplies. In such instances, Finance may request the services of the City's auction firm in estimating these values.

However, these services are limited and should not be used except for unique and unusual property.

3. Special handling will be required for the disposal of toxic and hazardous materials, and should be coordinated with the City's Fire Department. 480-3 Page 117 of 285
Surplus Personal and Unclaimed Property Policy

4. After receipt of a request to dispose of personal property and consumable supplies from a Department Head, Finance will circulate the list of property to other City Departments as an advisory memorandum. The property listed may be claimed by other Departments on a first come first serve basis. After 10 days from the date of the advisory memorandum, this listing will be forwarded to the Housing Authority, San Luis Coastal Unified School District, and United Way for their information. If none of these agencies expresses interest in the remaining property items within 10 days of receiving the listing, then the property will be consigned to the City's auction firm for sale or other method of disposal as determined by the Director of Finance & IT. Except in unusual circumstances, surplus property will generally remain on site pending its final disposition. This means that it is the responsibility of the interested party to make arrangements with the disposing department to view the property, discuss its condition, and coordinate any terms of transfer such as price, timing, and transportation.

5. For property with a value of $1,000 or more, the Director of Finance & IT will prepare an Agenda Report for Council approval to declare the property as surplus after review by the operating departments as described above and prior to the consignment of property to the City's auction firm.

B. Evidence
The provisions of this policy do not address the disposal of property which is classified as evidence. Evidence is governed by the provisions of the penal code and must be dealt with accordingly. For example, evidence may be returned to the owner, subjected to lien, or classed as contraband and accordingly destroyed. However, evidence may also be determined by the Chief of Police to be unclaimed property and, in that event, will be processed in accordance with the policies and procedures provided below.

C. Unclaimed Property
Unclaimed property received by the City will be processed as follows:

1. The Police Department is required to receive, hold, and safekeep all property valued at more than $10 that is found within the City limits and turned in to the Police Department for safekeeping. The owner will be notified as to where the property may be claimed if the owner's identity can reasonably be determined.

2. If the owner appears within 120 days after receipt of the property by the Police Department, proves ownership, and pays all reasonable charges, the Police Department will return the property to the owner.

3. If the reported value of the property is fifty dollars or more (and no owner appears and proves ownership within 120 days), the Police Department will publish a notice, at least once, in a newspaper of general circulation. After seven days 480-4 Page 118 of 285
Surplus Personal and Unclaimed Property Policy
following the first published notice the following actions will be taken if no owner appears and proves ownership of the property;
a. If the property was found in the course of employment by a City employee, the property shall be sold at public auction.
b. The title shall vest in the person who found the property if he or she is willing to pay the cost of the publication.
c. If the reported value of the property is less than $50 and no owner appears and proves ownership of the property within 120 days, the title shall vest in the person who found the property, unless the property was found in the course of employment by a City employee, in which case the property shall be sold at public auction.
d. Generally, the sale of unclaimed property will be made by the City's auction firm; however, in unique circumstances, the Chief of Police may request that Police Department staff conduct the auction. When the City's auction firm is used, the firm must be notified in writing with a list of property to be sold. This list does not require a statement of estimated values. The letter will give the name of the contact person and extension number, a short title property description, a pickup location, and a pickup time.
e. Prior to sale, a listing of unclaimed property shall be provided to the Director of Finance & IT, who will circulate this list as an advisory memorandum to other City Departments. The property listed may be claimed by other Departments on a first come first serve basis. After a 15 day period from the date of the advisory memorandum, the unclaimed property will be available for sale at public auction according to policy. f. The unclaimed property to be sold by the City's auction firm will be transferred on consignment in accordance with the surplus property policies.
g. Any property remaining unsold after being offered at public auction may be destroyed or otherwise disposed of by the City's auction firm.

Approved by the City Manager on March 1, 1990; revised on January 14, 1994. 480-5 Page 119 of 285
Section 480-B

AUCTION FIRM SERVICES

OVERVIEW
To reduce staff time in the sale and disposal of property, to reduce the amount of space being used to store surplus and unclaimed property, to improve the process of estimating the value of surplus property, and to maximize the value of return on surplus property, the Department of Finance & IT is authorized to contract with an auction firm to assist staff in the sale and disposal of personal property, consumable supplies and unclaimed property on an "as available basis" after authorization is given by the Council or the Director of Finance & IT to sell or dispose of City property.

The policies and procedures provided below in conjunction with the City's auction firm will provide the staff with the opportunity to systematize the sale and disposal of this property.

AUCTION FIRM RESPONSIBILITIES
The following responsibilities will normally be assigned to the City's auction firm by Agreement between the City and the firm selected:

A. The auction firm will be required to pickup any and all "marketable" surplus property by consignment and deliver this property to their premises where it shall be inventoried, sorted, identified, and catalogued. An auction will be conducted within 30 days of receipt of property and supplies.

B. The auction firm will make the necessary arrangements for offering the property for sale by auction to the most qualified buyers to obtain the highest return possible. The auction firm will advertise the auction in a manner that will obtain the maximum participation by the public in at least one newspaper of general circulation in the City of San Luis Obispo for a minimum of five days prior to a scheduled auction.

C. The property consigned to the auction firm will remain the property of the City until sold or disposed in accordance with these procedures.

D. Property not sold at auction will be disposed by on of the following methods:

1. Consignment to a sub-contractor specializing in unique or special equipment and material for which there is no local market.

2. Direct sale to a buyer of unique or special equipment and material for which there is no local market.

3. By sale as salvage to a local dealer or any recycling firm.

4. By destruction at an appropriate landfill site and certification thereto.

5. Returned to the City.
480-10 Page 120 of 285
Auction Firm Services
E. The material and equipment not sold at auction will be disposed of by one of the methods described above within 15 days from the date offered at auction. For the purpose of these instructions, the City will give approval as to the disposal method based on the recommendation of the auction firm and the method that is in the best interests of the City.

F. The auction firm will provide the Department of Finance & IT with a list of consigned property with a check for the net proceeds from the auction or specialty sale within 60 days of receipt of consigned material and equipment providing the following information:

1. City Asset number (if available)

2. Short title description of the property

3. Date of sale or disposal

4. Purchaser or the disposal site

5. Total purchase price

6. Auction fee

7. Net to City

8. Method of disposal (sale at auction, transfer to a specialty house for sale, direct sale as salvage, transfer to an appropriate landfill or disposal site, return to City) 480-11 Page 121 of 285

Enhanced Certified Collision Center Workfile ID:

PartsShare:

Federal ID:

State EPA:

BAR:
a1259eab
86-2629711
CAL000465110
ARD00301299
[email protected]
3577 S Higuera St, San Luis Obispo, CA 93401
Phone: (805) 549-0841
Preliminary Estimate
RO Number: 2700
Written By: Jordyn Zimmermann
Insured: City Of SLO Policy #: Claim #:

Type of Loss: Date of Loss: Days to Repair: 0
Point of Impact:

Owner: Inspection Location: Insurance Company:

City Of SLO Enhanced Certified Collision Center
(805) 550-7921 Business 3577 S Higuera St
San Luis Obispo, CA 93401
Repair Facility
(805) 549-0841 Business

VEHICLE
2016 TOYO RAV4 Hybrid XLE AWD 4D UTV 4-2.5L Hybrid Sequential MPI VIN: JTMRJREV7GD051429 Interior Color: Mileage In: Vehicle Out:

License: Exterior Color: Mileage Out:

State: CA Production Date: Condition: Job #:

TRANSMISSION Air Conditioning Auxiliary Audio Connection Cloth Seats Automatic Transmission Intermittent Wipers Satellite Radio Bucket Seats 4 Wheel Drive Tilt Wheel SAFETY Reclining/Lounge Seats
POWER Cruise Control Drivers Side Air Bag WHEELS
Power Steering Rear Defogger Passenger Air Bag Aluminum/Alloy Wheels Power Brakes Keyless Entry Anti-Lock Brakes (4) PAINT
Power Windows Steering Wheel Touch Controls 4 Wheel Disc Brakes Clear Coat Paint Power Locks Rear Window Wiper Traction Control OTHER
Power Mirrors Telescopic Wheel Stability Control Fog Lamps Heated Mirrors Climate Control Front Side Impact Air Bags Rear Spoiler DECOR Backup Camera Head/Curtain Air Bags Signal Integrated Mirrors Dual Mirrors RADIO Hands Free Device California Emissions Privacy Glass AM Radio Positraction TRUCK
Console/Storage FM Radio ROOF Power Trunk/Liftgate
Overhead Console Stereo Electric Glass Sunroof
CONVENIENCE Search/Seek SEATS
2/6/2025 11:20:23 AM 441521 Page 1
8m3h37

Preliminary Estimate
RO Number: 2700
2016 TOYO RAV4 Hybrid XLE AWD 4D UTV 4-2.5L Hybrid Sequential MPI Line Oper Description Part Number Qty Extended
Price $
Labor Paint
1 FRONT BUMPER & GRILLE
2 O/H front bumper 2.6
3 * <> Repl Bumper cover w/o park sensors
Japan built
521190R914 1 249.30 Incl. 2.6
4 Add for Clear Coat 1.0
5 Repl Prep unprimed bumper 1 0.7
6 * Repl Seal 533950R060 1 42.90 Incl.
7 Repl Center reinf Japan built 5208542050 1 42.11 Incl. 8 * Repl Lower panel XLE, Limited 524110R070 1 183.94 Incl. 0.0 9 * Repl Lower molding Japan built XLE,
Limited
527110R050B2 1 166.95 Incl.
10 * Repl License mount w/o SE 521140R090 1 35.16 0.2
11 * Repl RT Tow eye cap w/o SE 532850R080 1 15.79 Incl. 12 * Repl LT Tow eye cap w/o SE 532860R080 1 15.42 Incl. 13 * Repl Absorber Japan built 526140R070 1 57.90 Incl. 14 * Repl Impact bar Japan built 5202142150 1 214.94 0.5 15 * Repl RT Side retainer 525350R080 1 67.97 0.1
16 * Repl LT Side retainer 525360R060 1 68.73 0.1
17 Repl RT Lower panel fastener 9046705114 1 5.14
18 Repl LT Lower panel fastener 9046705114 1 5.14
19 Repl RT Bumper cover fastener 538790R010 1 8.36
20 Repl LT Bumper cover fastener 538790R010 1 8.36
21 * Repl Grille w/strip Japan built 531010R120 1 205.96 Incl. 22 Repl RT Grille clip 5216102020 1 3.51
23 Repl LT Grille clip 5216102020 1 3.51
24 * Repl Center grille slots, w/o pre crash
Japan built
531120R060 1 43.72 Incl.
25 * Repl Lower grille slots Japan built 531130R060 1 86.17 Incl. 26 FRONT LAMPS
27 * Repl RT Headlamp 8113042640 1 327.63 0.3
28 Aim headlamps 0.5
29 * Repl LT Headlamp 8117042640 1 324.12 0.3
30 R&I RT Fog lamp assy 0.2
31 R&I LT Fog lamp assy 0.2
32 RADIATOR SUPPORT
33 Refinish Components 1.6
34 Add for Clear Coat 0.3
35 * Repl Radiator support 5320542110 1 500.85 s 7.3 Incl. 36 Evacuate & recharge m 1.4
37 Refrigerant recovery m 0.4
38 * Repl Sight shield 166810V040 1 79.64 Incl.
39 Repl RT Air guide w/hybrid 1669136081 1 60.65 0.1
40 Repl LT Air guide w/hybrid 1669536081 1 59.36 0.1
2/6/2025 11:20:23 AM 441521 Page 2

Preliminary Estimate
RO Number: 2700
2016 TOYO RAV4 Hybrid XLE AWD 4D UTV 4-2.5L Hybrid Sequential MPI 41 * Repl RT Support bracket 532020R030 1 65.84 s 1.0 Incl. 42 Repl Sight shield clip 90467A0051 7 15.47
43 Repl LT Support bracket 5320342040 1 70.84 s 1.0 0.4 44 Add for Clear Coat 0.1
45 COOLING
46 ** Repl Non OEM Radiator assy 1640036090 1 216.45 m Incl. 47 Repl Cooling shroud 1671136180 1 235.03 m 0.7
48 Repl RT Cooling shroud lower insulator 165350V010 1 27.64 49 Repl LT Cooling shroud lower insulator 165350V010 1 27.64 50 Repl RT Cooling shroud support
bracket
1653326070 1 35.69
51 Repl LT Cooling shroud support
bracket
1653326070 1 35.69
52 Repl RT Cooling shroud upper insulator 1652328030 1 13.88 53 Repl LT Cooling shroud upper insulator 1652328030 1 13.88 54 Repl RT Motor 1636336190 1 356.10 m Incl.
55 Repl LT Motor 1636336180 1 356.10 m Incl.
56 Repl Aux pump G904048010 1 325.62
57 Repl Aux pump bracket G914148030 1 33.24
58 Repl Coolant hose G922942010 1 46.60
59 Repl Inverter cooler cushion 1671637010 2 9.08
60 AIR CONDITIONER & HEATER
61 Repl Liquid line Japan built w/hybrid 8870642810 1 230.19 m 1.0 62 FENDER
63 R&I RT Upper seal Japan built 0.1
64 R&I LT Upper seal Japan built 0.1
65 R&I RT R&I fender assy 1.4
66 R&I LT R&I fender assy 1.4
67 R&I RT Fender liner Japan built 0.4
68 R&I LT Fender liner Japan built 0.4
69 ELECTRICAL
70 R&I Low note horn m Incl.
71 R&I High note horn m Incl.
72 PILLARS, ROCKER & FLOOR
73 R&I Under cover rear 0.2
74 R&I LT Under cover front, Japan built
w/hybrid

0.3 75 VEHICLE DIAGNOSTICS
76 # Pre-repair Scan 1 0.5 M
77 # Post-repair Scan 1 0.5 M
78 MISCELLANEOUS OPERATIONS
79 # D&R/ Isolate Battery 1 0.2 M
80 # Subl Hazardous waste removal 1 10.00 X
81 # Cover Car 1 10.00 X 0.2
82 # Cover Car for Primer 1 10.00 X 0.2
83 # Mask jams/openings 1 10.00 X 0.3
2/6/2025 11:20:23 AM 441521 Page 3

Preliminary Estimate
RO Number: 2700
2016 TOYO RAV4 Hybrid XLE AWD 4D UTV 4-2.5L Hybrid Sequential MPI 84 # Repl Corrosion protection primer 1 20.00 T 0.3
85 # Repl Cavity wax 1 15.00 T
86 # Rpr Setup & measure 2.0 F
87 # Rpr Unibody Structural Pull 2.5 F
88 # Rpr Damage from unibody clamps 1.0 1.0
89 # Subl Four wheel alignment 1 160.00 X
90 ** Repl Non OEM Coolant 1 40.00 T
91 ** Repl Non OEM Coolant ( Hybrid
System)
1 40.00 T
SUBTOTALS 5,313.21 30.0 7.7

ESTIMATE TOTALS
Category Basis Rate Cost $
Parts 4,998.21
Body Labor 24.3 hrs @ $ 95.00 /hr 2,308.50
Paint Labor 7.7 hrs @ $ 95.00 /hr 731.50
Mechanical Labor 1.2 hrs @ $ 185.00 /hr 222.00
Frame Labor 4.5 hrs @ $ 150.00 /hr 675.00
Paint Supplies 7.7 hrs @ $ 55.00 /hr 423.50
Miscellaneous 315.00
Subtotal 9,673.71
Sales Tax $ 5,536.71 @ 8.7500 % 484.46
Grand Total 10,158.17
Deductible 0.00
CUSTOMER PAY 0.00
INSURANCE PAY 10,158.17
2/6/2025 11:20:23 AM 441521 Page 4

Preliminary Estimate
RO Number: 2700
2016 TOYO RAV4 Hybrid XLE AWD 4D UTV 4-2.5L Hybrid Sequential MPI

FOR YOUR PROTECTION CALIFORNIA LAW REQUIRES THE FOLLOWING TO APPEAR ON THIS FORM. ANY PERSON WHO KNOWINGLY PRESENTS FALSE

OR FRAUDULENT INFORMATION TO OBTAIN OR AMEND INSURANCE

COVERAGE OR TO MAKE A CLAIM FOR THE PAYMENT OF A LOSS IS

GUILTY OF A CRIME AND MAY BE SUBJECT TO FINES AND CONFINEMENT IN STATE PRISON.

THE FOLLOWING IS A LIST OF ABBREVIATIONS OR SYMBOLS THAT MAY

BE USED TO DESCRIBE WORK TO BE DONE OR PARTS TO BE REPAIRED OR REPLACED:

MOTOR ABBREVIATIONS/SYMBOLS: D=DISCONTINUED PART,
A=APPROXIMATE PRICE. LABOR TYPES: B=BODY LABOR, D=DIAGNOSTIC, E=ELECTRICAL, F=FRAME, G=GLASS, M=MECHANICAL, P=PAINT LABOR, S=STRUCTURAL, T=TAXED MISCELLANEOUS, X=NON TAXED
MISCELLANEOUS. CCC ONE: ADJ=ADJACENT, ALGN=ALIGN,
A/M=AFTERMARKET, BLND=BLEND, CAPA=CERTIFIED AUTOMOTIVE
PARTS ASSOCIATION, D&R=DISCONNECT AND RECONNECT,
EST=ESTIMATE, EXT. PRICE=UNIT PRICE MULTIPLIED BY THE QUANTITY, INCL=INCLUDED, MISC=MISCELLANEOUS, NAGS=NATIONAL AUTO GLASS SPECIFICATIONS, NON-ADJ=NON ADJACENT, O/H=OVERHAUL,
OP=OPERATION, NO=LINE NUMBER, QTY=QUANTITY,
RECOND=RECONDITION, REFN=REFINISH, REPL=REPLACE, R&I=REMOVE AND INSTALL, R&R=REMOVE AND REPLACE, RPR=REPAIR, RT=RIGHT, SECT=SECTION, SUBL=SUBLET, LT=LEFT, W/O=WITHOUT, W/_=WITH/_ SYMBOLS: #=MANUAL LINE ENTRY, *=OTHER [IE..MOTORS DATABASE INFORMATION WAS CHANGED], **=DATABASE LINE WITH AFTERMARKET, N=NOTES ATTACHED TO LINE. OPT OEM=ORIGINAL EQUIPMENT

MANUFACTURER PARTS EITHER OPTIONALLY SOURCED OR OTHERWISE PROVIDED WITH SOME UNIQUE PRICING OR DISCOUNT.
""CURE TIME"" MEANS THE LENGTH OF TIME THAT, PER THE ADHESIVE

MANUFACTURER, THE WINDSHIELD ADHESIVE NEEDS TO CURE UNTIL THE

WINDSHIELD CAN PROPERLY FUNCTION AS A SAFETY DEVICE PURSUANT

TO THE FEDERAL MOTOR VEHICLE SAFETY STANDARDS AND THE
VEHICLE MANUFACTURER'S SPECIFICATIONS.

THIS ESTIMATE HAS BEEN PREPARED BASED ON THE USE OF CRASH PARTS SUPPLIED BY A SOURCE OTHER THAN THE MANUFACTURER OF YOUR MOTOR VEHICLE. ANY WARRANTIES APPLICABLE TO THESE REPLACEMENT PARTS

ARE PROVIDED BY THE MANUFACTURER OR DISTRIBUTOR OF THE PARTS, RATHER THAN BY THE ORIGINAL MANUFACTURER OF YOUR VEHICLE.
2/6/2025 11:20:23 AM 441521 Page 5

Preliminary Estimate
RO Number: 2700
2016 TOYO RAV4 Hybrid XLE AWD 4D UTV 4-2.5L Hybrid Sequential MPI Estimate based on MOTOR CRASH ESTIMATING GUIDE and potentially other third party sources of data. Unless otherwise noted, (a) all items are derived from the Guide ARM8451, CCC Data Date 02/03/2025, and potentially other third party sources of data; and (b) the parts presented are OEM-parts. OEM parts are manufactured by or for the vehicle's Original Equipment Manufacturer (OEM) according to OEM's specifications for U.S. distribution. OEM parts are available at OE/Vehicle dealerships or the specified supplier. OPT OEM (Optional OEM) or ALT OEM (Alternative OEM) parts are OEM parts that may be provided by or through alternate sources other than the OEM vehicle dealerships with discounted pricing. Asterisk (*) or Double Asterisk (**) indicates that the parts and/or labor data provided by third party sources of data may have been modified or may have come from an alternate data source.

Tilde sign (~) items indicate MOTOR Not-Included Labor operations. The symbol (<>) indicates the refinish operation WILL NOT be performed as a separate procedure from the other panels in the estimate. Non-Original Equipment Manufacturer aftermarket parts are described as Non OEM, A/M or NAGS. Used parts are described as LKQ, RCY, or USED. Reconditioned parts are described as Recond. Recored parts are described as Recore. NAGS Part Numbers and Benchmark Prices are provided by National Auto Glass Specifications. Labor operation times listed on the line with the NAGS information are MOTOR suggested labor operation times. NAGS labor operation times are not included. Pound sign (#) items indicate manual entries.

Some 2024 vehicles contain minor changes from the previous year. For those vehicles, prior to receiving updated data from the vehicle manufacturer, labor and parts data from the previous year may be used. The CCC ONE estimator has a list of applicable vehicles. Parts numbers and prices should be confirmed with the local dealership.

The following is a list of additional abbreviations or symbols that may be used to describe work to be done or parts to be repaired or replaced:

SYMBOLS FOLLOWING PART PRICE:
m=MOTOR Mechanical component. s=MOTOR Structural component. T=Miscellaneous Taxed charge category.

X=Miscellaneous Non-Taxed charge category.

SYMBOLS FOLLOWING LABOR:

D=Diagnostic labor category. E=Electrical labor category. F=Frame labor category. G=Glass labor category.

M=Mechanical labor category. S=Structural labor category. (numbers) 1 through 4=User Defined Labor Categories.

OTHER SYMBOLS AND ABBREVIATIONS:

Adj.=Adjacent. Algn.=Align. ALU=Aluminum. A/M=Aftermarket part. Blnd=Blend. BOR=Boron steel.

CAPA=Certified Automotive Parts Association. CFC=Carbon Fiber.

D&R=Disconnect and Reconnect. HSS=High Strength Steel. HYD=Hydroformed Steel. Incl.=Included. LKQ=Like Kind and Quality. LT=Left. MAG=Magnesium. Non-Adj.=Non Adjacent. NSF=NSF International Certified Part.

O/H=Overhaul. Qty=Quantity. Refn=Refinish. Repl=Replace. R&I=Remove and Install. R&R=Remove and Replace. Rpr=Repair. RT=Right. SAS=Sandwiched Steel. Sect=Section. STS=Stainless Steel. Subl=Sublet.

UHS=Ultra High Strength Steel. N=Note(s) associated with the estimate line.

CCC ONE Estimating - A product of CCC Intelligent Solutions Inc.

The following is a list of abbreviations that may be used in CCC ONE Estimating that are not part of the MOTOR CRASH ESTIMATING GUIDE:

BAR=Bureau of Automotive Repair. EPA=Environmental Protection Agency. NHTSA= National Highway Transportation and Safety Administration. PDR=Paintless Dent Repair. VIN=Vehicle Identification Number. 2/6/2025 11:20:23 AM 441521 Page 6

Preliminary Estimate
RO Number: 2700
2016 TOYO RAV4 Hybrid XLE AWD 4D UTV 4-2.5L Hybrid Sequential MPI

PARTS SUPPLIER LIST
Line Supplier Description Price
3 Toyota Santa Maria #521190R914 $ 249.30
1643 S Bradley Rd Bumper cover w/o park sensors Japan built Santa Maria CA 93454 Quote: 3425255895
Expires: 03/07/25
6 Toyota Santa Maria #533950R060 $ 42.90
1643 S Bradley Rd Seal
Santa Maria CA 93454 Quote: 3363509306
Expires: 03/07/25
8 Toyota Santa Maria #524110R070 $ 183.94
1643 S Bradley Rd Lower panel XLE, Limited
Santa Maria CA 93454 Quote: 3425754695
Expires: 03/07/25
9 Toyota Santa Maria #527110R050B2 $ 166.95
1643 S Bradley Rd Lower molding Japan built XLE, Limited Santa Maria CA 93454 Quote: 3424356432
Expires: 03/07/25
10 Toyota Santa Maria #521140R090 $ 35.16
1643 S Bradley Rd License mount w/o SE
Santa Maria CA 93454 Quote: 3423160298
Expires: 03/07/25
11 Toyota Santa Maria #532850R080 $ 15.79
1643 S Bradley Rd RT Tow eye cap w/o SE
Santa Maria CA 93454 Quote: 3423269120
Expires: 03/07/25
12 Toyota Santa Maria #532860R080 $ 15.42
1643 S Bradley Rd LT Tow eye cap w/o SE
Santa Maria CA 93454 Quote: 3424356770
Expires: 03/07/25
13 Toyota Santa Maria #526140R070 $ 57.90
1643 S Bradley Rd Absorber Japan built
Santa Maria CA 93454 Quote: 3425755040
Expires: 03/07/25
14 Toyota Santa Maria #5202142150 $ 214.94
1643 S Bradley Rd Impact bar Japan built
Santa Maria CA 93454 Quote: 3425953711
Expires: 03/07/25
2/6/2025 11:20:23 AM 441521 Page 7

Preliminary Estimate
RO Number: 2700
2016 TOYO RAV4 Hybrid XLE AWD 4D UTV 4-2.5L Hybrid Sequential MPI 15 Toyota Santa Maria #525350R080 $ 67.97
1643 S Bradley Rd RT Side retainer
Santa Maria CA 93454 Quote: 3425953794
Expires: 03/07/25
16 Toyota Santa Maria #525360R060 $ 68.73
1643 S Bradley Rd LT Side retainer
Santa Maria CA 93454 Quote: 3426552194
Expires: 03/07/25
21 Toyota Santa Maria #531010R120 $ 205.96
1643 S Bradley Rd Grille w/strip Japan built
Santa Maria CA 93454 Quote: 3425457915
Expires: 03/07/25
24 Toyota Santa Maria #531120R060 $ 43.72
1643 S Bradley Rd Center grille slots, w/o pre crash Japan built Santa Maria CA 93454 Quote: 3425555083
Expires: 03/07/25
25 Toyota Santa Maria #531130R060 $ 86.17
1643 S Bradley Rd Lower grille slots Japan built
Santa Maria CA 93454 Quote: 3361843645
Expires: 03/07/25
27 Toyota Santa Maria #8113042640 $ 327.63
1643 S Bradley Rd RT Headlamp
Santa Maria CA 93454 Quote: 3427052329
Expires: 03/07/25
29 Toyota Santa Maria #8117042640 $ 324.12
1643 S Bradley Rd LT Headlamp
Santa Maria CA 93454 Quote: 3422466539
Expires: 03/07/25
35 Toyota Santa Maria #5320542110 $ 500.85
1643 S Bradley Rd Radiator support
Santa Maria CA 93454 Quote: 3426753089
Expires: 03/07/25
38 Toyota Santa Maria #166810V040 $ 79.64
1643 S Bradley Rd Sight shield
Santa Maria CA 93454 Quote: 3422466648
Expires: 03/07/25
41 Toyota Santa Maria #532020R030 $ 65.84
1643 S Bradley Rd RT Support bracket
Santa Maria CA 93454 Quote: 3424658989
2/6/2025 11:20:23 AM 441521 Page 8

Preliminary Estimate
RO Number: 2700
2016 TOYO RAV4 Hybrid XLE AWD 4D UTV 4-2.5L Hybrid Sequential MPI Expires: 03/07/25
46 Keystone, Inc #RAD13592 $ 216.45
2115 SOUTH UNION AVENUE Non OEM Radiator assy
BAKERSFIELD CA 93307 Quote: 2851479636
(800) 832-8733 Expires: 03/24/25
2/6/2025 11:20:23 AM 441521 Page 9

Enhanced Certified Collision Center
3577 S Higuera St, San Luis Obispo, CA 93401
Phone: (805) 549-0841
Image Report
Owner: City Of SLO Insurance: Estimator: Jordyn Zimmermann Vehicle Out:

RO Number: 2700 Claim Number:

Year: 2016 Color: License Plate: Production Date:

Make: TOYO Body Style: 4D UTV State: CA Mileage In:

Model: RAV4 Hybrid XLE ... Engine: 4-2.5L Hybrid Se... VIN: JTMRJREV7GD051429 Condition:
1/13/2025
Comments:
1/13/2025
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2/6/2025 11:20:04 AM Page 1

Enhanced Certified Collision Center
3577 S Higuera St, San Luis Obispo, CA 93401
Phone: (805) 549-0841
Image Report
Owner: City Of SLO Insurance: Estimator: Jordyn Zimmermann Vehicle Out:

RO Number: 2700 Claim Number:

Year: 2016 Color: License Plate: Production Date:

Make: TOYO Body Style: 4D UTV State: CA Mileage In:

Model: RAV4 Hybrid XLE ... Engine: 4-2.5L Hybrid Se... VIN: JTMRJREV7GD051429 Condition:
1/13/2025
Comments:
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Enhanced Certified Collision Center
3577 S Higuera St, San Luis Obispo, CA 93401
Phone: (805) 549-0841
Image Report
Owner: City Of SLO Insurance: Estimator: Jordyn Zimmermann Vehicle Out:

RO Number: 2700 Claim Number:

Year: 2016 Color: License Plate: Production Date:

Make: TOYO Body Style: 4D UTV State: CA Mileage In:

Model: RAV4 Hybrid XLE ... Engine: 4-2.5L Hybrid Se... VIN: JTMRJREV7GD051429 Condition:
1/13/2025
Comments:
1/13/2025
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2/6/2025 11:20:04 AM Page 3

Enhanced Certified Collision Center
3577 S Higuera St, San Luis Obispo, CA 93401
Phone: (805) 549-0841
Image Report
Owner: City Of SLO Insurance: Estimator: Jordyn Zimmermann Vehicle Out:

RO Number: 2700 Claim Number:

Year: 2016 Color: License Plate: Production Date:

Make: TOYO Body Style: 4D UTV State: CA Mileage In:

Model: RAV4 Hybrid XLE ... Engine: 4-2.5L Hybrid Se... VIN: JTMRJREV7GD051429 Condition:
1/13/2025
Comments:
1/13/2025
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1/13/2025
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1/13/2025
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1/13/2025
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2/6/2025 11:20:04 AM Page 4

Enhanced Certified Collision Center
3577 S Higuera St, San Luis Obispo, CA 93401
Phone: (805) 549-0841
Image Report
Owner: City Of SLO Insurance: Estimator: Jordyn Zimmermann Vehicle Out:

RO Number: 2700 Claim Number:

Year: 2016 Color: License Plate: Production Date:

Make: TOYO Body Style: 4D UTV State: CA Mileage In:

Model: RAV4 Hybrid XLE ... Engine: 4-2.5L Hybrid Se... VIN: JTMRJREV7GD051429 Condition:
1/13/2025
Comments:
1/13/2025
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1/13/2025
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1/13/2025
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1/13/2025
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2/6/2025 11:20:04 AM Page 5

Enhanced Certified Collision Center
3577 S Higuera St, San Luis Obispo, CA 93401
Phone: (805) 549-0841
Image Report
Owner: City Of SLO Insurance: Estimator: Jordyn Zimmermann Vehicle Out:

RO Number: 2700 Claim Number:

Year: 2016 Color: License Plate: Production Date:

Make: TOYO Body Style: 4D UTV State: CA Mileage In:

Model: RAV4 Hybrid XLE ... Engine: 4-2.5L Hybrid Se... VIN: JTMRJREV7GD051429 Condition:
1/13/2025
Comments:
1/13/2025
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1/13/2025
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1/13/2025
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1/13/2025
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2/6/2025 11:20:04 AM Page 6

Enhanced Certified Collision Center
3577 S Higuera St, San Luis Obispo, CA 93401
Phone: (805) 549-0841
Image Report
Owner: City Of SLO Insurance: Estimator: Jordyn Zimmermann Vehicle Out:

RO Number: 2700 Claim Number:

Year: 2016 Color: License Plate: Production Date:

Make: TOYO Body Style: 4D UTV State: CA Mileage In:

Model: RAV4 Hybrid XLE ... Engine: 4-2.5L Hybrid Se... VIN: JTMRJREV7GD051429 Condition:
1/13/2025
Comments:
1/13/2025
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2/6/2025 11:20:04 AM Page 7

Enhanced Certified Collision Center
3577 S Higuera St, San Luis Obispo, CA 93401
Phone: (805) 549-0841
Image Report
Owner: City Of SLO Insurance: Estimator: Jordyn Zimmermann Vehicle Out:

RO Number: 2700 Claim Number:

Year: 2016 Color: License Plate: Production Date:

Make: TOYO Body Style: 4D UTV State: CA Mileage In:

Model: RAV4 Hybrid XLE ... Engine: 4-2.5L Hybrid Se... VIN: JTMRJREV7GD051429 Condition:
2/6/2025
Comments:
2/6/2025
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2/6/2025
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2/6/2025
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2/6/2025 11:20:04 AM Page 8

Enhanced Certified Collision Center
3577 S Higuera St, San Luis Obispo, CA 93401
Phone: (805) 549-0841
Image Report
Owner: City Of SLO Insurance: Estimator: Jordyn Zimmermann Vehicle Out:

RO Number: 2700 Claim Number:

Year: 2016 Color: License Plate: Production Date:

Make: TOYO Body Style: 4D UTV State: CA Mileage In:

Model: RAV4 Hybrid XLE ... Engine: 4-2.5L Hybrid Se... VIN: JTMRJREV7GD051429 Condition:
2/6/2025
Comments:
2/6/2025
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2/6/2025
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2/6/2025
Comments:
2/6/2025 E01
Comments:
2/6/2025 E01
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Enhanced Certified Collision Center
3577 S Higuera St, San Luis Obispo, CA 93401
Phone: (805) 549-0841
Image Report
Owner: City Of SLO Insurance: Estimator: Jordyn Zimmermann Vehicle Out:

RO Number: 2700 Claim Number:

Year: 2016 Color: License Plate: Production Date:

Make: TOYO Body Style: 4D UTV State: CA Mileage In:

Model: RAV4 Hybrid XLE ... Engine: 4-2.5L Hybrid Se... VIN: JTMRJREV7GD051429 Condition:
2/6/2025 E01
Comments:
2/6/2025 E01
Comments:
2/6/2025 E01
Comments:
2/6/2025 11:20:04 AM Page 10

City of San Luis Obispo, Council Memorandum
City of San Luis Obispo
Council Agenda Correspondence
DATE: June 3, 2025
TO: Mayor and Council
FROM: Timmi Tway, Community Development Director
Prepared By: Gabriel Munoz-Morris, Supervising Civil Engineer John Mezzapesa, Code Enforcement Supervisor
VIA: Whitney McDonald, City Manager
SUBJECT: ITEM 5h – FINAL ACCEPTANCE OF PUBLIC IMPROVEMENTS FOR TRACT 2428 PHASE 3 – A RESIDENTIAL SUBDIVISION AT 3000 CALLE MALVA
Staff received correspondence from community members regarding parking on private drive lanes and enforcement of HOA regulations in the subdivision. The questions/comments are below in bold with staff’s response shown in italics:
1) I am a homeowner in Toscano and writing in regarding the agenda item of FINAL ACCEPTANCE OF PUBLIC IMPROVEMENTS FOR TRACT 2428 PHASE 3 – A RESIDENTIAL SUBDIVISION AT 3000 CALLE MALVA
According to section D “Code Enforcement Compliance and HOA enforcement”, I have had an ongoing issue with the area in front of my home illegally declared a parking spot by the HOA and violating the Tract map 2428. This has been happening since the beginning of 2025 when the HOA wrote new parking rules. On May 13th 2025, John Mezzapesa from the City of SLO wrote me and stated that the City had reviewed this and there was no parking in front of my home 3061 Cortuna Dr. I am asking the City Council to please enforce this code enforcement compliance and ask the HOA to immediately change the parking rules in accordance with the Code Enforcement findings.

As a homeowner in San Luis Obispo, I hope the City Council can see that passing this acceptance is directly related to the HOA enforcing all city codes and having the rules of the HOA be legal and abiding to the Tract Map 2428 Phase 3 acceptance.

ITEM 5.h – FINAL ACCEPTANCE OF PUBLIC IMPROVEMENTS FOR TRACT 2428 PHASE 3 – A RESIDENTIAL SUBDIVISION AT 3000 CALLE MALVA Page 2
As discussed in the staff report and attachments, the issue of parking within the Toscano neighborhood is an HOA enforcement/Code Compliance issue that is unrelated from the action by Council on this item. Acceptance of the improvements by Council tonight does not impact the HOA’s responsibility to adhere to the development’s conditions of approval or their CC&Rs. Acceptance of the improvements by the Council also does not limit or impact the City’s ability to enforce municipal code requirements, CC&R requirements, or project-specific conditions of approval. Code Compliance staff met with HOA board members on May 20, 2025 at the project site to discuss parking and other ongoing enforcement matters. Code Compliance will be sending a communication to the HOA that outlines their obligation to enforce regulations and also ensures that their regulations (such as where parking can occur) are compliant with City regulations and project approvals.

The Code Enforcement Division will continue to work with the HOA and residents to ensure that all provisions and rules within the CC&R’s are consistent with the conditions set forth via city approval of the planned development. 2) I believe the adoption of this resolution is long overdue. That said, I would like to comment specifically on Items 21, 22, and 23 of the “Tract 2428-3 Table of Resident Concerns — Responsible Party — Responses.”
It is my understanding that the HOA Board is currently in violation of certain municipal codes associated with the conditions of map approval, particularly with respect to parking. I also understand that Code Enforcement is working with the Board to bring these matters into compliance. In my opinion, the existence of a Homeowners Association does not relieve Code Enforcement of its responsibility to enforce municipal codes—even if some of these issues were missed in previous planning stages.

I want the City Council to be fully aware of these ongoing issues and to maintain active oversight by working with City staff to ensure these deficiencies are brought into compliance with both the conditions of map approval and applicable municipal codes. I feel strongly that this tract—like any other within the City—must be held to the same standards of municipal code compliance. The HOA Board’s unwillingness to enforce its CC&Rs, even when they mirror municipal requirements, should not be a barrier to code enforcement, especially when those provisions were originally mandated as part of the map approval process.

Thank you for your attention to this matter.

ITEM 5.h – FINAL ACCEPTANCE OF PUBLIC IMPROVEMENTS FOR TRACT 2428 PHASE 3 – A RESIDENTIAL SUBDIVISION AT 3000 CALLE MALVA Page 3
As discussed in the staff report and attachments and answer to the question provided above, the issue of parking within the Toscano neighborhood is an HOA enforcement/Code Compliance issue that is unrelated from the action by Council on this item. Acceptance of the improvements by Council tonight does not impact the HOA’s responsibility to adhere to the development’s conditions of approval or their CC&Rs. Acceptance of the improvements by the Council also does not limit or impact the City’s ability to enforce municipal code requirements, CC&R requirements, or project-specific conditions of approval. Code Compliance staff met with HOA board members on 5/20/2025 at the project site to discuss parking and other ongoing enforcement matters. Code Compliance will be sending a communication to the HOA that outlines their obligation to enforce regulations and also ensures that their regulations (such as where parking can occur) are compliant with City regulations and project approvals.

Regarding enforcement authority and responsibility, the HOA board members have a fiduciary duty and a legal obligation to act in good faith and in the best interests of the HOA and its members. This encompasses the duty to act within the scope of authority. While the board cannot make decisions or take actions that are beyond their authority, board members must act within the powers granted to them by the association's governing documents and relevant laws. This authority extends to the enforcement of all provisions and rules within the CC&R’s consistent with the conditions set forth via city approval of the planned development. Several provisions within the CC&R’s share common goals with city ordinances. While the city reserves the right to enforce these overlapping regulations, the governing documents of the HOA require that the board utilize the enforcement processes provided in the CC&R’s. City staff will continue to work with the HOA board members to clarify roles and responsibilities regarding enforcement of several regulations with the goal of working together to manage identified violations.

Item 5h
Department: Community Development
Cost Center: 4003
For Agenda of: 6/3/2025
Placement: Consent
Estimated Time: N/A
FROM: Timmi Tway, Community Development Director
Prepared By: Gabriel Munoz-Morris, Supervising Civil Engineer SUBJECT: FINAL ACCEPTANCE OF PUBLIC IMPROVEMENTS FOR TRACT 2428 PHASE 3 – A RESIDENTIAL SUBDIVISION AT 3000 CALLE MALVA

RECOMMENDATION
Adopt a Draft Resolution entitled, “A Resolution of the City Council of the City of San Luis Obispo, California, Accepting the Public Improvements, Certifying Completion of the Private Improvements, and Authorizing Release of the Securities for Tract 2428-Phase 3 (3000 Calle Malva)” accepting the public improvements, certifying the private improvements, and authorizing the release of securities for Tract 2428-Phase 3. (Attachment A)

POLICY CONTEXT
The City Council accepts public improvements and certifies completion of private improvements in accordance with the Subdivision Map Act and the City’s Subdivision Regulations.

DISCUSSION
Background
Tract 2428, located at 3000 Calle Malva as shown on the attached Vicinity Map (Attachment B, Vicinity Map), includes a total of 172 lots and is generally known as Toscano consisting of 161 single family lots, five lots for up to 26 units of affordable housing, five lots for riparian open space, and one 71-acre hillside lot for permanent open space. This tract abuts South Hills Open Space directly to the north and is located north of the neighborhood that is generally known as Serra Meadows.

Tract 2428 is divided into three phases. Originally, Phase 3 included 80 lots. At the time that Phase 2 construction was ongoing, the Developer and City staff agreed to delay the construction of one open space lot (Lot 85) to coincide with construction of Phase 3 due to pedestrian safety concerns during construction of Phase 3. Ultimately, construction of Phase 3 included 81 lots:

Item 5h

1. 78 single-family lots

2. Completion of Phase 3 improvements on two riparian open space lots (Lots 82 and 83)

3. Construction of improvements on one riparian open space lot (Lot 85) The improvements for Phase 1 were accepted by City Council on March 3, 2020, by Resolution No. 11089 (2020 Series). The improvements for Phase 2 were accepted by City Council on January 18, 2022, by Resolution No. 11302 (2022 Series). Phase 3 is the final phase of the development.

Acceptance of Phase 3 Improvements
Work for Phase 3 was deemed complete by City inspection staff on February 22, 2024.

In general, the improvements consist of street construction, street widening, medians, curb, gutter, sidewalks, streetlights, water main and sewer main extensions, fire hydrants, reclaimed water main, storm drain improvements, and landscaping. Completion of the improvements began the process of finishing all record drawing preparation and submittal by the developer to the City so that the improvements could be formally accepted. A map depicting the phasing plan and Phase 3 improvements is included as Attachment C (note that Lot 85, as shown on Attachment C was deferred to be constructed in Phase 3 for pedestrian safety concerns during construction of Phase 3).

Staff prepared a Resolution for Council acceptance of the improvements for Phase 3 on October 15, 2024. At that meeting, due to concerns from residents of the neighborhood regarding the status of certain improvements, the Council continued the item and asked staff to return with an update and response to each concern expressed by the constituents that were present.

Concerns from Constituents Regarding Acceptance
Per Council direction, staff has worked with concerned residents and HOA board members to compile a list of all concerns (included as Attachment D). Staff has discussed these concerns with residents and the developer and has provided the responses in Attachment D.

Staff compiled all concerns received from the community and categorized them into four categories: (A) Public Improvements (2 concerns), (B) Private Open Space/Private Drive Lanes/Private Drainage (23 concerns), (C) Private Property (6 Concerns), and (D) Code Compliance/Enforcement (2 concerns).

The majority of the concerns received were focused on private open spaces, drive lanes, and drainage channels, specifically Lot 85. These areas, while accessible to the public, are not areas that are ultimately maintained by the City, but are ultimately maintained by the HOA. Staff worked with HOA board members to provide answers to some concerns and worked with the developer directly to address issues of tree replacements. The main focus of the concerns about Lot 85 centered on the current condition of landscaping and trees. Lot 85 originally included a more robust planting schedule in the original project plans. This planting plan was reduced for environmental reasons in response to failures

Item 5h
that occurred in Lots 82 and 83 during wet winters. Those failures included heavy erosion of soil and landscaping in lower portions of Lots 82 and 83 due to large volumes of water moving rapidly through the drainage areas. The areas were repaired by the developer and the landscaping was restored after the developer’s design professionals consulted with the Regional Water Quality Control Board about the damaged areas and proposed solutions. The drainage channel in Lot 85 serves primarily to convey flow through the project site and there was a concern that the plants, as originally proposed, would fail or erode during larger rain events in the future, similar to what occurred in Lots 82 and 83.

As a result, a more naturally occurring landscape plan was implemented in Lot 85 with limited landscaping and trees and more naturally occurring grasses. Other minor changes in landscaping in Lots 82 and 83 were also pursued during construction of Phase 3 to mitigate plant failure and erosion concerns. Ultimately, landscaping in the Phase 3 areas of Lots 82 and 83 largely matched the original planting plans at the time that Public Works inspection deemed the Phase 3 improvements complete on February 22, 2024. Some of the concerns raised regarding private open spaces/drive lanes/drainage are related to areas in previously accepted by the City in Phases 1 and 2. Those concerns have been noted in the table in Attachment D.

The concerns regarding public improvements centered around small cracks in sidewalks and the condition of landscaping in one planter. Per Public Works review of the Phase 3 improvement areas, no sidewalk sections require immediate repair and will be addressed after acceptance on a case-by-case basis by the City in the future. The developer previously completed several sidewalk repairs which required immediate attention prior to Public Works Inspection deeming the improvements complete on February 22, 2024.

Staff was unable to verify the claim about dead landscaping in the one planter across the street from 3065 Arezzo, however the developer maintains that the landscaping was in place, and the improvement was signed off by Public Works in February 2024, indicating that the plants were in place at the time of sign-off.

Several concerns about issues on private properties were forwarded to the Building and Safety Division to discuss with individual property owners as they were outside the scope of this action. These concerns generally related to drainage pipes and waterlines on private lots, bioswale maintenance, and the ability to obtain plans for homes. Concerns about bioswale maintenance were forwarded to Code Compliance staff and discussed with HOA board members as there have been previous communications from Code Compliance to the HOA clarifying maintenance responsibilities for bioswales in the project area. Code Compliance staff and the HOA are currently addressing the maintenance of privately maintained bioswales separately.

Lastly, concerns about enforcement issues were deemed outside the scope of this action by the Council. However, staff provided information to residents and the HOA board about possible enforcement strategies going forward (for example, concerns about parking areas or enforcement by the HOA for property owners to maintain their lots appropriately).

Ultimately, the developer completed various items that staff requested based on the list of concerns received. This includes: submittal and recordation of a certificate of

Item 5h
Correction for the Tract Map, replanting trees in the upper portion of Lot 85, and removal of construction debris from two drain inlets in Phase 3 areas (more details for each of these items can be found in Attachment D). One of the concerns that was raised by several members of the public was regarding the adequacy and health of plant material in Lot 85. Staff had conversations with the developer about this plant material. The issue centers around a request that approximately 1-10 plants and up to two trees be replanted.

The developer continues to assert that because the landscaping in the lower portion of Lot 85 was signed off by Public Works in February 2024, they are not required to replace landscaping in this area. Ultimately, the Public Work Inspection team did sign off on the improvements in February 2024, and, while the City lacks photos specifically proving that specific plants were installed by the developer on certain dates, the City does not have the ability to compel the developer to address this final landscaping concern in Lot 85 as a condition of the City’s acceptance of the Phase 3 improvements. Maintenance of Lot 85 is the responsibility of the HOA and the HOA board has indicated an interest in moving forward with their own landscape maintenance firm to maintain the common private spaces and City staff can provide a planting plan for the lower portion of Lot 85 to the HOA if desired.

In summary, out of the concerns outlined in detail in Attachment D, those that are relevant to the Council Action to accept public improvements are the concern over sidewalk sections and the landscaping in one planter in the public Right-of-Way. It is the determination of the Community Development Department and Public Works Department that these concerns have been adequately addressed.

Previous Council or Advisory Body Action
The tentative subdivision map for Tract 2428 was approved by City Council on July 3, 2007, by Resolution No. 9917 (2007 Series).

Revised conditions that superseded the previous tentative map conditions were approved by Council on April 15, 2014, by Resolution No. 10514 (2014 Series).

The final map for Phase 1 was approved by City Council on August 16, 2016, by Resolution No. 10737 (2016 Series).

The final map for Phase 2 was approved by City Council on August 15, 2017, by Resolution No. 10825 (2017 Series).

The final map for Phase 3 was approved by City Council on January 8, 2019, by Resolution No. 10971 (2019 Series).

The improvements for Phase 1 were accepted by City Council on March 3, 2020, by Resolution No. 11089 (2020 Series).

The improvements for Phase 2 were accepted by City Council on January 18, 2022, by Resolution No. 11302 (2022 Series).

Item 5h
Staff prepared a Resolution for Council acceptance of the improvements for Phase 3 on October 15, 2024. Council continued the item at that time due to concerns from residents.

Public Engagement
Public engagement was completed with the approval of the Tentative Map and the development of the Margarita Area Specific Plan. In addition, due to the concerns raised by residents during the October 15, 2024 Council meeting when this item was first considered, staff engaged directly with residents to understand each concern, compile a list of concerns, and provide responses for each concern.

Staff also performed site walks with residents and HOA board members on January 28, 2025, and February 10, 2025. In addition, staff also performed a site walk on February 7, 2025, to review current sidewalk conditions and paver pathway conditions for Phase 3 areas. Lastly, staff attended the February 24, 2025, HOA meeting to provide an update to concerned residents about the responses to the list of complaints ahead of agendizing the item for Council consideration again. The City’s Arborist visited the site to evaluate the condition of trees in Lot 85 on February 19, 2025, in response to a complaint that the trees were dead. One tree in the upper portion of Lot 85 was confirmed to be in severe decline. Staff performed a field inspection on March 31, 2025 to confirm the replacement of that tree. Lastly, staff has maintained constant communication with the HOA board throughout the last couple of months regarding the status of the various concerns that were raised, the ongoing discussions with the developer, and the timeline for bringing this item back to the Council for action.

CONCURRENCE
The Public Works Director and Utilities Director concurred with the initial recommendation to accept the public improvements and certify the completion of the private improvements on October 15, 2024. After reviewing the list of complaints, and addressing them as described in Attachment C, both Directors continue to concur with the recommended action.

ENVIRONMENTAL REVIEW
The Margarita Area Specific Plan and its Final Environmental Impact Report were approved and certified on October 12, 2004. Tract 2428 was analyzed in a project specific Initial Study/Mitigated Negative Declaration and was adopted on May 19, 2015.

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

Item 5h
Fiscal Analysis:

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

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

However, the Council action of accepting these improvements in itself does not have an associated budget increase.

ALTERNATIVES

1. The City Council may recommend that the public improvements not be accepted and the private improvements not be certified. Ultimately, acceptance of these improvements is required in accordance with the Margarita Area Specific Plan (MASP), Tentative Map approvals, Public Facility Financing Plan, Department of Real Estate process assumptions, and Homeowners Association CC&R’s. As discussed in this report, the improvements have been completed in compliance with the regulatory documents.

2. The City Council may recommend that the item be continued. Ultimately, the developer has completed the public improvements, and the Public Works Department has deemed them complete. The Subdivision Map Act also requires that the City accept the improvements if they are deemed complete and staff has not found a basis for rejecting the improvements.

ATTACHMENTS
A - Draft resolution accepting the public improvements, certifying the private improvements, and authorizing release of the securities for Tract 2428-Phase 3 B - Tract 2428 Vicinity Map
C - Tract 2428 Phasing Plan
D - Constituent Concerns and Responses

R _____
RESOLUTION NO. _____ (2025 SERIES)

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

SAN LUIS OBISPO, CALIFORNIA, ACCEPTING THE PUBLIC

IMPROVEMENTS, CERTIFYING COMPLETION OF THE PRIVATE

IMPROVEMENTS, AND AUTHORIZING RELEASE OF THE SECURITIES FOR TRACT 2428-PHASE 3 (3000 CALLE MALVA)
WHEREAS, the City Council made certain findings concerning Tract 2428, as prescribed in Resolution No. 10514 (2014 Series); and
WHEREAS, the City Council approved the final map Phase 3 for Tract 2428 per Resolution No. 10971 (2019 Series); and
WHEREAS, the subdivider has satisfactorily completed the required Phase 3 public improvements in accordance with City standards, specifications, and the subdivision agreement; and has requested that the City accept of these public improvements for maintenance and operation by the City; and WHEREAS, the subdivider has satisfactorily completed the Phase 3 private improvements in accordance with City standards, specifications and the approved plans, and has requested that the City certify completion of these private improvements; and WHEREAS, the subdivider has previously submitted the appropriate securities to guarantee the construction of the Phase 3 subdivision improvements as shown on the approved plans and those securities remain on file.

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

SECTION 1. The City Council hereby accepts the public improvements for Phase 3.

SECTION 2. The City Council certifies completion of the Phase 3 private improvements.

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

1. Record drawings for the completed improvements.

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

Resolution No. (2025 Series) Page 2
R _____
SECTION 5. The security guaranteeing the workmanship and materials may be released by the Director of Public Works upon the successful completion of the 12-month warranty time period from the date of acceptance of the improvements.

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

AYES:

NOES:

ABSENT:

The foregoing resolution was adopted this ______ day of _______________ 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

Lot 85 moved to Phase 3
due to pedestrian safety
concerns during
construction

No. Complaint/Issue Responsible Party Notes
1 There are at least 10 sections of sidewalk with cracks in them.

N/A
All sidewalk areas were inspected and deemed complete at time of construction. Some repairs were made by the developer in areas where the inspector deemed that one was needed prior to deeming complete. In addition, staff performed various site visits in Winter 2025. Per the Public Works Department, no sidewalk sections require immediate repair and will be addressed after acceptance of the improvements on a case-by-case basis, as required. 2 Landscpaing in the planter across from 3065 Arezzo died before irrigation lines were installed and no re-planting has ever taken place. HOA/Property Owner The landscaping of Phase 3 areas was deemed complete on 2/22/2024 by inspection staff. At that time, no dead landscaping was observed in the parkway area mentioned in this concern. If the HOA or the property owner whose house fronts the parkway in question would like to modify landscaping in this area they can do so per the requirements of the CC&Rs. 1 There is erosion in the common Lot 85 N/A
The area that is eroded is outside of the project limits in a neighboring tract (Tract 2353 - Serra Meadows). City staff will work with the appropriate HOA to address. 2 There are areas where the slopes are slippery N/A The walking paths in the private open spaces are built per plan. 3 Drainage from Lot 172 has been concentrated near affordable housing N/A Lot 172 was accepted with Phase 1. Lot 172, the open space above the developed areas, drained through what is now the project site through three natural drainage channels prior to development. Those areas are now known as Lots 82, 83, and 85. Those lots include drainage channels to convey flow from Lot 172 through the development, per the approved plans. The drainage channels in lots 82 and 83 had additional rock check dams installed per a concept submited to the Water Board to dissipate flow through the drainage channels. Since instalaltion of these dissipation improvements, no drainage issues have been observed in Lots 82 and 83. 4 There is construction debris in drain inlets located on private property that should be removed. Specifically, there are concrete blocks, plasting sheeting, and pieces of construction lumber in the drain inlet at the end of the private drive lane shared by Lots 120 and 121. Developer City inspeciton staff was asked to inspect all drain inlets at the end of private drive lanes in Phase 3. This inspection determined that the drain inlet between lots 120 and 121 did have construction debris in it and that one other drain inlet grate needed a fabric cover removed from the inlet grate which was left over from construction. The developer was asked to clean out the construction debris from the two drain inlets. This work was completed on March 31, 2025 5 Rocks placed in drainage area to dissipate flow are safety hazard for kids playing N/A These rock check dams were installed per direction from the Water Board. The rocks were installed to dissipate flow in a drainage area and prevent erosion. The improvements were done by the Developer's landscape contractor under the supervision of the contracted environmental professional per the concept submitted to the Water Board. These areas are not meant as recreational. If the HOA wishes to pursue additional improvements to these areas, the HOA can hire an environmental consultant to coordinate any proposed improvements with the Water Board and construct these additional improvements. 6 There should be signage installed for child safety in the open spaces regarding hazards of playing on rocks. HOA This concern is unrelated to the acceptance of the improvements for Phase 3. The HOA can elect to install advisory signage if desired. 7 There has been a lot of erosion in the private open space next to 3078 Lucca Lane (Lot 82) over the last several years. HOA The area of concern in question is not part of Phase 3 but does receive drainage from Phase 3 areas. The private open spaces/drainage areas known as Lot 82 and Lot 83 were modified to dissipate drainage flow as required by the Water Board. The improvements were done by the Developer's landscape contractor under the supervision of the contracted environmental professional per the concept submitted to the Water Board. If the HOA wishes to pursue additional improvements to these areas, the HOA can elect to hire an environmental consultant to coordinate any proposed improvements with the Water Board and construct these additional improvements.

Tract 2428-3 Table of Resident Concerns-Responsible Party-Responses (A) Public Improvements(B) Private Open Space/Private Drive Lanes/Private Drainage

8 There are missing plants in the Phase 3 area of Lot 82 (heading uphill from 354 Tresana towards Arezzo on the left of the walking path). N/A or HOA The area between the walking path and the retaining wall originally showed landscaping to be installed. The construction of the retaining wall footing, which would be under the thin landscaping strip in question, left a landscpaing area that would likely not provide for proper growth of the proposed landscaping. Due to this, City staff directed the developer to modify the landscaping for this area to gravel (bark was not used due to concerns over erosion/wash out during rain events). The HOA can elect to install landscaping in this area but it is not recommended. 9 There are missing plants in the Phase 3 area of Lot 83. N/A The landscaping of Phase 3 areas of Lot 83 was deemed complete on 2/22/2024 by City inspection staff. During field visits to the project site by City staff during Winter 2025 no major deviations in plantings were observed. If the HOA wishes to add additional plants to Lot 83 it can chose to do so. 10 Recycled waterline for Lot 85 is missing. It was conditioned for the project. N/A Recycled water was conditioned for the development "where feasible". During plan development, the Utilities Department determined that it was not feasible to provide recycled water to Lot 85. As a result, the final project documents did not include construction of a recycled water line for irrigation of Lot 85. Staff has verified that what is installed is consistent with project plans. 11 Some paver pathways are sliding/failing. N/A
Staff inspected the paver pathways in private open space areas at time of construction and deemed them complete. Staff also performed several site visits in Winter 2025. One area of paver separation was discovered in the Phase 3 area of Lot 83 but the seperation is within acceptable tollerances to meet ADA guidelines and appears to have been caused by gopher activity. Staff also confirmed with HOA board members that prior localized repairs to the paver areas were performed by the Developer previously. It is recommended that the HOA monitor the 6-10 pavers in question at the one location where minor seperation is present and add filler between pavers as needed. 12 There is a water (irrigation) leak HOA
This complaint did not specify the location of the leak. If the leak is found in Phase 1 or 2 open space areas, the leak would be the responsibility of the HOA to repair. If the leak is on private property, the leak would be the responsibility of the home owner. Staff did not observe a leak during site visits in Winter 2025. 13 Lot 85 was not completely planted. There is concern that up to 50% of the planted landscaping has died. Developer Per Public Works inspection, the landscaping was deemed complete on 2/22/2024. The landscaping plan for Lot 85 was modified due to concerns for plant/tree viability in the drainage channel after similar failures in Lots 82 and 83 during wet winters. As a result, the lower portion of Lot 85 was modified to keep naturally occuring landscaping in place. The upper portion of Lot 85 was landscaped. City staff worked with the developer to replace dead plants and trees in need of replacement in the upper area of Lot 85. This work was completed on March 31, 2025. 14 There are trees that appear dead in the Phase 3 area of Lot 85 which should be evaluated. Developer The City's Arborist performed a site visit on 2/19/2025 to evaluate the trees in Lot 85. It was determined that most trees in Lot 85 were wintering and would recover in the spring but some trees needed to be replaced due to declining conditions. The Developer was asked to replace these trees and replaced two trees in the upper portion of Lot 85 on March 31, 2025. 15 Landscape plans require a minimum of 3-inch of bark in all planting areas - this applies to Lot 85 HOA Landscaping of Lot 85 was deemed complete by inspectors on 2/22/2024 including bark in areas where erosion of bark was not a concern (upper portion of Lot 85). Staff has conducted site visits to confirm that bark is still present in Lot 85. The bark that is present matches the landscaping plan. If additional bark is desired after certification of completion by the Council, the owner of the lot (the HOA) can elect to install as part of ongoing maintenance but bark is not recommended in the lower portion of Lot 85 due to erosion/wash out concerns of the bark during rain events. 16 Many of the emitters for drip irrigation lines are without lines directed to the plants HOA Per Public Works inspection, the landscaping was signed off as complete on 2/22/2024.

17 The Developer delayed construction of Lot 85 and has neglected maintenance N/A The Developer was approved to construct Lot 85 improvements (originally part of Phase 2) in conjunction with construction of the Phase 3 work to avoid safety issues associated with having the multi-use path lead to a construction zone during construction of Phase 3. The Developer has paid for maintenance including weeding, debris cleaning, and gopher and roden remediation since the improvements were deemed complete by inspection staff on 2/22/2024. 18 Will Lot 85 become HOA responsibility to maintain once the improvements are "accepted"? HOA Yes, certification that the private improvments in Lot 85 have been constructed will transfer maintenance responsibility of the improvements to the HOA. It is City staff's understanding that the HOA has been collecting dues for maintenance of this area already. 19 Lot 85 was mislabelled as Lot 72 on part of the recorded tract map. Developer This concern is unrelated to the acceptance of the improvements for Phase 3. A certificate of correction was prepared by the Developer and submitted to the City. It was recorded on March 12, 2025. 20 There should be fences on the sides of the multi-use paths near the top. There is concern of people on bikes going too fast and falling off the path into the drainage area. N/A or HOA The improvements are constructed per the approved plans. Per Section 3.1.13 (A) of City Standard Plan 1010, multi-use paths must have a 2-foot shoulder. The paths in the priavte open space lots meet this requirement. The HOA can elect to install additional fencing if desired. 21 There are no wheel stops for the parking stalls in the private drive lanes. There should be. N/A or HOA Per City Standard Plan 2260, wheel stops shall be installed at locations where wheeled vehicles may roll into pedestrian, structures, or hazardous areas. The parking spaces in the private drive lanes generally lead to landscaping, which does not meet this definition. Municipal Code Section 12.38.050 indicates that wheel stops are required when a parking stall leads to landscaping which is slightly different than the requriements of Engineering Standard 2260. Ultimately, wheel stops were not required on the approved project plans and the parking stalls on private drive lanes were built per the approved plans. Code Compliance has contacted the HOA about the wheel stop issue at the request of residents who live within the neighborhood. The HOA should work with property owners and Code Compliance to continue to address this issue seperately from the acceptance of Phase 3 improvements as the private drive lane parking stalls are built per plan. The City is also in the process of correcting this inconsistency in the requirements between Engineering Standard 2260 and Municipal Code Section 12.38.050 as part of the upcoming 2025 Engineering Standards Update. 22 The current fire lane signs do not meet City standards HOA The current signs were installed in coordination with the HOA board at the time. Fire lane signage is not required for any private drive lanes that the Fire department does not consider a fire lane. The Fire Department staff has confirmed that Tresana, Lucca, and Livorno are fire lanes due to hose pole lengths. Those three courts should have the signage at the entrances replaced with the correct signs and either additional red curbing throughout the fire lane or additional fire lane signage every 150-feet. For all other private courts, fire lane signage can be removed as the private lanes are not fire lanes and the HOA should work to erect the correct signage for "no parking" enforcement on these private drive lanes. 23 There is one Fire Lane/No Parking sign missing at the private drive lane entrance near 3044 Arezzo HOA A fire lane sign is not required for this private drive lane as it is not a fire lane per the Fire Department. The HOA has expressed interest in removing all fire lane signage that is not required. The HOA can work to replace this sign with an appropriate "no parking" sign to enforce parking restrictions on the private drive lane. 1 Houses were approved as solar ready but it has not been possible to obtain a copy of the approved architectural plans for the house which leads to additional cost for property owners when looking to install solar on their home. Home Owners This concern is unrelated to the acceptance of the improvements for Phase 3. This concern has been forwarded to the Building division to discuss with the property owner to assist them in obtaining the needed information to install solar panels on their home in an efficient way. 2 Some of the 4-inch drainage pipe on the plans was constructed with 3-inch drainage pipe. Home Owners This concern is unrelated to the acceptance of the improvements for Phase 3. This concern has been forwarded to the Building division to discuss with the property owner. (C) Private Property

3 Bioswale maintenance in front of 3086, 3011, 3013, 3017, and 3098 Arezzo is substandard. Home Owners/HOA Per the CC&Rs, some bioswales are HOA responsibility to maintain while others are home-owner responsibility to maintain. City Code Compliance has contacted home-owners to notify them of their responsibility to maintain the bioswale that fronts their property. HOA can work with property owners to address this issue. 4 Other bioswales in Phase 1 and 2 areas are worse. Home Owners/HOA This concern is unrelated to the acceptance of the improvements for Phase 3. The City Code Enforcement has contacted home-owners to notify them of their responsibility to maintain the bioswales. The HOA can and should work with property owners to educate property owners about maintenance best practices. 5 Onsite waterlines (irrigation) are not deep enough at 3077 Arezzo and other Phase 3 houses. Home Owners This concern is unrelated to the acceptance of the improvements for Phase 3. Home owners can chose to lower irrigation lines on their property if desired. The Community Development Department (Building division) contacted this property owner to discuss this issue and to provide suggestions as to how to protect the irrigation lines from damage and discuss concerns regarding construction of the lines. 6 Onsite waterlines (irrigation) are not deep enough at 3084 Arezzo and other Phase 3 houses. Home Owners This concern is unrelated to the acceptance of the improvements for Phase 3. Home owners can chose to lower irrigation lines on their property if desired. The Community Development Department (Building division) can also work with property owners to provide suggestions as to how to protect the irrigation lines from damage and discuss concerns regarding construction of the lines. 1 The no parking requirement on private drive lanes should be enforced. HOA The HOA should work to enforce no parking on private drive lanes per the requirements of the CC&Rs once the HOA installs the correct "no parking" signage on private drive lanes (per other answers in this document). 2 Some home owners are not doing their part. City should work with HOA to enforce what needs to be done. HOA This concern is unrelated to the acceptance of the improvements for Phase 3. HOA and City Code Compliance can work together, as appropriate, to enforce City codes and/or requirements of the CC&Rs. (D) Code Compliance/HOA Enforcement Issues

City of San Luis Obispo, Council Memorandum
City of San Luis Obispo
Council Agenda Correspondence
DATE: June 3, 2025
TO: Mayor and Council
FROM: Greg Avakian, Parks and Recreation Director
VIA: Whitney McDonald, City Manager
SUBJECT: ITEM 5i - AUTHORIZE COMMUNITY PARTNERSHIP AGREEMENT WITH SAN LUIS OBISPO MUSEUM OF ART FOR 2025-2027
Staff received the following questions regarding the new Community Partnership Agreement between the City and San Luis Obispo Museum of Art (SLOMA)for providing public art services in 2025-2027. The questions are below with staff’s response shown in italics:
1) Why is there a difference in the financial support from the City to SLOMA in year 1 (2025-2026) and year 2 (2026-2027) for the projects funds? Year 1 lists $110,000 from CIP-Public Art Private Sector Fund (LRM- Account No. 2000503) and Year 2 lists $210,000.

The Public Art Fund 2000503 is specific for purchase and installation costs associated with new public art. During the 2023-2025 Financial Plan and concurrent Community Partnership Agreement between the City and SLOMA, the City purchased a sculpture (“Shift” by artist Warren Hamrick) for the roundabout located within the San Luis Ranch development located at Froom Ranch Road and Heirloom Road. Due to a delay between the City and the developer, the installation was not able to be accommodated within the current financial plan and is scheduled to occur in Year 1 of the 2025-2027 Financial Plan. The City currently owns the sculpture and the proposed $110,000 listed funds for Year 1 are to support the installation of the sculpture, as well as the purchase and installation of a new sculpture at the Mission Plaza Lawn as outlined in the agreement. Year 2 funds of $210,000 reflects the funding to support a new sculpture to be designed, purchased, and installed at the new Righetti Community Park, and an additional new art project (sculpture, mural, etc.) to be identified by SLOMA and the City for installation in year 2 of the financial plan.

ITEM 5i. AUTHORIZE COMMUNITY PARTNERSHIP AGREEMENT WITH SAN LUIS OBISPO MUSEUM OF ART FOR 2025-2027 Page 2
2) There is a discrepancy within the draft community partnership agreement that contradicts the annual payment timeline to support SLOMA’s administrative responsibilities, where on page 2 (packet page 166) states in Section 2.1.a. that SLOMA will be paid on a “bi-annual basis” and on page 4 of the agreement (packet page 168) states in Section 4.A.vi. the CITY shall remit “quarterly payments” to SLOMA during the two (2) year term of this agreement.

Staff have reviewed and found that this is a mistake and the following corrections will be made in the Draft Agreement to correct the error. Section 2.1.a is the correct payment timeline. The City will pay SLOMA on a bi-annual basis ($50,000 each half year) for a total of $100,000 for each year of the agreement. Section 4.A.vi. will be corrected from quarterly to bi-annual to accurately reflect the terms of the agreement.

Item 5i
Department: Parks and Recreation
Cost Center: 9501
For Agenda of: 6/3/2025
Placement: Consent
Estimated Time: N/A
FROM: Greg Avakian, Parks & Recreation Director
Prepared By: Meghan Tolley, Recreation Manager
SUBJECT: AUTHORIZE COMMUNITY PARTNERSHIP AGREEMENT WITH SAN LUIS OBISPO MUSEUM OF ART FOR 2025-2027

RECOMMENDATION
Authorize the Mayor to execute a two-year Community Partnership Agreement with the San Luis Obispo Museum of Art for installation of several public art projects each year, in substantially the same form as Attachment A and as approved by the City Attorney.

POLICY CONTEXT
The recommended actions are in accordance with the City’s Major City Goal (MCG) of “Economic Resiliency, Cultural Vitality and Fiscal Sustainability.” The Arts and Cultural District concept (MCG Strategy 1.4) is also one of the hallmarks of the Downtown Concept Plan and in furtherance of the City’s long-standing Public Art Program. Specifically, the City will continue to work with community partners to ensure cultural vitality of the City and the City will continue to execute the Public Art Master Plan.

The Public Art Master Plan of 2016 identified “Explore Different Staffing and Community Partnership Models” as Goal 5, with Goal 5.2 recommending that staff “Explore community partnerships for shared resources and programming.”

DISCUSSION
Background
The City of San Luis Obispo enjoys a long-standing public / private partnership with the San Luis Obispo Museum of Art (SLOMA) that stretches back over 50 years. While the relationship and nature of the partnership has supported a wide variety of activities and initiatives in support of the visual arts, a core element has been the City’s lease of a portion of real property at the corner of Monterey Street and Broad Street tangent to Mission Plaza where the museum facility itself is located.

In 2021, the City expanded its partnership with SLOMA to include a Community Partnership Agreement (Attachment B) for the purpose of building capacity and expertise in the administration of the City’s Public Art program over the course of a two-year term. Identified projects included:

Item 5i
1) Downtown Public Art Installations, 2) Roundabout Public Art Installations, and 3) Neighborhood Greenway Installations and that Agreement expired on July 21, 2023.

Over the original two-year Community Partnership Agreement period, July 2021 – July 2023, SLOMA assisted with five installations: Maria Molteni’s Seven Sisters mural installed in November 2021, Anila Agha’s The Greys in Between sculpture installed at the Tank Farm Roundabout in October 2022, and three rotating sculptures on the Mission Plaza Lawn. Each of these installations enhanced the partnership between the City and SLOMA as well as increased community and visitor awareness to the museum and the City’s public art program. At the time of writing this report, the acceptance of a gift sculpture, location identification and installation process has been initiated.

On May 19, 2023, SLOMA provided a proposal to the City to continue the agreement for an annual fee of $100,000. This agreement (Attachment C) was approved by Council on July 11, 2023 for another two-year period, with identified enhancements for SLOMA to undertake to benefit the City’s Public Art Program and which included: 1) One Roundabout Art piece per year, 2) Rotating installation on the Mission Plaza lawn, and 3) Additional place making installation with all projects totaling up to $400,000 per year and with the Agreement set to expire on June 30, 2025. This Agreement also included modifications to 2021 Agreement to streamline the process.

During the current 2023-2025 two-year partnership agreement period, July 2023 to present (May 2025), SLOMA has met their commitments with three art installations: two temporary sculpture installations on the Mission Plaza lawn and the placemaking temporary art installation at Garden Street Alley. In addition, progress has continued towards the installation of a permanent installation of the sculpture “Shift” by local artist Warren Hamrick. The installation of this project remains on hold while the City and the property owner of the intended installation site finalize contractual obligations related to the San Luis Ranch development. Clearance for installation is anticipated to occur during the first quarter of this new agreement period and costs have been accounted for within the 2025-27 funds.

On May 8, 2025, City staff received an updated proposal from SLOMA for a third two-year Agreement (Attachment D) requesting $100,000 to be paid to SLOMA annually. Based on a successful prior two-year period, the Draft Agreement (Attachment A) is being proposed with limited amendments. The Agreement identifies the following potential work projects on behalf of the City, not to exceed a total of $400,000 over the two-year period:
1) Continue with the installation of “Shift”, by Warren Hamrick, to be placed in the San Luis Ranch neighborhood (Froom Ranch Road and Heirloom). 2) Contract and install a permanent installation at the soon to be developed Righetti Community Park by a local artist.
3) Upon completion of the Mission Plaza Café and Restroom renovation, contract for a temporary sculpture on the Mission Plaza lawn and to remain on site through June of 2027.
4) Installation of an “ephemeral” piece to be installed within the City limits on a temporary basis.

Item 5i
Current Role of City Departments
As the Draft Agreement highlights, SLOMA will support one part of the overall City public art program. In addition to SLOMA’s activities, City staff will continue to support the public art program in a variety of ways, as outlined in Attachment A, section 4.A.i-xvii, including:

1. The Recreation Manager will continue to serve as a liaison to SLOMA, and manage all other sectors of the public art program, with support from the City’s Public Art Coordinator, including, but not limited to:
a. infrastructure management, maintenance and care of the City’s collection, b. coordination of private and voluntary art installations, c. coordination of local park activation through the arts d. installation of temporary art projects,
e. Utility Box program,
f. advocacy and outreach,
g. and recreational programming.

2. In addition to the Recreation Manager and Public Art Coordinator, the Volunteer Coordinator will assist with volunteer recruitment for maintenance.

3. Public Works staff continue to maintain shared facility spaces, including the Mission Plaza lawn, manage maintenance when resources allow and provide guidance for installations.

4. The Community Development Department (CDD) team will continue to work with staff on private installations and support SLOMA with the necessary permitting for installations impacting traffic or requiring final inspection.

5. The City’s Tourism team will continue to cross-promote art and provide outreach opportunities through the PCC. Finally, the Communications team conducts marketing and promotions of the joint installations, as well as the City’s art pieces.

In summary, the City’s public art program is multifaceted and far-reaching. Its success in delivering an inclusive, engaging, and dynamic arts experience is made possible through close collaboration among City departments and our valued partner, SLOMA.

Previous Council or Advisory Body Action
On February 20, 1967, the City Council adopted Resolution No. 367 (1967 Series) in order to allow for the lease of a portion of Mission Plaza to be used for the purposes of operating a museum structure addressed at 1010 Broad Street within a defined premises that is further identified in that 1967 Lease Agreement.

On February 18, 2010, the City entered into an updated Lease Agreement with SLOMA (formerly the San Luis Obispo Art Center and prior to that the San Luis Obispo Art Association) to include terms and provisions to extend the lease term until 2065, specify operational hours and procedures, and construct a new facility on the premises on or before 2025.

On July 20, 2021, Council approved a two-year Community Partnership Agreement with SLOMA.

On July 11, 2023, Council approved a second two-year Community Partnership Agreement with SLOMA.

Item 5i
Public Engagement
Public comment on the item can be provided to the City Council through written correspondence prior to the meeting and through public testimony at the meeting.

CONCURRENCE
The City Attorney’s Office, the City’s Risk Manager, and the City’s Finance team have reviewed the relevant legal documents associated with the Community Partnership Agreement with SLOMA and have concluded that there are no barriers to the recommendations stated herein. The Executive Director of SLOMA has reviewed and supported the draft agreement.

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

FISCAL IMPACT
Budgeted: No Budget Year: 2025-26
Funding Identified: Yes
Fiscal Analysis:

Funding Sources Total
Budget
Available
2025-27
Financial
Plan
(Year 1)
2025-27
Financial
Plan
(Year 2)
Current
Funding
Request
(2 years)
Remaining
Balance
Annual
Ongoing
Cost
CIP – Public Art
Private Sector
Fund (LRM)
(Account No.
2000503)
$31,024 $110,000 $210,000 $200,000 $151,024
CIP – Public Art
Private Sector
Fund (Account No.
2000503)
$232,583 $232,583
CIP – Public Art
Private Sector
Fund (LRM)
(Account No.
2000510)
$177,690 $100,000 $100,000 $200,000 $177,690
CIP – Public Art
Private Sector
Fund (Account No.
2000510)
$60,619 $60,619

Item 5i
Funding Sources Total
Budget
Available
2025-27
Financial
Plan
(Year 1)
2025-27
Financial
Plan
(Year 2)
Current
Funding
Request
(2 years)
Remaining
Balance
Annual
Ongoing
Cost
CIP – Capital
Outlay Fund (LRM)
(Account No.
2000510)
$8,034 $8,034
Other:

Total $509,949 $210,000 $310,000 $400,000 $629,949 N/A
The proposed Community Partnership Agreement provides $100,000 annually ($200,000 total over the two-year term) to the San Luis Obispo Museum of Art (SLOMA) to support the general duties and obligations outlined in the agreement. Additionally, the City will provide up to $200,000 annually ($400,000 total over two years) for the acquisition, installation, and maintenance of at least three public art projects, as described in the agreement.

The agreement and projects will be funded through a combination of existing Public Art Fund balances and new appropriations included in the 2025–27 Capital Improvement Program (CIP).

The 2025–27 CIP, slated for adoption by City Council on June 17, 2025, allocates $110,000 in FY 2025–26 and $210,000 in FY 2026–27 to the Public Art Installations account (Project #2000503), along with $100,000 in each year for the Annual Public Art Maintenance account (Project #2000510). The Public Art Fund is supported by both impact fees collected from new development and contributions from the General Fund, consistent with the City’s ongoing investment in capital projects that enhance community spaces through public art.

ALTERNATIVES

1. Do not renew the community partnership agreement with the San Luis Obispo Museum of Art. Council has identified support of cultural arts and community partnerships and implementation of the public art master plan as part of the city’s major city goal strategies in support of the 2025-2027 financial plan. Non-renewal would require City staff to halt or delay current Public Art work projects to address the above outlined items.

2. Do not accept the proposal from SLOMA and require an RFP to select a community partner. The prior community partnership agreement terms have been successful and have provided momentum for future expansion of the partnership to continue art installations in a more efficient manner. SLOMA is uniquely qualified to provide these services due to its intimate knowledge of art, unique connection to the arts community and its long experience producing and providing cultural art exhibits for the benefit of the community.

ATTACHMENTS
A - Draft Community Partnership Agreement, 2025-2027
B - Signed Community Partnership Agreement, 2021-2023
C - Signed Community Partnership Agreement, 2023-2025
D - SLOMA proposal for partnership, May 2025

AGREEMENT BETWEEN THE CITY OF SAN LUIS OBISPO AND THE SAN

LUIS OBISPO MUSEUM OF ART FOR USE OF CITY PROPERTY

COMMUNITY PARTNERSHIP AGREEMENT BETWEEN THE CITY OF SAN LUIS OBISPO AND THE SAN LUIS OBISPO

MUSEUM OF ART FOR PUBLIC ART PROFESSIONAL SERVICES
This community partnership agreement ("Agreement") is made and entered into in the City of San Luis Obispo on July 1, 2025 by and between the City of San Luis Obispo, a municipal corporation and charter city, hereinafter referred to as "City", and San Luis Obispo Museum of Art, hereinafter referred to as "SLOMA".

WITNESSETH:

WHEREAS, the City is the legal owner of the property located at 1010 Broad Street in the City of San Luis Obispo as shown on Exhibit A; and
WHEREAS, SLOMA currently leases certain premises from the City located at 1010 Broad Street (the “Leased Premises”), which constitutes a portion of certain real property owned by the City within City limits, collectively known as Mission Plaza and identified as San Luis Obispo County Assessor Parcel No. 002-423-006. In furtherance of CITY and SLOMA’s common goals and objectives for public art and education, as described herein, CITY also desires to allow for reserved and permitted (at no cost) use by SLOMA of the “Mission Plaza lawn area” located immediately to the northeast of SLOMA’s existing leased Premises as shown on Exhibit A attached to this Agreement; and
WHEREAS, the City desires to maintain a mutually beneficial relationship with SLOMA as a way to continue to enhance the sense of community through public art for the residents of San Luis Obispo; and WHEREAS, consistent with adopted City planning documents, including the Downtown Concept Plan, current Major City Goals that focus on economic vitality and tourism serving objectives, the City desires to create a cultural arts district adjacent to the Mission Plaza and anchored by the Museum of Art (as well as by the Natural History Center, Children’s Museum, and forthcoming SLOREP); and WHEREAS, the City Council established and funded a public art program in 1990 (Resolution No. 6811 (1990 Series)); and
WHEREAS, SLOMA is uniquely qualified to provide the public art services contemplated under this Agreement due to its intimate knowledge of art, unique connection to the arts community, and its long experience producing and providing cultural art exhibits for the benefit of the community.

WHEREAS, SLOMA is situated to provide technical expertise, artists relationships, project management, communications, and engagement leadership through the acquisition of public art pieces and/or the activation of public spaces through the integration of public art and/or the acquisition of signature art pieces. SLOMA desires to continue to activate the Mission Plaza lawn and outdoor space through installations, art activities, and educational opportunities; enhancing the City’s cultural arts district; and WHEREAS, the City Council recognizes that public art is fundamentally different from most other types of public works in that when selecting public art, the CITY is looking for an individual expression or unique idea, which makes sole-source selection and acquisition of completed pieces appropriate means of acquiring public art; and WHEREAS, to ensure an efficient acquisition process, the City Council has delegated to the City Manager the authority to approve acquisition of public art pieces by SLOMA under this Agreement; and