San Luis Obispo City Council
January 20, 2026

City Council
AGENDA

Tuesday, January 20, 2026, 5:30 p.m.

Council Chambers, 990 Palm Street, San Luis Obispo

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

INSTRUCTIONS FOR PUBLIC COMMENT:

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

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

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

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

Public Comment during the meeting:

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

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

Pages

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

1.a CONFERENCE WITH LEGAL COUNCIL - EXISTING LITIGATION Pursuant to paragraph (1) of subdivision (d) of California Government Code Section 54956.9.

Name of case: Randall Arseneau v. City of San Luis Obispo, San Luis Obispo Superior Court Case No. 22CV-0121

1.b ADJOURNMENT
The City Council will hold a Regular Meeting on January 20, 2026 at 5:30 PM in the Council Chambers at City Hall, 990 Palm Street, San Luis Obispo.

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

3. PLEDGE OF ALLEGIANCE
Mayor Erica A. Stewart will lead the Council in the Pledge of Allegiance.

4. PRESENTATIONS

4.a CITYWIDE SINGLE VOTE TRANSITION - COMMUNICATIONS AND

OUTREACH PLAN
9 Presentation on the communications and outreach strategy to educate the community about election changes related to the Citywide Single Vote System, effective November 2026.

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

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

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

Recommendation:

To approve Consent Calendar Items 5a to 5d.

6.a WAIVE READING IN FULL OF ALL RESOLUTIONS AND

ORDINANCES
Recommendation:

Waive reading of all resolutions and ordinances as appropriate.

6.b MINUTES REVIEW - JANUARY 13, 2026 COUNCIL MINUTES 45 Recommendation:

Approve the minutes of the City Council meeting held on January 13, 2026.

6.c AUTHORIZATION TO APPLY FOR THE 2025 COMMUNITY

CHAMPIONS PLAYGROUND GRANT
55 Recommendation:

Adopt a Draft Resolution affirming the submittal of a Community Champions Playground Grant application (Attachment A)
requesting an award of grant funds toward the purchase of a new playground system for the Vista Lago Park, from
GameTime, a PlayCore Company (GameTime); and

1. Authorize the Assistant City Manager to execute the necessary grant documents and appropriate the grant amount into the Vista Lago Playground Replacement project (CIP No. 2000033- 02) budget to support the replacement of the playground equipment upon grant award.

2. 6.d FINAL ADOPTION OF ORDINANCE NO 1754 (2026 SERIES)

IMPLEMENTING CITYWIDE SINGLE VOTE FOR CITY COUNCIL

ELECTIONS
83 Recommendation:

Adopt Ordinance No. 1754 (2026 Series) adding Chapter 2.38, entitled “Citywide Single Vote Method of Electing City Councilmembers” to the San Luis Obispo Municipal Code, implementing a new method for elections of City Councilmembers and adopting regulations providing for the administration of City Council elections by Citywide Single Vote beginning in November 2026.

7. PUBLIC HEARING AND BUSINESS ITEMS

7.a 2025 STATE LEGISLATIVE BRIEFING (25 MINUTES) 93
Recommendation:

Receive and file a report on the 2025 State Legislative Briefing which summarizes the adopted laws from the 2025 regular session of the California State Legislature (December 2024 through October 2025); and

1. Consider appointing an ad-hoc committee of the City Council to review the current legislative platform and suggest changes for the 2026 legislative session.

2. 7.b CONSIDER INVITATION TO JOIN LETTER FROM THE COUNTY OF

SAN LUIS OBISPO REQUESTING STATE LEGISLATION RELATED
TO DIABLO CANYON POWER PLANT (20 MINUTES)
109
Recommendation:

Receive the County of San Luis Obispo’s invitation to join a request for State legislation related to the Diablo Canyon Power Plant and provide direction to staff regarding participation in the letter drafted by the County.

7.c SAN LUIS OBISPO COUNCIL OF GOVERNMENTS PRESENTATION ON LOCAL ROADS FIRST PROPOSED BALLOT MEASURE– DRAFT
TRANSPORTATION EXPENDITURE PLAN (30 MINUTES)
119
Recommendation:

Receive and comment on a report and presentation by the San Luis Obispo Council of Governments (SLOCOG) staff regarding a potential Countywide Self-Help Sales Tax Measure and Draft Transportation Expenditure Plan.

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

9. ADJOURNMENT
The next Regular Meeting of the City Council will be held on February 3, 2026 at 5:30 p.m. in the Council Chambers at City Hall, 990 Palm Street, San Luis Obispo.

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

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

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

City of San Luis Obispo, Council Memorandum
City of San Luis Obispo
Council Agenda Correspondence
DATE: January 16, 2026
TO: Mayor and Council
FROM: Greg Hermann, Deputy City Manager
Prepared By: Natalie Harnett, Policy and Project Manager Whit Szentesi, Public Communications Manager
VIA: Whitney McDonald, City Manager
SUBJECT: ITEM 3.a - CITYWIDE SINGLE VOTE TRANSITION - COMMUNICATIONS

AND OUTREACH PLAN
Attached please find the final draft Communication and Outreach Plan for the transition to Citywide Single Vote for Council Members for the 2026 election. The plan will be finalized and posted on the City’s website after feedback from the City Council at the January 20th meeting.

CITYWIDE SINGLE VOTE

FOR CITY COUNCIL

COMMUNICATIONS PLAN

Last updated: Jan. 8, 2026

1 Table of Contents
Executive Summary................................................................................................... 2 Developing the Communications Plan .................................................................... 3 External Audiences ................................................................................................... 4 Branding Assets and Messaging ............................................................................. 5 Community Engagement Framework ...................................................................... 6 Outreach Budget...................................................................................................... 19 Appendix .................................................................................................................. 20

2 Executive Summary
In November 2024, the San Luis Obispo City Council approved the transition to Citywide Single Vote for the election of City Council Members. This change, adopted as part of a settlement agreement related to the California Voting Rights Act, keeps the current at-large election system while advancing equity and protecting against vote dilution in local elections. Under the new system, voters will cast one vote to elect a City Council candidate, even though two open seats are up for election every two years. The two candidates who receive the highest number of votes Citywide will be elected to the available seats.

The City engaged Tripepi Smith in July 2025 to develop a comprehensive communications plan to educate the community about the City’s transition to a Citywide Single Vote for Council and ensure voters are well-informed ahead of the 2026 General Election.

The primary goals of this communications plan are to

1. Clearly inform residents about the change

2. Encourage voter registration

3. Provide clear direction on how to vote to prevent invalid ballots

4. Support voter turnout that meets or surpasses previous election levels Tripepi Smith worked closely with the City Council and City staff to develop a plan that reaches all eligible voters. The strategy incorporates feedback from Council, staff, and the community, and outlines the key outreach and engagement tactics that will be used throughout the initiative.

3 Developing the Communications Plan
The City of San Luis Obispo began working with Tripepi Smith, a nationally recognized marketing, technology, and public affairs consulting firm, in the summer of 2025 to develop a comprehensive communications plan to support the transition to a Citywide Single Vote for City Council.

To inform the plan, extensive information and feedback were gathered over several months. Tripepi Smith reviewed public records from prior City Council discussions, including materials related to the pre-litigation settlement of the California Voting Rights Act demand from the Southwest Voter Registration Education Project (SVREP). The consultant also conducted virtual interviews with City Council members and key City staff across leadership, legal, elections, communications, and diversity, equity, and inclusion roles.

City staff additionally met with the San Luis Obispo County Clerk-Recorder’s Office to gain regional expertise on voter education, outreach best practices, and key considerations from elections professionals. The City will continue to work closely with the Clerk-Recorder’s Office, which serves as the community’s Elections Office and a primary resource for voters.

To further guide outreach efforts, the City conducted a community survey to better understand voting habits, preferred communication channels, and awareness of the upcoming change. Survey results indicate that many residents are not yet aware of the transition or how the new voting system will work, and that voters want clear, simple, and easy-to-understand information. The findings also highlight the need for tailored outreach strategies, including culturally responsive, in-language engagement for Spanish-speaking and bilingual residents, and plain-language explanations, visuals, and printed materials. The full survey analysis can be found in Appendix 2.

City staff also shared an outline of the communications plan with the Human Relations Commission and incorporated feedback on messaging and audience engagement.

All feedback gathered through this process has been integrated into the final communications plan to ensure it reflects community needs, best practices, and the City’s internal capacity.

4 External Audiences
San Luis Obispo Demographics Overview
This information was sourced from the City’s website and the 2020 Census.

Category Details
City Size Approximately 13.47 square miles
Population 47,757
Median Age 30
Age Distribution 0-19: 22.2%
20-39: 38.5%
40-59: 17.5%
60-79: 17%
80 and older: 4.5%
Race and Ethnicity White (non-Hispanic): 66%
Hispanic: 23%
Asian: 6%
Black: 1%
Multiracial: 3%
Multilingual Households 17% speak languages other than English Of the 17%, approximately 11% speak Spanish
Eligible Voters (Citizen Voting Age
Population)
41,275
Registered Voters 29,505
Historical Average Voter Turnout of
Registered Voters
Presidential Election Turnout (2024, 2020,
2016): 85.25%
Midterm Election Turnout (2022, 2018, 2014):

63.70%
Target Audience & Community Partners
To enhance voter participation and education about the Citywide Single Vote for Council, the City intends to reach all registered voters and eligible unregistered voters.

In addition, the City will execute targeted outreach to historically marginalized and traditionally hard-to-reach groups to increase voter registration and understanding.

The City plans to collaborate with several local neighborhood and community groups, pending their agreement, including but not limited to:
• English as a second language (ESL) groups
• Latine organizations
• Local business owners and employees

5 • HOAs
• Renter groups
• High school seniors
• School Districts and Parent associations and groups
• Cal Poly & Cuesta College
• Community and civic organizations (list included in Appendix 3) • Faith-based organizations (list included in Appendix 3) • City’s media list
Branding Assets and Messaging
On-Brand Graphic and Visuals
To differentiate from other City outreach and garner widespread community participation, the City of SLO will develop distinct branding for the Citywide Single Vote for Council initiative. A unified visual identity will reinforce the initiative’s credibility; it makes communication clearer and more accessible, helps the initiative stand out against the City’s broader communications, and ensures a cohesive experience across platforms, whether someone sees a social media post, flyer, or sign in the community.

The new on-brand graphic will include the City’s color palette and a tagline specific to the outreach efforts for this initiative. These items should be used on all communications related to the Citywide Single Vote for Council to consistently highlight the importance of this process.

Key Messages
It is important for voters to understand why this single vote carries more impact than their two votes did before, or than by-district voting would as an alternative. To help voters understand this impact, the following key messages and talking points should be used throughout this voter education campaign:

1. You get to vote in every election and put all your support behind your preferred candidate.
• In the previous City Council elections, voters could cast votes for two candidates. Often, voters only selected one candidate. In by-district elections (an alternative not in effect in San Luis Obispo), voters would only get to participate in elections for City Council Members every other year. They would only be allowed to vote for a candidate who lives in their district, even if they prefer a candidate in another district. • With Citywide Single Vote for Council, all voters will continue participating in every election and may select any candidate they believe best represents their priorities, regardless of where in the City the voter or their preferred candidate lives.

2. Your single vote carries more weight because every candidate must earn focused support.
• With only one vote, no singular group can boost multiple preferred candidates at once.
• Candidates are also less able to rely on second-choice votes.

6 • This can create more space for new voices and candidates to gain meaningful support.
• This can help create opportunity for candidates who might not have had the same opportunity in a system where one larger group can vote for multiple people.

3. Smaller or minority communities or coalitions of smaller groups with shared priorities can unite to more effectively support a single candidate. • With only one vote, communities with shared priorities often build broader coalitions so they can unite support for a candidate across different groups.
• This can help connect communities or neighborhoods that may not have previously collaborated, fostering relationships that extend beyond an election cycle.
• This allows for more collaboration and coalition-building to make a real difference in who wins the election.

Community Engagement Framework
Communications Goals

1. Clearly inform residents about the change

2. Encourage voter registration

3. Provide clear direction on how to vote to prevent invalid ballots

4. Support voter turnout that meets or surpasses previous election levels Measures of Success
These key performance indicators were formulated based on data from the community survey and the County of San Luis Obispo Registrar of Voters reported election results from the 2022, 2018, and 2014 midterm elections.

1. Meet or exceed the number of registered voters in 2026 and future elections.

2. Meet or decrease number of overvotes from 0.15% in 2026 and future elections.

3. Meet or exceed average voter turnout levels of 64% in 2026 and future elections.

Outreach Strategy
The City will implement a three-phase, multimedia, and bilingual outreach strategy to educate residents about the new Citywide Single Vote for Council, encourage voter registration, reduce ballot errors, and support voter participation in the 2026 General Election.

The approach uses a wide mix of communication tools, which includes community meetings, a dedicated website landing page, printed and mailed materials, videos, social media, paid advertising, media outreach, and in-person engagement at events and neighborhoods. These tools will be designed to ensure residents receive clear, consistent information.

7 Outreach will be conducted in both English and Spanish, with interpretation and culturally responsive engagement provided throughout. The City will remain adaptable and will meet regularly with a community working group to gather feedback and refine messaging as the voter engagement campaign progresses.

Regular, Recurring Monthly Outreach Tactics
The City will use the following channels to maintain consistent updates and ensure residents receive regular information about the change to the Citywide Single Vote for Council and the 2026 General Election.

Outreach Tactic Details
Social media • 2-4 posts, stories, or reels per month
Emails • 1 dedicated email per month, incorporated into regular newsletters
• The City will work directly with the County ClerkRecorder’s Office and non-partisan groups to get emails out to voters.

Monthly community working
group meetings
• This group will be composed of specific stakeholders
among the City’s target audiences. The goal is to gather ongoing feedback and suggestions on messaging and
ensure the City’s outreach is impactful.
• The group should consist of no more than 15
volunteers.
• The City may provide meals during meetings.

Pop-up tables at regular City
events
• The City will identify which events to attend and
whether partner agencies are able to support.
• The City may tap volunteer photographers to take
pictures of these events for social media and promotion. • Event opportunities are listed in Appendix 1.

Monthly media engagement
pitches, news releases or
interviews
• The City will connect with media outlets to earn
coverage about this change.

Community
organization/neighborhood
pop-up meetings
• Collaborate with local groups to share information about the effort at their regular meetings or related events. At least two meetings per month is ideal.
o Please view Appendix 3 for a list of possible
organizations.
• Host neighborhood pop-up tents and tables in hightraffic locations to inform nearby community members. • The neighborhood pop-ups are an opportunity to go
directly to target audiences and provide information;
whereas the community organization meetings are an
opportunity to present information at existing regularly

8 scheduled meetings among community groups (e.g.,
Rotary, Latino Outreach Council, etc.)
Partner and Volunteer
Coordination (as resources
allow)
• Partner with organizations, community groups, and
volunteers to execute door knocking (as resources
allow), emails, phone calls, and other direct outreach to notify residents of this change.
o Partners may include, but are not limited to Cal
Poly ASI, SLO Chamber, League of Women
Voters, Latino Outreach Council, Cuesta
Fixed Deliverables
• 1 explainer video that can be clipped into shorter reels for social media • 3 Every Door Direct Mailers (EDDM) (citywide)
• 3 Printed Flyers
• 2 Rounds of Bus Shelter/Interior Bus Ads
• 4 Downtown Banners
• 4 Press Releases
• 6 Community Meetings (3 Virtual, 3 In-Person meetings) o In-person community meeting locations may include: SLO County Library, Ludwick Community Center, Neighborhood parks, Senior Center, Cal Poly campus, and schools.
o Community meetings should be held on weekday evenings, with some weekend options.
• Standard presentation for outreach meetings
• 8 Digital Advertisements (Meta, YouTube, Google)
• Radio/Streaming Advertisements
• Media Advertisements (print, digital, TV)
Outreach Timeline
This initiative will span roughly 10 months and include three distinct phases designed to educate and empower SLO residents to confidently participate in the 2026 General Election and future elections.

While the City will provide consistent information and engagement throughout, the phased structure allows residents to become fully familiar with the details over time while ensuring the City allocates its resources effectively. The third phase directly aligns with the County Clerk-Recorder’s Office to reinforce standard election messaging.

Timeline
• Phase 1, January – June: Awareness & Understanding
o Enhance citywide awareness and understanding of the Citywide Single Vote for Council. Educate voters and potential voters on why voting is changing and how it benefits them.

9 o Key Messages: What’s changing, why it’s happening, and how it benefits voters.
▪ A new voting method begins in November 2026.
▪ This change improves fairness and avoids costly legal challenges to the City’s election system.
▪ Every voter continues to have a voice in electing every Council Member, and the process stays simple: vote for one, top two win. ▪ Every candidate remains accountable to every voter in the City • Phase 2, June – September: Voter Registration & Empowerment o Target outreach to ensure that voters, especially eligible non-registered voters, know how to register to vote and how to vote successfully. Focus on candidate education.
o Key messages: Why registering matters and how this new method strengthens each vote.
▪ Registering early ensures you can fully participate in SLO’s first Citywide Single Vote election.
▪ Your vote has more impact when you choose the one candidate who best represents your vision and values.
▪ This system makes it easier for community voices and diverse candidates to gain meaningful support.
• Phase 3, September – November: Voting Successfully
o Amplify County messaging and provide reminders leading up to Election Day to encourage registration and ensure residents understand what the ballot looks like and where to vote.
o Key Messages: How to fill out the ballot correctly and confidently. ▪ Vote for One. Top Two Win.
▪ For City Council, you will vote for only one candidate. ▪ The two candidates with the most votes citywide will be elected. ▪ Follow the ballot instructions, return your ballot on time, and get your vote counted.

The following schedule outlines the planned deliverable production throughout the initiative. Tactics may change depending on each performance review.

10 Month Outreach Task Staff Assigned Date
Completed
January Audit/update webpage to reflect the latest
FAQs and project overview
Add homepage banner/widget to website
Develop talking points
Brief Council and staff
Work with GIS to determine
neighborhoods or areas to target for doorto-door outreach, based on demographic data
Work with the Volunteer Coordinator to
develop a manageable volunteer program
Form a community working group. This
group will provide ongoing feedback and
suggestions throughout the process
Begin planning and scheduling community
meetings:
- February - virtual
- March - in-person
- May - in-person
- June - virtual
- September - virtual
- October - in-person
Begin scheduling presentations at existing
community organization/partner meetings
and build out standard presentation deck
Begin social media and email outreach.

This should include coordination with
Nextdoor neighborhoods leads
Begin branding rollout
Create one comprehensive informational
video, which can then be split into 3-4
shorter clips for YouTube shorts and
Instagram/Facebook reels. The video
segments should cover a brief overview of
the Citywide Single Vote for Council, why
the City is making this change, how to fill
out a ballot successfully, and how to
register to vote

11 February Issue initial news release about the
Citywide Single Vote for Council, including
background information, updated website
information, and upcoming meeting and
event dates
Distribute social media
Distribute information via e-newsletter
Hold community working group meeting
#1
Establish coordination with Cal Poly,
Cuesta, the Chamber of Commerce,
DTSLO, and other interested community
groups
Begin scheduling pop-ups at various
events
Establish volunteer program
Begin TV news coordination
Hold community meeting #1 (virtual). This
meeting should explain the Citywide
Single Vote for Council, why the election
system is changing, and how it affects
voters. The meeting should be recorded
and distributed across the City’s digital
channels. Note the final number of
attendees
March Develop and print flyers, signage and
banners. Ensure Spanish-language
materials are reviewed by partners. Flyers
and signs should be consistent with
branding. Flyers should explain the 'what'
and 'why' of the change. These should
include simple, visual explanations. The
banner should align with initial education
about the change
Distribute flyers to community hubs
Post flyer downloads online

12 Develop and distribute the first bilingual
EDDM mailer explaining the Citywide
Single Vote for Council, why the election
system is changing, and how residents
can learn more. The Spanish copy should
be reviewed by partners
Run banner 1 from March 16-22
Distribute social media
Distribute information via e-newsletter
Call for volunteers and volunteer training
opportunities
Hold community working group meeting
#2
Begin targeted outreach to historically
marginalized groups
Continue scheduling pop-ups at various
events
Distribute a social media toolkit with the
following information:
- Core messaging points
- Related hashtags
- Ready-to-post content and graphics
- FAQs
- Contact information
Launch the first round of digital ads across
Meta, Google, and Nextdoor. These
should be evergreen content about the
change that focus on awareness and link
to the website for more information.

Hold community meeting #2 (in-person).

This meeting should explain the Citywide
Single Vote for Council, why the election
system is changing, and how it affects
voters. Note the final number of attendees
April Hold community working group meeting
#3
Distribute social media
Distribute information via e-newsletter
Sustain historically marginalized outreach
Continue scheduling pop-ups at various
events

13 Begin canvassing neighborhoods and
door-to-door outreach with volunteers
Collaborate with community groups to
initiate phone call and email outreach to
historically marginalized communities
Issue the next news release highlighting
community meeting recordings, new
FAQs, and upcoming meetings and
events
Pitch an explainer story or interview to
news outlets
Develop bilingual radio and TV concepts
for the following channels:

Radio: KCBX 90.1 FM, KXTZ 95.3 FM,
The Krush 92.5 FM
TV: KSBY, KEYT-YV, Telemundo, KKFXCD
Develop newspaper ads for the following
publications: The Tribune, New Times
Conduct first review metrics from January
through March, including:
- Website traffic: Page views
- Social media performance: Likes,
comments, shares, follower growth
- Ad performance: Impressions, clickthrough rates, conversions, reach - Partner engagement: Number of
partners, number of outreach tasks
completed (by type)
- Email sign-ups: Number of recipients
and list growth, open rates, click rates
- Meeting attendance: Number of
participants at workshops and meetings,
pop-up events attended, presentations
given at community organization meetings
May Hold community working group meeting
#4
Sustain historically marginalized outreach

14 Distribute social media. Begin integrating
voter registration messaging. Ensure this
messaging aligns with the County's
messaging
Distribute information via e-newsletter
Update the FAQ language across
platforms to include voter registration
information and how to vote successfully
Update the website to include voter
registration information and how to vote
successfully
Continue scheduling pop-ups at various
events
Continue neighborhood canvassing and
door-to-door outreach with volunteers
Brief Council and staff on updated FAQs.

This should incorporate findings from the
metrics evaluation
Launch the second round of ads on Meta,
YouTube, and Nextdoor. The Meta and
Nextdoor ads should promote the
upcoming community meetings
Refresh flyers
Develop and distribute the second
bilingual EDDM mailer explaining how
voters, especially eligible non-registered
voters, can register to vote and vote
successfully
June Hold community working group meeting
#5
Distribute social media
Distribute information via e-newsletter
Sustain historically marginalized outreach
Continue scheduling pop-ups at various
events
Continue neighborhood canvassing and
door-to-door outreach with volunteers

15 Hold community meeting #3 (in-person) –
Educate voters, especially eligible nonregistered voters, on how to register to vote and how to vote successfully
Begin preparing candidate and candidate
orientation materials. These should
explain the change and include key talking
points to educate the public
Run banner 2 from June 1-7. This should
focus on additional education
July Align election deadlines and materials with
the County. This is a transition period now
that the election information is out
Share toolkits with candidates
Hold community working group meeting
#6
Distribute social media
Distribute information via e-newsletter
Sustain historically marginalized outreach
Continue scheduling pop-ups at various
events
Continue neighborhood canvassing and
door-to-door outreach with volunteers
Begin sharing official election information
with residents, including deadlines,
registration information, etc.

Begin running radio/TV/newspaper
placements mid-July
Hold community meeting #4 (virtual) –
Educate voters, especially eligible nonregistered voters, on how to register to vote and how to vote successfully. Record
this meeting and distribute it across the
City's digital channels

16 Conduct second review of metrics from
April through June, including: - Website traffic: Page views - Social media performance: Likes, comments, shares, follower growth - Ad performance: Impressions, click -
through rates, conversions, reach, - TV/radio/newspaper ad placements:
number of placements, placement
dates/times, outlets - Partner engagement: Number of
partners, number of outreach tasks
completed (by type) - Email sign-ups: Number of recipients and list growth, open rates, click rates - Meeting attendance: Number of participants at workshops and meetings,
pop-up events attended, presentations
given at community organization meetings - Media coverage: volume, tone and reach of news stories, press mentions
Run a benchmark survey to gauge the
percentage increase of survey
respondents who say they are aware of
the change.

August Hold community working group meeting
#7
Distribute social media
Distribute information via e-newsletter
Sustain historically marginalized outreach
Develop/distribute “How to Vote”
resources
Partner with Cal Poly on student outreach.

This should include dorms, student
organizations, and orientation events
Continue scheduling pop-ups at various
events
Continue neighborhood canvassing and
door-to-door outreach with volunteers
Launch the third round of ads on Meta,
Google, and Nextdoor. These should be
evergreen about how to vote successfully
Issue the next press release. This should
share new resources, key reminders, and
upcoming meeting and event dates

17 September Produce and review new FAQs heading
into the final phase
Print/distribute County “How to Vote”
materials
Hold community working group meeting
#8
Distribute social media
Distribute information via e-newsletter
Sustain historically marginalized outreach
Continued Cal Poly outreach
Continue scheduling pop-ups at various
events
Continue neighborhood canvassing and
door-to-door outreach with volunteers.

This should focus on high-traffic student
areas
Develop and distribute the third bilingual
EDDM mailer reinforcing key reminders,
upcoming meetings and deadlines
Run banner 3 from Sept. 21-27. This
should share voter information and align
with the third EDDM mailer
Launch the final round of ads on Meta,
YouTube, and Nextdoor. The Meta and
Nextdoor ads should promote the
upcoming community meetings
Continue radio/TV/newspaper placements
from mid-September to mid-October
Hold community meeting #5 (virtual) –
Review refreshed FAQs and voting
logistics. Record meeting and distribute it
across the City's digital channels
October Boost County messages
Hold community working group meeting
#9
Distribute social media
Distribute information via e-newsletter
Sustain historically marginalized outreach

18 Final pop-up events. These should aim to
clarify voting logistics and clarify any
details about the change
Hold meeting #6 (in-person) – Review
refreshed FAQs and voting logistics
Wrap up radio/TV/newspaper ads in early
October
Distribute final pre-election press release.

The press release should summarize all
key election information and deadlines.

Conduct door-knocking as needed with
volunteers. This should be targeted at lowturnout areas Run banner 4 from Oct. 26-Nov. 1. This
should share final voter reminders
November Distribute daily or weekly countdown posts
on social media
Send email reminders about election.

Focus messaging on polling hours, ballot
drop-offs, and reminders on how to vote
Distribute thank you messaging
Conduct final review of metrics
encompassing entire outreach timeline,
including:
- Website traffic: Page views
- Social media performance: Likes,
comments, shares, follower growth
- Ad performance: Impressions, clickthrough rates, conversions, reach, - TV/radio/newspaper ad placements:
number of placements, placement
dates/times, outlets
- Partner engagement: Number of
partners, number of outreach tasks
completed (by type)
- Email sign-ups: Number of recipients
and list growth, open rates, click rates
- Meeting attendance: Number of
participants at workshops and meetings,
pop-up events attended, presentations
given at community organization meetings
- Media coverage: volume, tone and reach
of news stories, press mentions
- Insights into overall sentiment and voter
turnout
Conduct final reporting

19 Outreach Budget
The following budget outlines the recommended allocation for each major outreach tactic. Budget outreach will cost approximately $110,000, with $80,000 allocated through June 2026 and $30,000 for the 2026-2027 fiscal year. The City remains flexible to adjusting budget allocations based on the performance evaluations.

Outreach Tactic Budgeted
Cost
Branding $3,000
3 EDDM Mailers $33,000
Physical Signage
• Street banners
• Flyers
• Bus cards and transit booklet
$8,500
Print, TV, and Radio Ads
• Newspaper (Tribune, New Times)
• TV (KSBY, KEYT-TV, Telemundo, KKFX-CD)
• Radio (KCBX 90.1 FM, KXTZ 95.3 FM, The Krush 92.5 FM, KSJV

92.9, KMLM 107.3)
$45,000
Digital Ads
• Google Ads (2 $1,000 ads)
• Meta Ads (4 $500 ads)
• YouTube Ads (2 $1,000 ads)
• Nextdoor Ads (4 $500 ads)
$8,000
Translations
• Cost for six meetings
$4,200
Community Meetings/Partnership Sponsorships
• Waters, snacks, print-outs, etc.
• Door knocking, phone calls, pop-ups, etc.
$3,000
Contingency $5,300
Total Cost $110,000

20 Appendix
Appendix 1: Pop-Up Event Opportunities
February
• February ECOSLO Tree Planting at Johnson Ranch
• Lunar New Year celebration
March
• Free Compost Giveaway
April
• SLO Earthfest 2026
• Spring Fling at Meadow Park
• Downtown SLO Walk for Autism and Resource Fair
• Arbor Day at the park
May
• Bike Month - Bike Breakfast
June
• Concerts in the Plaza
• Juneteenth celebration
• Pride in the Plaza & Trans Pride in the Park
July
• Annual San Luis Obispo Triathlon
• Cal Poly orientations
• Concerts in the Plaza
August
• Concerts in the Plaza
• SLO County Libraries' free Back-to-School Extravaganza • Cal Poly Week of Welcome events (ex: Campus Comeback) • Cuesta College orientation (ex: Cougar Welcome Days)
September
• Concerts in the Plaza
• September Scramble
• San Luis Obispo High School Homecoming Game and Alumni Welcome • Creeks to Coast Cleanup Day

21 October
• Belonging Project Series
• Boo Bash
Additional Opportunities
• Chamber of Commerce events
• City adult recreation events and activities
• City blood drives
• City Senior Center events
• City youth sports events and activities
• Community Clean Ups
• County voter registration events
• Downtown SLO events
• Downtown SLO Thursday Night Farmers’ Market
• Dia De Los Muertos (November)
• HOA meetings
• Latino Outreach Council
• Residents for Quality Neighborhoods meetings
• SLO County Art After Dark events
• SLOMA events
• School district multilingual events

22 Appendix 2: Survey Results and Analysis

23

24

25

26

27

28

29 Appendix 3: Community Organization Groups

30

31

32

33

1 Council Minutes
January 13, 2026, 5:30 p.m.

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

Present:

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

1. CLOSED SESSION

1.a CALL TO ORDER (4:45 PM to 5:30 PM)
Mayor Erica A. Stewart called the Closed Session of the San Luis Obispo City Council to order at 4:45 p.m. in the Council Hearing Room at City Hall, 990 Palm Street, San Luis Obispo with Council Member Shoresman participating virtually.

1.b CONFERENCE WITH REAL PROPERTY NEGOTIATORS
ACTION: City Attorney Dietrick reported that the Council met in Closed Session and provided direction on negotiating parameters for price and terms and no further reportable action was taken.

1.c ADJOURNMENT
Closed session adjourned at 5:20 PM.

2. CALL TO ORDER
A Regular Meeting of the San Luis Obispo City Council was called to order on January 13, 2026 at 5:30 p.m. in the Council Chambers, 990 Palm Street, San Luis Obispo, by Mayor Stewart, with Council Member Shoresman participating virtually.

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

2 4. PRESENTATIONS

4.a NATIONAL MENTORING MONTH - BIG BROTHERS BIG SISTERS OF

SAN LUIS OBISPO COUNTY
Mayor Stewart presented a Proclamation to Carol Florence, representing Big Brothers and Big Sisters of San Luis Obispo County declaring January as National Mentoring Month and recognizing Big Brothers Big Sisters of San Luis Obispo County for their Youth Mentoring Program.

4.b NATIONAL ANTI HUMAN TRAFFICKING PREVENTION MONTH
Mayor Stewart presented a Proclamation declaring January as National Human Trafficking Prevention Month.

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

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

Steve Barasch
Leslie Halls
Alice Aldana
Gerri Clemens
--End of Public Comment--

6. CONSENT AGENDA
Mayor Stewart requested Item 6c be removed from the Consent Agenda.

Vice Mayor Francis requested Item 6h be removed from the Consent Agenda.

Public Comment:

Steve Barasch - Item 6g
John Ashbaugh - Item 6g
--End of Public Comment--
Motion By Vice Mayor Francis
Second By Council Member Boswell
To approve Consent Calendar Items 6a, 6b, 6d through 6f and 6i through 6j.

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

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

6.b MINUTES REVIEW - DECEMBER 2, 2025 AND DECEMBER 15, 2025

COUNCIL MINUTES
Approve the minutes of the City Council meeting held on December 2, 2025 and December 15, 2025.

6.d AUTHORIZE THE TRANSFER OF CAPITAL AND OPERATING FUNDING

FOR THE PURCHASE OF AN AUTONOMOUS FIELD STRIPER
Adopt Resolution No. 11620 (2026 Series) entitled “A Resolution of the City Council of the City of San Luis Obispo, California, Authorizing the Transfer of Unused Fleet Capital Funding and Supplemental Salary Savings to the Parks Major Maintenance Capital Account for the Purchase of an Autonomous Sports Field Striper” for the Damon Garcia Sports Complex:

1. Approve the transfer of $38,000 in available fleet replacement funding from the Fleet Replacement Project (2000520-02.12), originally allocated for the replacement of fleet asset #0849, to the Parks Major Maintenance Capital Account (2001010); and

2. Approve the transfer of $3,640 in Parks Maintenance salary savings to the Parks Major Maintenance Capital Account
(2001010).

6.e APPROVE RELEASE OF A REQUEST FOR QUALIFICATIONS FOR

AUDIO-VISUAL SERVICES

1. Approve the release of a Request for Qualifications (RFQ) to establish a list of prequalified Audio-Visual (AV) Service vendors following the expiration of the 45-day notice period in compliance with AB 339 (no earlier than February 5, 2026); and

2. Authorize the Deputy City Manager to execute professional service agreements with the selected consultants; and

3. Authorize the Finance Director to execute and amend purchase orders for individual professional service agreements in an amount not-to-exceed the authorized budget.

6.f AUTHORIZE THE FIRE DEPARTMENT TO ACCEPT THE PRODUCT OF A FIRE SAFE COUNCIL GRANT, WHICH IS PREPARATION OF A ONETIME PROFESSIONAL SERVICE AGREEMENT FOR EVACUATION

4 DATA DEVELOPMENT AND INITIAL MODELING SERVICES FOR

CITYWIDE EVACUATION PLANNING
Authorize the Fire Department to accept the award from the San Luis Obispo County Fire Safe Council for a one-time professional service agreement for evacuation data development and initial modelling services for Citywide evacuation planning with a value of $30,000.

6.g SECOND READING AND ADOPTION OF ORDINANCE NO. 1753 (2025 SERIES) REPEALING AND REPLACING CHAPTER 14.01 OF THE

MUNICIPAL CODE (HISTORIC PRESERVATION ORDINANCE) TO

INCLUDE RECOMMENDED UPDATES AND AMENDMENTS
Adopt Ordinance No. 1753 (2025 Series) entitled, “An Ordinance of the City Council of the City of San Luis Obispo, California, repealing Chapter

14.01 (Historic Preservation Ordinance) of the Municipal Code in its entirety and introducing and adopting a replacement Chapter 14.01 to include recommended updates and amendments as reflected in the attached Exhibit A (CODE-0758-2025)”

6.i APPROVAL OF A REIMBURSEMENT AGREEMENT WITH THE COUNTY

OF SAN LUIS OBIPSO FOR THE SALINAS DAM FEASIBILITY STUDY

1. Adopt Resolution No. 11621 (2026 Series) entitled “A Resolution of the City Council of San Luis Obispo, California, Approving a Reimbursement Agreement with the San Luis Obispo County Flood Control and Water Conservation District to Support the Salinas Dam Feasibility Study;” and

2. Authorize the City Manager to execute the Reimbursement Agreement and related documents; and

3. Find the action exempt from the California Environmental Quality Act.

6.j APPROVE A MEMORANDUM OF UNDERSTANDING WITH SLOCOG

AND WITH THE CITY OF SANTA MARIA FOR PILOT EXPRESS

TRANSIT SERVICES
Authorize the Mayor to execute a Memorandum of Understanding with the San Luis Obispo Council of Governments and with the City of Santa Maria for Pilot Express Transit Services.

5 6.c COUNCIL LIAISON SUBCOMMITTEE ASSIGNMENTS FOR 2026 Motion By Mayor Stewart
Second By Council Member Marx
Approve the Council Liaison Subcommittee assignments for the 2026 calendar year with the following change:
 The IWMA appointment will be effective January 15,2026 and the CAPSLO appointment will be effective January 16, 2026.

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

6.h AWARD CONSTRUCTION CONTRACT FOR SOUTH STREET AND
KING COURT CROSSING PROJECT, SPECIFICATION NO. 2001059
Motion By Vice Mayor Francis
Second By Council Member Boswell

1. Award a construction contract for the South Street and King Court Crossing Project to JJ Fisher Construction Inc. in the amount of $632,816; and,

2. Authorize the City Engineer to approve Contract Change Orders up to the available project budget, including any amendments authorized by the City Manager; with the following additional direction: * If funding is available at the end of the project a License Plate Reader camera be purchased and installed at this location.

3. Authorize the transfer of $150,000 from the Roadway Sealing 2024 Project (Account 2000615) to the South Street and King Court Crossing Project (Account 2001059); and,

4. Approve a purchase from AM Signal, not to exceed $204,600 total, for the purchase and installation of Emergency Vehicle Preemption (EVP) equipment for San Luis Obispo Fire and Police Department vehicles.

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

6 7. PUBLIC HEARING AND BUSINESS ITEMS

7.a ACCEPTANCE OF THE ANNUAL COMPREHENSIVE FINANCIAL

REPORT, FEDERAL SINGLE AUDIT REPORT AND TRANSPORTATION
DEVELOPMENT ACT REPORT FOR FISCAL YEAR 2024-25
Finance Director Emily Jackson, Deputy Director of Finance Debbie Malicoat, Senior Accountant Tavy Garcia and Mitesh Desai, Auditor provided an in-depth staff report and responded to Council questions.

Public Comments:

None
---End of Public Comment---
ACTION: By consensus the City Council accepted the Annual Comprehensive Financial Report, the Federal Single Audit Report and Transportation Development Act Report for Fiscal Year 2024-25.

7.b INTRODUCE AN ORDINANCE ESTABLISHING CITYWIDE SINGLE VOTE FOR COUNCIL ELECTIONS IN 2026 AND SUBSEQUENT

ELECTIONS
Motion By Mayor Stewart
Second By Council Member Shoresman
To adopt Ordinance No. 1754 (2026 Series) adding chapter 2.38, entitled “Citywide Single Vote Method of Electing City Councilmembers” to the San Luis Obispo Municipal Code, implementing a new method for elections of City Councilmembers and adopting regulations providing for the administration of City Council elections by Citywide Single Vote beginning in November 2026 with the amendments included in the Staff Agenda correspondence.

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

7.c 2026 COUNCIL COMPENSATION COMMITTEE RECOMMENDATIONS Motion By Council Member Shoresman
Second By Mayor Stewart
As recommended by the Council Compensation Committee:

1. Adopt Resolution No. 16662 (2026 Series) entitled “A Resolution of the City Council of the City of San Luis Obispo, California, setting

7 new salaries for the Mayor and Council Members and reaffirming compensation for Planning Commission and Architectural Review Commission and amending Council’s Policies and Procedures,” increasing the monthly compensation for the Mayor from $2,923 to $4,169 4,864 per month and Council Member from $2,319 to $2,780 per month, and provide a $160 per month stipend for any Council Member or Mayor who is appointed to a statewide board or policy committee for the duration of their appointed term, effective the first full pay period in January 2027; and renaming Professional Development funding to Reimbursable Professional Expenses funding; The change in Mayor compensation was due to the Council accepting Alternative 1 for the Mayor, basing the salary for Mayor on 35 hours worked per week, and

2. Increase the Reimbursable Professional Expenses funding amount for Mayor from $3,600 to $4,400 annually and for Council Members from $2,700 to $3,300 annually. Also, automatically roll over any remaining Reimbursable Professional Expenses funds from the first year of a Financial Plan to the second year; and

3. Establish an annual $1,000 reimbursement allowance for any Council Member or Mayor who is appointed to a statewide board or policy committee for travel expenses related to statewide meetings; and

4. Direct staff to explore the feasibility of an "opt-in" pilot-program to provide $25 per meeting for all City Advisory Bodies, not including the Architectural Review Commission (ARC) and Planning
Commission (PC), with a cap of three meetings a month, totaling $75 per month. The ARC and PC compensation would remain at the same amount of $86 per meeting with a cap of $344 per month.

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

8. LIAISON REPORTS AND COMMUNICATIONS
Mayor Stewart
 Attended the SLO Council of Governments (SLOCOG) and SLORTA meetings on January 7
 Attended the SLO Council of Governments Workshop on January 13

8  Participated in the Downtown SLO Holiday Parade
 Attended the CA Men’s Colony Advisory Committee meeting in December  Attended the Cal Cities Board meeting in Rancho Mirage  Attended her last session of the Rodel Institute
Council Member Shoresman
 Attended the menorah lighting
 Attended the State of the State briefing at the SLO Chamber. 
 Attended the Zone 9 meeting in December
 Attended an HSOC Executive Committee meeting
 Rode the Trolley on its Holiday route with members of the Senior Center Council Member Boswell
 Attended the Downtown SLO Board Retreat today.
 Met with staff regarding his assignment to the SLO Climate Coalition -  Attended the ribbon cutting for the new public art in the San Luis Ranch roundabout
 Attended the State of the State briefing at the SLO Chamber.

Vice Mayor Francis
 Attended the Community Action Partnership (CAP) on December 18, 2025  Attended WRAC on December 6, 2025 for Council Member Marx  Attended the ribbon cutting for the new public art in the San Luis Ranch roundabout
Council Member Marx
 Attended the ribbon cutting for the new public art in the San Luis Ranch roundabout
 Attended an event at the History Center on January 3rd.  Attended the installation of officers for the King David's Lodge the Masonic Temple of San Luis Obispo

9 9. ADJOURNMENT
The meeting was adjourned at 10:15 p.m. The next Regular City Council Meeting is scheduled for January 20, 2025 at 5:30 p.m. in the Council Chambers at City Hall, 990 Palm Street, San Luis Obispo.
_________________________
APPROVED BY COUNCIL: XX/XX/202X

Item 5c
Department: Parks and Recreation
Cost Center: 7001
For Agenda of: 1/20/2026
Placement: Consent
Estimated Time: N/A
FROM: Greg Avakian, Parks & Recreation Director
Prepared By: Lily Honer-Hollstien, Business Analyst; Devin Hyfield, Recreation Manager SUBJECT: AUTHORIZATION TO APPLY FOR THE 2025 COMMUNITY CHAMPIONS

PLAYGROUND GRANT

RECOMMENDATION

1. Adopt a Draft Resolution affirming the submittal of a Community Champions Playground Grant application (Attachment A) requesting an award of grant funds toward the purchase of a new playground system for the Vista Lago Park, from GameTime, a PlayCore Company (GameTime); and

2. Authorize the Assistant City Manager to execute the necessary grant documents and appropriate the grant amount into the Vista Lago Playground Replacement project (CIP No. 2000033-02) budget to support the replacement of the playground equipment upon grant award.

POLICY CONTEXT
The City’s Financial Management Manual, Section 740, requires City Council authorization to submit grant applications in excess of $5,000. Section 3(d) states:

For grants in excess of $5,000, prepare a Council Agenda Report requesting authorization to seek grant funding. This report should describe the grant program's conformance with this policy, including the results of the cost/benefit analysis.

The grant, if awarded, would be in the amount of $55,448, exceeding the $5,000 threshold.

DISCUSSION
Background
The City of San Luis Obispo (City) park system includes a diverse mix of 28 parks and recreation facilities covering approximately 206 acres. The City’s parks include a broad range of recreational features, which necessitate continual maintenance and upgrades over time. As such, there are various park and facility improvements or enhancements scheduled in the City’s 2027-28 Capital Improvements Program (CIP), including a project

Item 5c
to upgrade and replace playground equipment at Vista Lago Park. At this time, grant opportunities are available that can augment City funds for the purposes of developing and revitalizing City parks’ recreational amenity offerings.

GameTime, a PlayCore Company, is an internationally recognized playground manufacturer that specializes in providing innovative play equipment for community and academic purposes. They specialize in equipment that is accessible and environmentally sustainable. GameTime equipment has been utilized in several City parks including DeVaul Ranch, French, Islay and new Avila Ranch parks. In addition, GameTime was identified by Oasis Associates, who are the contracted landscape design agency for the new playground projects, as the preferred design company for the new upgraded playground equipment for the DeVaul Park and Vista Lago Park projects.

Staff initially applied for the Community Champions Playground Grant and included both the DeVaul and the Vista Lago playground projects on the application (Attachment B).

Due to an outstanding grant application related to DeVaul Park, it was determined not eligible. Staff and in discussion with GameTime representatives determined that the Vista Lago Park Playground Replacement project is eligible for grant support funding. The Community Champions Playground Grant is classified as a privately funded grant opportunity through GameTime, a PlayCore Company. If awarded, the grant will provide supplementary funding for the purchase of the playground equipment. The Vista Lago Park Playground CIP project (CIP No. 2000033-02) is currently fully designed for construction and funded within the 2027-28 CIP program. The project currently includes replacement and expansion of the nearly 20-year-old playground at Vista Lago Park with updated and modern equipment for ages 0-5 and 5-12, expansion of ADA pathways, and seating bordering the playground (Attachment C). If awarded, the Playground Grant would offset 50% of the playground equipment purchase costs. The financial savings offset would remain in the project fund to support the overall approved park project or provides an opportunity to allocate funds back to the general CIP Fund at the completion of the project.

Due to the timing of the Community Champions Playground Grant application due date of October 17, 2025 (extended to November 2025), staff applied for the grant on November 18, 2025, for the Vista Lago Playground Replacement Project subject to the subsequent authorization of the City Council. Staff is requesting that the City Council confirm authorization for the application. If Council does not authorize the submittal of the grant application, staff will withdraw the application from consideration and move forward with the current project plan of playground replacement. Staff anticipates receiving notification of grant award or rejection by Summer 2026, allowing adequate notification to support the scheduled project in 2027-28 CIP program.

Public Engagement
The Vista Lago Park playground replacement project was developed through multiple public engagement efforts. These included an on-site forum held in July 2023 at Vista Lago Park, outreach at Parks and Recreation Department events such as the Monday

Item 5c
Meet-Up booths during the summers of 2024 and 2025, and input received at several Parks and Recreation Commission (PRC) meetings, including:
 August 16, 2023 – Parks and Recreation Commission received a staff update on the Vista Lago Park playground replacement project, including community outreach efforts and project status.
 October 11, 2023 – Parks and Recreation Commission reviewed proposed draft layout options for the Vista Lago Park playground replacement project and provided direction to staff on the preferred layout to advance.  January 10, 2024 – Parks and Recreation Commission conducted a final review of the proposed conceptual layout for the Vista Lago Park playground replacement project and provided direction to staff to proceed with preparation of construction documents.

ENVIRONMENTAL REVIEW
Compliance with the California Environmental Quality Act, will be conducted prior to project approval, and authorization to advertise and construct the proposed park improvements.

FISCAL IMPACT
Budgeted: Yes Budget Year: 2027-28
Funding Identified: Yes
Fiscal Analysis:

Funding
Sources
Total Budget
Available
Current
Funding
Request
Remaining
Balance
Annual
Ongoing
Cost
General Fund $629,000 $629,000 $0
State
Federal
Fees
Other: Grant $55,448
Total $629,000 $55,448 $629,000 $0
The Vista Lago Playground Replacement project (CIP No. 2000033-02) is currently funded in the FY 2027–28 Capital Improvement Program with an appropriation of $629,000 from the Capital Outlay Fund – LRM (401.9501.71006). The approved project scope includes replacement of the playground equipment (City estimated to cost $157,378), and construction of ADA-accessible pathways and additional seating. The full scope of the project is fully budgeted and planned for construction, which accounts for the remainder of the appropriation.

The Community Champions Playground Grant provides an opportunity to supplement approximately 50% of the playground equipment purchase cost allocated within the CIP

Item 5c
Funds. Staff have applied for an award of up to 50% funds to support replacement of playground amenities, which would supplement the current appropriation from the City.

The current estimated cost, by GameTime, a PlayCore Company, for the playground equipment is $110,896 and this grant would supplement the cost at $55,448, listed as “Other” in the Fiscal Analysis table above. If awarded, the grant would support the improvements at Vista Lago Park without increasing General Fund commitments. No additional City funds are anticipated at this time as the project funds are currently allocated in the 2027-28 CIP.

ALTERNATIVES
The City Council could deny the request to submit a grant application. Should City Council choose this option, the City will withdraw its application and proceed with the currently funded project scope consisting of the playground replacement and associated ADA improvements.

ATTACHMENTS
A - Draft Resolution Approving the Application for the Community Champions Playground Grant
B - Community Champions Playground Grant Application Form C - Concept Design Plans for Vista Lago Park Playground Replacement (CIP No. 2000033-02)

RESOLUTION NO. _______ (2026 SERIES)

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

OBISPO, CALIFORNIA APPROVING THE GRANT APPLICATION FOR

THE COMMUNITY CHAMPIONS PLAYGROUND GRANT FOR THE

VISTA LAGO PARK PLAYGROUND REPLACEMENT PROJECT
WHEREAS, the GameTime (a PlayCore Company) is is an internationally recognized playground manufacturer that specializes in providing innovative play equipment for community and academic purposes; and
WHEREAS, in June 2025, City Council adopted the 2025-27 Financial Plan, including the 2027-28 CIP Program containing the Vista Lago Park Playground Equipment Replacement CIP project (CIP No. 2000033-02); WHEREAS, in 2025, GameTime (a PlayCore Company) began accepting applications for the Community Champions Playground Equipment Grant for up to 50% the cost of new playground equipment purchases. and;
WHEREAS, the City of San Luis Obispo (applicant) applied for the Community Champions Playground Equipment Grant program to support the project scope of CIP No. 2000033-02; and;
WHEREAS, the applicant certifies by resolution the approval of the application and the availability of eligible matching funds prior to submission of the application to the State.

NOW, THEREFORE, BE IT RESOLVED that the City of San Luis Obispo hereby:

Section 1. Certifies that the applicant has reviewed, understands, and agrees to the General Provisions contained in the contract shown in the Grant Administration Guide; and
Section 2. Agrees to abide by 54 U.S.C. §200305(f)(3) which requires, “No property acquired or developed with assistance under this section shall, without the approval of the Secretary, be converted to other than public outdoor recreation use. The Secretary shall approve a conversion only if the Secretary finds it to be in accordance with the then-existing comprehensive statewide outdoor recreation plan and only on such conditions as the Secretary considers necessary to ensure the substitution of other recreation properties of at least equal fair market value and of reasonably equivalent usefulness and location.”
Section 3. Certifies that said agency has matching funds from eligible source(s) and can finance 100 percent of the project, which up to half of the playground equipment purchase may be reimbursed; and
Section 4. Agrees to comply with all applicable federal, state and local laws,

Resolution No. _____ (2025 Series) Page 2
R ____
ordinances, rules, regulations and guidelines.

Section 5. Appoints the City of San Luis Obispo Assistant City Manager as agent of the applicant to conduct all negotiations and execute and submit all documents, including, but not limited to, applications, contracts, amendments, payment requests, and compliance with all applicable current state and federal laws which may be necessary for the completion of the aforementioned project. We acknowledge the project would require compliance with the National Environmental Policy Act ("NEPA") 42 U.S.C. § 4321 et seq., overseen by the National Parks Service ("NPS"). Based on the project scope, staff anticipates that it will qualify for a Categorical Exclusion. Staff will revisit NEPA compliance if the grant is approved.

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

AYES:

NOES:

ABSENT:

The foregoing resolution was adopted this _____ day of _____________________ 2026. ________________________
Mayor Erica A. Stewart
ATTEST:
_______________________________
Teresa Purrington
City Clerk
APPROVED AS TO FORM:
_____________________________________
J. Christine Dietrick
City Attorney
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of San Luis Obispo, California, this ______ day of ______________, _________. _______________________________
Teresa Purrington
City Clerk

Submit Your GameTime Playground Grant Application https://www.gametime.com/funding/playground-grant/application 1 of 6 12/17/2025, 3:23 PM

Submit Your GameTime Playground Grant Application https://www.gametime.com/funding/playground-grant/application 2 of 6 12/17/2025, 3:23 PM

Submit Your GameTime Playground Grant Application https://www.gametime.com/funding/playground-grant/application 3 of 6 12/17/2025, 3:23 PM

Submit Your GameTime Playground Grant Application https://www.gametime.com/funding/playground-grant/application 4 of 6 12/17/2025, 3:23 PM

Submit Your GameTime Playground Grant Application https://www.gametime.com/funding/playground-grant/application 5 of 6 12/17/2025, 3:23 PM

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Submit Your GameTime Playground Grant Application https://www.gametime.com/funding/playground-grant/application 6 of 6 12/17/2025, 3:23 PM

Proposal for
Oasis Associates
Prepared by
12-05-2025
Job # 109740-01
Vista Lago Park Playground Option 8
435-760-5103 | www.gwpark.com

Oasis Associates
Attn: Scott Wright
3427 Miguelito Court
San Luis Obispo, CA 93401
United States
[email protected]
Ship to Zip 93405
Quantity Part # Description Unit Price Amount
1 RDU GameTime - Custom 5-12 Playground -
Drawing Reference #109740-01-Opt 8
$150,078.00 $150,078.00
1 RDU GameTime - SwingsDrawing Reference #109740-01-Opt 8$3,087.00 $3,087.00 1 RDU GameTime - Sensory Wave Wall -
Drawing Reference #109740-01-Opt 8
$6,940.00 $6,940.00
1 5179 GameTime - Welcome Sign (5-12) $825.00 $825.00
Contract: OMNIA #2017001134 Sub Total $160,930.00
Grant ($63,555.17)
Freight $5,000.00
Tax $8,520.30
Total $110,895.13
Comments
Your Sales Rep is Tyler Kyriopoulos. Please reach out to Tyler at 435-760-5103 if you should have any questions regarding this quote.

Due to the volatility of freight costs, the freight pricing is subject to change at the time of order.

Pricing is subject to change. Request updated pricing when purchasing from quotes more than 30 days old.

Shipping to site:
1269 Vista del Lago
San Luis Obispo, CA 93405
*Freight charges are based on listed zip code and are subject to change if shipping information changes. *Deposit may be required.

Permitting not included, unless otherwise noted.

Customer is responsible for offloading.

Installation not included.

Omnia Contract #4001795
GameTime C/O Great Western Recreation
P.O. Box 680121
Fort Payne, AL 35967
Office: 435-245-5055 Fax: 435-245-5057
www.gwpark.com
12/05/2025
Quote #
109740-01-09
Vista Lago Park Playground Option 8

Remit Payment to:

GameTime
P.O. Box 680121
Fort Payne, AL 35968
Taxes:

All applicable taxes will be added at time of invoicing unless otherwise included or a tax-exempt certificate is provided.

If sales tax exempt, you must provide a copy of certificate to be considered exempt.

Prices:

FOB Factory.

Orders:

All orders shall be in writing by purchase order, contract, or similar document made out to PlayCore Wisconsin Inc., dba GameTime.

Standard GameTime equipment orders over $100,000 may require a deposit of 25% at the time of order and an additional 25% at or before order ships Standard orders with equipment, installation and surfacing are requested to be split billed.

Equipment, Taxes & Freight as noted above
Installation and Surfacing billed as completed and Due Upon Receipt.

Terms:

Cash With Order Discount (CWO): Orders for GameTime equipment paid in full at time of order via check, Electronic Funds Transfer (ACH or wire) are eligible for a three percent (3%) cash with order discount.

Payment via credit card:  If you elect to pay by credit card, GameTime charges a 2.50% processing fee that is assessed on the amount of your payment.  This fee is shown as a separate line item and included in the total amount charged to your credit card.  You have the option to pay by check, ACH or Wire without any additional fees.

Credit terms are Net 30 days, subject to approval by the GameTime Credit Manager. A completed credit application must be submitted and approved prior to the order being received. Please allow at minimum 2 days for the credit review process. GameTime may also require:

Completed Project Information Sheet (if applicable)
Copies of Payment and Performance Bonds (if applicable) A 1.5% per month finance charge will be imposed on all past due invoices.

Retainage not accepted.

Orders under $5,000 require payment with order.

GameTime C/O Great Western Recreation
P.O. Box 680121
Fort Payne, AL 35967
Office: 435-245-5055 Fax: 435-245-5057
www.gwpark.com
12/05/2025
Quote #
109740-01-09
Vista Lago Park Playground Option 8

ACCEPTANCE OF QUOTATION:

Billing and Shipping information will be as stated on quote unless indicated below.

Change billing information to:

Address: _______________________________________________________ ________________________________________________________ Contact: _______________________________________________________ Change shipping information to:

Address: _______________________________________________________ ________________________________________________________ Contact: _______________________________________________________ Colors: Per Renderings Yes or No
Palette _____________________________
Per Submittals ____________________________________________________________ Other Colors, please specify __________________________________________________________________ ____________________________________________________________________________________________ ____________________________________________________________________________________________ ____________________________________________________________________________________________ Purchase Amount: $110,895.13
Signature: _______________________________________ Date: _____________________ Printed Name: ____________________________________ Title: _______________________ Acceptance of this proposal indicates your agreement to the terms and conditions stated herein.

GameTime C/O Great Western Recreation
P.O. Box 680121
Fort Payne, AL 35967
Office: 435-245-5055 Fax: 435-245-5057
www.gwpark.com
12/05/2025
Quote #
109740-01-09
Vista Lago Park Playground Option 8

SUPPLY ONLY:

All items are quoted supply only.

Installation services are not included.

Customer is responsible for coordinating delivery, receipt, unloading, and inventory equipment.

Missing or damaged equipment must be reported within 60 days of delivery.

GameTime C/O Great Western Recreation
P.O. Box 680121
Fort Payne, AL 35967
Office: 435-245-5055 Fax: 435-245-5057
www.gwpark.com
12/05/2025
Quote #
109740-01-09
Vista Lago Park Playground Option 8

Item 5d
Department: Attorney
Cost Center: 1500
For Agenda of: 1/20/2026
Placement: Consent
Estimated Time: NA
FROM: Christine Dietrick, City Attorney
SUBJECT: Final Adoption of Ordinance Implementing Citywide Single Vote for City Council Elections

RECOMMENDATION
Adopt Ordinance No. 1754 (2026 Series) adding Chapter 2.38, entitled “Citywide Single Vote Method of Electing City Councilmembers” to the San Luis Obispo Municipal Code, implementing a new method for elections of City Councilmembers and adopting regulations providing for the administration of City Council elections by Citywide Single Vote beginning in November 2026

POLICY CONTEXT
On January 13, 2026, the City Council voted unanimously to introduce a new ordinance to implement a new method of electing City Councilmembers, beginning in the 2026 election, that will be known as Citywide Single Vote. The introduction included minor, non-substantive modifications to the language reflected in the originally published draft ordinance, which were provided to the Council and public in an agenda correspondence in advance of the introduction. Staff also recommended that the Council adopt the ordinance in accordance with the standard introduction and second reading/adoption process. This is the second step in that process. The minor language modifications have been incorporated into the final version of the ordinance attached to this staff report. (Attachment A) The recommended final adoption of the ordinance is the next step toward complying with the requirements of a previously approved settlement agreement and a stipulated judgement, discussed further below.

In November 2024, the City Council approved a settlement of a California Voting Rights Act (“CVRA”) demand letter served on the City by attorney Kevin Shenkman on behalf of his client Southwest Voter Registration Education Project on February 17, 2023. Part of the settlement was agreement to a Stipulated Judgement under which the parties agreed that the City would transition to a “Citywide Single Vote” model for electing Councilmembers, beginning in the 2026 election cycle.

The recommended action implements the settlement agreement and the Stipulated Judgement, ensuring the City’s compliance with its contractual and legal obligations. The ordinance is also consistent with the San Luis Obispo City Charter because it maintains

Item 5d
an at-large system of electing Councilmembers, as required by the City’s Charter, Section 402. The transition to Citywide Single Vote is also consistent with the City’s Diversity, Equity and Inclusion Major City Goal, in that it advances voter equity and reduces the potential for unlawful minority vote dilution that otherwise may be associated with standard at-large elections systems.

Finally, the recommended action also seeks to ensure that the County Registrar of Voters will be able to administer the new elections model as part of a consolidated election, consistent with historical practices to consolidate the administration of City elections with state and federal elections, which is considerably less expensive, more convenient for voters, and more efficient than the City running its own separate municipal elections. As such, the recommended action is consistent with the City’s Cultural Vitality, Economic Resiliency and Fiscal Sustainability Major City Goal.

DISCUSSION
Background
The Council authorized staff to enter into settlement negotiations throughout 2023 and 2024 to reach a mutually beneficial settlement of the CVRA demand. Council ultimately approved the settlement that is the basis of the currently recommended action in November of 2024. The staff report and more substantial background discussion can be reviewed here. The San Luis Superior Court approved the Stipulated Judgement that was part of the settlement on January 27, 2025.

The recommended ordinance adoption is the next step in the implementation of the settlement agreement and Stipulated Judgement and ensuring a smooth transition and implementation of the Citywide Single Vote. In short, the recommended ordinance formally establishes Citywide Single Vote as the method of electing City Councilmembers in 2026 and subsequent elections. The ordinance would codify the local legal structure for the City to move from the current “vote-for-two candidates to elect two Councilmembers” model, to a “vote-for-one candidate to elect two Councilmembers” model, whereby the top two candidates receiving the most single votes are elected to Council.

The ordinance also includes ballot instructions to ensure clear direction to voters and adds clarity for the elections official administering City Council elections regarding implementation of the Citywide Single Vote system. The ordinance clarifies and resolves inconsistencies between the generally applicable Elections Code ballot language and the specific ballot language necessary to implement the new system.

The ordinance was introduced by unanimous vote of the Council on January 13, 2026. If finally adopted by the Council as recommended at it January 20, 2026 meeting, the ordinance will become effective thirty (30) days after adoption.

Item 5d
Public Engagement
Since approval of the settlement and Stipulated Judgement by the City Council and the Superior Court, respectively, staff has been working to develop a robust public outreach, education and engagement plan. Voter education is already underway and will continue, expanding significantly as the 2026 election nears.

City staff will present an overview of the outreach plan at the same City Council meeting on January 20, 2026.

In November 2025, staff presented and recorded a significant Candidate Education Forum in collaboration with the Latino Outreach Council to ensure that current and prospective voters and prospective Council candidates are aware of and have access to information and resources about the new elections system well in advance of the 2026 election. That presentation recording and other information and resources can be accessed here www.slocity.org/SingleVote.

CONCURRENCE
The City Clerk and County Clerk Recorder concur with the recommendation.

ENVIRONMENTAL REVIEW
The adoption of the recommended ordinance is a policy measure and does not have any foreseeable impact on the environment and is therefore exempt from environmental review.

FISCAL IMPACT
Budgeted: Yes Budget Year: 2025-26, 2026-2027
Funding Identified: Yes
Fiscal Analysis:

Funding
Sources
Total Budget
Available
Current
Funding
Request
Remaining
Balance
Annual
Ongoing
Cost
General Fund $ $90,000 $0 $0
State
Federal
Fees
Other:

Total $ $90,000 $0 $0
As a part of the adoption of the 2025-27 Financial Plan, Council approved a total of $120,000 to support community outreach and engagement for the transition to Citywide

Item 5d
Single Vote system with $90,000 in the 2025-26 Fiscal Year and $30,000 in the 2026-27 Fiscal Year. As noted, an overview of the plan will be presented at the January 20, 2026 City Council meeting, following final adoption of this ordinance.

ALTERNATIVES
The recommended ordinance adoption is a necessary step to implement the settlement agreement and stipulated judgement to which the City previously agreed, so there is not a realistic alternative to adoption. If the Council directs any substantive modifications to the ordinance as introduced, re-introduction will be required, which will delay the effective date of the ordinance.

ATTACHMENTS
A - Ordinance No 1753 (2026 Series) adopting adding Chapter 2.38 to the Municipal Code to implement and provide regulations for administration of Citywide Single Vote B - Prior staff report regarding the settlement recommendation and related actions here

O ______
ORDINANCE NO. 1754 (2026 SERIES)

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SAN LUIS OBISPO, CALIFORNIA, ADDING CHAPTER 2.38, TITLED “CITYWIDE SINGLE VOTE METHOD OF ELECTING CITY COUNCILMEMBERS” TO

THE SAN LUIS OBISPO MUNICIPAL CODE, IMPLEMENTING A NEW

METHOD FOR ELECTIONS OF CITY COUNCILMEMBERS AND

ADOPTING REGULATIONS PROVIDING FOR THE ADMINISTRATION

OF CITY COUNCIL ELECTIONS BY CITYWIDE SINGLE VOTE
BEGINNING IN NOVEMBER 2026
WHEREAS, the City of San Luis Obispo is a charter city duly established by the voters of the City of San Luis Obispo pursuant to Article XI of the Constitution of the State of California, and governed by its duly adopted Charter, including Article III (“Elections”) and Article IV (“The Council”); and
WHEREAS, pursuant to the California Constitution, Charter cities have broad plenary powers to make and enforce all ordinances and regulations regarding municipal affairs, which supersede any conflicting state laws that may otherwise apply to municipal affairs; and
WHEREAS, the California Constitution, Article XI, Section 5(b) expressly and specifically establishes “conduct of city elections” as a municipal affair over which the City has plenary constitutional authority to regulate “…the manner in which, the method by which, the times at which, and the terms for which the several municipal officers and employees whose compensation is paid by the city shall be elected or appointed”; and WHEREAS, the San Luis Obispo City Charter, Section 402 provides that “The Council Members shall be elected at the general municipal election from the City at large, two being selected biennially”; and
WHEREAS, on February 17, 2023, the Southwest Voter Registration Education Project (“SVREP”) served the City with a letter asserting that the City’s existing at-large election system may violate the California Voting Rights Act (CVRA), Elections Code sections 14025 et. seq. and demanding that the City transition to district elections, which are not provided by the City Charter; and
WHEREAS, following settlement negotiations, the City and SVREP entered into Pre-Litigation settlement agreement and a Stipulated Judgment in San Luis Obispo County Superior Court, Case No. 24CV-0797, requiring the City to transition to a new election method known as “Citywide Single Vote”, which is consistent with the City Charter and within the remedial authority of the superior court pursuant to California Elections Code Section 14029 (see Pico Neighborhood Assn. v. City of Santa Monica (2023) 15 Cal.5th 292); and

Ordinance No. 1754 (2026 Series) Page 2
O 1754
WHEREAS, pursuant to the Stipulated Judgment, beginning with the November 2026 election, the City shall implement a new method for the election of City Councilmembers utilizing Citywide Single Vote, whereby each voter in the 2026 City Council election, in order to elect the two City Council seats, will cast a single vote for City Council, and the two candidates receiving the highest number of single votes will be elected; and
WHEREAS, the City Council has determined it to be necessary and efficient to adopt an ordinance formally providing for the establishment and implementation of Citywide Single Vote.

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

SECTION 1. Findings. The recitals set forth hereinabove are hereby adopted as the findings of the City Council and the City Council makes the following additional findings of fact, and interpretations of City Charter and Municipal Code, in support of its adoption of this Ordinance:
a) Implementation of the Citywide Single Vote method of elections for San Luis Obispo City Councilmembers is consistent with the City Charter’s requirement that Councilmembers be elected “at-large” and does not require a Charter amendment.
b) San Luis Obispo City Charter Section 301 provides that, “Unless otherwise provided by ordinance hereafter enacted, all elections shall be held in accordance with the provisions of the Elections Code of the State of California, as the same now exists or may hereafter be amended” (emphasis added); c) San Luis Obispo Charter Section 301, and the California Constitution, expressly authorize the City Council to adopt ordinances providing for the conduct of its local municipal elections in a manner and pursuant to regulations that differ from otherwise applicable provisions of the California Elections Code. d) Adopting an ordinance providing for the implementation and administration of Citywide Single Vote and codifying this ordinance in the Municipal Code advances public transparency, compliance with the Stipulated Judgment, and clarity for voters, candidates, and election officials as to the manner and method of election of San Luis Obispo City Councilmembers and the direction of the Council as to applicable regulations for the conduct of elections for San Luis Obispo City Councilmembers under the Citywide Single Vote election method.
e) The regulations adopted herein are intended to be and shall be applied and interpreted, as directed by the City Council of the City of San Luis Obispo, by the City Clerk/Elections Official, the County Registrar of Voters/County

Ordinance No. 1754 (2026 Series) Page 3
O 1754
Elections Official (to the extent authorized by the County Board of Supervisors pursuant to Elections Code Section 10002), and/or any other elections official or personnel administering City of San Luis Obispo Council elections by or on behalf of the City of San Luis Obispo.

SECTION 2. Addition to Municipal Code. Chapter 2.38, “CITYWIDE SINGLE VOTE METHOD OF ELECTING CITY COUNCIL MEMBERS” is hereby added to the San Luis Obispo Municipal Code to read as follows:

Chapter 2.38

CITYWIDE SINGLE VOTE METHOD OF ELECTING CITY COUNCIL

MEMBERS
Section. 2.38.010 - Purpose
Section. 2.38.020 - City Council Elections by Citywide Single Vote Established Section. 2.38.030 - Mayor to Remain Separately Elected
Section 2.38.040 - Ballot Format and Instructions to Voters Section 2.38.050 - Authority as a Charter City
Section 2.38.060 - Liberal Construction and Severability Section 2.38.070 City Council Clarification or Technical Modification Section. 2.38.010 Purpose.

The purpose of this chapter is to establish and provide the means and methods for administration for the Citywide Single Vote election method for the election of City Councilmembers, consistent with the California Constitution, Article XI, the City Charter Articles III and IV, the California Voting Rights Act (Elections Code §§ 14025 et seq.), and the Stipulated Judgment entered in Southwest Voter Registration Education Project v. City of San Luis Obispo (San Luis Obispo Superior Court Case No. 24CV-0797, as it currently exists or may hereafter be amended from time to time, referred to as “Stipulated Judgment”, herein).

Section. 2.38.020 City Council Elections by Citywide Single Vote Established.

A. Notwithstanding any law to the contrary, beginning with the November 2026 general municipal election, and for all subsequent elections, unless subsequently modified by Charter amendment, court order, or Council action pursuant to this chapter and the Stipulated Judgment, elections for City Councilmembers shall be conducted using Citywide Single Vote, as set forth in this section.

B. The method of election for City Councilmembers shall be Citywide Single Vote as follows:

1. Each qualified voter in the City shall be entitled to cast one vote for one candidate from the group of qualified candidates for City Council.

2. The two candidates receiving the highest number of votes shall be elected.

Ordinance No. 1754 (2026 Series) Page 4
O 1754
Section. 2.38.030 Mayor to Remain Separately Elected.

There shall be no changes to the manner and method of election of the Mayor. Pursuant to City Charter Sections 402 and 404, the Mayor shall continue to be elected at-large by all City voters every two years, for a two-year term, and each qualified voter shall be entitled to cast one vote for Mayor.

Section 2.38.040 Ballot Format and Instructions to Voters.

A. Notwithstanding any law to the contrary, for City Council elections, the ballots shall be printed as follows:

1. The group of candidates to be voted on shall be preceded by the designation of office for which they seek election, stated as “San Luis Obispo City Council Member”

2. Following the designation of office to be voted on, but preceding the group of candidates for the office, the ballot shall include the instruction “vote for only one”

3. Under the group of candidates shall be printed one blank space, defined by a light line, so as to permit one write-in candidate as an alternative to selecting a candidate from the group listed on the ballot.

B. The City shall prepare materials for the official voter information guide to be presented to the elections official responsible for administration of the City Council election, whether separate or consolidated, that explain the Citywide Single Vote method of voting, including the limitation to vote for one candidate, that the two candidates receiving the most single votes will be elected, and that voting for more than one candidate will result in an “overvote” and will preclude the ballot with an overvote from being counted.

Section 2.38.050 Authority as a Charter City.

Pursuant to its authority as a Charter City, this Chapter is intended to and shall govern the presentation of candidates and voter instructions for San Luis Obispo City Council municipal elections, notwithstanding Elections Code Section 13210 or any other elections statute or regulation that would otherwise govern the subject matter of a City Council election, or that may conflict with this Chapter or otherwise interfere with or preclude the conduct of the Citywide Single Vote method of electing City Councilmembers as provided by this Chapter.

Section 2.38.060 Liberal Construction and Severability.

This chapter shall be liberally construed to promote its objects and the intention and direction of the City Council to implement and support the administration of its City

Ordinance No. 1754 (2026 Series) Page 5
O 1754
Council elections by the Citywide Single Vote method of election. No error, omission or irregularity shall invalidate an election if there has been substantial compliance with this chapter as determined by the City Council. If any section, subsection, sentence, or clause of this ordinance is for any reason held invalid, such decision shall not affect the validity of the remaining portions of this ordinance.

Section 2.38.070 City Council Clarification or Technical Modification.

The City Council may, by ordinance or resolution, provide such clarification, technical or procedural modification, or minor wording changes as may be deemed necessary or convenient to support and facilitate the administration of the Citywide Single Vote method of City Council elections, in consultation with the elections official administering City Council elections.

Ordinance No. 1754 (2026 Series) Page 6
O 1754
SECTION 4. A summary of this ordinance, together with the names of Council members voting for and against, shall be published at least five (5) days prior to its final passage, in The New Times, a newspaper published and circulated in this City. This ordinance shall go into effect at the expiration of thirty (30) days after its final passage.

INTRODUCED on the 13th day of January, 2026, AND FINALLY ADOPTED by the Council of the City of San Luis Obispo on the 20th day of January, 2026, on the following vote:

AYES:

NOES:

ABSENT:
__________________________
Mayor Erica A. Stewart
ATTEST:
_______________________
Teresa Purrington
City Clerk
APPROVED AS TO FORM:
_______________________
J. Christine Dietrick
City Attorney
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of San Luis Obispo, California, on ______________________. ___________________________
Teresa Purrington
City Clerk

Item 6a
Department: Administration
Cost Center: 1001
For Agenda of: 1/20/2026
Placement: Business
Estimated Time: 25 minutes
FROM: Greg Hermann, Deputy City Manager
Prepared By: Natalie Harnett, Policy and Project Manager SUBJECT: 2025 STATE LEGISLATIVE BRIEFING

RECOMMENDATION

1. Receive and file a report on the 2025 State Legislative Briefing which summarizes the adopted laws from the 2025 regular session of the California State Legislature (December 2024 through October 2025); and

2. Consider appointing an ad-hoc committee of the City Council to review the current legislative platform and suggest changes for the 2026 legislative session.

REPORT-IN-BRIEF
The 2025 legislative session was shaped by two major statewide events: a new federal administration, which created federal policy and funding uncertainty for California, and the devastating Palisades and Eaton fires that killed 31 people and destroyed more than 11,000 homes. These events accelerated legislative action on wildfire resilience, insurance, and emergency preparedness, but also contributed to a challenging state budget environment marked by a $11.8 billion deficit.

Throughout the session, cities faced significant policy proposals across numerous issue areas. One of the most consequential bills, SB 79 (Wiener), originally sought sweeping preemptions of local land-use authority by giving transit agencies approval power over housing projects. After strong opposition from more than 180 cities (including San Luis Obispo), the bill was substantially narrowed, though it remains a clear indicator of ongoing state pressure on local housing control. Additional high-impact measures included SB 346 (Durazo), which strengthens enforcement against illegal short-term rentals, and SB 707 (Durazo), the most substantial Brown Act update in years, offering expanded virtual meeting access for the public while imposing new mandates on local agencies.

In direct response to the year’s catastrophic fires, the Legislature advanced major wildfireresilience and home-hardening bills, including AB 1 (Connolly), SB 616 (Rubio), and AB 888 (Calderon). Lawmakers also addressed critical public infrastructure impacts by enacting AB 476 (Gonzalez) to combat the rising threat of metal theft.

This briefing provides an overview of the most significant state actions from the 2025

Item 6a
legislative session and their implications for the City. The report also recommends that the City Council consider appointing a two-member ad-hoc committee to review and update the City’s Legislative Platform for the 2026 cycle to ensure the City remains aligned with evolving state policies, mandates, and funding opportunities.

POLICY CONTEXT
According to Section 3.9 of the Council Policies and Procedures Manual, the City implements a proactive legislative program aimed at strengthening local governance, advancing City objectives, and opposing state and federal legislative actions that could undermine local authority or reduce traditional revenue sources. At the conclusion of each legislative cycle, staff compile a legislative briefing designed to enhance understanding of new State laws affecting the City and to inform the community and Council about significant legislative trends. This briefing also supports updates to the Legislative Platform for the upcoming Legislative Calendar Year. The City Council adopted the current Legislative Platform on April 15, 2025.

DISCUSSION
Background
Lawmakers introduced more than 2,300 bills during the 2025 legislative session.

Approximately 900 reached the Governor’s desk, of which 794 were signed and 123, or about 13%, were vetoed. Most enacted laws took effect on January 1, 2026, although urgency measures became effective immediately. Each year, thousands of bills carry potential impacts for local governments, and City staff rely on the League of California Cities (Cal Cities) to track and analyze these impacts as well as advocate in the best interest of the City. In 2025, Cal Cities sponsored 15 bills, six of which were signed into law. The City submitted 38 advocacy letters during the session; copies of those letters can be found here.

Cal Cities also published its annual Legislative Report, which provides a comprehensive overview of bills signed by the Governor and their implications for cities statewide. Staff has reviewed the report and prepared this briefing to highlight the most significant legislative changes affecting the City of San Luis Obispo.

This report summarizes newly enacted state laws that have direct or potential impacts on City operations, initiatives, and Council priorities. It also references relevant pages of the Cal Cities Legislative Report for additional detail. While not exhaustive of all introduced or enacted legislation, the report focuses on the measures most pertinent to the City’s work in the coming year.

Budget and Trailer Bills
The 2025–26 State Budget was adopted amid an $11.8 billion deficit and although it is technically balanced, it relies heavily on borrowing, deferrals, and reserve spending. This

Item 6a
inevitably pushes several structural issues into future fiscal years. Under the November 2025 revenue and spending estimates, the Legislature faces an almost $18 billion budget problem in 2026‑ 27. This is about $5 billion larger than the budget problem anticipated by the administration in June.

Despite objection from cities, the state eliminated 2025-26 funding for the Homeless Housing, Assistance, and Prevention (HHAP) Grant Program, which supports regional homelessness services and had downstream impacts on our community. Between 2019 and 2025, the County received more than $10 million in HHAP funding, and the loss of funding in 2025-26 forced the County to make program reductions, although most services were temporarily sustained using other funding sources as a stopgap measure.

Following significant advocacy from local governments, the Legislature partially restored HHAP funding beginning in 2026.

The Infill Infrastructure Grant (IIG) Program was also cut. While the City has not received IIG funding, it has been identified as a potential funding source for infrastructure supporting housing projects. The City previously applied unsuccessfully for IIG funding in 2019 for the Prado Road Interchange project.

Cal Cities successfully advocated to protect Proposition 4 climate and resilience funding.

The Governor and Legislature not only preserved the Prop 4 bond proceeds but increased the first allocation to $3.287 billion. Cities may be able to pursue this funding for eligible projects related to safe drinking water, climate resilience, wildfire mitigation, extreme heat, and outdoor access.

Overall, the 2025–26 budget environment indicates that cities will need to plan for tighter state funding and position themselves early to compete for a smaller pool of statewide funding.

Community Services, Behavioral Health, and Homelessness Cal Cities secured two major wins on substance use recovery housing oversight through AB 424 and AB 492, which strengthen state oversight of treatment facilities and require DHCS to notify cities when new licenses are approved. Early notification improves coordination across Code Enforcement, Fire, Police, and Planning and provides better visibility into licensed and unlicensed sober living operations.

AB 348 makes it easier for people with serious mental illness, including those returning to the community after time in jail or prison, to qualify for intensive county behavioral health services. This is generally beneficial for cities because it means more people will receive treatment, housing support, and case management from the County, which can help reduce local impacts related to untreated mental illness and improve overall community safety and stability.

AB 543 allows Medi-Cal health plans to provide “field medicine” for people experiencing homelessness. Field medicine means bringing medical care directly to people where they

Item 6a
are (e.g. in encampments, on the street, or in shelters) instead of requiring them to visit a clinic or hospital. For cities, this could strengthen connections between unsheltered residents and medical services, reduce emergency response strain, and support more consistent access to treatment for people who may struggle to reach traditional healthcare settings.

SB 27 expands eligibility for Community Assistance, Recovery, and Empowerment (CARE) Court Program to include mood disorders with psychotic features, in addition to schizophrenia spectrum and other psychotic disorders. The bill also requires CARE Court referrals for misdemeanor incompetent to stand trial defendants. The changes outlined in this bill will provide more opportunities for City outreach staff to petition for individuals who would benefit from the CARE Court program. Since the program’s inception, the City’s Community Action Team (CAT) has submitted two CARE Court petitions; however, they have not been successful. Expanding the bill will hopefully make the program more accessible and effective, which will have a positive impact on local jurisdictions working to connect individuals with severe mental illnesses to needed services and resources.

SB 748 does not create new mandates on cities, but it does require more detailed information when applying for state Encampment Resolution Funding. This means applications may require more staff time to prepare, especially when submitting funding proposals related to safe parking programs. However, the bill’s intent is to improve statewide evaluation and help identify which strategies actually work, which can ultimately benefit cities by making future funding programs more effective and evidence-based.

Finally, SB 753 strengthens local authority to address abandoned shopping carts by expanding cost-recovery tools and increasing fines for repeat violations. While the City already has a Shopping Cart Ordinance, this bill would allow higher penalties and additional enforcement options. These changes are elective and the City will evaluate whether or not changes to the ordinance should be adopted.

Table 1: Community Services, Behavioral Health, and Homelessness bill summary table. Page # references the Cal Cities Legislative Report.

Bill # and Author Title Page #
AB 424 (Davies) Alcohol and other drug programs: complaints. 17 AB 492 (Valencia) Alcohol and drug programs: licensing. 17 AB 348 (Krell) Full-service partnerships. (Jan 2027) 16 AB 543 (Gonzales) Medi-Cal: field medicine. 23
SB 27 (Umberg) Community Assistance, Recovery and Empowerment (CARE) Court Program
19 SB 748 (Richardson) Encampment Resolution Funding program: safe parking sites: reporting.
25 SB 753 (Cortese) Special business regulations: shopping carts. 25

Item 6a
Environmental Quality
The 2024 warehouse law1 clean-up bill was finally passed as SB 415, resolving several implementation issues raised by cities. Because the City is not located in a designated “warehouse concentration region,” it is not subject to the bill’s warehouse-region–specific mandates, including the requirement to update the City’s circulation element by 2026. For cities not located in warehouse concentration regions, SB 415 includes statewide requirements only if a qualifying development is proposed and these provisions can be adopted by ordinance before 2030.

AB 1207 updates and extends California’s Cap-and-Trade (now “Cap-and-Invest”) program through 2046 and directs the Air Resources Board to reduce emissions in ways that also consider household affordability. It creates a new rebate fund to help lower energy costs, increases legislative oversight of climate spending, and updates how electric utilities apply climate credits to customer bills. It also redirects a portion of utility climate revenues to strengthen the state’s electric transmission system and requires utilities to report how those dollars are used. For the City, this measure is good news and aligns with the Climate Action and Resiliency Major City Goal by reinforcing the state’s long-term emissions-reduction framework and channeling resources toward energy affordability and grid improvements. The bill is not anticipated to have an impact on customers or affect any 3CE programs.

SB 840 complements AB 1207 by restructuring how Cap-and-Invest revenues are allocated, with a priority-based system that channels funding into clean transportation, housing, wildfire resilience, and clean energy, aligning with the City’s climate and resiliency goals.

The legislature spent much of the session focused on energy affordability. Most notable, SB 254 makes various policy changes related to electrical corporations, among them, authorizing public financing and ownership of electric transmission infrastructure, addressing both wildfire mitigation spending and financing and liability of wildfire property claims; permitting of clean energy projects; providing transparency of electrical corporations’ return on equity; enforcement of timeliness of energization projects; and prohibiting large electrical corporations from including certain expenditures in their equity rate base. AB 825 expands the market for California’s renewable energy resources by initiating the creation of a western regional grid. Both items are important for the City and Central Coast Community Energy’s goals related to affordable and accessible carbon neutral electricity supply.

The legislature also passed two bills related to resilience to extreme heat and providing regulatory certainty around heat pump HVAC system installations. AB 806 nullifies any covenant, or condition that restricts installing or using cooling systems in a mobile home.

SB 655 establishes a state policy goal that all dwelling units maintain a safe indoor air temperature and directs all state agencies (e.g., HCD, CPUC, etc.) to consider this when

1 AB 98 (Carrillo, 2024) or the “warehouse law” was a last-minute bill that was highly contested by cities and established statewide operational standards for large warehouse logistics facilities. It reduced local discretion over land use decisions and put unfunded administrative responsibilities on cities.

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developing and updating their programs and regulations, which would be implemented and enforced by those agencies.

Table 2: Environmental Quality bill summary table. Page # references the Cal Cities Legislative Report.

Bill # and Author Title Page #
SB 415 (Reyes) Planning and zoning: logistics use developments: truck routes.
28 AB 1207 (Irwin) Climate change: market-based compliance mechanism:
extension.
31 SB 840 (Limón) Greenhouse gases: Greenhouse Gas Reduction Fund:
studies.
33, 118
AB 825 (Petrie-Norris) Independent System Operator: Independent Regional Organization.
35 AB 806 (Connolly) Mobilehomes: Cooling Systems. 70
SB 655 (Stern) Dwelling Units: Indoor Temperature. 72
SB 254 (Becker) Energy: Energy Affordability. 107
Housing, Community, and Economic Development
State housing mandates remained a dominant theme in 2025, with more than 100 housing bills introduced, most with the intent to boost housing production. SB 79, a bill promoting housing in transit-adjacent areas, drew significant attention and initially proposed concerning preemptions of local zoning authority. After significant opposition from more than 180 cities, the bill was narrowed and will apply only to “urban transit counties,” which are large, rail-served counties with at least 16 passenger rail stations.

San Luis Obispo County does not meet these criteria, so the bill’s Transit Oriented Development (TOD) requirements, density mandates, and by-right approvals do not apply to the City.

AB 130, together with SB 131 (below) significantly streamlines the environmental review process otherwise required for housing projects. AB 130 allows a statutory exemption for qualifying “infill” housing projects from requirements of the California Environmental Quality Act (CEQA). Unlike some other streamlining laws, eligibility is not tied to wage requirements or affordability. The new legislation also imposes a 30-day deadline for agencies to act to approve or disapprove a qualifying project, starting after the Tribal consultation process is complete. The project must be consistent with local zoning standards and the jurisdiction’s General Plan with some exceptions provided through Density Bonus Law. AB 130 also established a statewide Vehicle Miles Traveled (VMT) mitigation band2to allow developers to satisfy transportation-related CEQA mitigation requirements. Beyond streamlining CEQA, the bill freezes most local building code updates, with exceptions including wildfire mitigation and amendments that implement a greenhouse gas emissions reduction strategy. It also enacts legally binding deadlines for local agencies to act on qualifying housing applications.

2 “Mitigation band” means the state has set a pre-defined acceptable range for transportation impacts, measured using VMT. If a housing project falls within that range, it is presumed to have adequately mitigated its transportation impacts for CEQA purposes.

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SB 131 complements AB 130 by limiting CEQA review for housing projects that narrowly fail to qualify for an exemption. Under SB 131, projects that otherwise would have qualified for an exemption from CEQA “but for a single condition”, may now be reviewed under CEQA solely for that single condition and the housing project would not be required to include discussion of other impact areas or alternatives. The bill also provides several other statutory exemptions from CEQA for qualifying non-housing projects such as day care centers and advanced manufacturing facilities.

AB 507 establishes a statewide, by-right approval process for adaptive reuse projects that convert existing commercial or non-residential buildings into housing. Beginning July 2026, qualifying projects must be approved ministerially and are exempt from CEQA, provided they meet the bill’s affordability, historic preservation, and labor requirements.

The requirements outlined in state law, including the affordability and labor requirements, may reduce the utilization of this state law in the City, as similar provisions in other laws have generally been difficult for developers to comply with.

AB 893 will have limited but meaningful impacts, particularly in areas within one-half mile of Cal Poly. The bill updates the existing “Affordable Housing and High Road Jobs Act” (2022) to make it easier for qualifying mixed-income or affordable housing projects to receive fast, ministerial approvals that are exempt from CEQA. As a result, more projects on commercially zoned or mixed-use parcels in the city may now qualify for this streamlined process. The bill also extends eligibility to projects within newly defined “campus development zones,” which could make future housing proposals on commercially zoned parcels adjacent to Cal Poly more likely to proceed through ministerial review rather than discretionary hearings.

AB 1061 updates SB 9’s ministerial housing rules to clarify that projects may be approved on parcels near or adjacent to a historic district as long as the parcel itself or its structures are not historic. The bill also allows the City to adopt objective design standards to ensure new SB 9 units are compatible with the look and feel of a nearby historic district, but the City cannot prohibit the project solely because of its proximity to that district.

AB 1308 updates routine residential building inspections into a legal deadline under the Housing Accountability Act, requiring the Building Division to inspect residential projects with fewer than ten units within ten business days of receiving a notice of completion for permitted work. A local agency’s failure to complete the inspection within this timeframe constitutes a violation of the Housing Accountability Act. The City generally is staffed to allow next day inspections, with a few exceptions, so it is unlikely that this will impact the City at this time, however, staff will continue to monitor development activity and inspection times to ensure compliance.

SB 358 requires cities, on a project-by-project basis, to lower traffic impact fees for certain transit-oriented housing developments that are also within a certain distance of at least three everyday destinations (e.g., grocery stores, schools, etc.) and have limited parking. It is unlikely that many projects within the City would satisfy all the bill’s applicability thresholds; nevertheless, the City would assess applicability on a project-byPage 99 of 198 Item 6a
project basis. Cities can continue charging the normal traffic impact fee if they make findings that the development would not reduce vehicle trips.

AB 1154 updates California’s Junior ADU (JADU) requirements by limiting owneroccupancy requirements only to cases where the JADU shares a bathroom with the primary dwelling. The bill also requires that JADUs be rented for terms longer than 30 days, which is consistent with City regulations.

AB 1008 authorizes up to ten (10) new on-sale general liquor licenses for San Luis Obispo County, to help address the long-standing shortage of available licenses in a growing tourism market. Although the City did not take a position on the bill, it is important to local businesses, many of whom have expressed concern about limited access to full-alcohol licenses. The new licenses can only be issued to bona fide public eating places, cannot be transferred outside the county, and cannot be resold for more than the original fee.

For the City, the measure should improve access to licenses, support restaurant and downtown economic activity, and ease pressure on the expensive secondary market, with minimal administrative impact since ABC manages issuance.

SB 456 makes a small but meaningful change to contractor licensing laws by exempting muralists from needing a contractor’s license when creating, restoring, or conserving a mural with the property owner’s permission. In recent years, the City paused new painted murals because existing law required artists to hold a contractor’s license, and there were very few muralists who met that requirement. As a result, the City relied on alternatives such as vinyl wraps on utility boxes. SB 456 removes this barrier, making it easier for local artists, businesses, and community groups to pursue murals and supporting the City’s public art goals, with minimal impact on staff procedures.

Table 3: Housing, Community, and Economic Development bill summary table. Page # references the Cal Cities Legislative Report.

Bill # and Author Title Page #
SB 79 (Wiener) Housing development: transit-oriented development. 65 AB 130 (Committee on
Budget)
Housing. 7, 125
SB 131 (Committee on
Budget and Fiscal Review)
Public Resources 9, 115
AB 507(Limón) Adaptive reuse: streamlining: incentives 67 AB 893 (Fong) Housing development projects: objective standards:
campus development zone.
62 AB 1061 (Quirk-Silva) Housing developments: urban lot splits: historical resources.
63 AB 1308 (Hoover) Residential Building Permits: Inspections: Housing Accountability Act
72 SB 358 (Becker) Mitigation Fee Act: mitigating vehicular traffic impacts. 70 AB 1154 (Carillo) Junior accessory dwelling units. 69
AB 1008 (Addis) Alcoholic beverages: licenses: County of San Luis Obispo
--
SB 456 (Ashby) Contractors: exemptions: muralists. 16

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Governance, Transparency, and Labor Relations
Governance, transparency, and labor-related legislation remained a significant focus in 2025, with several bills aimed at expanding public access, strengthening meeting requirements, and updating workforce practices. One of the most impactful for cities is SB 707, which introduces major changes to public meeting procedures beginning July 1, 2026. While these requirements will apply only to the City Council based on San Luis Obispo’s size, they will still require updates to remote participation, technology policies, and meeting management. Fortunately, the City is already well-positioned to comply due to existing infrastructure and experience, although renewed remote access will bring challenges such as managing the risk of virtual meeting disruption, commonly referred to as “Zoom bombing”. Staff plan to develop policies to mitigate potential impacts to the extent feasible and anticipate bringing an item to the City Council in May 2026 to provide an update and seek approval of teleconferencing-related policies.

AB 339 requires public agencies, beginning January 1, 2026, to provide recognized employee organizations with at least 45 days’ written notice before issuing an RFP, RFQ, or before extending any contract for services that fall within the scope of work performed by represented job classifications. The notice must include details such as contract duration, scope, anticipated costs, and the agency’s justification for contracting out the work. The bill includes exceptions for public works and certain technical services, and in emergencies agencies must provide notice as soon as practical. Existing, more restrictive labor agreement terms will continue to apply.

SB 827 expands state training requirements for local officials by adding new mandatory ethics and fiscal/financial training. For the City, this means that beginning January 1, 2026, more City positions, including department heads and other “financial decisionmaking officials” must complete ethics training within six months of taking office and every two years thereafter. The bill also creates a new requirement for these positions to complete two hours of fiscal and financial management training, although this portion does not take effect until January 1, 2028. The City is already largely aligned with the updated ethics-training rules through its 2024 adoption of Resolution 11515, and existing systems like NetFile can likely support the expanded requirements. Staff will need to update internal tracking and ensure all required positions are enrolled, but overall, the City is well-positioned to comply.

AB 538 requires the City to obtain certified payroll records from contractors whenever a member of the public requests them and the City does not already have them. Contractors must provide the records within ten days or face penalties from the Labor Commissioner.

For the City, this adds a small administrative responsibility to request and relay these records but does not create major operational changes.

Table 4: Governance, Transparency, and Labor Relations bill summary table. Page # references the Cal Cities Legislative Report.

Bill # and Author Title Page #
SB 707 (Durazo) Open meetings: meeting and teleconference 57,119

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requirements.

AB 339 (Ortega) AB 339: Local public employee organizations: notice requirements.
49 SB 827(Gonzalez) SB 827: Local agency officials: training. 53 AB 538 (Berman) AB 538: Public works: payroll records. 99 Public Safety
In 2024, retail theft and illegal drug use were on top of the public safety priority list. In 2025, the focus was wildfire resilience and stabilizing the insurance market. The Legislature and Governor advanced a wide-ranging package of actions, including emergency funding, executive orders, and roughly 100 wildfire-related bills addressing disaster response, preparedness, financial assistance, insurance reform, and home hardening (see Briefing Book, p. 151, for full detail). As implementation of these packages moves forward, the City can explore Safe Homes and Risk Mitigation grant programs as potential funding sources for local home-hardening and community-risk-reduction efforts.

Budget Actions:
 ABX1 4 (Gabriel) appropriated up to $1.5 billion from the Disaster Response– Emergency Operations Account for wildfire response and recovery.  SBX1 3 (Wiener) authorized an additional $1 billion for disaster response, plus grants for expedited rebuilding ($4M) and school district recovery ($1M).  In July, the Legislature adopted AB 130, making changes to building standards following the fires.

Insurance Response: The Department of Insurance finalized catastrophe-modeling regulations in early 2025 to stabilize the homeowners’ insurance market and encourage insurers to return to California.

Zone 0 Regulations: Following a March 2025 executive order from the Governor, the Board of Forestry accelerated work on Zone 0 defensible-space regulations (the 0–5 ft. area around structures). Draft rules—which would apply immediately to new construction and phase in over three years for existing homes in Very High Fire Hazard Severity Zones—prohibit combustible materials, wood fencing, vegetation, and other firevulnerable items within this zone. Adoption is now expected in early 2026 after extensive public comment.

Legislative Outcomes: By the end of the 2025 session, 40 wildfire-related measures were enacted, including:

AB 1 – Safer From Wildfires Expansion: Directs the Department of Insurance to expand recognized home-hardening and community-mitigation standards that insurers can use when offering premium discounts. Although this bill does not provide funding, it strengthens the link between mitigation and insurance availability.

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AB 888 – California Safe Homes Grants: Creates a grant program to help homeowners complete wildfire-safety upgrades. Priorities include roof replacements, 5-foot noncombustible zones, projects that reduce community-wide risk. The intent of this goal is to reduce losses, improve insurability, and help residents qualify for premium incentives.

SB 429 – Wildfire Safety & Risk Mitigation Program: Uses advanced catastrophe modeling to identify highest-risk areas and provides grants for regional wildfire-risk-reduction projects.

Outside of wildfire response, there were a couple other notable Public Safety related bills.

AB 379 strengthens tools to combat prostitution and human trafficking by creating new criminal charges, increases penalties for businesses that enable trafficking, and requires certain establishments to post trafficking information.

AB 992 requires future peace officers in California to complete a college degree or approved certificate within a set timeframe after earning a POST Basic Certificate. For the City of San Luis Obispo, this will raise education requirements for new SLOPD officers starting in 2031. Police Officer recruitment is already challenging, and this bill will likely make recruitment more difficult by narrowing the entry-level applicant pool. Human Resources will also need to update job specifications, onboarding materials, and tracking systems to ensure compliance.

SB 19 expands existing criminal threat laws to cover threats made, including online, against specific locations like daycares and workplaces. It makes these threats a “wobbler” offense for adults, meaning they can be charged as either a misdemeanor or felony, depending on the case. Minors who make such threats are directed to services instead of court when eligible.

AB 8 significantly tightens California’s rules on industrial hemp by banning most hempderived cannabinoids in food, drinks, supplements, and inhalable products unless they meet strict purity standards. By doing this, it shifts many intoxicating hemp-derived cannabinoid products into the state’s legal cannabis regulatory and tax framework. The effects will be more notable in other US states, but it will likely increase enforcement responsibilities for SLOPD and Code Enforcement as local retailers are required to remove noncompliant hemp or THC-like products, including those sold in smoke shops and wellness stores. Although AB 8 expands the cannabis excise tax to certain hempderived items, it is not anticipated to generate significant revenue and primarily affects the City through compliance monitoring, retailer education, and potential enforcement workload.

SB 701 makes it illegal to manufacture, import, sell, purchase, or operate a signal jammer3 without FCC authorization, creates enhanced penalties when jammers are used during crimes, and allows felony charges if a jammer is used to block public-safety

3 A signal jammer is a device that blocks or interferes with wireless communications. It works by sending out radio frequencies that overwhelm or disrupt the normal signals used by phones, Wi-Fi, GPS, or other wireless systems.

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communications and someone is seriously injured or killed. For the City of San Luis Obispo, the bill gives SLOPD clearer authority to seize jammers and prosecute their use, helps protect police, fire, and EMS radio systems from interference, and may slightly increase enforcement workload without state reimbursement, while providing a stronger deterrent against criminals attempting to disable alarms, GPS, or emergency communications.

Table 5: Public Safety bill summary table. Page # references the Cal Cities Legislative Report.

Bill # and Author Title Page #
AB 1 (Connolly) Residential property insurance: wildfire risk. 86 AB 888 (Calderon) California Safe Homes grant program. 88,136 SB 429 (Cortese) Wildfire Safety & Risk Mitigation Program 87 AB 992 (Irwin) Peace officers. 90
SB 19 (Rubio) Crimes: threats. 82
AB 8 (Aguiar-Curry) Cannabis: cannabinoids: industrial hemp. 79 SB 701 (Wahab) Signal jammers. 83
Revenue and Taxation
With cities facing fiscal uncertainty and housing pressures, SB 346 (Durazo) emerged as one of Cal Cities’ most important sponsored bills of the year. The measure targets illegal short-term rentals and strengthens cities’ ability to ensure proper transient occupancy tax (TOT) collection, helping recover revenue that often goes uncollected today. While the bill does not automatically change local enforcement practices, it authorizes cities to adopt ordinances that expand their enforcement tools.

The City currently has agreements with certain short-term rental platforms like Airbnb to facilitate transient occupancy tax collection, which helps address a portion of compliance concerns. However, this bill is focused on providing cities with clearer authority to require additional platform cooperation, including access to listing-level information. Staff are reviewing how these new authorities align with the City’s existing homestay ordinance and what amendments may be needed to fully leverage them. Because the City currently lacks access to this information, the full compliance or revenue gap is difficult to quantify.

SB 346 is an important step toward greater transparency and equity in the short-term rental market. Community Development and Finance staff will work with its third-party compliance partner, Rentalscape, to determine how best to use the new tools to identify and address compliance issues.

SB 710 extends and clarifies California’s long-standing property-tax exclusion for active solar energy systems, ensuring that installing or adding solar equipment does not trigger a property-tax reassessment until a future change in ownership. For the City of San Luis Obispo, this means continued support for residential and commercial solar adoption without increasing assessed property values, which aligns with local climate-action goals but slightly limits future property-tax growth tied to solar improvements.

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Table 6: Revenue and Taxation bill summary table. Page # references the Cal Cities Legislative Report.

Bill # and Author Title Page #
SB 346 (Durazo) Local agencies: transient occupancy taxes: short-term rental facilitator.
97 SB 710 (Blakespear) Property taxation: active solar energy systems. 38,94 Transportation, Communications, and Public Infrastructure AB 382 provides more flexibility for local agencies to adopt reduced speed limits of 15 or 20 mph in designated school zones, which previously required a formal engineering study to justify that higher limits were “more than reasonably safe”. Appropriate signage is still required to designate these reduced limits, which can only be applied during specific hours before/after school or “when children are present”, and within a limited distance from a school campus.

AB 476 strengthens statewide efforts to combat copper and other metal theft by tightening regulations on junk-dealers and recyclers and expanding the list of protected publicinfrastructure materials, such as streetlight wiring, traffic-signal components, and EVcharging equipment. The bill requires sellers of scrap copper to hold a valid license and mandates more detailed record-keeping, making it harder to resell stolen materials and easier for law enforcement to track illicit transactions. While more prevalent in bigger cities, the City of San Luis Obispo has experienced an uptick in metal theft in recent years which can lead to costly repairs. By increasing penalties and improving traceability, AB 476 provides stronger tools to deter theft, support enforcement, and protect the City’s public infrastructure investments.

AB 394 expands existing protections against assault, battery, stalking, and harassment to explicitly cover all employees and contractors of public transportation providers, including third-party operators such as TransDev, which the City relies on to operate its transit system. This legislation was identified as particularly important for San Luis Obispo, as Transit staff have experienced several incidents over the past 18 months and drivers have expressed that current laws offered limited options to ensure their safety.

The bill broadens who qualifies as a “transit worker,” increases criminal penalties for assault or battery against these workers, and allows employers or labor representatives to seek temporary workplace restraining orders or injunctions on their behalf.

SB 333, sponsored by the San Luis Obispo Council of Governments (SLOCOG), exempts the region from the state’s 2% local sales tax cap and allows SLOCOG to seek voter approval for a countywide transaction and use tax of up to 1% for transportation needs.

The bill gives SLOCOG and its member agencies, including the City of San Luis Obispo, access to revenue capacity that would otherwise be unavailable under state law given that many cities already have a local transaction tax above 1%. SB 333 itself does not raise taxes; any increase would require SLOCOG to place a measure on the ballot before 2032 and secure voter approval.

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Table 7: Transportation, Communications, and Public Infrastructure bill summary table. Page # references the Cal Cities Legislative Report.

Bill # and Author Title Page #
AB 382 (Berman) Pedestrian Safety: School Zones: Speed Limits 117 AB 476 (Gonzalez) Metal theft. 3, 99
AB 394 (Wilson) Public transportation providers. 81
SB 333 (Laird) Transactions and use taxes: San Luis Obispo Council of Governments.
96 Looking Forward to 2026
The 2026 session will open in a challenging environment, marked by a projected $15–20 billion state deficit, uncertainty around federal actions, continued cost-of-living pressures, renewed focus on housing production and CEQA reform, and potential shifts in statewide leadership following the gubernatorial election. Cal Cities’ 2026 Advocacy Priorities are included below for reference and will be considered when updating the City’s Legislative Platform:

1. Protect and enhance local revenues and expand economic development tools.

2. Strengthen partnerships with the state to improve public safety.

3. Secure investments to prevent and reduce homelessness and increase the supply of affordable housing.

4. Strengthen climate change resiliency and disaster preparedness.

Legislative Platform and Ad-Hoc Committee Process
The City’s Legislative Platform outlines the City’s positions on issues at the county, state, and federal levels and communicates to legislators, policymakers, and the public where the Council stands on important policy matters. It also serves as an internal tool to ensure that the Council and staff are aligned, allowing the City to respond quickly and consistently in support of or opposition to legislative or regulatory actions that could impact the community. The Platform is reviewed and updated annually at the start of each legislative year so that it can adapt to changing conditions and emerging priorities.

To support this work, the Council has historically appointed a two-member ad-hoc committee to review the Legislative Platform alongside staff and recommend updates.

The committee is temporary, formed for the specific purpose of reviewing and refining the Platform, and disbands once its work is complete. The updated Legislative Platform is scheduled to return to Council for adoption on April 7, 2026.

This meeting provides the opportunity for Council to appoint the ad-hoc committee. If the Council chooses not to form a committee, staff will prepare recommended updates and return with a draft Legislative Platform for Council review and direction in April 2026.

Previous Council or Advisory Body Action
The last Legislative Briefing before City Council occurred on January 25, 2025. The City Council annually reviews its Legislative Platform, which was last reviewed and approved at the April 15, 2025 City Council meeting.

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Public Engagement
This is an educational item for the benefit of City Council, so no outside public engagement was completed. Public comment can be provided to the City Council through written correspondence prior to the meeting and through public testimony at the meeting.

CONCURRENCE
In preparing the 2026 Legislative Briefing to City Council, input was solicited from all City Departments. This report includes an overview of critical bills and the impacts they have on departments and Major City Goal work efforts.

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

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

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

Total N/A N/A N/A N/A
The action before Council does not have a fiscal impact. As noted in the report, there are several areas where State legislation may impact City work efforts or service delivery.

These changes could impact the City’s budget and, if so, those impacts will be identified at the point at which new processes are implemented and incorporated into the appropriated budget and paid for through the department budget that leads the effort.

ALTERNATIVES

1. Council could decide not to create an ad-hoc committee and instead direct staff to make recommended updates. In this alternative, staff would incorporate recommendations from Cal Cities and other relevant sources to update the legislative

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platform. The draft 2025-26 Legislative Platform would then be presented to the Council for approval in April 2026.

2. Council could decide not to create an ad-hoc committee and continue with the current legislative platform. If this alternative is chosen, there may be changes in policy landscape that are not addressed in the current platform.

3. Council could decide not to adopt a legislative platform. Under this alternative, the City would not be able to write letters or reach out to legislators on key issues without requesting review and approval of the letters by Council each time. This would limit the impact that the City might have on pending legislation due to the time constraints on fast-moving bills and issues. Adopting a legislative platform is considered a best practice.

City of San Luis Obispo, Council Memorandum
City of San Luis Obispo
Council Agenda Correspondence
DATE: January 20, 2026
TO: Mayor and Council
FROM: Whitney McDonald, City Manager
Prepared By: Natalie Harnett, Policy and Project Manager SUBJECT: ITEM #7b – COUNTY INVITATION TO JOIN LETTER REQUESTING

LEGISLATION RELATED TO DCPP
Staff received the following questions, regarding the County of San Luis Obispo’s Invitation to join on a letter requesting legislation related to Diablo Canyon Power Plant.

The questions are below with staff’s response shown in italics:
1) Do we know what other jurisdictions/CSDs were asked to sign onto this letter proposed by the County? Was it just the seven cities, or were there other entities approached to sign? Have all those other entities decided to sign? Below is the list of agencies contacted by the County of San Luis Obispo, along with each agency’s response to the invitation.

Agency Date of Decision/notes
City of SLO January 20
Paso Robles January 14. Approved
City of Arroyo Grande Jan 13. Approved
City of Grover Beach Jan 12. Approved
Cayucos Sanitary District January 15. Approved
Los Osos CSD January 8. Approved
Oceano CSD Approved
City of Atascadero Approved
Templeton CSD Approved
APCD Approved
City of Morro Bay January 28
City of Pismo Beach Approved
San Luis Coastal USD Approved
Nipomo CSD No response
Cambria CSD No response
San Miguel CSD No response
Heritage Ranch CSD No response
Coast USD No response

ITEM # 7b – County Invitation to Join Letter Requesting Legislation Related to DCPP Page 2 2) Is the county willing to accept suggestions or changes to the letter? The County has said it would depend on what those changes are, but it would be unlikely that they would make substantive changes since so many agencies have already approved the letter as-is.
3) If we opted to write our own letter, what would that process be? Is there a timeframe within which this approach would be optimal, if we decided to go this direction?
If the Council chooses to submit its own letter, staff will draft it consistent with the City’s adopted Legislative Advocacy Platform, previously approved guiding principles, prior letters on the matter, and/or other direction provided by Council.

Advocacy letters are typically prepared by staff and reviewed and signed by the Mayor on behalf of the City Council. If the Council wishes to include any additional or specific elements, it may provide direction to staff as part of the action on this item. The County has advised that the letter should be submitted by the end of January.

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Department: Administration
Cost Center: 1002
For Agenda of: 1/20/2026
Placement: Business
Estimated Time: 20 Minutes
FROM: Whitney McDonald, City Manager
Prepared By: Natalie Harnett, Policy and Project Manager SUBJECT: CONSIDER INVITATION TO JOIN LETTER FROM THE COUNTY OF SAN

LUIS OBISPO REQUESTING STATE LEGISLATION RELATED TO

DIABLO CANYON POWER PLANT

RECOMMENDATION
Receive the County of San Luis Obispo’s invitation to join a request for State legislation related to the Diablo Canyon Power Plant and provide direction to staff regarding participation in the letter drafted by the County.

POLICY CONTEXT
The City Council annually adopts a Legislative Action Platform (“Legislative Platform”) that establishes the City’s positions on legislative matters of importance. It does not extend to advocacy for or against any individual project, program, or entitlement application unless specifically noted. In this case, the City has received a request to join in efforts to seek legislative support on a part of an issue not included in the current Legislative Platform, and the matter is therefore being presented to the Council for direction.

DISCUSSION
On Monday, December 22, 2025, the City Manager received an email from the County of San Luis Obispo’s (“County”) Assistant Executive Officer, following direction from the County Board of Supervisors provided as part of an item added to the consent agenda during its meeting held on December 16, 2025. The email included a County-led draft legislative letter (Attachment A) requesting State legislation related to the continued operation of the Diablo Canyon Power Plant (DCPP), coastal land conservation, and restoration of unitary tax treatment. The County is inviting all agencies that have received DCPP unitary tax revenues to join a coalition in support of submitting the letter to the California State Legislature. Participation would include inclusion of the City’s name and/or logo on the letter and identification of a leadership point of contact.

While portions of the County’s draft letter align with the City’s adopted Legislative Platform, the Platform does not authorize the City to take a formal position on whether DCPP’s operating license should be extended, which is included in the County’s request.

Historically, the City has not taken a position on the license extension itself but has

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emphasized that any continued operation must prioritize public safety, appropriate fiscal mitigation for local impacts, and long-term land conservation considerations.

The sections below summarize prior City actions and explain how the County’s request both aligns with, and differs from, the City’s Legislative Platform and Council-adopted guiding principles regarding DCPP. Should the Council wish to sign on to this letter (Attachment A) and/or provide direction for future advocacy related to DCPP’s operating license extension, this direction could be incorporated into the City’s 2026 Legislative Platform update, planned for adoption in April 2026.
1 Alignment with Guiding Principles and the Legislative Platform The County’s draft letter includes three primary requests from the Legislature:

1. Support the Nuclear Regulatory Commission’s regulatory approval process and establish a state licensing pathway to authorize DCPP to operate for up to 20 additional years.

2. Enact Legislation restoring historic pre-decommissioning unitary tax treatment for DCPP including land valuation for the duration of its extended operations or provide alternative equivalent financial mitigations.

3. Support the California Coastal Commission’s land conservation and public access plan for lands surrounding Diablo Canyon, in coordination with appropriate regulatory and conservation agencies.

Since the first component requests legislative action specific to a single facility and project, it does not fall under the current Legislative Platform. Historically, the City has not taken a formal position on the extension or closure of DCPP. However, in 2016, when PG&E first announced the planned closure of the facility, the City Council adopted guiding principles to inform staff participation in regulatory and stakeholder processes. Those principles emphasized the City’s interest in “a seat at the table” and ensuring community safety, fiscal stability, and long-term planning, including the following:

1. Ensure the continued safe operation of the DCPP and the health and safety of the community. The primary focus is the emergency preparedness funding extension but may also include other public safety related activities.

2. Be involved in creating solutions that will lessen the short- and long-term financial impacts to the community. This could include a longer runway on tax offsets to ease the transition, direct funding for programs impacted by the loss of tax revenue and other direct financial contributions. A tangential issue that may be addressed is the fair and equitable cost sharing between ratepayers and PG& E corporate assets and shareholders.

3. Investigate opportunities for job creation and economic diversification.

1 The County’s December 22nd request sought confirmation of participation by January 10, 2026. However, due to the proximity to the holidays, the City’s first regularly scheduled Council meeting not occurring until January 13, and due to the need to allow adequate time for public noticing and outreach, the City Manager advised the County that Council direction would not be possible until January 20. Several other cities in the County are in a similar position with the need to obtain Council direction at public meetings occurring later than January 10th, and County staff have confirmed that this delay is acceptable.

6b
Examples of this could include creation of a research and development facility located in the region, alternative energy generation technologies (small scale), job training programs and seed funding for relevant economic programs and opportunities. These opportunities could involve direct funding and/or commitments for a certain amount of jobs remaining in the community for a specified amount of time.

4. Develop a plan to address the potential long-term impacts of closing a nuclear facility. This includes spent fuel management, decommissioning and local vendor preference for request for offers (RFO) for new energy sources.

5. Explore the future use of the land and related facilities. This could include desalinization, large scale energy generation and general land designation (open space, development, etc.).

Following these guiding principles, the City of San Luis Obispo participated in coordinating and forming a Coalition of Cities that worked in tandem with the County and other significantly impacted organizations, including the San Luis Coastal Unified School District (SLCUSD), to successfully establish a number of mitigation measures to address some of the economic impacts of the plant’s planned closure. This led to a settlement agreement entered into among a number of parties and presented to the California Public Utilities Commission (CPUC) in 2016 as part of PG&E’s ratemaking process intended to address needs associated with the planned closure of the DCPP. Ultimately, statutory authority (SB 1090) was provided to implement a number of provisions in the settlement agreement, including funding to the parties to address anticipated economic impacts of the closure.

Following the enactment of SB 1090 in 2018, state energy policy shifted in response to growing electric grid reliability concerns. In 2022, the Legislature introduced, and ultimately adopted, SB 846 as an urgency statute, directing the CPUC to reverse its prior decision to have the plant closed and authorize PG&E to pursue extended operations through at least 2030, subject to federal license renewal by the Nuclear Regulatory Commission and additional state approvals related to coastal permitting, environmental compliance, and emergency preparedness, many of which remain underway. In 2022, the City joined a coalition letter regarding SB 846 that did not take a position on license extension, but emphasized the following nine key points:

1. Safety: Safe operation and regulatory oversight must remain the top priority.

2. Time-Limited Extension: Any license extension should be finite and tied to renewable replacement readiness.

3. Renewables First: The State should accelerate renewable energy deployment and remove regulatory barriers.

4. Land Use Planning: Extended operations should not hinder Central Coast clean energy or economic development and planning for future use of Diablo Canyon lands, including Parcel P, should continue.

5. SB 1090 Certainty: Prior mitigation funds should be explicitly protected from clawback.

6b

6. Fiscal Mitigation: Cities should be compensated for extended impacts beyond the original closure timeline.

7. Land Conservation: Coastal lands should be preserved in consultation with Tribal communities.

8. Local Workforce: PG&E should prioritize local labor and workforce transition.

9. Spent Fuel: A long-term solution for spent nuclear fuel is required.

In parallel, the community has continued planning for eventual decommissioning through efforts such as the Diablo Canyon Decommissioning Engagement Panel. While the City will experience a relatively modest fiscal impact of approximately $76,000 annually in unitary tax revenue losses following the full depreciation of DCPP under SB 1090, the SLCUSD has documented substantially greater impacts. District reports show that unitary tax revenues from DCPP were approximately $3.7 million in 2024-25 and had been declining significantly since 2018. The total loss of this revenue stream starting in 2025- 26 has contributed to budget reductions of roughly $5 million in 2024–25, with additional reductions anticipated for the District. These significant financial impacts to community partners like the District are addressed in the County’s proposed advocacy letter, which seeks legislation requiring the reinstitution of the unitary tax.

The second and third items listed in the County’s proposed letter (regarding unitary tax and land conservation and access) are consistent with the City’s adopted priorities and Legislative Platform. These elements align with the City’s guiding principles, Major City Goals as well as the following Legislative Platform planks:

Finance & Governance #1: Support meaningful fiscal reform that allows each level of government to adequately finance its service responsibilities while continuing to support efforts to protect the City from loss of revenues due to State take‐aways and unfunded State or Federal mandates.

Parks and Recreation and Natural Resources #1: Support State and Federal funding and other measures to promote the acquisition, protection, preservation and restoration of natural resources, open space, coastal resources, signature landforms, wetlands, and park development, including continued funding for the Land and Water Conservation Grant Program and for the California Conservation Corps.

Parks and Recreation and Natural Resources #7: Support funding to reduce or mitigate negative impacts to vital regional and community services and enhance public access to parks, open space, after school programming, senior services, facilities that promote physical activity, protect natural resources, and strengthen safety and security
Previous Council/City Action
July 2016: The City Council considered its stance on the DCPP Closure and approved a set of guiding principles to guide staff in the process of providing input during stakeholder discussions and in any potential CPUC filings as it relates to PG&E’s commitment to the community.

6b
September 2016: To ensure equitable consideration of the adverse impacts of the retirement on area cities, the City joined the Coalition of Cities including San Luis Obispo, Arroyo Grande, Atascadero, Morro Bay, Paso Robles and Pismo Beach. The Coalition filed a joint request before the CPUC asking the state regulatory agency to formally hear their concerns regarding key impacts related to the closure. 2016-2017: Numerous parties, including PG&E, labor and environmental organizations, the County of San Luis Obispo, the SLCUSD, and the Coalition of Cities, participated in CPUC proceedings. Ultimately, a settlement agreement was established that included short-term community impact mitigation funding based on the assumption that the plant would close in 2024–2025 but did not address long-term fiscal impacts associated with extended operations or ongoing unitary tax treatment. On November 21, 2017, Council authorized the City to advocate for legislation (if necessary) to fund the Community Impacts Mitigation Program (CIMP).

March 2018: Staff gave the City Council an update on the status of the DCPP closure settlement and sought Council approval for the City’s financial participation in a regional economic and fiscal impact analysis following the unfavorable CPUC decision, which excluded the CIMP. The City shared its guiding principles to the Diablo Canyon Decommission Engagement Panel in May 2018 and the Coalition advocated throughout 2018 and pushed for the passage of SB 1090 which was a California state law enacted to implement key elements of the original Diablo Canyon Joint Proposal noted above.

August 2022: The City signed on a Coalition letter in August 2022 expressing considerations and concerns for SB 846 (2022). SB 846 allowed DCPP to continue operating past the retirement date and was enacted as an urgency statute to address near-term grid reliability risks.

Public Engagement
Notice of this agenda item was provided through the meeting's posted agenda. The public may submit comments in writing before the meeting or share their input during the public meeting.

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

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

6b
Fiscal Analysis:

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

Total N/A N/A N/A N/A
There is no fiscal impact associated with signing onto the County’s draft letter. Through FY 2024-25, the City received approximately $76,000 annually from the Essential Services Mitigation Fund and a one-time $1.8 million Economic Development allocation in FY 2018-19, as approved through SB 1090. The expiration of these revenue streams were accounted for in the City’s adopted FY 2025–26 budget and revenue forecasts.

ALTERNATIVES
Draft an Independent Advocacy Letter. Prepare an advocacy letter limited to elements consistent with the City’s adopted Legislative Platform. Council may also direct staff to incorporate specific policy positions or elements in this alternative letter, as desired. Staff would draft the letter and send it to the Mayor for signature consistent with Council direction.

Take No Action. Receive and file the County’s invitation and take no action at this time.

ATTACHMENTS
A – Draft Letter - County Legislative Request for Action Regarding DCPP Licensing

Draft

COUNTY OF SAN LUIS OBISPO BOARD OF SUPERVISORS
John Peschong District One Supervisor
Bruce Gibson District Two Supervisor
Dawn Ortiz-Legg Chairperson, District Three Supervisor
Jimmy Paulding Vice-Chairperson, District Four Supervisor Heather Moreno District Five Supervisor
Katcho Achadjian Government Center County of San Luis Obispo 1055 Monterey Street | San Luis Obispo, CA 93408 | (P) 805-781-5450 | (F) 805-781-1350 [email protected] | slocounty.ca.gov
12/16/2025
To: Members of the California State Legislature
Cc: Relevant Legislative Committees
Subject: Request for Legislation Supporting Extended Operations of Diablo Canyon Power Plant, Coastal Land Conservation, and Restoration of Unitary Tax Treatment Dear Members of the Legislature:

On behalf of the County San Luis Obispo Board of Supervisors, we write to express our firm support for legislative action to enact measures authorizing Diablo Canyon Power Plant (DCPP) to operate for up to twenty (20) additional years, restore unitary tax treatment for DCPP, and support coastal land conservation and public access near the facility.

As the host county for California’s only operating commercial nuclear power plant which provides approximately 9% of the State’s total generation of power, San Luis Obispo County recognizes Diablo Canyon as a critical component of the State’s clean energy infrastructure. Extending the plant’s operational life for up to 20 years would provide stable, carbon free baseload power that strengthens grid reliability, reduces greenhouse gas emissions, and advances California’s clean energy and climate goals.

Continuation of operations, however, must be accompanied by fiscal fairness for the communities that host and support the facility. We therefore urge the Legislature to restore predecommissioning unitary taxation for DCPP during any extended period of operation. Historically, unitary tax revenues have been distributed to the County, cities, school districts, and special districts, supporting essential public services, educational programs, infrastructure maintenance, and public safety. Restoration of this tax structure is critical to maintaining the fiscal stability of local governments and public agencies.

If restoring the pre-decommissioning unitary tax treatment proves infeasible, we request alternate financial mitigations to the County and local jurisdictions impacted by exemptions of taxable value on the DCPP during the period of extended operations established by the statutory prohibition against including operating costs in PG&E’s rate base.

In tandem with extended operations, we support further conservation and public access frameworks for lands surrounding Diablo Canyon. Protecting these coastal and natural resources ensures long term environmental stewardship while providing opportunities for responsible public Attachment 1
1 of 2

Draft
County of San Luis Obispo Government Center
1055 Monterey Street | San Luis Obispo, CA 93408 | (P) 805-781-5000 | (F) XXX-XXX-XXXX [email protected] | slocounty.ca.gov
access and public benefit. This balanced approach of clean energy, fiscal stability, and environmental conservation serves both local communities and the broader interests of the State.

In addition, future DCPP allocations related to changes in the values being assessed for portions of the property that may legislatively transition from highest and best use assessed acres of land towards lower value assessed acres of land due to new conservation restrictions should not financially penalize the affected region with lower assessed revenue figures.

Accordingly, we respectfully request that the Legislature:

1. Support the Nuclear Regulatory Commission’s regulatory approval process and establish a state licensing pathway to authorize DCPP to operate for up to 20 additional years.

2. Enact legislation restoring historic pre-decommissioning unitary tax treatment for Diablo Canyon Power Plant including land valuation for the duration of its extended operations or provide alternate equivalent financial mitigations.

3. Support the California Coastal Commission’s land conservation and public access plan for lands surrounding Diablo Canyon, in coordination with appropriate regulatory and conservation agencies.

Taken together, these actions represent a prudent and forward-looking policy framework that balances California’s clean energy needs with local fiscal health, environmental protection, and community interests.

Thank you for your attention to this important matter. We stand ready to work collaboratively with the Legislature to enact legislation that reflects these priorities and supports a sustainable and equitable future for San Luis Obispo County and the State of California.

Sincerely,
Chair
County San Luis Obispo Board of Supervisors
San Luis Obispo County
Attachment 1
2 of 2

City of San Luis Obispo, Council Memorandum
City of San Luis Obispo
Council Agenda Correspondence
DATE: January 20, 2026
TO: Mayor and Council
FROM: Aaron Floyd, Public Works and Utilities Director
Prepared By: Jennifer Rice, Public Works Deputy Director for Mobility Services VIA: Whitney McDonald, City Manager
SUBJECT: ITEM #7c – SAN LUIS OBISPO COUNCIL OF GOVERNMENTS

PRESENTATION ON LOCAL ROADS FIRST PROPOSED BALLOT
MEASURE – DRAFT TRANSPORTATION EXPENDITURE PLAN
Following the publication of the January 20, 2026 Council Agenda Packet, an updated version of the Draft Expenditure Plan has been provided by the San Luis Obispo Council of Governments (SLOCOG). Attachment A to this agenda correspondence includes the revised Draft Expenditure Plan with changes highlighted. Additionally, Attachment B is the draft Ordinance. Overall, the revisions focus on clarification, particularly providing greater clarity regarding the Governing Board, organizational structure, and the role of the Local Transportation Authority (referred to as the Authority), as well as proposed split of the unincorporated County local funds to be distributed equally by Supervisorial District for their respective unincorporated populations.

Additionally, staff became aware that the link provided within the Council Agenda Report for the polling results was not publicly accessible. Those results are included in the correspondence as Attachment C.

Further, it was brought to staff’s attention of two transposed numbers within Table 1: 1- Year Distribution of $35M. Below is the updated table with the amended data shown in red bold.

ITEM 7c – SLOCOG Presentation on Local Roads 1st Proposed Ballot Measure – Draft Transportation Expenditure Plan Page 2
Attachments
A – Draft Transportation Expenditure Plan – Rev. 1.16.26 B – Draft Ordinance – Rev. 1.16.26
C – Polling Results
Population* % Distribution
Arroyo Grande 18,441 6.5% $ 1,256,955
Atascadero 29,773 10.5% $ 2,029,354
Grover Beach 12,701 4.5% $ 865,712
Morro Bay 10,757 3.8% $ 733,207
Paso Robles 31,490 11.2% $ 2,146,387
Pismo Beach 8,072 2.9% $ 550,195
San Luis Obispo 47,063 16.7% $ 3,207,856
Unincorporated** 124,123 43.9% $ 8,460,335
282,420 100.0% $ 19,250,000
North County 99,329 35.2% $ 4,923,893
South County 80,716 28.6% $ 4,001,218
Central County 62,250 22.0% $ 3,085,830
North Coast 40,125 14.2% $ 1,989,059
282,420 100.0% $ 14,000,000
$ 1,400,000
$ 350,000
$ 35,000,000
*Based on 2020 Census
**Unincorporated local funds to be distributed equally by Supervisorial District TOTAL
55% for Local Control: Local Road Repair, Safety and Improvements 40% for Regional Corridor Improvements
Total
Total
4% for Senior/Disabled/Veterans' Mobility Improvements
1% Administration Costs (Maximum)

January 16, 2026 Attachment 1 to G-1 1
San Luis Obispo County Transportation
Expenditure Plan
I. Introduction
San Luis Obispo County’s transportation system is essential to the safety, mobility, and economic vitality of its residents, businesses, and visitors. Yet existing state and federal revenues are inadequate to maintain local streets and roads, operate reliable transit, and deliver major regional improvements.

This Transportation Expenditure Plan establishes a dedicated local funding source — a voter-approved ½-cent transactions and use tax — projected to generate approximately $35 million per year. All revenues will remain in San Luis Obispo County and may only be used for transportation purposes.

The Plan emphasizes geographic equitable distribution of funds, fairness, transparency, and strong taxpayer safeguards while ensuring flexibility to leverage state and federal funds.

II. Revenue Distribution
Revenues shall be allocated as follows:

A. 55% Local Road Repairs and
Improvements distributed by population
to each city and the County. (Reviewed
every ten years based on census data1
).

B. 40% Regional Corridor
Improvements distributed by subregion
population within the areas defined as
shown.

C. 4% Mobility Services for Seniors,
Veterans and Mobility Challenged
D. 1% Administration
1 Should a new city become incorporated, the percentages would be adjusted to reflect the updated population distribution.

January 16, 2026 Attachment 1 to G-1 2
III. Eligible Uses of Funds
Local Road Repairs and Improvements (55%)
Funds are distributed by population to the cities and the County. County funds shall be distributed equally by Supervisorial District. Funds may be used for:

A. Local road maintenance, rehabilitation, and repair.

B. Safe Routes to School and Safe Routes to College programs.

C. Local intersections, operational and traffic safety improvements.

D. Bridge safety and seismic retrofits.

E. Bicycle and pedestrian improvements (sidewalks, crosswalks, multi-use paths).

F. Community enhancements tied to transportation
(streetscape, lighting, landscaping, wayfinding).

G. Traffic signal improvements and synchronization.

H. Piers, walkways and other pedestrian or bike paths in and around waterfront and river areas.

I. Transit services including local trolley services may be funded if desired by a City.

Regional Corridor Improvements (40%)
Regional project funds shall be distributed by population among subregions over the life of the measure and used for:

A. Highway and major corridor congestion relief such as van or carpool lanes or other congestion relief measures.

B. Safety and interchange improvements.

C. Regional bicycle and pedestrian connectors between communities like the Bob Jones Trail.

D. Interagency Transit Access.

E. Mitigation impacts for proposed improvements.

F. Other projects consistent with the adopted Regional Transportation Plan (RTP).

Mobility Services for Seniors, Veterans and Mobility Challenged (4%) Funds shall support improvements to mobility programs that prioritize services for seniors, veterans, and mobility challenged.

Administration (1%)
No more than 1% of annual revenues shall be allocated by the Authority for administration, reporting, auditing, and program oversight.

January 16, 2026 Attachment 1 to G-1 3
IV. Governing Board and Organizational Structure
The San Luis Obispo Council of Governments (SLOCOG) serves as the designated Local Transportation Authority for San Luis Obispo County and is responsible for administering the Transportation Measure in compliance with Public Utilities Code (PUC) 180000 et seq. Upon voter approval of the Transportation Measure, the Board of Directors of SLOCOG will serve as the Authority Board, hereafter the Authority, and will oversee its implementation in accordance with the plans and programs detailed in this and future updates of the Expenditure Plan.

This Expenditure Plan provides for the creation of a Citizens’ Oversight Committee to ensure transparency and accountability. Details regarding the Committee are contained in this plan (Section XIV). The Biennial Implementation Plan will be prepared and updated by SLOCOG staff and approved by the Authority Board as per the Ordinance Section 14.

Per PUC 180000, the Authority’s governing board will include representation as follows:
• Five (5) members of the San Luis Obispo County Board of Supervisors • One (1) member representing each incorporated city within San Luis Obispo County—Arroyo Grande, Atascadero, Grover Beach, Morro Bay, Paso Robles, Pismo Beach, and San Luis Obispo—appointed by their respective city councils.

Alternates to the regular members may participate in accordance with SLOCOG bylaws.

Should another city become incorporated, it will have one seat on the Authority Board.

V. Maintenance of Effort (MOE)
The enabling legislation in Public Utilities Code PUC 180001(e) states:

It is the intent of the Legislature that funds generated pursuant to this division be used to supplement and not replace existing local revenues used for transportation purposes.

Each Agency receiving revenues for “Local Projects” shall annually maintain, at a minimum, the same level of local fully discretionary general fund revenues that were expended on average for fiscal years 2023/24, 2024/25 and 2025/26, for transportation purposes. Dedicated funds for transportation such as gas tax revenues are not counted as general fund revenues. Transfers into the general fund will not be counted as general fund revenues. Grant awards and general fund revenues used as matching funds for grant awards will not be counted as general fund revenues.

January 16, 2026 Attachment 1 to G-1 4
Unusual one-time general fund allocations that have been expended for transportation purposes may be exempted prior to determining the Agency’s average expenditure for the three fiscal years noted above at the discretion of the Authority.

An agency petitioning for an exception under this provision must supply evidence of the need for special consideration, and the petition must be approved by a majority vote of the Authority Board.

The Authority shall not allocate any Net Revenues to any jurisdiction for any fiscal year until that jurisdiction has certified to the Authority that it has included in its budget for that fiscal year an amount of local discretionary funds for streets and roads purposes at least equal to the level of its maintenance of effort requirement. An annual independent audit will be conducted by the Authority to verify that the maintenance of effort requirements are being met by the jurisdiction. Any Net Revenues not allocated pursuant to the maintenance of effort requirement shall jurisdictions be allocated to the remaining eligible jurisdictions according to the formula described in the Section III.

Exceptions
Subject to Authority approval, if any local jurisdiction had extraordinary local discretionary fund expenditures during any fiscal year it may determine that year’s minimum expenditure base level of local discretionary funds by:
(a) subtracting those extraordinary expenses funding, assessment district contributions, development impact funds, redevelopment agency contributions, or other non-recurring contributions) from its total expenditures; or (b) petitioning the Authority for special consideration. It is possible that a local jurisdiction may need to revise its minimum expenditure base beyond the subtraction of extraordinary expenses. In this instance, the Authority may allow the establishment of a new base for that jurisdiction's Maintenance of Effort requirement.

A local jurisdiction petitioning the Authority under this provision must supply evidence of the need for special consideration and the petition must be approved by a majority vote of the Authority.

VI. Requirements for Eligible Jurisdictions
To be eligible to receive Net Revenues, a jurisdiction shall satisfy and continue to satisfy the following requirements.

January 16, 2026 Attachment 1 to G-1 5
A. Mitigation Fee Program. Assess traffic impacts of new development and require new development to pay a fair share of necessary transportation improvements attributable to the new development.

B. Circulation Element. Adopt and comply with its Circulation Element as part of the jurisdiction’s General Plan,
C. Capital Improvement Program. Adopt and update a minimum Five-Year Capital Improvement Program (CIP). The CIP shall include all capital transportation projects, including projects funded by Net Revenues, and shall include transportation projects required to demonstrate compliance with pavement management requirements.

D. Pavement Management Plan. Adopt and update a Pavement Management Plan and provide regular reporting on the status of road pavement conditions and implementation of the Pavement Management Plan.

E. Expenditure Report. Adopt an Expenditure Report to account for Net Revenues, developer/traffic impact fees, and funds expended by the Eligible Jurisdiction which satisfy the Maintenance of Effort requirements. The Expenditure Report shall be submitted by the end of six (6) months following the end of the jurisdiction’s fiscal year and include the following:

1. All Net Revenue fund balances and interest earned.

2. Expenditures identified by type (i.e., capital, operations, administration, etc.), and program or project.

F. Project Final Report. Provide Authority with a Project Final Report for regional projects within six months following completion of a project funded with Net Revenues.

G. Time Limits for Use of Net Revenues for Regional Projects.

1. Agree that Net Revenues for Regional Projects shall be expended or encumbered no later than the end of the fiscal year for which the Net Revenues are programmed. A request for extension of the encumbrance deadline for no more than thirty-six months may be submitted to the Authority no less than ninety days prior to the deadline. The Authority may approve one or more requests for extension of the encumbrance deadline.

2. In the event the time limits for use of Net Revenues for Regional Projects are not satisfied then any retained Net Revenues that were allocated to an Eligible Jurisdiction and interest earned thereon shall be returned to the

January 16, 2026 Attachment 1 to G-1 6
Authority and these Net Revenues and interest earned thereon shall be available for allocation to any project within the same source program.

H. No Supplanting of Funds. Agree that Net Revenues shall not be used to supplant developer funding which has been or will likely be committed for any transportation project.

I. Public Notice of Use of Measure Funds. Member agencies will provide the public with planned use of measure funding as part of its annual or biennial budget process. This includes each City and Community Advisory Council will receive at a minimum, twice per programming year presentations from jurisdictional staff to review proposed investments prior to annual allocations.

Determination of Non-Eligibility
A determination of non-eligibility of a jurisdiction shall be made only after a hearing has been conducted and a determination has been made by the Authority that the jurisdiction is not an Eligible Jurisdiction as provided hereinabove.

VII. Taxpayer Safeguards
A. A transportation special revenue fund (the “Local Transportation Authority Special Revenue Fund”) shall be established to maintain all Revenues.

B. Accounting Receipt, maintenance and expenditure of Net Revenues shall be distinguishable in each jurisdiction’s accounting records from other funding sources, and expenditures of Net Revenues shall be distinguishable by program or project. Interest earned on Net Revenues allocated pursuant to the Ordinance shall be expended only for those purposes for which the Net Revenues were allocated.

C. No Net Revenues shall be used by a jurisdiction for other than transportation purposes authorized by the Ordinance. Any jurisdiction which violates this provision must fully reimburse the Authority for the Net Revenues misspent and shall be deemed ineligible to receive Net Revenues for a period of five (5) years.

D. A Citizens Oversight Committee (“Committee”) shall be established to provide an enhanced level of accountability for expenditure of Revenues under the Ordinance.

The Committee will help to ensure that all voter mandates are carried out as required. The roles and responsibilities of the Committee, the selection process for Committee members and related administrative procedures shall be carried out as described in the Section XIII below and Ordinance Section 15.

E. A performance assessment shall be conducted at least once every three years to evaluate the efficiency, effectiveness, economy and program results of the Authority in satisfying the provisions and requirements of the Investment Summary

January 16, 2026 Attachment 1 to G-1 7
of the Plan, the Plan and the Ordinance. A copy of the performance assessment shall be provided to the Committee.

F. Annual status reports regarding the regional corridor projects and improvements shall be brought before the Authority by local agencies and Authority staff at least annually in public meetings.

G. Annual Report Annually the Authority shall publish a report on how all Revenues have been spent and on progress in implementing projects in the Plan and shall publicly report on the findings and posted on the agency website.

VIII. Ten-Year Comprehensive Program Review
At least every ten years the Authority shall conduct a comprehensive review of all projects and programs implemented under the Plan to evaluate the performance of the overall program and may revise the Plan to improve its performance. The review shall include consideration of changes to local, state and federal transportation plans and policies; changes in land use, travel and growth projections; changes in project cost estimates and revenue projections; right-of-way constraints and other project constraints; level of public support for the Plan; and the progress of the Authority and jurisdictions in implementing the Plan. The Authority may amend the Plan based on its comprehensive review, subject to the requirements of Section IX: Reporting, Implementation and Amendments.

IX. Reporting, Implementation and Amendments
Administration
In compliance with state and federal requirements, SLOCOG regularly prepares a Regional Transportation Plan (RTP)that identifies priority projects across all transportation modes, including highways, local roads, public transit, bikeways, and aviation.

All updates to the Expenditure Plan will undergo public review and hearings. Candidate projects and priorities may evolve, but the county’s extensive transportation needs will ensure robust use of all available funding, including sales tax revenues. During each update, the Authority will review investments across multiple transportation modes to ensure efficiency and equity in addressing mobility needs throughout San Luis Obispo County.

Annual Report
Each year, the Citizens’ Oversight Committee (Section XIV) reviews expenditures and communicates results to the public through an Annual Report.

January 16, 2026 Attachment 1 to G-1 8
Amendment Process
As specified in PUC Section 180207:
(a) Once per calendar year, the Authority may review and propose amendments to the county’s transportation expenditure plan to incorporate additional revenues, account for unanticipated funds, or respond to unforeseen circumstances.

Amendments adopted late in the year will not preclude additional amendments in the following year.
(b) The Authority must notify the County Board of Supervisors and each city council, providing copies of proposed amendments for their review. (c) Amendments become effective 45 days after notification.

Voter approval (2/3 majority) is required for changes to funding categories or overall allocation formulas as per Ordinance Section 10.

Biennial Implementation Plan
At least once every two years, the Authority will prepare and adopt a Measure XXX Implementation Plan. This plan will include a financial component consistent with both the SLOCOG Regional Transportation Improvement Program (RTIP) and the STIP.

Process steps include:

A. SLOCOG staff, working with member agencies and stakeholders, will draft and update the Implementation Plan biennially.

B. The Authority Board will review the Draft Implementation Plan, hold public hearings, and incorporate feedback.

C. Following review, the Authority formally adopts the Implementation Plan.

Implementation Guidelines
Following voter approval of this Measure, the Authority shall adopt Implementation Guidelines to administer and implement the Expenditure Plan in a manner consistent with the voter-approved purposes of this Measure. The Implementation Guidelines shall establish procedures for project programming and delivery, eligibility requirements, fund distribution, accountability and reporting, audits, amendments, and other administrative matters necessary to ensure effective and transparent use of Measure revenues. The Implementation Guidelines shall not expand or alter the uses of funds authorized by this Measure and shall be adopted by the governing board at a public meeting following a noticed public process.

January 16, 2026 Attachment 1 to G-1 9
X. Bonding Authority
To reduce overall costs by advancing construction timelines, the Authority shall have the option to sell or issue, at any time, and from time to time, including on or before the collection of the taxes authorized by the Ordinance Section 16, bonds, notes or other evidences of indebtedness, including capital appreciation bonds, payable from and secured by the proceeds from the sales taxes authorized by this Ordinance and from the proceeds of the existing Measure (TBD) sales taxes, in order to finance and refinance the transportation projects identified in the Transportation Expenditure Plan. Bonding indebtedness shall be limited to 35% of net sales measured at the end of the 30-year program. An additional bonds test (ABT) no lower than 1.5x Maximum Annual Debt Service will be measured against projected revenues for any consecutive 12-month period in the prior 18 months.

Should the tax be ended by voter action, the obligation to repay the bond debt remains with the agency, in this case the Authority and its member agencies.

XI. Independent Financial Audits
If the Transportation Measure is approved by the voters, the Authority will conduct independent financial audits of all revenues and expenditures associated with the measure in accordance with Public Utilities Code 180000 et seq. These audits will ensure full transparency and accountability in the use of voter-approved sales tax revenues.

The results of the audits will be presented annually to the Authority Board and made available to the public, reinforcing confidence in the administration of the Transportation Measure. Findings will also be shared with the Citizens’ Oversight Committee to support their independent review of expenditures and compliance with the Expenditure Plan.

XII. Administration Program – 1% of Measure Revenues
To effectively manage and implement the Transportation Measure, the Authority will cap administration costs at no more than 1% of annual sales tax revenues to administrative activities. This allocation supports the necessary planning, oversight, and program development functions required for successful execution of the measure.

Key administrative responsibilities of the Authority include:

A. Annual Work Program and Budget
Prepare and adopt an annual work program and budget outlining planned expenditures, oversight activities, and administrative costs.

January 16, 2026 Attachment 1 to G-1 10
B. Allocation Program Requirements and Focused Studies
Develop requirements for each funding program established by the Regional Programs allowed in the Expenditure Plan and undertake specialized studies needed to implement those programs effectively.

C. Biennial Implementation Plan
Prepare and update the Transportation Measure Implementation Plan every two years, aligning it with the Regional Transportation Improvement Program (RTIP) and State Transportation Improvement Program (STIP).

D. Regional Project Prioritization
Establish and update priority lists for regional projects and rehabilitation projects, in coordination with member jurisdictions and consistent with Expenditure Plan goals.

E. Independent Annual Audit
Conduct an independent audit of all Transportation Measure funds to ensure compliance, fiscal integrity, and accountability to the public.

F. Public Outreach and Communication
Carry out ongoing outreach and public education efforts to keep residents informed about project progress, financial performance, and planned updates.

G. Bond Issuance for Accelerated Delivery
Issue bonds when appropriate to expedite project delivery, reducing overall project costs by leveraging future revenues for near-term improvements.

H. Revenue Allocation to Local Jurisdictions
Distribute Transportation Measure proceeds to incorporated cities and the county in accordance with the formulas and criteria established in the Expenditure Plan.

I. Support for Oversight Committees and Related Technical Assistance Provide staff support to advisory committees and furnish technical assistance to member jurisdictions to ensure consistent, equitable, and effective program implementation.

XIII. Citizens’ Oversight Committee
Committee Purpose
A. To provide fiscal oversight on the implementation of the Transportation Expenditure Plan ensuring that funds are spent in accordance with the approved Plan.

B. To inform the public and confirm that revenues and expenditures from the Transportation Measure are spent as promised to San Luis Obispo County voters.

January 16, 2026 Attachment 1 to G-1 11
Committee Formation
A. The Committee will be formed within six (6) months following voter approval of the Transportation Measure in San Luis Obispo County.

B. The Committee shall be a permanent component of the Expenditure Plan and cannot be eliminated by amendment.

C. Meetings will begin when Transportation Measure revenues are recommended for expenditure, including Implementation Plan updates.

Selection and Duties of Committee Chair and Vice Chair
A. The Committee will select a Chair and Vice Chair from among its members, each serving a one-year term.

B. Chair Duties: Call meetings, set agendas, and preside over meetings.

C. Vice Chair Duties: Perform the Chair’s duties in the Chair’s absence.

Committee Meetings
A. The Committee will hold at least two formal meetings annually, with additional meetings scheduled as needed.

B. All meetings will comply with the Brown Act (open meeting requirements).

C. Meetings will be conducted in accordance with Robert’s Rules of Order.

Subcommittee Requirements
A. The Committee may form subcommittees to address specific tasks or focus areas.

B. All subcommittees will consist of an odd number of members to ensure clear decision-making.

The Committee will reflect the geographic and demographic diversity of San Luis Obispo County and consist of 12 members. Each represented organization will nominate its representative, with final appointments approved by the Authority Board.

Membership Composition:

A. One resident representative appointed by each incorporated city (Arroyo Grande, Atascadero, Grover Beach, Morro Bay, Paso Robles, Pismo Beach, San Luis Obispo) and one member from each of San Luis Obispo County’s Supervisorial District’s within the unincorporated areas.

January 16, 2026 Attachment 1 to G-1 12
B. The Authority Board will review and appoint these members. If any jurisdiction is unable to appoint a representative, THE AUTHORITY may fill the position through an open application process. Should a new City become incorporated, a representative from that jurisdiction shall be appointed by the City.

Quorum
A. A quorum will consist of no fewer than seven (7) members.

B. Actions may be approved by a simple majority of members present, provided the quorum is met.

Term of Membership
A. Members serve two-year terms, with a maximum of eight consecutive years of service.

B. To establish staggered terms, the initial appointments will be divided so that half serve one-year terms and half serve two-year terms, determined by random selection.

C. Proxy voting is not permitted.

Eligibility
A. Must be a U.S. citizen, 18 years or older, and a resident of San Luis Obispo County.

B. Cannot be an elected official of San Luis Obispo County or its cities.

C. Cannot be an employee of state, county, or city government agencies within San Luis Obispo County (except employees of educational institutions).

Staffing
A. SLOCOG staff will provide technical and administrative support, including preparation of agendas, meeting materials, and public communications.

B. Administrative costs for staffing will be funded through the Transportation Measure’s administrative allocation.

C. Expert staff and consultants may be invited to present information or analyses as needed.

Responsibilities
A. Reviewing and commenting on independent financial and performance audits of Measure funds.

January 16, 2026 Attachment 1 to G-1 13
B. Reviewing periodic reports, studies, and plans related to Measure revenues and expenditures.

C. Ensuring that expenditures are consistent with the Expenditure Plan.

D. Conducting an annual review of sales tax revenue use and publicly reporting findings.

E. Presenting recommendations and findings in a formal annual report to the public and Authority Board.

F. Accessing information from the Authority’s independent auditor and requesting additional information as necessary to fulfill oversight responsibilities.

G. Remaining informed of advancements in transportation planning and finance to ensure oversight remains relevant and effective through the duration of the Measure.

XIV. Measure Duration
This Transportation Expenditure Plan shall remain in effect for 30 years as approved by San Luis Obispo County voters.

January 16, 2026 Attachment 2 to G-1 1

SAN LUIS OBISPO COUNCIL OF GOVERNMENTS / LOCAL TRANSPORTATION AUTHORITY RESOLUTION NO. ____

RESOLUTION REQUESTING A CALL FOR A SPECIAL ELECTION BY THE BOARD OF

SUPERVISORS ON A RETAIL TRANSACTION AND USE TAX ORDINANCE, CONSOLIDATION

OF THE ELECTION WITH THE STATEWIDE GENERAL ELECTION TO BE HELD ON NOVEMBER 3, 2026,
WHEREAS, the streets, roads, highways, transit systems, bicycle and pedestrian facilities within the incorporated and unincorporated areas of San Luis Obispo County are of regional concern and are essential to the safety, mobility, economic vitality, environmental sustainability, and quality of life of residents, businesses, visitors, seniors, veterans, and persons with mobility challenges; and WHEREAS, existing federal, state, and local transportation revenues are insufficient to adequately maintain, operate, and improve the County’s and Cities’ transportation system; and WHEREAS, the Legislature of the State of California has authorized counties to establish voterapproved local transportation sales taxes pursuant to Public Utilities Code Division 19 (commencing with Section 180000) and Revenue and Taxation Code Part 1.6 (commencing with Section 7251); and
WHEREAS, the San Luis Obispo Council of Governments (SLOCOG) has been designated as the Local Transportation Authority for San Luis Obispo County; and WHEREAS, keeping roads and highways in good condition and enhancing mobility helps protect public safety by allowing police, firefighters, and ambulances to respond quickly to emergencies and ensuring first responders are not stuck in traffic or slowed down by failing infrastructure; and WHEREAS, San Luis Obispo County’s transportation system is the backbone of our regional economy, allowing local farmers and businesses to move produce and products to market, creating jobs for local residents; and
WHEREAS, essential purchases like food and groceries are exempt from the ½ cent sales tax, helping to ensure the cost is not a burden to those on fixed or limited incomes; and WHEREAS, the ½ cent sales tax is paid by both residents and visitors shopping in San Luis Obispo County, including visitors, to ensure all users of local roads and transportation infrastructure contribute; and
WHEREAS, by law, all of the money must stay in San Luis Obispo County for local transportation improvements only and cannot be taken away by the State or used for other purposes; and WHEREAS, pursuant to Public Utilities Code Section 180206, and through extensive public engagement and coordination with all incorporated cities and the County of San Luis Obispo, SLOCOG has prepared a countywide Transportation Expenditure Plan which guides the investment of revenues generated by this Ordinance, provides for locally controlled funding for transportation repairs and improvements, and requires strict fiscal accountability protections, including a Citizen's Oversight Committee, annual independent audits, and public disclosure of all spending; and WHEREAS, Ordinance No. 2016-__(including the Expenditure Plan) was introduced by the governing body of the SLOCOG/the Authority on February 4, 2026; and WHEREAS, the Expenditure Plan was approved by the Board of Supervisors on March 24, 2026 and approved by a majority of the city councils representing a majority of the population residing

January 16, 2026 Attachment 2 to G-1 2
within the incorporated areas of the County pursuant to Public Utilities Code Division 19 (commencing with Section 180206; and
WHEREAS, it is the intent of the voters and the Authority/SLOCOG that revenues generated by this Ordinance supplement, and not supplant, existing transportation funding; and NOW, THEREFORE, the governing board of the San Luis Obispo Council Of Governments, acting as the local transportation authority, does hereby adopt the San Luis Obispo County Transportation Expenditure Plan:

BE IT FURTHER RESOLVED, that the San Luis Obispo Council of Governments, acting as the Local Transportation Authority, does herby adopt Ordinance No. 2026-__ - San Luis Obispo County Transportation Expenditure Plan as introduced by the San Luis Obispo Council of Governments on February 4, 2026, and attached hereto.

BE IT FURTHER RESOLVED, that SLOCOG/Authority does hereby request that the San Luis Obispo County Board of Supervisors call a special election to place on the ballot the San Luis Obispo County Transportation Expenditure Plan and transportation sales tax measure which election shall be held on November 3, 2026 and consolidated with other elections to be held on the same date. The ballot language shall read as follows:

San Luis Obispo County Local Pothole Repair, Traffic Relief, Road Safety Measure
To keep streets/roads/highways in good condition throughout San Luis Obispo County; fixing potholes; reinforcing/replacing aging, deficient bridges/overpasses; improving traffic flow/safety; maintaining 911 emergency vehicle access; creating local jobs; keeping bus fares low for students/seniors/disabled/veterans; shall San Luis Obispo County’s measure establishing a ½¢ locally-controlled transportation sales tax be adopted, providing approximately $35,000,000 annually for 30 years, requiring spending disclosure, citizens oversight, and audits? (75 words)
Yes ___
No____
BE IT FURTHER RESOLVED, that SLOCOG / Authority requests the County’s election official, pursuant to California Public Utilities Code Section 180203(c), to print in the sample ballot, immediately below the full proposition, and in the voter information guide, in no less than 10-point bold type, text substantially as follows: “The adopted San Luis Obispo County Transportation Expenditure Plan may be viewed electronically at www.localROADSfirst.com .”

January 16, 2026 Attachment 2 to G-1 3
BE IT FURTHER RESOLVED, that the Secretary and the Authority’s counsel are authorized to make any typographical, clerical, non-substantive corrections to this resolution as may be deemed necessary by the San Luis Obispo County Registrar of Voters or election official.

On motion by Board Member __________, seconded by Board Member___________, and on the following roll call vote, to wit;
AYES:

NOES:

ABSTAIN:

ABSENT:

The foregoing resolution is hereby adopted on this second day of February 4, 2026. ______________________________________
Carla Wixom, President
San Luis Obispo Council of Governments
ATTEST:
_______________________________________
Peter Rodgers, Executive Director
San Luis Obispo Council of Governments
APPROVED AS TO FORM AND LEGAL EFFECT:

BY: ____________________________________
Jenna Morton
SLOCOG Counsel
DATE:__________________

January 16, 2026 Attachment 2 to G-1 4
The San Luis Obispo Council of Governments
Ordinance No. 2026-__
San Luis Obispo County Transportation Expenditure Plan
Guiding Principles and Preamble
The Governing Board of the San Luis Obispo Council of Governments (“SLOCOG”), acting as the Local Transportation Authority, hereby finds and declares as follows:

1. A safe, efficient, and well-maintained transportation system is essential to the public health, safety, welfare, and economic vitality of San Luis Obispo County and its cities and communities.

2. Existing state and federal transportation revenues are insufficient, unreliable, and increasingly restricted, and are no longer adequate to maintain existing transportation infrastructure or to meet current and future transportation needs.

Declining fuel tax revenues, changes in travel behavior, rising construction and maintenance costs, and limitations on the use of state and federal funds have contributed to the deterioration of local streets, roads, highways, transit systems, and active transportation facilities.

3. Inadequate transportation funding adversely affects public safety, mobility, and economic competitiveness, and disproportionately impacts seniors, children, veterans, persons with disabilities, and other transportation-dependent populations.

4. SLOCOG is the designated regional transportation planning agency for San Luis Obispo County and is governed by a Board consisting of one elected official from each of the seven incorporated cities within the County and all five members of the County Board of Supervisors.

5. While SLOCOG actively pursues state and federal transportation funding, such funds are increasingly awarded on a competitive basis and favor regions that have established voter-approved, locally dedicated transportation-specific revenues.

Without a similar local funding source, San Luis Obispo County is disadvantaged in competing for these funds.

6. To address these deficiencies and to provide a reliable local funding source for transportation improvements, it is necessary and appropriate to submit to the voters a proposal to enact a one-half of one percent (0.5%) retail transactions and use tax, the proceeds of which shall be used solely for transportation purposes within San Luis Obispo County.

January 16, 2026 Attachment 2 to G-1 5

7. SLOCOG has adopted a Transportation Safety & Investment Plan (the “Transportation Expenditure Plan”) that identifies transportation improvements and programs of countywide and local significance to be funded by the proposed tax, including:
o Maintenance and repair of streets, roads, and highways, including pothole repair and safety improvements;
o Traffic congestion relief, safety and operational improvements; o Public transportation services and facilities, including service enhancements;
o Mobility improvements for seniors, veterans, and persons with disabilities; o Safe Routes to School projects in each city and community; o Bicycle and pedestrian safety and connectivity improvements; and o Use of funds to leverage and secure additional state and federal transportation funding.

8. The Transportation Expenditure Plan establishes a clear nexus between the proposed tax and the transportation improvements and programs to be funded and reflects the highest priority transportation needs of the County’s cities and communities.

9. It is the intent of the Governing Board and the voters that all revenues derived from the retail transactions and use tax be expended solely in accordance with the Transportation Expenditure Plan and applicable law.

10. To ensure accountability, transparency, and compliance with voter intent, this Ordinance establishes the following safeguards:
o A voter-approved Transportation Expenditure Plan governing all expenditures; o Spending assurances, safeguards, and local control of revenues; o Maintenance of effort requirements;
o Limitation of administrative costs to no more than one percent (1%) of annual revenues;
o Annual independent financial and performance audits;
o Annual public reporting on revenues, expenditures, and project delivery; and o An independent taxpayer oversight committee to review audits and report findings to the public.

Now, therefore, the Governing Board of the San Luis Obispo Council of Governments, acting as the Local Transportation Authority, does hereby ordain as follows:

January 16, 2026 Attachment 2 to G-1 6
SECTION 1. TITLE
This Ordinance shall be known and may be cited as the San Luis Obispo County Local Transportation Investment Ordinance (“Ordinance”).

SECTION 2. DEFINITIONS
For purposes of this Ordinance:
• “Authority” means the San Luis Obispo Council of Governments (SLOCOG), acting as the Local Transportation Authority as designated byt the San Luis Obispo County Board of Supervisors, pursuant to the Local Transportation Authority and Improvement Act set forth at California Public Utilities Code Section 180000 et seq. • “County” means the County of San Luis Obispo.
• “District” means all incorporated and unincorporated territory within San Luis Obispo County.
• “Expenditure Plan” means the San Luis Obispo County Transportation Expenditure Plan attached hereto as Attachment A and incorporated by reference. • “Gross Revenues” means all proceeds of the tax imposed by this Ordinance, including interest earnings.
• “Net Revenues” means Gross Revenues remaining after payment of CDTFA administration costs and authorized administrative expenses. • “Measure” means the ballot proposition submitted to the voters pursuant to this Ordinance.
“Operative Date” means the first day of the first calendar quarter commencing more than 110 days after the adoption of the ordinance. If the Ordinance is approved by the requisite vote of the electors voting on this Ordinance at the election held on November 3, 2026, the Operative Date shall be April 1, 2027.

SECTION 3. PURPOSE
This Ordinance is adopted to:

1. Establish a dedicated local funding source for transportation purposes within San Luis Obispo County.

2. Implement the voter-approved Transportation Expenditure Plan.

January 16, 2026 Attachment 2 to G-1 7

3. Impose a retail transaction and use tax pursuant to State law, subject to two-thirds voter approval.

4. Ensure transparency, accountability, geographic equity, and strong taxpayer protections.

SECTION 4. IMPOSITION OF TRANSACTIONS AND USE TAX
(CDTFA-COMPLIANT)
A. Transactions Tax Rate
For the privilege of selling tangible personal property at retail, a transactions tax is hereby imposed upon all retailers in the District at the rate of one-half of one percent (0.5%) of the gross receipts from the sale of all tangible personal property sold at retail in the District on and after the Operative Date.

B. Place of Sale
For purposes of this Ordinance, all retail sales are consummated at the place of business of the retailer unless the tangible personal property sold is delivered by the retailer or its agent to an out-of-state destination or to a common carrier for delivery to an out-of-state destination. The gross receipts from such sales shall include delivery charges, when such charges are subject to the state sales and use tax, regardless of the place to which delivery is made. In the event a retailer has no permanent place of business in the state or has more than one place of business, the place or places at which the retail sales are consummated for the purpose of a transaction tax imposed by this Ordinance shall be determined under rules and regulations to be prescribed and adopted by the California Department of Tax and Fee Administration (CDTFA).

C. Use Tax Rate
An excise tax is hereby imposed on the storage, use, or other consumption in the District of tangible personal property purchased from any retailer at the rate of 0.5% of the sales price, effective on and after the Operative Date. The sales price shall include delivery charges when such charges are subject to state sales or use tax regardless of the place to which delivery is made.

D. Contract with the State (CDTFA)
Prior to the Operative Date, the Authority shall contract with the CDTFA to perform all functions incident to the administration and operation of the transactions and use tax imposed by this Ordinance; provided, that if the Authority shall not have contracted with the Department prior to the Operative Date, it shall nevertheless so contract and in such a

January 16, 2026 Attachment 2 to G-1 8
case the operative date shall be the first day of the first calendar quarter following the execution of such a contract.

SECTION 5. ADOPTION OF PROVISIONS OF STATE LAW
Except as otherwise provided in this Ordinance and except insofar as they are inconsistent with Public Utilities Code Division 19 and Revenue and Taxation Code Part 1.6, all provisions of Part 1 (commencing with Section 6001) of Division 2 of the Revenue and Taxation Code are hereby adopted and incorporated by reference as though fully set forth herein.

SECTION 6. LIMITATIONS ON ADOPTION OF STATE LAW
In adopting the provisions of State law:

1. Wherever the State of California is named as the taxing agency, the Authority shall be substituted, except where administration is reserved to the CDTFA.

2. No provision shall be interpreted to create exemptions or impose taxes beyond those authorized under State law.

SECTION 7. PERMIT NOT REQUIRED
If a seller's permit has been issued to a retailer under Section 6067 of the Revenue and Taxation Code, an additional transactor's permit shall not be required by this ordinance.

SECTION 8. EXEMPTIONS, EXCLUSIONS, AND CREDITS
All exemptions, exclusions, and credits applicable to the State sales and use tax shall apply to the tax imposed by this Ordinance to the same extent and in the same manner.

SECTION 9. TERM AND OPERATIVE DATE
A. The tax authorized by this Ordinance shall become operative on April 1, 2027, or as otherwise provided herein.

B. The tax shall remain in effect for thirty (30) years, expiring on March 31, 2057, unless otherwise terminated by voter approval.

SECTION 10. USE AND ALLOCATION OF REVENUES
All Net Revenues shall be deposited into a Local Transportation Authority Special Revenue Fund and used solely for transportation purposes authorized by this Ordinance and the Expenditure Plan.

January 16, 2026 Attachment 2 to G-1 9
Allocation of Net Revenues
• 55% – Local Streets and Roads
• 40% – Regional Transportation Projects
• 4% – Seniors, Veterans, and Mobility-Challenged Transportation Services • 1% – Administration
SECTION 11. ELIGIBLE USES
Eligible uses include, but are not limited to, those identified in the Expenditure Plan, including planning, design, construction, operations, maintenance, transit, bicycle and pedestrian facilities, and specialized mobility services.

SECTION 12. MAINTENANCE OF EFFORT (MOE)
Each jurisdiction receiving Local Streets and Roads funds shall maintain, at a minimum, the average level of discretionary general fund expenditures for transportation purposes over Fiscal Years 2023-24, 2024-25, and 2025-26, consistent with the Expenditure Plan.

SECTION 13. JURISDICTIONAL ELIGIBILITY REQUIREMENTS
Jurisdictions must maintain required planning, fee, reporting, and capital improvement programs as set forth in the Expenditure Plan to remain eligible for funding.

SECTION 14. TAXPAYER SAFEGUARDS
Safeguards include local-use restrictions, anti-supplantation provisions, annual audits, annual public reporting, and performance assessments.

SECTION 15. CITIZENS’ OVERSIGHT COMMITTEE
A Citizens’ Oversight Committee shall be established within six (6) months of voter approval in accordance with Attachment A.

SECTION 16. BONDING AUTHORITY
The Authority may issue bonds payable from Measure revenues subject to limitations and coverage requirements set forth in the Expenditure Plan.

SECTION 17. CREATION OF SPECIAL FUND
All Measure revenues and interest shall be deposited in a segregated special fund administered by the Authority.

January 16, 2026 Attachment 2 to G-1 10
SECTION 18. APPROPRIATIONS LIMIT
Pursuant to Article XIII B of the California Constitution and PUC §180202, the initial appropriations limit is hereby established at $[TO BE INSERTED] for Fiscal Year 2027-28 and shall be adjusted annually as provided by law.

SECTION 19. CEQA COMPLIANCE
Adoption of this Ordinance and the Expenditure Plan is not a project subject to CEQA pursuant to CEQA Guidelines §§15276 and 15378(b)(4).

SECTION 20. CALL FOR ELECTION
The Authority hereby requests the San Luis Obispo County Board of Supervisors to call an election to be held on November 3, 2026, consolidated with other elections, for voter approval of the Measure. Approval shall require a two-thirds (2/3) vote.

The revenues received by the Authority from this Ordinance, after deduction of the required Department costs for performing the functions specified in section 180204 of the Public Utilities Code, reimbursing the County of San Luis Obispo for its costs in conducting the election if the measure is approved in accordance with section 180203(a) of the Public Utilities Code, and after deduction for the administration of the Expenditure Plan pursuant to the provisions of the Public Utilities Code commencing with section 180200.

INSERT BALLOT LANGUAGE after Feb. 4, 2026 Board meeting.

SECTION 21. EFFECTIVE DATE
This Ordinance shall take effect immediately upon voter approval, subject to the Operative Date specified herein.

SECTION 22. SEVERABILITY
If any provision of this ordinance or the application thereof to any person or circumstance is held invalid, the remainder of the ordinance and the application of such provision to other persons or circumstances shall not be affected thereby.

220-7617
Opinions on a San Luis Obispo County
Transportation Funding Measure
Highlights of a Survey of Likely Voters

2 Survey Methodology
(Note: Not All Results Will Sum to 100% Due to Rounding) Dates October 11-19, 2025
Research Population Likely November 2026 Voters in San Luis Obispo County Total Interviews 1,031
Margin of Sampling Error (Full Sample) ±3.1% at the 95% Confidence Level (Half Sample) ±4.4% at the 95% Confidence Level
Contact Methods
Data Collection Modes
Survey Tracking March 2024
Languages English and Spanish
Text
Invitations
Telephone
Calls
Email
Invitations
Telephone
Interviews
Online
Interviews

3 Regional Sample Sizes and Margins of Error
Subregions Communities % of Total Likely
2026 Voters Sample Size Margin of Error
North County Atascadero, Paso Robles, and
Unincorporated Area 35% 361 ±5.2%
North Coast Morro Bay and
Unincorporated Area 15% 155 ±8.0%
Central San Luis Obispo and
Unincorporated Area 20% 206 ±6.9%
South
Arroyo Grande, Grover Beach,
Pismo Beach, and Unincorporated
Area
30% 309 ±5.6%

4 37%
39%
9%
10%
4%
Great need
Some need
A little need
No real need
Don’t know/No answer
41%
33%
12%
11%
3%
Great/
Some Need
76%
A Little/
No Real Need
23%
Great/
Some Need
74%
A Little/
No Real Need
20%
There is a high, but somewhat soft sense that the transportation systems Countywide and in voters’ own areas have a need for additional funding.

Generally speaking, would you say that San Luis Obispo County has a great need, some need, a little need or no real need for additional funding for the County’s transportation system, including US101, highways, local streets, bike lanes, sidewalks and public transit? Do you think your area has a great need, some need,
a little need or no real need for additional funding for the transportation system, including US101, highways,
local streets, bike lanes, sidewalks and public transit?

5 Initial Ballot Measure Opinions

6 Hypothetical Ballot Question Tested in Survey
Q. Do you think you would vote yes or no on this measure? San Luis Obispo County Local Pothole Repair, Traffic Relief, Road Safety Measure To fix potholes, pave/maintain streets/roads/highways in all San Luis Obispo County communities; improve traffic flow/safety; fix bottlenecks on highways/major roads; reinforce/replace aging, structurally-deficient bridges/overpasses; keep seniors/ students/disabled/veterans bus fares low; provide safer routes to school; shall San Luis Obispo County’s measure establishing a ½¢ locally-controlled transportation sales tax be adopted, providing approximately $35,000,000 annually for 30 years, requiring spending disclosure, citizens oversight, audits?

7 35%
20%
6%
3%
7%
26%
4%
Definitely yes
Probably yes
Undecided, lean yes
Undecided, lean no
Probably no
Definitely no
Undecided
Total
Yes
61%
Q. Do you think you would vote yes or no on this measure? 55%
Total
No
35%
About six-in-ten voters initially favor the potential transportation ballot measure on the first reading.
(M.O.E. = ±3.1%)

8 55%
69%
59% 62% 61%
42%
26%
38% 33% 35%
3% 5% 3% 5% 4%
District 1
(Peschong)
District 2
(Gibson)
District 3
(Ortiz-Legg)
District 4
(Paulding)
District 5
(Moreno)
Total Yes Total No Undecided
There is majority support for the measure
in each Supervisorial District.

Q. Do you think you would vote yes or no on this measure? (% of Sample) (19%) (19%) (20%) (19%)
Initial Vote by Supervisorial District
(23%)

9 57%
69% 65% 60%
40%
27% 32% 35%
4% 4% 3% 5%
North County Region North Coast Region Central Region South Region Total Yes Total No Undecided
Similarly, voters in all regions favor the measure with the strongest support in the North Coast and Central regions.
(% of Sample) (35%) (15%) (20%)
Initial Vote by Region
(30%)
Q. Do you think you would vote yes or no on this measure? Page 153 of 198 10 Funding Priorities

11 76%
74%
74%
71%
68%
67%
66%
66%
66%
9%
13%
10%
12%
15%
14%
16%
11%
14%
6%
7%
6%
6%
9%
8%
8%
10%
7%
8%
6%
9%
7%
7%
9%
8%
9%
12%
5%
^Maintaining 911 emergency vehicle access
Keeping roads and highways in good condition
Keeping roads and highways in good condition in all
San Luis Obispo County communities
^Requiring a public review of the measure’s
funding priorities every 10 years
Paving and maintaining streets, roads and highways
in all San Luis Obispo County communities
Reinforcing and replacing aging,
structurally-deficient bridges and overpasses
^Fixing potholes
Qualifying for state and federal transportation
matching funds that would otherwise go to other counties Paving and maintaining streets, roads and highways
6-7 (Very Important) 5 (Somewhat Important) 4 (Neutral) 1-3 (Not Too/Not at All Important) Don't Know Q. Please consider the following list of features and provisions that could be included in the potential San Luis Obispo County Local Pothole Repair, Traffic Relief, Road Safety Measure you just considered.

Please indicate how important it is to you that each feature or provision be included as part of the measure. Please use a scale of one to seven, where one means NOT AT ALL IMPORTANT to you that the feature or provision is included in the measure and seven means it would be VERY IMPORTANT. ^Not Part of Split Sample Mean
Score

6.1 6.0

5.9 6.0

5.9 5.8

5.8 5.8

5.7 Voters’ top priorities for the measure include maintaining 911 emergency vehicle access, keeping roads/highways in good condition, and reinforcing aging structurally-deficient bridges and overpasses. (Ranked by 6-7 (Very Important))

12 65%
63%
63%
62%
61%
59%
59%
58%
56%
56%
10%
13%
12%
16%
18%
13%
17%
18%
16%
14%
9%
10%
6%
6%
7%
11%
10%
9%
12%
11%
14%
12%
18%
10%
12%
16%
12%
13%
13%
17%
6%
^Ensuring all communities get their fair share
of local transportation funding
^Creating local jobs
Keeping bus fares low for students, seniors,
the disabled and veterans
Reinforcing and replacing aging bridges and overpasses
Improving safety for pedestrians
^Fixing bottlenecks on highways and major roads
^Improving traffic flow and safety
Protecting roads and bridges from coastal erosion
^Improving gutters and storm drains to keep trash out of local creeks and coastal water and off beaches
6-7 (Very Important) 5 (Somewhat Important) 4 (Neutral) 1-3 (Not Too/Not at All Important) Don't Know Q. Please consider the following list of features and provisions that could be included in the potential San Luis Obispo County Local Pothole Repair, Traffic Relief, Road Safety Measure you just considered.

Please indicate how important it is to you that each feature or provision be included as part of the measure. Please use a scale of one to seven, where one means NOT AT ALL IMPORTANT to you that the feature or provision is included in the measure and seven means it would be VERY IMPORTANT. ^Not Part of Split Sample Mean
Score

5.6 5.6

5.5 5.8

5.6 5.4

5.6 5.5

5.5 5.4
Continued
(Ranked by 6-7 (Very Important))
Qualifying for hundreds of millions of dollars in state and federal transportation matching funds that would
otherwise go to other counties

13 40%
18%
6%
4%
5%
23%
4%
Q. Do you think you would vote yes or no on this measure? Initial Vote After Information
35%
20%
6%
3%
7%
26%
4%
Definitely yes
Probably yes
Undecided, lean yes
Undecided, lean no
Probably no
Definitely no
Undecided
Total
Yes
61%
Total
Yes
65%
55% 58%
Total
No
35%
Total
No
32%
After information, support for the measure nearly reaches the two-thirds threshold.
(M.O.E. = ±3.1%)

14 36%
14%
6%
5%
7%
27%
5%
40%
18%
6%
4%
5%
23%
4%
35%
20%
6%
3%
7%
26%
4%
Definitely yes
Probably yes
Undecided, lean yes
Undecided, lean no
Probably no
Definitely no
Undecided
Total
Yes
61%
55%
Initial Vote After Information
Total
Yes
65%
Total
Yes
56%
58% 50%
Q. Do you think you would vote yes or no on this measure? Total
No
35%
Total
No
32%
Total
No
38%
Support drops after opposition, with a majority of voters continuing to support the measure.

After Opposition
(M.O.E. = ±3.1%)

15 Conclusions

16 Conclusions
• A ½-cent transportation sales tax for SLO County initially has majority support that reaches a high point of 65% after simulating informational outreach and settles at 56% after simulating opposition.
• Nearly three-quarters of voters recognize the need for funding for the transportation system countywide and in their own area.
• Voters’ top priorities for the measure for funding from the measure are largely related to streets and road improvements including maintaining 911 emergency vehicle access, keeping roads/highways in good condition and reinforcing aging structurally-deficient bridges and overpasses. In addition, voters think the idea of a 10-year review is important.
 Among non-vehicular priorities, keeping bus fares low for targeted groups and improving pedestrian safety are higher priorities.

220-7617
Opinions on a San Luis Obispo County
Transportation Funding Measure
Highlights of a Survey of Likely Voters

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Department: Public Works
Cost Center: Click or tap here to enter text.

For Agenda of: 1/20/2026
Placement: Presentation
Estimated Time: 30
FROM: Aaron Floyd, Public Works & Utilities Director
Prepared By: Jennifer Rice, Public Works Deputy Director for Mobility Services SUBJECT: SAN LUIS OBISPO COUNCIL OF GOVERNMENTS PRESENTATION ON LOCAL ROADS FIRST PROPOSED BALLOT MEASURE– DRAFT

TRANSPORTATION EXPENDITURE PLAN

RECOMMENDATION
Receive and comment on a report and presentation by the San Luis Obispo Council of Governments (SLOCOG) staff regarding a potential Countywide Self-Help Sales Tax Measure and Draft Transportation Expenditure Plan.

REPORT-IN-BRIEF
San Luis Obispo County faces a significant transportation local funding shortfall, limiting the ability of the County and seven cities therein to maintain roads, improve safety, support transit, and leverage state and federal grants. Neighboring Central Coast counties with dedicated local transportation sales taxes, such as Santa Barbara, Santa Cruz and Monterey, have successfully used their local funds to secure state and federal grants that often match or exceed the revenue they collect. SLO County currently has no such local sales tax.

The San Luis Obispo Council of Governments (SLOCOG) prepared a Draft Transportation Plan for the City Council’s review as it relates to the potential placement of a 0.5% sales tax measure on the November 2026 ballot. A 0.5% (also referred to as a “1/2-cent”) local sales tax in San Luis Obispo County could generate approximately $35 million annually, totaling roughly $700 million over 20 years (without escalations), specifically for local transportation. These funds would support local road repairs, safety and mobility improvements, and regional transportation projects while unlocking much needed additional state and federal funding, effectively doubling the total investment in the region. Adopting this measure would provide the region with a stable, predictable funding source, ensure timely delivery of critical transportation projects, and maximize the return on local investment through leveraged grant funding.

SLOCOG is leading the effort to place the sales tax measure on the ballot by drafting the ordinance, which must be approved by the County Board of Supervisors. At this stage, SLOCOG is requesting input from the San Luis Obispo City Council and community on the Draft Expenditure Plan. The ordinance can move forward only if a majority of cities

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approve it and those cities collectively represent a majority of the region’s population. If approved by voters, the tax would be applied countywide, regardless of individual city support, with the earliest possible election in November 2026.

POLICY CONTEXT
The City’s current Legislative Action Platform, adopted by City Council Resolution No. 11554 (2025 Series), includes a number of items expressing support for additional funding sources to fund transportation infrastructure improvements, particularly opportunities to increase funding for projects that support local climate action, active transportation, and roadway maintenance priorities.

Senate Bill (SB) 333, enacted in 2025, applies only to the San Luis Obispo Council of Governments (SLOCOG). The law authorizes SLOCOG to adopt an ordinance placing a new local transactions and use tax of up to 1% before voters. The tax may only take effect if approved by voters in an election held between January 1, 2026 and January 1, 2032.

Most importantly, SB 333 exempts this tax from the standard 2% cap on combined local transactions and use taxes that otherwise applies within a county under California law.

This means the SLOCOG tax would not count toward the existing 2% limit.

A 0.5% countywide transportation sales tax, as discussed in this report, would be subject to California Public Utilities Code Section 180001(e). This section expresses the Legislature’s intent that revenues from local transportation sales taxes are to supplement, not replace, existing local transportation funding, ensuring new funding adds to, rather than subtracts from, local efforts.

DISCUSSION
Background
On January 20, 2026, the City Council will receive a presentation from the San Luis Obispo Council of Governments (SLOCOG) representatives on the potential placement of a 0.5% sales tax measure to support countywide transportation on the November 2026 ballot. On December 10, 2025, the SLOCOG Board approved 10-1 a motion to advance a supplemental funding effort and directed staff to meet with member agencies to gather comments and input on the proposed measure, including feedback on the Draft Transportation Expenditure Plan (Attachment A).

Regional transportation funding continues to fall significantly short of documented needs.

The 2023 SLOCOG Regional Transportation Plan (RTP) identifies a $2.4 billion shortfall for regional projects and programs, including a $400 million gap for pavement maintenance. Early estimates for the 2027 RTP project total shortfalls exceeding $3 billion. Traditional revenue sources for regional transportation maintenance and improvements have not kept pace with rising costs, limiting the ability of local jurisdictions to maintain roadways, advance safety projects, improve mobility, and provide required local match funding for competitive state and federal grants.

In response to similar funding challenges, 25 of the 58 California counties have adopted local sales taxes to specifically fund transportation needs. These taxes are referred to as

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“local transportation sales taxes” and designate those counties as “self-help counties,” meaning that state and federal funding agencies deem these counties as having dedicated funding sources from within their own communities that provide a source of matching grant funds, thereby qualifying those counties for more funding from state and federal sources. These “self-help counties” represent roughly 89% of the state’s population and benefit from a stable, locally controlled revenue source that supports timely delivery of transportation improvements and increases competitiveness for external grant funding. Adding San Luis Obispo County to this list could unlock hundreds of millions of dollars in additional funding and ensure delivery of much-needed projects throughout the region.

A previous 0.5% transportation sales tax measure (Measure J) received 66.3% voter support in 2016, narrowly missing the required two-thirds threshold1 by several hundred votes. As a result, the region has foregone an estimated $270 million in local revenue since 2016—funding that could have been significantly amplified through state and federal grant opportunities. Regional transportation needs have continued to grow, while gas tax revenues face new pressures as the number of fully electric vehicles on the roads in California increases.

Figure 1: Purchasing Power of Federal Gas Tax Rate and Construction Cost Inflation Rate Source: SLOCOG Local Roads First FAQs
At its December 2025 meeting, the SLOCOG Board reviewed the results of community outreach, recent polling, and recommended funding distribution formulas for a potential 2026 ballot measure. The Board directed staff to share the draft expenditure plan and implementation guidelines with member agencies’ City Councils, collect feedback, and continue refining the draft materials.

Polling Results
SLOCOG launched a statistically valid poll in October 2025 by consulting firm, FM3. FM3 conducted an 18-minute survey of more than 1,000 randomly selected likely voters for

1 A local transportation sales tax is considered a special tax, different from a general tax, in which the revenues must be used only for the specific purposes stated (in this case, for transportation purposes). A special tax requires a supermajority (two-thirds) voter approval under the California Constitution as it is considered a stronger commitment of public money.

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the November 2026 election in San Luis Obispo County. The survey used a dual-mode approach (online and by landline and mobile phone) and was offered in both English and Spanish. With a sample size of more than 1,000 respondents, the margin of error is ±3.1% at the 95% confidence level.

The polling results show initial majority support for addressing overall transportation funding needs and for a proposed 0.5% transportation sales tax in San Luis Obispo County. Support peaked at 65% after voters were provided with additional informational outreach, and then declined to 56% when potential opposition arguments were introduced. In response to the polling feedback, the Draft Transportation Expenditure Plan was revised to reflect voter preferences. With these updates, the SLOCOG Board authorized a follow-up tracking poll in 2026 to reassess voter support for the revised Draft Transportation Expenditure Plan. Results of the follow-up poll are scheduled to be presented to the Board on April 1, 2026. Poll results are available for download on SLOCOG’s website.

Self-Help Measures Impacts on the Central Coast
Self-help transportation measures in other California counties demonstrate substantial benefits: they deliver more projects, more quickly, and often at lower cost. Neighboring counties—including Santa Cruz, San Benito, Monterey, and Santa Barbara—are all selfhelp counties and have leveraged hundreds of millions of state dollars through their voterapproved local transportation sales taxes. While all regions, including San Luis Obispo County, receive formula-based state funding, self-help counties have an advantage because they can provide the significant local matching funds needed to successfully compete for additional competitive state and federal grants. Each of these neighboring counties generate between $25 million and $50 million annually from their transportationspecific sales taxes and also qualify for certain state gas tax funds available only to selfhelp counties. They use these local revenues to secure competitive grant awards that can exceed $100 million per project or funding cycle.

SLOCOG reports2that, over the past decade, each of these counties have raised approximately $200 million to $450 million through their transportation sales taxes (with San Benito generating less due to its smaller population). Using these local funds, they have successfully leveraged an additional $200 million to more than $750 million in state grants for the respective communities. By comparison, SLOCOG reports that San Luis Obispo County has foregone an estimated $270 million in local sales tax revenue that would have been collected had the 2016 measure passed, as well as an additional $330 million to $430 million in likely grant funding that could have been secured with that local match. In total, the region has missed out on approximately $600 million to $700 million in transportation investment over the past nine years. This funding could have supported highway and interchange improvements, transit and mobility programs, Safe Routes to School projects, safety enhancements, road maintenance, and other critical needs.

A voter-approved 0.5% transportation sales tax in San Luis Obispo County would generate an estimated $35 million annually and provide substantial leveraging power for

2 Reference: SLOCOG Board of Directors December 10, 2025 Item F-2 Staff Report “Supplemental Funding Update: Polling Results, Draft Expenditure Plan, Implementation Guidelines, and Next Steps”

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state and federal funding opportunities. Based on the experience of other self-help counties, this approach could return more than $1 billion in additional transportation investment to the region over a 20-year period.

Details of Draft Transportation Expenditure Plan
To define how revenues would be distributed and spent, SLOCOG has prepared a draft Transportation Expenditure Plan (the “Plan”) for a potential 2026 measure. The Plan would ultimately be implemented through an ordinance, the legal mechanism required to place a transportation sales tax measure on the ballot. Once approved by voters, any changes to the Plan would require a two-thirds majority vote.

To ensure a fair and equitable distribution of revenues, SLOCOG staff evaluated multiple data metrics and allocation scenarios and discussed them with the region’s City Managers in October 2025. The goal was to identify an approach that is transparent, equitable, and easy for the public to understand, leading to a population-based distribution that is included in the current proposed Plan. Accordingly, the following allocations are based on 2020 Census population data and will be updated with each decennial census.

In its current form, the proposed 0.5% transportation sales tax measure would include the following distributions and premises:
 Sunset: 30-year duration.
 Estimated Revenues: $35 million annually, or $1 billion over 30 years (not accounting for escalation).
 Leverage Potential: Potential to return an additional $900 million to the region over 20 years in competitive State and Federal Grants.
 Proposed Distribution of Revenue:

1. 55% – Local Road Repairs, Safety, and Improvements (Local Agency/Jurisdiction-Determined)
o Funds distributed to each jurisdiction based on population share. o Provides flexibility and local (city) control to address community-specific transportation needs and priorities.
o Ensures opportunities for public input as each jurisdiction sets its priorities. o Eligible uses include:
 Road and bridge repairs, maintenance, and rehabilitation  Safety and congestion relief projects
 Pedestrian, bicycle, sidewalk, crosswalk, multiuse path, and Safe Routes to School improvements
 Community enhancements
 Signal upgrades and synchronization
 Local transit or trolley services
 Other local transportation priorities
Relevance to City of San Luis Obispo: The City would receive a populationbased share of the 55% allocation, estimated at just over $3.2 million per year. The

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use of these funds would be fully at the City’s discretion, provided they are used to supplement transportation-related projects and programs. Potential uses include expanded roadway maintenance, funding capital improvements such as Prado Road Interchange and creek bridge widening, the Foothill, Broad, and Higuera Complete Streets projects, neighborhood traffic calming efforts, Vision Zero efforts, or implementation of the Short-Range Transit Plan.

2. 40% – Regional Corridor Improvements (SLOCOG-Determined) o Funds distributed by formula to support regional priorities, based on population share within the four subregions described below (see Figure 2 on following pages for a map of the four subregions).
o Ensures equitable and guaranteed distribution across four subregions:
 North County
 North Coast
 Central County
 South County
o Allows flexibility to meet varying needs in each subregion. o Provides opportunities for public input when SLOCOG sets regional priorities.
o Eligible uses include:
 Highway, arterial, interchange, and bridge improvements  Vanpool/carpool programs
 Regional trail corridors
 Safety and congestion relief projects
 Regional transit investments
Relevance to City of San Luis Obispo: The City of San Luis Obispo is part of the “Central Region,” which also includes nearby unincorporated areas such as Avila Beach (see Figure 2). The Central Region is estimated to receive just over $3 million annually for regional transportation projects. These funds would be distributed through a SLOCOG-led funding cycle, including a competitive call for projects. Under this structure, the City of San Luis Obispo would compete only within the Central Region. Examples of eligible regional projects include the Prado Road Interchange, a new regional transit center, or implementation of County Corridor Plans such as Highway 227 and Buckley Road.

3. 4% – Senior, Disabled, and Veterans Mobility Improvements (SLOCOGDetermined) o Uses a public process, aligned with existing procedures, to identify and address mobility needs for individuals with mobility challenges. o Ensures public input when SLOCOG determines funding priorities.

Relevance to City of San Luis Obispo: This 4% funding allocation, estimated at approximately $1.4 million per year, is intended to support new programs focused specifically on mobility for seniors, people with disabilities, and veterans. Potential uses include providing free transit services for these populations or implementing a microtransit program tailored to their needs. Funding could be pursued by

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individual agencies, such as SLO Transit, or through partnerships.

4. 1% – Administration of Measure Funds
o Covers required administrative functions, including:
 Development of Implementation Plans
 Project prioritization
 Annual financial audits
 Outreach and communication
 Revenue distribution to jurisdictions
 Support for Measure-related committees
 Technical assistance
Relevance to City of San Luis Obispo: This allocation up to 1% of total revenues and estimated at approximately $350,000 annually, would be used exclusively to support SLOCOG’s administrative responsibilities, including planning, oversight, and program development necessary to successfully implement the measure. The City of San Luis Obispo would not receive any direct portion of this.

Table 1: 1-Year Distribution of $35M
Population* % Distribution
Arroyo Grande 18,441 6.5% $ 1,256,955
Atascadero 29,773 10.5% $ 2,029,354
Grover Beach 12,701 4.5% $ 865,712
Morro Bay 10,757 3.8% $ 733,207
Paso Robles 31,490 11.2% $ 2,146,387
Pismo Beach 8,072 2.9% $ 550,195
San Luis Obispo 47,063 16.7% $ 3,207,856
Unincorporated 124,123 43.9% $ 8,460,335
282,420 100.0% $ 19,250,000
North County 99,329 35.2% $ 4,923,893
South County 80,716 28.6% $ 4,001,218
Central County 40,125 14.2% $ 3,085,830
North Coast 62,250 22.0% $ 1,989,059
282,420 100.0% $ 14,000,000
$ 1,400,000
$ 350,000
$ 35,000,000
*Based on 2020 Census
Total
Total
4% for Senior/Disabled/Veterans' Mobility Improvements
1% Administration Costs (Maximum)
TOTAL
55% for Local Control: Local Road Repair, Safety and Improvements 40% for Regional Corridor Improvements Page 169 of 198
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Figure 2: Subregions within SLO County
SLOCOG’s Draft Transportation Expenditure Plan includes a comprehensive set of accountability, transparency, and performance requirements designed to protect local interests and ensure Measure funds are used effectively. Several provisions are especially important for cities:

Maintenance of Effort (MOE): The Plan includes an MOE3requirement to ensure jurisdictions cannot replace existing General Fund transportation spending with Measure funds. Each local agency must maintain, at a minimum, the same level of discretionary General Fund revenues that were spent on average for Fiscal Years 2024, 2025, and 2026 for transportation purposes. If the measure is approved, SLOCOG staff will work with City staff to establish this baseline by reviewing transportation budgets and funding sources from that period. Certain funding sources are excluded from the MOE calculation, even if they are accounted for within the General Fund, including grants, and other special revenues such as gas tax funds or assessment district fees.

3 Maintenance of Effort (MOE) is a requirement that obligates jurisdictions to continue funding transportation at or above established baseline levels after the adoption of a new revenue source. This ensures that new transportation sales tax revenues are used to enhance overall transportation investment and are not used to supplant existing local transportation funds.

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Eligibility Requirements: To receive Measure funding, jurisdictions must maintain certain programs, including a Mitigation Fee Program, Circulation Element, Capital Improvement Program, Pavement Maintenance Plan, and annual Expenditure Report.

The City of San Luis Obispo already maintains these programs. SLOCOG’s role is limited to verifying that these plans have been formally adopted; once adopted, the eligibility requirement is met.

Local Discretion and Reporting: The City’s local allocation does not require prior approval from SLOCOG or its Board before funds are spent. Spending decisions remain entirely at the City’s discretion. However, the City must submit an annual report documenting how discretionary funds were used, which SLOCOG will review for consistency with eligibility requirements. The City already performs similar reporting for SB 1 gas tax compliance, however, this measure would require preparation of a new, separate report.

Regional Fund Time Limits: The regional allocation will be distributed through a callfor-projects process. Agencies awarded funding, similar to grant agreements, will agree to time limits for when funds must be spent.

Planning and Performance Evaluation: To support long-range planning and continuous improvement, the Plan requires regular updates and evaluations led by SLOCOG staff.

These include biennial implementation plans, three-year performance assessments, and a ten-year comprehensive review to assess changing needs, costs, and conditions.

Citizens’ Oversight Committee: The Plan establishes a Citizens’ Oversight Committee to ensure transparency and accountability. The Committee of 12 members would be made up of one resident representative appointed by each incorporated city (Arroyo Grande, Atascadero, Grover Beach, Morro Bay, Paso Robles, Pismo Beach, San Luis Obispo) and one member from each of the County’s Supervisorial District’s within the unincorporated areas. The SLOCOG Policy Board will approve the appointments to the Committee. The Committee will review expenditure plans and reporting and will make recommendations and findings to the SLOCOG Policy Board.

Plan Updates and Excess Revenue: The Plan also outlines processes for future updates, amendments, and allocation of any excess revenues.

Together, these provisions create a framework emphasizing transparency, local control, financial responsibility, and accountability, which are critical for City Councils evaluating whether the proposed measure aligns with community priorities and governance expectations. Additional details are provided in the Draft Transportation Expenditure Plan (Attachment A) and the December 10, 2025 SLOCOG Board Staff Report (Attachment B).

Schedule and Next Steps
SLOCOG is leading the effort to initiate the transportation sales tax by drafting the ordinance. The County Board of Supervisors must approve the ordinance in order for the measure to be placed before voters.

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Following SLOCOG Board direction in December 2025, SLOCOG staff have been presenting the Draft Transportation Expenditure Plan to the seven City Councils to gather input for potential revisions. Recommendations from these meetings will be evaluated for incorporation into the Final Expenditure Plan. The SLOCOG Board is scheduled to review and consider approval of the Final Expenditure Plan and introduce the associated Ordinance at its February 4, 2026, meeting.

After SLOCOG Board action, the Final Expenditure Plan will be returned to each city and the County for approval. To move forward, the ordinance must be approved by a majority of the cities, and those approving cities must collectively represent a majority of the region’s population. If this majority approval is reached, the SLOCOG Board may take final action to submit the measure to the County Board of Supervisors for placement on a future ballot—the earliest option being November 2026. If voters approve the tax, it would be applied countywide, regardless of whether an individual city supported the measure.

Key Milestones and Timeline
• Summer–Fall 2025: Engagement activities, focus groups, workshops, and polling.
• November 2025: Development of the Draft Transportation Expenditure Plan and continued engagement.
• December 10, 2025 – SLOCOG Board Meeting: Review and comment on the Draft Plan; release the Draft Plan to cities and the County for review. • December 2025–January 2026: Local agency review and comment period. o January 20, 2026: City of San Luis Obispo Council consideration. • February 4, 2026 – SLOCOG Board Meeting: Address local agency comments; approve the Final Expenditure Plan; introduce the Ordinance; transmit Final Plan to cities and the County for formal approval. • February–March 2026: City and County approval of the Final Expenditure Plan.
o March 3, 2026: City of San Luis Obispo Council consideration. • April 1, 2026 – SLOCOG Board Meeting: Consider adoption of the Ordinance and Measure materials.

Previous Council or Advisory Body Action
On June 21, 2016, the City Council adopted a resolution approving the 2016 San Luis Obispo County Self-Help Transportation Investment Plan. As mentioned above, this

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previous sales tax measure (Measure J) was ultimately unsuccessful at the November 2016 General Election.

On March 5, 2024, the City Council received a presentation on a Draft Transportation Investment Plan and formed an ad hoc subcommittee to review it; however, the proposed measure ultimately was not advanced to the ballot.

This item is the first formal presentation to the City Council on the 2026 Countywide Self -Help Transportation Sales Tax Measure proposal.

Public Engagement
This item is scheduled for the City Council meeting on January 20, 2026. Staff will complete all required postings and notifications. The public will have the opportunity to provide comments at or before the meeting. If the SLOCOG Board elects to continue advancing the transportation sales tax measure, the item is expected to return to the City Council on March 3, 2026, for additional discussion.

To inform development of the Draft Transportation Expenditure Plan, SLOCOG staff and consultant teams engaged with the community throughout 2025. Outreach included meetings with community groups and organizations, responses to media inquiries, and a dedicated project website with information and a public survey. Four focus groups were conducted in August 2025, and seven workshops (six in person and one virtual) were held in Fall 2025 throughout the County. Polling was also completed during Fall 2025.

Since June 1, 2025, SLOCOG has presented at nearly 70 public and community meetings across the region. The following is a list of those specifically relevant to, and with representation from, City of San Luis Obispo community members:
 Safe Routes to School (SRTS) Taskforce on April 10, 2025  SLO Morning Kiwanis Club on June 17, 2025
 SLO Chamber Joint Government and Legislative Committee on July 10, 2025, and December 10, 2025
 SLO & Santa Barbara Counties Construction Trades on July 10, 2025  Democrats of San Luis Obispo Club on August 11, 2025
 SLOCOG lead focus group (1 of 4 countywide) on August 20, 2025  SLO Commission on Aging on September 24, 2025
 COLAB on October 14, 2025
 American Council of Engineering Companies, SLO Chapter on October 15, 2025  REACH - BDC Event on November 12, 2025
 American Society of Civil Engineers, SLO Chapter on December 4, 2025 Outreach efforts were promoted by SLOCOG through public Board meetings, County Advisory Committee newsletters, coordination with city and county staff and managers, press releases, media outreach, and a dedicated SLOCOG e-blast. Staff continue to coordinate with City Managers, the County Executive Officer, transit operators, and other partners to gather insights on key issues and needs.

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Public input remains encouraged through the Local Roads First website and survey at www.localroadsfirst.com.

CONCURRENCE
This staff report was reviewed and approved by the City Public Works and Utilities Department, Finance Department, City Attorney and City Administration.

ENVIRONMENTAL REVIEW
The California Environmental Quality Act (CEQA) does not apply to the recommended action in this report because the action does not constitute a “Project” under CEQA Guidelines Section 15378. All projects funded with potential future transportation sales tax funds will be required to complete appropriate CEQA analysis and other environmental review as required.

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 $0 $0 $0
State
Federal
Fees
Other:

Total $N/A $0 $0 $0
There are no immediate fiscal impacts to the City by supporting the Draft Transportation Expenditure Plan, or in supporting the potential addition of a transportation sales tax measure on the ballot in November.

If the 0.5% sales tax measure is passed, this would increase the City of San Luis Obispo’s current sales tax level from 8.75% to 9.25%. SLOCOG estimates4that for individuals earning a salary of $60,000, the increase of 0.5% sales tax would cost $2.31 per week.

The measure is projected to generate approximately $35 million per year countywide, or about $1 billion over 30 years, assuming no cost escalation. Of this total, revenues would be split between local and regional projects. The City of San Luis Obispo is estimated to

4 Source: SLOCOG Local Roads First FAQs

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receive approximately $3.2 million per year directly. Over the 30-year life of the measure, this would total about $96 million to support eligible local projects such as road maintenance, congestion relief, active transportation, and safety improvements.

Additionally, the City would capture and benefit from millions of dollars from the Central County Regional investments for regional road safety, public transportation, and active transportation projects and improvements.

If the measure moves forward and is passed by voters, to be eligible to receive funding per the Draft Transportation Expenditure Plan Maintenance of Effort section, the City would be required to maintain, at a minimum, the same level of local General Fund revenues that were expended on average for Fiscal Years 2024, 2025, and 2026 for transportation purposes. (Note that this average is General Fund revenue only and does not include revenue from additional taxes or revenues, such as grants, gas tax or the City of San Luis Obispo’s Local Revenue Measure.)
There would be no direct costs to the City related to adding this proposed measure to the November ballot, as the full costs would be funded by SLOCOG.

ALTERNATIVES
The Council may choose not to provide feedback regarding a potential sales tax measure or the Draft Transportation Expenditure Plan at this time.

SLOCOG staff will return to the SLOCOG Board on February 4, 2026, to present feedback received through stakeholder outreach and to receive direction on next steps. This may include refinements to the proposed measure and Transportation Expenditure Plan, as well as direction on whether to continue advancing the proposal for placement on the November 2026 ballot. If the measure proceeds and the Council does not provide input at the January 20 meeting, there will be limited time for SLOCOG staff and the Board to incorporate the City’s comments and ensure that City priorities are adequately reflected in the final ballot measure and Transportation Expenditure Plan.

To move forward, the ordinance must be approved by a majority of the cities, and those approving cities must collectively represent a majority of the region’s population. If this majority approval is not reached, or if the SLOCOG Board or Coard of Supervisors chooses not to support the proposed sales tax measure, the current Regional Transportation Plan remains underfunded by $2.4 billion based on existing revenue forecasts, and without a new, locally controlled funding source, many planned local and regional transportation maintenance and improvement projects will not be achievable.

ATTACHMENTS
A - Draft Transportation Expenditure Plan
B - December 10, 2025, SLOCOG Board Staff Report on Regional Self -Help Measure

San Luis Obispo County Transportation
Expenditure Plan
Introduction
San Luis Obispo County’s transportation system is essential to the safety, mobility, and economic vitality of its residents, businesses, and visitors. Yet existing state and federal revenues are inadequate to maintain local streets and roads, operate reliable transit, and deliver major regional improvements.

This Transportation Expenditure Plan establishes a dedicated local funding source — a voter-approved ½-cent transactions and use tax — projected to generate approximately $35 million per year. All revenues will remain in San Luis Obispo County and may only be used for transportation purposes.

The Plan emphasizes geographic equity, fairness, transparency, and strong taxpayer safeguards while ensuring flexibility to leverage state and federal funds.

Revenue Distribution
Annual revenues shall be allocated as follows:
• 55% Local Road Repairs, Safety, and
Improvements distributed by population to cities
and the County. (Reviewed every ten years based
on census data1).
• 40% Regional Corridor Improvements distributed
by subregion population within the areas defined
as shown.
• 4% Seniors, Veterans, and Mobility Challenged
Transportation Services, regionwide.
• 1% Administration
1 Should a new city become incorporated, the percentages would be adjusted to reflect the updated population distribution.

Eligible Uses of Funds
Local Road Repairs, Safety, and Improvements (55%)
Funds are distributed by population and may be used for:
• Local road maintenance, rehabilitation, and repair.
• Safe Routes to School and Safe Routes to College programs. • Bicycle and pedestrian improvements (sidewalks, crosswalks, multi-use paths). • Bridge safety and seismic retrofits.
• Local operational and traffic safety improvements.
• Community enhancements tied to transportation
(streetscape, lighting, landscaping, wayfinding).
• Signal synchronization.
• Piers, walkways and other pedestrian or bike paths in and around waterfront and river areas.
• Transit services including local trolley services may be funded if desired by a City.

Regional Corridor Improvements (40%)
Regional project funds shall be distributed among subregions and may be used for:
• Highway and major corridor congestion relief improvements and including van or carpool lanes or other congestion relief measures.
• Safety and interchange improvements.
• Regional bicycle and pedestrian connectors between communities like the Bob Jones Trail.
• Interagency Transit access and improvements and efficiency programs • Mitigation impacts for proposed improvements.
• Other projects consistent with the adopted Regional Transportation Plan (RTP).

Seniors, Veterans and Mobility Challenged Transportation Services (4%) Project funds shall support expansion and improvements to mobility programs that prioritize services for seniors, veterans, and mobility challenged regionwide.

Administration (1%)
SLOCOG shall allocate no more than 1% of annual revenues for administration, planning, reporting, auditing, and program oversight.

Maintenance of Effort (MOE)
The enabling legislation in Public Utilities Code PUC 180001(e) states:

It is the intent of the Legislature that funds generated pursuant to this division be used to supplement and not replace existing local revenues used for transportation purposes.

Each Agency receiving revenues for “Local Projects” shall annually maintain, at a minimum, the same level of local fully discretionary general fund revenues that were expended on average for fiscal years 2023/24, 2024/25 and 2025/26, for transportation purposes. Dedicated funds for transportation such as gas tax revenues are not counted as general fund revenues. Transfers into the general fund will not be counted as general fund revenues. Grant awards and general fund revenues used as matching funds for grant awards will not be counted as general fund revenues.

Unusual one-time general fund allocations that have been expended for transportation purposes may be exempted prior to determining the Agency’s average expenditure for the three fiscal years noted above at the discretion of the SLOCOG Governing Board.

An agency petitioning for an exemption under this provision must supply evidence of the need for special consideration and the petition must be approved by a majority vote of the SLOCOG Governing Board.

The Authority shall not allocate any Net Revenues to any jurisdiction for any fiscal year until that jurisdiction has certified to the Authority that it has included in its budget for that fiscal year an amount of local discretionary funds for streets and roads purposes at least equal to the level of its maintenance of effort requirement. An annual independent audit will be conducted by the Authority to verify that the maintenance of effort requirements are being met by the jurisdiction. Any Net Revenues not allocated pursuant to the maintenance of effort requirement shall be allocated to the remaining eligible jurisdictions according to the formula described in the Ordinance.

Exceptions
Subject to Authority approval, if any local jurisdiction had extraordinary local discretionary fund expenditures during any fiscal year it may determine that year’s minimum expenditure base level of local discretionary funds by:
(a) subtracting those extraordinary expenses funding, assessment district contributions, development impact funds, redevelopment agency contributions, or other non-recurring contributions) from its total expenditures; or

(b) petitioning the Authority for special consideration. It is possible that a local jurisdiction may need to revise its minimum expenditure base beyond the subtraction of extraordinary expenses. In this instance, the Authority may allow the establishment of a new base for that jurisdiction's Maintenance of Effort requirement.

A local jurisdiction petitioning the Authority under this provision must supply evidence of the need for special consideration and the petition must be approved by a majority vote of the Authority.

Requirements For Eligible Jurisdictions
In order to be eligible to receive Net Revenues, a jurisdiction shall satisfy and continue to satisfy the following requirements.

1. Mitigation Fee Program. Assess traffic impacts of new development and require new development to pay a fair share of necessary transportation improvements attributable to the new development.

2. Circulation Element. Adopt and maintain a Circulation Element as part of the jurisdiction’s General Plan,

3. Capital Improvement Program. Adopt and update a minimum Five-Year Capital Improvement Program (CIP). The CIP shall include all capital transportation projects, including projects funded by Net Revenues, and shall include transportation projects required to demonstrate compliance with pavement management requirements.

4. Pavement Management Plan. Adopt and update a Pavement Management Plan, and issue, using a common format approved by the Authority, regular reporting on the status of road pavement conditions and implementation of the Pavement Management Plan.

5. Expenditure Report. Adopt an Expenditure Report to account for Net Revenues, developer/traffic impact fees, and funds expended by the Eligible Jurisdiction which satisfy the Maintenance of Effort requirements. The Expenditure Report shall be submitted by the end of six (6) months following the end of the jurisdiction’s fiscal year and include the following:
a. All Net Revenue fund balances and interest earned.
b. Expenditures identified by type (i.e., capital, operations, administration, etc.), and program or project.

6. Project Final Report. Provide Authority with a Project Final Report within six months following completion of a project funded with Net Revenues.

7. Time Limits for Use of Net Revenues.
a. Agree that Net Revenues for Regional Projects shall be expended or encumbered no later than the end of the fiscal year for which the Net Revenues are programmed. A request for extension of the encumbrance deadline for no more than twenty-four months may be submitted to the Authority no less than ninety days prior to the deadline. The Authority may approve one or more requests for extension of the encumbrance deadline. b. In the event the time limits for use of Net Revenues are not satisfied then any retained Net Revenues that were allocated to an Eligible Jurisdiction and interest earned thereon shall be returned to the Authority and these Net Revenues and interest earned thereon shall be available for allocation to any project within the same source program.

8. No Supplanting of Funds. Agree that Net Revenues shall not be used to supplant developer funding which has been or will be committed for any transportation project.

9. Public Notice of Use of Measure Funds. Member agencies will provide the public with planned use of measure funding as part of its annual or biennial budget process. This includes each City and each Community Advisory Council will receive at a minimum, twice yearly presentations from the jurisdiction to review proposed investments prior to annual allocations.

Determination of Non-Eligibility
A determination of non-eligibility of a jurisdiction shall be made only after a hearing has been conducted and a determination has been made by the Authority’s Board of Directors that the jurisdiction is not an Eligible Jurisdiction as provided hereinabove.

Taxpayer Safeguards

1. A transportation special revenue fund (the “Local Transportation Authority Special Revenue Fund”) shall be established to maintain all Revenues.

2. Accounting Receipt, maintenance and expenditure of Net Revenues shall be distinguishable in each jurisdiction’s accounting records from other funding sources, and expenditures of Net Revenues shall be distinguishable by program or project. Interest earned on Net Revenues allocated pursuant to the Ordinance shall be expended only for those purposes for which the Net Revenues were allocated.

3. No Net Revenues shall be used by a jurisdiction for other than transportation purposes authorized by the Ordinance. Any jurisdiction which violates this provision must fully reimburse the Authority for the Net Revenues misspent and shall be deemed ineligible to receive Net Revenues for a period of five (5) years.

4. A Taxpayer Oversight Committee (“Committee”) shall be established to provide an enhanced level of accountability for expenditure of Revenues under the Ordinance. The Committee will help to ensure that all voter mandates are carried out as required. The roles and responsibilities of the Committee, the selection process for Committee members and related administrative procedures shall be carried out as described below.

5. A performance assessment shall be conducted at least once every three years to evaluate the efficiency, effectiveness, economy and program results of the Authority in satisfying the provisions and requirements of the Investment Summary of the Plan, the Plan and the Ordinance. A copy of the performance assessment shall be provided to the Committee.

6. Regular status reports regarding the major projects detailed in the Plan shall be brought before the Authority in public meetings.

7. Annual Report Annually the Authority shall publish a report on how all Revenues have been spent and on progress in implementing projects in the Plan and shall publicly report on the findings and posted on the agency website.

Ten-Year Comprehensive Program Review
At least every ten years the Authority shall conduct a comprehensive review of all projects and programs implemented under the Plan to evaluate the performance of the overall program and may revise the Plan to improve its performance. The review shall include consideration of changes to local, state and federal transportation plans and policies; changes in land use, travel and growth projections; changes in project cost estimates and revenue projections; right-of-way constraints and other project constraints; level of public support for the Plan; and the progress of the Authority and jurisdictions in implementing the Plan. The Authority may amend the Plan based on its comprehensive review, subject to the requirements of Plan Update, Approval Process, and Expenditure Plan Amendments section of this plan.

Governing Board and Organizational Structure
The San Luis Obispo Council of Governments (SLOCOG) serves as the designated Local Transportation Authority for San Luis Obispo County and is responsible for administering

the Transportation Measure in compliance with Public Utilities Code (PUC) 180000 et seq. Upon voter approval of the Transportation Measure, the Board of Directors of SLOCOG will serve as the Authority Board and will oversee its implementation in accordance with the plans and programs detailed in this and future updates of the Expenditure Plan.

This Expenditure Plan provides for the creation of a Citizens’ Oversight Committee to ensure transparency and accountability. Details regarding the Committee are contained in this plan. The Biannual Implementation Plan will be prepared and updated by SLOCOG staff and approved by both the SLOCOG Policy Board and the Local Transportation Authority.

Per PUC 180000, the Authority’s governing board will include representation as follows:
• Five (5) members of the San Luis Obispo County Board of Supervisors • One (1) member representing each incorporated city within San Luis Obispo County—Arroyo Grande, Atascadero, Grover Beach, Morro Bay, Paso Robles, Pismo Beach, and San Luis Obispo—appointed by their respective city councils.

Alternates to the regular members may participate in accordance with SLOCOG bylaws.

Should another city become incorporated, it will have one seat on the steering committee.

Plan Update, Approval Process, and Expenditure Plan
Amendments
Three primary documents guide plan administration:

1. Expenditure Plan – Approved by voters and amendable once per year, following the process described below.

2. Annual Report – Prepared each year by the Citizens’ Oversight Committee to review expenditures and communicate results to the public.

3. Biennial Implementation Plan – Prepared every two years to outline project expenditures and coordinated with the development schedule of the State Transportation Improvement Program (STIP).

In compliance with state and federal requirements, SLOCOG regularly prepares a Regional Transportation Plan (RTP)that identifies priority projects across all transportation modes, including highways, local roads, public transit, bikeways, and aviation. Should funds become available for projects not listed in this Expenditure Plan, they may be drawn from the RTP project list.

SLOCOG will have the option to issue bonds to accelerate project delivery, thereby reducing overall costs by advancing construction timelines.

All updates to the Expenditure Plan will undergo public review and hearings. Candidate projects and priorities may evolve, but the county’s extensive transportation needs will ensure robust use of all available funding, including sales tax revenues. During each update, a balanced approach across transportation modes will be emphasized to ensure efficiency and equity in addressing mobility needs throughout San Luis Obispo County.

Amendment Process
As specified in PUC Section 180207:
• (a) Once per calendar year, the Authority may review and propose amendments to the county’s transportation expenditure plan to incorporate additional revenues, account for unanticipated funds, or respond to unforeseen circumstances.

Amendments adopted late in the year will not preclude additional amendments in the following year.
• (b) The Authority must notify the County Board of Supervisors and each city council, providing copies of proposed amendments for their review. • (c) Amendments become effective 45 days after notification.

Changes to funding categories or overall allocation formulas require voter approval.

Biennial Implementation Plan
At least once every two years, SLOCOG will prepare and adopt a Transportation Measure Implementation Plan. This plan will include a financial component consistent with both the Regional Transportation Improvement Program (RTIP) and the STIP.

Process steps include:
• SLOCOG staff, working with member agencies and stakeholders, will draft and update the Implementation Plan biennially.
• The SLOCOG Policy Board will review the Draft Implementation Plan, hold public hearings, and incorporate feedback.
• Following review, the Policy Board formally adopts the Implementation Plan.

Bonding Authority
The Authority shall have the power to sell or issue, at any time, and from time to time, including on or before the collection of the taxes authorized by this Ordinance, bonds, notes or other evidences of indebtedness, including capital appreciation bonds, payable from and secured by the proceeds from the sales taxes authorized by this Ordinance and from the proceeds of the existing Measure (TBD) sales taxes, in order to finance and refinance the transportation projects identified in the Transportation Expenditure Plan.

Bonding indebtedness shall be limited to 35% of net sales measured at the end of the 30-

year program. An additional bonds test (ABT) no lower than 1.5x Maximum Annual Debt Service will be measured against revenues for any consecutive 12-month period in the prior 18 months.

Allocation of Excess Revenues
If revenues exceed projections or contingency needs, excess funds will first be used to complete projects listed in this Plan. Secondary priority may be given to additional RTPconsistent projects, following an amendment process.

Independent Financial Audits
If the Transportation Measure is approved by the voters, the San Luis Obispo Council of Governments (SLOCOG) will conduct independent financial audits of all revenues and expenditures associated with the measure in accordance with Public Utilities Code 180000 et seq. These audits will ensure full transparency and accountability in the use of voter-approved sales tax revenues.

The results of the audits will be presented annually to the SLOCOG Policy Board and made available to the public, reinforcing confidence in the administration of the Transportation Measure. Findings will also be shared with the Citizens’ Oversight Committee to support their independent review of expenditures and compliance with the Expenditure Plan.

Administration Program – 1% of Measure Revenues
To effectively manage and implement the Transportation Measure, SLOCOG will cap administration costs at no more than 1% of annual sales tax revenues to administrative activities. This allocation supports the necessary planning, oversight, and program development functions required for successful execution of the measure.

Key administrative responsibilities of SLOCOG include:
• Annual Work Program and Budget
Prepare and adopt an annual work program and budget outlining planned expenditures, oversight activities, and administrative costs. • Allocation Program Requirements and Focused Studies
Develop requirements for each funding program established by the Expenditure Plan and undertake specialized studies needed to implement those programs effectively.
• Biennial Implementation Plan
Prepare and update the Transportation Measure Implementation Plan every two years, aligning it with the Regional Transportation Improvement Program (RTIP) and State Transportation Improvement Program (STIP)schedules.

• Project Prioritization
Establish and update priority lists for regional capacity-enhancing and rehabilitation projects, in coordination with member jurisdictions and consistent with Expenditure Plan goals.
• Independent Annual Audit
Conduct an independent audit of all Transportation Measure funds to ensure compliance, fiscal integrity, and accountability to the public. • Public Outreach and Communication
Carry out ongoing outreach and public education efforts to keep residents informed about project progress, financial performance, and planned updates. • Bond Issuance for Accelerated Delivery
Issue bonds when appropriate to expedite project delivery, reducing overall project costs by leveraging future revenues for near-term improvements. • Revenue Allocation to Local Jurisdictions
Distribute Transportation Measure proceeds to incorporated cities and the county in accordance with the formulas and criteria established in the Expenditure Plan. • Support for Oversight Committees and Related Technical Assistance Provide staff support to advisory committees and furnish technical assistance to member jurisdictions to ensure consistent, equitable, and effective program implementation.

Citizens’ Oversight Committee
Committee Purpose
• To provide oversight on the implementation of the Transportation Expenditure Plan and advise the SLOCOG Policy Board when the Plan needs to be updated or augmented, ensuring that funds are spent in accordance with the approved Plan. • To inform the public and confirm that revenues and expenditures from the Transportation Measure are spent as promised to San Luis Obispo County voters.

Committee Formation
• The Committee will be formed within six (6) months following voter approval of the Transportation Measure in San Luis Obispo County.
• The Committee shall be a permanent component of the Expenditure Plan and cannot be eliminated by amendment.
• Meetings will begin when Transportation Measure revenues are recommended for expenditure, including Implementation Plan updates.

Selection and Duties of Committee Chair and Vice Chair
• The Committee will select a Chair and Vice Chair from among its members, each serving a one-year term.

• Chair Duties: Call meetings, set agendas, and preside over meetings. • Vice Chair Duties: Perform the Chair’s duties in the Chair’s absence.

Committee Meetings
• The Committee will hold at least two formal meetings annually, with additional meetings scheduled as needed.
• All meetings will comply with the Brown Act (open meeting requirements). • Meetings will be conducted in accordance with Robert’s Rules of Order.

Subcommittee Requirements
• The Committee may form subcommittees to address specific tasks or focus areas. • All subcommittees will consist of an odd number of members to ensure clear decision-making.

Committee Membership, Selection, and Quorum
The Committee will reflect the geographic and demographic diversity of San Luis Obispo County and consist of 12 members. Each represented organization will nominate its representative, with final appointments approved by the SLOCOG Policy Board.

Membership Composition:
• One resident representative appointed by each incorporated city (Arroyo Grande, Atascadero, Grover Beach, Morro Bay, Paso Robles, Pismo Beach, San Luis Obispo) and one member from each of San Luis Obispo County’s Supervisorial District’s within the unincorporated areas. (Total of 12)
The SLOCOG Policy Board will review and appoint these members. If any jurisdiction is unable to appoint a representative, SLOCOG may fill the position through an open application process. Should a new City become incorporated, a representative from that jurisdiction shall be appointed by the City.

Quorum
• A quorum will consist of no fewer than seven (7) members. • Actions may be approved by a simple majority of members present, provided the quorum is met.

Term of Membership

• Members serve two-year terms, with a maximum of eight consecutive years of service.
• To establish staggered terms, the initial appointments will be divided so that half serve one-year terms and half serve two-year terms, determined by random selection.
• Proxy voting is not permitted.

Eligibility
• Must be a U.S. citizen, 18 years or older, and a resident of San Luis Obispo County. • Cannot be an elected official of San Luis Obispo County or its cities. • Cannot be an employee of state, county, or city government agencies within San Luis Obispo County (except employees of educational institutions).

Staffing
• SLOCOG staff will provide technical and administrative support, including preparation of agendas, meeting materials, and public communications. • Administrative costs for staffing will be funded through the Transportation Measure’s administrative allocation.
• Expert staff and consultants may be invited to present information or analyses as needed.

Responsibilities
The Committee will review and provide recommendations on financial and programmatic aspects of the Transportation Measure, including:
• Reviewing and commenting on independent financial and performance audits of Measure funds.
• Reviewing periodic reports, studies, and plans related to Measure revenues and expenditures.
• Ensuring that expenditures are consistent with the Expenditure Plan. • Conducting an annual review of sales tax revenue use and publicly reporting findings.
• Presenting recommendations and findings in a formal annual report to the public and SLOCOG Policy Board.
• Accessing information from SLOCOG’s independent auditor and requesting additional information as necessary to fulfill oversight responsibilities. • Remaining informed of advancements in transportation planning and finance to ensure oversight remains relevant and effective through the duration of the Measure.

Measure Duration
This Transportation Expenditure Plan shall remain in effect for 30 years as approved by San Luis Obispo County voters.

F-2-1

SAN LUIS OBISPO COUNCIL OF GOVERNMENTS

STAFF REPORT
MEETING DATE: DECEMBER 10, 2025 ITEM F-2
SUBJECT:

STAFF CONTACT:

Supplemental Funding Update: Polling Results, Draft Expenditure Plan, Implementation Guidelines, and Next Steps
James Worthley/Annie Bowsky/Kendall Flint, DKS/Richard Bernard, FM3

SUMMARY
Transportation funding for future infrastructure falls short of our needs within the San Luis Obispo region. A dedicated, local transportation sales tax is an invaluable tool that 25 California county transportation authorities use to deliver timely, cost-efficient transportation improvements to their communities. Adding San Luis Obispo county to the list of California’s self-help counties would help unlock hundreds of millions of dollars in additional transportation funding, guaranteeing, and delivering muchneeded transportation improvements and repairs for our residents and to our communities.

A San Luis Obispo regional, ½ cent sales tax for transportation would:
• Generate $35M annually, escalating each year (topping $1B over 30 years without escalations) • Reclaim $0.8M to $1M, annually, from State funds
• Collect a $3M to $5M one-time windfall from State funds • Qualify the region to receive our fair-share of State and Federal funds (our neighboring Central Coast Counties have seen average annual grants that equal or nearly double collected tax amounts) • Include Investment Guidelines providing safeguards, assurances, and oversight of all funds. • Guarantee 99% of all funds be for transportation-related improvements within the Expenditure Plan Attachments: Draft Polling Results and Draft Transportation Expenditure Plan / Implementation Guidelines

RECOMMENDATIONS
Staff: 1) Receive and Comment
2) Adopt Distribution Formulas
3) Direct Staff to Present Draft Expenditure Plan materials to Member Agencies and Seek Comments / Feedback; and Proceed with Development/Refinement of Draft Materials 4) Direct Staff to Publish a Public Hearing Notice ahead of the February 4, 2026 Board Meeting 5) Direct Staff to Return on February 4, 2026 for SLOCOG Board Review of Comments Received and Determination of Next Steps.
6) Direct Staff to Fund a 2026 Tracking Poll within Existing Contract Services and Budget.

TTAC: Support Staff Recommendation.

CTAC: Support Staff Recommendation.

SSTAC: Support Staff Recommendation.

DISCUSSION
Successful Transportation Measures are built upon input received through presentations, website feedback, focus groups, workshops and stakeholder input. The desired result is an equitable distribution of funding, with “right-fit” investments and flexibility, to address multiple transportation needs throughout the region. Staff worked with its consultant teams (DKS Associates, FM3, and Koble Collaborative), gained input from community groups and organizations, responded to media inquiries and interviews, hosted a website with information and a survey to gain input from the public, Four focus groups were completed in August 2025, 6 in person and 1 virtual Workshops were completed in Fall 2025, Polling was completed in Fall 2025, and SLOCOG has presented at nearly 70 public or community meetings, groups, and workshops across the region since June 1, 2025. With this information gathered, staff worked with its partners and the consultant team to prepare the draft Transportation Expenditure Plan and Implementation Guidelines for Board review.

SLOCOG Board Approved: 10-1, with 1 absent

F-2-2
Staff continue its efforts to engage with the public and key stakeholders to seek and share information and to refine necessary materials.

Polling Results – Attachment 1 (Attachment 1, developed by FM3, is anticipated to be available for download on 12/8/25)
A statistically-valid poll (phone/text/email) began in October 2025. FM3 conducted an 18-minute survey among 1,000+ randomly selected November 2026 likely voters in San Luis Obispo County. The survey was conducted using dual-mode methodology where the survey is conducted both online and by land and cellular phones. The survey was offered in Spanish and English both online and by phone. A sample size of 1,000+ has a margin of error of ±3.1% (at the 95% confidence level).

Results of this poll will be presented at the SLOCOG meeting.

Prior to the April 1, 2026 Board meeting, the completion of a Tracking Poll is recommended to ascertain voter perspectives on the Draft Expenditure Plan. By shifting funds within the existing Local Roads First contracts, this poll may be completed using currently budgeted resources. $35,000 would complete a 600 person poll; $50,000 would complete a 1,000 person poll. Results of this poll would be provided at the April 1st 2026, SLOCOG Board
meeting
Draft Transportation Expenditure Plan and Implementation Guidelines – Attachment 2 Expenditure Plans provide the allocation and revenue distribution of unescalated revenues (with no presumptions of State/Federal grants). Staff, and its consultants, considered all feedback to date and developed the draft Transportation Expenditure Plan resulting in the following distributions and premises.

1. 55% for Local Road Repairs, Safety and Improvements (Jurisdictions determined) a. Distribute funds by formula to the jurisdictions based on share of population b. Build in flexibility through local control recognizing that each local agency (and its public) may differ in their transportation funding needs and priorities. c. Assure the public has a voice when each local agency determines its priorities. d. Uses may include (as determined by the local agency): Road and bridge repairs, maintenance, rehabilitation, safety, and congestion relief; pedestrian, bicycle, sidewalks, crosswalks, multiuse path, Safe Routes to School, and community enhancements, Signal improvements/synchronization, local transit or trolley services, and other local transportation priorities.

2. 40% for Regional Corridor Improvements (SLOCOG determined) a. Distribute funds by formula guaranteeing regional improvements based on share of population.
b. Assure equitable, guaranteed, distribution by using 4 subregions: North County, North Coast, Central County, and South County
c. Build in flexibility to recognize each subregion’s priority needs may differ from another. d. Assure the public has a voice when SLOCOG determines priorities. e. Uses can include: Improvements to highways, arterials, interchanges, bridges, van/carpool programs, regional trail corridors, safety/congestion relief, and regional transit.

3. 4% for Senior/Disabled/Veterans’ mobility improvements (SLOCOG determined) a. Use a public process in conjunction with current procedures to address and improve mobility of those that are mobility challenged.
b. Assure the public has a voice when SLOCOG determines its priorities.

4. 1% for Administration of the Measure Funds
a. Tasks include: Developing Implementation Plan, Project Prioritization, Annual Audits, Outreach and Communication, Revenue distributions to jurisdictions, Support for Measurerelated Committees and technical assistance.

To distribute funds, staff reviewed various data metrics (including Population, Sales Taxes collected, Road miles, and Employment by city and by subregion) and various combinations with the City Managers in October 2025 and received concurrence for the previously described funding distribution methodology.

Ultimately, the goal is an fair, equitable, and understandable (to the public) distribution of funds.