Item 6b
Calendar Year Rebates Issued Amount Dispersed
2019 76 $122,000
2020 97 $229,875
2021 71 $190,900
2022 76 $190,000
2023 39 $99,000
2024 29 $85,000
2025 62 $267,000
Total 450 $1,183,775
Table 3: Private Sewer Lateral Replacements
Budgeted: Yes Budget Year: 2025-27
Funding Identified: Yes
Fiscal Analysis:
Funding
Sources
Total
Budget
Available
Current
Funding
Request
Remaining
Balance
Annual Ongoing
Cost
Sewer Fund
(2001024)
$266,085 $0 $266,085 $0
Total $266,085 $0 $266,085 $0
As of November 24, 2025, the available balance in 2001024 – Sewer Inflow and Infiltration Reduction is $266,085. No additional funding is requested for Fiscal Year 2025-26. There will be an ongoing fiscal impact to fund expanded eligibility for the Private Sewer Lateral Replacement Program, but this impact is not yet quantifiable. If authorized, staff will fund all changes from Council-approved allocations for 2001024 – Sewer Inflow and Infiltration Reduction as part of the 2025-27 Financial Plan ($420,000 per fiscal year). At the next financial plan (or earlier as prudent), staff will evaluate the effectiveness of these revisions and provide funding recommendations accordingly.
ALTERNATIVES
1. Council may direct staff not to amend the General Plan capacity-constrained boundaries map. The impacts of this alternative include requiring private sewer lateral replacements in areas that have not been identified as capacity-constrained by the 2025 Renewal Strategy. By not updating the capacity-constrained boundaries map, staff would be administering a program informed by data from 10 years prior, which does not account for current conditions as outlined in the 2025 Renewal Strategy.
Item 6b
2. Council may direct staff not to proceed with expanding eligibility criteria for Private Sewer Lateral Replacement Rebates. The impacts of this alternative may include reduced private sewer lateral replacements. Further, by limiting eligibility to single-family home projects and excluding multi-family or commercial properties, as the current program requires, staff believe there would be ongoing equity concerns and limitations in addressing private infrastructure repairs in the most critical locations (capacity-constrained areas). Limiting current eligibility to only single-family homes would slow progress and improvement in these areas.
3. Council may direct staff not to proceed with the adoption of a new Private Sewer Lateral Inspection Rebate. The impacts of this alternative would likely be reduced data provided to the City, which would help developers and property owners locate private sewer laterals to be replaced through offset requirements and voluntary proactive replacements.
4. Council may direct staff to make changes to either rebate program. The impacts of this alternative would be dependent on the changes that Council directs staff to make.
ATTACHMENTS
A - Draft Resolution Approving Amendments to the Water and Wastewater Element of the General Plan (GENP-0762-2025)
B - (Exhibit A) WWE Legislative Draft
C - Draft Resolution amending the Private Sewer Lateral Rebate Program and Establishing a Private Sewer Lateral Inspection Rebate Program
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RESOLUTION NO. _____ (2025 SERIES)
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS
OBISPO, CALIFORNIA, ADOPTING AMENDMENTS TO THE WATER
AND WASTEWATER ELEMENT OF THE GENERAL PLAN (GENP-0762-
2025)
WHEREAS, Government Code Section 65300 mandates all cities and counties to adopt a comprehensive, long-term general plan to guide their physical development; and WHEREAS, the Water and Wastewater Element of the City of San Luis Obispo General Plan was last updated in 2020 in compliance with State law; and WHEREAS, General Plan Water and Wastewater Element Policies state that the City’s wastewater collection system shall support population and related service demands consistent with the General Plan (Policy B 2.2.2), and the City shall collect and convey all wastewater under safe and sanitary conditions to the Water Resource Recovery Facility (Goad B 4.1), and maintain, and revise as necessary, master plans for the extension of wastewater services to developing areas of the City and to ensure orderly replacement of aged infrastructure (Program B 4.3.5); and
WHEREAS, the City of San Luis Obispo has prepared amendments to the General Plan Water and Wastewater Element to incorporate current information including an updated wastewater collections system capacity-constrained area map and associated references to current wastewater flow and infrastructure studies (2025 Wastewater Collections Infrastructure Renewal Strategy), and minor text edits to provide currently available information regarding the wastewater collections system and Water Resource Recovery Facility (Exhibit A); and
WHEREAS, the Planning Commission, at the hearing of October 22, 2025, considered the proposed amendments to the General Plan Water and Wastewater Element, found the proposed amendments consistent with the General Plan, and recommended the City Council approve amendments to the General Plan Water and Wastewater Element and proposed categorical exemptions to the California Environmental Quality Act; and
WHEREAS, the City Council, at the hearing of December 2, 2025, considered amendments to the General Plan Water and Wastewater Element and proposed categorical exemptions to the California Environmental Quality Act.
NOW, THEREFORE, BE IT RESOLVED by the Council of the City of San Luis Obispo as follows:
SECTION 1. Findings. The City Council, after considering the proposed amendments to the Water and Wastewater Element, staff presentation and recommendation, public testimony and correspondence, and reports thereon, and the
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Planning Commission’s recommendation to find the amendments consistent with the General Plan and find the action categorically exempt from the California Environmental Quality Act, make the following findings:
a) The proposed amendments to the Water and Wastewater Element are consistent with the General Plan.
b) The amendments to the Water and Wastewater Element are exempt from the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Sections 15307 (Actions by Regulatory Agencies for Protection of Natural Resources) and 15308 (Actions by Regulatory Agencies for the Protection of the Environment) because the intent of the capacity-constrained area map is to identify these areas in the City’s general plan such that land use planning can occur with these capacity limitations in mind. In addition, the updated map and policies to remain provide a basis in the General Plan for programs that reduce I&I and the potential for SSOs. Implementation of programs that address these capacity-related issues would have a beneficial impact on the environment by reducing the potential for I&I and overflows due to reduced flows from groundwater and stormwater.
SECTION 2. City Council Action. The City Council, after considering the proposed amendments to the Water and Wastewater Element, staff presentation and recommendation, public testimony and correspondence, and reports thereon, and the Planning Commission’s recommendation, approve adoption of the General Plan Water and Wastewater Element (Exhibit A).
Upon motion of Council Member ___________, seconded by Council Member ___________, and on the following roll call vote:
AYES:
NOES:
ABSENT:
The foregoing resolution was adopted this _____ day of _______________ 2025. ___________________________
Mayor Erica A. Stewart
ATTEST:
______________________
Teresa Purrington
City Clerk
Resolution No. _____ (2025 Series) Page 3
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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
EXHIBIT A – WATER AND WASTEWATER ELEMENT PROPOSED AMENDMENTS
LEGISLATIVE DRAFT
Water and Wastewater Element
WASTEWATER SERVICE
B 2.0 Background
The City is the sole provider of wastewater service within the City. The service provides collection and treatment for residential, commercial, and industrial users on properties within the city limits. In 20182025, the number of service connections is estimated to be 12,00013,421. Through agreement, the City also provides service to the San Luis Obispo campus of California Polytechnic State University (Cal Poly) and the County of San Luis Obispo Airport.
The collection system is primarily a gravity flow system. Where gravity flow is not feasible due to the topography, wastewater lift stations and pressurized force mains are used to move wastewater to the City’s Water Resource Recovery Facility on Prado Road. Sewer pipelines measure from six inches to 48 inches in diameter.
The City completed a two-year Flow Monitoring and Inflow/Infiltration Study in 2012. Using data from this Study, pipeline condition data from its asset management database, and growth assumption from the General Plan’s Land Use (2014) and Housing (2015) elements, the City completed hydraulic modeling and its Wastewater Collection System Infrastructure Renewal Strategy in 2016. The Renewal Strategy identified a prioritized list of capital projects to address the City’s aging infrastructure. The Renewal Strategy also identified capacity constrained areas during wet weather events due to inflow and infiltration, shown in Figure
3. Inflow and infiltration is discussed further in section B.4.0.
The City completed an updated Wastewater Collection System Infrastructure Renewal Strategy (WWCIRS) in July 2025. Development of the 2025 WWCIRS included the collection of wastewater flow data, the completion of a system-wide capacity modeling study in 2024, the incorporation of growth estimates based on build-out of the City’s General Plan and underlying zoning for each parcel, including assumptions for accessory dwelling units and developments that include a density bonus, and the completion of an updated wastewater flow model. Based on the results of the analysis, recommendations for capital improvement sewer projects are included in the 2025 WWCIRS. The WWCIRS also identified updated capacity-constrained areas during wet weather events due to inflow and infiltration. The updated capacity-constrained area map is included in this Element as Figure 3. Inflow and infiltration, and is discussed further in section B.4.0.
Following completion of a major upgrade in 2025 to increase capacity to serve the City’s build-out population outlined in the Land Use Element, Tthe Water Resource Recovery Facility (WRRF) is designed for an average dryweather flow of 5.1 5.4 million gallons per day (mgd). Instantaneous peak flows exceeding 20 mgd are not uncommon during storm events due to infiltration and inflow into the wastewater collection system, discussed further in subsection B 4.0. As the City grows to its build-out population outlined in the Land Use Element, the average dry-weather flow of wastewater is expected to reach 5.4 mgd. In 2018, design for the expansion of the Water Resource Recovery Facility to accommodate General Plan buildout is underway. When the WRRF is expanded in the future it will have a treatment capacity of 5.4 mgd.
B 2.1 Goal
Adequate wastewater collection and treatment service to meet the long-term needs of the City.
Chapter 8
B 2.2 Policies
B 2.2.1 Service Outside the City Limits
To receive City wastewater service, property must be annexed to the City. The City Council may authorize exceptions to this policy provided it is found to be consistent with the General Plan.
B 2.2.2 Service Capacity
The City's wastewater collection system and Water Resource Recovery Facility shall support population and related service demands consistent with the General Plan.
B 2.2.3 Wastewater Service for New Development
New development shall pay its proportionate or “fair share” of expanded treatment and collection system capacity and upgrades. New development will only be permitted if adequate capacity is available within the wastewater collection system and/or Water Resource Recovery Facility.
B 2.2.4 City as Exclusive Provider
The City will be the only provider of public wastewater treatment within the City (but on-site pretreatment of wastewater to meet City Standards may be required).
Water and Wastewater Element
Figure 3 Capacity Constrained Areas[delete and replace]
Chapter 8
Figure 3 Capacity Constrained Areas
B 2.3 Programs
B 2.3.1 Expand capacity in the City’s collection system and Water Resource Recovery Facility in support of projected wastewater flows.
B 2.3.2 Evaluate the potential for the wastewater flows of a proposed project to exceed the capacity of collection and treatment systems.
B 2.3.3 The City will conduct periodic updatesto its wastewater development impact fees.
Water and Wastewater Element
WASTEWATER TREATMENT
B 3.0 Background
The Water Resource Recovery Facility processes wastewater in accordance with standards set by the State's Regional Water Quality Control Board (RWQCB). The RWQCB issues a permit to the City under the National Pollutant Discharge Elimination System (NPDES), setting standards for the discharge of treated wastewater. The standards are to protect beneficial uses of the receiving water (San Luis Obispo Creek), including recreation, agricultural supply, and fish and wildlife habitat.
The Water Resource Recovery Facility removes solids, reduces the amount of nutrients, and eliminates bacteria in the treated wastewater, which is then discharged into San Luis Obispo Creek. Solids are separated and treated to create biosolids. Biosolids are beneficially reused as compost and/or soil amendment. As described in Section A
7.0, the Water Resource Recovery Facility has been producing tertiary-treated recycled water for delivery to water customers in the City since 2006.
The design phase for theA comprehensive upgrade of the Water Resource Recovery Facility is underway with completion of construction anticipated in 2022was completed in 2025. The upgrade increased average daily dry weather capacity at the facility to 5.4 mgd, and included, but was not limited to, expansion of an equalization basin that provides additional flood protection measures and operational flexibility, and construction of a new membrane and ultra-violet disinfection (MBR-UV) facility. The upgrade will also enable the City to consider potable reuse, part of a One Water concept, in the future.
B 3.1 Goals
B 3.1.1 Wastewater treatment that meets or exceeds regulatory requirements and ensures the protection of public health and the environment.
B 3.1.2 Maximize recycled water production.
B 3.2 Policies
B 3.2.1 Treating Wastewater
The City will treat all wastewater in compliance with approved discharge permits.
B 3.2.2 Recycled Water Production
The City will produce high-quality, dependable recycled water,suitable for a wide range of uses.
B 3.2.3 Beneficial Use
The City will pursue treatment and disposal methods which provide for further beneficial use of wastewater and biosolids.
B 3.3 Programs
B 3.3.1 Prepare and implement Water Resource Recovery Facility master plan consistent with regulatory requirements.
B 3.3.2 Work cooperatively on regional water quality issues.
Chapter 8
COLLECTION SYSTEM
B 4.0 Background
The first sanitary sewers were built in San Luis Obispo in the late 1800s. Today, portions of the collection system are over 100 years old. It includes nine lift stations, approximately 1385 miles of gravity sewer line, and three miles of force main. Approximately 2,9003,184 manholes provide access to the collection system. The sewer lines are made of a variety of materials, including ductile iron pipe, terra cotta salt-glazed pipe, vitrified clay pipe (VCP), polyvinyl chloride (PVC), high-density polyethylene (HDPE) and asbestos concrete.
The City’s wastewater collection system requires maintenance to ensure uninterrupted flows and minimize sanitary sewer overflows. Area and preventive maintenance programs are regularly evaluated to ensure their effectiveness. The City also utilizes video inspection to prioritize problem areas for replacement, maintenance, assess overall mainline conditions, conduct inflow and infiltration evaluations, and assess new construction.
The City issues discharge permits to and conducts inspections of facilities that have the potential to discharge pollutants in concentrations that could pose a threat to worker safety, the wastewater collection system, and/or the Water Resource Recovery Facility. Through its Pretreatment Program, the City also implements programs to target constituents of special concern.
Like most cities in California, San Luis Obispo has separate sewer and storm drain systems. This means each system of pipes in the ground is designed to accommodate either sewer or stormwater flows. One set of pipes takes sanitary waste to the Water Resource Recovery Facility while a second set carries stormwater runoff from street drains directly into bioswales, detention basins, or creeks.
The City’s wastewater collection system and the Water Resource Recovery Facility have long experienced problems associated with wet weather infiltration and inflow (I & I). Inflow is water that enters the collection system at points of direct connection (non-soil) such as around manhole covers or through illegal connection of roof drains, downspouts, or landscape drains. Infiltration is water that flows through the ground into the collection system usually through cracks in public sewer mains and/or private sewer laterals (See Figure 4). I & I overloads the collection system during heavy rains and can result in sanitary sewer overflows. During periods of significant rain events, the Water Resource Recovery Facility can become hydraulically overwhelmed (as mentioned previously, instantaneous peak flows exceeding 20 mgd are not uncommon during storm events), increasing the chance of effluent violations and the release of partially treated wastewater to San Luis Obispo Creek. Table 6 includes data on the highest average daily flows experienced at the Water Resource Recovery Facility during rain events over a nine-19-year period.
Water and Wastewater Element
Table 6. Highest Average Daily Flows to the Water Resource Recovery Facility, 2006 to 20172024
Average Daily Flows 1 Year
19.75 mgd 2006 (April)
7.24 mgd 2007(December)
9.83 mgd 2008 (January)
11.67 mgd 2009 (October)
13.51 mgd 2010 (December)
13.23 mgd 2011 (March
7.10 mgd 2012 (January)
5.17 mgd 2013 (January)
5.12 mgd 2014 (March)
5.24 mgd 2015 (February)
5.63 mgd 2016 (March)
9.00 mgd 2017 (February)
10.626 2018 (March)
10.19 2019 (March)
6.86 2020 (March)
11.18 2021 (January)
6.92 2022 (December)
172 2023 (January)
9.26 2024 (April)
Notes:
1. Instantaneous peak flows are higher.
August dry weather flow to the Water Resource Recovery Facility was 1.91 mgd in 2016 and 2.80 mgd in 2017.
Source: City of San Luis Obispo Utilities Department, 2018.
2. At the time of measurement, during the WRRF upgrade project, maximum measurement limit was 17 mgd.
Actual flows exceeded this amount.
Chapter 8
Figure 4 Inflow and Infiltration Illustrated
B 4.1 Goal
Collect and convey all wastewater under safe and sanitary conditionsto the Water Resource Recovery Facility.
B 4.2 Policies
B 4.2.1 Collection System Maintenance
The City will manage the collection system to ensure that the proper level of maintenance is provided and that the flow in sanitary sewers does not exceed design capacity.
B 4.2.2 Infiltration and Inflow
The City will minimize stormwater and groundwater infiltration and inflow into the sewer system.
B 4.3 Programs
B 4.3.1 Investigate and carry out cost-effective methods for reducing infiltration and inflow into the wastewater collection system.
B 4.3.2 Develop education and outreach materials to increase public awareness of problems associated with excessive infiltration and inflow (I & I) into the wastewater collection system and the City’s efforts to reduce I & I.
B 4.3.3 Support the retrofit of commercial and residential sewer laterals to reduce infiltration and inflow into the wastewater collection system.
B 4.3.4 Update the Sewer System Management Plan to maintain its applicability.
B 4.3.5 Maintain, and revise as necessary, master plans for the extension of wastewater services to developing areas of the City and to ensure orderly replacement of aged infrastructure.
Water and Wastewater Element
B 4.3.6 Review development proposals to ensure new development does not adversely impact existing infrastructure and that necessary infrastructure will be in place to support the development.
B 4.3.7 Provide a Pretreatment Program pursuant to the Clean Water Act to ensure that all discharge requirements are met.
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RESOLUTION NO. _____ (2025 SERIES)
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS
OBISPO, CALIFORNIA, AMENDING THE PRIVATE SEWER LATERAL
REPLACEMENT REBATE PROGRAM AND ESTABLISHING A PRIVATE
SEWER LATERAL INSPECTION REBATE PROGRAM
WHEREAS, the City must provide capacity assurance consistent with its adopted Sewer System Management Plan and Statewide General Waste Discharge Requirements; and
WHEREAS, the City completed a wastewater flow monitoring and inflow/ infiltration analysis in March 2024 that included sewer flow monitoring, rainfall monitoring, and inflow and infiltration analysis; and
WHEREAS, the City approved and filed the Wastewater Collection System Infrastructure Renewal Strategy on August 19, 2025, which identified areas with capacity constraints and surcharging in the wastewater collection system during peak wet weather events; and
WHEREAS, on December 2, 2025, the City amended its General Plan, Water and Wastewater Management Element by incorporating an updated map of wastewater collection system areas with capacity constraints during peak wet weather events; and
WHEREAS, the City has experienced sewer overflows, which have been identified as a threat to public health and water quality because of the pathogens, pollutants, and nutrients they contain, which have been a focus of State Water Quality Regulators over the past several years; and
WHEREAS, the City owns, operates, and maintains a sewer conveyance system with over 145 miles of pipeline and provides wastewater collection services to properties within the City limits, as well as to Cal Poly and the San Luis Obispo County Airport; and
WHEREAS, a system of approximately 13,421 private sewer laterals, estimated to equal an additional 165 miles of pipeline, is owned and maintained by property owners; and
WHEREAS, private sewer laterals contribute significant inflow and infiltration, contributing to capacity constraints, surcharging, and overflows in the wastewater collection system during peak wet weather events; and WHEREAS, the City would like to encourage the timely inspection and replacement of private sewer laterals to decrease inflow and infiltration and to improve capacity constraints, surcharging, and overflows in the wastewater
Resolution No. _____ (2025 Series) Page 2
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collection system during peak wet weather events; and
WHEREAS, the City's Private Sewer Lateral Replacement Rebate Program was created on August 19, 2019, to accelerate the replacement of aging private infrastructure that impacts public infrastructure; and
WHEREAS, the amendment of the Private Sewer Lateral Replacement Rebate Program will provide funding assistance to additional property owners for their private sewer lateral replacement; and
WHEREAS, the establishment of the Private Sewer Lateral Inspection Rebate Program will provide funding assistance to property owners for their private sewer lateral inspection to accelerate replacement of aging private infrastructure that impacts public infrastructure; and
WHEREAS, funding for the Private Sewer Lateral Inspection and Replacement Rebate Programs is identified in the City's Capital Improvement Program and provided by the City's Sewer Fund.
NOW, THEREFORE, BE IT RESOLVED by the Council of the City of San Luis Obispo as follows:
SECTION 1. The City Council hereby amends the Private Sewer Lateral Replacement Rebate Program using funding from the Sewer Fund and authorizes the Utilities Director to implement the program as follows:
a) The sewer lateral replacement must be permitted through the City of San Luis Obispo Community Development Department.
b) The Private Sewer Lateral Replacement Rebate Program only applies to those sewer laterals that are replaced in their entirety from the structure up to and including connection with the City main; spot repairs and partial repairs are not included in this program.
c) Verification of installation, inspection, and approval of completed work by the City is required.
d) For property owners of single-family residences citywide, and property owners of multi-family and commercial properties located within capacity-constrained areas of the wastewater collection system, the Private Sewer Lateral Replacement Rebate will be a maximum of $4,000, which may not exceed the cost of the project. All rebates are subject to available funding.
e) The property owner must submit a dated, detailed sales receipt for proof of purchase with the Private Sewer Lateral Replacement Rebate Application. The purchase of the private sewer lateral replacement must be clearly itemized on an invoice. A copy of the property owner's W9
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must be submitted with the application.
f) The Private Sewer Lateral Replacement Rebate may take six weeks or more from the date the rebate application is filed.
g) Private Sewer Lateral Replacement Rebates will only be provided to the property owner.
h) Only one Private Sewer Lateral Replacement Rebate will be provided over the lifetime of the property.
i) The Private Sewer Lateral Replacement Rebate Program is only in effect when funds are allocated for that purpose within a given budget year.
Sewer Lateral Replacement Rebates will be available on a first-come, first-served basis from the date of application until the funds are expended. If funding runs out during the fiscal year, an applicant may be required to wait for a future year of rebate funding.
j) Private Sewer Lateral Replacement Rebates may not be available to property owners to replace their private sewer lateral as part of a Notice to Correct condition. This allowance will be applied at the discretion of the Utilities Director based on previous enforcement compliance history.
I) As an incentive to replace private sewer laterals and reduce inflow and infiltration, the collected city fee for sewer wye installations will be refunded for all qualifying rebate applications.
SECTION 2. The City Council hereby establishes the Private Sewer Lateral Inspection Rebate Program using funding from the Sewer Fund and authorizes the Utilities Director to implement the program as follows:
a) The private sewer lateral inspection must be submitted in digital format and in color (black and white or otherwise unclear video will not be accepted).
b) The private sewer lateral inspection must show the address of the lateral and the date the video was taken, with a running footage or time marker clearly visible on the screen.
c) The private sewer lateral inspection must include footage and review of the entire lateral from the building connection to the city-owned sewer main.
d) Where joints are present, the inspection activity must briefly stop the camera at each to clearly identify their integrity.
e) Verification and review of the inspection by the City is required to process the Private Sewer Lateral Inspection Rebate.
f) For property owners located within capacity-constrained areas of the wastewater collection system, the Private Sewer Lateral Inspection
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Rebate will be a maximum of $350, which may not exceed the cost of the project. If the inspection cost is less than $350, the maximum rebate award shall be 100 percent of the inspection cost. All rebates are subject to available funding.
g) The property owner must submit a dated, detailed sales receipt for proof of the inspection activity with the Private Sewer Lateral Inspection Rebate Application. The purchase of the private sewer lateral inspection must be clearly itemized on an invoice. A copy of the property owner's W9 must be submitted with the application.
h) The Private Sewer Lateral Inspection Rebate may take six weeks or more from the date the rebate application is filed.
i) Private Sewer Lateral Inspection Rebates will only be provided to the property owner.
j) Only one Private Sewer Lateral Inspection Rebate will be provided over the lifetime of the property.
k) The Private Sewer Lateral Inspection Rebate Program is only in effect when funds are allocated for that purpose within a given budget year.
Sewer Lateral Inspection Rebates will be available on a first-come, firstserved basis from the date of application until the funds are expended.
If funding runs out during the fiscal year, an applicant may be required to wait for a future year of rebate funding.
l) Private Sewer Lateral Inspection Rebates may not be available to property owners to inspect their private sewer lateral as part of a Notice to Correct condition. This allowance will be applied at the discretion of the Utilities Director based on previous enforcement compliance history. m) Private Sewer Lateral Inspection Rebates are available to property owners to inspect their private sewer lateral as part of an Inspection Upon Sale requirement for those properties located within a capacityconstrained area.
SECTION 3. California Environmental Quality Act. The Rebate Programs are categorically exempt from the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Sections 15307 (Actions by Regulatory Agencies for Protection of Natural Resources) and 15308 (Actions by Regulatory Agencies for the Protection of the Environment) because the intent of the Programs is to incentivize and further implementation of programs that address wastewater collections system capacity-related issues and would have a beneficial impact on the environment by increasing data collection related private infrastructure affecting the City’s sewer system, and reducing the potential for I&I and overflows due to reduced flows from groundwater and stormwater.
SECTION 4. The City Council hereby declares a primary public purpose in the expenditure of public funds to benefit private interests, as failing private sewer laterals
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contribute excess water to the public wastewater collection system and Water Resource Recovery Facility, and potentially cause or contribute to the overloading of the City's (public) system. The inflow and infiltration from laterals can lead to sanitary sewer overflows, resulting in damage to surrounding properties, public health risks, and environmental degradation.
SECTION 5. Resolution Number 11517 (2024 Series) is hereby amended and superseded to the extent inconsistent herewith.
Upon motion of Council Member ___________, seconded by Council Member ___________, and on the following roll call vote:
AYES:
NOES:
ABSENT:
The foregoing resolution was adopted this _____ day of _______________ 2025. ___________________________
Mayor Erica A. Stewart
ATTEST:
______________________
Teresa Purrington
City Clerk
APPROVED AS TO FORM:
______________________
J. Christine Dietrick
City Attorney
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of San Luis Obispo, California, on ______________________. ___________________________
Teresa Purrington
City Clerk
Item 6c
Department: Community Development
Cost Center: 4003
For Agenda of: 12/2/2025
Placement: Public Hearing
Estimated Time: 15 Minutes
FROM: Timmi Tway, Community Development Director
Prepared By: Gabriel Munoz-Morris, Supervising Civil Engineer SUBJECT: ABANDONMENT OF A PORTION OF CHURCH STREET RIGHT-OF-WAY AT 1804 OSOS STREET
RECOMMENDATION
1. Conduct a public hearing pursuant to California Streets and Highways Code (CSHC) § 8320 et seq.
2. Adopt a Draft Resolution entitled, “A Resolution of the City Council of the City of San Luis Obispo, California, abandoning a 6-foot-wide portion of Church Street public right-of-way adjacent to 1804 Osos Street” and authorize recordation once conditions of abandonment have been met.
POLICY CONTEXT
The abandonment of public right-of-way is required to be considered and approved by the City Council following a public hearing pursuant to California Streets and Highways Code (CSHC) § 8320 et seq.
1 DISCUSSION
Background
On April 21, 2009, the City Council approved a vesting tentative map for Parcel Map SLO 07 0094 (TR 45-07) located at 1804 Osos Street and adopted Resolution No. 10074 (2009 Series) stating the City’s intent to abandon a portion of Church Street right-of-way to facilitate infill development of the site (Attachment C – Vicinity Map). The approved tentative map and the project’s Architectural Review Commission Approval ARC 45-07 dated January 26, 2009, both show the abandoned right-of-way being incorporated into the proposed development to allow for an enlarged sidewalk to allow for sidewalk dining and expanded building footprints.
The portion of Church Street to be abandoned currently includes a public sidewalk. The subdividers of Parcel Map SLO 07 0094 will eventually be relocating the sidewalk so it is entirely within the remaining public right-of-way. Until such time as the sidewalk is relocated, a temporary public pedestrian easement will be required.
Prior to Council approval, on February 25, 2009, the Planning Commission approved
1 This abandonment is not eligible for summary vacation under the procedures of Streets & Highways Code §8330-8336, so a public hearing is required.
Item 6c
Resolution No. 5518-09 (Attachment D) finding that the proposed abandonment of a portion of Church Street was consistent with the General Plan. The findings of the Planning Commission regarding the proposed abandonment remain valid and accurate, including that the proposed area for abandonment is not needed for present or future public purposes.
After the April 21, 2009, City Council action to adopt Resolution No. 10074 (2009 Series) stating the City’s intent to abandon the portion of Church Street right-of-way, a public hearing was scheduled for June 2, 2009, to finalize the abandonment of the portion of right-of-way. That public hearing was postponed so that the City and applicant could finalize the abandonment of the portion of right-of-way concurrently with an associated real property transfer on Railroad Avenue, which was also associated with the development. A public hearing was then scheduled for January 20, 2015, to finalize the abandonment of the portion of right-of-way and approve the real property exchange agreement. Ultimately, the property exchange agreement was approved at that meeting via City Council’s adoption of Resolution No. 10592 (2015 Series), but the public hearing for the abandonment of the portion of right-of-way was postponed.
In anticipation of the public hearing on January 20, 2015, required notifications were sent to the affected utility companies regarding the proposed abandonment. All of the utility companies responded that they had no facilities within the area to be abandoned. In addition, required public notices and postings were completed pursuant to the requirements of the California Streets and Highways Code Sections 8320 to 8325 for General Vacation procedures.
Item 6c
In order to finalize the Real Property Exchange Agreement (Attachment E), the City required that the developer also execute an Environmental Indemnity Agreement (Attachment F) that protects the City from any liability due to the condition of the property being transferred. In order to finalize the Real Property Exchange Agreement (Attachment E), the City required that the Developer also execute an Environmental Indemnity Agreement (Attachment F) that protects the City from any liability due to the condition of the property being transferred. The Developer’s original lender was not willing to sign the Environmental Indemnity Agreement so the document was never executed and the property transfer did not occur in 2015. The Developer now has a new lender that is willing to sign the Environmental Indemnity Agreement. Additionally, the Developer recently completed patio improvements in the area that will be transferred via the Real Property Exchange Agreement that serve a new business in the first story of one of the buildings.
In order to support the patio for the business, and complete the execution of the Real Property Exchange Agreement, the Developer requested an administrative update to the Real Property Exchange Agreement and associated Environmental Indemnity Agreement for execution. While updating the Real Property Exchange Agreement and Environmental Indemnity Agreement, staff discovered that the abandonment of the 6-foot-wide portion of Church Street was never finalized via adoption by the City Council of a Resolution of Abandonment, and recordation of that Resolution. This abandonment by the City is required to facilitate the Real Property Exchange Agreement.
Staff confirmed that the prior actions by the Planning Commission and City Council in 2009 to begin this right-of-way abandonment (including adoption of the Resolution of intention to abandon) remain valid, and the abandonment may continue at this time per the requirements for right-of-way abandonments of the California Streets and Highways Code. Required notifications were sent to the affected utility companies regarding the proposed abandonment again in August 2025, and all affected utility companies confirmed that they did not have any facilities that would be affected by the proposed abandonment. Required notifications were sent to the affected utility companies regarding the proposed abandonment again in August2025, and all affected utility companies confirmed that they did not have any facilities that would be affected by the proposed abandonment. In addition, required public notices and postings were once again completed pursuant to the requirements of the California Streets and Highways Code Sections 8320-8325 for General Vacation procedures.
Approving the Abandonment of a Portion of the Church Street Right-of-Way The draft resolution approving the final abandonment (Attachments A & B) defines the area of Church Street to be abandoned. The Streets and Highways Code requires that the resolution be recorded once all conditions of the abandonment have been met, thereby acknowledging that the vacation is complete. The draft resolution includes a condition that a temporary pedestrian easement for the sidewalk be recorded concurrently with the vacation. The draft resolution also authorizes the Mayor to accept this dedication.
Item 6c
Abandonment Benefit to Owner and City
In some circumstances where street right-of-way is proposed for abandonment, the additional property has value to the adjacent landowner. In this case, the abandonment is part of a beneficial transaction to both the property owner and the City with the subdividers of Parcel Map SLO 07-0094 to provide infill development and to complete parking reconfiguration, accessible path of travel upgrades, sidewalk improvements, landscaping and irrigation, signing and striping, and drainage improvements outlined in the Real Property Exchange Agreement, which was previously approved by City Council on January 20, 2015. The City is not required to demand payment in exchange for the abandonment and is not doing so in this case.
Previous Council or Advisory Body Action
On April 21, 2009, the City Council adopted Resolution No. 10074 (2009 Series) stating the City’s intent to abandon the portion of Church Street right-of-way. On January 20, 2015, the City Council adopted Resolution No. 10592 (2015 Series) approving the Real Property Exchange Agreement and Environmental Indemnity Agreement.
Public Engagement
California Streets and Highways Code Section 8322 requires a legal ad be published in the newspaper for at least two successive weeks prior to the public hearing. In addition, Section 8323 requires that three notices be placed at the site at least two weeks prior to the public hearing giving notice of the proposed abandonment. The notices must not be more than 300-feet apart. The legal ad and notices at the site were all completed ahead of this public hearing. In addition, Section 8324 requires that the City Council must allow for public comment by interested parties at the public hearing.
CONCURRENCE
The Public Works Department concurs with the recommended action. The City Attorney’s office has reviewed and approved as to the form the Real Property Exchange Agreement and the Environmental Indemnity Agreement.
ENVIRONMENTAL REVIEW
The proposed vacation of the 6-foot-wide portion of Church Street right-of-way is exempt from environmental review under the California Environmental Quality Act (CEQA) pursuant to Class 1 (Existing Facilities) exemption (§15301), as it involves a minor rightof-way abandonment with no significant impact on land use or the environment. The abandonment will not affect public access, or circulation. The abandonment is consistent with the General Plan.
Item 6c
FISCAL IMPACT
Budgeted: No Budget Year: N/A
Funding Identified: No
Fiscal Analysis:
Funding
Sources
Total Budget
Available
Current
Funding
Request
Remaining
Balance
Annual
Ongoing
Cost
General Fund $N/A $ $ $
State
Federal
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Total N/A $ $ $
There is no cost to the City associated with this proposed abandonment. Once the sidewalk is relocated, City street maintenance responsibilities for the abandoned portion will be eliminated, which will lower maintenance costs on Church Street.
In addition, while the City does not pay property taxes for the land as a public agency, the additional square footage that would be added to each of the adjacent properties would be assessed by the County Assessor’s Office once the abandonment is complete and could result in higher property taxes for each property owner.
ALTERNATIVES
Deny the proposed abandonment. If City Council denies the approval of the proposed abandonment, the project as proposed by the subdividers of Parcel map 07-0094 could not be built in its approved configuration. This would be in conflict with the discretionary approvals already granted to the subdividers by the City. The City would retain ongoing maintenance responsibilities for the area that does not serve a public purpose.
Continue the item to a future meeting. The City Council could continue this item to a future meeting and request more information of staff prior to approving the abandonment.
ATTACHMENTS
A - Draft Resolution abandoning a 6-foot-wide portion of Church Street public right-of-way adjacent to 1804 Osos Street
B - Exhibits A and B to the Draft Resolution
C - Vicinity Map
D - Planning Commission Resolution No. 5518-09
E - Real Property Exchange Agreement
F - Environmental Indemnity Agreement
R 11561
RESOLUTION NO. _______ (2025 SERIES)
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS OBISPO, CALIFORNIA, ABANDONING A 6-FOOT-WIDE PORTION OF CHURCH STREET PUBLIC RIGHT-OF-WAY ADJACENT TO 1804 OSOS STREET.
WHEREAS, Church Street is a 60-foot-wide public Right-of-Way between Osos Street and its northerly terminus; and
WHEREAS, at a regular meeting of the Planning Commission of the City of San Luis Obispo conducted on February 25, 2009, the Planning Commission adopted Resolution 5518-09 recommending abandonment of a 6-foot-wide portion of the Church Street right-of-way and finding that the proposed abandonment is consistent with the General Plan; and
WHEREAS, at a regular meeting of the City Council of the City of San Luis Obispo conducted on April 21, 2009, the City Council adopted Resolution 10074 (2009 Series) indicating the City’s intent to abandon a 6-foot-wide portion of the Church Street right-ofway; and WHEREAS, the public hearing for the City Council to finalize the abandonment of the 6-foot-wide portion of the Church Street right-of-way was agendized for June 2, 2009; and
WHEREAS, the June 2, 2009 public hearing for the City Council to finalize the abandonment of the 6-foot-wide portion of the Church Street right-of-way was postponed; and
WHEREAS, a public hearing was scheduled for the City Council to finalize the abandonment of the 6-foot-wide portion of Church Street right-of-way was agendized for January 20, 2015; and
WHEREAS, the January 20, 2015 public hearing for the City Council to finalize the abandonment of the 6-foot-wide portion of the Church Street right-of-way was postponed; and
WHEREAS, the proposed abandonment of the 6-foot-wide portion of the Church Street right-of-way must be finalized in order to complete the conditions of approval for the approved development project at 1804 and 1814 Osos Street and finalize a real property exchange agreement between the City and the developer of 1000 Railroad Avenue; and
WHEREAS, City staff have confirmed that prior action by the Planning Commission and City Council associated with the abandonment of this 6-foot-wide portion of the Church Street right-of-way remain valid, and the abandonment process may be
Resolution No. ______ (2025 Series) Page 2
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continued at this time per the requirements of the California Streets and Highways Code; and
WHEREAS, City staff have confirmed that no City utility facilities currently exist within the 6-foot-wide portion of the Church Street right-of-way; and WHEREAS, City staff notified all public utility companies of the proposed abandonment and no utility company has facilities that would be affected by the proposed abandonment; and
WHEREAS, an existing public sidewalk will temporarily remain within the area of the proposed abandonment until such time as it is relocated by the developer of Parcel Map SLO 07-0094 at 1804 Osos Street; and
WHEREAS, all public notices have been provided as required by applicable law, including California Streets & Highways Code §8320 et seq.
NOW, THEREFORE, BE IT RESOLVED by the Council of the City of San Luis Obispo that:
SECTION 1. Findings. Based upon all evidence, the City Council makes the following findings:
1. The recitals stated above are found to be true and incorporated herein as findings of the City Council.
2. The proposed right-of-way abandonment is in conformity with the City's General Plan and any applicable Specific Plans or Zoning Regulations. The proposed abandonment does not conflict with long-term land use, circulation, or infrastructure plans, and the street is not identified as a key access route or planned improvement area.
3. The proposed right-of-way abandonment is not presently or prospectively required for public use or vehicular or pedestrian access. Based on a review of the City's traffic circulation plans, public infrastructure needs, and adjacent property access, it has been determined that the right-of-way serves no essential function in the City’s transportation network.
4. The proposed right-of-way abandonment will not negatively impact public interest or safety, including emergency vehicle access, utilities, or other critical public services.
5. Utility companies with easement rights in the area have been provided notice of the proposed abandonment and have confirmed that the abandonment will not impact any existing utility infrastructure.
Resolution No. ______ (2025 Series) Page 3
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6. The abandonment of the 6-foot-wide portion of the Church Street right-of-way is made pursuant to Sections 8320 et seq. of the California Streets and Highways Code.
SECTION 2. Environmental Determination. The proposed vacation of the 6-footwide portion of the Church Street right-of-way is exempt from environmental review under the California Environmental Quality Act (CEQA) pursuant to Class 1 (Existing Facilities) exemption (§15301), as it involves a minor right-of-way abandonment with no significant impact on land use or the environment. The abandonment will not affect public access, or circulation. The abandonment is consistent with the General Plan.
SECTION 3. Action. The City Council adopts a Resolution of Abandonment of a 6-foot-wide portion of the Church Street public right of way adjacent to 1804 Osos Street, as more accurately described in Exhibit A and depicted in Exhibit B, attached hereto, pursuant to Chapter 4, Part 3 of Division 9 of the California Streets and Highways Code subject to the following conditions:
1. A temporary public pedestrian easement for the existing public sidewalk within the area of Church Street to be abandoned shall be dedicated by the adjacent property owners. Said offer of dedication shall record concurrently with this resolution. The Mayor is authorized to accept this offer of dedication.
2. All required pictorial exhibits and/or legal descriptions necessary to complete the abandonment process shall be provided by the project applicant to the satisfaction of the Public Works Director. All exhibits and/or legal descriptions shall be prepared by a Licensed Land Surveyor or Civil Engineer who is authorized to practice Land Surveying, in accordance with the California Business and Professions Code Section 8700 et seq.
3. The abandonment results in additional property to be deeded back to adjacent contiguous properties but does not constitute creation of a new parcel or lot.
SECTION 4. Recordation. The city clerk shall cause a certified copy of this Resolution to be recorded with the Office of the County Clerk-Recorder upon completion of the above-stated conditions to the satisfaction of the Public Works Director.
Upon motion of ______, seconded by Council Member _____, and on the following roll call vote:
AYES:
NOES:
ABSENT:
The foregoing resolution was adopted this __
th day of MONTH 2025.
Resolution No. ______ (2025 Series) Page 4
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___________________________
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
ATTACHMENT B - VICINITY MAP
Area of proposed
abandonment
Parcel Map 07-0094
Site
Attachment 3
Attachment 3
Attachment 3
Attachment 3
Attachment 3
Attachment 3
Attachment 3
Attachment 3
Attachment 3
Attachment 3