Agenda packet — San Luis Obispo City Council, November 18, 2025 (part 3 of 5)

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FORM 4

DRUG-FREE WORKPLACE ACT CERTIFICATION FORM
Contractor/Bidder Firm Name: _________________________________________ The contractor/bidder firm named above hereby certifies compliance with Government Code Section 8355 in matters relating to providing a drug-free workplace. The above named will:

1. Publish a statement notifying employees that unlawful manufacture, distribution, dispensation, possession, or use of a controlled substance is prohibited and specifying actions to be taken against employees for violations, as required by Government Code Section 8355 (a).

2. Establish a Drug-Free Awareness Program as required by Government Code Section 8355 (a)(1)(B), to inform employees about all the following:
(a) The dangers of drug abuse in the workplace,
(b) The person’s or organization’s policy of maintaining a drug-free workplace, (c) Any available counseling, rehabilitation and employee assistance programs, and (d) Penalties that may be imposed upon employees for drug abuse violations.

3. Provide as required by Government Code Section 8355 (a)(1)(C), that every employee who works on the proposed contract:
(a) Will receive a copy of the company’s drug-free policy statement, and (b) Will agree to abide by the terms of the company’s statement as a condition of employment on the contract.

I, the official named below, hereby swear that I am duly authorized legally to bind the contractor to the above described certification. I am fully aware that this certification, executed on the date and in the county below, is made under penalty of perjury under the laws of the State of California.

Authorized Representative’s Name and Title: _________________________________________ Authorized Representative Signature: _________________________________________ Date executed: _________________________________________ Contractor/Bidder Firm’s Mailing Address: _________________________________________ Federal I.D. Number: _________________________________________

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FORM 5

NON-COLLUSION AFFIDAVIT FORM
(Title 23 United States Code Section 112 and Public Contract Code Section 7106) State of: ______________________________
County of: ______________________________
_____________________________ (Name) being first duly sworn, deposes and says that he or she is _____________________________ (Title) of _____________________________ (Company Name) the party making the foregoing bid, that such bid is not made in the interest of, or on behalf oh, any undisclosed person, partnership, company, association, organization, or corporation; that the bid is genuine and not collusive or sham; that said bidder has not directly or indirectly colluded, conspired, connived, or agreed with any bidder or anyone else to put in a sham bid, or that anyone shall refrain from bidding; that the bidder has not in any manner, directly or indirectly, sought by agreement, communication, collusion, or conference, with anyone to fix the bid price of the bidder or any other bidder, or to secure any advantage against the public body awarding the contract of anyone interested in the proposed contract; that all statements contained in the bud are true; and, further, that the bidder has not, directly or indirectly, submitted his or her bid price of any breakdown thereof, of the contents thereof, of divulged information or data relative thereto, or paid, and will not pay, any fee to any corporation, partnership, company association, organization, bid depository, or to any member of agent thereof to effectuate a collusive or sham bid.

I certify (or declare) under penalty of perjury under the laws of the State of California that the foregoing is true and correct.

Executed on _______________, 20____, at ____________________, _____________________ (Date) (City) (State)
_______________________, ____________________________, ________________________ Printed Name Signature of Authorized Official Title

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FORM 6

TAX LIABILITY CERTIFICATION FORM
The Proposer certifies that:

1. It has no unpaid federal tax liability that has been assessed, for which all judicial and administrative remedies have been exhausted or have lapsed, and that is not being paid in a timely manner pursuant to an agreement with the authority responsible for collecting the tax liability;

2. It has not been convicted of a felony criminal violation under any federal law within the preceding 24 months; and

3. It shall require that the language of this certification be included in the award documents for all subcontractors and material suppliers at all tiers, and that all subcontractors and material suppliers shall certify and disclose accordingly.

The Proposer certifies or affirms the truthfulness and accuracy of the contents of the statements submitted on or with this certification. In addition, the Proposer understands and agrees that the provisions of 31 U.S.C. §§ 3801 et al. are applicable to this certification.

Title of Company/Firm: ______________________________
Name: ______________________________
Title: ______________________________
Signature: ______________________________
Date: ___________________________________

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FORM 7
WORKERS’ COMPENSATION CERTIFICATION FORM
Labor Code Section 3700 in relevant part provides:

Every employer except the State shall secure the payment of compensation in one or more of the following ways:

1. By being insured against liability to pay compensation by one or more insurers duly authorized to write compensation insurance in this State.

2. By securing from the Director of Industrial Relations a certificate of consent to self-insure, which may be given upon furnishing proof satisfactory to the Director of Industrial Relations of ability to self-insure and to pay any compensation that may become due to employees.

3. For any county, city, city and county, municipal corporation, public Owner, public agency, or any political subdivision of the state, including each member of a pooling arrangement under a joint exercise of powers agreement (but not the state itself), by securing from the Director of Industrial Relations a certificate of consent to self-insure against workers’ compensation claims, which certificate may be given upon furnishing proof satisfactory to the director of ability to administer workers’ compensation claims properly, and to pay workers’ compensation claims that may become due to its employees. On or before March 31, 1979, a political subdivision of the state which, on December 31, 1978, was uninsured for its liability to pay compensation, shall file a properly completed and executed application for a certificate of consent to self-insure against workers’ compensation claims. The certificate shall be issued and be subject to the provisions of Section 3702.

I am aware of the provisions of Labor Code Section 3700 which require every employer to be insured against liability for Workers’ Compensation or to undertake self-insurance in accordance with the provisions of that code, and I will comply with such provisions before commencing the performance of the work of this Contract.

Signed (Contractor) Date
Print Name and Title

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NOTICE: This workbook is provided as an example and template for PROPOSERS to use when generating price PROPOSALS in response to the CITY's solicitation for Transit Operation and Maintenance Services.

The workbook includes formulas and links, and is not password protected. PROPOSERS should take care to ensure that all formulas and links are correct when PROPOSALS are submitted. Price PROPOSALS must be submitted in un-protected executable Excel format with all appropriate formulas and links, to enable complete cost analysis. Password protected price PROPOSALS may be considered non-responsive.

Cost Proposal Forms Instructions:

1. Complete Base Cost Proposal Form and the Alternate Cost Proposal Form for all base years. Include all costs associated with fixed and variables required for service delivery.

2. Complete the Base Position Headcount Form and the Alternate Position Headcount Form worksheet for all base years. Indicate the proposed number of staff planned for each position for each year.

3. Complete the Start-up & Transition Costs worksheet. Include all one-time transition and project startup related costs.

APPENDIX L - Cost Proposal Forms

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Name of Proposing Firm:

Authorized Representative Signature:

Authorized Representative Title:

Date:

Budget Elements Year One Year Two Year Three Year Four
7/1/2026-6/30/2027 7/1/2027-6/30/2028 7/1/2028-6/30/2029 7/1/2029-6/30/2030 Administrative Expenses
General Management Position Wages
General Management Position Benefits
Operations Management Position Wages
Operations Management Position Benefits
Other Administrative Position(s) Wages
Other Administrative Position(s) Benefits
Facility Utilities and Expenses
Payroll/IT Services
Travel
Non-Revenue Vehicles
Other (specify below):

Subtotal $ - $ - $ - $ -
Insurance
Materials and Supplies
Telecommunications
Vehicle Liability Insurance
General Liability Insurance
Other (specify below):

Subtotal $ - $ - $ - $ -
Operating Expenses
Safety and Training Management Position Wages
Safety and Training Management Position Benefits
Bus Operation Position(s) Wages
Bus Operation Position(s) Benefits
Road Supervision Position(s) Wages
Road Supervision Position(s) Benefits
Employee Recruitment and Screening
Materials and Supplies
Uniforms
Other (specify below):

Subtotal $ - $ - $ - $ -

BASE COST PROPOSAL FORM
The below budget breakdown and the other attached materials represent an offer to do work as described in this Proposal. It is understood that this offer shall remain in effect for ninety (90) days from the date set for opening proposals unless withdrawn pursuant to the conditions of the subject RFP.

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Maintenance Expenses
Maintenance Management Position Wages
Maintenance Management Position Benefits
Mechanic/Technician Position(s) Wages
Mechanic/Technician Position(s) Benefits
Other Maintenance Staff Position(s) Wages
Other Maintenance Staff Position(s) Benefits
Maintenance Parts and Supplies
Cleaning Supplies
Lubricants and Fluids
Other (specify below):

Subtotal $ - $ - $ - $ -
Other Expenses
Start-up and Tranisition Costs (Linked to S&T Costs Sheet) $ - Corporate Overhead and Support
Management Fee
Other (specify below):

Subtotal $ - $ - $ - $ -
Grand Total $ - $ - $ - $ -
Operating and Maintenance Expense $ - $ - $ - $ -
Revenue Vehicle Insurance Expense $ - $ - $ - $ -
Monthly Fee (Fixed Costs) $ - $ - $ - $ -
Projected Vehicle Service Hours 39,608.8 39,608.8 39,608.8 40,505.7 Vehicle Service Hourly Rate (Variable Costs) $ - $ - $ - $ - Total Hourly Rate (Total Costs) $ - $ - $ - $ -

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Name of Proposing Firm:

Authorized Representative Signature:

Authorized Representative Title:

Date:

Subtotal $ - $ - $ - $ -
Insurance
Materials and Supplies
Telecommunications
Vehicle Liability Insurance
General Liability Insurance
Other (specify below):

Subtotal $ - $ - $ - $ -

ALTERNATE COST PROPOSAL FORM
The below budget breakdown and the other attached materials represent an offer to do work as described in this Proposal. It is understood that this offer shall remain in effect for ninety (90) days from the date set for opening proposals unless withdrawn pursuant to the conditions of the subject RFP.

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Subtotal $ - $ - $ - $ -
Other Expenses
Start-up and Tranisition Costs (Linked to S&T Costs Sheet) $ - Corporate Overhead and Support
Management Fee
Other (specify below):

Subtotal $ - $ - $ - $ -
Grand Total $ - $ - $ - $ -
Operating and Maintenance Expense $ - $ - $ - $ -
Revenue Vehicle Insurance Expense $ - $ - $ - $ -
Monthly Fee (Fixed Costs) $ - $ - $ - $ -
Projected Vehicle Service Hours 57,355.5 57,355.5 57,355.5 57,355.5 Vehicle Service Hourly Rate (Variable Costs) $ - $ - $ - $ - Total Hourly Rate (Total Costs) $ - $ - $ - $ -

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Base Year One Base Year Two Base Year Three Base Year Four 7/1/2026-6/30/2027 7/1/2027-6/30/2028 7/1/2028-6/30/2029 7/1/2029-6/30/2030 Management
General Management
Operations Management
Maintenance Management
Safety and Training Management
Other (Specify below):

Subtotal 0 0 0 0
Non-Management
Bus Operations (Full-time)
Bus Operations (Part-time)
Road Supervision
Dispatching
Other Administrative Position(s)
Mechanic/Technician Position(s)
Other (Specify below):

Subtotal 0 0 0 0
Grand Total 0 0 0 0

BASE POSITION HEADCOUNT FORM

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Subtotal 0 0 0 0
Grand Total 0 0 0 0

ALTERNATE POSITION HEADCOUNT FORM

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Item Units $ Each Total
$ -
$ -
$ -
$ -
$ -
$ -
$ -
$ -
$ -
$ -
$ -
$ -
$ -
$ -
$ -
$ -
$ -
$ -
$ -
$ -
$ -
$ -
$ -
$ -
$ -
$ -
$ -
$ -
$ -
$ -
Start-up & Transition Costs
Total

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Item 6h
Department: Finance
Cost Center: 2001
For Agenda of: 11/18/2025
Placement: Consent
Estimated Time: n/a
FROM: Emily Jackson, Finance Director
Prepared By: Brent Taylor, Financial Analyst – Infrastructure Finance SUBJECT: FISCAL YEAR 2024-25 DEVELOPMENT IMPACT FEE ANNUAL REPORT (AB1600)

RECOMMENDATION
Adopt a Draft Resolution entitled, “A Resolution of the City Council of the City of San Luis Obispo, California, accepting the Fiscal Year 2024-25 Annual Report on Development Impact Fees and make findings related to Development Impact Fees held longer than five years.”

REPORT-IN-BRIEF
The purpose of the Fiscal Year 2024-25 Annual Report on Development Impact Fees is to maintain compliance with The Mitigation Fee Act (“Act”), by disclosing certain information to the public. Local agencies are required under the Act to annually report on specific details of fees such as revenue amounts, expenditure amounts, available fund balances, and information about the projects on which the fees were expended. In addition, the Act requires local agencies to provide specific findings should there be any fee revenue held unexpended for more than five years. Those specific findings are provided in this report and the recommended Resolution for two fee accounts which currently have funds held for more than five years (the Margarita Area Development Impact fee and the Airport Area Transportation Impact fee). These requirements are further described in the Policy Context Section below. The Annual Report contains key information required under the Act that must be made available to the Public each year.

POLICY CONTEXT
The Mitigation Fee Act, specifically California Government Code 66006, requires that local agencies which have adopted and established development impact fees must, by December 31st each year, make available to the public the following information for the most recent fiscal year:
1) A brief description of the type of fee in the account or fund. 2) The amount of the fee.
3) The beginning and ending balance of the account or fund.

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Item 6h
4) The amount of the fees collected, and the interest earned. 5) An identification of each public improvement on which fees were expended and the amount of the expenditures on each improvement, including the total percentage of the cost of the public improvement that was funded with fees. 6) (a) An identification of an approximate date by which the construction of the public improvement will commence if the local agency determines that sufficient funds have been collected to complete financing on an incomplete public improvement, and the public improvement remains incomplete.
(b) An identification of each public improvement identified in a previous report and whether construction began on the approximate date noted in the previous report. (c) For a project identified pursuant to 6(b) for which construction did not commence by the approximate date provided in the previous report, the reason for delay and a revised approximate date that the local agency will commence construction.
7) A description of each interfund transfer or loan made from the account or fund, including the public improvement on which the transferred or loaned fees will be expended, and, in the case of an interfund loan, the date on which the loan will be repaid, and the rate of interest that the account or fund will receive on the loan. 8) The amount of refunds made pursuant to subdivision (e) of Section 66001, the number of persons or entities identified to receive those refunds, and any allocations pursuant to subdivision (f) of Section 66001.

In addition, The Mitigation Fee Act, California Government Code 66001, requires, that for the fifth fiscal year following the first deposit into the account or fund, and every five years thereafter, the local agency shall make all the following findings with respect to that portion of the account or fund remaining unexpended, whether committed or uncommitted:
1) Identify the purpose for which the fee is to be put. 2) Demonstrate a reasonable relationship between the fee and the purpose for which it is charged.
3) Identify all sources and amounts of funding anticipated to complete financing. 4) Designate the approximate dates on which the funding referred to is expected to be deposited into the appropriate account or fund.

When findings are required, they shall be made in connection with the Annual Report. If the local agency is unable to make valid findings, then the local agency shall refund to the then current owner(s) the unexpended portion of the fee and any interest thereon.

DISCUSSION
Background
The City of San Luis Obispo has a Capital Facilities Fee Program as detailed in Municipal Code chapter 4.56 and chapter 4.20.140 and governed under California Government Code Sections 66000-66025. Development Impact Fees are imposed as a condition of

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Item 6h
approval upon new development and collected through the building permit process.

Development Impact Fees are established for use on public facilities such as fire, police, transportation, park, water, and wastewater facilities. The City of San Luis Obispo has a critical need to ensure that the impacts from new development are addressed. The City Council has declared via Ordinance 1646 that development impact fees are required due to existing local, state and federal resources which are insufficient to meet the capital improvement infrastructure and facility needs for new development. Development impact fees are a commonly used mechanism to address this type of need.

Below is a summary of the Fees the City has established, and are included in the Annual Report for compliance with the Mitigation Fee Act:

Fund Fee Name Intended Purpose/ Use
510 Citywide Park Development Impact Fee Acquisition of Parkland (not located in a specific plan area) 519 Citywide Park Improvement Impact Fee Park facility improvements for existing and newly acquired parkland, (not located in a specific plan area)
511 OASP Park Improvement Impact Fee* Funding for 100% of the cost to construct and improve the Orcutt Area Park System (Charged to OASP Developers only)
512 Margarita Area Development Impact Fee* DISCONTINUED - Margarita Area Specific Plan Park Improvements 507 Citywide Transportation Impact Fee*
Citywide Transportation Improvements, (not located in a specific plan area), such as interchanges, intersections, street widening, street extensions, pedestrian/ bike improvements, transit improvements and/ or reimbursements to developers
503 Airport Area Transportation Impact Fee*
DISCONTINUED - Tank Farm Road Median Improvements, Unocal Local Road, Santa Fe Extension, Buckley Extension, and Bike Paths in the Airport Area and/ or to reimburse developers
504 LOVR Area Transportation Impact Fee* Reimburse Costco for Los Osos Valley Road transportation improvements constructed
514 San Luis Ranch Area Transportation Impact Fee*
Citywide Transportation Improvements as specified for Fund 507, EXCEPT for the HWY 101/ Prado Road Interchange (Charged to San Luis Ranch Developer only)
515 OASP Area Transportation Impact Fee* Transportation improvements within the Orcutt Area Specific Plan Boundaries
506 Wastewater Impact Fee* The expansion and improvement of facilities used for sewer collection and sewer treatment
509 Water Impact Fee* The expansion and improvement of facilities used for water supply, water treatment, and water distribution
516 Fire Impact Fee* Renovations to Fire Station #1-4, to construct Fire Station #5 and to replace fire vehicles
517 Police Impact Fee* Construct new police headquarters and purchase police vehicles 501 Parkland In-Lieu Fee (Quimby)
Develop (acquire and improve) new parkland or to rehabilitate existing neighborhood park, community park or recreational facilities to serve the subdivision in which the fees were collected
502 Open Space Protection In-Lieu Fee
DISCONTINUED - Acquire new open space land, specifically in the Airport Area Specific Plan boundaries
505 Affordable Housing In-Lieu Fee Funding for the provision of affordable housing and for reasonable costs associated with the development of affordable housing 611 Parking In-Lieu Fee Develop (acquire and improve) or maintenance of parking facilities within the established in-lieu fee area
207 Public Art In-Lieu Fee Public Art in both private developments and public spaces * The fee was calculated using a plan based methodology where specific projects and costs were identified in the nexus study and the fee revenue must be used on the specified projects up to the cost used to calculate the fee.

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Item 6h
Impact Fee Summary – Revenue and Expenses
For FY 2024-25, the City of San Luis Obispo collected through its Capital Facilities Fee program a total revenue of $11,333,645.95 and expended $5,546,263.85 on eligible projects throughout the city. The impact fee revenue helped advance construction on thirty-five projects in the city which included three Parks Projects, fourteen Transportation Projects, and eighteen Utility Projects. Refer to Exhibit A & Exhibit B in the attached report for details on projects funded by impact fees.

In-Lieu Fee Summary – Revenue and Expenses
For FY 2024-25, the City of San Luis Obispo collected through its In-Lieu Fee Programs a total revenue of $941,209.99 and expended $2,692,546.36 on eligible projects throughout the city. The In-Lieu fee revenue helped to advance construction on six projects in the city which included three Park Projects, one Parking Project, and two Public Art Projects. Refer to Exhibit A & Exhibit B in the attached report for details on projects funded by In-Lieu fee funds.

Fund Balances
The figures below represent the current fund balances available for expenditure as of June 30, 2025, whether committed or uncommitted to a Capital Improvement Plan project and serves to illustrate the amount of funding from impact fees and in-lieu fees currently available to budget and expend on projects through the City’s adopted Capital Improvement Plan. In addition, any revenue held longer than five years is reflected to show the amount of the available fund balance that is subject to findings. The five-year Fund Name Revenue/ Interest Expenditures # of Projects 510 Citywide Park Development $ 267,469.74 $ - 0
519 Citywide Park Improvement $ 240,241.20 $ 173,119.86 1 511 OASP Park Improvement $ 186,753.91 $ 245,981.47 2
512 Margarita Area Development $ 162,040.26 $ - 0
507 Citywide Transportation $ 1,798,621.90 $ 739,340.93 10 503 Airport Area Transportation $ 13,592.12 $ 234,242.23 3 504 LOVR Area Transportation $ (52,452.58) $ 566,787.71 1 514 San Luis Ranch Area Transportation $ 448,783.75 $ - 0 515 OASP Area Transportation $ 391,555.04 $ - 0
506 Wastewater $ 2,729,022.70 $ 943,559.30 6
509 Water $ 4,843,918.78 $ 2,643,232.35 12
516 Fire $ 112,691.28 $ - 0
517 Police $ 191,407.85 $ - 0
$ 11,333,645.95 $ 5,546,263.85 35
Fund Name Revenue/ Interest Expenditures # of Projects
501 Parkland In-Lieu (Quimby) $ 117,103.04 $ 1,759,459.54 3 502 Open Space Protection In-Lieu $ 86,786.60 $ - 0
505 Affordable Housing In-Lieu $ 297,945.78 $ 207,000.00 0 611 Parking In-Lieu $ - $ 317,995.41 1
207 Public Art In-Lieu $ 439,374.57 $ 408,091.41 2
$ 941,209.99 $ 2,692,546.36 6

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Item 6h
revenue analysis and any required findings for revenue held for more than five years is included in this section and within the report under the individual fund summaries.

Impact Fee – Fund Balance Summary
In-Lieu Fee – Fund Balance Summary
The negative fund balance $(2,639,233.06) for the Affordable Housing In-Lieu Fee fund can be attributed to the Interest Receivable on Long Term Loans in the amount of $2,850,875.37.

More information on the negative fund balance can be found in Attachment B (FY 2024-25 Development Impact Fee Annual Report).

Five-Year Revenue Findings
Margarita Area Development Impact Fee (Fund 512) - As of June 30, 2025, there is $2,817,860.18 in revenue collected which has been held for more than five years. The fund balance is intended to be used for pre-construction activities (design, planning, permitting, etc.) and the overall construction costs for a twenty-one-acre community park located in the Margarita Area Specific Plan.

The use of these funds for a park in the Margarita Area is in conformance with the Margarita Area Specific Plan and the Parks & Recreation Blueprint for the Future: 2021- 2041 (General Plan Element) and allows the City to meet the need for a community park Fund Name Fund Balance Revenue Held > 5-Years
510 Citywide Park Development $ 968,939.59 $ -
519 Citywide Park Improvement $ 2,040,551.64 $ -
511 OASP Park Improvement $ 2,056,785.98 $ -
512 Margarita Area Development $ 3,454,600.12 $ 2,817,860.18 507 Citywide Transportation $ 5,488,500.91 $ -
503 Airport Area Transportation $ 162,943.21 $ 132,691.31 504 LOVR Area Transportation $ (2,452.56) $ -
514 San Luis Ranch Area Transportation $ 2,606,606.76 $ - 515 OASP Area Transportation $ 1,864,800.06 $ -
506 Wastewater $ 5,799,629.03 $ -
509 Water $ 6,851,326.63 $ -
516 Fire $ 393,732.58 $ -
517 Police $ 543,411.50 $ -
Fund Name Fund Balance Revenue Held > 5-Years
501 Parkland In-Lieu (Quimby) $ 351,517.50 $ -
502 Open Space Protection In-Lieu $ 100,484.32 $ -
505 Affordable Housing In-Lieu $ (2,639,233.06) $ -
611 Parking In-Lieu $ - $ -
207 Public Art In-Lieu $ 1,557,870.95 $ -

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Item 6h
that includes sport/athletic fields, sport courts, playground amenities, public art, and social gathering area(s). In 2005, the need for the park was identified in the Margarita Area Specific Plan and the financing strategy was identified in the Public Facilities Financing Plan for Margarita Area. The plan was amended in 2012 to adjust the equitable sharing of the cost of the purchase and construction of the Damon-Garcia Sports Fields, which is satisfying a portion of the park needs in the Margarita Area.

The table below reflects the overall funding sources and amount anticipated to cover the costs of the future park project in the Margarita Area.

The total cost of the park project was originally estimated using a 2012 calculation and was the basis for fee amounts. Since this time, costs to construct the park have significantly increased; therefore, to establish the current total cost, the City applied a onetime Consumer Price Index (CPI) adjustment from 2012 to 2024 and annually thereafter.

At this time, the project is not ready to move toward construction because the identified land, zoned for park space, is privately owned, and the current owners are not interested in selling or developing the property. The City remains committed to using the funds collected for the MASP park whenever the landowners decide to sell or develop the site.

Additionally, the City will need to cover a substantial amount of the project costs with other yet-to-be-determined funding sources. Currently, no construction start date has been identified.

Airport Area Transportation Impact Fee (Fund 503) – The fund balance held more than five years is to be used for pre-construction activities (design, planning, permitting, etc.) for two transportation improvement projects programmed in the AASP TIF program:

Tank Farm Road Widening (including the Tank Farm/Santa Fe Roundabout, and shareduse path between Santa Fe and Innovation Way) and Santa Fe Road Extension north of Tank Farm Road. Specifically, these funds will be used to reimburse Covelop, Inc. for costs related to transportation improvements required for the 600 Tank Farm development project and are also included in the Airport Area Transportation Impact Fee calculation.

As conditions of approval of the project, the 600 Tank Farm developer is required to design and construct portions of the Tank Farm Road Widening and Santa Fe Road Extension (North) improvements prior to their development projects construction of units. As documented in detail in the AASP and its related EIR, the Tank Farm Widening and Santa Fe Road Extension projects represent transportation infrastructure that is needed to mitigate the impacts of new development within the city, particularly within the Current Development
Impact Fees
%
Other Funding
Sources (1) %
Margarita Area Community Park $ 3,454,600.12 21% $ 12,621,328.58 79% $16,075,928.70 100% Project Total %
Cost by Fund Source
(1) Other funding sources will include Citywide Parkland Improvement Impact Fees, Quimby In-Lieu Fees, General Fund (Local Revenue Measure G) and/or Future Grants

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Item 6h
AASP boundaries. The proportionality and nexus to new development is described in further detail in the AASP (Chapter 8, Public Facilities Financing Plan).

Below is a list of projects on which the fees collected will be used and the anticipated amount of funding from all sources needed to complete the financing of these projects.

The Tank Farm Road Widening and Santa Fe Road Extension projects are large, complex transportation improvements that are anticipated to be constructed in phases over several years as incremental development occurs. Funding is expected to be completed for the remaining projects as identified in the following timelines:
o For the Tank Farm Road Widening Project, funding for the first components of the project that are the responsibility of the 600 Tank Farm development, is expected to be available by 2026, and associated improvements could be constructed as soon as 2027. These first components of the Project include design/pre-construction costs for the future Tank Farm Road/Santa Fe Roundabout and Tank Farm Road shared-use path (not constructed with 600 Tank Farm development), and a portion of the construction costs associated with widening of Tank Farm Road at the intersection with Santa Fe (constructed by 600 Tank Farm development). Funding and construction for the remaining project components, including construction of the Tank Farm/Santa Fe Roundabout, construction of the Tank Farm shared-use path and further widening of Tank Farm Road, are dependent on future development within the AASP area, which could reasonably occur within the next 5-15 years. o For the Santa Fe Road Extension (North) Project, funding for the first component of the project, which will be constructed by 600 Tank Farm development, (approximately 40% of the planned road extension) is expected to be available by 2026, and improvements could be constructed as soon as 2027. Funding and construction timing for the remaining project components are dependent on future development within the AASP area, which could reasonably occur within the next 5-15 years.
o For the Santa Fe Road Extension (South), funding and construction timing are dependent on future development within the AASP area, which could reasonably occur within the next 5-15 years.

The direct developer contribution and local funds needed for these improvements are fully funded. The portion of these project costs from development impact fees are partially funded, with $162,943.21 to be applied from existing AASP TIF fund balance, and the remainder to be reimbursed to the developer from future Citywide Transportation Impact Direct Developer
Contribution %
Development
Impact Fees
%
Other Local
Funds/Grants %
Tank Farm Road Widening* $ 3,000,000.00 14% $ 13,300,000.00 60% $ 5,700,000.00 26% $ 22,000,000.00 100% Santa Fe Road Extension (North) $ - 0% $ 432,000.00 40% $ 648,000.00 60% $ 1,080,000.00 100% Santa Fe Road Extension (South) $ - 0% $ 1,000,000.00 40% $ 1,500,000.00 60% $ 2,500,000.00 100% * Includes Tank Farm/ Santa Fe Roundabout
%
Cost by Fund Source
Project TOTAL

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Item 6h
Fee revenues—the Citywide Transportation Impact Fee obligations for the 600 Tank Farm development itself would fully fund this reimbursement.

Previous Council or Advisory Body Action
The annual report and necessary findings have been filed in compliance with the Mitigation Fee Act since the adoption and implementation of the Development Impact Fee program at the City of San Luis Obispo. Below are the 4 most recent fiscal year’s Annual Reports approved by City Council.

RESOLUTION NO. 11535 (2024 SERIES)

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS OBISPO, CALIFORNIA, ACCEPTING THE 2023-2024 ANNUAL REPORT ON DEVELOPMENT

IMPACT FEES AND MAKING FINDINGS RELATED TO DEVELOPMENT IMPACT

FEES HELD LONGER THAN FIVE YEARS
RESOLUTION NO. 11469 (2024 SERIES)

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS OBISPO, CALIFORNIA, ACCEPTING THE 2022-23 ANNUAL REPORT ON DEVELOPMENT

IMPACT FEES AND MAKING FINDINGS RELATED TO IMPACT FEES HELD LONGER

THAN FIVE YEARS
RESOLUTION NO. 11386 (2023 SERIES)

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS OBISPO, CALIFORNIA, ACCEPTING THE 2021-22 ANNUAL REPORT ON DEVELOPMENT

IMPACT FEES REAFFIRMING THE NECESSITY FOR DEVELOPMENT IMPACT FEES

AND MAKE FINDINGS RELATED TO IMPACT FEE BALANCES AND IN-LIEU FEES RESOLUTION NO. 11301 (2022 SERIES)

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS OBISPO, CALIFORNIA, ACCEPTING THE 2020-21 ANNUAL REPORT ON DEVELOPMENT IMPACT FEES

REAFFIRMING THE NECESSITY FOR DEVELOPMENT IMPACT FEES AND MAKE FINDINGS

RELATED TO IMPACT FEE BALANCES AND IN-LIEU FEES
Public Engagement
The Mitigation Fee Act requires that the city post notice of availability of the Draft Annual Report fifteen days prior to the Public Hearing. On October 30, 2025, the Legal Ad was published in the New Times, a notice was posted on the Finance door/ kiosk, a news item was published to City’s website, and an e-notification was sent to subscribers of Public Notices. The draft report posted to the city website has since been updated to include various clarifications throughout the report, corrected MASP Park Development Impact fee to its correct name Margarita Area Development Impact Fee, adjusted the estimated timing on construction for the Tank Farm Road Widening Project, and corrected inconsistencies to the timing of projects funded by the Airport Area Transportation Impact Fees. The version attached herein is the final version and replaces the draft version posted to city website.

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Item 6h

CONCURRENCE
The City Attorney’s Office, Finance, Public Works, Community Development, Parks and Recreation, and Utilities Departments concur with the information contained within this report.

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

FISCAL IMPACT
Budgeted: N/A Budget Year: N/A
Funding Identified: N/A
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
The action before City Council does not have any direct fiscal impact. The Annual Report of Development Impact Fees discloses to the public fee revenue, fee expenditures, fund balance, revenue held longer than five-years, and the status of projects for which the fee will be used. The administrative cost(s) to prepare this report and to manage the impact fee program is included in the salaries of staff and in the respective department budgets.

The City of San Luis Obispo recovers these costs by charging a 1.75% administrative fee through the permit process which is based on the total impact fee amount (excluding water & wastewater amounts).

ALTERNATIVES

1. Direct staff to refund fee revenue held more than five years. This alternative should only be considered if the findings presented by staff are found to be insufficient to meet the requirements of the Mitigation Fee Act. Refunding of impact fees held more than five years would create a monetary shortfall for the projects which are to be constructed and would ultimately need to be funded by other sources, such as the General Fund.

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Item 6h

2. Do not approve the Fiscal Year 2024-25 Development Impact Fee Annual Report (AB1600). Not approving the annual report would lead to non-compliance under the Mitigation Fee Act and could require refunding of certain impact fees collected and held more than five years creating a monetary shortfall for the projects which are to be constructed.

ATTACHMENTS
A - Draft Resolution adopting the Fiscal Year 2024-25 Development Impact Fee Annual Report (AB 1600)
B - Fiscal Year 2024-25 Development Impact Fee Annual Report (AB 1600)

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R ______
RESOLUTION NO._____ (2025 SERIES)

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS OBISPO, CALIFORNIA, ACCEPTING THE 2024-25 ANNUAL REPORT

ON DEVELOPMENT IMPACT FEES AND MAKING FINDINGS RELATED
TO DEVELOPMENT IMPACT FEES HELD LONGER THAN FIVE YEARS.

WHEREAS, the City of San Luis Obispo (“City”) has an established Development Impact Fee program and collects applicable impact fees pursuant to Municipal Code 4.56 and 4.20.140; and
WHEREAS, the documents reflecting the balance in each development impact fee fund or account, accrued interest in said fund or account, and the amount of expenditure by public facility for the fiscal year have been made available for public review as required by California Government Code section 66006; and
WHEREAS, the City is required to make certain findings every five years with respect to the unexpended fund balance of certain development impact fee funds pursuant to California Government Code section 66001; and WHEREAS, the “five-year findings” required by Government Code section 66001 are included in the 2024-25 Annual Report on Development Impact Fees.

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

SECTION 1. Recitals. All the above recitals are true and correct and are incorporated herein by this reference.

SECTION 2. Acceptance. The 2024-25 Annual Report on Development Impact Fees is hereby accepted.

SECTION 3. Findings. The findings made by staff within the 2024-25 Annual Report on Development Impact Fees related to fee revenue held for longer than five years are hereby accepted. The findings are summarized as follows:

1. Margarita Area Development Impact Fee (Fund 512) - As of June 30, 2025, there is $2,817,860.18 in revenue collected which has been held for more than five years. The fund balance is intended to be used for preconstruction activities (design, planning, permitting, etc.) and the overall construction costs for a twenty-one-acre community park located in the Margarita Area Specific Plan.

2. Airport Area Transportation Impact Fee (Fund 503) – The fund balance held more than five years is to be used for pre-construction activities (design, planning, permitting, etc.) for two transportation improvement projects

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Resolution No. _____ (2025 Series) Page 2
R ______
programmed in the AASP TIF program: Tank Farm Road Widening and Santa Fe Road Extension. Specifically, these funds will be used to reimburse Covelop, Inc. for costs related to transportation improvements required for the 600 Tank Farm development project and are also included in the Airport Area Transportation Impact Fee calculation.

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 November 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

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0 FISCAL YEAR 2024-25
City of San Luis Obispo, California
AB 1600

DEVELOPMENT

IMPACT FEE

ANNUAL REPORT

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1 Table of Contents
City of San Luis Obispo – Capital Facilities Fee Program ________________________________ Page 2 Revenue & Expense Summary for FY 2024-25 ________________________________________ Page 6 Fund Balance Summary for FY 2024-25 _____________________________________________ Page 7 Parks Improvement and Parkland Acquisition Impact Fees
Citywide Parkland Development Impact Fee Fund _______________________________ Page 9 Citywide Parkland Improvement Impact Fee Fund ______________________________ Page 10 Orcutt Area Park Impact Fee Fund ___________________________________________ Page 11 Margarita Area Impact Fee Fund ____________________________________________ Page 13 Transportation Impact Fees
Citywide Transportation Impact Fee Fund_____________________________________ Page 16 Airport Area Transportation Impact Fee Fund __________________________________Page 18 Los Osos Valley Road Transportation Impact Fee Fund ___________________________Page 20 San Luis Ranch Transportation Impact Fee Fund _______________________________ Page 22 Orcutt Area Transportation Impact Fee Fund __________________________________ Page 23 Wastewater and Water Impact Fees
Wastewater Impact Fee Fund ______________________________________________ Page 26 Water Impact Fee Fund ___________________________________________________ Page 27 Emergency Services Impact Fees
Fire Impact Fee Fund _____________________________________________________ Page 29 Police Impact Fee Fund ___________________________________________________ Page 30 In-Lieu Fees
Parkland In-Lieu Fee Fund _________________________________________________ Page 32 Open Space Protection In-Lieu Fee Fund ______________________________________Page 33 Affordable Housing Inclusionary In-Lieu Fee Fund ______________________________ Page 34 Parking In-Lieu Fee Fund __________________________________________________ Page 36 Public Art In-Lieu Fund ____________________________________________________Page 37 Exhibit A – Project Details List ___________________________________________________ Page 38 Exhibit B – Historical Project Expenditures _________________________________________ Page 43 Exhibit C – Fiscal Year 2024-25 Fee Amounts _______________________________________ Page 49

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2 City of San Luis Obispo – Capital Facilities Fee Program Overview of Fee Program
The City of San Luis Obispo’s Capital Facilities Fee Program, established in 2018, is managed as detailed in Municipal Code 4.56 and 4.20.140 and governed under California Government Code 66000-66025, also known as the Mitigation Fee Act. With authority granted under this Act, Development Impact Fees are imposed as a condition of approval upon new development and collected through the building permit process. The Development Impact Fees are established for use towards public facilities such as fire facilities, police facilities, transportation facilities, park facilities, water facilities, and wastewater facilities. The City of San Luis Obispo City Council has declared via Ordinance 1646 that development impact fees are required due to existing local, state and federal resources being insufficient to meet the capital improvement infrastructure and facility needs for new development. The City has a critical need to ensure that the impacts from new development are addressed.

Development Impact Fees are a commonly used financing mechanism to address this type of need.

Mitigation Fee Act - Overview
The Mitigation Fee Act sets forth the procedural requirements for establishing, collecting, and expending Development Impact Fees. These procedures require that a reasonable relationship, or nexus, must exist between a governmental exaction and the purpose of the condition. The Mitigation Fee Act applies to all local agencies in the state, including all general law and charter cities, (California Government Code 66000(c)), however, the Mitigation Fee Act does not apply to every fee or exaction collected by a local agency. The Mitigation Fee Act only applies when a local agency establishes, increases, or imposes a fee as a condition of approval of a development project to defray all or a portion of the cost of public facilities related to the project (California Government Code 66001). "Public Facilities" are defined to include public improvements, public services, and community amenities (California Government Code 66000(d)). Three key requirements of the Mitigation Fee Act that determine the structure, scope and amounts of the Development Impact Fee Program are:
o Development Impact Fee revenue must be collected and used to cover the cost of capital facilities and infrastructure that are required to serve only new development and future growth in the city. Fees cannot be used to cover cost of operation or maintenance of those facilities. o Development Impact Fee revenue can only be used to pay for new or expanded capital facilities needed to accommodate growth. Fees cannot be used to cover the cost of existing deficiencies. o Development Impact Fees must be based on a reasonable nexus between new development and the costs of capital facilities needed to accommodate future growth.

Definition of Fees which are Subject to the Mitigation Fee Act According to California Government Code Section 66000(b), a “Fee” means a monetary exaction other than a tax or special assessment, whether established for a broad class of projects by legislation of general applicability or imposed on a specific project on an ad hoc basis, that is charged by a local agency to the applicant in connection with approval of a development project for the purpose of defraying all or a portion of the cost of public facilities related to the development project, but does not include fees specified in Section 66477, fees for processing applications for governmental regulatory actions or approvals, fees collected under development agreements adopted pursuant to Article 2.5 (commencing with Section 65864) of Chapter 4, or fees collected pursuant to agreements with redevelopment agencies that provide for the redevelopment of property in furtherance or for the benefit of a redevelopment project for which a redevelopment plan has been adopted pursuant to the

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3 Community Redevelopment Law (Part 1 (commencing with Section 33000) of Division 24 of the Health and Safety Code). The City of San Luis Obispo has a total of eighteen fees which meet the definition and are the basis of this report.

Accounting Requirements for Development Impact Fees
The Mitigation Fee Act requires that Development Impact Fees collected by the City are to be deposited with the other fees for the improvement in separate capital facilities accounts or funds in a way to avoid any commingling of the fees with other revenues and funds. In addition, the City must expend those fees solely for the purpose for which the fee was collected. The facilities and maximum amounts to be funded by a specific fee’s revenue are specified in the Nexus Study calculating and adopting the fee and is summarized in Exhibits A and Exhibit B of this report. Any interest income earned in the capital facilities account or fund shall be deposited in that account or fund and shall be expended only for the purpose for which the fee was originally collected. The City maintains compliance with this requirement by establishing a dedicated fund for each type of fee and budgeting the expenditures to the required projects through the Capital Improvement Plan. (California Government Code 66006(a)).

Annual Report Requirements
The Mitigation Fee Act requires that for each separate account or fund established, the City shall within 180 days after the last day of each fiscal year make available to the public the following information for the prior fiscal year:
o A brief description of the type of fee in the account or fund. o The amount of the fee.
o The beginning and ending balance of the account or fund. o The amount of the fees collected, and the interest earned. o An identification of each public improvement on which fees were expended and the amount of the expenditures on each improvement, including the total percentage of the cost of the public improvement that was funded with fees.
o (a) An identification of an approximate date by which the construction of the public improvement will commence if the local agency determines that sufficient funds have been collected to complete financing on an incomplete public improvement, and the public improvement remains incomplete. (b) An identification of each public improvement identified in a previous report and whether construction began on the approximate date noted in the previous report (c) For a project identified pursuant to 6(b) for which construction did not commence by the approximate date provided in the previous report, the reason for delay and a revised approximate date that the local agency will commence construction.
o A description of each interfund transfer or loan made from the account or fund, including the public improvement on which the transferred or loaned fees will be expended, and, in the case of an interfund loan, the date on which the loan will be repaid, and the rate of interest that the account or fund will receive on the loan.
o The amount of refunds made, the number of persons or entities identified to receive those refunds, and any allocations pursuant to Section (f) of Government Code 66001.

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4 Five Year Revenue Analysis Requirements
The Mitigation Fee Act also requires that each fee collected to mitigate a specific impact must be spent within five years of collection. If the fee is held beyond this time frame due to specific circumstances or insufficient collection for the improvements needed, the City must make specific findings to continue holding the fees.

Otherwise, if the findings are not made or if the findings are deemed to be insufficient the fees are subject to refund. The requirements for the findings that must be made for funds held more than five years are as follows:
o Identify the purpose for which the fee is to be put.
o Demonstrate a reasonable relationship between the fee and the purpose for which it is charged. o Identify all sources and amounts of funding anticipated to complete financing in incomplete improvements identified.
o Designate the approximate dates on which the funding referred to in item 3 is expected to be deposited into the appropriate account or fund.

Fee Program Updates
To maintain compliance with the Mitigation Fee Act, it is recommended that every eight years an update to the Development Impact Fees be completed through a Nexus Study to determine the maximum level of fees that can be attributed to new development and do not impede or burden new development from occurring. In addition, periodic reviews and updates to fee calculations shall be completed upon receipt of updated cost estimates or changes to the scope of the projects to minimize the risk of inadequate funding and ensure sufficient fees are collected to fund the project. Below is summary of the most recent updates to the fee program. The City will soon be moving forward with a study to update all Development Impact Fees.

NOTE: Impact Fees are escalated by inflation each year. The City currently uses the annual change (April to April) to the California Cost of Construction Index (CCCI). Annual increases are effective July 1st.

Fund Fee Name Established Last Updated
510 Citywide Park Development 4/3/2018 4/3/2018
519 Citywide Park Improvement 4/3/2018 4/3/2018
511 OASP Park Improvement 3/2/2010 11/15/2016
512 Margarita Area Development 2/1/2005 Discontinued
507 Citywide Transportation 4/3/2018 7/2/2019
503 Airport Area Transportation 8/23/2005 Discontinued
504 LOVR Area Transportation 4/3/2018 7/2/2019
514 San Luis Ranch Area Transportation 4/3/2018 7/2/2019 515 OASP Area Transportation 3/2/2010 10/16/2018
506 Wastewater 4/3/2018 6/4/2019
509 Water 4/3/2018 4/3/2018
516 Fire 4/3/2018 4/3/2018
517 Police 4/3/2018 4/3/2018
501 Parkland In-Lieu (Quimby) 4/3/2018 4/3/2018
502 Open Space Protection In-Lieu 8/23/2005 Discontinued 505 Affordable Housing In-Lieu 1/19/1999 8/16/2022
611 Parking In-Lieu 9/3/2002 1/3/2006
207 Public Art In-Lieu 8/15/2000 9/18/2018

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5 Public Noticing
As required by the Mitigation Fee Act, this Annual Report of Development Impact Fees was made available for public inspection 15 days prior to the City Council’s public meeting. On October 30, 2025, a Legal Ad was published in the New Times, a notice was posted on the Finance door/ kiosk, a news item was published to City’s website, an e-notification was sent to subscribers of Public Notices, and a copy of the Draft Report was posted to the City Website.

Administration Fee
Included in the establishment of the 2018 Capital Facilities Fee Program, the City Council adopted an Administration Fee, allowed for by the provisions of the Mitigation Fee Act, for the cost of administering the impact fee program. Administration requirements include collecting and allocating impact fee revenue, record keeping, reporting of fund activity, and periodic updates to the fee program. The Administration Fee is included in the 2018 Impact Fee Nexus Study calculation of the maximum Capital Facilities Fees that can be charged to new development. The fee is currently set at 1.75% of the total impact fees charged on a permit (excluding water and wastewater impact fees). The revenue is deposited to the General Fund and allocated for expenditure on annual budgets.

Annual Report
This report provides a comprehensive summary of the individual fund activity for FY 2024-25 and is prepared to meet the requirements of the Mitigation Fee Act as specified above. Fund balances reflected in this report are as of June 30, 2025, based on unaudited financial information. A summary of the exhibits and their purpose for inclusion in the report can be found below.
o Project Details: Exhibit A reflects a complete detailed list of projects which are being funded by impact fees collected and reported on through this annual report. Details of projects include Construction Start Date, Project Status, Total Estimated Project Cost, Estimated Project Cost Funded by Fees, Percentage of Project Funded by Fees, Fees Expended to Date, and the Percentage of Fees Funded. o Historical Expenditure Amounts: Exhibit B reflects a complete detailed list of projects for which expenses were incurred since FY 2018-19. Each fund’s expenditure is organized by fiscal year and summarize the total contributions for a given project over the past 7 years. o Fee Schedule: Exhibit C reflects the applicable amount of impact fees and in-lieu fees charged to new development and collected through the building permit process as conditions of approval in FY 2024-25.

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6 Revenue and Expense Summary for FY 2024-25
Impact Fee Revenue and Expense Summary
For FY 2024-25 the City of San Luis Obispo collected through its Capital Facilities Fee program, a total of $11,333,645.95 and expended $5,546,263.85 on eligible projects throughout the city. The impact fee revenue helped to advance construction on thirty-five projects in the city which included 3 parks projects, 14 transportation projects, and 18 utility projects. Refer to Exhibit A and Exhibit B for details on projects funded by impact fees.

In-Lieu Fee Revenue and Expenses Summary
For FY 2024-25 the City of San Luis Obispo collected through its In-Lieu Fee programs a total of $941,209.99 and expended $2,692,546.36 on eligible projects throughout the city. The In-Lieu fee revenue helped to advance construction on six projects in the city which included two park projects, 1 parking project, and 2 public art projects. Refer to Exhibit A and Exhibit B for details on projects funded by In-Lieu fee funds.

Fund Name Revenue/ Interest Expenditures # of Projects
510 Citywide Park Development $ 267,469.74 $ - 0
519 Citywide Park Improvement $ 240,241.20 $ 173,119.86 1 511 OASP Park Improvement $ 186,753.91 $ 245,981.47 2
512 Margarita Area Development $ 162,040.26 $ - 0
507 Citywide Transportation $ 1,798,621.90 $ 739,340.93 10 503 Airport Area Transportation $ 13,592.12 $ 234,242.23 3 504 LOVR Area Transportation $ (52,452.58) $ 566,787.71 1 514 San Luis Ranch Area Transportation $ 448,783.75 $ - 0 515 OASP Area Transportation $ 391,555.04 $ - 0
506 Wastewater $ 2,729,022.70 $ 943,559.30 6
509 Water $ 4,843,918.78 $ 2,643,232.35 12
516 Fire $ 112,691.28 $ - 0
517 Police $ 191,407.85 $ - 0
$ 11,333,645.95 $ 5,546,263.85 35
Fund Name Revenue/ Interest Expenditures # of Projects
501 Parkland In-Lieu (Quimby) $ 117,103.04 $ 1,759,459.54 3 502 Open Space Protection In-Lieu $ 86,786.60 $ - 0
505 Affordable Housing In-Lieu $ 297,945.78 $ 207,000.00 0 611 Parking In-Lieu $ - $ 317,995.41 1
207 Public Art In-Lieu $ 439,374.57 $ 408,091.41 2
$ 941,209.99 $ 2,692,546.36 6

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7 Fund Balance Summary for FY 2024-25
The figures below represent the fund balances available as of 6/30/2025, whether committed or uncommitted to a Capital Improvement Plan project and serve to illustrate the amount of funding from impact fees and in-lieu fees available to budget and expend on projects through the City’s adopted Capital Improvement Plan. In addition, any revenue held forlonger than five years is reflected to show the amount of the available fund balance that is subject to findings. The five-year revenue analysis for all funds and the required findings for the Margarita Area Development Impact Fee and the Airport Area Transportation Impact Fee revenue held for more than five years is included within this report under the individual fund summaries. The findings apply to the Margarita Area Development Impact Fee (Fund 512) and the Airport Area Transportation Impact Fee (Fund 503).

Impact Fee Fund Balance Summary
In-Lieu Fee Fund Balance Summary
Fund Name Fund Balance Revenue Held > 5-Years
510 Citywide Park Development $ 968,939.59 $ -
519 Citywide Park Improvement $ 2,040,551.64 $ -
511 OASP Park Improvement $ 2,056,785.98 $ -
512 Margarita Area Development $ 3,454,600.12 $ 2,817,860.18 507 Citywide Transportation $ 5,488,500.91 $ -
503 Airport Area Transportation $ 162,943.21 $ 132,691.31 504 LOVR Area Transportation $ (2,452.56) $ -
514 San Luis Ranch Area Transportation $ 2,606,606.76 $ - 515 OASP Area Transportation $ 1,864,800.06 $ -
506 Wastewater $ 5,799,629.03 $ -
509 Water $ 6,851,326.63 $ -
516 Fire $ 393,732.58 $ -
517 Police $ 543,411.50 $ -
Fund Name Fund Balance Revenue Held > 5-Years
501 Parkland In-Lieu (Quimby) $ 351,517.50 $ -
502 Open Space Protection In-Lieu $ 100,484.32 $ -
505 Affordable Housing In-Lieu $ (2,639,233.06) $ -
611 Parking In-Lieu $ - $ -
207 Public Art In-Lieu $ 1,557,870.95 $ -

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8 Park Improvement and Parkland Acquisition Impact Fees

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9 Citywide Park Development Impact Fee – Fund 510
The Citywide Park Development Impact Fee was established in 2018 as part of the Capital Facilities Development Impact Fee Nexus Study and adopted by Resolution No. 10879 to sustain current levels of parkland to new development within the city. This impact fee is intended to be used on acquisition of parkland for all areas of the City.

Starting in FY 2020-21, a reorganization of the impact fees funds was approved to facilitate the accounting, controlling, and reporting of development impact fees. Fund 510 was created to separate the accounting of Citywide Parkland Development impact fees from Quimby In-Lieu fees, Fund 501. Transfers of $317,753.15 from the Parkland In-Lieu Quimby Fee Fund were attributed to FY 2019-20 as a prior period adjustment.

As of June 30, 2025, the fund balance available for expenditure was $968,939.59. There have been no expenditure from this fund since inception. Refer to Exhibit A and Exhibit B for details of projects funded by this fee. Fund balance is currently being held until a need for acquisition of parkland is identified. As of June 30, 2025, there were no funds collected that had been held for more than five years.
510 - Citywide Park Development Impact Fee Fund FY 20-21 FY 21-22 FY 22-23 FY 23-24 FY 24-25 Fund Balance Beginning of Year $ - $ 549,433.00 $ 658,029.82 $ 854,358.99 $ 1,246,760.12 Prior Period Adjustment (1) $ 317,753.15 $ - $ - $ - $ - Fund Balance Beginning of Year After Adjustment $ 317,753.15 $ 549,433.00 $ 658,029.82 $ 854,358.99 $ 1,246,760.12 Interest $ 87.97 $ (13,137.64) $ 10,395.73 $ 49,077.72 $ 67,165.64 Impact Fees $ 231,591.88 $ 121,734.46 $ 185,933.44 $ 343,323.41 $ 200,304.10 Total Revenue $ 231,679.85 $ 108,596.82 $ 196,329.17 $ 392,401.13 $ 267,469.74 Expenses $ - $ - $ - $ - $ -
Transfers Out $ - $ - $ - $ - $ -
Total Expenditures $ - $ - $ - $ - $ -
Fund Balance End of Year $ 549,433.00 $ 658,029.82 $ 854,358.99 $ 1,246,760.12 $ 1,514,229.86 Interest Receivable - Long Term Loans (2) $ - $ - $ - $ 83,693.01 $ 98,463.84 Less Loans Receivable (3) $ - $ 446,826.43 $ 446,826.43 $ 446,826.43 $ 446,826.43 Net Fund Balance End of Year $ 549,433.00 $ 211,203.39 $ 407,532.56 $ 716,240.68 $ 968,939.59 Net Fund Ending Balance (6/30/25) $ 968,939.59
Less: Revenues for last five years:

Revenues FY 20-21 $ 231,679.85
Revenues FY 21-22 $ 108,596.82
Revenues FY 22-23 $ 196,329.17
Revenues FY 23-24 $ 392,401.13
Revenues FY 24-25 $ 267,469.74
Total Revenues for last five years $ 1,196,476.71
Funds Held in Excess of Five Years $ (227,537.12) if positive, then subject to findings Notes
Five Year Revenue Analysis
(1) Prior Period Adjustment related to transfer in from Fund 501 attributed to FY 2019/ 2020. (2) Interest Receivable - Long Term Loans is related to interest on deferred payment of impact fees related to affordable housing developments and reduces the amount of available funding.
(3) Loans Receivable are related to deferred payment of impact fees related to affordable housing developments and reduces the amount of available funding.

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10 Citywide Park Improvement Impact Fee – Fund 519
The Citywide Park Improvement Impact Fee was established in 2018 as part of the Capital Facilities Development Impact Fee Nexus Study and adopted by Resolution No. 10879 to sustain current levels of park service to new development within the City. This impact fee is intended to be used on the improvement of facilities for existing and newly acquired parkland intended for all areas of the city.

Starting in FY 2020-21, a reorganization of the impact fee funds was approved to facilitate the accounting, controlling, and reporting of development impact fees. Fund 519 was created to separate the accounting of citywide park improvement impact fees from Quimby In-Lieu fees, Fund 501. Transfers of $320,032.52 from the Parkland In-Lieu Quimby Fee Fund were attributed to FY 2019-20 as a prior period adjustment.

As of June 30, 2025, the fund balance available for expenditure was $2,040,551.64. Expenditures from fund balance totaled $173,119.86 in FY 2024-25. Refer to Exhibit A and Exhibit B for details of projects which are funded with this fee. As of June 30, 2025, there were no funds collected that had been held for more than five years. 519 - Citywide Park Improvement Impact Fee Fund FY 20-21 FY 21-22 FY 22-23 FY 23-24 FY 24-25 Fund Balance Beginning of Year $ - $ 837,762.15 $ 1,008,615.38 $ 1,421,721.92 $ 2,176,584.18 Prior Period Adjustment (1) $ 320,032.52 $ - $ - $ - $ - Fund Balance Beginning of Year After Adjustment $ 320,032.52 $ 837,762.15 $ 1,008,615.38 $ 1,421,721.92 $ 2,176,584.18 Interest $ 108.72 $ (20,015.16) $ 16,423.70 $ 84,786.78 $ 106,954.79 Impact Fees $ 517,620.91 $ 190,868.39 $ 396,682.84 $ 721,791.61 $ 133,286.41 Total Revenue $ 517,729.63 $ 170,853.23 $ 413,106.54 $ 806,578.39 $ 240,241.20 Expenses $ - $ - $ - $ 51,716.13 $ 173,119.86
Transfers Out $ - $ - $ - $ - $ -
Total Expenditures $ - $ - $ - $ 51,716.13 $ 173,119.86 Fund Balance End of Year $ 837,762.15 $ 1,008,615.38 $ 1,421,721.92 $ 2,176,584.18 $ 2,243,705.52 Accounts Receivable - SCIP Impact Fee Distributions(2) $ - $ - $ - $ 60,755.74 $ - Less Interest Receivable - Long Term Loans (3) $ - $ - $ - $ 9,960.45 $ 13,944.91 Less Loans Receivable (4) $ - $ 82,806.89 $ 82,806.89 $ 203,153.88 $ 203,153.88 Net Fund Balance End of Year $ 837,762.15 $ 925,808.49 $ 1,338,915.03 $ 1,973,430.30 $ 2,040,551.64 Net Fund Ending Balance (6/30/25) $ 2,040,551.64
Less: Revenues for last five years:

Revenues FY 20-21 $ 517,729.63
Revenues FY 21-22 $ 170,853.23
Revenues FY 22-23 $ 413,106.54
Revenues FY 23-24 $ 806,578.39
Revenues FY 24-25 $ 240,241.20
Total Revenues for last five years $ 2,148,508.99
Funds Held in Excess of Five Years $ (107,957.35) if positive, then subject to findings Notes
Five Year Revenue Analysis
(1) Prior Period Adjustment related to transfer in from Fund 501 attributed to FY 2019/ 2020. (2) Accounts Receivable are impact fees due to City through the Statewide Community Infrastructure Program (SCIP) financing for the San Luis Square Project. (3) Interest Receivable - Long Term Loans is related to interest on deferred payment of impact fees related to affordable housing developments and reduces the amount of available funding.
(4) Loans Receivable are related to deferred payment of impact fees related to affordable housing developments and reduces the amount of available funding.

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11 Orcutt Area Specific Plan Parks Impact Fee – Fund 511 The Orcutt Area Specific Plan Parks Impact Fee was established in March 2010 by Resolution No. 10222 for the improvement of the Orcutt Area Specific Plan (OASP) parks system. This fee created a funding mechanism to allocate 100% of the cost of the park improvements to the OASP developers. Specifically, Chapter 8 of the Public Facilities Financing Plan (PFFP) for the OASP provides a detailed description of the park improvements, allocates the cost to developers and provides a funding plan for the parks needed to serve new development in this area.

The OASP PFFP was originally established in March 2010, and revised in November 2016, December 2017, and most recently October 2018 to update costs of infrastructure estimates and to revise the scope of certain capital improvement projects within the PFFP. Details regarding the park plan were only included in the 2016 update.

Starting in FY 2020-21, a reorganization of the impact fees funds was approved to facilitate the accounting, controlling, and reporting of development impact fees. Fund 511 was created to separate the accounting of Orcutt Area Specific Plan Parks Impact Fees from Quimby In-Lieu fees, Fund 501. Transfers of $1,355,409.52 from the Parkland In-Lieu Quimby Fee Fund were attributed to FY 2018-19 and FY 2019-20 as prior period adjustments.

As of June 30, 2025, the fund balance available for expenditure was $2,056,785.98. Expenditures from fund balance totaled $245,981.47. Refer to Exhibit A and Exhibit B for details of projects which are funded with this fee. As of June 30, 2025, there were no funds collected that had been held for more than five years.

Reimbursements paid from this fund in FY 2020-21 and FY 2021-22 are associated with the parkland dedicated by the Righetti Ranch, LPDeveloper, under the Quimby Act, on behalf of the entire Orcutt Area. Since Righetti Ranch dedicated all the parkland needed for the Orcutt Area, the City agreed to enter into the Parkland Reimbursement Agreement in which the City collects a fair share allocation from benefiting properties within the Orcutt Area and passes through the fee collected as reimbursement to Righetti Ranch for dedication of parkland. These reimbursements were considered pass through payments collected from benefiting properties and no impact fees were used to satisfy the private obligations under the Parkland Reimbursement Agreement. The City has recently taken steps to separate the accounting of Impact Fees and Reimbursement Fees, therefore, future reimbursements to Righetti Ranch under the Parkland Reimbursement Agreement will be collected and passed through a separate custodial fund which has been established specifically for purpose of reimbursement to Righetti Ranch, LP.

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12 511 - Orcutt Area Specific Plan Parks Impact Fee Fund FY 20-21 FY 21-22 FY 22-23 FY 23-24 FY 24-25 Fund Balance Beginning of Year $ - $ 2,248,529.96 $ 2,043,551.64 $ 2,323,855.42 $ 2,116,013.54 Prior Period Adjustment (1) $ 1,355,409.52 $ - $ - $ - $ - Fund Balance Beginning of Year After Adjustment $ 1,355,409.52 $ 2,248,529.96 $ 2,043,551.64 $ 2,323,855.42 $ 2,116,013.54 Interest $ 377.92 $ (51,550.30) $ 30,226.87 $ 100,569.30 $ 102,398.83 Impact Fees $ 1,277,619.60 $ 130,976.42 $ 327,160.19 $ 132,780.71 $ 84,355.08 Total Revenue $ 1,277,997.52 $ 79,426.12 $ 357,387.06 $ 233,350.01 $ 186,753.91 Expenses $ - $ - $ 77,083.28 $ 441,191.89 $ 245,981.47
Reimbursements $ 366,800.56 $ 284,404.44 $ - $ - $ -
Transfers Out $ 18,076.52 $ - $ - $ - $ -
Total Expenditures $ 384,877.08 $ 284,404.44 $ 77,083.28 $ 441,191.89 $ 245,981.47 Fund Balance End of Year $ 2,248,529.96 $ 2,043,551.64 $ 2,323,855.42 $ 2,116,013.54 $ 2,056,785.98 Less Loans Receivable $ - $ - $ - $ - $ -
Net Fund Balance End of Year $ 2,248,529.96 $ 2,043,551.64 $ 2,323,855.42 $ 2,116,013.54 $ 2,056,785.98 Net Fund Ending Balance (6/30/25) $ 2,056,785.98
Less: Revenues for last five years:

Revenues FY 20-21 $ 1,277,997.52
Revenues FY 21-22 $ 79,426.12
Revenues FY 22-23 $ 357,387.06
Revenues FY 23-24 $ 233,350.01
Revenues FY 24-25 $ 186,753.91
Total Revenues for last five years $ 2,134,914.62
Funds Held in Excess of Five Years $ (78,128.64) if positive, then subject to findings Notes
Five Year Revenue Analysis
(1) Prior Period Adjustment related to Transfers in from Fund 501: FY $430,022 FY 19-20; $925,388 FY 18-19

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13 Margarita Area Development Impact Fee – Fund 512
The Margarita Area Specific Plan Parks Impact fee was established in 2005 and adopted by Resolution No. 9643 for the Margarita Area Park design and construction, including construction management as set forth in Chapter 9 of the Margarita Area Specific Plan under the Public Facilities Financing Plan. Funds may also be used to reimburse the City for expenses advanced by other sources to pay for design and construction or may be used to reimburse developers who have been required to construct park facilities and improvements beyond their fair share. While the fee has been discontinued, the fund is still active to properly account for the fees that were collected in the past and that must be used specifically on the park system in the Margarita Area Specific Plan.

Starting in FY 2020-21, a reorganization of the impact fee funds was approved to facilitate the accounting, controlling, and reporting of development impact fees. Fund 512 was created to separate the accounting of Margarita Area Park Impact Fees from Quimby in-lieu fees, Fund 501. Transfers of $1,313,184.10 from the Parkland In-Lieu Quimby Fee Fund have been attributed to fiscal years prior to 2018-19 as a prior period adjustment.

As of June 30, 2025, the fund balance available for expenditure was $3,454,600.12. There have been no expenditure from this fund since inception. Refer to Exhibit A and Exhibit B for details of projects which are funded with this fee. Fund balance is currently being held to be used for the planned park systemin the Margarita Area Specific Plan. As of June 30, 2025, there was $2,817,860.18 which had been held for more than five years.

Interfund Loan: The Interfund Loan shown in the table below was authorized by Resolution No. 10513 (2014 Series) in the amount of $1,504,676.08 to advance early reimbursement/ credit of Prado Road improvement costs from the Margarita Area Development Impact Fee fund. Funds were loaned from MASP Transportation Impact Fee Fund (now consolidated with the Citywide Transportation Impact Fee Fund) to accommodate the reimbursement of funds advanced from other sources. Final reconciliation for loan repayment occurred in FY 2023-24 and the loan has been paid in full along with interest, at a rate of average return for City investments.

Five Year Findings: As of June 30, 2025, there is $2,817,860.18 in revenue collected which has been held for more than five years. The fund balance is intended to be used for pre-construction activities (design, planning, permitting, etc.) and the overall construction costs for a twenty-one-acre community park located in the Margarita Area Specific Plan area.

The use of these funds for a park in the Margarita Area is in conformance with the Margarita Area Specific Plan and the Parks & Recreation Blueprint for the Future: 2021-2041 (General Plan Element) and allows the City to meet the need for a community park that includes sport/athletic fields, sport courts, playground amenities, public art, and social gathering area(s). In 2005 the need for the park was identified in the Margarita Area Specific Plan and the financing strategy was identified in the Public Facilities Financing Plan for Margarita Area. The plan was amended in 2012 to adjust the equitable sharing of the cost of the purchase and construction of the DamonGarcia Sports Fields, which is satisfying a portion of the park needs in the Margarita Area.

The table below reflects the overall funding sources and amount anticipated to cover the costs of the future park project in the Margarita Area.

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14 The total cost of the park project was originally estimated using a 2012 calculation and was the basis for fee amounts. Since this time, costs to construct the park have significantly increased and therefore to establish the current total cost, the City applied a onetime Consumer Price Index (CPI) adjustment from 2012 to 2024 and annually thereafter.

At this time, the project is on hold because the identified land, zoned for park space, is privately owned, and the current owners are not interested in selling or developing the property. The City remains committed to using the funds collected for the MASP park whenever the landowners decide to sell or develop the site. Additionally, the project faces a lack of funding sources, and the City will need to cover a substantial amount of the project costs with other yet-to-be-determined funding sources. Currently, no construction start date has been identified.

Current Development
Impact Fees
%
Other Funding
Sources (1) %
Margarita Area Community Park $ 3,454,600.12 21% $ 12,621,328.58 79% $16,075,928.70 100% Project Total %
Cost by Fund Source
(1) Other funding sources will include Citywide Parkland Improvement Impact Fees, Quimby In-Lieu Fees, General Fund (Local Revenue Measure G) and/or Future Grants
512 - Margarita Area Development Impact Fee Fund FY 20-21 FY 21-22 FY 22-23 FY 23-24 FY 24-25 Fund Balance Beginning of Year $ - $ 1,632,841.88 $ 1,668,914.59 $ 1,688,634.64 $ 3,292,559.86 Prior Period Adjustment (1) $ 1,313,184.10 $ - $ - $ - $ - Interfund Loan from Fund 507 (2) $ - $ - $ - $ 1,504,676.08 $ - Fund Balance Beginning of Year After Adjustment $ 1,313,184.10 $ 1,632,841.88 $ 1,668,914.59 $ 3,193,310.72 $ 3,292,559.86 Interest $ 269.64 $ (38,916.34) $ 19,685.31 $ 99,249.14 $ 162,040.26 Impact Fees $ 319,388.14 $ 74,989.05 $ 34.74 $ - $ -
Total Revenue $ 319,657.78 $ 36,072.71 $ 19,720.05 $ 99,249.14 $ 162,040.26 Expenses $ - $ - $ - $ - $ -
Transfers Out $ - $ - $ - $ - $ -
Total Expenditures $ - $ - $ - $ - $ -
Fund Balance End of Year $ 1,632,841.88 $ 1,668,914.59 $ 1,688,634.64 $ 3,292,559.86 $ 3,454,600.12 Less Loans Receivable $ - $ - $ - $ - $ -
Net Fund Balance End of Year $ 1,632,841.88 $ 1,668,914.59 $ 1,688,634.64 $ 3,292,559.86 $ 3,454,600.12 Net Fund Ending Balance (6/30/25) $ 3,454,600.12
Less: Revenues for last five years:

Revenues FY 20-21 $ 319,657.78
Revenues FY 21-22 $ 36,072.71
Revenues FY 22-23 $ 19,720.05
Revenues FY 23-24 $ 99,249.14
Revenues FY 24-25 $ 162,040.26
Total Revenues for last five years $ 636,739.94
Funds Held in Excess of Five Years $ 2,817,860.18 if positive, then subject to findings Notes
Five Year Revenue Analysis
(1) Prior Period Adjustment for FY 20-21 related to Transfers in from Fund 501: $354,240 FY 17-18; $958,944 prior to 2017. (2) $1,504,676.08 is related to Interfund Loan repayment from Fund 507.

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15 Transportation Impact Fees

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16 Citywide Transportation Impact Fee – Fund 507
The Citywide Transportation Impact Fee was established in 2018 as part of the Capital Facilities Development Impact Fee Nexus Study and adopted by Resolution No. 10879 to help maintain adequate levels of transportation facilitiesin the city by mitigating the impacts that new development will have on the City’s transportation system.

Fee revenue is used to fund transportation improvements such as interchanges, intersections, street widening and extensions, pedestrian and bicycle improvements, transit improvements and is also used for reimbursements to developers for improvements they constructed which exceed their fair share and are also included in the City’s Transportation Impact Fee program.

As of June 30, 2025, the fund balance available for expenditure was $5,488,500.91. Expenditures from fund balance totaled $739,340.93 in FY 2024-25, refer to Exhibit A and Exhibit B for details of projects which are funded with this fee. As of June 30, 2025, there were no funds collected that had been held for more than five years.

Transfers Out: There is an annual Transfer Out of fees collected for reimbursement to the General Fund for direct costs incurred for debt service associated with the Los Osos Valley Road Interchange. The City Council has authorized the use of Traffic Impact Fees to finance at least half of the cost of the annual debt service payments.

The transfer is annually assessed through the City’s Cost Allocation Plan and transfers are made in quarterly installments. For FY 2024-25, an amount of $280,000 was transferred and used on debt service payments related to the LOVR Interchange completed project. Final debt payments associated with this transfer of funds will be FY 2044-45.

Interfund Loan #1: There was an Interfund Loan which was authorized by Resolution No. 10513 (2014 Series) in the amount of $1,504,676.08 to advance early reimbursement/credit of Prado Road improvement costs from the Margarita Area Development Impact Fee fund. Funds were loaned from MASP Transportation Impact Fee Fund (now consolidated to the Citywide TIF Fund) to accommodate the reimbursement of funds advanced from other sources. Final reconciliation for loan repayment occurred in FY 2023-24 and the loan has been paid in full along with interest, at a rate of average return for City investments.

Interfund Loan #2: LOVR Subarea Citywide Base Fees in the amount of $67,478.34 were deposited to the LOVR Transportation Impact Fee Fund (504) in error during FY 2024-25. The revenue should have been received by the Citywide Transportation Impact Fee Fund (507). Therefore, to reconcile and correct the error, an interfund loan has been established as a short-term liability which will ensure the correct revenue amounts are received by Fund 507. Payback of the interfund loan is expected to occur during FY 2025-26 at a 0% rate of interest.

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17 507 - Citywide Transportation Impact Fee Fund FY 20-21 FY 21-22 FY 22-23 FY 23-24 FY 24-25 Fund Balance Beginning of Year $ 8,655,656.59 $ 9,524,297.08 $ 7,031,866.19 $ 7,100,279.50 $ 6,100,162.30 Prior Period Adjustment (1) $ (3,151.00) $ - $ - $ - $ - Interfund Loan Repayment (2) $ - $ - $ - $ (1,504,676.08) $ - $ 8,652,505.59 $ 9,524,297.08 $ 7,031,866.19 $ 5,595,603.42 $ 6,100,162.30 Interest $ 2,509.13 $ (236,023.88) $ 82,951.89 $ 315,953.58 $ 301,827.84 Misc. Revenue $ - $ - $ - $ - $ -
Impact Fees $ 3,065,469.58 $ 1,715,908.93 $ 1,369,546.11 $ 899,741.83 $ 1,496,794.06 Total Revenue $ 3,067,978.71 $ 1,479,885.05 $ 1,452,498.00 $ 1,215,695.41 $ 1,798,621.90 Expenses $ 1,542,832.20 $ 3,380,159.86 $ 1,104,084.69 $ 390,536.53 $ 459,340.93 Reimbursements $ 367,755.02 $ 312,156.08 $ - $ - $ -
Transfers Out $ 285,600.00 $ 280,000.00 $ 280,000.00 $ 320,600.00 $ 280,000.00 Total Expenditures $ 2,196,187.22 $ 3,972,315.94 $ 1,384,084.69 $ 711,136.53 $ 739,340.93 Fund Balance End of Year $ 9,524,297.08 $ 7,031,866.19 $ 7,100,279.50 $ 6,100,162.30 $ 7,159,443.27 Less Interest Receivable - Long Term Loans (3) $ - $ - $ - $ 163,432.04 $ 201,536.10 Less Loans Receivable (4) $ - $ 1,164,368.13 $ 1,164,368.13 $ 1,401,927.92 $ 1,401,927.92 Interfund Loan Receivable (5) $ - $ - $ - $ - $ 67,478.34 Net Fund Balance End of Year $ 9,524,297.08 $ 5,867,498.06 $ 5,935,911.37 $ 4,534,802.34 $ 5,488,500.91 Net Fund Ending Balance (6/30/25) $ 5,488,500.91
Less: Revenues for last five years:

Revenues FY 20-21 $ 3,067,978.71
Revenues FY 21-22 $ 1,479,885.05
Revenues FY 22-23 $ 1,452,498.00
Revenues FY 23-24 $ 1,215,695.41
Revenues FY 24-25 $ 1,798,621.90
Total Revenues for last five years $ 9,014,679.07
Funds Held in Excess of Five Years $ (3,526,178.16) if positive, subject to findings Notes
(1) Prior Period Adjustment related to transfer in from Fund 501 attributed to FY 2019/ 2020. (2) $1,504,676.08 is related to Interfund Loan repayment from Fund 507. (3) Interest Receivable - Long Term Loans is related to interest on deferred payment of impact fees related to affordable housing developments and reduces the amount of available funding.
(4) Loans Receivable are related to deferred payment of impact fees related to affordable housing developments and reduces the amount of available funding. (5) Interfund Loan to Fund 504, LOVR TIF.

Five Year Revenue Analysis Page 284 of 551
18 Airport Area Transportation Impact Fee – Fund 503
The Airport Area Transportation Impact Fee was established in 2005 by Resolution No. 9727 for the expansion of transportation facilities in the Airport Area Specific Plan (AASP) boundaries. The fees are intended to be used on Tank Farm Road Median Improvements, Unocal Local Road, Santa Fe Extension, Buckley Extension, and Bike Paths in the Airport Area. In addition, these funds can be used to reimburse the City for funds advanced from other sources or to reimburse developers who have been required to construct improvements beyond their fair share, and those improvements costs are also included in the Airport Area Transportation Fee calculation. In 2018, the City Council adopted Resolution No. 10879 that consolidated the Airport Area Transportation Impact Fee into the Citywide Transportation Impact Fee Program. Although the Airport Area Transportation Impact Fee has been discontinued, the fund is still active to properly account for the fees that were collected that must be used on transportation projects in the Airport Area Specific Plan.

As ofJune 30, 2025, the fund balance available for expenditure was $162,943.21. Expendituresfrom fund balance totaled $234,242.23 in FY 2024-25, refer to Exhibit A and Exhibit B for details of projects which are funded with this fee. In FY 2023-24, expenditures included a reimbursement payment in the amount of $127,951.77 which is associated with the 600 Tank Farm Reimbursement Agreement between the City of San Luis Obispo and Covelop, Inc.

As of June 30, 2025, there was a balance of $132,691.31 which has been held for more than five years.

Five Year Finding:

The fund balance held more than five years is to be used for pre-construction activities (design, planning, permitting, etc.) for two transportation improvement projects programmed in the AASP TIF program: Tank Farm Road Widening (including the Tank Farm/Santa Fe Roundabout, and shared-use path between Santa Fe and Innovation Way) and Santa Fe Road Extension north of Tank Farm Road. Specifically, these funds will be used to reimburse Covelop, Inc. for costs related to transportation improvements required for the 600 Tank Farm development project and are also included in the Airport Area Transportation Impact Fee calculation.

As conditions of approval of the project, the 600 Tank Farm developer is required to design and construct portions of the Tank Farm Road Widening and Santa Fe Road Extension (North) improvements prior to their development projects construction of units. As documented in detail in the AASP and its related EIR, the Tank Farm Widening and Santa Fe Road Extension projects represent transportation infrastructure that is needed to mitigate the impacts of new development within the city, particularly within the AASP boundaries. The proportionality and nexus to new development is described in further detail in the AASP (Chapter 8, Public Facilities Financing Plan).

Below is a list of projects on which the fees collected will be used and the anticipated amount of funding from all sources needed to complete the financing of these projects.

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19 The Tank Farm Road Widening and Santa Fe Road Extension projects are large, complex transportation improvements that are anticipated to be constructed in phases over several years as incremental development occurs. Funding is expected to be completed for the remaining projects as identified in the following timelines:
o For the Tank Farm Road Widening Project, funding for the first components of the project that are the responsibility of the 600 Tank Farm development, is expected to be available by 2026, and associated improvements could be constructed as soon as 2027. These first components of the Project include design/pre-construction costs for the future Tank Farm Road/Santa Fe Roundabout and Tank Farm Road shared-use path (not constructed with 600 Tank Farm development), and a portion of the construction costs associated with widening of Tank Farm Road at the intersection with Santa Fe (constructed by 600 Tank Farm development). Funding and construction for the remaining project components, including construction of the Tank Farm/Santa Fe Roundabout, construction of the Tank Farm shared-use path and further widening of Tank Farm Road, are dependent on future development within the AASP area, which could reasonably occur within the next 5-15 years. o For the Santa Fe Road Extension (North) Project, funding for the first component of the project, which will be constructed by 600 Tank Farm development, (approximately 40% of the planned road extension) is expected to be available by 2026, and improvements could be constructed as soon as 2027. Funding and construction timing for the remaining project components are dependent on future development within the AASP area, which could reasonably occur within the next 5-15 years. o For the Santa Fe Road Extension (South), funding and construction timing are dependent on future development within the AASP area, which could reasonably occur within the next 5-15 years.

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20 503 - Airport Area Transportation Impact Fee Fund FY 20-21 FY 21-22 FY 22-23 FY 23-24 FY 24-25 Fund Balance Beginning of Year $ 1,141,565.19 $ 896,694.57 $ 675,535.70 $ 664,234.94 $ 383,593.32 Prior Period Adjustment $ - $ - $ - $ - $ -
Fund Balance Beginning of Year After Adjustment $ 1,141,565.19 $ 896,694.57 $ 675,535.70 $ 664,234.94 $ 383,593.32 Interest $ 262.43 $ (21,170.76) $ 7,701.88 $ 27,958.46 $ 13,592.12 Impact Fees $ 400.12 $ 1,507.65 $ - $ - $ -
Total Revenue $ 662.55 $ (19,663.11) $ 7,701.88 $ 27,958.46 $ 13,592.12 Expenses $ 245,533.17 $ 201,495.76 $ 19,002.64 $ 180,648.31 $ 234,242.23 Reimbursements $ - $ - $ - $ 127,951.77 $ -
Transfers Out $ - $ - $ - $ - $ -
Total Expenditures $ 245,533.17 $ 201,495.76 $ 19,002.64 $ 308,600.08 $ 234,242.23 Fund Balance End of Year $ 896,694.57 $ 675,535.70 $ 664,234.94 $ 383,593.32 $ 162,943.21 Less Loans Receivable $ - $ - $ - $ - $ -
Net Fund Balance End of Year $ 896,694.57 $ 675,535.70 $ 664,234.94 $ 383,593.32 $ 162,943.21 Net Fund Ending Balance (6/30/25) $ 162,943.21
Less: Revenues for last five years:

Revenues FY 20-21 $ 662.55
Revenues FY 21-22 $ (19,663.11)
Revenues FY 22-23 $ 7,701.88
Revenues FY 23-24 $ 27,958.46
Revenues FY 24-25 $ 13,592.12
Total Revenues for last five years $ 30,251.90
Funds Held in Excess of Five Years $ 132,691.31 if positive, then subject to findings Notes
Five Year Revenue Analysis
N/A

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21 Los Osos Valley Road Transportation Impact Fee – Fund 504 The Los Osos Valley Road Transportation Impact Fee was established as an add-on fee in 2018 as part of the Capital Facilities Development Impact Fee Nexus Study and adopted by Resolution No. 10879 for the expansion of capacity for the Los Osos Valley Road (LOVR) interchange at US 101 for construction, project management, and inspection. Though the project has been completed, there are still minor projects that the City will need to implement at this location. The fee program was revised in 2019 to reflect the completion of the interchange construction work and the remaining projects. The City has a Reimbursement Agreement with Costco Wholesale Corporation for the realignment of Calle Joaquin improvements constructed by Costco at the LOVR interchange beyond their fair share. The reimbursement agreement with Costco has priority of revenue collected from this fee.

As of June 30, 2025, the fund balance available for expenditures was ($2,452.56). The only expenditure in FY 2023-24 was the annual reimbursement payment made to Costco in the amount of $566,787.71. Refer to Exhibit A and Exhibit B for details of projects being funded by this fee. As of June 30, 2025, there are no fees collected that have been held for more than five years.

Interfund Loan: LOVR Subarea Citywide Base Fees in the amount of $67,478.34 were deposited to the LOVR Transportation Impact Fee Fund (504) in error during FY 2024-25. The revenue should have been received by the Citywide Transportation Impact Fee Fund (507). Therefore, to reconcile and correct the error, an interfund loan has been established as a short-term liability which will ensure the correct revenue amounts are received by Fund 507. Payback of the interfund loan is expected to occur during FY 2025-26 at a 0% rate of interest.

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22 504 - LOVR Transportation Impact Fee Fund FY 20-21 FY 21-22 FY 22-23 FY 23-24 FY 24-25 Fund Balance Beginning of Year $ 469,605.94 $ 469,730.00 $ 584,365.27 $ 416,719.77 $ 616,787.73 Interest $ 124.06 $ (12,090.27) $ 4,582.99 $ 21,181.85 $ 15,025.76 Impact Fees $ - $ 126,725.54 $ (57,593.49) $ 201,771.80 $ (67,478.34) Total Revenue $ 124.06 $ 114,635.27 $ (53,010.50) $ 222,953.65 $ (52,452.58) Expenses $ - $ - $ - $ - $ -
Reimbursements (1) $ - $ - $ 114,635.00 $ 22,885.69 $ 566,787.71 Transfers Out $ - $ - $ - $ - $ -
Total Expenditures $ - $ - $ 114,635.00 $ 22,885.69 $ 566,787.71 Fund Balance End of Year $ 469,730.00 $ 584,365.27 $ 416,719.77 $ 616,787.73 $ (2,452.56) Less Loans Receivable $ - $ - $ - $ - $ -
Net Fund Balance End of Year $ 469,730.00 $ 584,365.27 $ 416,719.77 $ 616,787.73 $ (2,452.56) Net Fund Ending Balance (6/30/25) $ (2,452.56)
Less: Revenues for last five years:

Revenues FY 20-21 $ 124.06
Revenues FY 21-22 $ 114,635.27
Revenues FY 22-23 $ (53,010.50)
Revenues FY 23-24 $ 222,953.65
Revenues FY 24-25 $ (52,452.58)
Total Revenues for last five years $ 232,249.90
Funds Held in Excess of Five Years $ (234,702.46) if positive, then subject to findings Notes
Five Year Revenue Analysis
(1) Reimbursement payments to Costco for realignment of Calle Joaquin

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23 San Luis Ranch Transportation Impact Fee – Fund 514
The San Luis Ranch Transportation Impact Fee was established in 2018 as part of the Capital Facilities Development Impact Fee Nexus Study and adopted by Resolution No. 10879. This fee applies to development within San Luis Ranch only and represents the Citywide Transportation Impact Fee with appropriate adjustments to exclude costs related to the US 101/Prado Road Interchange project. The Development Agreement between the City and San Luis Ranch was adopted by the City Council in 2018 and requires the San Luis Ranch development to provide a direct contribution of 28% of the costs of construction of the Highway 101/ Prado Road Interchange.

In exchange, the city charges the San Luis Ranch developer a discounted Citywide Transportation Impact Fee.

Because the developer is paying this obligation directly, an adjusted Citywide Transportation Impact Fee—the San Luis Ranch Transportation Impact Fee— was created to ensure that development within San Luis Ranch does not overpay towards the Prado Road Interchange project.

As of June 30, 2025, the fund balance available for expenditures was $2,606,606.76. There were no expenditures from fund balance FY 2024-25, refer to Exhibit A and Exhibit B for details of projects which are funded with this fee. As of June 30, 2024, there were no funds which had been held for more than five years. 514 - SLR Transportation Impact Fee Fund FY 20-21 FY 21-22 FY 22-23 FY 23-24 FY 24-25 Fund Balance Beginning of Year $ - $ - $ 458,855.53 $ 1,289,408.48 $ 2,157,823.01 Interest $ - $ (2,186.54) $ 17,116.18 $ 79,786.64 $ 119,281.53 Transfers In $ - $ 10,000.00 $ - $ - $ -
Impact Fees $ - $ 457,690.07 $ 837,532.77 $ 792,331.69 $ 329,502.22 Total Revenue $ - $ 465,503.53 $ 854,648.95 $ 872,118.33 $ 448,783.75 Expenses $ - $ 6,648.00 $ 24,096.00 $ 3,703.80 $ -
Reimbursements $ - $ - $ - $ - $ -
Transfers Out $ - $ - $ - $ - $ -
Total Expenditures $ - $ 6,648.00 $ 24,096.00 $ 3,703.80 $ - Fund Balance End of Year $ - $ 458,855.53 $ 1,289,408.48 $ 2,157,823.01 $ 2,606,606.76 Less Loans Receivable $ - $ - $ - $ - $ -
Net Fund Balance End of Year $ - $ 458,855.53 $ 1,289,408.48 $ 2,157,823.01 $ 2,606,606.76 Net Fund Ending Balance (6/30/25) $ 2,606,606.76
Less: Revenues for last five years:

Revenues FY 20-21 $ -
Revenues FY 21-22 $ 465,503.53
Revenues FY 22-23 $ 854,648.95
Revenues FY 23-24 $ 872,118.33
Revenues FY 24-25 $ 448,783.75
Total Revenues for last five years $ 2,641,054.56
Funds Held in Excess of Five Years $ (34,447.80) if positive, then subject to findings Notes
Five Year Revenue Analysis
N/A

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24 Orcutt Area Transportation Impact Fee – Fund 515
The Orcutt Area Transportation Impact Fee was established in 2010 by Resolution No. 10222 for the expansion of transportation facilities in and around the Orcutt Area Specific Plan boundaries. Specifically, Chapter 8 of the Public Facilities Financing Plan for the Orcutt Area Specific Plan provides a detailed description of the transportation improvements needed to serve this area. The fees are intended to fund transportation improvements or may be used to reimburse the City for funds advanced from other sources to pay for design and construction, or to reimburse developers who have constructed transportation improvements beyond their fair share and are also included in the Orcutt Area Transportation Impact Fee calculation. The fee was created as a financing strategy to fund the burden of public facilities that must be funded by development in the Orcutt Area Specific Plan.

The OASP Public Facilities Financing Plan (PFFP) was originally prepared in September 2009, and revised in November 2016, December 2017, and October 2018, to update costs reflecting current construction estimates and to revise the scope of certain capital improvement projects within the PFFP. The Orcutt Area Transportation Impact Fee fund was established in FY 2020-21 with the reorganization of the chart of accounts to account for Orcutt Area Transportation Impact Fees separately from other transportation impact fees.

As of June 30, 2025, the fund balance available for expenditure was $1,864,800.06. There have been no expenditures made in the prior four years. Refer to Exhibit A and Exhibit B for details of projects which are being funded with this fee. Fund balance is being held until eligible transportation projects are identified in the Orcutt Area.

As of June 30, 2025, there were no funds collected which had been held for more than five years.

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25 515 - OASP Transportation Impact Fee Fund FY 20-21 FY 21-22 FY 22-23 FY 23-24 FY 24-25 Fund Balance Beginning of Year $ - $ 692,609.95 $ 1,392,254.93 $ 1,408,677.24 $ 1,473,245.02 Interest $ 51.35 $ (29,354.51) $ 16,422.31 $ 64,567.78 $ 82,225.04 Impact Fees $ 909,089.60 $ 728,999.49 $ - $ - $ 309,330.00 Total Revenue $ 909,140.95 $ 699,644.98 $ 16,422.31 $ 64,567.78 $ 391,555.04 Expenses $ 216,531.00 $ - $ - $ - $ -
Reimbursements $ - $ - $ - $ - $ -
Transfers Out $ - $ - $ - $ - $ -
Total Expenditures $ 216,531.00 $ - $ - $ - $ -
Fund Balance End of Year $ 692,609.95 $ 1,392,254.93 $ 1,408,677.24 $ 1,473,245.02 $ 1,864,800.06 Less Loans Receivable $ - $ - $ - $ - $ -
Net Fund Balance End of Year $ 692,609.95 $ 1,392,254.93 $ 1,408,677.24 $ 1,473,245.02 $ 1,864,800.06 Net Fund Ending Balance (6/30/25) $ 1,864,800.06
Less: Revenues for last five years:

Revenues FY 20-21 $ 909,140.95
Revenues FY 21-22 $ 699,644.98
Revenues FY 22-23 $ 16,422.31
Revenues FY 23-24 $ 64,567.78
Revenues FY 24-25 $ 391,555.04
Total Revenues for last five years $ 2,081,331.06
Funds Held in Excess of Five Years $ (216,531.00) if positive, then subject to findings Notes
Five Year Revenue Analysis
N/A

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26 Wastewater and Water Impact Fees

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27 Wastewater Impact Fee – Fund 506
The Wastewater Impact Fee was established in 2018 by Resolution No. 10880 as part of the 2017 Water and Wastewater Capacity and Connection Fee Study. Effective June 5, 2019, the Wastewater Impact Fee was updated to include the cost of the Buckley Lift Station, the updated fee was adopted via Resolution No. 11020. The fees collected are to be used for the expansion and improvement of facilities used for sewer collection and sewer treatment. Specifically, the facilities and improvements to be paid for by these fees are listed in the 2017 Water and Wastewater Capacity and Connection Fee Study. Wastewater Impact Fees are governed by Municipal Code

4.20.140 and 4.56. The Wastewater Impact Fee Fund 506 is used to separately collect and account for Wastewater Impact Fees. The fees collected are transferred to the Sewer Fund (602) as reimbursement and/or advancement for eligible project costs which occur from the Sewer Fund.

As of June 30, 2025, the fund balance available for expenditure is $5,799,629.03. Expenditures from fund balance totaled $943,559.30 in FY 2024-25. Refer to Exhibit A and Exhibit B for details of projects which are being funded with this fee. As of June 30, 2025, there were no funds which had been held for more than five years. 506 - Wastewater Impact Fee Fund FY 20-21 FY 21-22 FY 22-23 FY 23-24 FY 24-25 Fund Balance Beginning of Year $ 1,327,831.75 $ 1,313,758.21 $ 2,059,353.65 $ 2,075,751.37 $ 5,006,412.64 Prior Period Adjustment (1) $ - $ 875,136.06 $ - $ - $ - Fund Balance Beginning of Year After Adjustment $ 1,327,831.75 $ 2,188,894.27 $ 2,059,353.65 $ 2,075,751.37 $ 5,006,412.64 Interest $ 412.53 $ 11,202.64 $ 4,104.37 $ 19,232.11 $ - Impact Fees $ 3,822,468.61 $ 3,685,007.64 $ 1,980,885.60 $ 2,911,429.16 $ 2,729,022.70 Total Revenue $ 3,822,881.14 $ 3,696,210.28 $ 1,984,989.97 $ 2,930,661.27 $ 2,729,022.70 Expenses $ - $ - $ - $ - $ -
Transfers Out (4) $ 3,836,954.68 $ 3,825,750.90 $ 1,968,592.25 $ - $ 943,559.30 Total Expenditures $ 3,836,954.68 $ 3,825,750.90 $ 1,968,592.25 $ - $ 943,559.30 Fund Balance End of Year $ 1,313,758.21 $ 2,059,353.65 $ 2,075,751.37 $ 5,006,412.64 $ 6,791,876.04 Interest Receiveable - Long Term Loans (2) $ - $ - $ - $ 134,087.39 $ 193,502.01 Less Loans Receivable (3) $ - $ 798,745.00 $ 798,745.00 $ 798,745.00 $ 798,745.00 Net Fund Balance End of Year $ 1,313,758.21 $ 1,260,608.65 $ 1,277,006.37 $ 4,073,580.25 $ 5,799,629.03 Net Fund Ending Balance (6/30/25) $ 5,799,629.03
Less: Revenues for last five years:

Revenues FY 20-21 $ 3,822,881.14
Revenues FY 21-22 $ 3,696,210.28
Revenues FY 22-23 $ 1,984,989.97
Revenues FY 23-24 $ 2,930,661.27
Revenues FY 24-25 $ 2,729,022.70
Total Revenues for last five years $ 15,163,765.36
Funds Held in Excess of Five Years $ (9,364,136.33) if positive, subject to findings Notes
Five Year Revenue Analysis
(1) Prior Period Adjustments are related to Loan Receivable & Accrued Interest (2) Interest Receivable - Long Term Loans is related to interest on deferred payment of impact fees related to affordable housing developments and reduces the amount of available funding.
(3) Loans Receivable are related to deferred payment of impact fees related to affordable housing developments and reduces the amount of available funding. (4) Transfers Out to Enterprise Fund for reimbursement and/or advancement of eligible project expenditures which occur out of the Enterprise Fund.

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28 Water Impact Fee – Fund 509
The Water Impact Fee was established in 2018 by Resolution No. 10880 as part of the 2017 Water and Wastewater Capacity and Connection Fee Study. The fees collected are intended to fund the expansion and improvement of facilities used for water supply, water treatment, and water distribution necessary to serve new development. Specifically, the facilities and improvements to be paid for by these fees are listed in the 2017 Water and Wastewater Capacity and Connection Fee Study. Water Impact Fees are governed by Municipal Code

4.20.140 and 4.56. The Water Impact Fee Fund 506 is used to separately collect and account for Water Impact Fees. The fees collected are transferred to the Water Fund (601) as reimbursement and/or advancement for eligible project costs which occur from the Water Fund.

As of June 30, 2025, the fund balance available for expenditure was $6,851,326.63. Expenditures from fund balance totaled $2,643,232.35 in FY 2024-25. Refer to Exhibit A and Exhibit B for details of projects which are funded with this fee. As of June 30, 2025, there were no funds which had been held for more than five years. 509 - Water Impact Fee Fund FY 20-21 FY 21-22 FY 22-23 FY 23-24 FY 24-25 Fund Balance Beginning of Year $ - $ (2,019.05) $ 1,654,607.49 $ 1,688,539.45 $ 6,410,586.48 Prior Period Adjustment (1) $ - $ 1,624,196.66 $ - $ - $ - Fund Balance Beginning of Year After Adjustment $ - $ 1,622,177.61 $ 1,654,607.49 $ 1,688,539.45 $ 6,410,586.48 Interest $ 59.19 $ 34,684.96 $ 32,425.24 $ 35,327.89 $ - Impact Fees $ 4,744,361.10 $ 5,160,019.76 $ 3,616,306.55 $ 4,686,719.14 $ 4,843,918.78 Total Revenue $ 4,744,420.29 $ 5,194,704.72 $ 3,648,731.79 $ 4,722,047.03 $ 4,843,918.78 Expenses $ - $ - $ - $ - $ -
Transfers Out (4) $ 4,746,439.34 $ 5,162,274.84 $ 3,614,799.83 $ - $ 2,643,232.35 Total Expenditures $ 4,746,439.34 $ 5,162,274.84 $ 3,614,799.83 $ - $ 2,643,232.35 Fund Balance End of Year $ (2,019.05) $ 1,654,607.49 $ 1,688,539.45 $ 6,410,586.48 $ 8,611,272.91 Interest Receiveable - Long Term Loans (2) $ - $ - $ - $ 253,900.30 $ 283,603.81 Less Loans Receivable (3) $ - $ 1,476,189.03 $ 1,476,189.03 $ 1,476,342.47 $ 1,476,342.47 Net Fund Balance End of Year $ (2,019.05) $ 178,418.46 $ 212,350.42 $ 4,680,343.71 $ 6,851,326.63 Net Fund Ending Balance (6/30/25) $ 6,851,326.63
Less: Revenues for last five years:

Revenues FY 20-21 $ 4,744,420.29
Revenues FY 21-22 $ 5,194,704.72
Revenues FY 22-23 $ 3,648,731.79
Revenues FY 23-24 $ 4,722,047.03
Revenues FY 24-25 $ 4,843,918.78
Total Revenues for last five years $ 23,153,822.61
Funds Held in Excess of Five Years $ (16,302,495.98) if positive, subject to findings Notes
Five Year Revenue Analysis
(1) Prior Period Adjustments is related to Loan Receivable & Accrued Interest (2) Interest Receivable - Long Term Loans is related to interest on deferred payment of impact fees related to affordable housing developments and reduces the amount of available funding.
(3) Loans Receivable are related to deferred payment of impact fees related to affordable housing developments and reduces the amount of available funding. (4) Transfers Out to Enterprise Fund for reimbursement and/or advancement of eligible project expenditures which occur out of the Enterprise Fund.

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29 Emergency Service Facilities Impact Fee

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30 Fire Impact Fee – Fund 516
The Fire Impact Fee was established in 2018 as part of the Capital Facilities Development Impact Fee Nexus Study and adopted by Resolution No. 10879 to help ensure there are sufficient fire facilities and vehicles to serve new development. Fees collected will be used to help renovate Fire Stations 1-4, to construct Fire Station 5, and to replace fire vehicles, all of which are needed to serve new development.

As of June 30, 2025, the fund balance available for expenditure is $393,732.58. There have been no expenditures from this fund since inception, however, it is expected that a portion of the balance will be used in FY 2025-26 to fund improvements to Fire Station 3 & 4 remodels. Refer to Exhibit A and Exhibit B for details of projects which are funded with this fee. As of June 30, 2025, there were no funds collected that had been held for more than five years. 516 - Fire Impact Fee Fund FY 20-21 FY 21-22 FY 22-23 FY 23-24 FY 24-25 Fund Balance Beginning of Year $ - $ 66,123.61 $ 200,219.76 $ 214,607.26 $ 398,564.20 Interest $ 10.18 $ (16,497.18) $ 2,710.96 $ 14,584.27 $ 22,401.43 Transfers In (1) $ - $ 85,996.16 $ - $ - $ -
Impact Fees $ 66,113.43 $ 64,597.17 $ 11,676.54 $ 169,372.67 $ 90,289.85 Total Revenue $ 66,123.61 $ 134,096.15 $ 14,387.50 $ 183,956.94 $ 112,691.28 Expenses $ - $ - $ - $ - $ -
Reimbursements $ - $ - $ - $ - $ -
Transfers Out $ - $ - $ - $ - $ -
Total Expenditures $ - $ - $ - $ - $ -
Fund Balance End of Year $ 66,123.61 $ 200,219.76 $ 214,607.26 $ 398,564.20 $ 511,255.48 Less Interest Receivable - Long Term Loans (2) $ - $ - $ - $ 12,005.26 $ 14,954.16 Less Loans Receivable (3) $ - $ 78,276.25 $ 78,276.25 $ 102,568.74 $ 102,568.74 Net Fund Balance End of Year $ 66,123.61 $ 121,943.51 $ 136,331.01 $ 283,990.20 $ 393,732.58 Net Fund Ending Balance (6/30/25) $ 393,732.58
Less: Revenues for last five years:

Revenues FY 20-21 $ 66,123.61
Revenues FY 21-22 $ 134,096.15
Revenues FY 22-23 $ 14,387.50
Revenues FY 23-24 $ 183,956.94
Revenues FY 24-25 $ 112,691.28
Total Revenues for last five years $ 511,255.48
Funds Held in Excess of Five Years $ (117,522.90) if positive, subject to findings Notes
Five Year Revenue Analysis
(1) Transfer in from Fund 508: FY 2019/ 20 = $96,344.08 fees + $2,732.41 int = $99,076.49; FY 2020/21 = $235.50 int (2) Interest Receivable - Long Term Loans is related to interest on deferred payment of impact fees related to affordable housing developments and reduces the amount of available funding.
(3) Loans Receivable are related to deferred payment of impact fees related to affordable housing developments and reduces the amount of available funding.

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31 Police Impact Fee – Fund 517
The Police Impact Fee was established in 2018 as part of the Capital Facilities Development Impact Fee Nexus Study and adopted by Resolution No. 10879 to help ensure there are sufficient police facilities and vehicles to serve new development. Fees collected are to be used to help construct the new police headquarters and purchase vehicles to maintain the existing ratio of police vehicles to serve new development.

As of June 30, 2025, the fund balance available for expenditure was $543,411.50. There have been no expenditures from this fund since inception, however, it is expected that the balance will be used in FY 2025-26 to fund tenant improvements to a facility recently purchased by the City located at 1106 Walnut Street, which will house police administration functions. Refer to Exhibit A and Exhibit B for details of projects which are being funded with this fee. As of June 30, 2025, there were no funds collected which had been held for more than five years. 517 - Police Impact Fee Fund FY 20-21 FY 21-22 FY 22-23 FY 23-24 FY 24-25 Fund Balance Beginning of Year $ - $ 72,656.08 $ 245,445.94 $ 237,008.22 $ 448,418.67 Interest $ 10.89 $ (19,445.24) $ 3,214.90 $ 16,294.44 $ 26,295.93 Transfers In (1) $ - $ 102,358.84 $ - $ - $ -
Impact Fees $ 72,645.19 $ 89,876.26 $ (11,652.62) $ 195,116.01 $ 165,111.92 Total Revenue $ 72,656.08 $ 172,789.86 $ (8,437.72) $ 211,410.45 $ 191,407.85 Expenses $ - $ - $ - $ - $ -
Reimbursements $ - $ - $ - $ - $ -
Transfers Out $ - $ - $ - $ - $ -
Total Expenditures $ - $ - $ - $ - $ -
Fund Balance End of Year $ 72,656.08 $ 245,445.94 $ 237,008.22 $ 448,418.67 $ 639,826.52 Less Interest Receivable - Long Term Loans (2) $ - $ - $ - $ 6,299.92 $ 11,134.87 Less Loans Receivable (3) $ - $ 56,781.01 $ 56,781.01 $ 85,280.15 $ 85,280.15 Net Fund Balance End of Year $ 72,656.08 $ 188,664.93 $ 180,227.21 $ 356,838.60 $ 543,411.50 Net Fund Ending Balance (6/30/25) $ 543,411.50
Less: Revenues for last five years:

Revenues FY 20-21 $ 72,656.08
Revenues FY 21-22 $ 172,789.86
Revenues FY 22-23 $ (8,437.72)
Revenues FY 23-24 $ 211,410.45
Revenues FY 24-25 $ 191,407.85
Total Revenues for last five years $ 639,826.52
Funds Held in Excess of Five Years $ (96,415.02) if positive, then subject to findings Notes
Five Year Revenue Analysis
(1) Transfer in from Fund 508: FY 2019/ 20 = $96,344.08 fees + $2,732.41 int = $99,076.49; FY 2020/21 = $235.50 int (2) Interest Receivable - Long Term Loans is related to interest on deferred payment of impact fees related to affordable housing developments and reduces the amount of available funding.
(3) Loans Receivable are related to deferred payment of impact fees related to affordable housing developments reduce the amount of available funding.

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32 In-Lieu Fees
» Affordable Housing «
» Parkland (Quimby) «
» Open Space Protection «
» Parking «
» Public Art «

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33 Parkland In-Lieu Fee (Quimby) - Fund 501
The Parkland In-Lieu Fee was established in 2018 per Government Code 66477, also known as the Quimby Act, and applies to new single-family and multifamily condominium developments. Parkland In-lieu Fees are governed by Municipal Code 16.22.040 – 16.22.110. Developers are required to either dedicate parkland or pay an in-lieu fee as a condition of approval. The land, fees, or combination thereof are to be used only for the purpose of developing new or rehabilitating existing neighborhood parks, community parks or recreational facilities which serve the subdivision in which the fees were collected. Under the Quimby Act, the base standard for parks is 3.0 acres per 1,000 residents and cannot be any higher than 5.0 acres per 1,000 residents. The Parkland In-Lieu fee has been established for the City with a standard of 4.18 acres per 1,000 residents.

As ofJune 30, 2025, the fund balance available for expenditure was $351,517.50. Expenditures from fund balance totaled $1,759,459.54 in FY 2024-25. Refer to Exhibit A and Exhibit B for details of projects which are funded with this fee. As of June 30, 2025, there were no funds which had been held for more than five years. 501 - Quimby In-Lieu Fee Fund FY 20-21 FY 21-22 FY 22-23 FY 23-24 FY 24-25 Fund Balance Beginning of Year $ 4,709,560.11 $ 3,405,467.67 $ 3,107,198.95 $ 3,205,116.00 $ 2,241,596.43 Prior Period Adjustment (1) $ (3,193,263.41) $ - $ - $ - $ - Fund Balance Beginning of Year After Adjustment $ 1,516,296.70 $ 3,405,467.67 $ 3,107,198.95 $ 3,205,116.00 $ 2,241,596.43 Interest $ 941.09 $ (84,393.63) $ 37,390.95 $ 142,963.66 $ 60,968.64 In-Lieu Fees (4) $ 1,900,253.58 $ 126,518.63 $ 110,414.52 $ 128,484.95 $ 56,134.40 Total Revenue $ 1,901,194.67 $ 42,125.00 $ 147,805.47 $ 271,448.61 $ 117,103.04 Expenses $ 12,023.70 $ 340,393.72 $ 49,888.42 $ 1,234,968.18 $ 1,759,459.54 Reimbursements $ - $ - $ - $ - $ -
Total Expenditures $ 12,023.70 $ 340,393.72 $ 49,888.42 $ 1,234,968.18 $ 1,759,459.54 Fund Balance End of Year $ 3,405,467.67 $ 3,107,198.95 $ 3,205,116.00 $ 2,241,596.43 $ 599,239.93 Interest Receivable - Long Term Loans (2) $ - $ - $ - $ 15,421.27 $ 20,163.70 Less Loans Receivable (3) $ - $ 143,044.36 $ 143,044.36 $ 227,588.73 $ 227,558.73 Net Fund Balance End of Year $ 3,405,467.67 $ 2,964,154.59 $ 3,062,071.64 $ 1,998,586.43 $ 351,517.50 Net Fund Ending Balance (6/30/25) $ 351,517.50
Less: Revenues for last five years:

Revenues FY 20-21 $ 1,901,194.67
Revenues FY 21-22 $ 42,125.00
Revenues FY 22-23 $ 147,805.47
Revenues FY 23-24 $ 271,448.61
Revenues FY 24-25 $ 117,103.04
Total Revenues for last five years $ 2,479,676.79
Funds Held in Excess of Five Years $ (2,128,159.29) if positive, then subject to findings Notes
Five Year Revenue Analysis
(1) Prior Period Adjustment is related to transfer out to other funds 510, 511, 512, and 519. (2) Interest Receivable - Long Term Loans is related to interest on deferred payment of impact fees related to affordable housing developments and reduces the amount of available funding.
(3) Loans Receivable are related to deferred payment of impact fees related to affordable housing developments reduces the amount of available funding. (4) In-Lieu Fees includes Parkland In-Lieu Fees as well as the Dwelling Unit Fee.

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34 Open Space Protection In-Lieu Fee – Fund 502
The Open Space Protection In-Lieu Fee was established in 2005 by Resolution No. 9728 to address the need to acquire new open space lands, specifically in the Airport Area Specific Plan, commensurate with similar land lost to development projects. While the fee was discontinued in FY 2018-19, the fund is still active to properly account for the fees that were collected in the past and that must be used specifically on open space protection projects within the Airport Area Specific Plan. The fund is also utilized to capture funds related to Grants and other Miscellaneous Revenue related to Open Space.

As of June 30, 2025, the fund balance available for expenditure was $100,484.32. There were no expenditures in FY 2024-25. Refer to Exhibit A for details of projects which are funded with this fee. As of June 30, 2025, there were no funds which had been held for more than five years. 502 - Open Space Protection In-Lieu Fee Fund FY 20-21 FY 21-22 FY 22-23 FY 23-24 FY 24-25 Fund Balance Beginning of Year $ 20,310.51 $ 20,315.51 $ 12,949.06 $ 13,097.39 $ 13,697.72 Interest $ 5.00 $ (466.45) $ 148.33 $ 600.33 $ 3,086.60 Other State Grants $ - $ - $ - $ -
Misc. Revenue (1) $ - $ - $ - $ - $ 83,700.00
In-Lieu Fees $ - $ - $ - $ - $ -
Total Revenue $ 5.00 $ (466.45) $ 148.33 $ 600.33 $ 86,786.60 Expenses $ - $ - $ - $ - $ -
Transfers Out $ - $ 6,900.00 $ - $ - $ -
Total Expenditures $ - $ 6,900.00 $ - $ - $ -
Fund Balance End of Year $ 20,315.51 $ 12,949.06 $ 13,097.39 $ 13,697.72 $ 100,484.32 Less Loans Receivable $ - $ - $ - $ - $ -
Net Fund Balance End of Year $ 20,315.51 $ 12,949.06 $ 13,097.39 $ 13,697.72 $ 100,484.32 Net Fund Ending Balance (6/30/25) $ 100,484.32
Less: Revenues for last five years:

Revenues FY 20-21 $ 5.00
Revenues FY 21-22 $ (466.45)
Revenues FY 22-23 $ 148.33
Revenues FY 23-24 $ 600.33
Revenues FY 24-25 $ 86,786.60
Total Revenues for last five years $ 87,073.81
Funds Held in Excess of Five Years $ 13,410.51 if positive, then subject to findings (2) Notes
Five Year Revenue Analysis
(1) Misc. Revenue is related to other Open Space activities and does not include any In-Lieu Fees (2) Balance held longer than 5 years is related to $200,000 State Grant in FY 19-20. Findings not required for State Grant Revenue held more than five years.

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35 Affordable Housing Inclusionary Fee - Fund 505
The Affordable Housing Inclusionary Fee is governed by the City’s Inclusionary Housing Ordinance (Ordinance No. 1346) established in 1999 to provide funding for the provision of affordable housing and for reasonable costs associated with the development of affordable housing. Developers either pay a fee or must construct affordable units to meet their inclusionary housing requirements. This fee is governed by Municipal Code 17.138.060.

As of June 30, 2025, the fund balance available for expenditure was $(2,639,233.06). Expenditures from fund balance totaled $207,000. Refer to Exhibit A and Exhibit B for details of projects which are funded with this fee.

As of June 30, 2025, there were no funds which had been held for more than five years.

Transfers Out: The transfers out amount of $207,000 was to the General Fund for FY 2024-25 and is comprised of the following: $150,000 for HouseKeys Contract Renewal; $40,000 for Housing Trust Fund; and $17,000 for administrative expenses. These are set amounts that occur annually and are expected to continue in future years.

Negative Fund Balance: The negative fund balance $(2,639,233.06) can be attributed to the Interest Receivable on Long Term Loansin the amount of $2,850,875.37. Thisitem reducesthe amount of available fund balance because the City is not expected to have the cash in hand for many years. This amount was not taken into consideration atthe time staff requested and Council approved the 736 Orcutt project, which exceeded the Affordable Housing Fund’s available balance to provide for new initiatives. The result is that the available fund balance is now negative and will require replenishment before further initiatives can be considered. Additionally, there isstill $9,159,751.16 in Loans Receivable to twenty affordable housing projects within the city that have been built over the last 25 years. These loans vary in term and interest rates, from 20 to 55-year repayment terms and anywhere from 0-4% fixed interest. These loans receivables reduce the available fund balance which can be expended in future years. Furthermore, in-lieu fee revenue was slightly lower in FY 2024-25. In-Lieu Fees are the only source of revenue to this fund.

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36 505 - Affordable Housing Fund FY 20-21 FY 21-22 FY 22-23 FY 23-24 FY 24-25 Fund Balance Beginning of Year $ 8,589,919.11 $ 9,178,296.23 $ 9,784,738.96 $ 10,275,529.96 $ 8,540,730.56 Prior Period Adjustments (1) $ 417,042.00 $ 165,548.77 $ (420,335.00) $ - $ 70,654.13 Fund Balance Beginning of Year After Adjustment $ 9,006,961.11 $ 9,343,845.00 $ 9,364,403.96 $ 10,275,529.96 $ 8,611,384.69 Interest $ 218,935.12 $ (37,152.17) $ 176,699.03 $ 119,868.30 $ 79,428.92 Misc Revenue $ 153,171.13 $ 419,260.00 $ - $ -
Grants $ - $ - $ 1,700,000.00 $ 1,358,189.20 $ (600.00) Housing Loan Repayment $ - $ - $ - $ 138,625.00 $ -
In Lieu Fees $ 10,600.00 $ 411,875.00 $ 554,987.90 $ 355,408.10 $ 219,116.86 Total Revenue $ 229,535.12 $ 527,893.96 $ 2,850,946.93 $ 1,972,090.60 $ 297,945.78 Expenses $ - $ - $ 1,700,000.00 $ 3,499,890.00 $ -
Transfers Out $ 58,200.00 $ 87,000.00 $ 239,820.93 $ 207,000.00 $ 207,000.00 Total Expenditures $ 58,200.00 $ 87,000.00 $ 1,939,820.93 $ 3,706,890.00 $ 207,000.00 Fund Balance End of Year $ 9,178,296.23 $ 9,784,738.96 $ 10,275,529.96 $ 8,540,730.56 $ 8,702,330.47 Add Unearned Revenue (ARPA Grant) (2) $ - $ 2,964,467.00 $ 1,264,467.00 $ - $ - Less Loans Receivable (3) $ 8,001,471.16 $ 9,670,906.16 $ 9,229,751.16 $ 9,229,751.16 $ 9,159,751.16 Less Interest Receivable - Long Term Loans (4) $ - $ - $ - $ 2,589,658.15 $ 2,850,875.37 Less Allowance for Doubtful Accounts (5) $ (215,000.00) $ (669,063.00) $ (669,063.00) $ (669,063.00) $ (669,063.00) Net Fund Balance End of Year $ 1,391,825.07 $ 3,747,362.80 $ 2,979,308.80 $ (2,609,615.75) $ (2,639,233.06) Net Fund Ending Balance (6/30/25) $ (2,639,233.06)
Less: Revenues for last five years:

Revenues FY 20-21 $ 229,535.12
Revenues FY 21-22 $ 527,893.96
Revenues FY 22-23 $ 2,850,946.93
Revenues FY 23-24 $ 1,972,090.60
Revenues FY 24-25 $ 297,945.78
Total Revenues for last five years $ 5,878,412.39
Funds Held in Excess of Five Years $ (8,517,645.45) if positive, then subject to findings Notes
(1) Prior Period Adjustments FY 20-21 and FY 21-22 are related to Loan Receivable & Accrued Interest. Prior Period Adjustments for FY 22-23 are related to the separation of BEGIN loan activity into a new Fund; Prior Period Adjustments for FY 24-25 is for prior year Housing Repayment Loan not previously recorded. (2) Unearned Revenue is ARPA Grant not reflected as Revenue. (3) Loans Receivable are affordable housing loans to property owners. Loans Receivables reduce the amount of available funding for future spending. (4) Interest Receivable - Long Term Loans is interest on long term affordable housing loans to property owners. Interest Receivable reduce the amount of available funding for future spending.
(5) Allowance for doubtful accounts reduces the Loans Receivables and represents the portion of Loans Receivables which may not be realized.

Five Year Revenue Analysis Page 303 of 551
37 Parking In-Lieu Fee - Fund 611
Parking In-Lieu fees are governed by the City’s Municipal Code 4.30 (Ordinance No. 1422) established in 2002 and are collected to satisfy parking demand requirements for new development projects within a designated parking in-lieu fee area. The fees collected contribute to the revenue of the Parking Enterprise Fund and can be used only for the development or maintenance of parking to offset the demand requirement for new development projects within the parking in-lieu fee area.

As of June 30, 2025, the fund balance available for expenditures was $0.00. Expenditures from fund balance totaled $317,995.41 in FY 2024-25. Refer to Exhibit A and Exhibit B for details of projects which are funded with this fee. As of June 30, 2025, there were no funds which had been held for more than five years. 611 - Parking In-Lieu Account FY 20-21 FY 21-22 FY 22-23 FY 23-24 FY 24-25 Fund Balance Beginning of Year $ 3,362,227.47 $ 3,142,232.50 $ 3,142,232.50 $ 2,422,917.56 $ 317,995.41 Interest $ - $ - $ - $ - $ -
In-Lieu Fees $ 10,691.28 $ - $ 23,823.96 $ - $ -
Total Revenue $ 10,691.28 $ - $ 23,823.96 $ - $ -
Expenses $ 230,686.25 $ - $ 743,138.90 $ 2,104,922.15 $ 317,995.41 Reimbursements $ - $ - $ - $ - $ -
Transfers Out $ - $ - $ - $ - $ -
Total Expenditures $ 230,686.25 $ - $ 743,138.90 $ 2,104,922.15 $ 317,995.41 Fund Balance End of Year $ 3,142,232.50 $ 3,142,232.50 $ 2,422,917.56 $ 317,995.41 $ - Less Loans Receivable $ - $ - $ - $ - $ -
Net Fund Balance End of Year $ 3,142,232.50 $ 3,142,232.50 $ 2,422,917.56 $ 317,995.41 $ - Net Fund Ending Balance (6/30/25) $ -
Less: Revenues for last five years:

Revenues FY 20-21 $ 10,691.28
Revenues FY 21-22 $ -
Revenues FY 22-23 $ 23,823.96
Revenues FY 23-24 $ -
Revenues FY 24-25 $ -
Total Revenues for last five years $ 34,515.24
Funds Held in Excess of Five Years $ (34,515.24) if positive, then subject to findings Notes
Five Year Revenue Analysis
N/A

Page 304 of 551 ends

38 Public Art In-Lieu Fee - Fund 207
The Public Art In-Lieu Fee, adopted by the City Council on September 14, 2000, through Ordinance No. 1372, reflects the City's commitment to enhancing its cultural and aesthetic landscape. The program dates to 1990, when the City established the Visual Arts in Public Places Program, which required 1% of City-funded capital projects to be dedicated to public art. In 2000, this initiative was expanded to include private development, requiring non-residential projects with construction costs exceeding $100,000 to contribute public art valued at

0.5% of the total cost or pay an in-lieu fee to the City's public art fund. The program offers developers flexibility, allowing them to either incorporate art into their projects or contribute to the broader public art fund. This voluntary approach helps ensure that public art continues to enrich the City's cultural landscape by enhancing both private developments and public spaces. Governed under Municipal Code 17.70.140, the Public Art In-Lieu Fee plays a vital role in promoting the City's artistic and cultural goals, helping to create a more vibrant and engaging environment for residents and visitors alike.

As of June 30, 2025, the fund balance available for expenditure was $1,557,870.95. Expenditures from fund balance totaled $408,091.41 in FY 2024-25. Refer to Exhibit A and Exhibit B for details of projects which are funded with this fee. As of June 30, 2025, there were no funds that had been given for more than five years. 207 - Public Art In-Lieu Fee Fund FY 20-21 FY 21-22 FY 22-23 FY 23-24 FY 24-25 Fund Balance Beginning of Year $ 591,096.94 $ 568,401.48 $ 798,038.30 $ 1,269,844.49 $ 1,526,587.79 Interest $ 143.88 $ (16,319.37) $ 16,742.18 $ 63,177.70 $ 76,040.57 Transfers In $ - $ 442,500.00 $ 442,500.00 $ 425,000.00 $ 312,848.00 In-Lieu Fees $ (1,357.13) $ 99,698.00 $ 220,854.00 $ 49,763.00 $ 50,486.00 Total Revenue $ (1,213.25) $ 525,878.63 $ 680,096.18 $ 537,940.70 $ 439,374.57 Expenses $ 21,482.21 $ 296,241.81 $ 208,289.99 $ 190,647.40 $ 303,141.41 Transfers Out $ - $ - $ - $ 90,550.00 $ 104,950.00
Total Expenditures $ 21,482.21 $ 296,241.81 $ 208,289.99 $ 281,197.40 $ 408,091.41 Fund Balance End of Year $ 568,401.48 $ 798,038.30 $ 1,269,844.49 $ 1,526,587.79 $ 1,557,870.95 Less Loans Receivable $ - $ - $ - $ - $ -
Net Fund Balance End of Year $ 568,401.48 $ 798,038.30 $ 1,269,844.49 $ 1,526,587.79 $ 1,557,870.95 Net Fund Ending Balance (6/30/25) $ 1,557,870.95
Less: Revenues for last five years:

Revenues FY 20-21 $ (1,213.25)
Revenues FY 21-22 $ 525,878.63
Revenues FY 22-23 $ 680,096.18
Revenues FY 23-24 $ 537,940.70
Revenues FY 24-25 $ 439,374.57
Total Revenues for last five years $ 2,182,076.83
Funds Held in Excess of Five Years $ (624,205.88) if positive, then subject to findings Notes
Five Year Revenue Analysis
N/A

Page 305 of 551 ends

39 Exhibit A
Project Detail List
Exhibit A provides a detailed list of projects which are being funded by impact fees collected. Details of projects include Construction Start Date, Project Status, Total Estimated Project Cost, Estimated Project Cost Fund by Fees, % of Project Funded by Fees, Fees Expended to Date, and the % of Fees Funded. This information is provided to satisfy Annual Reporting Requirements of The Mitigation Fee Act. Data provided is from the Impact Fee Nexus Studies, Financial Plans and/ or Capital Improvement Plans. Expenditures to date are from July 1, 2018, to current due to the implementation of new accounting system.

Parkland Funds Project Details
Citywide Park Development Impact Fee (Fund 510)
CIP Project Number CIP Project Name
Project Start
Date
Project Status
as of 6/30/2025
Total Estimated
Project Cost
Estimated Cost
Funded by Fees
% of Project
Funded by Fees
Fees Expended
to Date
% of Fees
Expended
n/a n/a n/a n/a $ - $ - n/a $ - n/a
Citywide Park Improvement Impact Fee (Fund 519)
CIP Project Number CIP Project Name
Project Start
Date
Project Status
as of 6/30/2025
Total Estimated
Project Cost
Estimated Cost
Funded by Fees
% of Project
Funded by Fees
Fees Expended
to Date
% of Fees
Expended
2000188 Mitchell Park Improvements Feb-24 Completed $ 476,671.75 $ 225,000.00 47% $ 224,835.99 100% 20000514 Emerson Park Amenity Upgrades & Beautification TBD Design $ 4,664,612.00 $ 1,854,612.00 40% $ - 0% Orcutt Area Specific Plan Parks Impact Fee (Fund 511)
CIP Project Number CIP Project Name
Project Start
Date
Project Status
as of 6/30/2025
Total Estimated
Project Cost
Estimated Cost
Funded by Fees
% of Project
Funded by Fees
Fees Expended
to Date
% of Fees
Expended
2000057 Orcutt Area Parks (Linear, Pocket) TBD Design $ 4,157,523.31 $ 2,734,487.70 66% $ 735,621.37 27% 2000054 Righetti Community Park TBD Design $ 27,363,912.00 $ 2,093,623.00 8% $ 28,635.27 1% Margarita Area Development Impact Fee (Fund 512)
CIP Project Number CIP Project Name
Project Start
Date
Project Status
as of 6/30/2025
Total Estimated
Project Cost
Estimated Cost
Funded by Fees
% of Project
Funded by Fees
Fees Expended
to Date
% of Fees
Expended
TBD MASP Planned Park TBD Not Started $ 16,075,928.70 $ 3,454,600.12 21% $ - 0%

Page 306 of 551 ends

40 Transportation Funds Project Details
Citywide Transportation Development Impact Fee (Fund 507) Citywide Transportation Development Impact Fee (Fund 507) TIF Program Project Identification CIP Project Number CIP Project Name Construction
Start Date
Project Status as
of 6/30/2024
Total Estimated
Project Cost
Estimated Cost
Funded by Fees
% of Project
Funded by Fees
Fees Expended to
Date
% of Fees
Funded
91435 LOVR Interchange Landscape
2099821 San Luis Creek Bridge Widening at LOVR
1000013 WRRF Modeling
91613/ 2091613 Prado Road Interchange
91611 Orcutt Tank Farm Roundabout Design
1000164/ 2000164 Orcutt/Tank Farm Roundabout Construction #8 - S. Broad Street Intersections 91609 Broad Street Corridor Access Improvements 2030 Ongoing (b) $ 5,000,000.00 $ 4,000,000.00 80% $ 296,735.73 7% N/A Reimbursement Agreement - SLO Public Market
(Tank Farm/Long Traffic Signal)
N/A Reimbursement Agreement- The Connect SLO
(Orcutt/Sacramento/Duncan Traffic Signal)
Unknown Prior Project - Miscellaneous Expenses 91293 Railroad Crossing Upgrade - California & Foothill N/A N/A $ 5,406.00 $ 5,406.00 100% $ 5,406.00 100% 91294/ 2091294 Higuera at 50 Higuera Widening 2025 Design 91610/ 2091610 Higuera Street Widening Bridge to Elks 2025 Design #15F - Prado Rd. Bridge Widening: West of Higuera
St and Higuera & Prado Intersection Improvements 91252 Prado Road Bridge Widening 2026 Design $ 13,000,000.00 $ 5,200,000.00 40% $ 291,288.40 6% #19 - Prado Rd Extension S. Higuera to Broad 2000195 Prado Road Extenstion Reimbursement 2035 Ongoing (d) $ 26,526,200.00 $ 8,013,184.00 30% $ - 0% 91375/ 2091375 Railroad Safety Trail Taft to Pepper - 2018 2000609 Railroad Safety Trail Implementation
#22 - Broad Bicycle Blvd / Anholm Bikeway 2000036 North Chorro Neighborhood Greenway - Phase 2 2024 Complete $ 5,000,000.00 $ 1,196,542.00 24% $ 207,005.00 17% 1000502 Active Transportation Plan Implementation
99615/ 2099615 Bicycle Projects
1000073/ 2000073 Transportation Safetey and Operations
2000069 Pedestrian Crossing Improvements
1000015 2018 Transportation Monitoring
90949 Traffic Model Update
1000537/ 2000537 Transportation Monitoring & Modeling Update 2000165 Transportation Impact Fee Program Update
90653 Traffic Volume Counts
a - Interchange project substantially completed in 2016, wtih additional costs incurred through 2022 for landscape mitigation. Ongoing costs include pay-down of debt financing obligations for interchange construction. b - TIF Project #8 includes upgrades at multiple intersections. One intersection improvemetn (Broad/Woodbridge) was substantially completed in 2022, with the remaining anticipated to start construction by 2030. c - TIF Project #9 includes multiple intersection control upgrades within the city. Two of these intersections (Tank Farm/Long and Orcutt/Sacramento) were completed in 2021, with the remaining anticipated to start construction by 2030. d - TIF Project #19 includes a larger road extension. A portion of this project was constructed (Higuera to Serra Meadows) is copmlete, with the remaining street extension anticipated to be constructed in phases through 2035. e - TIF Project #21 includes a larger cross-town bicycle path, a portion of which was completed in 2022 (Taft to Pepper). The remainder is expected to be constructed by 2035. f - TIF Project #40 includes several planned pedestrian/bicycle intersection crossing upgrades throughout the city. A portion of these are completed, with the remaining anticipated to be compelted by 2030.

Airport Area Transportation Development Impact Fee (Fund 503) TIF Project Name CIP Project Number CIP Project Name
Construction
Start Date
Project Status as
of 6/30/2024
Total Estimated
Project Cost
Estimated Cost
Funded by Fees
% of Project
Funded by Fees
Fees Expended to
Date
% of Fees
Funded
91252 Prado Road Bridge Widening TBD Design $ 22,042,320.00 $ 3,875,000.00 18% $ 646,172.92 17% 91613/ 2091613 Prado Road Interchange TBD Planning $ 72,319,571.00 $ 2,130,000.00 3% $ 47,687.78 2% 2000056 Reimbursement Agreement - 600 Tank Farm 2035 Ongoing (a) $ 7,250,751.00 $ 7,250,751.00 100% $ 127,951.77 2% Ongoing (f) $ 1,500,000.00
a - AASP TIF Project "Tank Farm Road (Including Median Improvements) includes a larger corridor improvement project with road widening, a new roundabout at Tank Farm/Santa Fe. Current expenditures reflect costs for pre-construction work related to the Tank Farm/Santa Fe Roundabout as part of the the 600 Tank Farm Road development project. Note that AASP TIF was retired in 2018 and projects were consolidated/transfered into Citywide TIF program. Funds reported here are for AASP TIF fees collected from development projects vested prior to 2018. Fees collected/expended on this project were excluded from TIF project costs included in Citywide TIF in 2018. $ 900,000.00 60% $ 97,615.90 11%
Tank Farm Road (Including Median Improvements)
#1 - Hwy 101/LOVR Interchange 100% $ 357,794.75 5%
#9 - Misc. Intersection Control Upgrades $ 15,750,000.00 $ 15,750,000.00 N/A $ 7,134,172.00 $ 7,134,172.00 Complete (a)/
Debt Service
7%
#4 - Orcutt & Tank Farm Intersection N/A Complete $ 4,748,684.00 $ 2,750,000.00 58% $ 2,755,687.42 100% 2030 Ongoing (c ) 100% $ 679,911.10 4%
Ongoing (e ) 103%
17%
#44 - Traffic Volume Count Program and Traffic
Model Ongoing Ongoing $ 900,000.00 $ 900,000.00 100% $ 109,855.65 12% #21 - Railroad Safety Trail $ 11,000,000.00 $ 2,871,701.00 26% $ 2,966,465.02 #2 - Hwy 101/Prado Interchange 2028 Design $ 35,000,000.00 $ 7,560,000.00 22% $ 1,249,672.43 #13 - Higuera Widening: Madonna Rd to City Limits $ 6,120,000.00 $ 2,754,000.00 45% $ 196,578.13 2035
#40 - MIsc. Ped Bike X-Ing Controls 2030 Page 307 of 551 41 Emergency Service Funds Project Details
Los Osos Valley Road Impact Fee Fund (Fund 504)
TIF Project Name CIP Project Number CIP Project Name
Construction
Start Date
Project Status as
of 6/30/2024
Total Estimated
Project Cost
Estimated Cost
Funded by Fees
% of Project
Funded by Fees
Fees Expended to
Date
% of Fees
Funded
T5,T6 - Costco Calle Joaquin Relocation Cost 1000175 Costco LOVR Development Reimbursement N/A Ongoing (a) $ 6,488,429.25 $ 6,488,429.25 100% $ 4,999,362.69 77% San Luis Ranch Transportation Development Impact Fee (Fund 514) TIF Project Name CIP Project Number CIP Project Name
Construction
Start Date
Project Status as
of 6/30/2024
Total Estimated
Project Cost
Estimated Cost
Funded by Fees
% of Project
Funded by Fees
Fees Expended to
Date
% of Fees
Funded
#29 - Madonna Class I (Hwy 101 to Oceanaire) 1000567/ 2000567 Madonna Road Bike Path Landscaping Design 2026 Ongoing (a) $ 1,500,000.00 $ 510,000.00 34% $ 27,799.80 5% #9 - Misc. Intersection Control Upgrades 1000073 Transportation Safety & Operations 2030 Ongoing (f) $ 15,750,000.00 $ 15,750,000.00 100% $ 6,648.00 0% b - TIF Project #9 includes multiple intersection control upgrades within the city. One intersection (LOVR/Calle Joaquin) was compelted in 2022, with the remaining anticipated to start construction by 2030.

Orcutt Area Transportation Impact Fee (Fund 515)
TIF Project Name CIP Project Number CIP Project Name
Construction
Start Date
Project Status as
of 6/30/2024
Total Estimated
Project Cost
Estimated Cost
Funded by Fees
% of Project
Funded by Fees
Fees Expended to
Date
% of Fees
Funded
T6 - Orcutt Road Widening N/A Orcutt Associates, LLC - Settlement/Reimbursement N/A Complete $ 383,400.00 $ 344,592.00 90% $ 216,531.00 63% B1 - Pedestrian and Bicycle Paths 20001062 ATP - Railroad Safety Trail & Bullock Culvert Replace 2027 Planning $ 2,800,000.00 $ 2,800,000.00 100% $ - 0% a - TIF Project XXX includes ongoing payment of reimbursement obligations to Costco for construction of the Calle Joaquin Road Realignment. Construction project is complete, but timing of final pay-off of reimbursement obligation is dependent on actual LOVR TIF fees collected. a - TIF Project #29 includes constuction of a shared-use path along Madonna Road, which was completed as part of the San Luis Ranch development in 2022. Additional expenditures through 2024 include path landscaping, which is anticipated to be completed in 2025-26.

Fire Impact Fee (Fund 516)
Project Number Project Name
Project
Start Date
Project Status as of
6/30/2025
Total Estimated
Project Cost
Estimated Cost
Funded by Fees
% of Project
Funded by Fees
Fees Expended
to Date
% of Fees
Expended
Fire Station Improvements $ 14,372,037.00 $ 2,525,815.00 18% TBD Fire Station 1 Fire Apparatus Repair Facility (Remodel) TBD Not Started $ 550,000.00 $ 96,800.00 18% $ - 0% TBD Fire Station 2 Remodel TBD Not Started $ 3,750,000.00 $ 660,000.00 18% $ - 0% 2000516 Fire Station 3 & 4 Remodel FY 25-26 Project Design $ 4,150,000.00 $ 730,400.00 18% $ - 0% 2000122 Fire Station 5 TBD Project Design $ 5,322,037.00 $ 936,679.00 18% $ - 0% TBD Fire Pumper TBD Not Started $ 600,000.00 $ 105,600.00 18% $ - 0% Fire Vehicles $ 5,640,022.00 $ 991,206.00 18%
2000554 Fleet Replacement: Fire May-25 Ordered $ 5,640,022.00 $ 991,206.00 18% $ - 0% Police Impact Fee (Fund 517)
Project Number Project Name
Project
Start Date
Project Status as of
6/30/2025
Total Estimated
Project Cost
Estimated Cost
Funded by Fees
% of Project
Funded by Fees
Fees Expended
to Date
% of Fees
Expended
Police Headquarters $ 47,435,000.00 $ 8,336,467.00 18%
TBD Police Headquarters TBD $ 40,211,086.00 $ 7,065,058.00 18% $ - 0% 2000577 Police Headquarters: Police Station TI - 1106 Walnut FY 25-26 Ready to Construct $ 7,223,914.00 $ 1,271,408.86 18% $ - 0% Police Vehicles $ 609,800.00 $ 609,800.00 100%
TBD Fleet Replacement: Police TBD Not Started $ 609,800.00 $ 609,800.00 100% $ - 0%

Page 308 of 551 ends

42 Utilities Funds Project Details
In-Lieu Fee Funds Project Details
Wastewater Development Impact Fee (Fund 506)
CIP Project Number CIP Project Name
Project Start
Date Project Status as of 6/30/2025
Total Estimated
Project Cost
Estimated Cost
Funded by Fees
% of Project
Funded by Fees
Fees Expended to
Date
% of Fees
Expended
91120/100077/2000607 WRRF Major Equipment Maintenance Jul-18 Ongoing $ 3,762,884.06 $ 602,061.45 16% $ 363,413.15 60% 91219/ 2091219 WRRF Facility Upgrade Sep-19 Ongoing $ 262,514,313.00 $ 46,722,533.55 18% See Loan Below - DEBT09 WRRF SRF Loan N/A Debt Service* - - - $ 876,911.71 0% DEBT02 2014 US Bank Wastewater Lease Installment Agreement - WRRF Energy Efficiency Project N/A Debt Service $ 21,139,000.00 $ 4,324,359.00 20% $ 691,681.11 16% 91118/ 2091118/1000087 Sewer Lift Station and Siphon Replacement - Calle Joaquin May-19 Complete $ 4,000,000.00 $ 1,778,149.64 44% $ 3,345,053.00 188% 91214 Sewer Lift Station Replacement - Margarita May-18 Complete $ 1,500,000.00 $ 741,725.26 49% $ 592,497.61 80% 91224/ 2091224 Sewer Lift Station Replacement - Foothill Jul-26 Planning $ 2,098,000.00 $ 491,021.28 23% $ 29,893.22 6% 91369/ 2091369 Sewer Lift Station Replacement - Airport Jul-24 Planning $ 2,130,000.00 $ 1,483,818.36 70% $ 99,610.46 7% N/A Sewer Lift Station - Silver City Oct-21 Ongoing $ 2,150,000.00 $ 319,479.00 15% $ - 0% N/A Sewer Lift Station - Laguna Oct-12 Complete $ 3,121,300.00 $ 743,281.00 24% $ - 0% 1000083/ 2000083 Sewer Lift Station - Buckley Sep-20 Reimbursement $ 2,387,877.00 $ 2,387,876.51 100% $ 903,076.00 38% DEBT01/ DEBT03 2008 Suntrust Loan and 2009 State Infrastructure Bank (CIEDB) Loan - Tank Farm Lift Station N/A Debt Service $ 18,325,682.00 $ 8,532,321.18 47% $ 2,336,207.17 27% *First 2019 SRF Loan payment is pending final amortization schedule.

Water Development Impact Fee (Fund 509)
CIP Project Number CIP Project Name
Project Start
Date Project Status as of 6/30/2025
Total Estimated
Project Cost
Estimated Cost
Funded by Fees
% of Project
Funded by Fees
Fees Expended to
Date
% of Fees
Expended
91506 / 2091506 Groundwater Well Development Program Mar-22 Ongoing $ 1,470,000.00 $ 573,300.00 39% $ 885,478.07 154% - - $ 30,729,495.00 $ 4,916,719.92 16% $ 1,865,277.14 38% 91730 / 2001021 WTP Ozone System Maintenance Jul-17 Complete $ 236,133.00 $ 37,782.00 16% $ 19,491.00 52% 91731 / 2001022 WTP Chemical System Maintenance Jul-17 Complete $ 54,000.00 $ 8,640.00 16% $ 1,153.76 13% 91732 WTP Air Compressor and Dryer Maintenance Jul-17 Complete $ 50,000.00 $ 8,000.00 16% $ - 0% 91733 WTP Air Compressor Replacement Jul-17 Complete $ 10,000.00 $ 1,600.00 16% $ - 0% 99653 / 2000044 / 2001026 WTP Major Equipment Maintenance Jul-17 Complete $ 2,156,050.00 $ 344,968.00 16% $ 194,939.47 57% 1000542 / 2000542 Water Treatment Plant Major Facility Maintenance Jul-18 Ongoing $ 1,637,000.00 $ 261,920.00 16% $ 161,361.82 62% 91368 / 2091368 / 1000034 / 2000034 Water Storage Tank Maintenance Jul-18 Ongoing $ 11,836,312.00 $ 1,893,809.92 16% $ 725,783.01 38% 91566 Water Treatment Plant Energy Efficiency (SST) Dec-19 Complete $ 14,750,000.00 $ 2,360,000.00 16% See Loan Below - DEBT07 2020 CIEDB (I-Bank) Loan - Water Treatment Plant Energy Efficiency N/A Debt Service - - - $ 762,548.08 32% - - $ 11,532,100.00 $ 4,514,857.00 39% $ 29,876.56 0.7% 1000528/ 2000528 Recycled Water Broad Street - Tank Farm to Aerovista Deferred Preliminary - - - $ 5,503.12 0.1% 1000530 / 2000530 Recycled Water Tank Jul-21 Preliminary - - - $ 21,845.82 0.5% 2000573 / 1000573 Recycled Water Systems Retrofits Jul-22 Preliminary - - - $ 2,527.62 0.1% DEBT04 2012 Water Revenue Refunding Bond N/A Debt Service $ 24,842,500.00 $ 3,831,389.00 15% $ 427,950.00 11% DEBT05 2018 Refunding Bond (Refund 2005, 2006, 2009 Bonds) N/A Debt Service $ 7,776,700.00 $ 3,888,350.00 50% $ - 0% DBET06 2018 Refunding Water Bond (Refund 2006 Bonds) N/A Debt Service $ 22,566,900.00 $ 3,480,430.00 15% $ 1,494,588.53 43% DEBT08 Nacimiento Pipeline N/A Debt Service $ 149,879,829.00 $ 58,678,467.00 39% $ 12,646,418.53 22% Water Treatment
Water Reuse Page 309 of 551
43 Affordable Housing Inclusionary In-Lieu Fee (Fund 505) Project Number Project Name
Project
Start Date
Project Status as of
6/30/2025
Total Estimated
Project Cost
Estimated Cost
Funded by Fees
% of Project
Funded by Fees
Fees Expenses to
Date % Funded
1000125 Courtyard at the Meadows Dec-18 Complete $ 14,100,000.00 $ 527,401.04 4% $ 527,401.04 100% 90496 Housing Trust Fund* Sep-18 Complete unknown $ - n/a $ - n/a N/A 527 Branch St/ 526 South St* Jun-19 Complete $ 1,411,500.00 $ - n/a $ - n/a 1000193 AHF Broad Street Place* Mar-21 Complete unknown $ - n/a $ - n/a N/A Anderson Hotel* Apr-23 Complete $ 55,600,000.00 $ - n/a $ - n/a N/A Bridge Street Feb-24 Complete $ 25,001,889.00 $ 1,925,076.00 8% $ 1,925,076.00 100% N/A Maxine Lewis Feb-24 Complete $ 19,700,000.00 $ 310,347.00 2% $ 310,347.00 100% *Funded entirely by other sources, no In-Lieu Fees were used.

Parkland In-Lieu Quimby Fee (Fund 501)
Project Number Project Name
Project
Start Date
Project Status as of
6/30/2025
Total Estimated
Project Cost
Estimated Cost
Funded by Fees
% of Project
Funded by Fees
Fees Expended to
Date
% of Fees
Expended
91563 Pickleball Courts Jul-19 Complete $ 148,587.50 $ 148,587.50 100% $ 148,587.50 100% 91564 Sinsheimer Park Tennis Court Lighting Canceled Canceled $ - $ - n/a $ - n/a 91683/ 2091683 North Broad Street Park Dec-23 Complete $ 1,675,283.00 $ 1,511,203.14 90% $ 1,511,203.14 100% 1000188/ 2000188 Mitchell Park Revitalization Project Feb-24 Complete $ 476,671.75 $ 73,719.75 15% $ 73,719.75 100% 1000190 Emerson Park Fitness Court Nov-21 Complete $ 299,748.29 $ 299,748.29 100% $ 298,976.09 100% 2001068 Laguna Lake Dog Park Sep-24 Complete $ 1,853,683.00 $ 1,574,290.00 85% $ 1,574,111.69 100% Open Space In-Lieu Protection (Fund 502)
Project Number Project Name
Project
Start Date
Project Status as of
6/30/2025
Total Estimated
Project Cost
Estimated Cost
Funded by Fees
% of Project
Funded by Fees
Fees Expended to
Date
% of Fees
Expended
91112 Froom Ranch Improvements N/A Complete $ 25,169.81 $ 25,169.81 100% $ 25,169.81 100% 99837 Open Space Acquisition N/A Complete $ 848,856.67 $ 848,856.67 100% $ 848,856.67 100% Parking In-Lieu Fee (Fund 611)
Project Number Project Name
Project
Start Date
Project Status as of
6/30/2025
Total Estimated
Project Cost
Estimated Cost
Funded by Fees
% of Project
Funded by Fees
Fees Expended to
Date
% of Fees
Expended
90435-1A
90435-1B
90435-2
Public Art In-Lieu Fee (Fund 207)
Project Number Project Name
Project
Start Date
Project Status as of
6/30/2025
Total Estimated
Project Cost
Estimated Cost
Funded by Fees
% of Project
Funded by Fees
Fees Expended to
Date
% of Fees
Expended
1000503/ 2000503 Annual Public Art Maintenance and Projects 2018-2019 Ongoing $ 768,401.16 $ 768,401.16 100% $ 659,727.62 86% 2000510 Public Art Installation 2020 Ongoing $ 519,018.55 $ 480,757.03 93% $ 424,453.88 88% Cultural Arts District Parking Structure Phase 2 Nov-23 Under Construction $ 44,511,426.53 $ 4,461,573.68 10% $ 4,461,573.68 100%

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44 Exhibit B
Historical Project Expenditures
Exhibit B reflects a complete list of projects for which expenses were incurred. Each fund’s expenditures are organized by project, fiscal year and summarizes the total expenditures for a given project over the past seven years. Expenditures reported are from July 1, 2018, to June 30, 2025.

Citywide Park Development Impact Fee (Fund 510)
Project Number Project Name FY 18-19 FY 19-20 FY 20-21 FY 21-22 FY 22-23 FY 23-24 FY 24-25 Total to Date N/A N/A $ - $ - $ - $ - $ - $ - $ - $ -
$ -
Citywide Park Improvement Impact Fee (Fund 519)
Project Number Project Name FY 18-19 FY 19-20 FY 20-21 FY 21-22 FY 22-23 FY 23-24 FY 24-25 Total to Date 2000188 Mitchell Park Improvements $ - $ - $ - $ - $ - $ 51,716.13 $ 173,119.86 $ 224,835.99 2000514 Emerson Park Amenity Upgrades & Beutification $ - $ - $ - $ - $ - $ - $ - $ - $ 224,835.99
Orcutt Area Specific Plan Parks Impact Fee (Fund 511)
Project Number Project Name FY 18-19 FY 19-20 FY 20-21 FY 21-22 FY 22-23 FY 23-24 FY 24-25 Total to Date 2000057 Orcutt Area Parks (Neighborhood, Linear, Pocket) $ - $ - $ - $ - $77,083.28 $ 441,191.89 $ 217,346.20 $ 735,621.37 2000054 Righetti Community Park $ - $ - $ - $ - $ - $ - $ 28,635.27 $ 28,635.27 $ 764,256.64
Margarita Area Specific Plan Parks Impact Fee (Fund 512) Project Number Project Name FY 18-19 FY 19-20 FY 20-21 FY 21-22 FY 22-23 FY 23-24 FY 24-25 Total to Date TBD MASP Planned Park $ - $ - $ - $ - $ - $ - $ - $ -
$ -

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45 Citywide Transportation Development Impact Fee (Fund 507) Project Number Project Name FY 18-19 FY 19-20 FY 20-21 FY 21-22 FY 22-23 FY 23-24 FY 24-25 Total to Date 1000013 WRRF Modeling $ 393.33 $ - $ - $ - $ - $ - $ - $ 393.33 1000015 2018 Transportation Monitoring $ 60,045.00 $ - $ - $ - $ - $ - $ - $ 60,045.00 90653 Traffic Volume Counts $ 4,935.00 $ - $ - $ - $ - $ - $ - $ 4,935.00 91252/2091252 Prado Road Bridge Widening $ 118,916.33 $ 44,078.37 $ - $ 117,695.70 $ 10,598.00 $ - $211,316.96 $ 502,605.36 91293 Railroad Crossing Upgrade - California & Foothill $ 5,406.00 $ - $ - $ - $ - $ - $ - $ 5,406.00 91294/ 2091294 Higuera at 50 Higuera Widening $ 1,089.00 $ - $ - $ - $ 69,920.25 $ 17,407.02 $ 57,239.40 $ 145,655.67 91375/ 2091375 Railroad Safety Trail Taft to Pepper - 2018 $ 177,673.63 $ 565,072.99 $ 1,048,375.56 $ 1,122,643.11 $ 47,219.70 $ - $ - $ 2,960,984.99 91435 LOVR Interchange Landscape $ 257,794.75 $ 50,000.00 $ 40,000.00 $ 10,000.00 $ - $ - $ - $ 357,794.75 91609 Broad Street Corridor Access Improvements $ 25,155.75 $ 434.10 $ 108,863.89 $ 162,281.99 $ - $ - $ - $ 296,735.73 91610/ 2091610 Higuera Widening Chumash to Fontana $ 10,597.50 $ 21,571.05 $ 4,781.75 $ 2,284.25 $ 1,855.50 $ 67,071.81 $ 1,690.70 $ 109,852.56 91611 Orcutt Tank Farm Roundabout Design $ 156,694.25 $ 107,853.25 $ 12,335.50 $ - $ - $ - $ - $ 276,883.00 91613/ 2091613 Prado Road Interchange $ 261,800.75 $ 329,967.15 $ 208,532.32 $ 265,019.46 $ 172,809.42 $ 11,150.00 $ - $ 1,249,279.10 90949 Traffic Model Update $ - $ 51,553.73 $ 20,093.58 $ 7,247.00 $ - $ - $ 60,620.59 $ 139,514.90 99615 Bicycle Projects $ - $ 15,045.72 $ - $ (5,384.07) $ - $ - $ - $ 9,661.65 1000164/ 2000164 Orcutt/ Tank Roundabout Construction $ - $ - $ 94,292.70 $ 1,638,144.27 $ 742,572.77 $ 3,844.68 $ 2,742.38 $ 2,481,596.80 1000502 Active Transportation Plan Implementation $ - $ - $ - $ 1,521.57 $ 18,678.98 $ - $ - $ 20,200.55 1000537/ 2000537 Transportation Monitoring & Modeling $ - $ - $ - $ 500.00 $ 39,500.00 $ 13,650.00 $ 41,030.14 $ 94,680.14 1000073/ 2000073 Traffic Safety and Operations $ - $ - $ - $ - $ 3,441.00 $ 31,773.00 $ - $ 35,214.00 2000069 Pedestrian Crossing Improvements $ - $ - $ - $ - $ 5,304.58 $ 25,154.99 $ 15,485.00 $ 45,944.57 2000036 North Chorro Neighborhood Greenway - Phase 2 $ - $ - $ - $ - $ - $207,005.00 $ 10,895.00 $ 217,900.00 2000609 Railroad Safety Trail Implementation $ - $ - $ - $ - $ - $ 5,480.03 $ 110.00 $ 5,590.03 2000165 Transportation Impact Fee Program Update $ - $ - $ - $ - $ - $ - $ 58,210.76 $ 58,210.76 2000195 Prado Road Extenstion Reimbursement $ - $ - $ - $ - $ - $ - $ - $ - 2000608 Active Transportation Plan Implementation $ - $ - $ - $ - $ - $ - $ - $ - 2099821 San Luis Creek Bridge Widening at LOVR $ - $ - $ - $ - $ - $ - $ - $ - N/A Reimbursement Agreement - SLO Public Market $ - $ - $ 367,755.02 $ - $ - $ - $ - $ 367,755.02 N/A Reimbursement Agreement - The Connect $ - $ - $ - $ 312,156.08 $ - $ - $ - $ 312,156.08 $ 9,758,994.99
Airport Area Transportation Development Impact Fee (Fund 503) Project Number Project Name FY 18-19 FY 19-20 FY 20-21 FY 21-22 FY 22-23 FY 23-24 FY 24-25 Total to Date 91252/ 2091252 Prado Road Bridge Widening $ 8,992.23 $ 46,188.59 $ 245,533.17 $ 201,495.76 $ 2,000.00 $141,963.17 $157,337.08 $ 803,510.00 2091613 Prado Road Interchange $ - $ - $ - $ - $ 9,002.64 $ 38,685.14 $ 3,107.31 $ 50,795.09 2000056 Reimbursement Agreement - 600 Tank Farm $ - $ - $ - $ - $ - $127,951.77 $ 73,797.84 $ 201,749.61 $ 1,056,054.70

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46 Los Osos Valley Road Impact Fee Fund (Fund 504)
Project Number Project Name FY 18-19 FY 19-20 FY 20-21 FY 21-22 FY 22-23 FY 23-24 24-25 Total to Date 1000175 Costco LOVR Development Reimbursement $ - $ 270,094.10 $ - $ - $ 114,635.00 $ 22,885.69 $566,787.71 $ 974,402.50 $ 974,402.50
San Luis Ranch Transportation Development Impact Fee (Fund 514) Project Number Project Name FY 18-19 FY 19-20 FY 20-21 FY 21-22 FY 22-23 FY 23-24 FY 24-25 Total to Date 1000073 Transportation Safety And Operations $ - $ - $ - $ 6,648.00 $ - $ - $ - $ 6,648.00 1000567/ 2000567 Madonna Road Bike Path Landscaping Design $ - $ - $ - $ - $ 24,096.00 $ 3,703.80 $ - $ 27,799.80 $ 34,447.80
Orcutt Area Transportation Impact Fee (Fund 515)
Project Number Project Name FY 18-19 FY 19-20 FY 20-21 FY 21-22 FY 22-23 FY 23-24 FY 24-25 Total to Date 20001062 ATP - Railroad Safety Trail & Bullock Culvert Replace $ - $ - $ - $ - $ - $ - $ - $ - N/A Orcutt Associates, LLC - Settlement Agreement $ - $ - $ 216,531.00 $ - $ - $ - $ - $ 216,531.00 $ 216,531.00
Fire Impact Fee (Fund 516)
Project Number Project Name FY 18-19 FY 19-20 FY 20-21 FY 21-22 FY 22-23 FY 23-24 FY 24-25 Total to Date TBD Fire Station 1 Fire Apparatus Repair Facility (Remodel) $ - $ - $ - $ - $ - $ - $ - $ - TBD Fire Station 2 Remodel $ - $ - $ - $ - $ - $ - $ - $ - 2000516 Fire Station 3 & 4 Remodel $ - $ - $ - $ - $ - $ - $ - $ - 2000122 Fire Station 5 $ - $ - $ - $ - $ - $ - $ - $ -
TBD Fire Pumper $ - $ - $ - $ - $ - $ - $ - $ -
2000554 Fleet Replacement: Fire $ - $ - $ - $ - $ - $ - $ - $ - Police Impact Fee (Fund 517)
Project Number Project Name FY 18-19 FY 19-20 FY 20-21 FY 21-22 FY 22-23 FY 23-24 FY 24-25 Total to Date 2000577 Police Station TI - 1106 Walnut $ - $ - $ - $ - $ - $ - $ - $ - TBD Police Headquarters $ - $ - $ - $ - $ - $ - $ - $ - 2000553 Fllet Replacement: Police $ - $ - $ - $ - $ - $ - $ - $ -

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47 Wastewater Development Impact Fee (Fund 506)
Project Number Project Name FY 18-19 FY 19-20 FY 20-21 FY 21-22 FY 22-23 FY 23-24 FY 24-25 Total to Date 91118 Sewer Lift Station and Siphon Replacement - Calle Joaquin (91118) $ 9,345.19 $ 127,226.69 $ 36,905.56 $ 722,214.75 $ 1,491,846.80 $ - $ - $ 2,387,538.99 91120 WRRF Major Equipment Maintenance (91120) $ - $ - $ - $ - $ - $ - $ - $ - 91214 Sewer Lift Station Replacement - Margarita (91214) $ 592,497.61 $ - $ - $ - $ - $ - $ - $ 592,497.61 91224 Foothill Sewer Lift Station $ 2,080.15 $ 2,097.22 $ 4,044.48 $ 20,400.17 $ 1,108.21 $ - $ - $ 29,730.24 91369 Sewer Lift Station Replacement - Airport $ 12,681.73 $ 12,488.46 $ 42,536.73 $ 12,184.03 $ 2,809.63 $ - $ - $ 82,700.56 1000077 WRRF Asset Maintenance Management [1000077] $ - $ - $ 13,745.07 $ - $ 8.64 $ - $ - $ 13,753.71 1000083 Buckley Sewer Lift Station [1000083] $ - $ - $ 30,532.50 $ 136,643.78 $ 21,763.83 $ - $ - $ 188,940.11 1000087 Sewer Lift Station – Calle Joaquin $ - $ 3,957.19 $ - $ - $ - $ - $ - $ 3,957.19 2000083 Buckley Sewer Lift Station [1000083] $ - $ - $ - $ - $ 128,106.00 $ 185,837.40 $ 400,192.95 $ 714,136.35 2000551 WRRF Power Cogeneration Upgrade [1000551] $ - $ - $ - $ - $ - $ - $ 881.60 $ 881.60 2091118 Calle Joaquin Sewer Lift Station and Siphon Replacement [91118] $ - $ - $ - $ - $ 461,193.28 $ 484,824.36 $ 7,539.18 $ 953,556.82 2091224 Foothill Sewer Lift Station $ - $ - $ - $ - $ 162.98 $ - $ - $ 162.98 2091369 Sewer Lift Station Replacement - Airport $ - $ - $ - $ - $ 224.35 $ 16,685.55 $ - $ 16,909.90 DEBT01 2009 State Infrastructure Bank (CIEDB) Loan - Tank Farm Lift Station $ 261,560.50 $ 261,090.22 $ 260,604.66 $ 260,103.32 $ 259,585.68 $ 259,051.22 $ 258,499.38 $ 1,820,494.97 DEBT02 2014 US Bank Wastewater Lease Installment Agreement $ 98,908.25 $ 98,877.56 $ 98,845.97 $ 98,813.47 $ 98,780.03 $ 98,745.62 $ 98,710.21 $ 691,681.11 DEBT03 2008 Suntrust Loan $ 85,866.65 $ 85,305.00 $ 86,945.30 $ 86,087.55 $ 85,131.10 $ 86,376.60 $ - $ 515,712.20 DEBT09 2019 SRF Loan - WRRF $ - $ - $ - $ - $ - $ - $ 876,911.71 $ 876,911.71 $ 8,889,566.04

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48 Water Development Impact Fee (Fund 509)
Project Number Project Name FY 18-19 FY 19-20 FY 20-21 FY 21-22 FY 22-23 FY 23-24 FY 24-25 Total to Date 91506 Groundwater Well Development Program (91506) $ 26,705.98 $ 10,085.52 $ 98,724.88 $ 570,784.08 $ 142,106.27 $ - $ - $ 848,406.73 91730 WTP Ozone System Maintenance (91730) $ 11,648.05 $ 4,920.07 $ - $ - $ - $ - $ - $ 16,568.11 99653 WTP Major Equipment Maintenance $ 2,779.56 $ 32,494.77 $ 21,381.30 $ 25,644.72 $ 29,292.11 $ - $ - $ 111,592.46 1000034 Reservoir Maintenance $ - $ 25,558.95 $ 940.86 $ 112,798.84 $ 7,187.31 $ - $ - $ 146,485.96 1000044 Water TTHM Byproduct Reduction Project [1000044] $ 12,501.82 $ 414,034.47 $ 21,709.32 $ 11,103.01 $ 2,116.86 $ - $ - $ 461,465.48 1000064 Groundwater Basin Management $ 18,884.58 $ 10,528.83 $ - $ - $ - $ - $ - $ 29,413.41 1000150 Groundwater Basin Management Revised $ - $ 81,312.23 $ 48,374.81 $ 21,580.75 $ - $ - $ - $ 151,267.79 1000528 Recycled Water Broad Street - Tank Farm to Aerovista $ - $ - $ - $ - $ 3,835.04 $ - $ - $ 3,835.04 1000530 Recycled Water Tank $ - $ - $ - $ 1,402.96 $ 4,100.16 $ - $ - $ 5,503.12 1000542 Water Treatment Plant Major Facility Maintenance $ - $ - $ - $ 5,816.46 $ 5,842.33 $ - $ - $ 11,658.78 1000573 Recycled Water Systems Retrofits $ - $ - $ - $ - $ 2,310.10 $ - $ - $ 2,310.10 2000034 Water Storage Tank Maintenance [1000034] $ - $ - $ - $ - $ 10,564.98 $ 447,573.10 $ 119,927.76 $ 578,065.85 2000044 Water TTHM Byproduct Reduction Project [1000044] $ - $ - $ - $ - $ 39.35 $ 7,203.31 $ - $ 7,242.66 2000126 Public Safety Power Shutoff - Emergency Power [1000126] $ - $ - $ - $ - $ 36,736.41 $ 162,763.65 $ 99,481.81 $ 298,981.88 2000150 SGMA GSP (Groundwater Basin Management) [1000150] $ - $ - $ - $ - $ 9,843.75 $ 12,828.52 $ 8,810.66 $ 31,482.93 2000528 Recycled Water Broad Street - Tank Farm to Aerovista $ - $ - $ - $ - $ - $ - $ - $ - 2000530 Recycled Water Tank [1000530] $ - $ - $ - $ - $ - $ - $ 16,342.70 $ 16,342.70 2000542 WTP Major Facility Maintenance [1000542] $ - $ - $ - $ - $ 4,601.95 $ 120,755.12 $ 24,345.98 $ 149,703.04 2000573 Recycled Water Systems Retrofits [1000573] $ - $ - $ - $ - $ - $ 217.52 $ - $ 217.52 2000606 WRRF Asset Maintenance Management [1000077] $ - $ - $ - $ - $ - $ 20,017.20 $ - $ 20,017.20 2000607 WRRF Major Equipment Maintenance [1000077] $ - $ - $ - $ - $ 13,256.28 $ 272,176.51 $ 64,226.66 $ 349,659.45 2001021 WTP Ozone System Maintenance [91730] $ - $ - $ - $ - $ - $ 2,923.08 $ - $ 2,923.08 2001022 WTP Chemical System Maintenance [91731] $ - $ - $ - $ - $ 1,153.76 $ - $ - $ 1,153.76 2001026 WTP Major Equipment Maintenance [99653] $ - $ - $ - $ - $ 4,786.26 $ 39,447.60 $ 31,870.48 $ 76,104.35 2091368 Reservoir No 2 Replacement [91368] $ - $ - $ - $ - $ - $ - $ 1,231.20 $ 1,231.20 2091506 Groundwater Well Development Program (91506) $ - $ - $ - $ - $ - $ 14,139.59 $ 22,931.75 $ 37,071.34 DEBT04 2012 Water Revenue Refunding Bond $ 85,740.00 $ 85,170.00 $ 85,260.00 $ 85,980.00 $ 85,800.00 $ - $ - $ 427,950.00 DEBT05 2018 Refunding Bond (Refund 2005, 2006, 2009 Bonds) $ - $ - $ - $ - $ - $ - $ - $ - DEBT06 2018 Refunding Water Bond (Refund 2006 Bonds) $ 215,712.53 $ 212,136.00 $ 214,152.00 $ 213,528.00 $ 212,760.00 $ 213,120.00 $ 213,180.00 $ 1,494,588.53 DEBT07 2020 CIEDB (I-Bank) Loan $ - $ - $ 150,772.63 $ 153,363.92 $ 153,088.50 $ 152,806.19 $ 152,516.83 $ 762,548.08 DEBT08 Nacimiento Pipeline $ 1,846,890.65 $ 1,799,015.28 $ 1,800,680.03 $ 1,798,209.67 $ 1,797,796.56 $ 1,801,555.34 $ 1,802,271.00 $ 12,646,418.53 $ 18,690,209.08

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49 Affordable Housing Inclusionary Fee (Fund 505)
Project Number Project Name FY 18-19 FY 19-20 FY 20-21 FY 21-22 FY 22-23 FY 23-24 FY 24-25 Total to Date 1000125 AHF Courtyard at the Meadows $ 630,000.00 $ - $ - $ - $ - $ - $ - $ 630,000.00 90496 SLO County Housing Trust Fund $ 80,000.00 $ - $ - $ - $ - $ - $ - $ 80,000.00 N/A 527 Branch St/ 526 South St $ - $ 330,000.00 $ - $ - $ - $ - $ - $ 330,000.00 1000193 AHF Broad Street Place $ - $ - $ 1,300,000.00 $ - $ - $ - $ - $ 1,300,000.00 N/A Anderson Hotel $ - $ - $ - $ - $ 1,700,000.00 $ - $ - $ 1,700,000.00 N/A Bridge Street $ - $ - $ - $ - $ - $ 1,925,076.00 $ - $ 1,925,076.00 N/A Maxine Lewis $ - $ - $ - $ - $ - $ 1,574,814.00 $ - $ 1,574,814.00 *NOTE* Includes all funding sources used $ 7,539,890.00 Parkland In-Lieu Quimby Fee (Fund 501)
Project Number Project Name FY 18-19 FY 19-20 FY 20-21 FY 21-22 FY 22-23 FY 23-24 FY 24-25 Total to Date 91563 Pickleball Courts $ - $ 148,587.50 $ - $ - $ - $ - $ - $ 148,587.50 91564 Sinsheimer Park Tennis Court Lighting $ - $ - $ - $ - $ - $ - $ - $ - 2000057 Development Related Parks Improvements $ - $ - $ - $ - $ - $ - $ 1,547.50 $ 1,547.50 91683/ 2091683 North Broad Street Park $ 7,748.95 $ 63,656.61 $ 7,748.95 $ 37,069.57 $ 49,398.42 $ 1,161,738.43 $ 183,842.21 $ 1,511,203.14 1000188/ 2000188 Mitchell Park Picketball Courts $ 4,274.75 $ - $ 4,274.75 $ 4,053.50 $ - $ 73,229.75 $ - $ 85,832.75 1000190 Emerson Park Fitness Court $ - $ - $ - $ 298,976.09 $ - $ - $ - $ 298,976.09 2001068 Laguna Lake Dog Park $ - $ - $ - $ - $ - $ - $ 1,574,069.83 $ 1,574,069.83 $ 3,620,216.81
Open Space Protection Fund (Fund 502)
Project Number Project Name FY 18-19 FY 19-20 FY 20-21 FY 21-22 FY 22-23 FY 23-24 FY 24-25 Total to Date 91112 Froom Ranch Improvements $ 18,104.81 $ 7,065.00 $ - $ - $ - $ - $ - $ 25,169.81 99837 Open Space Acquisition $ 821,687.22 $ 27,169.45 $ - $ - $ - $ - $ - $ 848,856.67 $ 874,026.48
Parking In-Lieu (Fund 611)
Project Number Project Name FY 18-19 FY 19-20 FY 20-21 FY 21-22 FY 22-23 FY 23-24 FY 24-25 Total to Date 2000117 Cultural Arts District Parking Structure $ - $ 1,064,830.97 $ 230,686.25 $ - $ 743,138.90 $ 2,104,922.15 $ 317,995.41 $ 4,461,573.68 $ 4,461,573.68
Public Art In-Lieu (Fund 207)
Project Number Project Name FY 18-19 FY 19-20 FY 20-21 FY 21-22 FY 22-23 FY 23-24 FY 24-25 Total to Date 1000503/ 2000503 Annual Public Art Maintenance and Projects $ 4,544.41 $ 55,796.80 $ 21,147.81 $ 82,779.28 $ 93,069.75 $ 157,784.01 $ 244,605.56 $ 659,727.62 2000510 Public Art Installation $ - $ - $ 334.40 $ 217,500.00 $ 115,220.24 $ 32,863.39 $ 58,535.85 $ 424,453.88 2000036 North Chorro Neighborhood Greenway - Phase 2 $ - $ - $ - $ - $ - $ - $ - $ - $ 1,084,181.50

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50 Exhibit C
Development Impact Fee & In-Lieu Fee Amounts
Fiscal Year 2024-2025
Parklands Fee Amount:

Utilities Fee Amount:

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51 Emergency Services Fee Amount:

Parking In-Lieu Fee Amount:

Affordable Housing In-Lieu Fee Amount:

Public Art Fee Amount:

Privately funded non-residential development with a total construction cost more than $100,000 must include public art with a value of one-half percent (0.5%) of the construction cost. As a voluntary option, the developer may pay an in-lieu fee. The fee is authorized by MC 17.70.140.

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52 Transportation Fee Amount:

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City of San Luis Obispo, Council Memorandum
City of San Luis Obispo
Council Agenda Correspondence
DATE: November 18, 2025
TO: Mayor and Council
FROM: Timmi Tway, Community Development Director
VIA: Whitney McDonald, City Manager
SUBJECT: ITEM #7A – INTRODUCE TWO ORDINANCES TO ADOPT BY REFERENCE THE 2025 CALIFORNIA BUILDING AND FIRE CODES

WITH LOCAL AMENDMENTS
The California Building Standards Commission has provided new direction to the Interim Building Official related to the adoption of appendices for building standards. Local jurisdictions will now be required to provide findings in support of adoption of appendices not adopted by a state agency. This was not a requirement of previous code adoption cycles, but likely has been created in response to the newly adopted amendments to the Health and Safety Code and the prohibition on new amendments that impact residential unit construction contained in AB 130. The Code Matrix tool (Attachment D to the Council Agenda Report) has been updated to include appendices that the City adopts for the Building, Mechanical, Plumbing, and Fire standards. The Matrix tool also provides the findings in support of their adoption in compliance with the new direction from the California Building Standards Commission. The updated Attachment D is provided with this Agenda Correspondence and supersedes the attachment in the original Council Agenda Report.

Attachment – Updated Attachment D - Code Matrix Tool

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15.04.010
(2026) Section BUILDING OFFICIAL AND FIRE CODE OFFICIAL DESIGNATED New Add Amend Delete Finding The Chief Building Official is hereby designated as the building official and code official for the City of San Luis Obispo. The Fire Chief is hereby designated as the fire code official for the City of San Luis Obispo.

Where the “authority having jurisdiction” is used in the adopted codes, it shall mean the building official or fire code official, as applicable. x 9

15.04.020
(2026) Section AMENDMENTS; BUILDING STANDARDS New Add Amend Delete Finding Appendix C Group U-Agricultural Buildings x 5,6,9
Appendix F Rodent Proofing x 2,7,9
Appendix G Flood-Resistant Construction x 1,2,9
Appendix N Replicable Buildings x 1,2,9
Appendix Q Emergency Housing x 1,3,9
A 101.1 Title x 9
B 103.1 Creation of enforcement agency x 9
C 104.9.2 Alternate Means and Methods Fee x 9
D 104.10* Airspace subdivisions x 9
E 105.2 Building Items
1, 2, 5 Work exempt from permit x 3,7
F 105.3.2 Time limitation of application x 9
G 105.3.3 Plan review fees x 9
G 105.3.3.1 Retaining Walls x 9
G 105.3.3.2 Separate Fees x 9
G 105.3.3.3 Incomplete Submittals x 9
H 105.5.1* Expiration x 9
H 105.5.2 Code Violations Expiration x 9
I 105.7 Placement and Posting of Permit x 9
J 109.4 Work Commencing Before Permit Issuance x 9
K 109.4.1 Code Enforcement Investigation Fee x 9
L 111.3.1 Temporary Certificate of Occupancy Fee x 9
M 112.4 Underground utility services x 9
M 112.5 Storage of solid waste containers x 9

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N 113.1 (Appeals) General
x9
N 113.2 Limitations on authorityx9
N 113.3 Qualificationsx
9 O 113.5 Fees
x9
P 116.1 Unsafe Conditions*x9
Q 202 Boarding Housex9
Q 202 Lot, Airspacex9
Q 202 Rainwater Harvesting Systemx9
Q 202 Subdivision, Airspacex9
R 602.1.2 Commercial fire zonex9
S 705.12*
Exception 7 Item 7
x 1,3,4,5,6
T 903.1.1 Minimum Sprinkler Coveragex 1,3,4,5,6
U 903.1.1.1 New Buildingsx 1,3,4,5,6
U 903.1.1.2 Existing Buildingsx 1,3,4,5,6
U 903.1.1.3 Additionsx 1,3,4,5,6
U 903.1.1.4 Change of Usex 1,3,4,5,6
U 903.1.1.5 Buildings with Plasticsx 1,3,4,5,6
U 903.1.1.6 Floor Area Calculationx 1,3,4,5,6
V 903.3.1.1 NFPA 13 sprinkler systemsx 1,3,4,5,6
V 903.3.1.1.1 Exempt locationsx 1,3,4,5,6
W 903.3.9* Isolation control valvesx 1,3,4,5,6
X 903.4 Sprinkler system supervision and alarmsx 1,3,4,5,6 Y 905.3.1 Building Heightx 1,3,4,5,6
Z 907.6.6 Monitoringx 1,3,4,5,6
AA 910.3.2.1 Sprinklered buildingsx 1,3,4,5,6
BB 1506.3.1 Wood shake and shingle roof covering limitations. x6 CC 1612.3 Establishment of flood hazard areasx9
DD 1804.4.2 Drainagex 2,7
EE 1809.7.1 Depth of isolated footingsx7
FF Table 1809.7 FOOTINGS SUPPORTING WALLS OF LIGHT-FRAME

CONSTRUCTION
x7
GG 1907.1 Generalx7
GG 1907.2 Minimum reinforcingx7

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GG 1907.3 Slab to foundation connection x 7
GG 1907.4 Moisture content x 7
GG 1907.5 Penetrations x 7
HH 3109.3 Access to pool x 7
HH 3109.4 Lighting x 7
HH 3109.5 Abandoned pools x 7
II G103.2 Establishment of flood hazard areas x 1,2,7
JJ G109 Title: "Buildings and Manufactured Homes" x 9
KK G109.1 Elevation x 7
LL G114.3 Elevation x 7
MM G114.6 Protection of mechanical and electrical systems x 1,3,4,5,6 NN J101.1 Scope x 7
OO J101.3 Hazardous conditions x 7
OO J101.4 Dust control x 7
OO J101.5 Emergency grading x 7
OO J101.6 Special grading standards x 7
OO J101.7 Approval for building construction x 7
PP J102 AVERAGE CROSS SLOPE x 7
PP J102 WATERWAY x 7
QQ J103.1 Permits required x 7
QQ J103.2 Exempted Work x 7
QQ J103.3 Early grading x 7
QQ J103.4 Bonds x 7
RR J104.2 Site plan requirements x 7
SS J110.1 General x 7
TT Table J101.6 GRADING TO REMAIN IN NATURAL STATE x 7

15.04.025
(2026) Section AMENDMENTS; RESIDENTIAL STANDARDS New Add Amend Delete Finding A R109.1.2 Exception
2 Exception x 9
B R301.2(1) DESIGN CRITERIA x 9
C R309.3.3.5* Sprinkler Activation Alarm x 1,3,4,5,6
D R306.1* General x 1,4
E R403.1 Foundations x 3,7

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15.04.030
(2026) Section AMENDMENTS; ELECTRICAL STANDARDS New Add Amend Delete Finding A 230.70(A)(1) Readily Accessible Location X 9

15.04.040
(2026) Section AMENDMENTS; MECHANICAL STANDARDS New Add Amend Delete Finding Appendix A Residential Plans Examiner Review Form for HVAC x 5,6,9 Appendix D Fuel Supply: Manufactured/Mobile Home Parks x 2,7,9 Appendix F Sizing of Venting Systems and Outdoor Combustion x 1,2,9 Appendix G Example Calculation of Outdoor Air Rate x 1,2,9 A 104.3.2 Plan Review Fees X 9
B 104.4 Permit Issuance X 9
C 104.5 Delete table X 9
C 104.5 Fees X 9
D 105.2.6 Reinspections X 9

15.04.050
(2026) Section AMENDMENTS; PLUMBING STANDARDS New Add Amend Delete Finding Appendix C Alternate Plumbing Systems x 1,2,9
Appendix E Manufactured/Mobile Home Parks and RV Parks x 5,6,9 Appendix G Sizing of Venting Systems x 2,7,9
Appendix K Potable Rainwater Catchment Systems x 2,7,9
Appendix N
Impact of Water Temperature on The Potential for Scalding and Legionella Growth x 1,2,9
A 104.3.2 Plan Review Fees X 9
B 104.4 Permit Issuance X 9
C 104.5 Delete table X 9
C 104.5 Fees X 9
D 105.2.6 Reinspections X 9

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E 314.4 Excavations X 7
F 715.2 Joining Methods and Materials X 2,7
G 1101.3.1 Rainwater Harvesting X 9
H 1601.3, Exceptions Exceptions X 9

15.04.090
(2026) Section AMENDMENTS; FIRE PREVENTION STANDARDS New Add Amend Delete Finding Appendix D Fire Apparatus Access Roads x 1,2,9
Appendix E Hazard Categories x 5,6,9
Appendix F Hazard Ranking x 1,3,5,9
Appendix G Cryogenic Fluids-Weight and Volume Equivalents x 2,5,7,9 Appendix I Fire Protection Systems-Noncompliant Conditions x 1,2,9 Appendix J Building Information Sign x 4,5,9
Appendix K Construction Requirements for Existing Ambulatory Care Facilities x 5,6,9 Appendix M High-Rise Buildings-Retroactive Automatic Sprinkler Requirement x 2,5,6,9 Appendix N Indoor Trade Shows and Exhibitions x 2,5,6,9 Appendix P
Temporary Haunted Houses, Ghost Walks and Similar Amusement Uses x 1,2,9
Appendix Q
Community Wildland-Urban Interface (WUI) Fire Hazard Evaluation Framework x 1,2,9
A 101.1 Title X 9
B 103.1 Creation of agency X 9
C 112* Board of appeals established* X 9
D 113.4* Violation penalties* X 9
E 114.4* Failure to comply* X 9
F 202 Sky Lantern X 9
G 302.2 Hazardous fire area X 9
H 305.6 Designation of territory as hazardous fire area by the Fire Chief X 9 H 305.6.1 Posting of notices X 9
H 305.6.2 Limitation on smoking or building campfires X 1,3,4,5,6 H 305.6.3 Order closing area to entry; Exceptions; Enforcement X 9 I 307.1.1 Prohibited open burning X 1,3,4,5,6

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I 307.2 Permit required X 1,3,4,5,6
J 307.4.1 Bonfires X 1,3,4,5,6
J 307.4.2 Recreational fires X 1,3,4,5,6
K 308.1.7* Sky lanterns* X 1,3,4,5,6
L 405.8 Initiation X 9
M 503.1.1 Buildings and facilities X 1,3,4,5,6
M 503.1.2 Additional access X 1,3,4,5,6
N 503.2.2 Authority X 9
O 503.2.5 Dead Ends X 1,3,4,5,6
P 503.4.1 Traffic calming devices X 1,3,4,5,6
Q 505.1 Address numbers X 9
R 507.2 Type of water supply X 1,3,4,5,6
S 507.5.1 Where required X 1,3,4,5,6
T 507.5.4.1 Authority to remove obstruction X 1,3,4,5,6 U 605.1.3 Fuel Oil X 1,3,4,5,6
V 605.9 Gas meters X 1,3,4,5,6
W 901.4.2 Nonrequired fire protection systems X 1,3,4,5,6 W 901.4.5 Additional fire protection systems X 1,3,4,5,6 X 901.6 Inspection, testing and maintenance X 1,3,4,5
Y 903.2 Where Required X 1,3,4,5,6
Z 903.2.10 Sprinkler Protection Requirements for Parking Garages Associated with Electric Vehicle Charging Stations X X 3,4
AA 903.2.22 Existing buildings in commercial fire zone X 1,3,4,5,6 AA 903.2.23* Notification X 9
BB 903.3.1.1 NFPA 13 sprinkler systems X 1,3,4,5,6
BB 903.3.1.1.1 Exempt locations X 1,3,4,5,6
CC 903.4 Sprinkler system supervision and alarms X 1,3,4,5,6 DD 903.4.3 Isolation Control Valves X 1,3,4,5,6
EE 905.3.1 Height X 1,3,4,5,6
FF 907.6.6 Monitoring X 1,3,4,5,6
GG 910.3.2.1 Sprinklered buildings X 1,3,4,5,6
HH 1207.1.1.1 Hazardous electrolyte thresholds X 9
II 2306.2 Method of storage X 1,3,4,5,6
II 2306.2.6 Delete section X 1,3,4,5,6
JJ 2306.2.3(3) Above-ground tanks located outdoors, above grade X 1,3,4,5,6

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KK 2306.2.4 Above-ground tanks located in above-grade vaults or below-grade vaults X 1,3,5,6
KK 2306.2.4.1 Tank capacity limits X 1,3,5,6
KK 2306.2.4.2 Delete section X 1,3,5,6
LL 2306.2.6, Items 1
and 6 Special enclosures X 1,3,4,5,6
MM 3307.1* Required access X 9
NN 5601.1 Scope X 1,3,4,5,6
NN 5601.1, exceptions
11 and 12 Add exceptions X 1,3,4,5,6
OO 5702 Add Definitions X 1,3,4,5,6
PP 5704.2.7 Design, fabrication and construction requirements for tanks X 1,3,4,5,6 PP 5704.2.7.5.8 Over-fill prevention, delete exception X 1,3,4,5,6 QQ 5704.2.8.3 Secondary containment X 1,3,4,5,6
RR 5704.2.8.11.1 Monitoring and detection X 1,3,4,5,6
SS 5704.2.9 Above-ground tanks outside of buildings X 1,3,4,5,6 TT 5704.2.13.1.4 Tanks abandoned in place X 1,3,4,5,6
UU 5706.2.4 Permanent and temporary tanks X 1,3,4,5,6
VV 5706.2.5 Type of tank. X 1,3,4,5,6
WW 6104.2 Maximum capacity within established limits X 1,3,4,5,6 XX B105.1 One- and two-family dwellings X 1,3,4,5,6
XX Table B105.1(1) Amend table title X 1,3,4,5,6
YY B105.2, Exception Buildings other than one- and two-family dwellings X 1,3,4,5,6 ZZ D103.1 Access Road width with a hydrant X 1,3,4,5,6
ZZ Exception to Figure
D103 1 Add exception to figure X 1,3,4,5,6
ZZ Figure D103.1 Amend figure X 1,3,4,5,6
AAA D103.4 Dead ends X 1,3,4,5,6

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AAA Table D103.4 Amend table X 1,3,4,5,6
BBB D103.6 Signs X 1,3,4,5,6
BBB D103.6.1 Roads less than 28 feet in width X 1,3,4,5,6 BBB D103.6.2 Roads 28 or greater feet in width X 1,3,4,5,6 CCC D104.1 Buildings exceeding three stories or 30 feet in height X 1,3,4,5,6 DDD D104.2, Exception Buildings exceeding 62,000 square feet in area X 1,3,4,5,6 EEE D105.2 Width X 1,3,4,5,6
FFF D106.1 Projects having more than 100 dwelling units X 1,3,4,5,6 GGG D106.2 Projects having more than 200 dwelling units X 1,3,4,5,6 HHH D107.1 One- or two-family dwelling residential developments X 1,3,4,5,6 HHH D107.1, Exception 1 Delete exception X 1,3,4,5,6

15.04.100
(2026) Section AMENDMENTS; EXISTING BUILDING STANDARDS New Add Amend Delete Finding A A101.1 Purpose X 9
B A102.1 General X 9
B A102.1 Add exception X 9
C A103 LEVEL A STRENGTHENING X 3,7
C A103 LEVEL B STRENGTHENING X 3,7
D A109.2 Selection of Procedure X 9
E A115 Administrative Provisions X 9
E A115.1 Compliance Requirements X 9
E A115.1.1 Strengthening deadlines X 9
E A115.1.2 Permits X 9
E A115.1.3 Posting of sign X 9
E A115.2 Notice and Order X 9
E A115.2.1 General X 9
E A115.2.2 Service of notice and order X 9
E A115.2.3 Content of notice and order X 9
E A115.3 Appeal X 9

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E A115.4 Recordation X 9
E A115.5 Enforcement X 9
E A115.6 Program monitoring and annual report X 9
E A115.7 Automatic Fire Sprinkler Systems X 1,3,4,5,6
F Appendix F* Demolition and Moving of Buildings X 9
F F101* General X 9
F F101.2* Scope X 9
F F101.3* Appeals X 9
F F102* Definitions X 9
F F103* Permit Requirements X 9
F F103.1* Permit required X 9
F F103.2* Moving and Relocation of Buildings X 9
F F103.2.1* Inspection of buildings to be moved X 9
F F103.2.2* Transportation and building permits required X 9 F F103.3* Procedure for permit application processing X 9 F F103.4* Guarantee X 9
F F103.5* Indemnity X 9
F F103.6* Damage to public property X 9
F F103.7* Insurance X 9
F F103.8* Disconnecting service lines X 9
F F104* Public Safety Requirements X 9
F F104.1* General X 9
F F104.2* Dust and debris X 9
F F105* Removal of Materials X 9
F F105.1* General X 9
F F105.2* Foundations X 7
F F105.3* Completion X 9

15.04.130
(2026) Section AMENDMENTS; PROPERTY MAINTENANCE STANDARDS New Add Amend Delete Finding A ALL Reference to Code X 9
B 101.1 Title X 9
C 102.3 Application to Other Code X 9
D 103.1 Creation of enforcement agency X 9

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E 109.2.2* Closed structures method X 9
F 109.4* Notice X X 9
G 109.7* Posting and Placarding* X 9
H 201.3 Terms defined in other codes X 9
I 202 CODE OFFICIAL X 9
J 302.1 Sanitation X 9
K 302.3 Sidewalks and driveways X 9
L 302.4 Weeds X 9
M 303.2 Enclosures X 9
N 304.14 Insect Screens X 9
O 307.1 General X 9
P 309.1, 309.2, 309.5 Infestation X X 9
Q 602.2 Residential occupancies X 9
R 602.3 Residential occupancies X 9
S 602.4 Occupiable work spaces X 9

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Item 7a
Department: Community Development
Fire Department
Cost Center: 4006, 8305
For Agenda of: 11/18/2025
Placement: Public Hearing
Estimated Time: 60 Minutes
FROM: Timmi Tway, Community Development Director
Todd Tuggle, Fire Chief
Prepared By: Ian Livingston, Acting Chief Building Official SUBJECT: INTRODUCE TWO ORDINANCES TO ADOPT BY REFERENCE THE 2025 CALIFORNIA BUILDING AND FIRE CODES WITH LOCAL

AMENDMENTS

RECOMMENDATION

1. Introduce an Ordinance entitled, “An Ordinance of the City Council of the City of San Luis Obispo, California, Amending Title 15 of the Municipal Code to adopt by reference and amend the latest edition of the California Building Standards Code and adopting findings of fact to support the amendments” (Attachment A) amending Chapters 15.02 and 15.04 of the Municipal Code adopting, by reference, the 2025 editions of the California Code of Regulations Title 24, the 1997 editions of the Uniform Housing Code and the Uniform Code for the Abatement of Dangerous Buildings, and the 2024 edition of the International Property Maintenance Code, with amendments. This Ordinance also includes adoption of the Wildland Urban Interface (WUI) Code.

2. Introduce an Ordinance entitled, “An Ordinance of the City Council of the City of San Luis Obispo, California, Adopting Local Amendments to Part 6 of the Building Construction and Fire Prevention Code, 2026” (Attachment B) providing local energy efficiency amendments to the California Energy Code.

REPORT-IN-BRIEF
The City is required to periodically adopt and enforce the updated California Building Standards Code to ensure safety of the built environment. Staff are recommending introduction of two ordinances: one to adopt by reference the latest edition of the California Building Standards Code which includes the newly-issued Wildland-Urban Interface Code (see Attachment A) and a second to make local amendments to the Energy Code, which is also part of the Building Standards Code (see Attachment B.) The local amendments to the Energy Code are intended to continue the City’s progress towards its climate action goals with cost effective energy efficiency measures for 1) major additions and alterations in certain single-family homes, and 2) the replacement of certain non-residential air conditioning units with electric heat pumps at time of replacement. The local amendments to the Energy Code are intended to continue the City’s progress

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Item 7a
towards its climate action goals by carrying forward the existing “Energy Efficient Alterations” program, which includes a requirement for major additions and alterations in certain single-family homes to include cost-effective energy efficiency upgrades in the existing building. The local amendments include updated compliance thresholds (moving from a square footage metric to a project valuation metric), and a simpler standard for requiring electric-readiness measures. This council agenda report describes the content of the two ordinances, as well as the existing policies governing local amendments to these codes.

In order to adopt local amendments to the codes, the City must first introduce the ordinances at this Public Hearing. Should Council move forward with staff’s recommendation to introduce the two ordinances attached to this report, the ordinances would return at a future City Council meeting for second reading and adoption. In addition, should the City Council adopt the adopt the amendments to the energy code, staff would submit the Ordinance, this Council Agenda Report, and related materials to the California Energy Commission and the California Building Standards Commission for approval, as required by State Law.

POLICY CONTEXT
Local adoption and enforcement of the triennial California Building Standards Code is statutorily required as codified in Health & Safety Code §§17958 and 18941.5. Adopting the updated codes, as well as the local amendments included in staff’s recommendations are grounded in the following City goals and policies:
 Land Use Element of the General Plan:
o Policy 9.7 (Sustainable Design) - The City shall promote and, where appropriate, require sustainable building practices that consume less energy, water and other resources, facilitate natural ventilation, use daylight effectively, and are healthy, safe, comfortable, and durable. o Policy 9.12 (Building Code Update) - The City shall regularly review and update its building codes and ordinances to identify revisions that promote energy efficient building design and construction practices, for example by including requirements for electric vehicle charging stations for new residential developments.
 Conservation and Open Space Element of the General Plan:
o Goal 4.2 (Sustainable energy use) - Increase use of sustainable energy sources such as solar, wind and thermal energy, and reduce reliance on non-sustainable energy sources to the extent possible with available technology and resources.
 Climate Adaptation and Safety Element of the General Plan:
o Policy HE-4.3 (Green and Healthy Buildings) - The City shall support fuel switching retrofits (from fossil fuel to high-efficiency electric appliances), energy efficiency retrofits, and distributed energy resources as low-carbon solutions to create safe, cool, and healthy buildings and consider programs and projects that support these retrofits as critical to maintaining community safety and to supporting disaster preparedness.

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Item 7a
 Safety Climate Adaptation and Safety Element of the General Plan:
o Policy FI-5.4 (Fire-Smart Buildings and High Or Very High Fire Hazard Severity Zones) - The City shall reduce wildfire risk associated with new development by requiring all new development located within any CAL FIRE designated High or Very High Fire Hazard Severity Zone to:
 Meet or exceed the State’s Fire Safe Regulations (title 14, CCR, division 1.5, chapter 7, subchapter 2, articles 1-5 commencing with section 1270) and Fire Hazard Reduction Around Buildings and Structures Regulations (title 14, CCR, division 1.5, chapter 7, subchapter 3, article 3 commencing with section 1299.01).  Include designs to minimize pockets or peninsulas or islands of flammable vegetation within a development.
 Include additional access roads, where feasible, to ensure adequate access for emergency equipment and civilian evacuation
concurrently. More than one evacuation route is required for substantial development (as defined in policy OP-7.3 Emergency Access and Evacuation) in Very High Fire Hazard Severity Zones.

All requirements and any deviations will be at the discretion of the Fire Code Official.
 Meet or exceed the California Building Code for Materials and Construction Methods for Exterior Wildfire Exposure (Title 24, part 2, Chapter 7A).
 For all remodeled or rebuilt structures, require projects to meet current ignition resistance construction codes included in the State’s Fire Safe Regulations.
o Policy FI-5.19 (Fire Protection Plans Related to New Development)- Develop standards for new development in the Very High Fire Hazard Severity Zones or Wildland-Urban Interface Zones requiring preparation of project-specific fire protection plans, in addition to complying with all applicable state and local building and fire code regulations. Fire protection plans may include a risk analysis, discussion of fire response capabilities, compliance with fire safety requirements (defensible space, fire protection infrastructure, building ignition resistance, etc.), appropriate mitigation measures and design considerations for any nonconforming fuel modification, maintenance, and education for residents.  Resolution 11159 (2020 Series) adopted the Climate Action Plan for Community Recovery with the goal of community carbon neutrality by 2035 and a sub-goal of 50 percent reduction in emissions from existing buildings by 2030; Resolution No. 11381 (2022 Series) reaffirmed these goals and created a work program for fiscal years 2023-27, including Green Buildings Action 2.1.E, which directs staff to, “Develop an equitable framework for requiring electrification retrofits and develop cost effective building electrification policies for additions and alterations.”

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Item 7a

DISCUSSION
Background
California Building Standards Code
The State of California, under various statutes and titles, requires local governments to adopt and enforce the California Building Standards Code. These codes comprise the Building and Fire regulations applicable to all local jurisdictions throughout the State. The State adopts the latest editions of model codes, with State amendments, on a triennial basis.

Pursuant to the California Health & Safety Code Sections 17922 and 18938, the California Building Standards Commission published the 2025 California Building Standards Code on July 1, 2025 (the “Code”). The Code will take effect on January 1, 2026. The Code is comprised of standards published by various model code organizations, such as the National Fire Protection Association (NFPA), the International Code Council (ICC), and the International Association of Plumbing and Mechanical Officials (IAPMO). The California Building Standards Code (CCR, Title 24) also includes numerous amendments to the model codes adopted by various State agencies. Pursuant to California Health and Safety Code Section 18938 et seq., these building standards are the minimum requirements applicable to all occupancies throughout the State and the City is required to enforce the California Building Standards Code. The adoption of the Code as part of the City’s Municipal Code enables local enforcement and administration. Additionally, staff recommends readopting the 1997 editions of the Uniform Housing Code and the Uniform Code for the Abatement of Dangerous Buildings and the 2024 edition of the International Property Maintenance Code, with amendments1.

Policy Context and What’s New in 2025
AB 130
In 2025, California enacted AB 130, which imposes a moratorium from October 1, 2025 to June 1, 2031 on the State’s and local governments’ ability to adopt new or more stringent residential building standards2, unless they meet narrow emergency, fire hardening, general plan-alignment, or “substantially equivalent” grandfathered exceptions. The stated intent of the bill is to increase housing production and affordability by reducing regulatory barriers. Where this report proposes local amendments to the residential portion of the 2025 Building Standards Code, the relevant AB 130 exemptions and related compliance justifications are presented. Additionally, the adopting ordinances (Attachment A and Attachment B) include recitals and findings articulating the proposed local amendments’ compliance with the exemptions provided by AB 130.

1 The 1997 Uniform Housing Code and Uniform Code for the Abatement of Dangerous Buildings and the 2024 edition of the International Property Maintenance Code are the latest versions of these codes. 2 AB 130 also includes extensive California Environmental Quality Act (CEQA) revisions focused on reducing regulatory barriers to housing production. Since the CEQA components of AB 130 are not relevant to staff’s recommendation, they are not discussed in this report.

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Item 7a
California Wildland-Urban Interface Code
This year, the State released the first edition of the California Wildland-Urban Interface (“WUI”) Code. The WUI Code contains home-hardening building standards previously found in Chapter 7A of the Building Code, water supply and fire access standards for developments, defensible space requirements, and other provisions addressing fire spread. On October 7, City staff presented the WUI Code to Council and the community at a study session and recommended that, when the WUI Code is presented as part of this agenda item, it be introduced and ultimately adopted as is, with technical clarifications that 1) the requirements of Chapter 6 (defensible space) only apply in the Very High Fire Hazard Severity Zone (VHFHSZ), and 2) that violations of the WUI Code may be enforced administratively by City staff3 Extensive information about what the WUI Code adoption means for property owners in the City can be found in the study session staff report referenced above.

With the recent changes in the Fire Hazard Severity Zone (FHSZ) maps, the City’s current definition of “wildland-urban interface fire area” within the municipal code is outdated.

Section 15.04.090(NN) of the municipal code defines the wildland-urban interface as “areas designated as Local Very High Fire Hazard Severity Zones,” since, prior to 2025, there were no areas in the City designated as High or Moderate Fire Hazard Severity Zones (FHSZs). Under the WUI Code, the wildland-urban interface area must include, at least, all areas designated by the State Fire Marshal and adopted by the City (as required by Government Code 51187) as a Moderate, High, or Very High FHSZ. The new FHSZ maps published by the State Fire Marshal, and adopted by the City on June 17, 2025, include Moderate and High FHSZs. In order to address this outdated language, Section

15.04.090(NN) will be deleted from the municipal code and replaced with adoption of the WUI Code.

The state Board of Forestry and Fire Protection is in the process of finalizing the “Zone 0” regulations, which will impose requirements for defensible space in the area zero to five feet from a structure. These regulations are expected to take effect for new structures on January 1, 2026, and for existing structures three years later (currently anticipated to be January 1, 2029.) Section 604.3 of the WUI Code already incorporates the defensible space requirements for “Zone 1” (currently the first 30 feet around a structure) and “Zone 2” (30-100 feet from a structure), by reference to Section 1299.03 of Title 14 of the California Code of Regulations. By adopting the WUI Code, the City will adopt locally, by reference, the Zone 1 and 2 requirements, as well as the Zone 0 requirements automatically once they are finalized and codified within Section 1299.03.

Once Zone 0 regulations are finalized by the state Board of Forestry and Fire Protection the Fire Department will proactively provide information to the public through the use the standard City messaging processes, including social media and website information. In addition, Fire will host town halls, HOA community education meetings, public forums, and workshops with video links to help explain the requirements. The public information

3 During the study session, staff recommended amendments to the WUI Code to clarify administrative enforcement and Chapter 6’s applicability only to the VHFHSZ. However, upon further review, staff does not believe amendments to the code are necessary and instead recommend including non-codified language in the Ordinance to clarify these interpretations (see Section 4 of the draft Ordinance.)

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and education efforts for Zone 0 regulations will look and feel similarly to the WUI Code and Fire Hazard Severity Zone mapping information sharing.

Emergency Amendment to WUI Code
When staff presented the WUI Code during the study session on October 7th, additions to and remodels of buildings constructed prior to July 1, 2008 were not required to comply with the building hardening requirements of Chapter 5. This exception was communicated to Council and the community. However, on October 15th, the California Building Standards Commission signed an emergency amendment to the code that will also go into effect January 1, 2026. Amongst the changes are removal of that exception. This means that all new construction and remodels Citywide will be subject to the building hardening requirements of Chapter 5 upon adoption of the WUI Code asis.

California Energy Code and CalGreen
The 2025 California Energy Code (Part 6 of the California Building Standards Code) is an incremental improvement on the 2022 code’s efficiency and greenhouse gas emissions reductions standards. Most notably, the 2025 code prescribes electric water heating and electric HVAC systems in new residential construction, which achieves the intended outcomes of the City’s local amendments to the single-family residential components of the 2022 energy code45. As such, staff are not recommending local amendments to the California Energy Code as it relates to single-family residential buildings at this time. The 2025 code also includes new standards for rooftop solar systems, battery energy storage systems, and electric readiness in new construction.

The 2025 California Green Building Code (CalGreen, Part 11 of the California Building Standards Code) also improves on the 2022 code with requirements for additional electric vehicle charging infrastructure and the first mandatory embodied carbon reduction measures for certain large non-residential buildings.

Adoption of the Building Standards Code & Proposed Amendments The following sections of the staff report outline how the Building Standards Code will be implemented via the City’s Municipal Code and provide the key amendments included in staff’s recommendation, with details about the amendments and why they are recommended.

4 To illustrate compliance with the California Energy Code, projects can either follow the equivalent of a check-list (the prescriptive path) or show how their building achieves the same outcomes as that checklist (performance path). The 2025 Energy Code’s prescriptive path for single-family buildings requires electric water heating and HVAC appliances; however, projects can replace those appliances with gas equipment via the performance path so long as they make equivalent efficiency gains in other parts of the building. 5 The City is currently enforcing locally adopted amendments to the 2022 California Energy code for new construction single-family, multi-family, and non-residential buildings, as well as for major additions and alterations to single-family residential buildings. All four of these local amendments are specific to the 2022 California Energy Code and will no longer be locally enforceable when the 2025 California Energy Code goes into effect on January 1, 2026. Table 2, below, provides options and timing considerations for re-adopting updated local amendments to the 2025 California Energy Code.

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Implementation of the Building Standards Code via the Municipal Code The proposed ordinance repeals existing Chapters 15.02 and 15.04 of the Municipal Code and replaces them with new chapters in order to replace the 2022 code language with the 2025 code language. Chapter 15.02 adopts each standard individually by section, and Chapter 15.04 includes corresponding sections for current or future local amendments. The resulting Chapters are intended to provide staff and the community with a clear and concise understanding of applicable standards, the model code each part is based on, which appendices are adopted, and where amendments can be found elsewhere in the Municipal Code. The proposed table of contents will read as follows:

Chapter 15.02

BUILDING CODES ADOPTED
Sections:

15.02.010 Adoption of codes.

15.02.020 Building standards.

15.02.025 Residential standards.

15.02.030 Electrical standards.

15.02.040 Mechanical standards.

15.02.050 Plumbing standards.

15.02.060 Energy standards.

15.02.070 Wildland-Urban Interface standards.

15.02.080 Historical building standards.

15.02.090 Fire prevention standards.

15.02.100 Existing building standards.

15.02.110 Green building standards.

15.02.120 Referenced standards.

15.02.130 Property maintenance standards.

15.02.140 Health and safety standards.

15.02.150 Violation penalties.

Staff also recommends restructuring Chapter 15.04 to provide corresponding code section numbers for each specific code title adopted in Chapter 15.02 by creating an amendment section for each standard. Sections without existing or proposed amendments are marked as “Reserved.” The new table of contents will read as follows:

Chapter 15.04
Construction and Fire Regulations Amendments
Sections:

15.04.010 Building official and fire code official designated.

15.04.020 Amendments; building standards.

15.04.025 Amendments; residential standards.

15.04.030 Amendments; electrical standards.

15.04.040 Amendments; mechanical standards.

15.04.050 Amendments; plumbing standards.

15.04.060 Amendments; energy standards. (Reserved)

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15.04.065 Amendments; energy standards – additions and remodels

15.04.070 Amendments; wildland-urban interface standards. (Reserved.)

15.04.080 Amendments; historical building standards. (Reserved)

15.04.090 Amendments; fire prevention standards.

15.04.100 Amendments; existing building standards.

15.04.110 Amendments; green building standards. (Reserved)

15.04.120 Amendments; referenced standards. (Reserved)

15.04.130 Amendments; property maintenance standards.

15.04.140 Amendments; health and safety standards. (Reserved)

15.04.150 Permits required for well construction.

Local Amendments to the California Building Standard Code California Health and Safety Code Section 17958 provides that local jurisdictions may make amendments or modifications to the building standards contained in Title 24 (the California Building Standards Code) based on express findings that such modifications are reasonably necessary because of local climatic, geological, or topographical conditions. A list of the findings is provided to justify the need for existing and new amendments (Attachment C). As in the past, the City’s philosophy has been to keep such amendments to a minimum in keeping with the spirit and intent of the law, which is to provide uniform construction standards throughout the State.

Most of the proposed local amendments to the Code are substantially the same as those previously adopted and currently contained in the Municipal Code. Each existing amendment must be readopted with each triennial edition of the California Building Standards Code to remain valid. In addition, a few new code changes are proposed to clarify policies or address certain problems. A Matrix Tool (Attachment D) that outlines all ordinances by title, identifies each amendment that is new to this code cycle, and indicates applicable findings has been created to help organize updates and changes (as noted above, findings notated in the Matrix Tool can be found in Attachment C).

The 2025 California WUI Code establishes minimum statewide standards for building construction, vegetation management, and fire protection features that all local governments must adopt. In addition, local governments may adopt more restrictive standards if necessary, due to the area’s unique climatic, topographical, or geological conditions. However, as discussed during the October 7th study session, staff is recommending that the City adopt the WUI Code (Part 7 of the Building Standards Code) “as is” and without any local amendments. The Ordinance will clarify the City’s intent to enforce violations of the WUI Code’s requirements administratively and that Chapter 6 only applies to the VHFHSZ, but no amendments to the substantive provisions of the WUI Code are being proposed (and Section 15.04.070 of the municipal code will remain “reserved” for any future local amendments to the WUI Code).

Re-Adoption of Existing Local Amendments to the Building Codes The recommended action is to introduce ordinances that would re-adopt most of the City’s existing amendments to the building codes. (See Attachment A.) Previous code adoptions by the City have included administrative and technical amendments to the construction

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and fire prevention codes contained in Title 24 of the California Code of Regulations to address special situations or conditions unique to the City. Through analysis of the 2025 updated Building Standards Code, staff has determined that most amendments previously adopted at the local level have not been adopted at the state level and should be re-adopted as local amendments to remain enforceable. The only substantive amendments that are not recommended for re-adoption relate to provisions made obsolete by the new WUI code. Since there have been no changes in special "climatic, geologic, or topographic" conditions in San Luis Obispo, staff recommends that previous amendments be carried over with the adoption of the new Code. The proposed readoption of the amendments described in this subsection are compliant with AB 130 because they are substantially equivalent to changes or modifications that were previously filed by the governing body of the City and were in effect as of September 30, 2025.

Local Amendment to the Fire Code
Fire Department staff are recommending an amendment to the Fire Code (Part 9 of the Building Standards Code) to require an increased fire sprinkler density in areas of parking garages classified as Group S-2 Occupancies when certain EV chargers are installed.

Storage Group S occupancy includes the use of a building or structure, or a portion thereof, for storage that is not classified as a hazardous occupancy. Group S-2 occupancies (as classified by the Building and Fire code) include low-hazard storage and parking garages.

Currently, there are three types of EV charging stations available on the market and one type of charging station under development. This proposed amendment would only apply to parking garages that install a Level 3 or a Level 4 EV charging station (See Table 1 below for descriptions of each type of EV charging station).

Many cities in California have been requiring enhanced fire sprinkler design for parking garages that utilize certain types of EV charging stations (Level 3 or higher), including the City of San Luis Obispo for the last 7 years on an ad-hoc basis.6 The intent of the amendment has two main objectives: first, to memorialize and clarify the requirement that has been applied by the Fire Department for the past several years on a case-by-case basis, so developers have a stronger understanding of operations and equipment when projecting out the overall costs. The second intent is to increase firefighter and community safety when fire personnel are responding to EV fires in parking garages with multiple floors and also where occupied spaces exist above parking garages with Level 3 and 4 EV charging. This requirement is based on a known hazard grounded in industry data and best-managed engineering practices. Including the requirement in the Planning process will prevent confusion later in the development process and will mitigate the impacts on Fire Department services.

6 Over this time period, the City has reviewed and permitted six projects with enhanced fire sprinkler density.

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The amendment explicitly addresses only the area located around the EV charging stations and does not require the entire system to be upgraded to the Extra Hazard (EH II) fire sprinkler density. The EH II design area(s) must extend a minimum of 3 feet beyond the perimeter of the parking space(s) linked to EV charging. By providing a more robust sprinkler design, the fire department is given more time to evacuate the area and to employ safer firefighting techniques without increasing danger to fire personnel. The amendment applies to existing structures, in that, when a permit includes Level 3 or Level 4 charging, the fire suppression system will need to meet the Extra Hazard II requirements, which may require updating of the fire suppression system. The text of the proposed amendment can be found in Section 15.04.090(Z) of the Ordinance in Attachment A.

Table 1. EV Charging Station Sprinkler Amendment Applicability Type of EV
Charger
Typical Use Subject to Proposed
Amendment?
Level 1 Uses standard 120V AC electrical outlets and is the slowest charging method. Requires about 3-5
miles of range per hour to charge. Exclusively
found in homes, and most are for drivers who do
not drive long distances and can get a full charge
overnight
No
Level 2 Uses 240V AC and requires a dedicated circuit
and a professional installer which provides a
faster charge than Level 1 by adding about 12-80
miles of range per hour, depending on the
charger. Designed primarily for homes and some
workplaces to enable faster charging.

No
Level 3 Delivers about 150-400 miles of range per hour of charging. The technology converts alternating
current (AC) to direct current (DC) outside the
vehicle, enabling a much more powerful, rapid
charge. Installed along major highways and travel
routes, as well as urban and commercial areas, to
support long-distance traveling and quick stops.

Suitable for home use, but it requires specialized
infrastructure, making installation more
expensive.

Yes
Level 4 (under
development
in EV
industry)
Will accommodate the next generation of EVs
with even larger battery capacity, enabling faster
charging. In theory, they can provide about 100
miles of range in just 4 minutes of charging.

Anticipated for uses similar to Level 3 stations.

Yes

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Vehicle fires in EVs are substantially less likely than vehicle fires in internal combustion engines. However, EV fires can burn hotter and longer and release more smoke than an internal combustion engine vehicle fire, creating legitimate operational challenges for first responders. The California Building Standards Code already includes numerous provisions to ensure safe operation of electric vehicles and associated charging infrastructure. However, staff recommend adoption of this proposed amendment to mitigate potential fire risk in the worst-case scenario where high-powered charging infrastructure is located inside a garage and has additional parking floors or other occupied spaces above it.

Importantly, whether a project is a stand-alone garage or includes parking to meet other development requirements, the 2025 California Building Standards Code permits but does not require high-powered (Level 3 or higher) EV chargers. Where EV charging is required, compliance may be achieved with Level 2 chargers. The additional sprinkler standards proposed by staff would apply only when a project voluntarily installs EV charging infrastructure beyond the state minimum Level 2 charging.

This amendment does not apply to Mechanical-Access enclosed parking garages per 2022 CBC Section 406.6.4, which requires a separate, specially engineered automatic sprinkler system on a case-by-case basis. This amendment would also not apply to construction or renovation to single-family homes.

Local Amendments to the Energy Code
Since 2020, the City has adopted numerous local amendments to the California Energy Code, including electric preferred new-building requirements (2020), mandatory allelectric new building requirements (2022), and energy efficient new building requirements (2023). Current enforced local amendments are as follows:
 Ordinance 1730 (2023 Series) requires additional energy efficiency measures for residential and non-residential new construction and encourages the installation of high-efficiency electric appliances.
 Ordinance 1736 (2024 Series) requires major additions and alterations to existing single-family residential buildings to install certain energy efficiency measures in the existing building.

Both existing ordinances provide local amendments to the 2022 California Building Standards Code and will no longer be enforceable when that code sunsets on December 31, 2025. To enforce the local amendments to the California Energy Code moving forward, the City Council will need to readopt existing standards. However, there are circumstances, including changes to the energy code and availability of cost effectiveness studies, that have led to staff’s recommendation to only update and re-adopt the local amendments to the California Energy Code for major additions and alterations in existing single-family homes. Table 2 provides information about potential local amendments to the California Energy Code for each building sector, including staff’s recommendation to 1) adopt the updated single-family residential additions and alterations amendments as provided in Attachment B and described below, and 2) continue developing local

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amendments for the remaining viable sectors for Council’s consideration in summer of 2026 (for potential implementation beginning in 2027).

Table 2. Energy Reach Code Options by Building Sector
Sector
CostEffectiveness
Study
Availability
Opportunity for
Efficiency
Improvements
Staff’s Recommendation
New Construction
SingleFamily
Residential
No, expected to be
published in early
2026.

No, the standard
code provides the
maximum costeffective measures.

Do not pursue local amendments to the
California Energy Code for this sector
Multi-Family
Residential
No, expected to be
published in early
2026.

Unknown
Evaluate the cost effectiveness study
and return with a recommendation in
summer of 2026 for potential
implementation in 2027
NonResidential
No, expected to be
published in early
2026.

Unknown
Evaluate the cost effectiveness study
and return with a recommendation in
summer of 2026 for potential
implementation in 2027
Existing Construction
SingleFamily
Residential
Yes Yes
Adopt this sector’s local amendments to
the California Energy Code code now
(Attachment B)
Multi-Family
Residential
No, expected to be
published in early
2026.

Unknown
Evaluate the cost effectiveness study
and return with a recommendation in
summer of 2026 for potential
implementation in 2027
NonResidential Yes Yes
Continue developing the proposed local
amendments and return with a
recommendation in summer of 2026 for
potential implementation in 2027
On July 15, 2025, staff presented a study session to Council covering existing building energy retrofit policy options, and received strategic direction to update the existing single-family residential additions and alterations policy to clarify the applicability threshold definitions and identify if there are any circumstances where an Accessory Dwelling Unit (ADU) could trigger an upgrade. Staff’s recommended ordinance includes clean up items and updates based on Council’s strategic direction as follows:
 Updates recitals and findings that the proposed amendments to the California Energy Code are consistent with AB 130 (i.e., aligned with the General Plan, implements a GHG reduction strategy, and does not pre-empt federal law).  Updates standards and exemptions based on current cost-effectiveness studies.

Residential units constructed after 1992 would now be exempt from energy efficiency requirements because certain measures are likely no longer costeffective in this building stock.

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 Retains the existing 500 square foot threshold for additions, but transitions to a project valuation threshold for alterations, including a lower threshold ($100,000) for requiring electric readiness and a higher threshold ($200,000) for requiring energy efficiency retrofits. This proposed amendment responds to Council’s previous strategic direction to update the policy threshold related to the definition of “work area” to be easier for staff and applicants to work with.  Staff identified a potential opportunity under state law to require electric readiness upgrades in existing buildings when an attached ADU triggers an electrical service upgrade. However, more analysis is needed to assess financial and project-timing impacts; staff does not recommend including this requirement at this time.

Depending on the outcome of subsequent outreach and research, staff could include this requirement for Council’s consideration when we return in summer of 2026 with proposed additional local energy code amendments.

State law requires that any local amendment to the California Energy Code be cost effective and save energy relative to the standard code. Based on the most current available studies, the "2022 Single Family Retrofit Statewide Cost Effectiveness Study" (Attachment E) and the "2022 Applications to 2025 Energy Code Memo" (Attachment F), staff recommend finding the proposed local amendments to the 2025 California Energy Code to be cost-effective and to consume less energy than permitted by Title 24, Part 6.

The following additional details are included in the adopting ordinance, have previously been presented to the City Council at the May 21, 2024 public hearing7, and are reproduced here for transparency and to facilitate the California Energy Commissions review of the City’s cost-effectiveness findings:
 The City’s requirement that major additions or alterations install energy efficiency measures includes at least four cost effective measure packages:
o Package 1, installing the efficiency measure of R-30 Floor Insulation would save energy relative to the base code and would achieve a benefit to cost ratio of 2.3 on an on-bill basis.
o Package 2, installing the efficiency measure of R-19 Floor Insulation would save energy relative to the base code and would achieve a benefit to cost ratio of 2.3 on an on-bill basis.
o Package 3 installing a Heat Pump Water Heater (HPWH), would save energy relative to the base code and would achieve a benefit to cost ratio of 1.6 on a “Long-term System Cost” (LSC basis).
o Package 4, installing a Heat Pump Space Heater, would save energy relative to the base code and would achieve a benefit to cost ratio of 4.2 on an LSC basis.

Should Council move forward with staff’s recommendation and subsequently adopt the local amendments to the California Energy Code provided in Attachment B, staff would submit the Ordinance, this Council Agenda Report, and related materials to the California Energy Commission and the California Building Standards Commission for Approval. The City could begin enforcing the local amendments to the California Energy Code once

7 This agenda report provides more detail regarding cost effectiveness metrics and methodology.

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these items are approved, likely in early February or March of 2026. To comply with state law, the City must make findings that these amendments are cost-effective, save energy relative to the standard code, and are exempt from AB 130. These findings are all included in Attachment B.

Organizational Changes to the Municipal Code
Finally, with the new Code and state amendment publications, it is necessary to update several section numbers in the Municipal Code and previously adopted amendment language. These updates are identified on the Code Matrix Tool with an asterisk, and do not result in a change to local enforcement or require the City to make specific findings of necessity.

Implementation Resources
The 2025 Building Standards Code includes thousands of amendments to the 2022 Building Standards Code, which can make project compliance complicated for applicants and City staff. The following resources are available to support community awareness, staff training, and effective implementation:
 Staff Training: Building and Safety and Fire Department Staff regularly attend professional training opportunities during which time staff are trained on important amendments. In addition, both departments train staff internally to ensure staff are aware of new code provisions and enforcing codes correctly. Departments and Divisions within the organization also cross-train (for example, the Sustainability team works with the Building and Safety team to develop a compliance checklist and provide training on new local amendments to the California Energy Code).  Professional Organizations: Professional architects, engineers and other design professionals typically obtain training on new code requirements through their professional associations such as the American Institute of Architects (AIA) or American Society of Civil Engineers (ASCE) and CALBO (California Building Officials).
 Energy Code Training: 3C-REN provides on-demand technical assistance for applicants and staff via the Energy Code Coach service, as well as in-person and remote trainings for contractors and code professionals. Resources are available at: https://www.3c-ren.org/.
 Energy Code Compliance Incentives: 3CE and 3C-REN provide incentives and rebates for high-efficiency electric water heating, HVAC, and cooking equipment.

These incentives can be used to comply with energy code standards. More information is available at https://www.3c-ren.org/ and https://3cenergy.org/rebates-incentives/.
 Tools for the Public and Staff: City Staff are currently working on assembling guides and checklists that will assist applicants, the public, and staff in implementation of the new building standards codes, especially related to the WUI code changes.
 Board of Forestry and Fire Protection Defensible Space Guide provides homeowners with detailed recommendations for creating defensible space in Zone

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1 and 2. Staff anticipates further materials will be available to support implementation of the Zone 0 regulations.

Previous Council or Advisory Body Action
 Previous Building/Fire Code Adoptions: As noted above, the City is required to periodically update the building/Fire Codes. The following ordinances were adopted by the City to facilitate these updates: Ordinance No. 1033 (1985 Series) Ordinance No. 1105 (1987 Series), Ordinance No. 1169 (1990 Series), Ordinance No. 1170 (1990 Series), Ordinance No. 1213 (1992 Series), Ordinance No. 1287 (1995 Series), Ordinance No. 1288 (1995 Series), Ordinance No. 1336 (1998 Series), Ordinance No. 1353 (1999 Series), Ordinance No 1423 (2002 Series), Ordinance No. 1453 (2004 Series), Ordinance No. 1510 (2007 Series), Ordinance No. 1555 (2010 Series), Ordinance No. 1595 (2013 Series), Ordinance No. 1630 (2016 Series), Ordinance No. 1670 (2019 Series), Ordinance No. 1723 (2022 Series)
 Previous Local Energy Amendment Adoptions: Ordinance No.1684 (2020 Series), Ordinance No. 1717 (2022 Series), Ordinance 1730 (2023 Series), Ordinance 1736 (2024 Series).
 On October 7, 2025, Council directed staff to introduce the California WildlandUrban Interface Code for adoption as-is (without substantive local amendments.) This is because the substantive components of the WUI Code will require, in some cases, significant adjustments to how City staff, applicants, and property owners evaluate, develop, and maintain properties located within the applicable zones (or, in the case of building hardening requirements, citywide). Adoption of the WUI Code “as is" will help ensure proper initial implementation of its new requirements.
 On July 15, 2025, Council provided strategic direction to staff to return with an updated Energy Efficiency Renovations policy for existing single-family homes, and to return at a future date when there was more clarity around potential retrofit standards for non-residential buildings.

Public Engagement
The triennial California Building Standards Code is developed through an extensive public process, wherein state agencies responsible for each Part conducts outreach, develops standards, and ultimately presents those standards to that agency’s board for approval at a public meeting. Regarding local amendments and successful implementation, staff conducted numerous public engagement activities as described below:
 Developer’s Roundtable: Staff presented considerations related to the WUI code items in this report to the Developer’s Roundtable Zoom Meeting on October 2, 2025 and the Energy Code amendments on November 13, 2025. Recordings of both meetings are available on the Community Development webpage. These meetings were preceded by emails to more than 100 Developer’s Roundtable participants.
 Construction Board of Appeals: The Code changes will be presented at a Construction Board of Appeals meeting in December.

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 October 7, 2025 City Council Study Session about the Wildland Urban Interface Code: staff conducted extensive outreach in support of the study session, the result of which has directly influenced recommendations in this report. Examples of outreach conducted in support of the study session included Outreach to Realtors, Developers, Architects, Landscape Architects, General Contractors, suppliers, nurseries, and meetings with and outreach to HOAs in the community.  Outreach during Fire Prevention Week: Staff hosted an Open House inviting multiple City Departments to speak to the public on home hardening and defensible space. Staff attended the Thursdays Farmers Market and spoke with community members and non-profit groups on the state's expectations on WUI compliance.
 July 15, 2025 City Council Study Session about Building Energy “Reach” Codes:

Staff conducted extensive outreach in support of the study session, the result of which has directly influenced staff’s recommendation in this report. Examples of outreach conducted in support of the study session include meeting with the Chamber of Commerce, the Climate Coalition, and local realtors’ groups, meeting with local HVAC and heat pump installers, interviewing staff from other agencies, interviewing incentive and rebate providers, and interviewing architects that complied with the current Energy Efficient Renovations policy, among others. This outreach also built off the community engagement conducted for the adoption of the Energy Efficient Renovations policy in May of 2024 and the preceding study session on the same topic in December of 2023.
 Ongoing public engagement: Staff will undertake ongoing public engagement on this item, especially related to the changes related to the WUI code adoption. More information can be found in the “next steps” section below.

CONCURRENCE
The Public Works Department concurs with the proposed amendments in this report. The Community Development, Fire, and Administration Departments prepared and support the proposed ordinances. The City Attorney’s office reviewed and approved the proposed ordinances as to form and legal effect.

ENVIRONMENTAL REVIEW
The project is exempt from environmental review per California Environmental Quality Act (CEQA) Guidelines under the General Rule (Section 15061(b)(3)). The project involves updates and revisions to existing regulations. The proposed code amendments are consistent with California Law, specifically the CA Health & Safety Code Sections 17958.7 and 18941.5. It can be seen with certainty that the proposed Municipal Code text amendments will have no significant effect on the environment. Adoption of the California Wildland-Urban Interface Code is statutorily exempt from CEQA under Public Resources Code §21080.49 (wildfire risk reduction projects). Adoption of the local amendments to the California Energy Code is also exempt from CEQA under categorical exemptions in Section 15308 of the CEQA Guidelines in the proposed ordinance would institute regulatory requirements intended to protect the environment and natural resources. To the extent a component of the Building Standards Code is adopted as-is, the

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recommended actions are exempt from CEQA as ministerial acts under CEQA Guidelines 15268, since the City must locally adopt and enforce the Building Standards Code (see Health and Safety Code Section 18938 et seq.)

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

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

Total $NA $NA $NA $NA
There are no significant fiscal impacts to the Community Development Department related to the implementation of Building Code updates. The adoption of the local amendments does not increase the cost of enforcing the regulations mandated by the State. Furthermore, the current operating budget has the capacity to absorb the costs for new code books and training necessary for staff to be effective in enforcing new codes.

The Fire Department will need additional resources to educate current staff on the new 2025 California WUI Code in order to conduct Fire Protection Plan review, Vegetation Plan (Landscape plan) review, and to conduct additional site inspections for projects that trigger this need in the VHFHSZ. Given past patterns of development, it is estimated that at least 25-40 permits a year would trigger the need for additional Fire Department plan review process and inspection following adoption of the updated codes. The Fire Department already has two miscellaneous fees established to assist with cost recovery - Fee #44 (as noted in the current Comprehensive City Fee Schedule) Supplemental Fire Plan Review and Fee #45 Supplemental Fire Inspection. The additional training necessary to undertake this work will include remote learning opportunities through the National Fire Protection Association (NFPA) and through the local SLO County FireSafe Council who coordinating Defensible Space Inspections with the local government Fire Departments in the County. Both training opportunities are at no cost, but will involve staff time.

The Fire Prevention and Safety Grant, accepted by this Council on October 21, 2025, will also help offset upfront costs in the amount of $60,240 for the next two years. Staff will continue to pursue external funding to support and subsidize the inspection costs for the property owner.

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NEXT STEPS
This public hearing item introduces the two proposed ordinances for first reading. If Council moves forward with ordinance introduction, then they will return at a future City Council meeting (currently scheduled for December 2) for second reading.

All local amendments to the California Building Standards Code must be approved and filed by the Building Standards Commission prior to enforcement. In addition, the proposed local amendments to the Energy Code are also required to be approved by the California Energy Commission at a regularly scheduled business meeting. The state approval process would proceed as follows:

1. Upon Council’s approval of the second reading, staff will:
a. Submit all non-energy local amendments (Attachment A) to the California Building Standards Commission; and
b. Submit energy local amendments (Attachment B) to the California Energy Commission.

2. Upon the California Energy Commission’s approval of the local amendments, staff will submit the local energy amendments to the Building Standards Commission.

As a result of this staggered approval process, the entirety of the building code and nonenergy local amendments would go into effect on January 1, 2026, and the local energy amendments would go into effect shortly thereafter, likely in February or March of 2026.

In order to prepare for the implementation of the new codes, City staff will participate in training on the new codes as described above and provide information at the public counter, on our website, and through discussions with applicants and the public about the new code.

In addition, there are a number of actions that must be taken to prepare to implement the new codes, including proactive education and outreach, and creation of guides, new forms, and new internal processes. The City heard from a number of residents and professionals at the WUI Study Session about the desire to have the City produce helpful information, such as lists of plants that are appropriate in various Fire Severity Zones or visuals that depict the various regulations in the new WUI codes to include the Zone 0 regulations when they are released by the State Board of Forestry and Fire Protection. City staff will be working on the following:
 Producing a list of example plants and trees appropriate for various areas of the City,
 Producing a list of non-desirable plants and trees for various areas of the City,  Creating Guides regarding compliance with defensible space standards,  Creating Guides on changes to the building permitting process for applicants,  Continuing outreach to neighborhood groups, realtors, HOAs, and property owners on the WUI requirements,
 Creating a “one stop shop” webpage with up-to-date information on WUI requirements, Fire Zones and helpful guides, and

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 Working with local landscape designers, landscapers, and plant retailers to discuss WUI regulations and determine what helpful resources the City can provide.

The following items will also be presented to the City Council at a future date for discussion:
 An ordinance amending the City tree regulations to address barriers that may exist that would inhibit a property owner from creating required defensible space.  A study session to discuss the existing prohibition on subdivision in the General Plan for properties in the Very High Fire Hazard Severity Zone  Pending additional technical work and stakeholder engagement, a public hearing proposing an ordinance to provide additional energy efficiency requirements for additional building sectors as described in Table 2.

ALTERNATIVES

1. The Council may elect to adopt the CA Building Standards Code without some or all the proposed or carried-over local amendments. Under this alternative, Title 24 will become the minimum mandated building and construction standards statewide on January 1, 2026. Choosing not to adopt local amendments will result in a decreased level of elements that are necessary to maintain a safe and healthy built environment with the unique topographical, climatic, and geological conditions that exist in the City of San Luis Obispo.

2. The Council may elect to change some of the proposed and/or carried-over local amendments and adopt the CA Building Standards Code with these changed local amendments. This alternative would allow the City Council to make changes to the local amendments as currently proposed by City Staff prior to adoption of the Code. If the changes are significant, the ordinance(s) may need to be introduced at a future public hearing to provide staff with adequate time to prepare the revised versions.

3. The Council may elect to change some of the proposed updates to the local amendments to the California Energy Code. This alternative would allow Council to make changes to the proposed local amendments to the California Energy Code and could include (but is not limited to):
a. Changing the compliance thresholds to different project valuation amounts. b. Directing staff to revert to a project square footage threshold. c. Removing the new requirement for certain attached ADU projects to include electric readiness measures in the existing building.

If the changes are significant, the ordinance may need to be introduced at a future public hearing to provide staff with adequate time to prepare the revised version.

4. The Council may elect to direct staff to return with more information prior to adoption of the proposed Codes with Amendments. This would provide time for the Council to receive and consider any additional information prior to adopting the Code. This would delay the ultimate adoption of the code, which would make the local municipal code inconsistent with the State adopted Code. However, the City must still enforce the state standards that go into effect January 1, 2026. Without adoption of local amendments (including carried-over and new amendments), the City would

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be required to enforce the state standards as written, and failure to incorporate the standards into the municipal code would limit the City’s ability to enforce the standards to only those enforcement pathways provided by state law.

ATTACHMENTS
A - Draft Ordinance adopting 2025 CCR Title 24 Codes with Amendments B - Draft Ordinance adopting 2025 Local Amendments to the California Energy Code C - Local climatic, geological, or topographical findings D - 2025 Building Standards CCR Title 24 Codes Matrix Tool E – 2022 Single Family Energy Retrofit Statewide Cost Effectiveness Study F - 2022 to 2025 Statewide Cost Effectiveness Study Applicability Memo

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O-1723
ORDINANCE NO. XXXX (2025 SERIES)

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SAN LUIS OBISPO, CALIFORNIA, AMENDING TITLE 15 OF THE MUNICIPAL

CODE TO ADOPT BY REFERENCE AND AMEND THE LATEST EDITION

OF THE CALIFORNIA BUILDING STANDARDS CODE AND ADOPTING

FINDINGS OF FACT TO SUPPORT THE AMENDMENTS
WHEREAS, the State of California adopts and updates the California Building Standards Code on a triennial basis, which constitutes the building and fire code regulations applicable to all occupancies throughout the State; and WHEREAS, the State has published the 2025 Edition of the California Building Standards Code, comprised of various model codes and State amendments, which will become effective on January 1, 2026; and
WHEREAS, the 2025 Edition of the California Building Standards Code includes, for the first time, the California Wildland-Urban Interface Code, which contains provisions addressing fire spread, accessibility, defensible space, water supply and more for buildings constructed near wildland areas; and
WHEREAS, the City adopted updated fire hazard severity zone (FHSZ) maps on June 17, 2025, identifying areas within the City that have been designated as Moderate, High, and Very High FHSZs by the State Fire Marshal; and WHEREAS, the City is listed as “Community at Risk from Wild Fires” by the California Department of Forestry and Fire Protection, Fire and Resource Assessment Program (Health & Safety Code §13108.5); and
WHEREAS, pursuant to California Health and Safety Code Section 17958.5, local jurisdictions are permitted to amend the California Building Standards Code as reasonably necessary based on local climatic, geological or topographical conditions, provided such amendments are not less restrictive than the requirements found in the State codes; and
WHEREAS, California Health and Safety Code Sections 17958.7 and 18941.5 require the City Council to make express findings that each such amendments are reasonably necessary; and
WHEREAS, such findings must be made available as a public record and a copy thereof, with each such amendment, shall be filed with the California Building Standards Commission and/or the Department of Housing and Community Development; and

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WHEREAS, California Health and Safety Code Sections 17958, 17958.5, and 17958.7 prohibit a City from making a change or modification that is applicable to residential units unless certain findings are made; and the proposed amendment is substantially equivalent with previously filed amendments, emergency standards for health and safety, for home hardening, consistent with previously approved general plan direction, or administrative practices.

WHEREAS, it is the desire and intent of the City Council of the City of San Luis Obispo to provide citizens with the greatest degree of fire, life, and structural safety in buildings in the most cost effective manner by adopting that body of regulations referred to as the California Building Standards Code with amendments specific to the City of San Luis Obispo.

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

SECTION 1. Environmental Determination. The project is exempt from environmental review per CEQA Guidelines under the General Rule (Section 15061(b)(3)). The project involves updates and revisions to existing regulations. The proposed code amendments are consistent with California Law, specifically the California Health & Safety Code Sections 17958.7 and 18941.5. It can be seen with certainty that the proposed Municipal Code text amendments will have no significant effect on the environment. Adoption of the California Wildland-Urban Interface Code is statutorily exempt from CEQA under Public Resources Code §21080.49 (wildfire risk reduction projects).

SECTION 2. Findings.

1. The findings justifying previous changes and modifications to the adopted construction and fire codes as contained in Ordinance No. 1033 (1985 Series), Ordinance No. 1105 (1987 Series), Ordinance No. 1169 (1990 Series), Ordinance No. 1170 (1990 Series), Ordinance No. 1213 (1992 Series), Ordinance No. 1287 (1995 Series), Ordinance No. 1288 (1995 Series), Ordinance No. 1336 (1998 Series), Ordinance No. 1353 (1999 Series), Ordinance No 1423 (2002 Series), Ordinance No. 1453 (2004 Series), Ordinance 1510 (2007 Series), Ordinance 1555 (2010 Series), Ordinance 1595 (2013 Series), Ordinance 1630 (2016 Series), Ordinance 1670 (2019 Series), Ordinance No. 1723 (2022 Series) are hereby reaffirmed, but are otherwise hereby superseded by this ordinance to the extent inconsistent herewith.

2. The City Council further finds that each amendment referred to in the ordinance are reasonably necessary because of local climatic, geological, or topographical conditions in the area encompassed by the boundaries of the City of San Luis Obispo.

3. The City Council further finds that the changes or modifications that affect a residential unit are substantially equivalent to changes or modifications that were

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previously filed by the City and were in effect as of September 30, 2025. This Ordinance carries forward local amendments from previously filed ordinances with no material change in the regulatory effect to the existing standards.

SECTION 3. The provisions of the State Building Standards Code are hereby modified, changed, and amended as provided for in this ordinance based upon the foregoing findings and those set forth herein and said Council takes said action because of the public interest in protecting life and preserving public safety and property.

SECTION 4. Special findings for Adoption of the California Wildland-Urban Interface Code.

1. As a designated “Community at Risk,” the entire City is considered an “urban wildland interface community,” meaning that the building standards adopted in Chapter 5 of the WUI Code and incorporated herein by this Ordinance apply to all non-exempt development within the City for as long as the City remains so designated pursuant to Health & Safety Code §13108.5(d).

2. The standards adopted in Chapter 6 of the WUI Code and incorporated herein by this Ordinance apply to non-exempt new and existing buildings, structures, and premises located within a Very High Fire Hazard Severity Zone.

3. In addition to any other available remedy, violations of the WUI Code as adopted herein by this Ordinance may, at the City’s election, be enforced administratively by the City pursuant to the administrative enforcement procedures set forth in Chapter 1.24 of the municipal code.

4. “Code official,” as used in the WUI Code and as defined therein as “the official designated by the jurisdiction to interpret and enforce this code, or the code’s official authorized representative,” shall mean, for the City of San Luis Obispo, the Fire Chief or their designee.

SECTION 5. Chapter 15.02 of the San Luis Obispo Municipal Code is hereby amended in its entirety to read as follows:

SECTION 15.02.010 ADOPTION OF CODES
The City of San Luis Obispo hereby adopts a Building Construction and Fire Prevention Code of the City of San Luis Obispo, 2026, hereinafter designated as the "San Luis Obispo Building Construction and Fire Prevention Code, 2026." SECTION 15.02.020. BUILDING STANDARDS.

The City of San Luis Obispo hereby adopts the 2025 California Building Code as Part 2 of the San Luis Obispo Building Construction and Fire Prevention Code, 2026. Except as otherwise provided herein, or as later amended in Section 15.04.020, Part 2 of the San Luis Obispo Building Construction and Fire Prevention Code, 2026, shall be as published in the California Building Code Volumes 1 and 2, 2025 edition, and as copyrighted in 2023 by the International Code Council, Inc. and the California Building Standards

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Commission, California Code of Regulations, Title 24, Part 2, Volumes 1 and 2, including all of its tables, indices, addenda, footnotes, and the following appendices:
 Appendix C – Group U – Agricultural Buildings
 Appendix F – Rodent Proofing
 Appendix G – Flood-Resistant Construction
 Appendix I – Patio Covers
 Appendix J – Grading
 Appendix L – Earthquake Recording Instrumentation
 Appendix N – Replicable Buildings
 Appendix Q – Emergency Housing
Said California Building Code is hereby referred to and by such references are incorporated herein as if fully set forth.

SECTION 15.02.025. RESIDENTIAL STANDARDS.

The City of San Luis Obispo hereby adopts the 2025 California Residential Code as Part

2.5 of the San Luis Obispo Building Construction and Fire Prevention Code, 2026. Except as otherwise provided herein, or as later amended in Section 15.04.025, Part 2.5 of the San Luis Obispo Building Construction and Fire Prevention Code, 2026, shall be as published in the California Residential Code, 2025 edition, and as copyrighted in 2023 by the International Code Council, Inc. and the California Building Standards Commission, California Code of Regulations, Title 24, Part 2.5, including all of its tables, indices, addenda, footnotes, and appendices adopted by the State of California. Said California Residential Code is hereby referred to and by such reference is incorporated herein as if fully set forth.

SECTION 15.02.030. ELECTRICAL STANDARDS.

The City of San Luis Obispo hereby adopts the 2025 California Electrical Code as Part 3 of the San Luis Obispo Building Construction and Fire Prevention Code, 2026. Except as otherwise provided herein, or as later amended in Section 15.04.030, Part 3 of the San Luis Obispo Building Construction and Fire Prevention Code, 2026, shall be as published in the California Electrical Code, 2025 edition, and as copyrighted in 2023 to the National Fire Protection Association, Inc. and the California Building Standards Commission, California Code of Regulations, Title 24, Part 3, including all of its tables, indices, appendices, addenda, annexes and footnotes. Said California Electrical Code is hereby referred to and by such reference is incorporated herein as if fully set forth.

SECTION 15.02.040. MECHANICAL STANDARDS.

The City of San Luis Obispo hereby adopts the 2025 California Mechanical Code as Part 4 of the San Luis Obispo Building Construction and Fire Prevention Code, 2026. Except as otherwise provided herein, or as later amended in Section 15.04.040, Part 4 of the San Luis Obispo Building Construction and Fire Prevention Code, 2026, shall be as published in the California Mechanical Code, 2025 edition, and as copyrighted in 2024 by the

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International Association of Plumbing and Mechanical Officials and the California Building Standards Commission, California Code of Regulations, Title 24, Part 4, including all of its tables, indices, addenda, footnotes, and the following appendices:
 Appendix A – Residential Plans Examiner Review Form for HVAC System Design  Appendix B – Procedures to be Followed to Place Gas Equipment in Operation  Appendix C – Installation and Testing of Oil (Liquid) Fuel-Fired Equipment  Appendix D – Fuel Supply: Manufactured/Mobile Home Parks and Recreational Vehicle Parks
 Appendix F –Sizing of Venting Systems and Outdoor Combustion and Ventilation Opening Design
 Appendix G – Example Calculation of Outdoor Air Rate

Said California Mechanical Code is hereby referred to and by such reference is incorporated herein as if fully set forth.

SECTION 15.02.050. PLUMBING STANDARDS.

The City of San Luis Obispo hereby adopts the 2025 California Plumbing Code as Part 5 of the San Luis Obispo Building Construction and Fire Prevention Code, 2026. Except as otherwise provided herein, or as later amended in Section 15.04.050, Part 5 of the San Luis Obispo Building Construction and Fire Prevention Code, 2026, shall be as published in the California Plumbing Code 2025 edition, and as copyrighted in 2024 by the International Association of Plumbing and Mechanical Officials and the California Building Standards Commission, California Code of Regulations, Title 24, Part 5, including all of its tables, indices, addenda, footnotes, and the following appendices:
 Appendix A – Recommended Rules for Sizing the Water Supply System  Appendix B – Explanatory Notes on Combination Waste and Vent Systems  Appendix C – Alternate Plumbing Systems
 Appendix D – Sizing Storm Water Drainage Systems
 Appendix E – Manufactured/Mobile Home Parks and Recreational Vehicle Parks  Appendix G – Sizing of Venting Systems
 Appendix H – Private Sewage Disposal Systems
 Appendix I – Installation Standards
 Appendix J – Combination of Indoor and Outdoor Combustion and Ventilation Opening Design
 Appendix K – Potable Rainwater Catchment Systems
 Appendix M – Peak Water Demand Calculator
 Appendix N – Impact of Water Temperature on The Potential for Scalding and Legionella Growth
Said California Plumbing Code is hereby referred to and by such reference is incorporated herein as if fully set forth.

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SECTION 15.02.060. ENERGY STANDARDS
The City of San Luis Obispo hereby adopts the 2025 California Energy Code as Part 6 of the San Luis Obispo Building Construction and Fire Prevention Code, 2026. Except as otherwise provided herein, or as later amended in Section 15.04.060, or affected by San Luis Obispo Health and Safety Code Chapter 8.11, Part 6 of the San Luis Obispo Building Construction and Fire Prevention Code, 2026, shall be as published in the California Energy Code 2025 edition, and as copyrighted by the California Building Standards Commission, California Code of Regulations, Title 24, Part 6, including all of its tables, indices, appendices, addenda and footnotes. Said California Energy Code is hereby referred to and by such reference is incorporated herein as if fully set forth.

SECTION 15.02.070. Wildland-Urban Interface Standards
The City of San Luis Obispo hereby adopts the 2025 California Wildland-Urban Interface Code as part 7 of the San Luis Obispo Building Construction and Fire Prevention Code, 2026. Except as otherwise provided herein, or as later amended in Section 15.04.070, Part 7 of the San Luis Obispo Construction and Fire Prevention Code, 2026, shall be as published in the California Wildland-Urban Interface Code 2025 edition, and as copyrighted in 2024 by the International Code Council, Inc. and the California Building Standards Commission, California Code of Regulations, Title 24, Part 7 including all of its tables, indices, addenda, and footnotes. Said California Wildland-Urban Interface Code is hereby referred to and by such reference is incorporated herein as if fully set forth.

SECTION 15.02.080. HISTORICAL BUILDING STANDARDS
The City of San Luis Obispo hereby adopts the 2025 California Historical Building Code as Part 8 of the San Luis Obispo Building Construction and Fire Prevention Code, 2026.

Except as otherwise provided herein, or as later amended in Section 15.04.080, Part 8 of the San Luis Obispo Building Construction and Fire Prevention Code, 2026, shall be as published in the California Historical Building Code 2025 edition, and as copyrighted by the California Building Standards Commission, California Code of Regulations, Title 24, Part 8, including all of its tables, indices, appendices, addenda and footnotes. Said California Historical Building Code is hereby referred to and by such reference is incorporated herein as if fully set forth.

SECTION 15.02.090. FIRE PREVENTION STANDARDS
The City of San Luis Obispo hereby adopts the 2025 California Fire Code as Part 9 of the San Luis Obispo Building Construction and Fire Prevention Code, 2026. Except as otherwise provided herein, or as later amended in Section 15.04.090, Part 9 of the San Luis Obispo Building Construction and Fire Prevention Code, 2026, shall be as published in the California Fire Code, 2025 edition, and as copyrighted in 2024 by the International Code Council, Inc. and the California Building Standards Commission, California Code of Regulations, Title 24, Part 9, including all of its tables, indices, addenda, footnotes, and the following appendices:

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 Appendix Chapter 4 – Special Detailed Requirements Based on Use and Occupancy
 Appendix B – Fire-flow Requirements for Buildings
 Appendix BB – Fire-flow Requirements for Buildings
 Appendix C – Fire Hydrant Locations and Distribution
 Appendix CC – Fire Hydrant Locations and Distribution  Appendix D – Fire Apparatus Access Roads
 Appendix E – Hazard Categories
 Appendix F – Hazard Ranking
 Appendix G – Cryogenic Fluids-Weight and Volume Equivalents  Appendix H – Hazardous Materials Management Plans and Hazardous Materials Inventory Statements
 Appendix I – Fire Protection Systems-Noncompliant Conditions  Appendix J – Building Information Sign
 Appendix K – Construction Requirements for Existing Ambulatory Care Facilities  Appendix M – High-Rise Buildings-Retroactive Automatic Sprinkler Requirement  Appendix N – Indoor Trade Shows and Exhibitions
 Appendix P – Temporary Haunted Houses, Ghost Walks and Similar Amusement Uses
 Appendix Q – Community Wildland-Urban Interface (WUI) Fire Hazard Evaluation Framework
Said California Fire Code is hereby referred to and by such reference is incorporated herein as if fully set forth.

SECTION 15.02.100. EXISTING BUILDING STANDARDS
The City of San Luis Obispo hereby adopts the 2025 California Existing Building Code as Part 10 of the San Luis Obispo Building Construction and Fire Prevention Code, 2026.

Except as otherwise provided herein, or as later amended in Section 15.04.100, Part 10 of the San Luis Obispo Building Construction and Fire Prevention Code, 2026, shall be as published in the California Existing Building Code 2025 edition, and as copyrighted in 2024 by the International Code Council, Inc. and the California Building Standards Commission, California Code of Regulations, Title 24, Part 10, including all of its tables, indices, appendices, addenda and footnotes. Said California Existing Building Code is hereby referred to and by such reference is incorporated herein as if fully set forth.

SECTION 15.02.110. GREEN BUILDING STANDARDS
The City of San Luis Obispo hereby adopts the 2025 California Green Building Standards Code as Part 11 of the San Luis Obispo Building Construction and Fire Prevention Code, 2026. Except as otherwise provided herein, or as later amended in Section 15.04.110, Part 11 of the San Luis Obispo Building Construction and Fire Prevention Code, 2026, shall be as published in the California Green Building Standards Code, 2025 edition, and as published in 2025 by the International Code Council, Inc. and the California Building Standards Commission, California Code of Regulations, Title 24, Part 11, including all of

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its tables, indices, addenda, footnotes, and appendices adopted by the State of California.

Said California Green Building Standards Code is hereby referred to and by such reference is incorporated herein as if fully set forth.

SECTION 15.02.120. REFERENCED STANDARDS
The City of San Luis Obispo hereby adopts the 2025 California Referenced Standards Code as Part 12 of the San Luis Obispo Building Construction and Fire Prevention Code, 2026. Except as otherwise provided herein, or as later amended in Section 15.04.120, Part 12 of the San Luis Obispo Building Construction and Fire Prevention Code, 2026, shall be as published in the California Referenced Standards Code, 2025 edition, and as published in 2025 by the International Code Council, Inc. and the California Building Standards Commission, California Code of Regulations, Title 24, Part 12, including all of its tables, indices, appendices, addenda and footnotes. Said California Referenced Standards Code is hereby referred to and by such reference is incorporated herein as if fully set forth.

SECTION 15.02.130. PROPERTY MAINTENANCE STANDARDS
The City of San Luis Obispo hereby adopts the 2024 International Property Maintenance Code as Part 13 of the San Luis Obispo Building Construction and Fire Prevention Code, 2026. Except as otherwise provided herein, or as later amended in Section 15.04.130, Part 13 of the San Luis Obispo Building Construction and Fire Prevention Code, 2026, shall be as published in the International Property Maintenance Code, 2021 edition, and as published in 2024 by the International Code Council, Inc., including all of its tables, indices, appendices, addenda and footnotes. Said International Property Maintenance Code is hereby referred to and by such reference is incorporated herein as if fully set forth.

SECTION 15.02.140. HEALTH AND SAFETY STANDARDS
The City of San Luis Obispo hereby adopts the 1997 Editions of the Uniform Housing Code and the Uniform Code for the Abatement of Dangerous Buildings as Part 14 of the San Luis Obispo Building Construction and Fire Prevention Code, 2026. Except as otherwise provided herein, or as later amended in Section 15.04.140, Part 14 of the San Luis Obispo Building Construction and Fire Prevention Code, 2026, shall be as published in the Uniform Housing Code and the Uniform Code for the Abatement of Dangerous Buildings, 1997 edition, and as published by the International Conference of Building Officials including all of its tables, indices, appendices, addenda and footnotes. Said Uniform Housing Code and the Uniform Code for the Abatement of Dangerous are hereby referred to and by such reference are incorporated herein as if fully set forth.

SECTION 15.02.150 VIOLATION PENALTIES
Persons who shall violate a provision of the California Fire Code or shall fail to comply with any of the requirements thereof or who shall erect, install, alter, repair or do work in

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violation of the approved construction documents or directive of the fire code official, or of a permit or certificate used under provisions of this code, shall be guilty of a misdemeanor, punishable by a fine of not more than one thousand dollars or by imprisonment not exceeding one year, or both such fine and imprisonment. Each day that a violation continues after due notice has been served shall be deemed a separate offense
SECTION 6. Chapter 15.04 of the San Luis Obispo Municipal Code is hereby amended in its entirety to read as follows:

CHAPTER 15.04 AMENDMENTS TO THE BUILDING CONSTRUCTION AND FIRE

PREVENTION CODE
SECTION 15.04.010 BUILDING OFFICIAL AND FIRE CODE OFFICIAL DESIGNATED The Chief Building Official is hereby designated as the building official and code official for the City of San Luis Obispo. The Fire Chief is hereby designated as the fire code official for the City of San Luis Obispo. Where the “authority having jurisdiction” is used in the adopted codes, it shall mean the building official or fire code official, as applicable.

SECTION 15.04.020 AMENDMENTS; BUILDING STANDARDS
A. Amend Chapter 1, Division II, Section 101.1 to read as follows:
101.1 Title. These regulations shall be known as the Building Code of The City of San Luis Obispo, hereinafter referred to as “this code.” B. Amend Chapter 1, Division II, Section 103.1 to read as follows:
103.1 Creation of enforcement agency. The Building and Safety Division is hereby created and the official in charge thereof shall be known as the building official. The function of the agency shall be the implementation, administration and enforcement of the provisions of this code.

C. Add Chapter 1, Division II, Section 104.9.2 to read as follows 104.9.2 Alternate Means and Methods Fee. When a request for approval of an Alternate Means and Methods is proposed under Section 104.9, an Alternate Means and Methods fee shall be paid at the time of submitting the documents for review. Said fee shall be in accordance with the schedule as established by the applicable governing authority.

D. Add Chapter 1, Division II, Section 104.10 to read as follows:
104.10 Airspace subdivisions. The building official shall have the authority to apply the building ordinances of the City of San Luis Obispo and those building regulations mandated by State law to be enforced by the local agency to buildings and structures containing one or more airspace lots as defined in this code so as

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to treat the entirety of such buildings or structures as if they were on or within a single lot, provided:

1. That such buildings or structures or portions thereof would otherwise conform to such ordinances and regulations, but for the creation of such airspace lots; and

2. That a covenant agreement, in a form designed to run with the land and satisfactory to the Community Development Director, be recorded with the Office of County Recorder and a copy filed with the Community Development Department by the owners binding themselves and future owners and assigns to keep, preserve and maintain all portions of such buildings or structures in accordance with and pursuant to such building ordinances and regulations.

E. Amend Chapter 1, Division II, Section 105.2 Building items 1, 2 and 5 to read as follows:

Work exempt from permit.

Building:

1. One –story detached accessory structures associated with an R-3 occupancy building used as tool and storage sheds, playhouses and similar uses, provided the floor area is not greater than 120 square feet (11 m2).

Maximum building height shall be 12 ft. above grade to highest point of structure. Such structure must comply with all provision of Title 17 of the Municipal Code. It is permissible that these structures still be regulated by Section 504.11 of the California Wildland-Urban Interface Code, despite exemption from permit.

2. Fences not over 6 feet high constructed of conventional lightweight materials including wood, vinyl, and wrought iron.

5. A water tank or a group of water tanks intended for storage of irrigation water only supported directly on grade if the capacity does not exceed 600 gallons in total on a parcel, the height does not exceed seven feet, and the ratio of height to width does not exceed 2:1 (provided that water tanks with minor ratio deviances may be allowed under this section in the discretion of the Chief Building Official, subject to review of the deviation by the Chief Building Official and verification that such minor deviations do not adversely impact structural stability), and it is not visible from the public right-of way that abuts the front yard.

F. Amend Chapter 1, Division II, Section 105.3.2 to read as follows:
105.3.2 Time limitation of application. An application for a permit for any proposed work shall be deemed to have been abandoned 180 days after the date of filing, unless such application has been pursued in good faith or a permit has been issued; except that the building official is authorized to grant one or more extensions of time for additional periods not exceeding 180 days. The extension

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shall be requested in writing and justifiable cause demonstrated. In order to renew action on an application after expiration, the applicant shall resubmit plans and pay a new plan review fee if additional review by the City is necessary. An application for a permit that is abandoned after adoption of new mandatory building codes by the State may not be extended and must comply with the new regulations.

G. Add Chapter 1, Division II, Section 105.3.3 to read as follows:
105.3.3 Plan review fees. When submittal documents are required by Section 107.1, a plan review fee shall be paid at the time of submitting the submittal documents for plan review. Said plan review fee shall be in accordance with the schedule as established by the applicable governing authority. 105.3.3.1 Retaining Walls. Separate plan review fees shall apply to permits for retaining walls and major drainage structures in conjunction with grading.

For excavation and fill on the same site, the plan review fee for grading shall be based on the volume of excavation or fill, whichever is greater. 105.3.3.2 Separate Fees. The plan review fees specified in this section are separate fees from the permit fees specified in Section 109.2 and are in addition to the permit fees.
105.3.3.3 Incomplete Submittals. Where submittal documents are incomplete or changed so as to require additional plan review, or where the project involves deferred submittal items as defined in Section 107.3.4.1, an additional plan review fee may be charged at a rate established by the applicable governing authority.

H. Amend Chapter 1, Division II, Section 105.5.1 to read as follows:
105.5.1 Expiration. Every permit issued shall become invalid unless the work on the site authorized by such permit is commenced within 12 months after its issuance, or if the work authorized on the site by such permit is suspended or abandoned for a period of 12 months after the time the work is commenced. Work shall be deemed abandoned if an inspection required to be performed under the work authorized by the permit is not approved within 12 months of the most recent prior approved inspection. The building official is authorized to grant, in writing, one or more extensions of time, for periods not more than 180 days each. The extension shall be requested in writing and justifiable cause demonstrated. A permit that is abandoned after adoption of new mandatory building codes by the State may not be extended and must be submitted for review to comply with the new regulations.
105.5.2 Code Violations Expiration. Permits issued to correct code violations pursuant to a code enforcement case shall be valid for a period of 90 days. Extensions to the permit may be granted at the discretion of the building official. Performance or approval of a required inspection will not automatically extend the permit.

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I. Amend Chapter 1, Division II, Section 105.7 to read as follows:
105.7 Placement and Posting of Permit. A copy of the issued job posting card shall be displayed on the construction site within 20 feet of the curb and shall be visible and accessible to the public from the public right of way until completion of the project.

J. Amend Chapter 1, Division II, Section 109.4 to read as follows:
109.4 Work Commencing Before Permit Issuance. Any person who commences any work on a building, structure, electrical, gas, mechanical or plumbing system before obtaining the necessary permits shall be subject to a special investigation fee. Special Investigation fees are equal to 100% of the normally established permit fee and are in addition thereto, unless a lessor amount is determined to be appropriate by the building official. The building official may waive all or a portion of the special investigation fee in the following cases:

1. Where a property owner inherits unpermitted construction through the purchase of a property and voluntarily seeks a permit following initial discovery or notification of the violation.

2. When a property owner commences emergency repairs to protect life or property without first obtaining a permit during an emergency situation such as a natural disaster or severe weather conditions, provided that the property owner obtains a permit for such repairs as soon as practicable thereafter and no enforcement action is required.

3. In other cases where the building official determines that unpermitted work did not result from an intent to avoid compliance with building codes or permit requirements.

K. Add Chapter 1, Division II, Sections 109.4.1 to read as follows:
109.4.1 Code Enforcement Investigation Fee. When work requiring a permit is discovered and through the investigation of the Code Enforcement Division a person obtains the necessary permits to correct the work performed, a Code Enforcement Fee will be required at a rate established by the applicable governing authority. This fee is in addition to the Special Investigation Fee.

L. Add Chapter 1, Division II, Sections 111.3.1 to read as follows:
111.3.1 Temporary Certificate of Occupancy Fee. When an applicant wishes to receive permission to occupy a structure and they have not completed the work required under their permit and they request a temporary certificate of occupancy for limited use of the building, a fee shall be required for preparation of the agreement and certificate for the limited use of the building. Such fee shall be set at a rate established by the applicable governing authority. Additional inspections required to verify

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compliance with the temporary occupancy shall be required to be paid in advance at the current hourly inspection rate.

M. Add Chapter 1, Division II, Sections 112.4 and 112.5 to read as follows:
112.4 Underground utility services. All new electric, telephone, television, and other communication service connections, for all new, altered, or enlarged buildings shall be provided by underground wiring. Extension of electric or communication distribution lines to serve such projects shall be by underground wiring.

Exceptions:

1. A building located in residential or conservation/open space zone established by the jurisdiction's zoning regulations, provided that there are existing buildings on the property that are served by overhead connection lines.

2. Replacement or relocation of electric service equipment served by existing overhead wiring.

3. Where determined by the building official to be impractical or infeasible within the standards and practices of the utility or other companies providing such services.

Where the utility or other company's distribution system is underground, the service lines shall terminate at a connection point designated by the utility company. Where the utility or other company's distribution is overhead, the service lines shall terminate as a pole riser on a pole designated by the utility company.
112.5 Storage of solid waste containers. All new Group R, Division 3 occupancies shall provide a space adequate in size to store and screen all solid waste (trash, recycling and green waste) containers when viewed from the public right-of-way. The storage area shall have minimum dimensions of 3 feet (914 mm) by 8 feet (2438 mm) or 6 feet (1829 mm) by 6 feet (1829 mm) and shall not conflict with required parking spaces. If the storage area is located in the front yard setback established by other ordinances, the storage area shall be screened by a fence, partition or other enclosure in compliance with maximum height limitations. In no case shall a partition or enclosure required by this section be less than 48 inches (1219 mm) above adjacent grade.

N. Amend Chapter 1, Division II, Section 113 to read as follows:
113.1 General. In order to hear and decide appeals of orders, decisions or determinations made by the building official, code official or fire code official relative to the application and interpretations of the California Building Standards Code, the Uniform Housing Code, the Uniform Code for the Abatement of Dangerous Buildings, and the International Property Maintenance Code, there shall be and is hereby created a Board of Appeals.

Said Board shall also serve as the Housing Appeals Board and the Local

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Accessibility Appeals Board referenced in the California Building Standards Code. The building official or fire code official shall be an ex officio member and shall act as secretary to said board but shall have no vote upon any matter before the board. The Board of Appeals shall be appointed by the applicable governing authority and shall hold office at its pleasure. The board shall adopt rules of procedure for conducting its business and shall render all decisions and findings in writing to the appellant with a duplicate copy to the building official.
113.2 Limitations on authority. An application for appeal shall be based on a claim that the true intent of this code or the rules legally adopted hereunder have been incorrectly interpreted, the provisions of this code do not fully apply or an equally good or better form or construction is proposed. The board shall have no authority to waive requirements of this code. For appeals relating to accommodations for the disabled, the authority of the board shall include the ability authorize reasonable alternatives to disabled access requirements imposed by the California Building Standards Code.
113.3 Qualifications. The board of appeals shall consist of seven members, five of which who are qualified by experience and training to pass on matters pertaining to building construction and building service equipment, hazards of fire, explosions, hazardous conditions or fire protection systems and are not employees of the jurisdiction. For matters subject to the appeal process referenced in H & S Code 19957.5 paragraph (b) regarding accommodations for persons with physical disabilities, the board of appeals shall include two additional members who shall be persons with disabilities as defined in the California Building Code.

O. Add Chapter 1, Division II, Section 113.5 of to read as follows:
113.5 Fees. A fee titled “Appeal of Building Official Decision”, or “Access Board of Appeals” shall be collected for appeal of a decision of the building official, code official or fire code official to the appropriate board of appeals.

P. Amend Chapter 1, Division II, Section 116.1 of to read as follows:
116.1 Unsafe Conditions. Structures or existing equipment that are or hereafter become unsafe, unsanitary or deficient because of inadequate means of egress facilities, inadequate light and ventilation, or which constitute a fire hazard, or are otherwise dangerous to human life or public welfare, or that involve illegal or improper occupancy or inadequate maintenance, shall be deemed an unsafe condition. Unsafe structures shall be taken down and removed or made safe, as the building official deems necessary and as provided for in this section and the Uniform Housing Code, the Uniform Code for the Abatement of Dangerous Buildings, and the International Property Maintenance Code, as adopted. A vacant structure that is not secured against entry shall be deemed unsafe.

Q. Add the following definitions to Section 202:

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Boarding House. A building arranged or used for lodging for compensation, with or without meals, and not occupied as a single-family unit. A boarding house may have only one kitchen or facility for eating and cooking and such facility must be accessible to all residents or guests. See also definition of Congregate Residence.

Lot, Airspace. A division of the space above or below a lot with finite width, length and upper and lower elevation occupied or to be occupied by a use, building or portion thereof, group of buildings or portions thereof, and accessory buildings or portions thereof, or accessory uses. An Airspace lot shall be identified on a final map or a parcel map in the office of the County Recorder with a separate and distinct number or letter. An Airspace lot shall have access to appropriate public rights of way by means of one or more easements or other entitlements to use in a form satisfactory to the Chief Building Official and the City Engineer.

Rainwater Harvesting System. A storm drainage collection system that collects rainwater from the roof area of a structure or structures as recommended by the American Rainwater Catchment System Association (ARCSA) guidelines or an equivalent standard as approved by the Building Official and the San Luis Obispo County Environmental Health Department.

See also definition of Rainwater Catchment System.

Subdivision, Airspace. An airspace subdivision shall be as defined in Chapter 16 of the San Luis Obispo Municipal Code.

R. Add Section 602.1.2 to read as follows:
602.1.2 Commercial fire zone. Construction of interior walls, floors, ceilings and partitions as a part of additions or alterations to any existing building or structure located within the commercial fire zone shown in Figure 6- A shall be constructed with 5/8" Type "X" gypsum wallboard or its equivalent regardless of all other lesser minimum requirements to the contrary.

Exception: Buildings protected throughout by an approved automatic fire sprinkler system.

FIGURE 6-A – COMMERCIAL FIRE ZONE

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S. Amend Section 705.12 by addition of item 7 to the Exceptions to read as follows:

7. The building is protected throughout by an approved automatic fire sprinkler system.

T. Amend Section 903.1.1 to read as follows:
903.1.1 Minimum Sprinkler Coverage. Unless the fire official approves an alternative automatic fire-extinguishing system complying with section 904, an approved automatic fire sprinkler system shall be installed in accordance with sections 903.1.1.1 through 903.1.1.6:

U. Add Sections 903.1.1.1 through 903.1.1.6 to read as follows 903.1.1.1 New Buildings. An approved automatic fire sprinkler system shall be installed throughout new buildings.

Exceptions:

1. Buildings containing Groups A, B, E, F, H-4, M, S, and U occupancies where floor area is not more than 1000 square feet (92.9 m2), unless located in the commercial fire zone shown in Figure 6-A.

2. Buildings of non-combustible construction located in the commercial fire zone shown in Figure 6-A containing Groups

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A, B, E, F, H-4, M, S, and U occupancies where floor area is not more than 1000 square feet (92.9 m2).

3. Buildings located in the commercial fire zone shown in Figure 6-A containing Groups A, B, E, F, H-4, M, S, and U
occupancies where floor area is not more than 1000 square feet (92.9 m2) and the building is entirely surrounded by yards or public ways not less than 20 feet (6096 mm) in width. 903.1.1.2 Existing Buildings. An approved automatic fire sprinkler system shall be installed throughout an existing building whenever alterations or additions result in an increase of more than 1000 square feet (92.9 m2) of floor area, including mezzanines or additional stories, or whenever the cost of alterations to an existing building having a floor area of more than 1000 square feet (92.9m2) exceeds 50 percent of the replacement cost of the building as determined by the building official. The cost of alteration and increase in floor area shall include all corresponding data from permits issued to the building for the previous five years.

Exception: Group R, Division 3 and Group U occupancies. 903.1.1.3 Additions. An approved automatic fire sprinkler system shall be installed throughout additions to existing buildings equipped with an automatic fire sprinkler system.
903.1.1.4 Change of Use. An approved automatic fire sprinkler system shall be installed throughout an existing building where there is an occupancy classification change for floor area exceeding 1000 square feet (92.9m2). The provisions of Section 101.4.2 of the California Existing Building Code shall not eliminate the requirement for an automatic fire sprinkler system.

Exceptions:

1. An attached Group U occupancy changed to a Group R,
Division 3 occupancy, provided the building was constructed before July 7, 1990 and there is no increase in floor area.

2. Occupancy classification changes to Groups F, M, S, and U from an equivalent category as defined in previous editions of this code.
903.1.1.5 Buildings with Plastics. An approved automatic fire sprinkler system shall be installed throughout in buildings where cellulose nitrate film or pyroxylin plastics are manufactured, stored or handled. 903.1.1.6 Floor Area Calculation. For the purpose of requiring the automatic fire sprinkler systems specified in this chapter, the floor area within the surrounding exterior walls together with the floor area within the horizontal projection of the roof shall be considered as one building.

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V. Amend Sections 903.3.1.1 and 903.3.1.1.1 with all locations identified in this section to read as follows:
903.3.1.1 NFPA 13 sprinkler systems. Where other provisions of this code require that a building or portion thereof be equipped throughout with an automatic sprinkler system in accordance with this section or where a building is considered as mixed occupancy due to the presence of two or more uses that are classified into different occupancy groups, sprinklers shall be installed throughout in accordance with NFPA 13 as amended in Chapter 35 except as provided in Section 903.3.1.1.1 through 903.3.1.1.3. Sprinkler system designs referenced in Sections 903.3.5.2 and 903.3.8 shall require special approval by the fire code official.
903.3.1.1.1 Exempt locations. In other than Group I-2, I-2.1 and I-3 occupancies, automatic sprinklers shall not be required in the following rooms or areas where such rooms or areas are protected with an approved alternative automatic fire extinguishing system in accordance with Section 904. Sprinklers shall not be omitted from any room merely because it is damp, of fire-resistancerated construction or contains electrical equipment.

W. Amend Section 903.3.9 and add Exception to read as follows:
903.3.9 Isolation control valves. Approved supervised indicating control valves shall be provided at the point of connection to the riser on each floor in all buildings two or more stories in height or in single-story buildings having a gross floor area of 10,000 square feet or more zoned into no more than 5,000 square- foot areas for the purpose of maintaining system integrity for life safety and evacuation.

Exception: Isolation control valves may be omitted in buildings equipped with an automatic fire extinguishing system installed in accordance with Section 903.3.1.3.

X. Amend Section 903.4 to read as follows, with Exceptions to remain:
903.4 Sprinkler system supervision and alarms. All valves controlling the water supply for automatic sprinkler systems, pumps, tanks, water levels and temperatures, critical air pressures, and water-flow switches on all sprinkler systems shall be electrically supervised by a central station service listed by Underwriters Laboratories for receiving fire alarms in accordance with NFPA

72. The central station shall contact and notify the police/fire dispatch center immediately on notification of an alarm and prior to making contact with the protected premises.

Y. Amend Section 905.3.1 to read as follows, with Exceptions to remain:
905.3.1 Building Height. Class III standpipe systems shall be installed throughout buildings where the floor level of the highest story is located more than 30 feet (9144 mm) above the lowest level of the fire department vehicle access, or where the floor level of the lowest story is located more than 30 feet

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(9144 mm) below the highest level of fire department vehicle access and in any parking structure exceeding one level above or one level below grade.

Z. Amend Section 907.6.6 to read as follows:
907.6.6 Monitoring. Fire alarm systems required by this chapter or by the California Building Code or the California Fire Code shall be monitored by an approved central station service listed by Underwriters Laboratory for receiving fire alarms in accordance with NFPA 72. The central station shall contact and notify the police/fire dispatch center immediately on notification of an alarm and prior to making contact with the protected premises.

Exception: Supervisory service is not required for:

1. Single and multiple station smoke alarms required by Section 907.2.11.

2. Group I-3 occupancies shall be monitored in accordance with Section 907.2.6.3.

3. Automatic sprinkler systems in one and two-family dwellings.

AA. Add Section 910.3.2.1 to read as follows:
910.3.2.1 Sprinklered buildings. Where installed in buildings equipped with an approved automatic sprinkler system, smoke and heat vents shall be designed to operate automatically by actuation of a heat responsive device rated at least 100 degrees above the operating temperature of the sprinkler heads.

BB. Add Section 1506.3.1 to read as follows:
1506.3.1 Wood shake and shingle roof covering limitations. Wood shake or shingle roof coverings shall not be installed on any building.

Exception: A wood shake or wood shingle system listed as a Class Arated roof covering.

CC. Amend Section 1612.3 to read:
1612.3 Establishment of flood hazard areas. To establish flood hazard areas, the applicable governing authority shall adopt a flood hazard map and supporting data. The flood hazard map shall include, at a minimum, areas of special flood hazard as identified by the Federal Emergency Management Agency in an engineering report entitled “The Flood Insurance Study for the City of San Luis Obispo” dated May 16, 2017 (Revised), as amended or revised with the accompanying Flood Insurance Rate Map (FIRM) and Flood Boundary and Floodway Map (FBFM) and related supporting data along with any revisions thereto. The adopted flood hazard map and supporting data are hereby adopted by reference and declared to be part of this section.

DD.Add Section 1804.4.2 to read as follows:

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1804.4.2 Drainage. Provisions shall be made for the control and drainage of surface water around buildings. Drainage systems necessary shall be adequate to prevent water from entering and accumulating under the building.

Drainage water from improvements and land contour changes shall not drain onto or across adjacent properties except in recorded drainage easements or natural waterways.

EE. Add Section 1809.7.1 to read as follows:
1809.7.1 Depth of isolated footings. Isolated footings and piers, exterior of perimeter foundation, shall have a minimum depth of 24 inches (609.6 mm) below the lowest adjacent natural undisturbed grade.

FF. Modify Table 1809.7 to read as follows:

TABLE 1809.7
FOOTINGS SUPPORTING WALLS OF LIGHT-FRAME CONSTRUCTION a b c d e h
NUMBER

OF FLOORS

SUPPORTED BY
THE FOOTING f

WIDTH OF

FOOTING
(inches)

THICKNESS
OF

FOOTING
(inches)

DEPTH BELOW
GRADE
(inches)
Perimeter
Interior
1 12 6 21 12
2 15 8 24 18
3 18 8
g 30 24
a
Depth of footings shall be in accordance with Section 1809.4. b The ground under the floor shall be permitted to be excavated to the elevation of the top of the footing.
c
Interior stud bearing walls shall be permitted to be supported by isolated footings. The footing width and length shall be twice the width shown in this table and the footings shall be spaced not more than 6 feet on center. d See section 1905 for additional requirements for concrete footings of structures assigned to Seismic Design Category C, D, E or F. e For thickness of foundation walls see section 1807.1.6. f Footings shall be permitted to support a roof in addition to the stipulated number of floors. Footings supporting roofs only shall be as required for

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San Luis Obispo City CouncilNovember 18, 2025

San Luis Obispo City Council
November 18, 2025