Agenda packet — San Luis Obispo City Council, February 3, 2026 (part 1 of 2)

City Council
AGENDA

Tuesday, February 3, 2026, 5:30 p.m.

Council Chambers, 990 Palm Street, San Luis Obispo
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. *All correspondence will be archived and distributed to councilmembers, however, submissions received after the deadline may not be processed until the following day.

Public Comment during the meeting:

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

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

Pages

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

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

3. PRESENTATIONS

3.a BLACK HISTORY MONTH
Mayor Stewart will present a proclamation declaring February 2026 as Black History Month.

3.b INTRODUCTIONS - POLICE DEPARTMENT AND PUBLIC WORKS &

UTILITIES DEPARTMENT
Police Chief Rick Scott will introduce Aaron Schafer, Deputy Police Chief.

Public Works & Utilities Director Aaron Floyd will introduce Madeline Kascinta, Assistant Public Works Director and Shawna Scott, Assistant Utilities Director.

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

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

5. CONSENT AGENDA
Matters appearing on the Consent Calendar are expected to be noncontroversial 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 5h.

5.a WAIVE READING IN FULL OF ALL RESOLUTIONS AND

ORDINANCES
Recommendation:

Waive reading of all resolutions and ordinances as appropriate.

5.b MINUTES REVIEW - JANUARY 20, 2026 COUNCIL MINUTES 9 Recommendation:

Approve the minutes of the City Council meeting held on January 20, 2026.

5.c AMEND THE COUNCIL POLICIES AND PROCEDURES MANUAL

AND THE ADVISORY BODY HANDBOOK TO ADJUST THE ANNUAL

ADVISORY BODY RECRUITMENT PROCESS
15 Recommendation:

Adopt a draft Resolution entitled, “A Resolution of the City Council of the City of San Luis Obispo, California, amending its Council Policies and Procedures Manual,” to account for the change in time of annual recruitment for City Advisory Bodies; and

1. Adopt a draft Resolution entitled “A Resolution of the City Council of the City of San Luis Obispo, California, amending the Advisory Body Handbook to adjust the annual recruitment, oaths of office, and election of chair and vice chair deadlines”; and

2. Extend the Advisory Body Members’ terms and the elected Chair/Vice Chair terms that expire on March 31, 2026, to expire on June 30, 2026.

3. 5.d AMENDMENT NO. 1 TO AMENDED AND RESTATED EXCLUSIVE

NEGOTIATING AGREEMENT WITH SMART SHARE HOUSING

SOLUTIONS
23 Recommendation:

Approve the draft Amendment No. 1 to Amended and Restated Exclusive Negotiating Agreement with Smart Share Housing Solutions, in a final form satisfactory to the City Attorney.

5.e ADVISORY BODY APPOINTMENT FOR AN UNSCHEDULED

VACANCY ON THE HUMAN RELATIONS COMMISSION
31 Recommendation:

Confirm the appointment of Jennifer Chassman Browne to the Human Relations Commission (HRC) for the remainder of the vacated term expiring June 30, 2026, and a consecutive 4-year term expiring June 30, 2030.

5.f AUTHORIZATION TO ACCEPT TECH CLEAN CALIFORNIA

QUICKSTART GRANT TO SUPPORT LOCAL ENERGY EFFICIENCY

RETROFITS IN MOBILE AND MANUFACTURED HOMES
35 Recommendation:

1. Accept the TECH Clean California QuickStart Award; and Authorize the City Manager, or their designee, to execute the draft grant agreement and related documents and approve the budget changes necessary to appropriate the grant amount upon acceptance of the grant award; and

2. Authorize the City Manager, or their designee, to execute the draft Community Partnership Agreements Between the City of San Luis Obispo and: Community Action Partnership of San Luis Obispo, Diversity Coalition of San Luis Obispo County, and San Luis Obispo Climate Coalition.

3. 5.g REVIEW OF A REQUEST TO REMOVE ONE TREE ASSOCIATED WITH THE SLO REP THEATRE PROJECT LOCATED AT 614

MONTEREY STREET
77 Recommendation:

Adopt a Draft Resolution entitled, “Resolution of the City Council of the City of San Luis Obispo, California approving the removal of one (1) Coast Live Oak Tree at 614 Monterey Street and subsequent replanting of one (1) tree on-site and four (4) trees off-site with an Addendum to the Certified Environmental Impact Report.”

5.h APPROVE A DRAFT LETTER TO LEGISLATORS REGARDING

DIABLO CANYON POWER PLANT
133
Recommendation:

Approve sending a letter to members of the California State Legislature on behalf of the City of San Luis Obispo titled “Request for State Legislation Supporting Coastal Land Conservation and Restoration of Tax Revenue for Impacted School Districts and Local Government Service Providers Related to Diablo Canyon Power Plant”.

6. PUBLIC HEARING AND BUSINESS ITEMS

6.a INTRODUCTION OF AN ORDINANCE TO AMEND MUNICIPAL CODE CHAPTER 2.40.040 (CAMPAIGN CONTRIBUTION LIMITATIONS) (30

MINUTES)
147
Recommendation:

Consider introduction of a draft Ordinance entitled “An Ordinance of the City Council of the City of San Luis Obispo, California, amending Chapter 2.40.040 of the Municipal Code related to Campaign Contribution Limitations” increasing the per person contribution limit from $250 to $500.

7. STUDY SESSION

7.a LAGUNA LAKE GOLF COURSE PROGRAM OPERATIONS AND
MAINTENANCE OVERVIEW STUDY SESSION (90 MINUTES)
155
Recommendation:

Receive presentation on the Laguna Lake Golf Course
Operations and Maintenance.

1. Provide feedback and direction on program and revenue expectations. Direct staff on any future program and facility recommendations.

2. Provide staff direction on continuing the two significant project needs related to the Pro Shop renovation and the
pedestrian/cart bridge replacement project timelines.

3. 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 17, 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.
1 Council Minutes
January 20, 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 (4:30 PM - 5:30 PM)

1.a CONFERENCE WITH LEGAL COUNCIL - EXISTING LITIGATION ACTION: City Attorney Christine Dietrick indicated that the Council met in closed Session regarding one matter of pending litigation regarding Randall Arseneau as indicated on the agenda. The City Council provided no reportable action.

1.b ADJOURNMENT
Closed Session adjourned at 5:25 PM.

2. CALL TO ORDER
A Regular Meeting of the San Luis Obispo City Council was called to order on January 20, 2026 at 5:35 p.m. in the Council Chambers, 990 Palm Street, San Luis Obispo, by Mayor Stewart.

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

4. PRESENTATIONS

4.a CITYWIDE SINGLE VOTE TRANSITION - COMMUNICATIONS AND

OUTREACH PLAN
Deputy City Manager Greg Hermann, Communications Manager Whitney Szentesi and Policy and Program Manager Natalie Harnett presented the

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2 Communication Plan for Citywide Single Vote and responded to Council questions.

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

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

Shawn Harris
--End of Public Comment--

6. CONSENT AGENDA
Public Comment:

None
--End of Public Comment--
Motion By Council Member Marx
Second By Council Member Shoresman
To approve Consent Calendar Items 6a to 6d.

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

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

6.b MINUTES REVIEW - JANUARY 13, 2026 COUNCIL MINUTES
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

1. Adopt Resolution No. 11623 (2026 Series) 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

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3 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.

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

IMPLEMENTING CITYWIDE SINGLE VOTE FOR CITY COUNCIL

ELECTIONS
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
Motion By Mayor Stewart
Second By Council Member Shoresman

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. To appoint an ad-hoc committee of Vice Mayor Francis and Council Member Boswell to review the current legislative platform and suggest changes for the 2026 legislative session.

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

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

SAN LUIS OBISPO REQUESTING STATE LEGISLATION RELATED TO

DIABLO CANYON POWER PLANT
City Manager Whitney McDonald provided an in-depth staff report and responded to Council questions.

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4 Public Comments:

Eric Daniels
Ben Lippert
Rachel Whalen
Dawn Ortiz-Legg
---End of Public Comment---
Motion By Vice Mayor Francis
Second By Council Member Marx
To appoint an ad hoc committee of Council Member Marx and Council Member Shoresman to provide direction to staff regarding preparation of a draft letter based on alignment with guiding principles, and the City's Legislative Platform to return to Council for approval at the February 3, 2026 City Council meeting.

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

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

ACTION: Council received a presentation regarding the potential Countywide Self-Help Sales Tax Measure and Draft Transportation Expenditure Plan and and provided comments on the measure, including its ability it will provide the community to leverage local money for additional state and federal money. Council provided the following comments:
 Concerns around using population as a primary determinant for how the money will be divided, understanding, however, the need for simplicity and the ability of voters to advocate to their direct representatives about the use of the funds, if approved.  Curious how other Counties have balanced the different ways to create a formula to try to create fairness and simplicity at the same time.
 Questions were raised regarding Cal Poly’s on-campus population being included in the unincorporated share of direct funding

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5 because access to and from the campus is through the City, so transportation impacts are borne by the City.
 Concerns were expressed regarding the map used to divide the regional share of funds.
 Concerns were raised regarding the statement that Morro Bay and Los Osos being more like the North Coast than San Luis Obispo. o There are only two road outs of Los Osos, one through Morro Bay and the other through San Luis Obispo.
o We share a School District with Los Osos and Morro Bay. o We share a seat on the Central Coast Community Energy Board with Morro Bay.
o In terms of homeless services providers CAPSLO supports both San Luis Obispo and Morro Bay.
 County Board of Supervisor District 2 (20%), District 5 (15%) and District 3 (65%) make up the City of San Luis Obispo. Other cities are entirely contained in one district. This needs to be considered for regional projects.
 An origin and destination study should be performed when discussing regional projects.
 Make the ballot measure as clear as possible and show people what types of projects they could get for their money.

8. LIAISON REPORTS AND COMMUNICATIONS
Mayor Stewart
 Spoke at the Martin Luther King event in Paso Robles
Vice Mayor Francis
 Attended the SCLC meeting on January 15th
 Attended the CAPSLO meeting on January 15th
 Attended the Annual Chamber Dinner on January 17th.

Council Member Boswell
 Attended the Active Transportation Committee Meeting on January 15th

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6 Council Member Marx
 Attended IWMA meeting on January 14th.
 Attended the Annual Chamber Dinner on January 17th.

Council Member Shoresman
 Attended the Active Transportation Committee meeting on January 15th  Conducted interviews for Human Relations Commission last week  Participated in an interview with KPMG Consultant for the Homeless Services Oversight Committee
 Attended the Annual Chamber Dinner on January 17th

9. ADJOURNMENT
The meeting was adjourned at 9:36 p.m. The next Regular City Council Meeting is scheduled for February 3, 2026 at 5:30 p.m. in the Council Chambers at City Hall, 990 Palm Street, San Luis Obispo.

APPROVED BY COUNCIL: XX/XX/202X

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Item 5c
Department: Administration
Cost Center: 1021
For Agenda of: 2/3/2026
Placement: Consent
Estimated Time: N/A
FROM: Greg Hermann, Deputy City Manager
Prepared By: Teresa Purrington, City Clerk
Sara Armas, Deputy City Clerk
SUBJECT: AMEND THE COUNCIL POLICIES AND PROCEDURES MANUAL AND

THE ADVISORY BODY HANDBOOK TO ADJUST THE ANNUAL

ADVISORY BODY RECRUITMENT PROCESS

RECOMMENDATION

1. Adopt a draft Resolution entitled, “A Resolution of the City Council of the City of San Luis Obispo, California, amending its Council Policies and Procedures Manual,” to account for the change in time of annual recruitment for City Advisory Bodies; and

2. Adopt a draft Resolution entitled “A Resolution of the City Council of the City of San Luis Obispo, California, amending the Advisory Body Handbook to adjust the annual recruitment, oaths of office, and election of chair and vice chair deadlines”; and

3. Extend the Advisory Body Members’ terms and the elected Chair/Vice Chair terms that expire on March 31, 2026, to expire on June 30, 2026.

POLICY CONTEXT
City Council has adopted a manual entitled “Council Policies and Procedures” to define and ensure the proper conduct of the City’s business by the City Council. The Council Policies and Procedures Manual (“CP&P”) is periodically updated to ensure clarity of City processes, consistency with State law, and conformity with the City Charter and Ordinances. Section 6.7.1 of the CP&P establishes the process for annual recruitment of the City’s Advisory Body Members whose terms expire.

The Advisory Body Handbook (“Handbook”) also outlines recruitment procedures, membership requirements, and term limits for City advisory bodies. Section 1.G specifies the dates of when annual appointments and chairperson/vice chairperson elections must be made.

DISCUSSION
On April 4, 2025, the City Council held a Special Meeting (Retreat) that included a discussion of the onboarding process for new Council Members. The purpose of the

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Item 5c
discussion was to review the Council Member onboarding experience, identify what works well, and consider improvements. One topic raised was the Advisory Body recruitment process. Conducting interviews within the first three months of a Council Member’s term was noted as challenging, given the number of meetings, briefings, and trainings required for new Council Members to get up to speed. Additionally, holding the recruitment during the holiday season was considered less than ideal due to competing demands on the community’s time to complete an application. Council directed staff to develop a revised process that begins in February and concludes with Council appointments in June, along with amendments to the CP&P and Handbook to implement this change for the 2026 annual advisory body recruitment cycle.

Council Policies and Procedures Manual
The draft Resolution (Attachment A) amends Section 6.7.3 of the CP&P “PROCESS” as follows:

6.7.3 PROCESS

6.7.3.1 In December February of each year, the City Clerk shall advise the City Council of the terms that are due to expire on each advisory body. The City Clerk shall also notify each advisory member whose term is due to expire. Each of these members shall be given the opportunity to apply for reappointment unless that member has already served two consecutive, full terms on that advisory body.

The Resolution (Attachment A) also extends the terms of all current Advisory Body Members from March 31 to the June 30.

Advisory Body Handbook
The draft Resolution (Attachment B) amends Section 1.G “Term of Office – Advisory Body Members” and 1.H “Officer Election and Officer Terms” as follows:

No appointee shall serve on the same advisory body for more than two consecutive full terms but may subsequently serve on another advisory body unless noted otherwise. Exceptions to the consecutive terms rule include the Construction

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Item 5c
Board of Appeals, Citizen Transportation Committee, Housing Authority Board, Jack House Committee, and Zone 9. The Council may also determine that a subsequent consecutive term may be held if no additional qualified candidates are available.

A mid-term appointment to a vacant seat on an advisory body shall not preclude the appointee from serving two additional consecutive full terms, provided that the initial, partial term served is less than half of a full term. Appointments made with less than one-year left in the term may be considered for re-appointment without a new application and interview, at the discretion of the City Council sub-committee members assigned to the advisory body.

H. Officer Election and Officer Terms

1. Election: When possible, in April July, each advisory body, at its regular meeting, shall elect a chairperson and a vice chairperson.

2. Terms of Office: The term of office of a chairperson or vice chairperson shall be one year and no person shall serve as chairperson or vice chairperson for more than two consecutive terms, except if noted elsewhere under specific boards and commissions.

Completion of a partial term of office as chairperson or vice chairperson shall not preclude an advisory body member from serving two additional consecutive full terms, provided that the partial term served is less than one year.

An additional clerical amendment to remove the Jack House Committee from the list of consecutive terms rule exceptions has also been included.

Public Engagement
Current advisory body members were informed in early January of the proposed amendment to the annual advisory body recruitment process and extension of expiring terms. The public will also have an opportunity to provide public comment before or at the City Council meeting on February 3, 2026.

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

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

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Item 5c
Fiscal Analysis:

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

Total $N/A $ $ $
There is no fiscal impact associated with this action.

ALTERNATIVES
Council could decide not to amend the Council Policies and Procedures to change the annual advisory body recruitment process. Staff would need to immediately begin recruitment for the terms expiring on March 31, 2026.

ATTACHMENTS
A - Draft Resolution amending the Council Policies and Procedures Manual B - Draft Resolution amending the Advisory Body Handbook

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R ______
RESOLUTION NO. _____ (2026 SERIES)

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

OBISPO, CALIFORNIA, AMENDING THE COUNCIL POLICIES AND

PROCEDURES MANUAL TO ADJUST THE ANNUAL ADVISORY BODY

RECRUITMENT PROCESS
WHEREAS, the City Council has adopted a certain manual entitled “Council Policies and Procedures” to define and ensure the proper conduct of the City’s business by the City Council and in compliance with State law and the City’s Charter and Ordinances; and
WHEREAS, the Council periodically revises its Council Policies and Procedures Manual to ensure clarity, consistency with State law, and conformity with the City Charter and Ordinances; and
WHEREAS, Section 6.7.3 of the Council Policies and Procedures Manual establishes the process for annual recruitment of the City’s advisory body members whose terms expire.

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

SECTION 1. Section 6.7.3 of Council Policies and Procedures Manual “PROCESS” shall be amended to read as follows:

6.7.3.1 PROCESS

6.7.3.2 In February of each year, the City Clerk shall advise the City Council of the terms that are due to expire on each advisory body. The City Clerk shall also notify each advisory member whose term is due to expire. Each of these members shall be given the opportunity to apply for reappointment unless that member has already served two consecutive, full terms on that advisory body.

SECTION 2. All advisory body members whose terms expire on March 31 will have their terms extended to expire on June 30, to align with the adjusted annual recruitment time period.

SECTION 3. Resolution Number 11520 (2024 Series) is hereby amended and superseded to the extent inconsistent herewith.

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Resolution No. _____ (2026 Series) Page 2
R ______
Upon motion of Council Member ___________, seconded by Council Member ___________, and on the following roll call vote:

AYES:

NOES:

ABSENT:

The foregoing resolution was adopted this _____ day of _______________ 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, on ______________________. ___________________________
Teresa Purrington
City Clerk

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R ______
RESOLUTION NO. (2026 SERIES)

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

OBISPO, CALIFORNIA, AMENDING THE ADVISORY BODY

HANDBOOK TO ADJUST THE ANNUAL RECRUITMENT AND

ELECTION OF CHAIR AND VICE CHAIR DEADLINES
WHEREAS, in accordance with the Charter of the City of San Luis Obispo, the San Luis Obispo Municipal Code, and its own resolutions, the City Council of the City of San Luis Obispo appoints individuals to serve on its advisory bodies; and WHEREAS, Section 1.G and 1.H of the Advisory Body Handbook references the processes for annual recruitment of the City’s advisory body members and annual election of advisory body chairs and vice chairs;
WHEREAS, at its Regular Meeting of February 3, 2026, the City Council reviewed proposed changes to the annual recruitment process and annual election of advisory body chairs and vice chairs.

NOW, THEREFORE, BE IT RESOLVED by the Council of the City of San Luis Obispo that Section G and H.1 of the Advisory Body Handbook shall be amended to read as follows:

G. Term of Office – Advisory Body Members
Unless otherwise noted in the Advisory Body Bylaws, the full term of office will be four years unless dictated otherwise by an alternate authority as reflected in the specific body bylaws. The length of a term is dictated by the principle that no more than two terms on any committee will expire each year. This rule ensures continuity for all committees. Annual appointments commence on July 1st for all bodies except the ASI representative for the Mass Transportation Committee (see specific body bylaws for details). Appointments to unexpired terms begin the day following the appointment confirmation date by City Council action. No appointee shall serve on the same advisory body for more than two consecutive full terms but may subsequently serve on another advisory body unless noted otherwise. Exceptions to the consecutive terms rule include the Construction Board of Appeals, Citizen Transportation Committee, Housing Authority Board, and Zone 9. The Council may also determine that a subsequent consecutive term may be held if no additional qualified candidates are available.

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Resolution No. _____ (2026 Series) Page 2
R ______
H. Officer Election and Officer Terms

1. Election: When possible, in July, each advisory body, at its regular meeting, shall elect a chairperson and a vice chairperson.

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

AYES:

NOES:

ABSENT:

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Item 5d
Department: Administration
Cost Center: 1005
For Agenda of: 2/3/2026
Placement: Consent
Estimated Time: N/A
FROM: Greg Hermann, Deputy City Manager
Prepared By: Robert Hill, Sustainability & Natural Resources Official SUBJECT: AMENDMENT NO. 1 TO AMENDED AND RESTATED EXCLUSIVE

NEGOTIATING AGREEMENT WITH SMART SHARE HOUSING

SOLUTIONS

RECOMMENDATION
Approve the draft Amendment No. 1 to Amended and Restated Exclusive Negotiating Agreement with Smart Share Housing Solutions, in a final form satisfactory to the City Attorney (Attachment A).

POLICY CONTEXT
The City’s Financial Management Manual (Section 475-C) allows exclusive negotiations for long-term leases of City property, as well as provisions for leases to non-profit organizations, where there is a clear link between the proposal and accomplishment of significant City goals, plans or policies and where the proposal has clear and measurable community benefits.

Smart Share Housing Solution’s (“Smart Share”) Waterman Village project (the “Project”) entails rehabilitation and adaptive re-use of the City-owned Rosa Butron Adobe together with installation of a “tiny home” village that will provide 20 affordable housing units. These activities are in the public interest by implementing the City's historic preservation goals, the Conservation and Open Space Element of the General Plan that provides policy regarding adaptive re-use of the City’s historic structures, the Downtown Concept Plan, and the Housing Element of the General Plan.

Accordingly, the Project meets the basic policy framework and parameters for an Exclusive Negotiating Agreement (ENA) in accordance with the Financial Management Manual and its implementation would advance General Plan goals and policies.

DISCUSSION
Background – Property History
The City of San Luis Obispo has owned the Rosa Butron Adobe located at 466 Dana

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Item 5d
Street since 1989. The City Council adopted a Resolution of Acceptance at that time and agreed to acquire the property as a life estate gift from Ms. Mary Gail Black. The Rosa Butron Adobe is listed as a historic residence on the City’s Master List of Historical Resources and was constructed circa. 1845.

Project Status and Current Request
Smart Share has been diligently working to complete required conditions necessary to enter into lease agreement negotiations with the City and move towards implementation of the Project. At this time, the project is now fully entitled, with City Council having approved the project and environmental determination in 2025. Smart Share has expended over $600,000 on planning, architecture, and required studies necessary to complete the environmental review, as well as preparing construction plans and specifications suitable for a building permit.

At this time, Smart Share estimates that they have approximately 40% of the funds necessary to complete the Project. The ENA states that Smart Share shall have 50% of the funds prior to entering into lease agreement negotiations with the City (and shall have 100% of funds plus contingency prior to beginning construction). One impediment to securing additional funding is that most housing-oriented funding sources require that applicants demonstrate “project readiness” and/or evidence of site control.

Due to the duration of the extensive planning and entitlement phase (the Project was reviewed by the Cultural Heritage Committee, the Architectural Review Commission, the Planning Commission, and by the City Council on appeal), as well as project delays associated with an active litigation challenge to the Project, an extension of the ENA for an additional one-year term has been requested. The term of the current ENA lapses on February 16, 2026. Staff also recommend that the ENA be amended to allow lease negotiations to begin with evidence of 40% of necessary funding because Smart Share is more likely to be competitive for implementation funding if they can demonstrate project readiness and site control. The draft Amendment No. 1 to Amended and Restated Exclusive Negotiating Agreement with Smart Share Housing Solutions provided in Attachment A would accomplish both recommended changes:

1. Extend the term by one year to end on February 16, 2027; and

2. Revise paragraph 5(b)(ii) to state that "… prior to commencement of lease negotiations, demonstrate to the City Finance Director's reasonable satisfaction that Smart Share has available at least 40% of all the funds necessary to design and construct the project…"
Smart Share has submitted a letter requesting the ENA extension and providing a Project update, which is included as Attachment B.

Previous Council and Advisory Body Actions
On September 21, 2021, the City Council approved an Exclusive Negotiating Agreement for Rosa Butron de Canet Adobe with both Smart Share Housing Solutions and the Peace

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Item 5d
Project following prior direction to issue a Request for Information seeking community partners in March 2020.

On February 6, 2024, the City Council approved an Amended and Restated Exclusive Negotiating Agreement with Smart Share Housing Solutions, only, after the Peace Project withdrew from the Project.

On October 24, 2024, the Cultural Heritage Committee reviewed the Project as to consistency with the City’s Historic Preservation Ordinance and with the Cultural Resources and Tribal Resources sections of the Initial Study conducted for environmental review pursuant to the California Environmental Quality Act (CEQA), and recommended the Project to the Planning Commission; and
On November 18, 2024, the Architectural Review Commission reviewed the Project as to consistency with the City’s Community Design Guidelines and applicable City standards and recommended the Project to the Planning Commission; and On December 11, 2024, the Planning Commission reviewed the Project as to affordable housing density bonus law and other planning and zoning standards, rehabilitation of the Master List Rosa Butron Adobe, tree removals and compensatory replacement planting, the Initial Study / Mitigated Negative Declaration, and General Plan Conformity. The Planning Commission voted to adopt the Initial Study / Mitigated Negative Declaration pursuant to CEQA and approve the Project; and
On March 3, 2025, the City Council reviewed an appeal of the Planning Commission’s decision to approve the Project and voted to deny the appeal.

Public Engagement
Significant public engagement opportunities have occurred as Smart Share Housing Solutions’ Waterman Village project has moved through the exclusive negotiating agreement, planning entitlement, environmental review, and project approval phases.

The recommended action contained in this Council Agenda Report is administrative, however, any member of the public may provide comments or testimony either in person or in writing prior to the City Council meeting.

CONCURRENCE
The Community Development Department is supportive of this action as the Waterman Village represents a 100% low- and very-low-income affordable housing project and also advances other General Plan and historic preservation goals.

ENVIRONMENTAL REVIEW
On December 11, 2024, the Planning Commission reviewed and approved the adoption of the Initial Study / Mitigated Negative Declaration of Environmental Impact prepared pursuant to the California Environmental Quality Act (CEQA).

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Item 5d

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

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

Total N/A N/A
The recommended action does not have a new fiscal impact. Modest staff time will be required to oversee the terms of the Exclusive Negotiating Agreement and attend to any subsequent steps that arise out of that process.

ALTERNATIVES

1. Council could request additional information or request that staff address any questions that it may have prior to acting.

2. Council could decide to approve the recommendation with changes. This could entail electing to only approve a one-year extension of the term and to not change the requirement for 50% of funds necessary to complete the Project to be obtained before negotiating the long-term lease.

3. Council could deny the recommendation. Should this alternative be selected, the ENA will expire on February 16, 2026, and in the absence of any other Council action or direction, no long-term lease will be negotiated with Smart Share for the site, and the Project will not be able to proceed to construction. It should be noted that the Council has no obligation to move forward with subsequent steps in the future should circumstances change.

ATTACHMENTS
A - Draft Amendment No. 1 to Amended and Restated Exclusive Negotiating Agreement.

B - Letter Request from Smart Share Housing Solution, January 6, 2026.

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AMENDMENT NO. 1

TO AMENDED AND RESTRATED EXCLUSIVE NEGOTIATING AGREEMENT THIS AMENDMENT NO. 1 TO AMENDED AND RESTATED EXCLUSIVE NEGOTIATING AGREEMENT is made and entered in the City of San Luis Obispo on ___________________by and between the CITY OF SAN LUIS OBISPO, a municipal corporation, herein after referred to as City, and Smart Share Housing Solutions, a non-profit corporation, hereinafter referred to as Smart Share.

RECITALS
WHEREAS, on September 21, 2021, the City Council approved an Exclusive Negotiating Agreement (“ENA”) for Rosa Butron de Canet Adobe (the “Adobe”) with both Smart Share Housing Solutions and the Peace Project following prior direction to issue a Request for Information seeking community partners to work the City towards rehabilitation and adaptive reuse of the Adobe in March 2020; and
WHEREAS, on February 6, 2024, the City Council approved an Amended and Restated Exclusive Negotiating Agreement with Smart Share Housing Solutions, only, after the Peace Project withdrew from the project; and
WHEREAS, Smart Share has responsibly and diligently completed tasks pursuant to the approved Amended ENA during its two-year term, including planning, architecture, site design, environmental review, and project entitlements, as well as significant fundraising efforts; and WHEREAS, on March 3, 2025, the City Council reviewed and voted to deny an appeal of the Planning Commission’s decision to approve the project, including planning entitlements and the Initial Study / Mitigated Negative Declaration pursuant to the California Environmental Quality Act; and
WHEREAS, on January 6, 2026, Smart Share issued a letter to the City Council requesting an additional one-year extension of the term of the Amended ENA citing the long duration of the planning and entitlement process associated with the project, while also noting that approximately 40% of necessary funds to complete the project have been secured and that Smart Share desires to move forward with the project as soon as possible.

NOW THEREFORE, in consideration of their mutual promises, obligations and covenants hereinafter contained, the parties hereto agree as follows:

1. The Amended ENA is hereby further amended to extend the term until February 16, 2027 to allow Smart Share additional time to complete the remaining tasks set forth in the Amended ENA and paragraph 5(b)(ii) shall be further amended to state that “… prior to commencement of lease negotiations, demonstrate to the City Finance Director’s reasonable satisfaction that Smart Share has available at least 40% of all the funds necessary to design and construct the project…”

2. All other terms and conditions of the Amended ENA shall remain in full force and effect.

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IN WITNESS WHEREOF, the parties hereto have caused this instrument to be executed the day and year first written above.

CITY OF SAN LUIS OBISPO
By: ____________________________________
Mayor
By:_____________________________________
City Attorney
By:_____________________________________
City Clerk
SMART SHARE HOUSING SOLUTIONS, INC.

By: _____________________________________
President

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Creating housing solutions by connecting people
and homes
Board of Directors:

Joanna Balsamo-Lilien
(Chair)
Lisa Gonzalez, EA, MBA
(Financial Officer)
Celeste Goyer (Secretary)
Marianne Kennedy
(Past Chair)
Grace Crittenden, MD
Erik Berg-Johansen
Ashley Gastineaux
Monique Grajeda
Elaine Simer
Advisory Council:

Marcy Adams
Sky Bergman
Tina Metzger
Jim Patterson
Pavlo Rudakevych
Scott Smith-Cooke
Tim Waag
Janice Fong Wolf
Staff:

Anne Wyatt
Executive Director
Vicki van den Eikhof
Deputy Director
Mavis Wong
Client Services Manager
Adam Clark
Development Director
Smart Share Housing Solutions, Inc., with
3 programs–HomeShareSLO, ADU-SLO &
Co-Living Collaborative– is a tax-exempt,
501(c)(3) nonprofit public benefit
corporation. Federal tax I.D. is
82-3151265. Your donation is
tax-deductible.

P.O. Box 15034, San Luis Obispo, CA 93406
www.smartsharehousingsolutions.org
805-215-5474
January 6, 2026
Dear Mayor Stewart and Councilmembers via Mr. Hill:

On behalf of Smart Share’s Waterman Village development team, I write to respectfully request a one year extension of the current exclusive negotiating agreement (ENA) for Smart Share’s project to develop the Waterman Village– 20 affordable homes, rehab of the historic Rosa Butron de Canet Adobe and creation of a
neighborhood park on City property at 466 Dana St.

As you well know, development is challenging in San Luis Obispo, at best. Beyond that, the level of constraint associated with this site pushes general constraints up a few notches, not by chance this beautiful central publicly owned site empty now for over 35 years.

Finally, the Waterman Village’s innovative small homes and adobe retrofit don’t easily fit any pattern book and have taken extra time to work through rules written for much larger homes and structures built out of things other than old mud.

Our team of skilled design and development professionals, volunteers, and community member donors now has a thoughtfully crafted, beautifully designed, safe, seismically retrofitted, fire resistant, flood resistant, low energy consumptive community serving project in for building permit. Upwards of $600,000 has already been expended by our team. The Waterman Village has broad community support, and speaking to the urgency of need, our office receives calls weekly from people hoping to move into the Village soon.

As we have been for nearly 6 years now, we’re tackling issues one by one and finding creative workable solutions.

We appreciate working with the City and the community and look forward to continuing to lease negotiations and soon together constructing an innovative hub that we can all be proud to be a part of.

As always, please do not hesitate to reach out with any questions or concerns.

Warmly,
Anne Wyatt, Executive Director

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Item 5e
Department: Administration
Cost Center: 1021
For Agenda of: 2/3/2026
Placement: Consent
Estimated Time: N/A
FROM: Greg Hermann, Deputy City Manager
Prepared By: Sara Armas, Deputy City Clerk
SUBJECT: ADVISORY BODY APPOINTMENT FOR AN UNSCHEDULED VACANCY

ON THE HUMAN RELATIONS COMMISSION

RECOMMENDATION
Confirm the appointment of Jennifer Chassman Browne to the Human Relations Commission (HRC) for the remainder of the vacated term expiring June 30, 2026, and a consecutive 4-year term expiring June 30, 2030.

POLICY CONTEXT
The Advisory Body Handbook outlines the recruitment procedures, membership requirements, and term limits for City advisory bodies. The Handbook also contains the bylaws for each City advisory body, some of which include additional membership requirements. The Human Relations Commission is a seven-member advisory body consisting of “individuals with experience or a demonstrated interest in community social issues” who “advise and make recommendations… which promote and advance inclusion, mutual understanding, respect, and equitable treatment to… the SLO City Community”.

The City Council Policies and Procedures Manual describes the “Appointment Procedure” and “Process” for Advisory Body appointments. Recruitment and appointment recommendations were performed in conformance with all recruitment procedures, processes, and bylaws founds in these resources.

California Government Code Section 54972, Local Appointments List (Maddy Act) requires that on or before December 31st of each year, each legislative body shall prepare an appointment lists for their boards, commissions, and committees whose members serve at the pleasure of the legislative body. This obligation was met and is on-going.

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Item 5e

DISCUSSION
The City Clerk’s Office received notice of an unscheduled vacancy on the HRC at the beginning of August 2025. The annual advisory body recruitment period in early 2025 had identified two additional candidates that potentially could have filled this vacancy; one of the candidates had been appointed to an earlier unscheduled vacancy on the HRC, while the other had expressed continual interest in being considered. The Council Liaison Subcommittee, consisting of Mayor Erica Stewart and Council Member Michelle Shoresman, directed the Clerk’s Office to re-open recruitment to seek a pool of additional potential applicants.

After a month-long recruitment, three applications were received. The previous qualified applicant withdrew from consideration due to personal obligations, and another withdrew as they were no longer a City resident. Upon completion of interviews of the remaining two applicants, the Subcommittee was not able to find an applicant to fill the position.

A new recruitment was initiated to seek a new pool of potential candidates. Three applications were received in the month the posting was reactivated. Upon completion of applicant interviews, the Council Liaison Subcommittee recommend Jennifer Chassman Browne fill the unscheduled vacancy through the current term’s expiration and an additional 4-year full term thereafter.

Public Engagement
Following Maddy Act guidelines, notices were posted in the City Information kiosk outside City Hall and on the Advisory Body Vacancies page of the City’s website alerting the public that the City was accepting applications for the vacancy on the HRC.

The public will have the opportunity to provide public comment before or at the City Council meeting on February 3, 2026.

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Item 5e

FISCAL IMPACT
Budgeted: No Budget Year: 2025-26
Funding Identified: No
Fiscal Analysis: N/A
Funding
Sources
Total Budget
Available
Current
Funding
Request
Remaining
Balance
Annual
Ongoing
Cost
General Fund $N/A $ $ $
State
Federal
Fees
Other:

Total $N/A $ $ $
There is no fiscal impact associated with this action.

ALTERNATIVES
Council could recommend changes to the recommended appointment or direct staff to re-open recruitment for additional candidates.

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City of San Luis Obispo, Council Memorandum
City of San Luis Obispo
Council Agenda Correspondence
DATE: February 3, 2026
TO: Mayor and Council
FROM: Greg Hermann, Deputy City Manager
Prepared By: Chris Read, Sustainability Manager
VIA: Whitney McDonald, City Manager
SUBJECT: ITEM 5f - AUTHORIZATION TO ACCEPT TECH CLEAN CALIFORNIA

QUICKSTART GRANT TO SUPPORT LOCAL ENERGY EFFICIENCY

RETROFITS IN MOBILE AND MANUFACTURED HOMES
Staff received the following question regarding the TECH QuickStart grant with staff’s response shown in italics:
1) Will all the beneficiaries of the TECH Clean California QuickStart Grant, assisted by the partner agencies (CAPSLO, Diversity Coalition, and Climate Coalition) reside in the City of SLO? I do not see this outlined anywhere specifically in the agreements or program requirements/eligibility criteria.

As noted in the Council Agenda Report, the grant funds are intended to be passed through to CAPSLO for direct energy efficiency retrofits with additional funds passed through to the Diversity Coalition and the SLO Climate Coalition for supporting services.

CAPSLO, the Diversity Coalition, and the SLO Climate Coalition intend to reach out to local mobile and manufactured home occupants to generate leads for energy retrofits as soon as the agreements are completed. The City fully expects that all funds will be expended within the City of San Luis Obispo. However, given the “Quick Start” nature of the grant and the associated short timeframe (all funds must be expended by March of 2027), the grant agreement gives CAPSLO flexibility to complete projects in the region should local projects not materialize which would happen in consultation with the City.

Should CAPSLO complete a regional project, City staff would not be directly involved. However, in this instance, the City would still benefit from project-based learnings associated with the installations.

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Item 5f
Department: Administration
Cost Center: 1005
For Agenda of: 2/3/2026
Placement: Consent
Estimated Time: N/A
FROM: Greg Hermann, Deputy City Manager
Prepared By: Gray Gautereaux, Green Buildings Analyst
Chris Read, Sustainability Manager
SUBJECT: AUTHORIZATION TO ACCEPT TECH CLEAN CALIFORNIA

QUICKSTART GRANT TO SUPPORT LOCAL ENERGY EFFICIENCY

RETROFITS IN MOBILE AND MANUFACTURED HOMES

RECOMMENDATION

1. Accept the TECH Clean California QuickStart Award; and

2. Authorize the City Manager, or their designee, to execute the draft grant agreement and related documents and approve the budget changes necessary to appropriate the grant amount upon acceptance of the grant award; and

3. Authorize the City Manager, or their designee, to execute the draft Community Partnership Agreements Between the City of San Luis Obispo and: Community Action Partnership of San Luis Obispo, Diversity Coalition of San Luis Obispo County, and San Luis Obispo Climate Coalition.

POLICY CONTEXT
On December 13, 2022, Council adopted the 2023-27 Climate Action Work Program and voted to “authorize staff to apply for grants that fund implementation of the 2023-27 Climate Action Plan Work Program and authorize the City Manager to execute grant agreements and related documents.”1
Pillar 3 of the Climate Action Plan for Community Recovery includes Foundational Action

2.1.B Green Buildings which was operationalized as the following action in the 2023-25 Climate Action Major City Goal: Create an equity focused “Green and Healthy Buildings” service to educate the community and connect low-income building owners with resources, incentives, financing, and contractors.

The City of San Luis Obispo’s Financial Management Manual, Section 740 - Grant Management Policy states that Council has the authority to approve all grant applications in excess of $5,000 and delegate receipt and contract execution to the City Manager.

1 https://opengov.slocity.org/WebLink/DocView.aspx?id=170960&dbid=0&repo=CityClerk

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Item 5f

DISCUSSION
Background
Climate Action Plan
In 2022, Council adopted the 2023-27 Climate Action Plan Work Program, which includes an action to create an equity focused “Green and Healthy Buildings” service to educate the community and connect low-income building owners with resources, incentives, financing, and contractors.

Buildings Upgrade Prize
To implement this action, in 2023, staff partnered with the Diversity Coalition of San Luis Obispo County (Diversity Coalition) and the Community Action Partnership of San Luis Obispo (CAPSLO) to successfully apply for the Department of Energy’s (DOE) Building Upgrades Prize (“Buildings Up”). The prize focused on energy efficiency retrofits in manufactured housing as a source of naturally occurring affordable housing.

In implementing the prize, stakeholder engagement helped ground the work in local conditions. Input from manufactured home residents, manufactured housing community managers, community-based organizations, and technical experts helped identify resident interest, resident need, and appropriate energy efficiency retrofit solutions.

In 2024, the team transitioned to a second phase of the project focused on a 12-month technology demonstration to research the cost-effectiveness and feasibility of heat pump technology in mobile homes and to pilot potential features of a future energy advisor service. From October through December 2024, using Buildings UP prize funding, CAPSLO provided four residents in a local mobile home park (with different mobile home vintages, sizes, and occupancy characteristics) with energy audits, weatherization upgrades, electrical panel upgrades, and heat pump water heater and/or heat pump HVAC system installations. Over the next 12 months, CAPSLO and the Diversity Coalition monitored energy use and bill impacts of switching from natural gas to electric heat pump appliances. The team also provided supportive services including a monthly bill protection program, on-call energy coaching and troubleshooting for their new appliances, and quarterly home comfort check-ins to better understand the participants needs, concerns, and experience with their home upgrades. In parallel, the project team met with representatives from Central Coast Community Energy, Tri-County Regional Energy Network, and the California Energy Commission to advocate for home energy upgrade incentive options for residents of manufactured housing.

Findings from the first twelve months illustrated the mobile home and occupancy characteristics that predict positive and negative outcomes as they relate to comfort and energy bill impacts. Across all sites, energy use decreased, however most energy bills increased slightly due to unfavorable utility rate structures in master-metered mobile home parks and the introduction of air conditioning into homes that did not previously have it.

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Item 5f
Participants in this phase were protected from bill increases through the limited-term bill protection program, which offset the difference between the new electric bill compared to a “no project” alternative. Before the end of the 12-month monitoring cycle, Diversity Coalition returned to each participant and reviewed their energy bill trends, energy use trends, and inquired about their satisfaction with their new technology. Residents were given the option of a complementary removal of the installed heat pumps, to be reverted to high-efficiency natural gas appliances. All four participants opted to keep their heat pumps, deciding that the comfort and climate benefits of their new appliances outweighed energy bill variability.

While these initial findings are useful, it should be noted that each of the four participants had distinctly different energy use patterns, and at the same time, structural conditions in energy costs are continuing to shift (i.e., natural gas rates are forecast to grow faster than electricity rates through the end of the decade, several large local mobile home parks are transitioning to individually metered parks enabling special lower cost electric rates, and “plug-in” solar and battery storage is emerging a solution for reducing electricity bills in mobile and manufacturing homes).

TECH Quick Start Grant
The DOE planned a third phase of the Buildings Up Prize funding to scale implementation beyond the initial research; however, the current federal administration shifted DOE priorities and the third round was not offered. In November 2025, staff became aware of a state grant, the TECH QuickStart Scaling Fund, that would effectively replace the third round of the Buildings Up program. Per the authority delegated by Council for grants that implement the 2023-25 Climate Action Plan Work program, staff applied in partnership with Diversity Coalition, CAPSLO, and SLO Climate Coalition, and in December were selected to receive the grant in a total amount of $258,910. 2 The purpose of the grant project is to test approaches that overcome market barriers to heat pump adoption. The grant program, which runs from January to December 2026, would fund the expansion of the Buildings Up program detailed above. Diversity Coalition and SLO Climate Coalition would conduct additional outreach to manufactured housing communities to share education and resources and solicit additional program participants and the SLO Climate Coalition would integrate lessons learned into their existing Home Energy Advising Service.

The proposed work program will benefit from the earlier research phases and will focus primarily on direct installations of beneficial electrification upgrades, with the majority of funding going to CAPSLO to complete up to 26 additional heat pump upgrades in manufactured homes. While there are minor research components, the majority of the requested grant funding will be going directly into installations. The City’s proposed role is supporting local community-based organizations with regular project check-ins, assisting with quarterly grant reporting, and passing through funds to the project team.

2 This authority was delegated via the Council action taken at the December 13, 2022 City Council meeting via staff’s recommendation #2. The Council Agenda Report for that item is available at :
https://opengov.slocity.org/WebLink/DocView.aspx?id=170960&dbid=0&repo=CityClerk

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Item 5f
TECH Quick Start Grant Agreement
Attachment A provides the draft grant agreement between City the TECH Quick Start program administrator (Energy Solutions). The draft agreement provided in Attachment A may be subject to minor non-substantive amendments. Staff’s recommendation is to approve program participation and to delegate signatory authority of the agreement in its final form to the City Manager.

Administrative Considerations
In previous Buildings Up prizes, staff passed funds through to partners via “sole source” purchase orders. Since that time, procurement rules have been clarified and the purchasing policy compliant approach in this context is for each partner to have a community partnership agreement in place. Attachments B, C, and D are the draft community partnership agreements for each of the named partners in the grant. Each of the organizations have reviewed the draft agreements and are supportive of the language contained therein. The draft agreements may be subject to minor non-substantive amendments; staff’s recommendation is to delegate signatory authority for the agreements in their final form to the City Manager.

Previous Council Action
 August 2020 – Council adopted Resolution 11159 (2020 Series) which approved the Climate Action Plan for Community Recovery with the goal of community carbon neutrality by 2035 and a sub-goal of 50 percent reduction in emissions from existing buildings by 2030.
 December 2022 – Council adopted Resolution No. 11381 (2022 Series) reaffirming these goals and created a work program for fiscal years 2023-27, including a Green Buildings Action to develop a voluntary retrofit program that connects low income community members with resources. Council also took action at this meeting to delegate grant submittal and agreement execution to staff for funding that implements the Climate Action Plan.
 June 2023 – Council adopted the 2023-25 Financial Plan Climate Action Major City Goal 4.1.i, which directs staff to conduct a study session, and pending Council direction, develop an equitable framework for cost effective building electrification retrofit policies, with an initial focus on additions and alterations, as called for by CAP Green Buildings Task 2.1.E.

Public Engagement
Staff have conducted extensive outreach on the topic of green buildings generally, and with mobile and manufactured communities specifically. This item is on the agenda for the February 3, 2026 City Council meeting and will follow all required postings and notifications. The public will have an opportunity to comment on this item at or before the meeting.

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Item 5f

CONCURRENCE
The Community Partnership Agreements with SLO Climate Coalition, the Diversity Coalition, and CAPSLO concur with the scope of work in the grant agreement and the proposed Community Partnership Agreements.

ENVIRONMENTAL REVIEW
The California Environmental Quality Act does not apply to the recommended action in this report, because the action does not constitute a “Project” under CEQA Guidelines Sec. 15378. However, if the recommended action in this report were to constitute a “Project” it would still be categorically exempt from environmental review per CEQA Guidelines Sec. 15301, Existing Facilities, as it would reduce energy use and associated greenhouse gas emissions in existing buildings.

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

Funding
Sources
Total Budget
Available
Current
Funding
Request
Remaining
Balance
Annual
Ongoing
Cost
General Fund $ $ $ $
State $258,910
Federal
Fees
Other:

Total $ $258,910 $ $
The entirety of $258,910 identified in the draft grant agreement would be passed through to the identified community-based organizations, who in turn will use most of the funding for direct installation of energy efficiency retrofits in community member homes. The City will use existing programmed staff time as an “in-kind” match to assist with grant administration.

Under the current proposed agreement:
 $193,910 would go to CAPSLO to serve as the general contractor on the project, which includes the purchase and installation of five central heat pump HVAC systems, six window saddle heat pumps, 15 heat pump water heaters, and (as necessary) 100-amp electrical panels in the homes of local income-qualified residents. This cost also includes permits and administrative overhead.  $35,000 would go to Diversity Coalition for continued outreach to manufactured housing communities, home comfort check-ins, and support with a bill protection

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Item 5f
program that would be administered in certain instances.  $25,000 would go to SLO Climate Coalition for the inclusion of mobile and manufactured homes into their Home Energy Advising Service platform.  $5,000 would go to the current technical service provider (Artemesia Energy) supporting CAPSLO with the bill protection program.

ALTERNATIVES

1. Council could direct staff to decline the TECH QuickStart Grant award offer. If the grant award offer is declined, CAPSLO, the Diversity Coalition, and the SLO Climate Coalition will not receive funds to carry out the project, which is intended to assist low-income households in making their homes more resilient to weather and climate impacts while helping to meet the City’s climate action goals.

2. Council could request amendments to the TECH QuickStart Grant and/or Community Partnership Agreements. Requests of this nature may impact staff’s ability to complete the grant in the intended time frame and staff would request specific direction on any requested amendments.

ATTACHMENTS
A - Draft TECH QSG Agreement
B - Draft Community Partnership Agreement – CAPSLO
C - Draft Community Partnership Agreement – Diversity Coalition D - Draft Community Partnership Agreement – SLO Climate Coalition

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449 15th Street, Oakland, CA 94612 | 510.482.4420 | energy-solution.com 1 TECH Quick Start Grant Participation
Agreement
This TECH Quick Start Grant Participation Agreement (“Agreement”) issued by and between Cohen Ventures, Inc., dba Energy Solutions (“Energy Solutions”), and City of San Luis Obispo, a California municipality (“Quick Start Grant Recipient” or “Grantee”) is made effective upon signature by Grantee. Capitalized terms not otherwise defined herein shall have the meanings given to them in the Agreement.

Grantee will provide its services to Energy Solutions on the following project:

Project Name: SLO Green and Healthy Homes (the “Project”) TECH QSG Project Coordinator(s):

Alison Seel, VEIC
[email protected]
Michael Greco, Energy Solutions
[email protected]
Quick Start Grant Recipient Project
Coordinator:

Chris Read
805-781-7151
[email protected]
Program Description
The TECH Clean California initiative (hereafter referred to as the “Program”) provides incentives for the installation of qualifying HVAC heat pumps (“HVAC Heat Pumps”) and Heat Pump Water Heaters (“HPWH”), and other eligible equipment at qualifying customer (“Customer”) sites. The Customer is defined as the person or party whose name is on the invoice and/or project agreement.

The Quick Start Grants (“QSG”) Program is designed to fund localized, vanguard approaches to accelerate deployment of heat pump space and water heating technologies. This allocation of funds is targeted at testing market transformation strategies and approaches, supporting technology development, and leveraging high-impact opportunities to increase the installed base of heat pump technologies.

Cohen Ventures, Inc. dba Energy Solutions (“Energy Solutions”) is implementing the Program on behalf of the Southern California Edison Company (“SCE”), which is administering the Program at the direction of the California Public Utilities Commission (“CPUC”).

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449 15th Street, Oakland, CA 94612 | 510.482.4420 | energy-solution.com 2 Program Term
This Agreement is effective upon the date it is executed by Quick Start Grant Recipient and will continue until March 31, 2027 (“Program End Date’) unless earlier terminated in accordance with the provisions in this Agreement. The Program or this Agreement may be modified or terminated by Energy Solutions at any time without notice. Termination of this Agreement or expiration of this Agreement shall not relieve Quick Start Grant Recipient of any warranties or other obligations expressed herein which by their terms are intended to extend beyond termination.

PROGRAM DEFINITIONS
When used in this Agreement, the following terms, with initial capitalization, have the meanings specified below:
“Heat Pump Incentive (Incentive)” means financial reimbursement (e.g. rebates, discounts) to Quick Start Grant Recipient paid pursuant to this Agreement to encourage the installation of HVAC Heat Pumps and HPWHs. The Incentive for each Qualifying Equipment will be set forth on the Qualifying Equipment List, as such may be modified in accordance with this Agreement. “Participating Trade Professional” means an entity that participates in any TECH Initiative program. The CPUC, at its sole discretion, reserves the right to review and approve if an organization is a Participating Trade Professional.
“Qualifying Customer” means a California resident that is eligible for available Incentives. “Qualifying Equipment” means equipment that is eligible for Incentives. Qualifying Equipment is limited to equipment included on the Qualified Equipment List. “Qualifying Equipment List” The list of Qualifying Equipment that is eligible for Incentives. “Quick Start Grant Recipient” refers to the selected awardee of the Quick Start Grant solicitation.
“Services” refer to the activities included in the Statement of Work (see Exhibit A) that will be performed by the Quick Start Grant Recipient.

PROGRAM TERMS OF PARTICIPATION
Term, termination, suspension rights
Energy Solutions reserves the right to terminate this Agreement or any part of this Agreement for any reason or for no reason in its sole discretion. In the event of such termination, the Quick Start Grant Recipient shall immediately cease participation in the Program, including but not limited to any applicable use of Program materials such as announcement flyers, program website material or any other physical or digital material containing program details. Energy Solutions will not pay Quick Start Grant Recipient incentives for any Applications dated and submitted or

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449 15th Street, Oakland, CA 94612 | 510.482.4420 | energy-solution.com 3 grant funding for work performed after receipt of notice of termination or for any costs incurred by the Quick Start Grant Recipient post-termination.

Energy Solutions reserves the right to terminate this Agreement for cause in the event of any default by the Quick Start Grant Recipient, or if the Quick Start Grant Recipient fails to comply with any of the terms and conditions of this Agreement. Examples of cause include but are not limited to (a) failure to properly complete incentive forms; (b) failure to properly process incentives; (c) loss of certifications necessary for participation in the Program, insolvency; or (d) failure to provide Energy Solutions reasonable assurances of future performance. If terminated for cause, the Quick Start Grant Recipient (1) shall be liable for all damages resulting from the default that led to termination and (2) shall immediately cease participation in the Program.

Changes to the Program
Energy Solutions may, in its sole discretion, make changes to the Program at any time, including, without limitation, modifying incentive amounts, and adding or removing Qualifying Equipment from the Program. The date of such change(s) will take effect on the earlier of (a) the date the change is posted on the Program website, or (b) the date the Quick Start Grant Recipient receives written notice of such change, and will apply to any installations completed on or after the date the change takes effect regardless of the date the incentive is applied for. Written notice will generally be provided in email format.

QUICK START GRANT RECIPIENT TERMS AND REQUIREMENTS

1.0 SUBCONTRACTING
Quick Start Grant Recipient may use subcontractors to install Qualifying Equipment or perform services specified in the Statement of Work, provided the Quick Start Grant Recipient takes full responsibility for the services provided by their subcontractors. Quick Start Grant Recipient represents and warrants to Energy Solutions, SCE, and CPUC that all of Quick Start Grant Recipient’s subcontractors will perform their Services in a professional manner and with the degree of skill and care that is consistent with current, good, and sound professional procedures and practices.

2.0 CONFIDENTIAL DATA
Qualifying Customer names, utility account numbers and utility billing data are considered confidential data and may not be provided via email. This data may be provided through the TECH Clearinghouse, or if any additional transfer of confidential data is required, Energy Solutions will setup a secure file transfer website for Quick Start Grant Recipient to use to transfer data. Quick Start Grant Recipient is solely responsible for the secure storage of confidential information in its possession that is collected for the submission of incentive claims.

Quick Start Grant Recipient must destroy any customer utility account numbers and utility

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449 15th Street, Oakland, CA 94612 | 510.482.4420 | energy-solution.com 4 billing data in its possession no later than the date of the incentive payment clearing for the incentive submission in question, or 12 months, whichever is lesser.

3.0 MARKETING MATERIALS
Quick Start Grant Recipient shall submit all marketing materials related to the Services being provided to Energy Solutions hereunder to the Energy Solutions Representative for approval prior to their release or communication. Except as provided for herein, Quick Start Grant Recipient shall not use the name or logo of the CPUC on marketing materials for its program unless Quick Start Grant Recipient obtains prior written approval of the CPUC.

Quick Start Grant Recipient shall not use SCE’s, name, trademark, trade name, logo, identity, or any affiliation for any reason or in any way, including on marketing materials, without SCE’s prior written consent, which may be withheld by SCE, if applicable, in its sole discretion. Quick Start Grant Recipient is prohibited from stating, implying or in any way representing to third parties, Customers or program participants that SCE has endorsed or approved Quick Start Grant Recipients, its Subcontractors or their performance of the Services.

Notwithstanding the foregoing, Quick Start Grant Recipient shall disclose their source of funding for the program by stating prominently on marketing materials that “Funding for this project is part of California Climate Investments, a statewide initiative that puts billions of Cap-and-Invest dollars to work reducing greenhouse gas emissions, strengthening the economy, and improving public health and the environment — particularly in disadvantaged communities.”

4.0 NON-DISCRIMINATION
Quick Start Grant Recipient and its subcontractors shall not unlawfully discriminate, harass, or allow harassment against any employee or applicant for employment because of sex, race, color, ancestry, religions creed, national origin, physical disability (including HIV and AIDS), mental disability, medical condition (cancer), age (over 40), marital status, and denial of family care leave. Quick Start Grant Recipient and subcontractors shall ensure that the evaluation and treatment of their employees and applicants for employment are free from such discrimination and harassment.

5.0 GOVERNING LAW; JURISDICTION AND VENUE
This Agreement will be interpreted under, and any disputes arising out of this Agreement will be governed by, the laws of the State of California, without reference to its conflicts of law principles. Quick Start Grant Recipient irrevocably consents to the jurisdiction of the state and federal courts located in the State of California, USA, in connection with all actions arising out of or in connection with this Agreement, and waives any objections that venue is an inconvenient forum. Quick Start Grant Recipient further agrees that it will not initiate any action against Energy Solutions or CPUC in any other jurisdiction.

6.0 WAIVER

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449 15th Street, Oakland, CA 94612 | 510.482.4420 | energy-solution.com 5 Delay or failure to enforce or insist on strict compliance with any provision of this Agreement does not constitute a waiver or otherwise modify this Agreement. Waiver of any right granted under this Agreement on one occasion will not: (i) waive any other right; (ii) constitute a continuing waiver or (iii) waive that right on any other occasion.

7.0 COMPENSATION AND METHOD OF PAYMENT
Energy Solutions will pay Quick Start Grant Recipient the Quick Start Grant on a fixed price basis at the schedule and amounts set forth in the Budget and Payment Sections of the Quick Start Grant solicitation, attached and incorporated herein as Exhibit A. Quick Start Grant Recipient shall be paid in arrears, based upon invoices submitted by Quick Start Grant Recipient, and approved by Energy Solutions and SCE. If a payment schedule sets forth progress payments that are due when given tasks or milestones are completed, the full amount of the progress payment due upon completion of the task or milestone shall then become payable to Quick Start Grant Recipient at that time, without deduction, subject to invoicing and payment timing terms described below. Quick Start Grant payments to Quick Start Grant Recipient will be subject to Energy Solutions first receiving payment from SCE when Energy Solutions is invoicing such work by Quick Start Grant Recipient to SCE. Energy Solutions shall pay Quick Start Grant Recipient for all approved invoices within seven (7) business days of receiving payment from SCE.

In accordance with the billing schedule set forth in the Budget and Payment Sections of Exhibit A, Quick Start Grant Recipient shall submit to Energy Solutions invoices for payment within seven (7) calendar days of month’s end. Each invoice shall specify the Quick Start Grant Recipient’s payee name, Task Order, and shall specify in detail the final incentive amount and calculation, Services performed, the names of Quick Start Grant’s personnel who performed the Services set forth in the Task Order, their respective hours worked and labor rates together with reimbursable costs and other allowable charges itemized. Each invoice shall include the current monthly amount being invoiced, the cumulative amount invoiced to date, the cumulative retained amount, and the total fixed price. Energy Solutions shall review Quick Start Grant Recipient’s invoices, and Quick Start Grant Recipient shall provide any supporting documentation reasonably requested by Energy Solutions and make any corrections to invoices as may be requested by Energy Solutions from time to time. If the Quick Start Grant Recipient receives the first fixed-price milestone payment for the “project start” milestone but fails to perform any additional Services under the Statement of Work, Energy Solutions may, in its reasonable discretion, require the Quick Start Grant Recipient to refund the full amount of that milestone payment.

8.0 INDEMNITY
Quick Start Grant Recipient agrees to indemnify and hold harmless Energy Solutions, SCE, the CPUC, its officers, agents and employees, from and against any and all claims, demands, liabilities, losses or causes of action which arise out of or are connected with this agreement or

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449 15th Street, Oakland, CA 94612 | 510.482.4420 | energy-solution.com 6 the equipment excepting only those claims, demands, liabilities, losses, or causes of action arising solely from the negligence of Energy Solutions, SCE, the CPUC, its officers, agents and employees.

9.0 REGULATORY AND GOVERNING AUTHORITY
Quick Start Grant Recipient understands and agrees to these terms and conditions and the Program shall at all times be subject to changes or modifications by the CPUC at its sole discretion. Quick Start Grant Recipient understands and agrees that the CPUC may at any time commence an investigation or other regulatory proceeding in connection with the Program and/or these terms and conditions. Quick Start Grant Recipient agrees to cooperate fully with any such investigation or proceeding.

10.0 TAX LIABILITY
Quick Start Grant Recipient will report grant funding on IRS Form 1099 unless Quick Start Grant Recipient has indicated its tax-exempt corporate tax status. Quick Start Grant Recipient is encouraged to consult its tax adviser concerning the taxability of incentives. Neither the CPUC nor Energy Solutions are responsible for any taxes, interest, and/or penalties that may be imposed on Quick Start Grant Recipient as a result of receipt of incentives from this program or any other program related cost. Quick Start Grant Recipient assumes all responsibility for collecting and reporting any and all applicable sales tax. Quick Start Grant Recipient acknowledges that at the time of purchase, sales tax must be applied prior to the application of any rebate.

Energy Solutions may report incentives that Quick Start Grant Recipient claims as income to Payee on IRS Form 1099 depending on their tax status indicated.

CONFIDENTIALITY
Quick Start Grant Recipient acknowledges and agrees that CPUC and Energy Solutions have no duty of confidentiality with respect to any information submitted by Quick Start Grant Recipient pursuant to its participation in the Program and that CPUC, SCE, Energy Solutions, and its subcontractors may disclose such information to the CPUC, SCE and/or their authorized agents.

This Program is subject to oversight by the CPUC which may wish to review any Program data that Energy Solutions receives. Neither the CPUC, SCE nor Energy Solutions will have any liability to Quick Start Grant Recipient or any other party as result of any public disclosure of any data or other materials submitted by Quick Start Grant Recipient pursuant to the Program.

The Quick Start Grant Recipient must follow all applicable laws and regulations for the protection of data that is deemed confidential.

11.0 TECH Program Terms and Conditions:

Participating Trade Professional Agreement with Customer

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449 15th Street, Oakland, CA 94612 | 510.482.4420 | energy-solution.com 7 To be eligible for incentives under this Agreement, the Quick Start Grant Recipient must enroll in the Program as a Participating Trade Professional and must enter into an agreement with each Qualifying Customer that is receiving an incentivized product (“Customer Agreement”). This Customer Agreement must include the following: i) Participating Trade Professional’s company name and ultimate parent, and ii) Participating Trade Professional’s customer service contact information (phone number and email).

Qualifying Equipment: Only Qualifying Equipment, limited to the equipment listed at frontierenergy-tech.my.site.com/contractor support/s, is eligible for the receipt of Program incentives.

Program Funding: The Quick Start Grant Program is part of California Climate Investments, a statewide program that puts billions of Cap-and-Invest dollars to work reducing GHG emissions, strengthening the economy, and improving public health and the environment– particularly in disadvantaged communities. The Cap-and-Invest program also creates a financial incentive for industries to invest in clean technologies and develop innovative ways to reduce pollution.

California Climate Investments projects include affordable housing, renewable energy, public transportation, zero-emission vehicles, environmental restoration, more sustainable agriculture, recycling, and much more. At least 35 percent of these investments are located within and benefiting residents of disadvantaged communities, low-income communities, and low-income households across California. For more information, visit the California Climate Investments website at: www.caclimateinvestments.ca.gov. Both total and certain segments of Program incentive funding are subject to certain limits and available on a first-come, first-served basis until the funding is exhausted or the Program is terminated.

Cancellation Policy, Requirements, Process, and Any Applicable Fees: There are no applicable fees for participating in the Program. Energy Solutions reserves the right to terminate any Agreement with any Participating Trade Professional for any reason or for no reason in its sole discretion. This may result in cancellation of pending incentives.

Risks and Benefits of Participation: There are no guaranteed benefits for participating in the Program. Incentives are available on a first come first serve basis and can significantly reduce upfront costs of installations. Installing Qualifying Equipment does not guarantee a certain amount of energy or gas savings. The Program will not assume liability for any unpaid incentives, which may present a risk to the Participating Trade Professional and Qualifying Customer. As part of this Agreement, the Participating Trade Professional acknowledges all risks associated with participating in the TECH initiative. By signing below, you acknowledge and accept all risks associated with participating in the Program.

Disclosure: Quick Start Grant Recipient, Energy Solutions, and other third parties associated with the Program are not a representative of SCE or otherwise affiliated with SCE.

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449 15th Street, Oakland, CA 94612 | 510.482.4420 | energy-solution.com 8 Installation Requirements: The Program requires that the Qualifying Equipment is installed at an eligible customer address that is in California and that the Qualifying Equipment is installed in place of an existing water heater or furnace, or has controls installed that prevent furnace from operating as the main heating source.

Quality Assurance and Quality Controls Protocols: All Services performed will be subject to automated and manual protocols designed by Energy Solutions to evaluate that equipment and customers are eligible to receive program funding, that equipment replaced an existing system and equipment is in good working order. These processes will be used to identify fraudulent activities and ensure no fraudulent data is submitted in applications.

Inspections and Verification: The installation of equipment will be subject to verification and metering by Energy Solutions, its representatives and Program evaluators, as approved by CPUC. Verification, evaluation (including onsite inspections at your address), and metering may be performed on all Qualifying Equipment or a select portion thereof. Evaluation activities may include surveys and interviews of contractors, homeowners and/or occupants to understand equipment performance and the Program experience.

Notice: California Consumers are not obligated to purchase any full fee service or other service not funded by the Program. This program is funded by the California Climate Investments and administered and implemented by Energy Solutions through a contract with Southern California Edison Company on behalf of various California utilities and under the auspices of the California Public Utilities Commission (“CPUC”). Any data related to the Program, including any customer data, will be shared with authorized entities, including but not limited to, policy makers, program implementers, and the program evaluator under confidentiality protocols. As this data will not be made public and will follow the confidentiality rules and protocols established by the CPUC in prior proceedings, it does not require individual customer permission.

By signing below, Quick Start Grant Recipient agrees to be bound by the terms and conditions of this Agreement, including Exhibit A (Statement of Work) and any other associated Exhibits and Appendices, and has caused this Agreement to be executed by its duly authorized representative.

IN WITNESS WHEREOF, THE QUICK START GRANT RECCIPIENT EXECUTED THIS AGREEMENT AS OF THE EFFECTIVE DATE. THE INDIVIDUAL SIGNING BELOW ON

BEHALF OF THE PARTY HEREBY REPRESENT AND WARRANT THAT THEY ARE

DULY AUTHORIZED TO EXECUTE THIS AGREEMENT AND BIND THEIR RESPECTIVE PARTY TO THE TERMS AND CONDITIONS SET FORTH ABOVE.

QUICK START GRANT RECIPIENT: __________________________________ By: _______________________________
Title: ______________________________
Date: ______________________________

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449 15th Street, Oakland, CA 94612 | 510.482.4420 | energy-solution.com 9 EXHIBIT A:

STATEMENT OF WORK
Quick Start Grant Background
Through this project, the SLO Green and Healthy Homes project team will refine and scale equitable services to overcome barriers to heat pump adoption in manufactured homes. Building on past work conducting heat pump technology demonstrations, energy advising, and customer protection services with four manufactured homes, the team will expand these pilot programs to complete at least 5 heat pump HVAC retrofits and at least 20 heat pump water heater upgrades in this unique and challenging retrofit setting. A specialized team available throughout and after installation will support residents as they adjust to new equipment and assist in identifying and addressing issues that arise.

Statement of Work
Under this Statement of Work, the Grantee shall complete the following activities:
01-Reporting & Coordination
The TECH Clean California Quick Start Grant (“QSG”) Energy Solutions and VEIC team will host a kickoff meeting with the Quick Start Grant Recipient. During this meeting, the procedures, requirements for reporting, and invoicing guidelines for the Quick Start Grant Recipient to adhere to will be reviewed, as well as TECH’s reporting responsibilities to the California Public Utilities Commission (“CPUC”).

Following the kickoff meeting, the Quick Start Grant Recipient will participate in monthly meetings with the TECH QSG Project Coordinators to facilitate coordination within TECH workstreams, discuss Project findings and recommendations, and make strategic adjustments throughout the Project. The Quick Start Grant Recipient will also provide brief monthly updates to the TECH QSG Project Coordinators via Excel document in preparation for and during these monthly meetings.

The Quick Start Grant Recipient will demonstrate successful completion of each Project milestone to be eligible for payment, as described in the Compensation and Payment Terms below and will submit documentation of milestone achievement with their invoice using a template provided by the TECH QSG Project Coordinators. Any changes to milestones or deadlines will be mutually agreed upon between the TECH QSG Project Coordinators and the Quick Start Grant Recipient via email. Tracking toward project key performance indicators (“KPIs”) and cost sharing will also be reported within the milestone invoices.

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449 15th Street, Oakland, CA 94612 | 510.482.4420 | energy-solution.com 10 The Quick Start Grant Recipient will prepare a Final Report in the form of a written report and a slide deck to be presented during a public webinar. This Final Report will at a minimum summarize the Project approach and lessons learned through the project, evaluate the Project against the proposed KPIs, provide high-level recommendations for future work, and identify proposed strategies to scale the Project. A draft of the written report and slide deck will be provided to the TECH QSG Project Coordinators at least one (1) month before the Project end date for input. The Final Report and slide deck will be completed before the end of the SOW and may be shared publicly via Energy Solutions on the TECH website.
01 - Meetings, Reporting & Coordination Activities
1) Kickoff, monthly, and ad hoc Meetings:
a) Grantee will participate in a kickoff meeting and monthly coordination meetings with the TECH QSG Project Coordinator(s) to facilitate coordination within TECH workstreams, discuss Project findings and recommendations, and make strategic adjustments throughout the Project.
i) The kickoff meeting will be scheduled to occur within two (2) weeks of Agreement execution. Monthly coordination meetings will be scheduled by the Grantee and TECH QSG Project Coordinator to occur at a mutually agreeable time. (1) After the kickoff meeting, Grantee will submit to the TECH QSG Project Coordinator(s) the associated Milestone Report 1 which shall summarize what was discussed, provide detailed information as it relates to the activities that Grantee will perform pursuant to the Project, and provide responses to any questions posed by the TECH QSG Project Coordinator(s) regarding the Project.
b) VEIC will bring all Quick Start Grant Projects together on a quarterly basis for a two (2)-hour virtual meeting. The Quick Start Grant recipient will make its best effort to attend all quarterly meetings. The Quick Start Grant recipient may be asked to:
i) Propose agenda items for the quarterly meetings
ii) Present its Project and associated challenges and results during these events. 2) Draft Reporting and Completion of Deliverable Milestones a) City staff will prepare a Draft Report in the form of a written report. This Draft Report will include, at minimum, preliminary results and recommendations based on Project implementation, plus background information including the Project approach, theory of change, and research questions.
b) Grantee will demonstrate successful completion of each Deliverable milestone to be eligible for payment, as described below, and City staff will submit documentation of milestone achievements in the form of a “Milestone Report” with the invoice for payment using a template provided by Energy Solutions.
c) CAPSLO and City Staff will prepare project installation data that aligns with TECH Clean California’s dataset for additional analysis and reporting where possible, consistent with customer confidentiality, data sensitivity, and availability. 3) Final Report:
a) City Staff will prepare a Final Report in the form of a written report. This Final Report will, at a minimum, summarize the Project approach and lessons learned through the

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449 15th Street, Oakland, CA 94612 | 510.482.4420 | energy-solution.com 11 project, evaluate the Project against the proposed KPIs, provide high-level recommendations for future work, and identify proposed strategies to scale the Project.

The Final Report may be shared publicly via Energy Solutions on the TECH website. b) City Staff will prepare a Slide Deck summarizing Project implementation and lessons learned through the Project. A draft of the slide deck will be provided to the TECH Project Coordinators at least one (1) month before the Project conclusion for input.

After VEIC and Energy Solutions have approved the slide deck, Grantee will present at a public webinar hosted by the TECH program. The final version of the Slide Deck may be shared publicly via Energy Solutions on the TECH website. 02-Outreach, Engagement, and Enrollment
Diversity Coalition will conduct outreach and engagement activities in up to three manufactured housing communities, including Chumash Village, a previously engaged community. Outreach will be delivered at varying levels of engagement based on each community’s prior exposure to the program, interest, and readiness. Grantee will enroll interested participants to receive weatherization and heat pump upgrades.

Activities that Grantee will complete:
1) Outreach and engagement activities in up to three (3) manufactured housing communities. Exact outreach activities will be tailored to each community’s needs and existing knowledge, and may include introductory outreach (such as stakeholder meetings or community presentations), intermediate engagement (such as group meetings or town hall–style gatherings), or follow-up engagement that builds on prior work (for example, a follow-up meeting in a community such as Chumash Village). Across these engagement levels, Diversity Coalition will share relevant information about heat pump upgrades, lessons learned from earlier installations where applicable, behavioral best practices as appropriate, and eligibility requirements for participation in the next phase of upgrades. Outreach activities may also support lead generation for SLO Climate Coalition and CAPSLO, as appropriate. All outreach activities will include a mechanism for residents to express interest in participating in future upgrades once eligibility is established.
a) Responsible for completing Activities: Diversity Coalition b) Responsible for ensuring Activities were satisfactorily completed: Quick Start Grant Recipient Project Coordinator
c) Deliverable(s): Documentation of community outreach
2) Enroll participants to receive weatherization and heat pump upgrades. Diversity Coalition will share the list of interested residents with SLO Climate Coalition and CAPSLO. If residents meet DOE Weatherization Program income eligibility levels, CAPSLO will lead on participant eligibility verification and enrollment, to include comprehensive energy audits, reviewing Consumer Protection and Disclosure Forms with residents, and finalizing participant enrollment agreements. CAPSLO will report enrollment updates at bi-weekly project management meetings. Enrolled participants will be added to HubSpot by SLO Climate Coalition staff.

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449 15th Street, Oakland, CA 94612 | 510.482.4420 | energy-solution.com 12 If residents meet HUD low-income guideline levels, SLO Climate Coalition will lead on participant enrollment and project management, to include basic energy audits, reviewing Consumer Protection and Disclosure Forms with residents, and finalizing participant enrollment agreements. CAPSLO will report enrollment updates at bi-weekly project management meetings. Enrolled participants will be added to HubSpot by SLO Climate Coalition Staff.

City staff will be responsible for tracking overall enrollment progress to ensure the team is on track to achieve each milestone deliverable and to inform milestone reports. a) Responsible for completing Activities: CAPSLO
b) Responsible for ensuring Activities were satisfactorily completed: Quick Start Grant Recipient Project Coordinator
c) Deliverable(s): Documentation of participant enrollment 03- Installation, Energy Monitoring, Bill Protection, Concierge Project Management Activities Grantee will complete under this Task include:
1) Scoping and scheduling installations. For enrolled participants that meet DOE Weatherization Program income eligibility levels, CAPSLO will conduct DOE energy audits of their homes to determine scopes and schedules of work to be completed, including weatherization, panel upgrades, and heat pump HVAC/heat pump water heater installations.

For enrolled participants that meet HUD low-income guideline levels, SLO Climate Coalition will complete basic home energy audits and work with enrolled participants to determine the scope of upgrades to be installed, and coordinate with CAPSLO to finalize project scopes and schedules for work to be completed, including panel upgrades and heat pump HVAC/heat pump water heater installations.

CAPSLO and SLO Climate Coalition will report project updates at bi-weekly project management meetings to be tracked in HubSpot by SLO Climate Coalition Staff. a) Responsible for completing Activities: CAPSLO and SLO Climate Coalition b) Responsible for ensuring Activities were satisfactorily completed: Quick Start Grant Recipient Project Coordinator
c) Deliverable(s): Documentation of home energy audits; plans for project scopes 2) Performing equipment installations. CAPSLO will apply for all permits and complete all weatherization, electrical panel, heat pump HVAC, and heat pump water heater installations.
a) Responsible for completing Activities: CAPSLO
b) Responsible for ensuring Activities were satisfactorily completed: Quick Start Grant Recipient Project Coordinator

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449 15th Street, Oakland, CA 94612 | 510.482.4420 | energy-solution.com 13 c) Deliverable(s): Installation documentation & verification 3) Energy monitoring and bill protection payments. CAPSLO’s electrician will install circuit energy monitors in the electrical panel of homes that receive both heat pump HVAC and heat pump water heater upgrades. CAPSLO and SLO Climate Coalition will acquire monthly energy bills from enrolled customers to share with the subcontractor responsible for data analysis. A subcontractor for the City will monitor energy monitor status and report to the project team via email if troubleshooting or reconnection is required. The subcontractor will review monthly energy bill and energy monitor data for 12 months to analyze for bill impacts, energy use changes and trends, and determine monthly bill protection payment amounts. The subcontractor will determine and track monthly bill protection payments. Bill protection payment amounts will be reported to CAPSLO, who will pay the determined amount to participants on a monthly basis. City staff will be responsible for reviewing energy monitoring and bill protection updates reported during project management meetings and cross-referenced in HubSpot to inform milestone reporting.
a) Responsible for completing Activities: CAPSLO, SLO Climate Coalition, Energy monitoring subcontractor TBD
b) Responsible for ensuring Activities were satisfactorily completed: Quick Start Grant Recipient Project Coordinator
c) Deliverable(s): Documentation of customer energy impacts 4) Ongoing customer support. SLO Climate Coalition will offer ongoing support services to all participants for the duration of the project. Services will include on-call energy coaching to answer questions about using newly installed technology, setting appliances to appropriate settings, learning behavioral techniques to reduce energy bills, and troubleshooting any technology disruptions or failures. SLO Climate Coalition will report to CAPSLO and assist in scheduling return visits as needed for troubleshooting or maintenance requests. SLO Climate Coalition will report service delivery updates at biweekly project management meetings, which will be logged in HubSpot by SLO Climate Coalition staff. City staff will be responsible for reviewing customer support activities reported during project management meetings and cross-referenced in HubSpot to inform milestone reporting.
a. Responsible for completing Activities: SLO Climate Coalition b. Responsible for ensuring Activities were satisfactorily completed: Quick Start Grant Recipient Project Coordinator
c. Deliverable(s): Documentation of customer support activities provided, including log of energy coaching, troubleshooting, or maintenance visits Deliverables
The deliverables for this Project are outlined below: Grantee shall submit each Deliverable to Energy Solutions by the stated due date in Table 2 below unless otherwise mutually agreed upon in writing by the Parties in advance.

1. “Milestone Reports” which will include documentation of milestone achievement;

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449 15th Street, Oakland, CA 94612 | 510.482.4420 | energy-solution.com 14

2. “Draft Report” which will include project background, project approach and theory of change, and preliminary results and recommendations;

3. “Final Report” which will include all sections of the Draft Report updated to include an executive summary and final results and recommendations. Final report will be reviewed and potentially iterated on with Energy Solutions and VEIC prior to finalization;

4. “Slide Deck & Webinar” which will summarize Final Report content for a public audience and presented at public webinar; and

5. “Distribution Report” which will share the approach and activities to distribute the information gained during the project.

Grantee will ensure that all activities outlined in the Project Plan are satisfactorily met.

Table 2: Deliverable Due Dates
Deliverable Due Date
Milestone Reports Upon Milestone completion
Draft Report December 31, 2026
Final Report March 31, 2027
Slide Deck and Present at Webinar March 31, 2027
Distribution Report March 31, 2027
Schedule
To begin as of the Effective Date and continue until March 31, 2027, or until terminated by either Party as set forth in the Agreement.

Compensation and Payment Terms
The Services performed under this SOW shall be billed on a fixed price milestone (“FP”) basis as determined by the schedule set forth in Table 2 above and pursuant to Section 7 of the Agreement.

Payment is contingent upon approval of each Deliverable by Energy Solutions and VEIC. Invoices shall be submitted by Grantee by the fifth (5
th) day of the month following Energy Solutions’
written approval of the Deliverable.

Table 3: Payment Milestones
Milestone Deliverable Percentage of Total
Budget
Total Milestone
Payment ($)
Milestone Report 1:
 Kick Off Meeting
 Documentation of 1
outreach event
 Documentation of 5
participants enrolled
20% 64,727.50
Milestone Report 2:
 Documentation of 1
outreach event
25% 64,727.50

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449 15th Street, Oakland, CA 94612 | 510.482.4420 | energy-solution.com 15  Documentation of 5
participants enrolled
 Documentation of 5
projects completed
(home energy audits;
plans for project scopes;
installation
documentation)
 Milestone Report 3:

Documentation of 1
outreach event
 Documentation of 5
participants enrolled
 Documentation of 5
projects completed
(home energy audits;
plans for project scopes;
installation
documentation)
34% 64,727.50
Milestone Report 4:
 Documentation of up
to 5 final participants
enrolled
 Documentation of 5
projects completed
(home energy audits;
plans for project scopes;
installation
documentation)
 Documentation of
ongoing customer
support
21% 64,727.50
Milestone Report 5:
 Final Reporting
including Draft Report,
Final Report, Slide
Deck, Webinar, and
Distribution Report
 Documentation of
customer energy
impacts
0 0
Total $ 258,910
Grantee shall notify the TECH QSG Project Coordinators when the charges incurred under this Task Order reach 75% of the Total Budget. If at any time Grantee estimates that the work, as authorized by this SOW, cannot be completed within the Schedule and/or Total Budget, Grantee shall promptly notify the TECH QSG Project Coordinators and shall submit a revised and substantiated estimate. Upon receipt of the revised estimate, Energy Solutions shall review and determine in its sole discretion if issuing a Change Order is appropriate. Absent a Change Order

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449 15th Street, Oakland, CA 94612 | 510.482.4420 | energy-solution.com 16 signed by the Parties, Grantee shall not proceed with, or be reimbursed for, any work performed beyond the end date or exceeding the Total Budget of this SOW.

Reimbursable Costs
Any costs incurred by the Project, including equipment and subcontractors are presumed to be included in the total cost set forth by Grantee in this SOW. There are no reimbursable costs associated with the scope of work outlined above.

Scope of Work Budget
Grantee’s total invoicing, including expenses, as set forth above, under this SOW shall not exceed the Total Budget of $258,910.

Subcontractors
Pursuant to the terms outlined in Section 1 “Subcontracting” of the Agreement, the Grantee is permitted to use the below Subcontractor(s) in the performance of the services defined herein. Any additional Subcontractors not defined below must receive prior written approval from the TECH QSG Project Coordinators before proceeding with any work as defined in the Statement of Work.

The Parties agree that such requests for approval may be delivered via email. The Grantee represents and warrants to Energy Solutions that the Grantee and any approved Subcontractors will perform its Services in a professional manner and with the degree of skill and care that is consistent with current, good, and sound professional procedures and practices.

Approved Subcontractor(s):
● Community Action Partnership San Luis Obispo, Inc (CAPSLO) ● San Luis Obispo Climate Coalition (SLO Climate Coalition) ● Diversity Coalition of San Luis Obispo (Diversity Coalition) ● Artemisia Energy
Participating Trade Professionals
For any Project that results in an installation of Qualifying Equipment for a Qualifying Customer by a contractor hired by Quick Start Grant Recipient, Quick Start Grant Recipient will enroll in the TECH program and will require such contractor to enroll in the TECH program as a “Participating Trade Professional(s)” prior to working on the Project and installing any Qualifying Equipment. As a part of the enrollment process into the TEHC program, both parties shall sign and maintain the requirements set forth in the Trade Professional Participation Agreement, which shall be provided to Quick Start Grant Recipient by Energy Solutions.

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449 15th Street, Oakland, CA 94612 | 510.482.4420 | energy-solution.com 17

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COMMUNITY PARTNERSHIP AGREEMENT BETWEEN THE CITY OF SAN LUIS OBISPO AND THE COMMUNITY ACTION PARTNERSHIP OF SAN LUIS OBISPO COUNTY, INC.

This COMMUNITY PARTNERSHIP AGREEMENT, hereinafter referred to as the Agreement, is made and entered into in the City of San Luis Obispo on _______(DATE) by and between the CITY OF SAN LUIS OBISPO, a municipal corporation, hereinafter referred to as CITY, and COMMUNITY ACTION PARTNERSHIP OF SAN LUIS OBISPO, a California non-profit organization, hereinafter referred to as CAPSLO.

WITNESSETH:

WHEREAS, the CITY and CAPSLO desire to continue supporting residents benefiting from home energy efficiency and electrification upgrades; and
WHEREAS, Pillar 3 of the Climate Action Plan for Community Recovery includes Foundational Action

2.1.B Green Buildings which outlines the following action for the 2023-25 Financial Plan: Create an equity focused “Green and Healthy Buildings” service to educate the community and connect low-income building owners with resources, incentives, financing, and contractors; and
WHEREAS, The City has previously executed a Purchase Order to CAPSLO for implementation of Buildings Upgrade Prize funds for the installation of heat pump HVAC and heat pump water systems in manufactured homes; and
WHEREAS, CAPSLO is a named partner on the City’s TECH QuickStart Grant application which was selected for award; and
WHEREAS, the CITY desires to maintain a mutually beneficial relationship between the CITY and CAPSLO to advance climate goals; and
WHEREAS, the CITY has determined that partnerships with community organizations to provide shared services to the community are of great benefit and CAPSLO has expressed a willingness to continue these shared services, in partnership and in cooperation with the CITY; and WHEREAS, CAPSLO is uniquely qualified to provide the services contemplated under this Agreement due to its more than 30 years of experience delivering home repair and energy upgrade programs to low-income households in the community.

NOW THEREFORE, in consideration of their mutual promises, obligations and covenants hereinafter contained, the parties hereto agree as follows:

1. TERM. The term of this Agreement shall be for one (1) year from January 1, 2026 to January 1, 2027. The terms of this Agreement may be amended upon the mutual written agreement of the parties.

2. FINANCIAL MANAGEMENT. The CITY and CAPSLO agree to a series of terms as outlined below to share in the financial costs associated with home energy upgrades.

2.1 PAYMENT TO CAPSLO FOR GRANT ADMINISTRATION, PERMITTING AND INSTALLATION SERVICES. The CITY shall compensate CAPSLO in an amount not to exceed $193,910 over the one year duration of this Agreement.

A. CAPSLO shall invoice the CITY for these costs on a milestone basis reflective of the compensation timeline detailed in the TECH QuickStart Grant Agreement.

B. The CITY shall remit payment to CAPSLO on a milestone basis as TECH QuickStart funds are disbursed.

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3. ROLES AND RESPONSIBILITIES. The City of San Luis Obispo Sustainability Manager may authorize periodic modifications, within the scope of their financial and/or operational authority, to the Roles and Responsibilities as they may deem necessary or appropriate to the partnership between the CITY and CAPSLO.

Any amendment or modifications to the Roles and Responsibilities shall be upon mutual written consent of both parties.

A. SCOPE OF SERVICES
i. Both parties agree to collaborate on SLO Green and Healthy Homes program projects as outlined in the work plan for the Green Buildings Pillar of the Climate Action Plan. ii. The CITY Sustainability Manager and CAPSLO Staff will meet monthly during the one (1) year term to coordinate project administration and implementation.

B. CITY OBLIGATIONS
i. The CITY Sustainability Manager will set monthly reoccurring meetings with CAPSLO Staff during the one (1) year term.
ii. The CITY shall remit the payment to CAPSLO as outlined in the TECH Quick Start agreement during the one (1) year term.
iii. The CITY shall provide administrative support for grant management and reporting. iv.

C. CAPSLO OBLIGATIONS
i. CAPSLO will provide quotes and subsequent invoices for all permit acquisition, weatherization installation, and appliance upgrade services during the one (1) year agreement term, which will cover:
a. Energy audits
b. Weatherization (where necessary and feasible to reduce bill impacts) c. Electrical panel upgrades
d. Heat pump water heater installations
e. Heat pump HVAC installations
f. Heat pump washer/dryer installations
g. Induction cooktop installations
h. Backyard Solar + Battery installations
ii. CAPSLO will provide project updates during CITY and CAPSLO bi-weekly project management meetings.

4. COMPLETE AGREEMENT. This written Agreement, including all writings specifically incorporated herein by reference, shall constitute the complete agreement between the parties hereto. No oral agreement, understanding or representation not reduced to writing and specifically incorporated herein shall be of any force or effect, nor shall any such oral agreement, understanding or representation be binding upon the parties hereto.

5. AGREEMENT TERMINATION. Either party may terminate the Agreement for convenience provided that 30 days written notice is given. The Agreement may be terminated by either party for cause, provided that written notice has been given in the manner specified herein stating the reasons for the intended termination and providing the other party at least 10 days to cure any alleged breach. If the party receiving notice fails or refuses to cure the alleged breach within 10 days, or to make substantial progress toward cure to the satisfaction of the party demanding cure, this Agreement may be terminated 10 days after receipt of the notice as specified herein.

6. AGREEMENT AMENDMENTS. Any amendment, modification or variation from the terms of this Agreement shall be presented in writing by the City’s Sustainability Manager and CAPSLO Energy Program Manager and shall be effective only upon final approval by the City Manager or their designee, except as otherwise stated in Section 3 of this Agreement

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amount not less than $1,000,000 per occurrence, $2,000,000 general aggregate, for bodily injury, personal injury, and property damage, including without limitation, blanket contractual liability.

B. Each party agrees to provide a minimum liability and property damage insurance coverage of one million dollars ($1,000,000).

C. Each party shall maintain worker’s compensation insurance at a level that is consistent with state law requirements.

8. HOLD HARMLESS AND INDEMNIFICATION
A. CITY agrees to defend, indemnify, protect and hold CAPSLO and its agents, officers and employees harmless from and against any and all claims asserted or liability established for damages or injuries to any person or property, including injury to CAPSLO’s employees, agents, officers or volunteers, which arise from or are connected with or are caused or claimed to be caused by the acts or omissions of the CITY, and its agents, officers, employees or volunteers, in performing its responsibilities hereunder, and all expenses of investigating and defending against same; provided, however, that the CITY duty to indemnify and hold harmless shall not include any claims or liability arising from the negligence or willful misconduct of CAPSLO, its agents, officers, employees or volunteers.

B. CAPSLO agrees to defend, indemnify, protect and hold the CITY and its agents, officers and employees harmless from and against any and all claims asserted or liability established for damages or injuries to any person or property, including injury to the CITY employees, agents, officers or volunteers, which arise from or are connected with or are caused or claimed to be caused by the acts or omissions of CAPSLO, and its agents, officers, employees or volunteers, in performing its responsibilities hereunder, and all expenses of investigating and defending against same; provided, however, that CAPSLO’s duty to indemnify and hold harmless shall not include any claims or liability arising from the negligence or willful misconduct of the CITY, its agents, officers, employees or volunteers

9. NOTICE. All written notices to the parties hereto shall be sent by USPS Mail, postage prepaid by registered or certified mail addressed as follows:

CITY: City Manager
City of San Luis Obispo
990 Palm St.

San Luis Obispo, CA 93401
CAPSLO: Chief Executive Officer
Community Action Partnership of San Luis Obispo County, Inc. 1010 Broad Street
San Luis Obispo, CA 93401

11. AUTHORITY TO EXECUTE AGREEMENT. Both CITY and CAPSLO do covenant that each individual executing this agreement on behalf of each party is a person duly authorized and empowered to execute Agreements for such party.

IN WITNESS WHEREOF, the parties hereto have caused this instrument to be executed the day and year first above written.

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ATTEST: CITY OF SAN LUIS OBISPO
________________________________ By:________________________________ Teresa Purrington Erica Stewart
City Clerk
APPROVED AS TO FORM: COMMUNITY ACTION PARTNERHSIP SAN
LUIS OBISPO COUNTY, INC.

By:_________________________________
J. Christine Dietrick Elizabeth Steinberg
City Attorney Chief Executive Officer

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

DIVERSITY COALITION OF SAN LUIS OPISPO COUNTY
This COMMUNITY PARTNERSHIP AGREEMENT BETWEEN THE CITY OF SAN LUIS OBISPO AND THE DIVERSITY COALITION OF SAN LUIS OBISPO COUNTY, hereinafter referred to as the Agreement, is made and entered into in the City of San Luis Obispo on _______(DATE) by and between the CITY OF SAN LUIS OBISPO, a municipal corporation, hereinafter referred to as CITY, and DIVERSITY COALITION OF SAN LUIS OBISPO COUNTY, a California non-profit organization, hereinafter referred to as DIVERSITY COALITION.

WITNESSETH:

WHEREAS, the CITY and DIVERSITY COALITION desire to continue supporting residents benefit from home energy efficiency and electrification upgrades; and WHEREAS, Pillar 3 of the Climate Action Plan for Community Recovery includes Foundational Action

2.1.B Green Buildings which outlines the following action for the 2023-25 Financial Plan: Create an equity focused “Green and Healthy Buildings” service to educate the community and connect low-income building owners with resources, incentives, financing, and contractors; and
WHEREAS, The City has previously executed a Purchase Order to Diversity Coalition for administrative support, community outreach, engagement, and qualitative data collection; and WHEREAS, DIVERSITY COALITION is a named partner on the CITY’s TECH QuickStart Grant application which was selected for award; and,
WHEREAS, the CITY desires to maintain a mutually beneficial relationship between the CITY and DIVERSITY COALITION to advance climate and equity goals; and WHEREAS, the CITY has determined that partnerships with community organizations to provide shared services to the community are of great benefit and DIVERSITY COALITION has expressed a willingness to continue these shared services, in partnership and in cooperation with the CITY; WHEREAS, DIVERSITY COALITION is uniquely qualified to provide the services contemplated under this Agreement due to its 14 years of experience building relationships with BIPOC, immigrant, and low-income communities through culturally relevant outreach and engagement and prior participation of the 2024 TECH QuickStart Grant cycle to pilot the Electrification for All community education campaign; NOW THEREFORE, in consideration of their mutual promises, obligations and covenants hereinafter contained, the parties hereto agree as follows:

1. TERM. The term of this Agreement shall be for one (1) year from January 1, 2026 to January 1, 2027. The terms of this Agreement may be amended upon the mutual written agreement of the parties.

2. FINANCIAL MANAGEMENT. The CITY and DIVERSITY COALITION agree to a series of terms as outlined below to share in the financial costs associated with equitable program design and outreach.

A. PAYMENT TO DIVERSITY COALITION FOR PROGRAM DESIGN AND OUTREACH STRATEGY AND IMPLEMENTATION. The CITY shall compensate DIVERSITY COALITION up to $35,000 over the one year duration of this Agreement.

A. DIVERSITY COALITION shall invoice the CITY for these costs on a milestone basis as reflected in the TECH QuickStart Grant Agreement.

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B. The CITY shall remit payment annually to DIVERSITY COALITION on a milestone basis as reflected in the TECH QuickStart Grant Agreement.

C. ROLES AND RESPONSIBILITIES. The City of San Luis Obispo Sustainability Manager may authorize periodic modifications, within the scope of their financial and/or operational authority, to the Roles and Responsibilities as they may deem necessary or appropriate to the partnership between the CITY and DIVERSITY COALITION. Any written amendment or modifications to the Roles and Responsibilities shall be upon mutual consent of both parties.

A. SCOPE OF SERVICES
i. Both parties agree to collaborate on SLO Green and Healthy Homes program projects as outlined in the obligations below.
ii. The CITY Sustainability Manager and DIVERSITY COALITION Staff will meet monthly during the one (1) year term to coordinate project administration and implementation.

B. CITY OBLIGATIONS
i. The CITY Sustainability Manager will set monthly reoccurring meetings with DIVERSITY COALITION Staff during the one (1) year term.
ii. The CITY shall remit payment to the DIVERSITY COALITION during the one (1) year term as described in the TECH Quick Start grant agreement.
iii. The CITY shall provide administrative support for grant management and reporting.

C. DIVERSITY COALITION OBLIGATIONS
i. DIVERSITY COALITION will provide project updates during CITY and DIVERSITY COALITION monthly meetings.
ii. DIVERSITY COALITION will assist with equitable program design, and outreach strategy and implementation during the one (1) year agreement term; work shall include:
a. Planning and delivering outreach events in 3 local manufactured housing communities.
b. Developing outreach, education, and promotional materials to increase project visibility and community awareness.
c. Training SLO Climate Coalition staff in equity-centered energy advising services. d. Administrative responsibilities related to grant reporting and achieving of milestones.

3. COMPLETE AGREEMENT. This written Agreement, including all writings specifically incorporated herein by reference, shall constitute the complete agreement between the parties hereto. No oral agreement, understanding or representation not reduced to writing and specifically incorporated herein shall be of any force or effect, nor shall any such oral agreement, understanding or representation be binding upon the parties hereto.

4. AGREEMENT TERMINATION. Either party may terminate the Agreement for convenience provided that 30 days written notice is given. The Agreement may be terminated by either party for cause, provided that written notice has been given in the manner specified herein stating the reasons for the intended termination and providing the other party at least 10 days to cure any alleged breach. If the party receiving notice fails or refuses to cure the alleged breach within 10 days, or to make substantial progress toward cure to the satisfaction of the party demanding cure, this Agreement may be terminated 10 days after receipt of the notice as specified herein.

5. AGREEMENT AMENDMENTS. Any amendment, modification or variation from the terms of this Agreement shall be presented in writing by the City’s Sustainability Manager and Diversity Coalition Executive Director and shall be effective only upon final approval by the City Manager or their designee.

6. INSURANCE AND LIABILITY
A. Each party to this Agreement shall make the other party, its officers, agents, employees and volunteers as separately additionally insured through a CG 20 26 or equivalent, blanket endorsement or section of the policy no later than October 1 of each year. Each party agrees to provide a commercial general liability insurance with coverage at least as broad as Insurance Services Office form CG 00-01, in an amount not less than $1,000,000 per occurrence, $2,000,000 general aggregate, for bodily injury, personal injury, and property damage, including without limitation, blanket contractual liability.

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B. Each party agrees to provide a minimum liability and property damage insurance coverage of one million dollars ($1,000,000).

C. Each party shall maintain worker’s compensation insurance at a level that is consistent with state law requirements.

7. HOLD HARMLESS AND INDEMNIFICATION
A. CITY agrees to defend, indemnify, protect and hold DIVERSITY COALITION and its agents, officers and employees harmless from and against any and all claims asserted or liability established for damages or injuries to any person or property, including injury to DIVERSITY COALITION employees, agents, officers or volunteers, which arise from or are connected with or are caused or claimed to be caused by the acts or omissions of the CITY, and its agents, officers, employees or volunteers, in performing its responsibilities hereunder, and all expenses of investigating and defending against same; provided, however, that the CITY duty to indemnify and hold harmless shall not include any claims or liability arising from the negligence or willful misconduct of DIVERSITY COALITION, its agents, officers, employees or volunteers.

B. DIVERSITY COALITION agrees to defend, indemnify, protect and hold the CITY and its agents, officers and employees harmless from and against any and all claims asserted or liability established for damages or injuries to any person or property, including injury to the CITY employees, agents, officers or volunteers, which arise from or are connected with or are caused or claimed to be caused by the acts or omissions of DIVERSITY COALITION, and its agents, officers, employees or volunteers, in performing its responsibilities hereunder, and all expenses of investigating and defending against same; provided, however, that DIVERSITY COALITION duty to indemnify and hold harmless shall not include any claims or liability arising from the negligence or willful misconduct of the CITY, its agents, officers, employees or volunteers

8. NOTICE. All written notices to the parties hereto shall be sent by USPS Mail, postage prepaid by registered or certified mail addressed as follows:

CITY: City Manager
City of San Luis Obispo
990 Palm St.

San Luis Obispo, CA 93401
DIVERSITY COALITION: Executive Director
Diversity Coalition of San Luis Obispo County
P.O. Box 376
Arroyo Grande, CA 93421

11. AUTHORITY TO EXECUTE AGREEMENT. Both CITY and DIVERSITY COALITION do covenant that each individual executing this agreement on behalf of each party is a person duly authorized and empowered to execute Agreements for such party.

IN WITNESS WHEREOF, the parties hereto have caused this instrument to be executed the day and year first above written.

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ATTEST: CITY OF SAN LUIS OBISPO
________________________________ By:________________________________ Teresa Purrington Erica Stewart
City Clerk
APPROVED AS TO FORM: DIVERSITY COALITION OF SAN LUIS OBISPO COUNTY:.

By:_________________________________
J. Christine Dietrick Rita Casaverde
City Attorney Executive Director

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

SAN LUIS OBISPO CLIMATE COALITION
This COMMUNITY PARTNERSHIP AGREEMENT BETWEEN THE CITY OF SAN LUIS OBISPO AND THE SAN LUIS OBISPO CLIMATE COALITION, hereinafter referred to as the Agreement, is made and entered into in the City of San Luis Obispo on _______(DATE) by and between the CITY OF SAN LUIS OBISPO, a municipal corporation, hereinafter referred to as CITY, and SAN LUIS OBISPO CLIMATE COALITION, a California non-profit organization, hereinafter referred to as SLO CLIMATE COALITION.

WITNESSETH
WHEREAS, the CITY and CLIMATE COALITION desire to continue supporting residents benefit from home energy efficiency and electrification upgrades; and WHEREAS, Pillar 3 of the Climate Action Plan for Community Recovery includes Foundational Action

2.1.B Green Buildings which outlines the following action for the 2023-25 Financial Plan: Create an equity focused “Green and Healthy Buildings” service to educate the community and connect low-income building owners with resources, incentives, financing, and contractors; and
WHERAS, the CITY has remitted payment to SLO Climate Coalition as funds have allowed consistent with the standing Memorandum of Agreement for services related to hosting National Drive Electric Week and Earth Month events; and
WHEREAS, SLO CLIMATE COALITION is a named partner on the CITY’s TECH QuickStart Grant application which was selected for award to offer their Home Energy Advising service to participating residents of manufactured housing; and,
WHEREAS, the CITY desires to maintain a mutually beneficial relationship between the CITY and SLO CLIMATE COALITION to advance climate and equity goals; and WHEREAS, the CITY has determined that partnerships with community organizations to provide shared services to the community are of great benefit and SLO CLIMATE COALITION has expressed a willingness to continue these shared services, in partnership and in cooperation with the CITY; WHEREAS, CLIMATE COALITION is uniquely qualified to provide the services contemplated under this Agreement due to its innovative Home Energy Advising service and years of experience with community engagement and climate education.

NOW THEREFORE, in consideration of their mutual promises, obligations and covenants hereinafter contained, the parties hereto agree as follows:

1. TERM. The term of this Agreement shall be for one (1) year from January 1, 2026 to January 1, 2027. The terms of this Agreement may be amended upon the mutual written agreement of the parties.

2. FINANCIAL MANAGEMENT. The CITY and SLO CLIMATE COALITION agree to a series of terms as outlined below to share in the financial costs associated with home energy advising service delivery expansion.

A. PAYMENT TO CLIMATE COALITION FOR HOME ENERGY ADVISING SERVICE DELIVERY EXPANSION. The CITY shall compensate SLO CLIMATE COALITION up to $25,000 over the one year duration of this Agreement.

A. CLIMATE COALITION shall invoice the CITY for these costs on a milestone basis as reflected in the TECH QuickStart Grant Agreement.

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B. The CITY shall remit payment annually to SLO CLIMATE COALITION on a milestone basis as reflected in the TECH QuickStart Grant Agreement.

A. SCOPE OF SERVICES
i. Both parties agree to collaborate on SLO Green and Healthy Homes program projects, as outlined in Work Plan for the implementation of the Green Buildings Pillar of the Climate Action Plan.
ii. The CITY Sustainability Manager and SLO CLIMATE COALITION Staff will meet monthly during the one (1) year term to coordinate project administration and implementation.

B. CITY OBLIGATIONS
i. The CITY Sustainability Manager will set monthly reoccurring meetings with CLIMATE COALITION Staff during the one (1) year term.
ii. The CITY shall provide administrative support for grant management and reporting.

C. SLO CLIMATE COALITION OBLIGATIONS
i. SLO CLIMATE COALITION will provide Home Energy Advising service delivery for SLO Green and Healthy Homes projects and expand service as required during the (1) year agreement term.

6. AGREEMENT AMENDMENTS. Any amendment, modification or variation from the terms of this Agreement shall be presented in writing by the City’s Sustainability Manager and Climate Coalition Executive Director and shall be effective only upon final approval by the City Manager or their designee.

7. INSURANCE AND LIABILITY
A. Each party to this Agreement shall make the other party, its officers, agents, employees and volunteers as separately additionally insured through a CG 20 26 or equivalent, blanket endorsement or section of the policy no later than October 1 of each year. Each party agrees to provide a commercial general liability insurance with coverage at least as broad as Insurance Services Office form CG 00-01, in an amount not less than $1,000,000 per occurrence, $2,000,000 general aggregate, for bodily injury, personal injury, and property damage, including without limitation, blanket contractual liability.

B. Each party agrees to provide a minimum liability and property damage insurance coverage of one million dollars ($1,000,000).

C. Each party shall maintain worker’s compensation insurance at a level that is consistent with state law requirements.

8. HOLD HARMLESS AND INDEMNIFICATION
A. CITY agrees to defend, indemnify, protect and hold CLIMATE COALITION and its agents, officers and employees harmless from and against any and all claims asserted or liability established for damages or injuries to any person or property, including injury to CLIMATE COALITION employees, agents,

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officers or volunteers, which arise from or are connected with or are caused or claimed to be caused by the acts or omissions of the CITY, and its agents, officers, employees or volunteers, in performing its responsibilities hereunder, and all expenses of investigating and defending against same; provided, however, that the CITY duty to indemnify and hold harmless shall not include any claims or liability arising from the negligence or willful misconduct of CLIMATE COALITION, its agents, officers, employees or volunteers.

B. CLIMATE COALITION agrees to defend, indemnify, protect and hold the CITY and its agents, officers and employees harmless from and against any and all claims asserted or liability established for damages or injuries to any person or property, including injury to the CITY employees, agents, officers or volunteers, which arise from or are connected with or are caused or claimed to be caused by the acts or omissions of CLIMATE COALITION, and its agents, officers, employees or volunteers, in performing its responsibilities hereunder, and all expenses of investigating and defending against same; provided, however, that CLIMATE COALITION duty to indemnify and hold harmless shall not include any claims or liability arising from the negligence or willful misconduct of the CITY, its agents, officers, employees or volunteers

9. NOTICE. All written notices to the parties hereto shall be sent by USPS Mail, postage prepaid by registered or certified mail addressed as follows:

CITY: City Manager
City of San Luis Obispo
990 Palm St.

San Luis Obispo, CA 93401
CLIMATE COALITION: Executive Director
San Luis Obispo Climate Coalition
2950 Broad St., Suite 1079,
San Luis Obispo, CA 93401

11. AUTHORITY TO EXECUTE AGREEMENT. Both CITY and CLIMATE COALITION do covenant that each individual executing this agreement on behalf of each party is a person duly authorized and empowered to execute Agreements for such party.

IN WITNESS WHEREOF, the parties hereto have caused this instrument to be executed the day and year first above written.

ATTEST: CITY OF SAN LUIS OBISPO
________________________________ By:________________________________ Teresa Purrington Erica Stewart
City Clerk
APPROVED AS TO FORM: SLO CLIMATE COALITION:

By:_________________________________

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J. Christine Dietrick Laura Albers
City Attorney Executive Director

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City of San Luis Obispo, Council Memorandum
City of San Luis Obispo
Council Agenda Correspondence
DATE: February 3, 2026
TO: Mayor and Council
FROM: Timmi Tway, Community Development Director
Prepared By: Walter Gault, City Arborist
SUBJECT: ITEM 5g - REVIEW OF A REQUEST TO REMOVE ONE TREE

ASSOCIATED WITH THE SLO REP THEATRE PROJECT LOCATED AT
614 MONTEREY STREET
Staff received the following questions regarding the request to remove one (1) 48-inch DBH Quercus agrifolia (Coast Live Oak) at 614 Monterey Street, with staff’s responses shown in italics.
1) Why wasn’t the extent of the Oak’s root system disclosed earlier during the design phase?
At the time this project was reviewed through the planning entitlement phase, an arborist report was not required for projects. Previously, best practice considered the canopy dripline to be the extent of a tree root system, and this is what was shown on project plans. Current best practice states that the critical root zone often extends well beyond the dripline. The City now requires an arborist report with detailed information regarding root zones during the entitlement phase. The project plans indicated the tree was to remain, and this was shown on the building permit application. Once construction of the adjacent parking structure began and detailed building plans for the SLO REP Theatre were submitted for review, it became apparent that the roots occupied a greater area than the canopy dripline.
2) What is the age of the tree?
The arborist report, prepared by Rodney Thurman of Heritage Tree Arboricultural Consulting, Inc., estimated that the tree age likely ranges from 65 to 96 years old.

To more accurately determine the age of trees, an increment borer would need to be used to extract a small core sample to count growth rings.

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Item 5g SLO Rep Theatre Tree Removal Request Page 2
3) Can the oak tree be transplanted?
An Oak tree of this size, age and structure would not be a candidate for a successful transplant. Moving a tree of this size would be costly, logistically difficult and would likely not result in the long term survival of the tree. 4) Is it possible to leave the tree in place to see if it survives, then replace later if it does not?
Yes. The tree can remain and could be replaced later if it does not survive.

However, based on the tree’s known root structure and the existing and proposed infrastructure required for the project, the likelihood of survival is low.

The consulting arborist determined that the tree would likely not survive unless the project was redesigned to more appropriately accommodate the tree because of the loss of canopy combined with impacts to the critical root zone. The proposed theatre could be redesigned to reduce damage to the critical root zone.

This would be a fairly significant redesign that would require new architectural and engineering plans, as well as additional review by the City. According to the project representatives, this would result in a delay to the project schedule, postpone the final completion and opening of the theatre, and could reduce the size of the theatre to the extent that it no longer meets project objectives and financial projections based on seating numbers and theatre offerings.

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Item 5g SLO Rep Theatre Tree Removal Request Page 3
5) What is the estimated Diameter at Breast Height (DBH) and height for the replacement tree in a 48-inch or 60-inch box?
Replacement trees in a 48-inch or 60-inch box are typically 8-10 feet tall with a 10-12 foot wide canopy. DBH at this size is not typically available from the nursery as they are multi-trunk specimens (See Figure 1 below). Erythrina affra (Mandela Coral tree) is expected to reach a height of at least 40 feet (See Figure 2).

Figure 1: 60-inch box Erythrina affra (Mandela Coral)

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Item 5g SLO Rep Theatre Tree Removal Request Page 4
6) What is the estimated growth rate of the replacement tree? Mandela Coral trees (Erythrina affra) grow quickly at an average of 3 feet of growth each year.
7) Where are the replacement trees being planted and what species are proposed to be planted?
The applicant is proposing to replant one (1) 60-inch box Mandela Coral (Erythrina afra) tree onsite in the same area of the existing oak tree (see Figure 3) and four (4) 24-inch box trees from the Approved City Tree List off-site along Nipomo Street (see Figure 4). Trees that have been considered for off-site planting include Chitalpa x tashkentensis ‘Morning Cloud (see Figure 5) and Cassia leptophylla (Gold Medallion) (Figure 6).

Figure 2: Large, mature specimen Erythrina affra
(Mandela Coral) tree located in a southern
California park

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Item 5g SLO Rep Theatre Tree Removal Request Page 5
Figure 3: The dashed black line outlines the 20 foot x 20 foot area on the Landscape Plan where SLO Rep proposes to replant one (1) 60-inch box Mandela Coral (Erythrina afra) tree.

SLO REP Theatre
Figure 3: Four, 24-inch box trees from the Approved City Tree List are proposed to be planted off-site along Nipomo Street.

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Item 5g SLO Rep Theatre Tree Removal Request Page 6
Figure 5: Chitalpa x tashkentensis ‘Morning Cloud
Figure 6: Cassia leptophylla (Gold Medallion)

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Item 5g
Department: Community Development
Cost Center: 4003
For Agenda of: 2/3/2026
Placement: Consent
Estimated Time: N/A
FROM: Timmi Tway, Community Development Director
Prepared By: Walter Gault, Urban Forestry Program Coordinator/ City Arborist SUBJECT: REVIEW OF A REQUEST TO REMOVE ONE TREE ASSOCIATED WITH THE SLO REP THEATRE PROJECT LOCATED AT 614 MONTEREY
STREET

RECOMMENDATION
Adopt a Draft Resolution entitled, “Resolution of the City Council of the City of San Luis Obispo, California approving the removal of one (1) Coast Live Oak Tree at 614 Monterey Street and subsequent replanting of one (1) tree on-site and four (4) trees off-site with an Addendum to the Certified Environmental Impact Report.” (Attachment A)

POLICY CONTEXT
In accordance with San Luis Obispo Municipal Code Section (SLOMC) 12.24.090(F)(5), during property development or construction, any tree proposed for removal that was not previously identified and approved for removal by the authorized approving authority must receive approval from the same authority prior to its removal.

On November 12, 2019, the City Council reviewed and approved a project proposed by SLO REP Theatre to build and operate a new performing arts facility located at 614 Monterey Street. The plans submitted as part of the planning application indicated that the existing Coast Live Oak (Quercus agrifolia) on the site would be retained during construction. Subsequently, it has been determined that the tree must be removed to safely accommodate the project and streetscape (as further described herein), and therefore, the tree removal request requires the review and approval of the City Council.

DISCUSSION
Background
Beginning in the early 1990s, the City Council gave direction to pursue the plans for a new, expanded San Luis Obispo Little Theatre (now known as the San Luis Obispo Repertory Theatre, or “SLO REP”) location near the corner of Monterey and Broad Streets. On March 7, 2000, Council conceptually approved this new location; see Council Agenda Report. In 2003, the City Council identified construction of the Palm Nipomo Parking Structure (now named the Cultural Arts District Parking structure or “CADPS”) as a Major City Goal work program item. In 2017, the Downtown Concept Plan (“DTCP”)

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showed the site plans for both the new theatre and the new parking structure co-located together on the same City property (see Figure 3.4). SLO REP moved forward with designing a new performing arts facility and a final design was reviewed and approved by the City Council on November 12, 2019. The landscape plan approved as part of the final design showed that the Coast Live Oak (Quercus agrifolia) tree located at 614 Monterey was to be retained and protected in front of the new performing arts facility.

Although the DTCP and the approved SLO REP site plans both show the oak tree and the area around the drip line of the tree as being retained, at that time it was not known that the root structure of the tree extends far beyond the drip line throughout the SLO REP site; furthermore, the root structure has already been impacted with the installation of the frontage improvements along Monterey Street as part of the CADPS that are intended to benefit both SLO REP and the CADPS.

Tree Removal Request
On August 3, 2025, building plans were submitted for review for the new SLO Rep Theatre. As part of the building plans, an arborist report (see Attachment B) was included that demonstrates that the existing 48-inch diameter at breast height (DBH) Coast Live Oak (Quercus agrifolia) is incompatible with the approved design of the theatre and cannot be protected and retained in place. As such, SLO REP, the applicant, has requested (Attachment C) to remove one (1) existing tree 48-inch DBH Quercus agrifolia (Coast Live Oak) and replant one (1) 60-inch box Mandela Coral (Erythrina afra) tree onsite in the same area of the existing oak tree (Attachment D, Onsite Landscape Plan) and four (4) 24-inch box trees from the Approved City Tree List off-site along Nipomo Street (Attachment E, Offsite Replanting Plan) to accommodate the construction of the approved SLO REP Theatre design. The replacement ratio exceeds the one for one requirement for compensatory tree planting (12.24.090.J).

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Project Analysis
As noted above, the applicant is requesting to remove one (1) existing 48-inch DBH Quercus agrifolia (Coast Live Oak) in order to construct the new SLO Rep Theatre. This construction of the new theater will require approximately 35 percent of the tree’s canopy to be removed (see Figure 2), and it will impact at least 86 percent of the critical root zone (CRZ)1(see Attachment B, page 9). The provided Arborist Report (Attachment B) describes how the impacts of the proposed construction will affect the tree. Specifically, the Arborist Report highlights the following:
 The Quercus agrifolia has been determined to be in fair condition2. Condition ratings are based on the health, structure and presence of disease or insects.

Condition ratings have 7 possible outcomes from Dead to Excellent. Fair is in the middle. Fair typically indicates that there may have been past limb failures, some pest and structural defects, deadwood is present and there is minor to moderate drought stress present. In this condition, the tree is not as strong as it could be and it is likely not as able to withstand and recover from the proposed impacts to its canopy and root system than a tree exhibiting better health characteristics.  The proposed live canopy removal exceeds the City’s Municipal Code maximum allowance of 1/3 (or approximately 30 percent) of the canopy (12.24.150.A(1)) and exceeds the generally accepted maximum of 25 percent.
 At a minimum, it is estimated that 86 percent of the CRZ will be impacted. The arborist report notes that there is no standard or best management practice threshold for CRZ impact, but practitioners commonly target impacting 25 percent or less of the CRZ.
 The Arborist Report concludes that, given the combination of canopy loss and the impacts to the CRZ, it is unlikely that the oak tree will survive and thrive following the construction of the performing arts facility.

When the preservation of a large tree is seriously considered during proposed construction impacts, pathways for the tree recovery should be identified. Staff see little opportunity for recovery from impacts and long-term survival, because all four sides of the tree’s root zone are impacted and the tree’s ability to heal has been reduced.

1 The Critical Root Zone (CRZ) is the area around a tree where the minimum volume of roots considered critical to the structural stability or health of the tree are located.

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Based on the information provided by the Arborist Report and consistency with the General Plan and the Municipal Code, staff supports the removal of the Quercus agrifolia because, as noted the tree is in fair health, and based on this assessment, the tree has a reduced capacity to adjust to construction impacts and recover. Given the estimated loss of canopy and impact to the CRZ, it is unlikely that the tree will survive construction of the approved performing arts facility.

Consistency with the Municipal Code
The City’s Tree Ordinance (Municipal Code Chapter 12.24) was adopted with the purpose of establishing a comprehensive program for installing, maintaining, and preserving trees within the City. Municipal Code Section 12.24.090(G) provides the criteria for tree removals within the City. As proposed, the requested tree removal is consistent with the tree removal criteria because:
 The tree is not a heritage tree and per Municipal Code Section 12.24.090.G(7), it has a lower preservation priority.
 The proposed replanting plan exceeds the required minimum of 1:1 on-site or 2:1 off-site per Municipal Code Section 12.24.090.G(6). One (1) tree is proposed to be replaced in a 20’ x 20’ area3in the same location (Attachment D), and four (4) additional trees are proposed off-site in the parkway at Palm and Nipomo Streets (Attachment E).

Staff supports this proposed tree removal because the replanting plan is a robust attempt to compensate for the loss of a large native tree with climate-adapted species that are well-suited to the urban environment and available space.

3 A 20-foot square area will remain protected from construction impacts and development so that the replacement tree has the best opportunity to establish. Street trees are typically planted in a 5’ x 5’ tree well. A 20’ x 20’ space is a large planting area for an urban infill project and will help a large tree reach its potential.

Figure 1: 35% Canopy reduction required.

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Consistency with General Plan
The City of San Luis Obispo General Plan (2015) integrates cultural arts across Land Use, Economic Vitality, Parks and Recreation, Historic Preservation and Downtown policies. The General Plan provides clear support for cultural arts facilities, particularly when they:
 Are located in Downtown or mixed-use areas
 Contribute cultural vitality, tourism, and economic activity  Provide public gathering space and civic benefit
The General Plan does not prohibit tree removal outright, but it does establish a strong presumption towards retention, especially for large or mature trees. Staff finds consistency with the tree removal request because the compensatory replanting plan substantially exceeds the minimum requirements and the Arborist Report documents the likelihood that the tree will not survive following completion of construction of the project.

Previous Council or Advisory Body Action
 July 17, 2018: Council adopted and certified the Environmental Impact Report (EIR) for the project.
 December 4, 2018: Council authorized the Mayor to sign an Exclusive Negotiating Agreement (ENA) with the San Luis Obispo Repertory Theater (SLO REP) in a final form acceptable to the City Attorney for long-term use of a portion of the Palm/Nipomo Parking Structure site to construct and operate a new theater, based on parameters set forth by the City Council.
 November 12, 2019: Council reviewed and approved the design of the new SLO Rep Theatre
 December 10, 2024: Council reviewed and adopted a resolution with findings to support the execution of a lease agreement with the San Luis Obispo Repertory Theater.
 April 15, 2025: Council reviewed and approved the removal of an Afrocarpus falcatus tree on the site associated with the construction of the Cultural Arts District Parking Structure project, and authorized the City Arborist to develop a Tree Replanting Plan to offset the impacts to the City’s Urban Forest in accordance with the Cultural Arts District Parking Structure Tree Protection Plan.

Public Engagement
The proposed tree removal was noticed in accordance with Municipal Code Section

12.24.090.I which requires that a sign be posted at the site in a prominent location visible from the public right-of-way for at least five (5) days prior to a decision.

CONCURRENCE
This recommendation has been reviewed by the City’s Arborist, Sustainability & Natural Resources Official, and the Community Development Director who recommend the tree be removed and replaced at a ratio that will offset the impacts to the City’s Urban Forest.

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ENVIRONMENTAL REVIEW
On July 17, 2018, the City Council certified the Final Environmental Impact Report (FEIR State Clearinghouse Number 2017051011), adopted a Mitigation Monitoring and Reporting Program, adopted the following CEQA Findings and Mitigation Measures related to the Palm Nipomo Parking Structure Project, and made a Statement of Overriding Considerations. The adopted FEIR identified that the project will result in significant and unavoidable impacts to: 1) Aesthetics – The scale and massing of the parking structure interrupting the transition from the Dana Street grouping of historic resources from the remainder of the Downtown Historic District to the east; 2) Cultural and Tribal Cultural Resources – Removal of two historic resources from the project site; and 3) Noise – Short- term construction noise. The FEIR also found that there would be significant impacts that can be mitigated to less than significant in the categories of aesthetics, cultural and tribal cultural resources, transportation, air quality, biological resources, geology and soils, and hazardous materials. Some impacts related to aesthetics, cultural resources, noise, and transportation were found to be less than significant.

An addendum to the previously certified EIR has been prepared in accordance with CEQA Section 15164(a) that states, “The lead agency or responsible agency shall prepare an addendum to a previously certified EIR if some changes or additions are necessary but none of the conditions described in Section 15162 calling for preparation of a subsequent EIR have occurred” (see Attachment F, Addendum to the Final EIR). This Addendum incorporates the additional analysis for inclusion in the environmental record. The updated analysis does not materially change the findings and conclusions of the Final EIR, making a Subsequent EIR unnecessary pursuant to Section 15162 of the State CEQA Guidelines.

The oak tree has not been identified as a ‘significant tree’ and is therefore not subject to the requirements set forth in the City’s Conservation and Open Space Element. The change in the project to remove the oak tree would not alter any of the impacts as compared to the approved project covered in the Final EIR and would not result in new or significantly increased environmental impacts. Thus, the potential biological resources impacts associated with the tree removal would be less than significant.

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

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Fiscal Analysis:

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

Total N/A
There are no fiscal impacts related to the proposed tree removal. All costs associated with any removal and subsequent replanting of new trees will be covered by the applicant.

ALTERNATIVES

1. Continue the request. An action to continue the item should include a list of additional information or analysis required to make a decision. Should Council pursue this option, the applicant’s project may be delayed. The applicant has specifically timed the beginning of construction on the theatre to start in spring 2026 once construction of the CADPS is complete and in alignment with the lease agreement with the City.

2. Council could deny the request to remove the tree. Should Council pursue this option, the applicant’s project would be significantly impacted. The existing tree’s critical root zone (CRZ) substantially conflicts with the planned location and construction of the approved SLO REP Theatre and would require extensive redesign.

This redesign would result in an extensive delay to the project schedule, postpone the final completion and opening of the theatre, and reduce the size the theatre to the extent that it no longer meets project objectives and financial projections based on seating numbers and theatre offerings.

It is also important to note that if the tree removal request is denied, the tree may still need to be removed at a later date due to the decline in health from the partial impacts to the CRZ that have already occurred with the installation of the frontage improvements along Monterey Street intended to benefit both SLO REP and the CADPS and the larger Cultural Arts District streetscape. While the tree is not currently an immediate hazard, the extent of the proposed impacts raises concerns about the tree’s long-term health and its ability to sustain itself.

ATTACHMENTS
A - Draft Council Resolution approving the removal of one oak tree (TREE-0827-2025) B - SLO REP Arborist Report
C - Tree Removal Application 614 Monterey
D - Onsite Landscape Plan
E - Offsite Replanting Plan
F - Addendum to the Final EIR

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RESOLUTION NO. _____ (2026 SERIES)

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS OBISPO, CALIFORNIA APPROVING THE REMOVAL OF ONE (1)
COAST LIVE OAK TREE AT 614 MONTEREY AND SUBSQUENT
REPLANTING OF ONE (1) TREE ON-SITE AND FOUR (4) TREES

OFFSITE WITH AN ADDENDUM TO THE CERTIFIED

ENVIRONMENTAL IMPACT REPORT AS REPRESENTED IN THE

COUNCIL AGENDA REPORT AND ATTACHMENTS DATED
FEBRUARY 3, 2026 (TREE-0827-2025).

WHEREAS, the City Council of the City of San Luis Obispo conducted a public hearing in the Council Chamber of City Hall, 990 Palm Street, San Luis Obispo, California, on November 12, 2019, for the purpose of approving the architectural design of a new performing arts facility and a new parking structure, a deviation in the height and Floor Area Ratio (F.A.R.) for the parking structure, use permits to allow the SLO Rep Theatre and a parking structure within the Downtown Commercial Zone and adopt a General Plan Amendment changing the project site from Office and medium-high density residential to General Retail; and
WHEREAS, San Luis Obispo Repertory Theatre, the applicant, has requested to remove one (1) existing 48-inch DBH Quercus agrifolia (Coast Live Oak) tree and replant one (1) 60-inch box tree on-site in the same area of the existing oak tree and four (4) 24- inch box trees off-site to accommodate the construction of the approved SLO REP Theatre; and
WHEREAS, pursuant to San Luis Obispo Municipal Code Section 12.24.090.F(5), the City Council is the appropriate approval authority to review the requested removal of the Coast Live Oak tree; and
WHEREAS, the City Council of the City of San Luis Obispo has duly considered all evidence, including recommendations by staff; and
WHEREAS, notices of said public hearings were made at the time and in the manner required by law; and
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of San Luis Obispo as follows:

SECTION 1. Findings. The City Council hereby grants approval for the tree removal request (TREE-0827-2025), based on the following findings:

1. The proposed tree removal request is consistent with Municipal Code Section

12.24.090(G) because the proposed removal includes a compensatory replanting

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Resolution No. ____ (2026 Series)
plan that exceeds the minimum one for one requirement by planting a total of five (5) new trees.

2. The proposed tree removal request is consistent with Municipal Code Section

12.24.090(G) and Conservation and Open Space Policy 7.5.3 because the proposed removal is not a Heritage Tree and is not protected.

3. As conditioned, the proposed tree removal request is consistent with Municipal Code Section 12.24.090(J) because the proposed tree removal will be compensated by planting one (1) new tree onsite and four (4) new trees offsite.

SECTION 2. Environmental Review. On July 17, 2018, the City Council certified the Final Environmental Impact Report (FEIR State Clearinghouse Number 2017051011), adopted a Mitigation Monitoring and Reporting Program, adopted the following CEQA Findings and Mitigation Measures related to the Palm Nipomo Parking Structure Project, and made a Statement of Overriding Considerations. The adopted FEIR identified that the project will result in significant and unavoidable impacts to: 1) Aesthetics – The scale and massing of the parking structure interrupting the transition from the Dana Street grouping of historic resources from the remainder of the Downtown Historic District to the east; 2) Cultural and Tribal Cultural Resources – Removal of two historic resources from the project site; and 3) Noise – Short- term construction noise. The FEIR also found that there would be significant impacts that can be mitigated to less than significant in the categories of aesthetics, cultural and tribal cultural resources, transportation, air quality, biological resources, geology and soils, and hazardous materials. Some impacts related to aesthetics, cultural resources, noise, and transportation were found to be less than significant.

An addendum to the previously certified EIR has been prepared in accordance with CEQA Section 15164(a) that states, “The lead agency or responsible agency shall prepare an addendum to a previously certified EIR if some changes or additions are necessary but none of the conditions described in Section 15162 calling for preparation of a subsequent EIR have occurred”. This Addendum incorporates additional analysis for inclusion in the environmental record. The updated analysis does not materially change the findings and conclusions of the Final EIR, making a Subsequent EIR unnecessary pursuant to Section 15162 of the State CEQA Guidelines.

The Palm Nipomo Parking Structure project is proposed to remain the same as the project assessed in the adopted FEIR; however, the project now proposes to remove one existing, 48-inch DBH Coast Live Oak (Quercus agrifolia) that was originally to be retained and replant one (1) tree onsite in the same area of the existing oak and four (4) trees offsite in the immediate vicinity to allow the theatre to be constructed as intended. The oak tree has not been identified as a ‘significant tree’ and is therefore not subject to the requirements set forth in the City’s Conservation and Open Space Element. The change in the project to remove the oak tree would not alter any of the impacts as compared to the approved project covered in the Final EIR and would not result in new or significantly increased environmental impacts. Thus, the potential biological resources impacts

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Resolution No. ____ (2026 Series)
associated with the tree removal would be less than significant.

SECTION 3. Action. The City Council hereby grants final approval to the request with incorporation of the following conditions:

1. The tree removal(s) for the site shall include one (1) 48-inch DBH Quercus agrifolia (Coast Live Oak) requested by the applicant in application TREE-0827- 2025.

2. The replanting plan shall consist of, at a minimum, five (5) trees and at least one (1) tree shall be planted onsite and at least four (4) trees shall be planted and established offsite in a location to the satisfaction of the City Arborist. The replanted trees shall be 24-inch box or larger. The tree species shall be in accordance with the City Approved Tree List, Major Streets Tree List, or to the satisfaction of the City Arborist.

3. Tree removal shall be completed in compliance with all appropriate mitigation measures contained in the 2018 Certified FEIR. Building plans shall include the contact information for the certified arborist involved with the removal and replanting of the new tree on-site. The building plans shall also include landscape plans showing the location of the new trees to be replanted, species and size to the satisfaction of the City Arborist.

4. All trees shall be planted per the City’s Engineering Standards for Street Trees prior to final building permit approval. All trees planted as part of the replanting plan shall survive and any trees that do not survive shall be replanted.

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

AYES:

NOES:

ABSENT:

The foregoing resolution was adopted this 3
rd day of February 2026.
___________________________
Mayor Erica A. Stewart
ATTEST:

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Resolution No. ____ (2026 Series)
______________________
Teresa Purrington
City Clerk
APPROVED AS TO FORM:
______________________
J. Christine Dietrick
City Attorney
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of San Luis Obispo, California, on ______________________. ___________________________
Teresa Purrington
City Clerk

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WATERING BAG SYSTEM SCHEMATIC DETAIL
DeWitt DEW Right Tree Watering Bag - 15gallonA. WATERING BAG SHALL BE INSTALLED PER MANUFACTURER RECOMENDATION. B. THE WATERING BAG IS DESIGNED TO PROVIDE A DRIP IRRIGATION SYSTEM DIRECTLY TO THE TREE ROOTS OVER AN EXTENDED PERIODS OF TIME. THE BAG IS SELECTED TO PREVENT WATER RUNOFF AND EVAPORATION. C. ONE BAG SHALL FIT 3" DIA TREED. BAG IS TYPICALLY EMPTIED WITHIN 5-8HOURS AND SHOULD BE REFILLED AT MINIMUNM ONCE EVERY SEVEN DAYS. $
June 30, 2026

LICENSED LANDSCAPE ARCHITECT

CALIFORNIA OF ETATS

LINDSAY A CORICA
NO. 6359
10/10/25
Signature
Expiration Date
Date
San Luis Obispo Repertory Theater

PLANTING PLAN
FIRMA CONSULTANTS, INCLandscape ArchitecturePlanningEnvironmental StudiesPrincipal: Lindsay Corica ASLACA Registration No. 6359Phone: 805.781.9800 PO BOX 4404San Luis Obispo, CA 93403firmaconsultants.com

REVISION
PROJECT:

JOB NO: 22044PLAN CHECK:SHEET
L3.0
Monterey Street
San Luis Obispo, CA
DATE
ÀUPD
SHEET TITLE:

LAST MODIFIED: 10/10/25

OFF SITE MITIGATION
CAS LEP 2
24"B
CHI TAK 1
24"B
CHI TAK 1
24"B
10' 0
SCALE: 1" = 10'-0"
50' 10' 20' 40'
NORTH
LOCATION MAP NIPOMO STREET SAN LUIS OBISPOsource: City of SLO Parcel Viewer

PROPOSED TREEPLANTING AREANIPOMO STREET

PROJECT
SITE

P A L M S T R E E T

N I P O M O S T R E E T

MONTEREY ST
PALM

NIPOMO ST

MISSION PREPHIGH SCHOOLSPORTS FIELDS
NORTH

BARK MULCH,

TYPICAL

DRB DRB DRB DRB
+ + + +
PERFORMANCE SPECIFICATION: OFF SITE MITIGATION TREES (1) TREE ESTABLISHMENT PERIOD SHALL BE FIVE YEARS. (2) REFER TO ARBORIST LETTER DATED Sept 24, 2025 (3) IRRIGATE TREE MANUALLY, AT WEEKLY INTERVAL MAY THROUGH OCTOBER (4) SLO REP THEATER IS RESPONSIBLE FOR IRRIGATION AND ESTABLISHMENT OF PROPSOED TREES ANY DEAD TREE SHALL BE REPLACED BY SLO REP. (5) LANDSCAPE ARCHITECT, PROJECT MANAGER OR CITY ARBORIST SHALL REVIEW TREES AT TIME OF

INSTALLATION AND PROVIDE A LETTER TO CITY REGARDING THE COMMENCEMENT OF ESTABLISHMENT PERIOD (6) ONGOING MONITORING SHALL BE CONDUCTED BY SLO REP THEATER +

OFF SITE MITIGATION PLANTING PLANT LIST
ID SIZE BOTANICAL NAME COMMON NAME QUANTITYTREESCAS LEP 24"B CASSIA LEPTOPHYLLA GOLD MEDALLION TREE 2CHI TAK 24"B CHITALPA TASHKENTENSIS 'MORNING CLOUD' MORNING CLOUD CHITALPA 2MULCH $33/<0,1,080/$<(5%$5.08/&+$5($81'(575(( )7;)70,1

:$7(5,1*%$*,167$//3(50$18)$&785(55(&&20(1'$7,21
727$/

DRB '((35227%$55,(55(48,5(',167$//3(5'(7$,/6
OCTOBER 2025TREE REMOVAL APP.

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,55,*$7,21'(7$,/6
)255()(5(1(21/<127(
216,7(0,7,*$7,2175((66+$//%(,55,*$7('$8720$7,&$//<9,$'((35227:$7(5,1*6<67(0 '(7$,/%(/2:
2))6,7(0,7,*$7,2175((66+$//%(:$7(5('0$18$//<%<6/25(3&2175$&7256+$//$33/<25*$1,&$1',125*$1,&)(57,/,=(53(5'(7$,/%(/2:'((35227%$55,(565(48,5(')25$//2))6,7(75((6'(7$,/%(/2:

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ADDENDUM TO

THE CERTIFIED FINAL ENVIRONMENTAL IMPACT REPORT

FOR THE CITY OF SAN LUIS OBISPO

PALM NIPOMO PARKING STRUCTURE PROJECT
JANUARY 2026
A. INTROUCTION
This document is an Addendum to the Final Environmental Impact Report (EIR) prepared for the Palm Nipomo Parking Structure Project (SCH# 2017051011). The EIR was certified by the City of San Luis Obispo on July 17, 2018. The Addendum is intended to bring the existing California Environmental Quality Act (CEQA) documentation as up to date as appropriate, based on minor changes to the approved project. Because there are no new or more severe significant impacts or mitigation measures as a result of this updated analysis, an Addendum is the appropriate CEQA document.

B. ADDENDUM REQUIREMENTS
The Addendum has been prepared in accordance with the relevant provisions of CEQA and the State CEQA Guidelines as implemented by the City of San Luis Obispo. According to Section 15164(a) of the State CEQA Guidelines, “The lead agency or responsible agency shall prepare an addendum to a previously certified EIR if some changes or additions are necessary but none of the conditions described in Section 15162 calling for preparation of a subsequent EIR have occurred.” Section 15162(a) of the State CEQA Guidelines states that no subsequent EIR shall be prepared for a project unless the lead agency determines, on the basis of substantial evidence in the light of the whole record, one or more of the following:
1) Substantial changes are proposed in the project which will require major revisions of the previous EIR or Negative Declaration due to the involvement of new significant environmental effects or a substantial increase in the severity of previously identified significant effects;
2) Substantial changes occur with respect to the circumstances under which the project is undertaken which will require major revisions of the previous EIR or Negative Declaration due to the involvement of new significant environmental effects or a substantial increase in the severity of previously identified significant effects; or
3) New information of substantial importance, which was not known and could not have been known with the exercise of reasonable diligence at the time the previous EIR or Negative Declaration was adopted, shows any of the following:

A. The project will have one or more significant effects not discussed in the previous EIR or Negative Declaration;

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B. Significant effects previously examined will be substantially more severe than shown in the previous EIR or Negative Declaration; C. Mitigation measures or alternatives previously found not to be feasible would in fact be feasible, and would substantially reduce one or more significant effects of the project, but the project proponents decline to adopt the mitigation measure or alternative; or
D. Mitigation measures or alternatives which are considerably different from those analyzed in the previous EIR or Negative Declaration would substantially reduce one or more significant effects on the environment, but the project proponents decline to adopt the mitigation measure or alternative.

This Addendum does not require circulation because it does not provide significant new information that changes the certified EIR in a way that deprives the public of a meaningful opportunity to comment upon a substantial adverse environmental effect of the project or a feasible way to mitigate or avoid such an effect.

This Addendum includes this introduction, a description of the proposed actions addressed in the Addendum as they relate to the original project, and an evaluation that concludes that no new or more severe impacts would result. The City shall consider this Addendum with the certified Final EIR as part of the approval of the amended project.

The CEQA documentation for this project, including this Addendum and certified Final EIR, is available for review at the Community Development Office, located at 919 Palm Street, San Luis Obispo, California. It is also available on the City’s website at:
https://www.slocity.org/government/department-directory/communitydevelopment/documents-online/environmental-review-documents/-folder1903#docfold_14_4356_1767_1903 C. PREVIOUS CEQA DOCUMENTATION
An EIR was prepared for the original Palm Nipomo Parking Structure Project and circulated for public and agency review in 2018. The Final EIR was adopted with a decision to proceed with the project by the City of San Luis Obispo on July 17, 2018.

A Notice of Determination (NOD) was prepared, and there were no legal challenges to the adequacy of the Final EIR during the 30-day statute of limitations associated with the NOD, pursuant to CEQA (Public Resources Code Section 21167 and CEQA Guidelines Section 15094).

D. REASONS WHY AN ADDENDUM IS APPROPRIATE
Since adoption of the EIR and the decision to proceed with the project by the City of San Luis Obispo on July 17, 2018, a change to the project description has occurred.

This document is an Addendum to the Final EIR to document the updated project description, so that the Final EIR, with the most recent project information, may be

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used by the City for purposes of its environmental review. This Addendum incorporates the additional analysis for inclusion in the environmental record. The updated analysis does not materially change the findings and conclusions of the Final EIR, making a Subsequent EIR unnecessary pursuant to Section 15162 of the State CEQA Guidelines.

E. UPDATED PROJECT ELEMENTS
As amended, the construction and operation of the approved above-ground, five-level parking structure, non-profit theater, and 5,000 square feet of commercial space would continue to be developed in the same location on the project site as the original project as described in the EIR.

The non-profit theater is now proposing to remove one existing, 48-inch DBH Coast Live Oak (Quercus agrifolia) that was originally to be retained and replant one (1) tree onsite in the same area of the existing oak tree and four (4) trees offsite in the immediate vicinity. Tree species selected would include but would not be limited to selections from the Approved City Tree List.

F. UPDATED ENVIRONMENTAL IMPACT ANALYSIS
This section addresses the updates to the impact analysis in the EIR as a result of the project changes described above. As described in the EIR, the Palm Nipomo Parking Structure project would result in significant and unavoidable impacts with respect to alteration of the architectural visual character of the neighborhood, demolition of historic resources, and construction noise. All other impacts were determined to be less than significant with mitigation or less than significant/no impact.

In 2018, the Final EIR analyzed that the site did not provide suitable habitat for wildlife and the surrounding urban uses would act as barriers to wildlife movement. It is not located in any wildlife corridors or potential wildlife corridors identified within the City’s General Plan Conservation and Open Space Element. However, trees on the site may support nesting birds protected under the Migratory Bird Treaty Act. The removal of trees and general construction activity may affect protected nesting birds.

As such, the 2018 Final EIR found that the project would have less than significant impact with the implementation of Mitigation Measure BIO-1. As noted above, the oak tree is not located on a site that is suitable for wildlife because it is located on a developed, urban site that is not connected or part of any wildlife areas or corridors.

The removal of the oak tree would be subject to this same mitigation (listed below) as other tree removals on the site.

Mitigation Measure BIO-1
Nesting Bird Protection. To avoid disturbance of nesting and special-status birds, activities related to the project, including, but not limited to, vegetation removal, ground disturbance, and construction and demolition shall occur outside of the bird breeding season (typically February through August in the

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project region). If construction must begin within the breeding season, then a pre-construction nesting bird survey shall be conducted no more than 3 days prior to initiation of ground disturbance and vegetation removal activities. The nesting bird pre-construction survey shall be conducted within the Project Boundary, including a 300-foot buffer (500-foot for raptors), on foot, and within inaccessible areas (i.e., private lands) afar using binoculars to the extent practical. The survey shall be conducted by a biologist familiar with the identification of avian species known to occur in the area. If nests are found, an avoidance buffer (which is dependent upon the species, the proposed work activity, and existing disturbances associated with land uses outside of the site) shall be determined and demarcated by the biologist with bright orange construction fencing, flagging, construction lathe, or other means to mark the boundary. All construction personnel shall be notified as to the existence of the buffer zone and to avoid entering the buffer zone during the nesting season. No ground disturbing activities shall occur within this buffer until the avian biologist has confirmed that breeding/nesting is completed and the young have fledged the nest. Encroachment into the buffer shall occur only at the discretion of the qualified biologist
The 2018 Final EIR noted that the project design included the preservation of the oak tree on the southeastern edge of the site. The document discusses that if any existing trees on the site were to be identified as a ‘significant tree,’ and the project was to determine that any of the ‘significant trees’ would need to be removed, they would be subject to criteria and mitigation requirements set forth in the City’s Conservation and Open Space Element, Section 8.6.3. As noted in the project changes, the oak tree is proposed for removal. The oak tree has not been identified as a ‘significant tree’ and is therefore not subject to the requirements set forth in the City’s Conservation and Open Space Element.

The change in the project to remove the oak tree would not alter any of the impacts as compared to the approved project covered in the Final EIR and would not result in new or significantly increased environmental impacts. Thus, the potential biological resources impacts associated with the tree removal would be less than significant.

G. DETERMINATION
In accordance with Section 15164 of the State CEQA Guidelines, the City of San Luis Obispo has determined that this Addendum to the certified Final EIR is necessary to document changes that have occurred regarding tree removal for the project site since the Final EIR was originally certified. The City has reviewed and considered the information contained in this Addendum and finds that no new or more severe environmental impacts would occur as a result of the project changes. Accordingly, the preparation of subsequent CEQA analysis that would require public circulation is not necessary.

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City of San Luis Obispo, Council Memorandum
City of San Luis Obispo
Council Agenda Correspondence
DATE: February 3, 2026
TO: Mayor and Council
FROM: Whitney McDonald, City Manager
Prepared By: Natalie Harnett, Policy and Project Manager VIA: Whitney McDonald, City Manager
SUBJECT: ITEM #5h - APPROVE A DRAFT LETTER TO LEGISLATORS

REGARDING DIABLO CANYON POWER PLANT
The City Council received agenda correspondence from Senator John Laird regarding the Diablo Canyon Power Plant (DCPP) and the proposed letter from the City Council that is provided in Item 5h. Staff received a request from a Council Member to address that letter from Senator Laird in a staff agenda correspondence that also includes proposed language that acknowledges the letter from Senator Laird and expresses support and understanding for the concerns and goals outlined in his letter, which is attached to this agenda correspondence as Attachment A.

Proposed language for consideration is shown below which would be inserted as a new paragraph after the first paragraph of the draft letter should Council wish to include it:
“The City Council would like to acknowledge and thank Senator Laird for his letter dated January 30, 2026, addressed to them on this matter. The City Council understands the issues and concerns identified in the letter and supports the goals and processes outlined regarding DCPP.”

ATTACHMENT
A – Senator Laird Letter to the City of San Luis Obispo Re DCPP

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Item 5h
Department: Administration
Cost Center: 1001
For Agenda of: 2/3/2026
Placement: Consent
Estimated Time: N/A
FROM: Whitney McDonald, City Manager
Prepared By: Natalie Harnett, Policy and Project Manager SUBJECT: APPROVE A DRAFT LETTER TO LEGISLATORS REGARDING DIABLO

CANYON POWER PLANT

RECOMMENDATION
Approve sending a letter to members of the California State Legislature on behalf of the City of San Luis Obispo titled “Request for State Legislation Supporting Coastal Land Conservation and Restoration of Tax Revenue for Impacted School Districts and Local Government Service Providers Related to Diablo Canyon Power Plant” (Attachment A)

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. On December 22, 2025, the City received a request to join in efforts to seek legislative support on a part of an issue not included in the City’s current Legislative Platform, therefore, the matter was presented to the Council for direction on January 20, 2026. Specifically, Council considered an invitation from the County of San Luis Obispo (County) to join a letter to the Legislature regarding Diablo Canyon Power Plant (DCPP). Council opted not to sign the letter and instead appointed an ad hoc committee to provide direction to staff on preparing a draft letter aligned with guiding principles and the City’s Legislative Platform, and to return to Council for approval at the February 3, 2026 City Council meeting.

DISCUSSION
Background
This is a follow-up item from the January 20, 2026 City Council meeting where Council considered an invitation from the County to join a letter to the Legislature regarding Diablo Canyon Power Plant. The County’s proposed letter included three primary requests from the Legislature:

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Item 5h

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.

Following consideration of public comment and deliberation, Council opted not to sign the letter and instead appointed an ad hoc committee consisting of Council Member Marx and Council Member Shoresman to provide direction to staff on preparing a draft letter aligned with guiding principles and the City’s Legislative Platform, and to return to Council for approval at the February 3, 2026 City Council meeting.

Following Council direction on January 20, staff prepared a draft letter for legislative advocacy regarding DCPP. Council declined to join the County’s proposed letter due to language supporting a 20-year license extension. The City has not previously taken a position for or against the license extension and during the January 20th meeting, Council reaffirmed that approach. Instead, the City’s focus has been on ensuring that any continued operation prioritizes public safety, provides appropriate fiscal mitigation for local impacts, and incorporates long-term land conservation planning. Council supported addressing fiscal mitigation and land conservation and requested a letter reflecting the City’s adopted Legislative Platform, past actions on the issue, and 2016 Guiding Principles.

The draft proposed letter prepared by staff and reviewed and proposed by the ad hoc committee is provided in Attachment A and urges state legislation to:
 Support coastal land conservation and public access planning.  Restore lost tax revenues for local governments and school districts impacted by continued DCPP operations.
 Ensure public safety, fiscal equity, and long-term planning during the current extension through 2030 and any future operations.

DCPP is currently operating under SB 846 authorization through 2030 (Unit 1) and 2030/2031 (Unit 2). In June 2025, the Nuclear Regulatory Commission (NRC) completed its safety and environmental review, finding the plant safe for up to 20 additional years.

This review did not grant the extension but allows operations while PG&E’s license renewal application is under review. The California Coastal Commission approved a key permit in December 2025 requiring land conservation measures, while final approval from the Regional Water Quality Control Board for water usage remains pending. PG&E’s current license application seeks an extension through 2045.

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Item 5h
Previous Council or Advisory Body Action
On January 20, 2026, Council considered joining the County’s letter and appointed an ad hoc committee (Council Members Marx and Shoresman) to guide preparation of a Cityspecific letter. The committee met on January 23, 2026, and the final draft reflects their direction.

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.

CONCURRENCE
The ad hoc committee concurs with the recommendation.

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
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

ALTERNATIVES

1. Modify the letter. Council may direct staff to make specific changes to the draft letter before approval.

2. Do not send a letter. Council may choose not to send a letter, resulting in no City action on this legislative item at this time.

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Item 5h

ATTACHMENTS
A - Draft Letter to Legislators Regarding Diablo Canyon Power Plant

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City of San Luis Obispo, Office of t he City Council, 9 90 Pal m Street, San Luis Obispo, CA, 9 3401-32 49, 805 .781. 7114, slocity.org
Date
To: Members of the California State Legislature
Subject: Request for State Legislation Supporting Coastal Land Conservation and Restoration of Tax Revenue for Impacted School Districts and Local Government Service Providers Related to Diablo Canyon Power Plant
Dear Members of the California State Legislature:

On behalf of the City of San Luis Obispo (City), and consistent with our previous advocacy and current legislative platform, we write today seeking the state legislature’s support for coastal land conservation and restoration of tax revenue that has been eliminated, despite continued operation of Diablo Canyon Power Plant (DCPP). We believe these are essential considerations that must be included in long-term planning during the current extension to 2030 and if continued operation is contemplated beyond 2030 as well.

The City has consistently emphasized that any period of continued operation must be accompanied by strong public safety protections, fiscal certainty for impacted local governments and school districts, and continued planning for both eventual decommissioning and future land use. Cities, counties, school districts, and special districts have planned, staffed, and delivered essential public services based on long-standing fiscal assumptions tied to the facility’s operating timeline. As State policy related to DCPP continues to evolve, it is critical that the communities bearing these impacts are treated equitably and not left to absorb the consequences of statewide decisions. As the Legislature evaluates potential actions related to DCPP, the City respectfully urges consideration of the following principles:

Public Safety and Emergency Preparedness: The City is located within ten miles from the DCPP in evacuation or “Protective Action Zone” 8. The safe operation of DCPP must remain the foremost priority. Continued operation should continue to be subject to rigorous regulatory oversight and include sustained funding for local and regional emergency preparedness, spent fuel storage security and ongoing long-term planning, public safety services, and other coordination activities that protect the City and surrounding communities. Evacuation planning should be improved, in case of a nuclear disaster.

Fiscal Mitigation: School districts and local governments in the region have experienced significant fiscal impacts resulting from changes to DCPP’s operating assumptions, including the loss of historic unitary tax revenues. These revenues, eliminated in 2025, risk causing the loss of classrooms, student services, public safety, infrastructure maintenance, other core community services, and also funding for emergency planning and response while the state’s only nuclear power plant continues to operate. It’s essential that the funding formula used to pay for these services adjust for the unanticipated, continued operation of DCPP and the

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impact that places on local communities. If it is decided that the previous tax structure is no longer appropriate, we ask that the legislature provide equivalent, reliable fiscal mitigation for affected jurisdictions for the duration of continued DCPP operations. Any alternative approach should ensure fiscal equity among impacted agencies and avoid shifting the financial burden of State policy decisions onto local governments and schools.

Long-Term Planning and Land Conservation: Legislative actions should support continued regional and local planning for eventual decommissioning, workforce transition, and future land use. The City also supports the conservation of coastal lands surrounding Diablo Canyon and the expansion of appropriate public access, in coordination with regulatory agencies, Tribal communities, and conservation partners, while ensuring that land conservation efforts benefit local jurisdictions.

The City of San Luis Obispo stands with its neighboring cities, school districts, and regional partners in urging the Legislature to adopt a balanced approach that protects public safety, supports education and essential services, and provides fiscal certainty for communities hosting critical infrastructure on behalf of the State.

We appreciate the Legislature’s continued engagement and look forward to working collaboratively to advance solutions that are equitable, transparent, and responsive to local impacts.

Thank you for your consideration.

Sincerely,
Erica A. Stewart
Mayor, City of San Luis Obispo
Cc: Relevant Legislative Committees
Senator John Laird
Assemblymember Dawn Addis
County Board of Supervisors
Cal Cities

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Item 6a
Department: Administration
Cost Center: 1021
For Agenda of: 2/3/2026
Placement: Public Hearing
Estimated Time: 30 Minutes
FROM: Greg Hermann, Deputy City Manager
Prepared By: Teresa Purrington, City Clerk
SUBJECT: INTRODUCTION OF AN ORDINANCE TO AMEND MUNICIPAL CODE CHAPTER 2.40.040 (CAMPAIGN CONTRIBUTION LIMITATIONS)

RECOMMENDATION
Consider introduction of a draft Ordinance entitled “An Ordinance of the City Council of the City of San Luis Obispo, California, amending Chapter 2.40.040 of the Municipal Code related to Campaign Contribution Limitations” increasing the per person contribution limit from $250 to $500.

POLICY CONTEXT
Municipal Code Chapter 2.40 outlines Elections Campaign Regulations and Section

2.40.040(A) establishes the current total contribution limit per person at $250. Changes to the Municipal Code require two public hearings: 1) Introduction of a draft Ordinance (Attachment A) and 2) Second reading for final adoption of the proposed Ordinance at a future public meeting.

DISCUSSION
Background
The Political Reform Act is a California voter-approved initiative requiring strict, transparent, and public disclosure of money in state and local politics. It regulates campaign contributions, lobbyist activities, and conflict of interest laws to ensure honest government. In 2022, California Senate Bill 1439 expanded the requirements of Government Code section 84308, known as the Levine Act.

Key points of the Levine Act
 Who it applies to:

State and local elected officials, appointed officials, and certain agency members who make decisions on licenses, permits, contracts, or other entitlements.

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Item 6a
 Contribution threshold:

If the official receives more than $250 (amount set by statute) from a party, participant, or agent involved in a matter.
 Time restriction:

The official must recuse themselves from the decision:
o For 12 months after receiving the contribution, and
o For 3 months after a final decision is made.
 Disclosure option:

In some cases, an official may publicly disclose the contribution and return it, which can allow participation.
 Purpose:

To ensure government decisions are made fairly and impartially, not influenced by campaign donations.

Approved by the Governor in September 2024 and effective January 1, 2025, Senate Bill 1243 (“SB1243”) amended Section 84308 of the Political Reform Act.The following is a summary of the amendments to the Levine Act:
 Higher Contribution Threshold
The amount of campaign contributions that triggers the Levine Act restrictions was raised from $250 to $500.
 Clarified Definitions
Key terms—such as “pending,” “agent,” “participant,” and what counts as a license, permit, or other entitlement for use—are now defined in the statute, reducing confusion over when the rules apply.
 Agent Contributions Treated Separately
Contributions by agents of a party or participant (like lobbyists or consultants) are now prohibited in any amount during a pending proceeding and for 12 months thereafter and are no longer aggregated with contributions from the party itself.  Extended Cure Period
Officials who receive a disqualifying contribution now have up to 30 days (instead of 14) to return it in order to “cure” the conflict and potentially participate in the decision.
 Disclosure Requirements Clarified
Parties to proceedings must disclose any contribution over $500 to officials before the agency makes its final decision, with statutory timing requirements now clearer.

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Item 6a
 Expanded Contract and Participant Exemptions
Certain contracts and circumstances are excluded from triggering the Levine Act, such as:
o Contracts under $50,000,
o Contracts between two government agencies,
o Contracts where neither party receives compensation,
o Some periodic renewals or routine reviews,
At the May 20, 2025 Council Meeting, the Council decided not to appoint an Election Regulations Review Committee to review whether the maximum allowable contribution should be increased to $500 to align with Senate Bill 1243. Council provided direction to return in the Winter of 2026 with a draft Ordinance increasing the maximum allowable per person contribution from $250 to $500.

Public Engagement
In accordance with the City’s noticing requirements for proposing amendments to the Municipal Code, a legal ad was published in The New Times 10 days prior (on January 22, 2026) to introduction of the ordinance and 5 days prior to final adoption. Additionally, contents of the ad(s) will be published to the City’s website, with e-notifications sent to subscribers of City News. The public will have an opportunity to provide public comment in writing prior to the meeting or as public comment during the meeting.

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

FISCAL IMPACT
Budgeted: Yes Budget Year: 2026-27
Funding Identified: No
Fiscal Analysis:

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

Total $N/A $ $ $

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Item 6a
There are no financial impacts directly associated with this item.

ALTERNATIVES
Council could direct staff to not increase the per person campaign contribution limit to $500. If Council chooses this alternative, the current limit of $250 would remain in effect, and the City’s allowable campaign contribution limit would remain lower than the disqualifying contribution amount in new state law.

ATTACHMENTS
A - Draft Ordinance amending SLOMC Chapter 2.40.040 (Contribution Limitations)

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O ______
ORDINANCE NO. _____ (2026 SERIES)

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SAN LUIS OBISPO, CALIFORNIA, AMENDING CHAPTER 2.40.040 OF THE

MUNICIPAL CODE RELATIONED TO CAMPAIGN CONTRIBUTION

LIMITATIONS
WHEREAS, Senate Bill 1243 amended Section 84308 of the Political Reform Act, raising the threshold for a conflicted contribution from the previous limit of $250 to $500 in (in the aggregate per candidate.)
WHEREAS, the Council of the City of San Luis Obispo conducted a public meeting in the Council Chamber of City Hall, 990 Palm Street, San Luis Obispo, California, on May 20, 2025, for the purpose of considering changes proposed to update the Municipal Code.

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

SECTION 1. Findings. After considering the meeting minutes and recommendations of the City Clerk and City Attorney and public input and testimony, having considered arguments and authority supporting and opposing modifications to and continuation of the City’s campaign regulations, the Council makes and adopts the following findings in support of the regulations adopted herein:
a) San Luis Obispo is a small and engaged community wherein residents closely follow and scrutinize elections processes and closely monitor the amounts and sources of campaign contributions to individual candidates for elected office. b) Based on an evaluation of campaign expenditures in comparable cities, the Council finds the direct contribution limits adopted herein are consistent with those in place in comparable jurisdictions and, notwithstanding the existing limitations or lack thereof in comparable jurisdictions, that the limitations adopted herein would permit candidates to solicit and accept contributions far in excess of historical expenditures by candidates in the City of San Luis Obispo and comparable cities.
c) The Council has considered and affirms the statement of purpose and intent set forth herein and determines the amended and decreased contribution limits adopted herein further and support the stated purpose and intent.

SECTION 2. That the following section of the San Luis Municipal Code Chapter

2.40 is hereby amended to read as follows:

2.40.040 Contribution limitations.

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Ordinance No. _____ (2026 Series) Page 2
O ______
A. Contributions by Persons to Candidates and/or Controlled Committees. No person shall make any contribution to a candidate and/or any controlled committee connected with that candidate, with respect to any single election, which would cause the total amount contributed by such person to the candidate and any controlled committee connected with that candidate, when combined, to exceed two hundred and fifty five hundred dollars.

B. Acceptance or Solicitation by Candidates or Controlled Committees. No candidate or controlled committee shall solicit or accept any contribution from any person which would cause the total amount contributed by such person, with respect to any single election, to the candidate and/or any controlled committee connected with that candidate, when combined, to exceed the sum of two hundred and fiftyfive hundred dollars.

SECTION 3. Ordinance Number 1733 (2024 Series) is hereby amended and superseded to the extent inconsistent herewith.

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 3
rd day of February, 2026, AND FINALLY ADOPTED by
the Council of the City of San Luis Obispo on the ____ day of ____, 202X, on the following vote:

AYES:

NOES:

ABSENT:
___________________________
Mayor Erica A. Stewart
ATTEST:
_______________________
Teresa Purrington
City Clerk
APPROVED AS TO FORM:
_______________________

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Ordinance No. _____ (2026 Series) Page 3
O ______
J. Christine Dietrick
City Attorney
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of San Luis Obispo, California, on ______________________. ___________________________
Teresa Purrington
City Clerk

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City of San Luis Obispo, Council Memorandum
City of San Luis Obispo
Council Agenda Correspondence
DATE: February 3, 2026
TO: Mayor and Council
FROM: Greg Avakian, Parks and Recreation Director
Prepared By: Devin Hyfield, Parks and Recreation Manager VIA: Whitney McDonald, City Manager
SUBJECT: ITEM 7a – LAGUNA LAKE GOLF COURSE PROGRAM OPERATIONS

AND MAINTENANCE OVERVIEW STUDY SESSION
Staff received the following questions regarding the Laguna lake Golf Course program operations and maintenance overview study session. The questions are below with staff’s response shown in italics:

1. How many identifiable individual users used the golf course each year? What is the per capita general fund subsidy per golfer? The Golf Course tracked 5,011 unique annual users in 2024-2025 (which includes the Cal Poly Kinesiology quarterly classes); however, this does not include the community partnership groups which utilize quarterly rosters for tracking the number of users:
- SLO High School: 15-17 on season roster (fall and spring) - Morro Bay High School: 15-20 on seasonal roster (fall and spring) - Laguna Middle School: 60-80 on roster (fall)
- SLO Academy School: 12-15 on seasonal roster (fall)
- First Tee Program: 25 on seasonal roster (fall, winter, spring) - Special Olympics: 20 on seasonal roster (fall, winter, spring) Unfortunately, it is not feasible to accurately identify a per capita expenditure, or General Fund subsidy, per individual user due to the software system capability and the variety of community partnerships that utilize group rate fee structures or full facility reservations for rentals and tournaments. The 5,011 unique users identified for 2024-2025 are incorporated in the annual Total Rounds of 24,494.

However, the other group uses are not tracked per player but by group impact to the course, such as a half or full-day rental. If the total rounds of 24,494 uses are divided within the FY 2024-25 subsidized amount from the General Fund of $459,140 results in approximately $18.74 per play.

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Laguna Lake Golf Course Program Operations and Maintenance Overview Study Session Page 2

2. What percentage of the LLGC 5,000 unique golfers per year are City of SLO residents?
Unfortunately, the tee time reservation system does not track zip codes for daily transactions and staff are not able to accurately track the resident vs. non-resident uses. The majority of the players from the partnership user groups are local residents as they attend the local schools, including the majority of First Tee as other courses host their own First Tee (e.g., Sea Pines in Baywood). Additionally, the Cal Poly Kinesiology courses are considered ‘residents’ as they attend the university yet their permanent addresses may reflect out of the area.

3. Are the groups charged by group, or do the individuals in the group get charged?
The majority of the organized groups (schools, teams) purchase “Play Pass Cards” (10 plays) which provide a 10% discount on daily play rates and each organization varies in how they institute payment to the City. As an example, Cal Poly Kinesiology has each student purchase the passes individually. Whereas, SLO High School, Laguna Middle School, and SLO Classical Academy are charged a one-time use fee per season for their class uses and standard rates for tournaments. First Tee is a non-profit organization that promotes youth development and is partnered with thirteen central coast golf courses. The City does not charge First Tee a use rate for its weekly uses of the driving range or putting area, and charges $3/round for play outside of the scheduled times. First Tee Tournaments are charged standard rates when hosted at the course. Special Olympics is provided use of the driving range during their Spring season at no cost.

For tournaments, a course reservation fee (similar to a park or room reservation fee) is charged and a group rate is provided and charged based on the number of players, golf cart use, and if driving range is included.

4. How do we calculate the subsidy per user at the course given this nuance with groups?
It is difficult to accurately determine a subsidy when considering groups, as different rates apply for certain groups. Non-profit organizations, such as Special Olympics and the First Tee program, are provided discount rates based on being a non-profit community group. The majority of the groups facility use is for the driving range and putting areas at no charge and are programed during lower use times. If First Tee members utilize the course for full play, they are provided with a discounted rate and scheduled during non-peak times. For school groups, they are assessed a seasonal fee based upon their group size and impact to the course.

These groups are typically charged $500 per season per user group. This fee covers access to the driving range, and limited course access during non-peak times.

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Laguna Lake Golf Course Program Operations and Maintenance Overview Study Session Page 3

5. What is the dollar amount of the General Fund subsidy each year since the Golf Course Enterprise Fund was discontinued to the present? What was the revenue recovery (reimbursement) percentage of each year? Staff have provided a chart and graph below outlining the FY 2011-2025 subsidies related to General Fund (GF) and cost recovery percentages.

Fiscal
Year
Actual
Revenues
Actual
Expenses
GF
Subsidy
Percent
Subsidized
2011-12 $297,600 $517,375 $219,775 42%
2012-13 $291,700 $523,237 $231,537 44%
2013-14 $336,700 $516,018 $179,318 35%
2014-15 $328,383 $550,409 $222,026 40%
2015-16 $263,870 $576,352 $312,482 54%
2016-17 $234,897 $616,852 $381,955 62%
2017-18 $250,433 $604,534 $354,101 59%
2018-19 $227,602 $621,659 $394,057 63%
2019-20 $166,919 $595,060 $428,141 72%
2020-21 $248,101 $599,489 $351,388 59%
2021-22 $220,129 $829,248 $609,119 73%
2022-23 $213,003 $724,556 $511,554 71%
2023-24 $287,577 $735,748 $448,171 61%
2024-25 $375,077 $827,151 $452,073 55%
$0
$100,000
$200,000
$300,000
$400,000
$500,000
$600,000
$700,000
$800,000
$900,000
Annual Revenues and Subsidies by
Fiscal Year
Revenues Subsidy

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Laguna Lake Golf Course Program Operations and Maintenance Overview Study Session Page 4

6. What revenue enhancement measures can we put in place to help increase revenue for the course? Can we charge non-residents more and are we doing that already after we created the non-resident fee category in the last user fee update?
Daily use fees for City Park and Recreation Department programs, such as the SLO Swim Center and Golf Course, currently do not include a different fee for residents vs. non-residents. This concept was discussed and researched during the City-wide User Fee Study in 2023 and was determined that requiring ID for each individual paying an entry fee (or tee time) at the golf course or at the SLO Swim Center would be a challenging task for staff and potential barrier for accessibility by community members. The current Resident vs. Non-Resident fee program for the Department is associated with program registrations such as summer and sports camps, swim lessons, instructional classes, and facility/field rentals.

One consideration for instituting a Resident and Non-Resident rate as part of the 2023 User Fee Study for certain Parks & Recreation programs was the registration systems used for certain programs and facilities that require an address at time of registration, enabling the software system to identify the Resident or Non-Resident rate based on the zip code. The golf course reservation system does not currently have this capability.

7. The staff report states how many rounds of golf have been generated each year over the last several years. Is there any estimate for the number of total visitors to the course, including the youth programs and other special events (school groups, September Scramble, Cross Country races, etc.)? The demographics provided in the staff report were compiled from reservations and purchases to showcase the number of Tee Time reservations and driving range use. When a large event utilizes the course, such as the SLO County Cross County Race or the September Scramble, the group is charged a facility reservation fee for the entire use of the course for that time period and not a per person rate. The overall number of total users is not able to be accurately tracked, other than through individual daily sales and reservations for play. a. Do we have similar data on Sinsheimer Pool or Damon Garcia usage? (number or users/number of “swims” per year)
This is similar to the Damon-Garcia Sports Complex as user group organizations reserve field space vs. paying per individual player/user. The SLO Swim Center is able to track ‘door entries’ for the majority of swim entries (2024-2025 recorded 76,898 entries , however a similar issue arises for full and half facility reservations for swim meets or water polo matches as the groups reserve facility space rather than per person entries.

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8. Are there any other park spaces besides the three compared in this report that generate revenue? Such as the Jack House. If so, what is its cost recovery percentage?
Revenue collections from other City parks are based on a variety of types of reservations related to facility and event reservations. Some of the larger parks allow the Department to rent out fields (softball, baseball, soccer/football), BBQ and picnic areas, roller rink, tennis or pickleball courts (for tournament play). The Jack House Gardens generates some revenue through wedding rentals or private outdoor events within the garden area. The most common rentals that generate revenue relate to special events and traditionally occur within Mission Plaza, Santa Rosa Park (e.g., Art in the Park), Meadow Park, and Laguna Lake Park. The cost recovery on these types of event rental reservations are difficult to account for as the types of uses and number of rentals vary. The significance of comparing the Laguna Lake Golf Course, SLO Swim Center, and Damon-Garcia Sports Complex are that all three require ‘reservation’ or a fee to utilize the property and have a controlled entry (e.g., Damon-Garcia Sports Complex can only be used through the reservation system, while other parks host drop-in play opportunities).

9. Regarding the idea of adding Disc Golf to LLGC. Can you explain how that would be worked into the program model alongside other activities at LLGC? Since we have two existing courses in the city that are free for users, I am wondering if we would charge for playing at LLGC? If so, what data do you have to support the idea that this would generate revenue, given the free opportunities at parks elsewhere?
The addition of disc golf to a traditional golf course would be seen as complementary rather than competing activities. A variety of golf courses have incorporated this addition over the last few years. Models are in place at other golf courses that operate both within the same property area by providing time-based separation during off-peak golf hours, ensuring spatial design and safety that avoid potential damage to tee boxes, greens, fairways and common ball landing zones with clear signage in place. Disc golf courses require minimal infrastructure with removable baskets. Disc golf attracts a variety of ages and demographics as well, such as younger players, families, beginners and new users who may not be familiar with the course, some of whom may convert later to traditional golf.

The model for play would include a fee assessed with playing disc golf at LLGC, recommended at $10.00 per user, with the benefit being the quality of experience of using a professionally designed course on manicured terrain, better sightlines, and year-round playability. Both the Sinsheimer and Laguna Lake Park disc golf courses are volunteer supported and during the Spring season require consistent upkeep due to the increase in foliage growth (Parks Maintenance typically mows the fields once or twice per year.)

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Laguna Lake Golf Course Program Operations and Maintenance Overview Study Session Page 6 The addition of disc golf at LLGC will provide more opportunities to host tournament play, allowing general access at Sinsheimer and Laguna to remain open, and set up of league play opportunities. Staff have been in contact with the local SLO Throwers Disc Golf Club as they have provided a design and proposal for the Laguna Lake Golf Course. The proposal still needs more review by staff and be presented to the Parks and Recreation Commission before being considered. According to the most recent SLO Throwers Disc Club attendance tracking from 2023, they listed 5,247 players participated in organized games/tournaments (excluding drop in play).

10.A letter from a constituent was received stating that they would be interested in volunteering to support the course. Has the use of volunteers been considered before?
The Golf Course had utilized volunteers to assist with the driving range, serve as ‘Marshalls’ on the course (help with rules and player interactions), as well as within the Pro Shop, for a number of years. The program has been on hiatus since 2020 (initially ended with the on-set of the COVID-19 pandemic) and has not been revitalized with the Pro Shop being out of service. As of November 2025, staff have been in discussion of reinstating volunteer Marshall roles potentially starting in spring 2026 and working in conjunction with the City’s Volunteer Program.

Volunteer roles could assist with the driving range area, serve as Marshalls to help educate players, as well as assist during events and tournaments. Staff will keep City Council updated on this potential reinstatement of the program.

11.Do the following words on the Corporation Grant Deed dated October 29,1979 mean that the golf course property could not be used for housing or other non-park/recreation purposes? “The use of this property shall be restricted to outdoor park/recreation pursuant to the Nejedly-Hart State, Urban and Coastal Park Bond Act of 1976”
The property deed dated October 29, 1979 (APN 053-111-055) is specific to the parcel containing the driving range, BBQ/event space, and maintenance yard.

This parcel has restricted use for outdoor park and recreation purposes, reflecting the requirements of the Land and Water Conservation grant. The other two parcels that encompass the golf course site are not deed restricted.

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12.Is parcel 053-111-055 restricted to "outdoor" recreational uses or could indoor recreational uses (e.g., gymnasium, ball courts) be allowed? While the Nejedly-Hart Act itself allows certain indoor recreational facilities in other contexts; this specific parcel is subject to a recorded deed restriction that is more restrictive than the Act and limits use to outdoor park and recreation purposes only.

The deed specifically states that the property is ‘restricted to outdoor park/recreation purposes’. As a result, indoor recreational facilities such as gymnasiums or enclosed ball courts are not permitted unless the deed restriction is formally amended or removed through the appropriate State process.

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13.Does the following language in Resolution 2805 dated June 2, 1975 paragraph 3 commit the City to requiring the golf course revenue recovery to be at least 50%: “(The City) certifies that said agency…can finance 100 percent of the project, half of which will be reimbursed”? Resolution 2805, dated June 2, 1975, approved the City’s submission of a Land and Water Conservation Fund application for the Laguna Lake Golf Course and Driving Range Acquisition Project. The language in paragraph 3 states that the City “certifies that said agency has or will have matching funds and can finance 100 percent of the project, half of which will be reimbursed.” In this context, the “project” refers to the development and acquisition of the golf course and driving range, not the ongoing operation of the facility. This language confirms the City’s ability to fund the project and the expectation of reimbursement through the Land and Water Conservation Fund, but it does not commit the City to achieving a 50 percent revenue recovery from golf course operations.

14.Has there ever been any environmental review (EIR or Mitigated Negative Declaration) of the golf course? What chemicals are being used on the turf? How much non-recycled water does the golf course utilize per month? Are there any environmental protection addressing the runoff from the golf course to Laguna Lake and Prefumo Creek?
The Laguna Lake Golf Course was first constructed in 1964, which preceded the California Environmental Quality Act (CEQA). As part of the development of the course, Prefumo Creek was realigned through the golf course at this time. This City later acquired the property in phases in the late 1970s; however, property acquisition is typically exempt from CEQA.

Current environmental protections addressing runoff include the City’s MS4 Stormwater Permit from the State Water Resources Control Board, as well as City Municipal Code, chapter 12.08 (Urban Stormwater Quality Management and Discharge Control) and chapter 12.23 (Creeks, Tributaries and Riparian Corridor Regulations).

Over the years, the City and its partners have implemented a variety of environmental enhancement projects at Laguna Lake Golf Course, including a series of in-stream steelhead migration passage improvements, tree planting, and invasive species removal. Several areas of Prefumo Creek within the golf course were damaged during the winter storms in 2023, and any emergency project to be completed would follow current environmental review requirements.

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Laguna Lake Golf Course Program Operations and Maintenance Overview Study Session Page 9 The course utilizes approximately 70% reclaimed wastewater for irrigation, supplementing 30% irrigation from the two on-site freshwater wells to reduce and flush out salts from the reclaimed wastewater treatment process which can be harmful to turf and shrubs over long-periods of time. In 2024-2025, the Golf Course utilized 10,759,232 gallons of water for irrigation, plumbing, and operations. In comparison, the Damon-Garcia Sports Complex utilized 11,160,908 gallons of water, and Santa Rosa Park utilized 5,398316 gallons of water during the same time period.

The golf course maintenance staff overall approach is based on the United States Environmental Protection Agency’s Integrated Pest Management Plan (IPM). The course prioritizes cultural practices such as mowing, irrigation control, fertility balance, and improving turf growing conditions to prevent pest and disease issues before they start. Chemical applications are made only when monitoring and site conditions indicate they are necessary to protect turf health and playability.

Staff utilize a fungicide program which is less intrusive or harmful to the vegetation with a focus primarily on greens, with applications to tees and fairways when disease pressure warrants. The course maintains a rotation of systemic and contact fungicides to manage resistance and provide both preventative and curative control. The Course avoids the use of non-selective or aggressive herbicides on putting greens. Weed pressure in greens is primarily addressed through cultural practices and turf density management. Spot treatments are used whenever possible instead of broadcast applications.

15.What cost-cutting (or value engineering) measures could be taken to reduce the capital costs of the club house (Pro Shop) and of the bridge? Bridge Replacement: Public Works and Parks and Recreation staff identified reuse of an existing City-owned bridge as the most cost-effective option for the cart/pedestrian bridge replacement. The bridge is currently being stored at the City’s Corporation Yard and would be hauled to the golf course for placement on new abutments outside of the creek banks to reduce future impact to the creek area and embankments.

Pro Shop Rehabilitation: Staff from Parks and Recreation, Public Works, and Human Relations – Risk Management have worked directly with California Joint Powers Insurance Authority (CJPIA )and the City’s insurer to identify the most costeffective methods for the initial mold remediation and initial flood prevention mitigation techniques during the first two phases of the project. The third phase is to release a Request For Proposals (RFP) for the preparation of design documents for the internal renovation of the Pro Shop, followed by a request for construction bids. The RFP for design services is currently being finalized and could be released within the next few months.

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16.What measures could the City take to increase the revenue generated by golf course use, moving the cost recovery percentage to the top of the range, 60%
Staff have provided a couple of program expansion opportunities for revenue generation within the staff report and will highlight those during the presentation to City Council on February 3. In addition, the critical areas to increase the number of users and grow both current programs and expand new opportunities are based on the completion of the bridge installation and pro shop rehabilitation. The lack of a bridge and fully functional pro shop negatively impact consistent year-round play, the ability to host tournaments, as well as facility reservations and rentals.

The opportunity to collect monthly lease revenue from a food and beverage concessionaire will also expand revenue generation and support the community requests while utilizing the golf programs, as well as expanding event potential.

17.How many unique visitors does the SLO Swim Center have in a year? Staff are not able to accurately identify unique users of the SLO Swim Center as the daily entry fees are not tracked as individual ‘reservations/registrations’ in the software system. Additionally, the community partnership with the Seahawk Swim Club and local school districts are classified as group uses and contracted based on hours and number of lanes of use, rather than individuals. The below chart is a breakdown of the user group breakdown during the 2024-2025 season for the SLO Swim Center:

Overall Total 2024-2025 76,898
Total Lap Swim Users 30,039 39.06%
Total YMCA Member Entries 10,807 14.05%
Total Recreation Swim Users 8,806 11.45%
Total Warm Water Exercise Users 1,816 2.36%
Total Miscellaneous Users 25,430 33.07%
The total number of door entry’s does not reflect individual unique users. Some swim center users visit the facility 3-4 times per week for swim workouts such as lap swim, warm water exercise classes, or summer swim lessons. Miscellaneous users represent specialty user groups that do not enter through the City’s system including SLO Seahawks (12,555), swim meets (including spectators – 1,760), scuba classes (160), swim lessons (8,855) and high school swim practices (1,065).

The miscellaneous number represents an average attendance based on the number of days per program.

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18.Is there a potential to expand the current Pro Shop to accommodate additional uses?
The current Pro Shop rehabilitation project, which is supported by insurance repair funds, is to rehab the facility to its previous floorplan with some mandatory ADA required upgrades. The original floor plan includes a small lobby/social area that was previously used for golf related social uses, as well as the opportunity to be used as a small community space for meetings and social engagements. The current Pro Shop building is 1,575 square feet, which includes the main pro shop area (795 sf), staff offices (262 sf) and concessionaire space (424 sf). Staff anticipate that the space will sufficiently accommodate other uses, such as community meeting, small events, etc.

19.Will the Pro Shop renovations include a kitchen facility appropriate for use by a food and beverage vendor?
The Pro Shop currently has the infrastructure of a full commercial kitchen (stove, vent, fridge/freezer, commercial sinks, service counter) and operated as such prior to the closing of the building. The rehabilitation project includes the kitchen space in order to support the full operations returning for concessionaire to provide food and beverage service to the users and neighboring community members.

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Department: Parks and Recreation
Cost Center: 7007
For Agenda of: 2/3/2026
Placement: Study Session
Estimated Time: 90 Minutes
FROM: Greg Avakian, Parks & Recreation Director
Prepared By: Business Analyst, Lily Honer-Hollstien; Recreation Manager, Devin Hyfield SUBJECT: LAGUNA LAKE GOLF COURSE PROGRAM OPERATIONS AND

MAINTENANCE OVERVIEW STUDY SESSION

RECOMMENDATION

1. Receive presentation on the Laguna Lake Golf Course Operations and Maintenance.

2. Provide feedback and direction on program and revenue expectations. Direct staff on any future program and facility recommendations.

3. Provide staff direction on continuing the two significant project needs related to the Pro Shop renovation and the pedestrian/cart bridge replacement project timelines.

REPORT-IN-BRIEF
During the review of the draft 2025-2027 Financial Plan at the April 15, 2025 Council meeting, Council inquired about obtaining more information on the operations and financial analysis of the Laguna Lake Golf Course, as well as potential reuse options for the property. Work Plan item 5.f. was added to the
Cultural Vitality, Economic Resilience, and Fiscal Sustainability Major City Goal:

5.f. Complete a fiscal analysis of the golf operations at the Laguna Lake Golf Course and conduct a Council Study Session to evaluate fiscal impacts, capital needs, and potential reuse options prior to major infrastructure investments.

This report presents an overview of the Laguna Lake Golf Course programs, operations, and facility maintenance. This study session report provides historical background of the original golf course facility, which the City took over in 1978 after it opened in 1964, identifies the current community and partnership programming, provides data on user demographics, identifies current facility and capital improvement challenges and opportunities, and provides a financial analysis, which includes local golf course comparisons, along with financial comparisons to similar City recreational facilities such as the SLO Swim Center and Damon-Garcia Sports Complex. Lastly, it concludes with a brief overview of potential other uses for the parcel.

POLICY CONTEXT

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During the April 15, 2025 Council meeting for the review of the FY 2025-27 Financial Plan, Council inquired about obtaining more information on the operations and financial analysis of the Laguna Lake Golf Course programs and service offerings. Staff were directed to provide Council a study session on the program operations, fiscal analysis, and maintenance needs of the Laguna Lake Golf Course (LLGC), as well as determine the priority of two current CIP related projects: Pro Shop facility renovation and the pedestrian/cart creek bridge replacement project.

The Parks and Recreation General Element and Master Plan (Parks and Recreation Blueprint for the Future: 2021-2041, “Blueprint”) lists the golf course as one of the City’s nine group outdoor gathering areas and categorizes the course as a Recreation Center/Special Feature. During the community outreach and surveys conducted for the Blueprint, support for managing and preserving the golf course arose as a theme during small group sessions with interest groups (p. 66), and survey results indicated 77% of respondents were very satisfied or satisfied with the golf course as a facility, however, only 5% of respondents ranked golf course improvements in their top four priorities for improving, repurposing, or expanding city parks and facilities (pp. 76-77).

Chapter 4 of the Blueprint identifies a number of goals and policies for the City’s Parks & Recreation system, including a goal to “Meet the Changing Needs of the Community” and a policy specific to the golf course:

2.6 Accessing and Evaluating the Golf Course. Continue to manage the golf course for its primary use while exploring opportunities for broader community use, potentially including a fully immersed golfing experience including mini-golf, disc golf, and foot golf, a walking loop, community space, redevelopment of the pro-shop, as well as more revenue capture opportunities. Consider alternative programming such as community use of the golf course for gatherings for specified days and hours. (p. 90.) Section 5 of the Blueprint provides recommendations for improvement and implementation priorities for key parks and facilities. The Laguna Lake Golf Course is identified within the chapter (p. 133) and provides recommendations for short-term and long-term improvements, specifically with expansion of community events, financial operational assessment, exploring alternate and complementary programs (disc golf, foot golf, other active and passive uses), as well as investing in the rehabilitation of the pro shop clubhouse, irrigation, and creek restorations.

DISCUSSION
Background
The Laguna Lake Golf Course (LLGC or “Course”), owned and operated by the City of San Luis Obispo, is a 26-acre, 10-hole, executive length golf course located at 11175 Los Osos Valley Road. The LLGC is operated and maintained by the City Parks and Recreation Department Golf Division, which is made up of one full-time Golf Supervisor,

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one full-time Recreation Coordinator, two full-time maintenance workers, and various part-time temporary positions. The current LLGC operations include management of the Pro Shop operations, coordination of all community partnership contracts, instructional lessons and clinics, youth, adult, and senior group uses, coordination of all program support supplies, and staff training and management. The current maintenance of the course includes all turf and irrigation maintenance, driving range and visitor area upkeep, maintenance of equipment and facilities such as restrooms, offices, maintenance workshop, and parking area, as well as staff training and management associated with safe operations of equipment and handling of chemicals and fertilizers.

Historical Background
In 1964, in conjunction with a housing development project (Ranchos Canada De Los Osos and La Laguna - Laguna Lake Company), the developer constructed the Laguna Lake Golf Course (LLGC) as a 9-hole executive class amenity for the housing development and operated the Course for a short-term through 1965. From 1967-1973, a lessee operated the course under a receivership controlled by a credit union. In 1978,

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the City was approached by community members to take over operations of the course, and the City purchased the 29-acre parcel, including the 26-acre LLGC property.

The LLFC is comprised of three Assessor’s Parcel Numbers (APNs): 053-111-055, 053- 111-058, and 053-111-062, which together form the current, combined property configuration. Although the site is operated as a single facility today, the parcels were historically acquired separately and are subject to differing deed restrictions.

APN 053-111-055 is supported by two grant deeds recorded on October 29, 1979 (Attachment A), which reflect acquisition under the Nejedly-Hart State, Urban, and Coastal Park Bond Act of 1976, as documented in the Resolution Approving the Application for Federal Land and Water Conservation Fund Grant-In-Aid Program funding for the Laguna Lake Golf Course and Driving Range Acquisition Project (Attachment B).

These deeds restrict use of the parcel to outdoor park and recreation purposes. The two deeds correspond to the parcel’s configuration as separate parcels prior to consolidation; both deeds remain applicable parcel identified as APN 053-111-055.

APN 053-111-058 was acquired by deed recorded on November 20, 1978 (Attachment

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C) and is not subject to the Nejedly-Hart Bond Act restriction. APN 053-111-062 was acquired later, by deed recorded on April 26, 1999 (Attachment D), and likewise does not contain Bond Act use restrictions.

Based on review of the recorded deeds and available acquisition documentation, no records have been identified indicating that federal acquisition funds were used to purchase the property or that federal use restrictions apply.

Following the City’s acquisition of the course in 1978, the prior lessee continued to operate the course until the early 1980s; however, the exact date the City assumed operations has not been identified in the available records. During that time period, the course continued to not meet financial expectations and much of the necessary maintenance of the facility and property was deferred.

For a two-year period, in 1991-1993, LLGC was supported as a part of the City’s General Fund. From 1993 to 2011, the LLGC was reclassified to operate as an enterprise fund.

Parks and Recreation Staff conducted two Laguna Lake Golf Course Fund Rate Reviews, the first being on June 11, 2009 and subsequently on June 1, 2010. In both Council Agenda Reports, staff’s recommendation was to subsidize the LLGC with General Fund support. During the Strategic Budget Meeting for the 2011-13 City Financial Plan on April 12, 2011, staff requested Council direction regarding the future structure of the Golf Fund, including consideration of establishing a special revenue fund (page 14). Based on the direction provided during the April 12, 2011 meeting, as reflected in the meeting minutes and public testimony received at that time, LLGC was formally removed from enterprise fund status through adoption of the 2011-13 City Financial Plan. Effective July 21, 2011, all LLGC operations were transferred to the Parks and Recreation Department and ceased to be classified as an enterprise fund.

Consistent with the 2013-15 Financial Plan and Major City Goal to Sustain Essential Services, Infrastructure, and Fiscal Health, the Parks and Recreation Department conducted an extensive review of the Laguna Lake Golf Course operations. The Department evaluated various operational models to determine the most sustainable and effective method to manage the golf course operations and property. Different program models were considered, including contracting out golf course operations, golf course maintenance, or both golf course operations and maintenance as an operational model needing further evaluation, including discussion to create requests for proposals for contract course operations. Staff presented this option to City Council on December 2, 2014. Based on the direction provided during the December 2, 2014 meeting, as reflected in the meeting minutes, it was determined that the LLGC operations and maintenance was to remain a general fund supported recreational program operated by the Parks and Recreation Department.

During the creation and implementation for the updated Parks and Recreation General Element and Master Plan (Parks and Recreation Blueprint for the Future: 2021-2041) process, which occurred between 2018–2021, the Laguna Lake Golf Course was identified as a low-cost and accessible recreational facility supporting a variety of local

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community groups. The LLGC is classified as a special facility (e.g., aquatic centers, skate parks, dog parks, community gardens) within the Blueprint and is recognized within the Park Amenity Standards (Table 4-2, p. 84) as meeting the recommended national standard of one 9-hole golf course facility per 50,000 residents. The 26-acre LLGC is also noted as a significant contributor to the City-wide park acreage, which totals 206 acres (Table 2-2, p. 30). For decades, the City has pursued ambitious park service goals, including providing 10 acres of parkland per 1,000 residents and ensuring that parks are accessible within a ½ mile, or a 10-minute walk, from residential neighborhoods.

Since 2020, the LLGC facility has experienced a variety of setbacks including a 4-month closure in early 2020 due to the COVID-19 pandemic and subsequent restrictions to general operations to support health guidelines, the closure of the Pro Shop/snack shop due to flooding in December 2021 (which has not yet been repaired), and the closure of the cart/walking bridge access connecting both sides of the course over Prefumo Creek at Hole #2 due to the 2023 Winter Storm events. Between January and March 2023, the golf course was closed for a total of 72 days due to the significant rain events that impacted the course turf saturation and access across the creek to the other side of the course due to the closure of the bridge.

As of March 2022, the golf course business operations have been conducted out of a temporary office trailer located in the parking lot. The trailer serves as business operations for customers and offices for the Golf Supervisor, Recreation Coordinator, and the Pro Shop service desk. The Pro Shop offers golf supplies (clubs, balls, hats, gloves, etc.), golf club rentals, and limited food and drink options. The maintenance pathway that crosses the creek to access the course property has been utilized by golfers to access both sides of the course for the past 2.5 years. However, that area is closed routinely when the creek exceeds its traditional water level during winter months, necessitating the closure of the golf course during those periods. The project to repair and replace the bridge is funded in the adopted Capital Improvement Program (CIP) to commence in Summer 2026. A consultant has been identified for the Pro Shop redesign and staff will commence with an RFP for interior design pending the result of the Council Study Session being conducted on February 3, 2026. The bridge project is approved and funded at $600,000 and the Pro Shop project funding of approximately $250,000 is contingent on the current insurance claim and the pending final interior redesign phase.

Golf Operations
The Laguna Lake Golf Course is a year-round facility operating on a 357 day per year, weather dependent model. The course operates daily from 8:00 am to 5:30 pm from November – March and closes at 7:00 pm from April – October. Golf carts are available for rental, and the driving range is open until one hour prior to course closure. The Pro Shop service desk is staffed by Recreation Cashiers throughout the day, split into three shifts. The cashiers manage the check-in and transaction for customers and report directly to the Recreation Coordinator, who is available Monday – Friday to provide support to the temporary staff and customers and reconcile the daily transactions from play reservations and merchandise sales. The Golf Supervisor and Recreation Manager serve as on-call support for the Recreation Cashiers for any weekend needs related to

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course issues or customer needs.

LLGC offers tee reservations through the Lightspeed Golf software system, allowing participants to reserve tee times 7-days in advance. Golf Cart inventory was updated and expanded in August 2023 through a contract service provider, offering more opportunities for use throughout the day and expanding the Spectator program that allows a non-golfer to ride along and not participate. The Spectator program saw a 50% increase in FY 2024- 25 with the updated golf cart inventory which resulted in consistent availability. The temporary Pro Shop offers golf clubs for rent or purchase (new and used) and a basic supply of golf equipment, including hats, gloves, balls (new and used), tees and markers.

The Driving Range area was enhanced in 2025 with new mats for the 10 bays and an automated ball distribution system which utilizes tokens and has seen an increase in usage from the previous year by 41% in FY 2024-25.

LLGC has expanded community partnerships over the years to include Cal Poly Kinesiology, San Luis and Morro Bay High Schools, Laguna Middle School, SLO Classical Academy, Special Olympics, and the youth First Tee Program. The First Tee of Central Coast Program is a free program which the City has partnered with since 2004, that offers youth the opportunity to learn about the game of golf along with life-enhancing values that can be used on the greens and off. A PGA professional golf instructor provides the LLGC with beginning and advanced instruction, holds monthly golf clinics, and facilitates quarterly youth tournaments at the course.

Prior to the Pro Shop closure due to rainwater flooding in December 2021, the “11th Hole Grill” concessionaire was operated by Achievement House, Inc. and provided food and beverage service to the LLGC patrons for over a decade. Operations ceased in July 2021, with the Achievement House ending the concessionaire lease to pursue alternate avenues of fundraising and job opportunities for their members. The City conducted a RFP process for a new concessionaire in Fall 2021 and after selection and the closure of the Pro Shop, the concessionaire operated a mobile food truck in the parking lot until Fall 2024. Unfortunately, the volume of sales was determined inadequate by the vendor as a food truck option. The temporary food truck concessionaire lease provided an additional $300 per month in revenue. With a fully operational Pro Shop, staff anticipate a monthly concessionaire lease to range between $600 to $700 per month, resulting in $7,200- $8,400 per year of additional revenue. The City has chosen not to select a new concessionaire until the construction of the Pro Shop is completed. Instead, LLGC provides limited pre-packaged food and drink options within the temporary Pro Shop.

Along with traditional golf operations, the LLGC property continues to be a community asset for non-golf related activities and events. For the last 10-years in September, the Parks and Recreation Department has hosted the popular September Scramble, a 1-mile obstacle course that attracts over 600 community participants from the SLO county community. SLO High School hosts the SLO Cross Country Championships that brings together athletes from Central California and SLO County every November to the city, from grades 6th – 12th. Over the years, the LLGC has hosted multiple special events including family movie nights, local musicians, weddings and private, non-profit events.

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There has been a significant decrease in alternative events over the past three years due to the closure of the Pro Shop facility during the renovation process. Staff anticipate a return of more community events and rentals when the Pro Shop facility renovation is completed and is re-opened.

Golf Fees and Revenue
With the adoption of the FY 2017-19 Financial Plan, the City Council modified the user fee cost recovery policy for the golf course from the high range (60%–100%) to the midrange (30%–60%) based on user fees being comparable to other local golf courses, reflecting a policy emphasis on maintaining accessible and affordable recreational programs and service fees for the community. This approach prioritizes accessible and broad participation in youth and senior programs by maintaining lower cost recovery where there is a clear community benefit, while allowing higher recovery levels only for services comparable to those offered by the private sector. This fiscal philosophy aligns with the operations of many of the programs and services managed by the Parks and Recreation Department, including operations at the SLO Swim Center, Senior Center, and activities hosted at the Damon-Garcia Sports Complex.

Below is a comparison of the LLGC’s current fees and fees charged by local comparable golf facilities within SLO county. The following table (Table 1) compares LLGC’s current green fees and related charges to those of comparable regional courses across common rate categories. LLGC fees reflect the adopted 2023 User Fee Study, which was presented to City Council on February 20, 2024, and formally adopted on July 2, 2024, with annual CPI adjustments applied thereafter. Comparable facility fees are current as of January 2026.

Table 1: Comparable Fee Schedules
Round Types LLGC
Current
Fee
1,361 yds
Pismo
Beach
1,465 yds
Sea Pines
2,002 yds
Dairy Creek
3,004 yds
Monday-Thursday (Regular) $16.25 $20.00 $25.00 $30.00
Monday-Thursday
(Senior/Youth/Student/Military)
$12.25 $15.00 25 $5-$21
Friday-Sunday (Regular) $17.00 $20.00 $25.00 $30.00
Friday-Sunday
(Senior/Youth/Student/Military)
$13.25 $15.00 $25.00 $5-$21
Twilight (after 3 PM) $12.25 N/A $19.00 $20.00
Family Rate (4 people) $35.00 N/A N/A N/A
Super Twilight (last 2 hrs) $9.25 N/A N/A N/A
Cart Rental $12.25 $13.00 $20.00 $15.00
Pull Carts $5.25 $4.00 $6.00 $5.00
Club Rentals (Regular) $10.25 $20.00 $30.00 $40.00

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A review of green fees and related charges shows that the LLGC is priced lower than comparable regional courses, including Pismo Beach, Sea Pines, and Dairy Creek.

Although these courses are longer in yardage and offer different amenities such as expanded pro shop operations, restaurants, and event spaces, LLGC’s rates are consistently lower across most categories, including weekday and weekend play, discounted rates, and twilight options. The fiscal philosophy for these fees is directly related in the LLGC providing accessible programs and services (low barrier) to the community, similar to the operations of the SLO Swim Center and a variety of Parks and Recreation Department programs and services. Additionally, the financial models for the comparable courses differ as Sea Pines is privately operated and consists of both large event spaces and hospitality rentals, Pismo Beach is State funded and operated by a lessee, and Dairy Creek is operated and maintained by SLO County Parks Department which also oversees two other golf facilities within the County. The LLGC fees were assessed and increased during the 2023-24 User Fee Study and incorporated in Fall 2024. Since the implementation of the fees in 2024, the LLGC fees have been increased based on annual CPI. If desired by Council, staff have an opportunity to reassess fees to be more competitive with the comparable courses based on the recent 2026 comparables, requiring staff to conduct an in-depth fee assessment and return to Council with revised recommended increases.

The LLGC financial model and program operations also offers several reduced-rate options, such as family and super-twilight play, that are not available at all comparison courses. LLGC Golf cart, pull cart, and club rental fees are similarly lower than those at comparable facilities, which helps provide context for the course’s current pricing structure and how it compares within the regional market. The following table (Table 2) presents adopted golf course revenue budgets compared to actual revenues by fiscal year, illustrating performance trends and variances. Table 4, below, provides a summary of operating expenses for the golf course compared to revenue.

Table 2: Golf Course Revenue, Budget vs. Actual
Category 2019-20 2020-21 2021-22 2022-23 2023-24 2024-25 Budget $288,121 $177,681 $260,543 $298,987 $264,000 $270,000 Actuals $165,233 $248,101 $220,128 $213,002 $287,557 $375,077 Variance -$122,888 $70,419 -$40,414 -$85,984 $23,557 $105,077 Actual revenues in FY 2019–20 were lower than budgeted due to the COVID-19 related facility closure (4-months) and modified program operations related to the State’s COVID19 restrictions. Similarly, FY 2021–22 revenues fell short of budget expectations due to the impacts and closure of the Pro Shop facility related to the December 2021 flooding.

Revenue continued to not meet expectations in FY 2022-23 due to the significant rain events and flooding which occurred in January and March 2023 resulting in 72 days of closure, including the access bridge being closed for safety concerns. Revenue performance strengthened in FY 2024–25, exceeding budgeted expectations. In the first two quarters of FY 2025–26, the actual revenues are $166,464, representing 56% of the annual revenue budget of $297,000. Revenue performance in the first two quarters of FY 2025-26 has surpassed mid-year performance compared to prior years, indicating a

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strong start and continued positive trend leading into quarter 3 and quarter 4 despite both the Pro Shop and bridge projects currently scheduled for FY 2026-27. Staff credit the steady increase in play and revenue through the efforts of maintaining and adding community partnership agreements with the local schools, as well as providing enhanced maintenance to the course resulting in consistent play conditions. Maintenance staff have been creative in managing watering practices, tee and green repairs, and mitigating irrigation leeks with new equipment which the public have provided in-person feedback to both the Pro Shop and maintenance staff. As the course improvements continue to be a significant focus, the opportunity to increase player satisfaction and more amenities with the bridge repair and Pro Shop repair will contribute to growing participation and revenue.

To provide a complete view of financial performance, Figure A illustrates Laguna Lake Golf Course’s total revenues and expenses from FY 2019–20 through FY 2024–25.

Figure A: Total Revenues vs. Expenses, FY 2019–20 to FY 2024–25 Over this period, expenses have consistently exceeded revenues, reflecting the ongoing need for General Fund support to maintain operations. Expenses ranged from approximately $595,000 to $829,000 annually, while revenues increased from $166,919 in FY 2019–20 to $375,077 in FY 2024–25. The variance between revenues and expenses highlights both the investment required to maintain course operations and the positive trend in revenue generation resulting from updated fee structures, community partnerships, and consistent course maintenance.

While Figure A illustrates overall financial performance by comparing total revenues to total expenses, a deeper look at how revenue is generated across specific operational categories provides insight into the drivers of this performance. To further illustrate this, the following graphic (Figure B) shows golf course revenue by type, including rounds, rentals, driving range, and merchandise, across fiscal years. $0.00
$100,000.00
$200,000.00
$300,000.00
$400,000.00
$500,000.00
$600,000.00
$700,000.00
$800,000.00
$900,000.00
FY19-20 FY20-21 FY21-22 FY22-23 FY23-24 FY24-25
Figure A: Total Revenues vs. Expenses, FY 2019–20 to FY 2024–25
Expenses Revenues

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Figure B: Golf Course Revenue by Type
As shown in Figure B, the reservation and sale of golf rounds consistently represent the largest share of revenue across all fiscal years, reinforcing that green fees remain the primary driver of course revenue. Changes in rounds revenue therefore have a greater impact on overall financial performance than other operational fee-based categories. With the upgraded driving range amenities and rental equipment inventory, the rental revenue has grown in recent years, indicating increased use of carts, clubs, and related amenities alongside play. Driving range revenue remains a smaller but steady component of total revenue, reflecting its role as a supplemental offering rather than a primary revenue source, while merchandise revenue fluctuates year to year and represents a relatively minor portion of total revenue compared to rounds and rentals.

To provide additional context for these revenue trends, golf activity volumes were analyzed across multiple fiscal years. The following table (Table 3) summarizes golf activity volumes by type, including rounds played, play pass sales, and rental activity, across fiscal years.

Table 3: Golf Activity Volume by Type
Usage by Type FY19-20 FY20-21 FY21-22 FY22-23 FY23-24 FY24-25 Total Rounds 16,428 23,463 17,991 16,392 20,858 24,494
Play Pass Sales 294 344 369 515 611 681
Cart Rentals 2,138 1,415 1,278 2,083 2,731 3,859
Driving Range 1,813 2,835 1,729 2,342 2,981 4,216
Push Carts 1,010 1,314 722 613 805 1,033
Club Rentals 370 401 202 279 338 354
$-
$50,000.00
$100,000.00
$150,000.00
$200,000.00
$250,000.00
$300,000.00
FY19-20 FY20-21 FY21-22 FY22-23 FY23-24 FY24-25
Figure B: Golf Course Revenue by Type
Rounds Rentals Driving Range Merch

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Table 3 shows that total rounds represent the largest and most consistent category of golf activity. Play Pass sales have also increased gradually over the six-year period, indicating growing interest in multi-round packages. It is important to note that Play Pass sales shown in Table 3 reflect the number of passes sold rather than the total number of rounds redeemed through those passes. Each Play Pass represents a bundle of 10 rounds of golf, and because utilization varies by customer and fiscal year, the pass count understates the total volume of rounds played through this program; those rounds are captured within the total rounds category rather than reflected separately.

Cart rentals and driving range activity exhibit similar usage patterns, with declines during weather impacted years followed by strong recovery. Cart rentals now exceed prepandemic levels, while driving range activity has nearly doubled compared to FY 2019– 20 usage. Pushcart and club rentals remain smaller in scale, reflecting their role as supplemental amenities rather than primary drivers of participation.

To provide a snapshot of current-year performance, the following figure (Figure C) presents the percentage breakdown of total golf course revenue by category for the first two quarters of FY 2025–26.

Figure C: Revenue by Type Q1 and Q2 FY 2025-26
To examine how participation is distributed across primary golf activities, the following figure (Figure D) illustrates the proportion of total primary golf activity accounted for by rounds, Play Pass sales, and driving range usage over the past six fiscal years. 74%
16%
5%
5%
Figure C: Revenue by Type Q1 and Q2 FY 2025-26
Rounds Rentals Driving Range Merch

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Figure D: Primary Activity Share by Fiscal Year
Figure D shows the share of total primary golf activity accounted for by rounds, play pass sales, and driving range usage from FY 2019–20 through FY 2024–25. Total rounds consistently make up the largest portion of activity, ranging from 83% to 90%, and remain the primary driver of golf course revenue. Driving range usage has gradually increased as a share of total activity, rising from 10% in FY 2019–20 to 14% in FY 2024–25, representing an additional source of revenue linked directly to course participation. Play pass sales (10-play passes) account for a small portion of total activity, between 1% and 3%, but support revenue by encouraging multi-round purchases. This visualization highlights that revenue is largely driven by rounds played, while driving range and play pass sales provide modest but growing contributions to overall course revenue.

Finally, to illustrate trends in supplemental revenue directly tied to golf participation, the following figure (Figure E) presents cart, pushcart, and club rental activity by fiscal year.

Figure E: Total Rentals by Type
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
FY19-20 FY20-21 FY21-22 FY22-23 FY23-24 FY24-25
Figure D: Primary Activity Share by Fiscal Year
Total Rounds Play Pass Sales Driving Range
0 500
1000
1500
2000
2500
3000
3500
4000
FY19-20 FY20-21 FY21-22 FY22-23 FY23-24 FY24-25
Figure E: Total Rentals by Type
Cart Rentals Push Cart Rentals Club Rentals

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Cart, pushcart, and club rentals are supplemental revenue streams that are directly tied to the purchase of green fees or play passes and occur only when golfers are actively playing. Rental activity declined in FY 2020–21 due to COVID-19 related facility closures and operational restrictions. Since that period, rental volumes have generally rebounded alongside increased rounds played, with cart rentals showing notable growth in FY 2024–

25. This trend reflects that rental revenues are add-on purchases dependent on golf participation rather than stand-alone revenue sources.

Cost Recovery and Financial Models
The Parks and Recreation Department provides accessible and low-cost programs and services to the community of all ages and abilities at a variety of parks and facilities. The Parks and Recreation Departments divisions operate under an approved financial Cost Recovery Model which consists of Low Range: 0-30%, Mid-Range: 30-60%, and High Range: 60-100% cost recovery categories. As such, the business operations model for the LLGC are comparable to similar City recreational facilities which support equitable and accessible community programs, such as the SLO Swim Center and the DamonGarcia Sport Complex. The SLO Swim Center, as an example, is classified under LowRange Cost Recovery model (0%-30%). The LLGC programs and fees are listed within the City’s Financial Plan under “should be comparable to other communities.” Based on the local comparison golf facilities, the Department budget goals have utilized the MidRange model of 30%-60% cost recovery for the LLGC for the past two Financial Plans (2023-25 and 2025-27).

Table 4: City Facility Maintenance & Programming Comparison Activity Golf Course SLO Swim Center Damon-Garcia
Maintenance
Responsibility
Parks and
Recreation Public Works Public Works
Programming
Responsibility
Parks and
Recreation Parks and Recreation Parks and Recreation
Public Works
Staffing None
1 Maintenance
Technician
.5 Temporary
Employees
2 Parks Maintenance
Specialist
.6 Temporary Employees
Parks and
Recreation Staffing
1 Golf
Supervisor
1 Coordinator
2 Maintenance

2.76 Temp. Staff
1 Coordinator

11.48 Temporary
Employees

0.25 Temporary
Employees
Total FTE 6.76 13.98 2.85
Annual Availability
(days per year) 357 345 245
2024-25 Operating Budget
PW Expenditures $0.00 $538,208 $219,273
PW Staffing $0.00 $167,515 $237,161
Public Works Total $0.00 $705,724 $456,434
P&R Expenditures $305,856 $66,625 $15,000

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P&R Staffing $528,361 $645,782 $9,088
Parks and Rec
Total $834,218 $712,408 $24,088
TOTAL $834,218 $1,418,132 $480,522
Revenues (actuals) $375,077 $393,267 $162,540
Difference $459,140 $1,024,865 $317,982
Cost Recovery 45% 28% 34%
Comparing City facility maintenance and programming highlights the differences in staffing, budget allocations, and cost recovery across comparable recreational facilities.

The LLGC maintains a staffing model with 6.76 total FTEs, combining Parks and Recreation and temporary personnel, and annual availability of 357 days,10-12 hours per day. The Damon-Garcia Sports Complex has minimal staffing at 2.85 FTE, while the SLO Swim Center has the highest staffing level at 13.98 FTE, reflecting the facility’s larger maintenance and operational demands. The standard FTE ratio for parks maintenance is based on a 1 FTE per 7-10 acres pending the type of special amenities (e.g., ball fields or golf courses may require more staff per acre vs. general park turf area). Budget allocations follow a similar pattern: the LLGC total expenditures are $834,218, while SLO Swim Center expenditures total $1.42 million and Damon-Garcia operates at $480,522.

When compared to revenues, cost recovery is highest at the LLGC (45%), followed by Damon-Garcia (34%) and lowest at SLO Swim Center (28%).

Table 5: Golf Course Expenses by Category, Budget vs. Actual Fiscal Year 2019-20 2020-21 2021-22 2022-23 2023-24 2024-25 Staffing Budget $387,457 $402,700 $514,442 $513,362 $520,899 $538,387 Staffing Actual $394,711 $402,895 $518,234 $481,885 $469,460 $510,246 Utilities Budget $127,634 $117,634 $127,913 $119,895 $149,086 $151,023 Utilities Actual $95,329 $98,558 $154,331 $134,946 $140,582 $162,008 Other Operating
Budget $131,335 $144,253 $163,482 $139,063 $147,141 $145,723 Other Operating
Actual $105,019 $98,034 $156,682 $107,724 $125,705 $154,895 Total Budget $646,426 $664,588 $805,837 $772,320 $817,126 $835,133 Total Actual $595,059 $599,488 $829,247 $724,556 $735,747 $827,150 Total expenses at the LLGC, including staffing, utilities, and other operating costs, have steadily increased from $646,427 in FY 2019–20 to $827,151 in FY 2024–25. For clarity, “other operating costs” reflect expenditures in the department’s operating budget outside of staffing and utilities, including maintenance supplies, small equipment, and service contracts. Over this six-year period, the overall increase in expenses has been driven primarily by higher staff wages and utility costs, with water utility costs notably impacted by irrigation leaks. Staff have proactively managed maintenance and other operating line items, and actual expenses have generally remained below total budgeted amounts, even when individual categories exceeded projections. The exception was FY 2021–22, when total expenses of $829,248 slightly exceeded the budget of $805,838, primarily due to

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higher-than-expected staffing and utility costs. Staffing expenses have remained close to budget each year, while utilities and other operating costs have shown more variability, reflecting fluctuations in course usage and operational needs. Overall, LLGC has maintained a pattern of careful expense management, with most years staying under budget and variations tied to changing operational demands.

Course Demographics
In line with the mission of the Parks and Recreation Department, the LLGC strives to provide affordable access to recreational opportunities for the community. The City has seen an increase in use by young adult and college students’ demographics. Staff associate this increase due to a variety of influences: addition of more Cal Poly Kinesiology and high school age programming. Through the Lightspeed registration system, staff are able to track the type of customers by age range during reservations, as well as through Play Pass Sales (10-play cards). Depending on the day of the week, time of day or age of the participant, the correct bracket of golfer is selected within the Lightspeed system. Golfer demographics, such as age (based on fee classification), are tracked in a monthly report that generates monthly and annual demographics that has been utilized to track golfer demographics since 2018. The Adult category use increased by 37%, while college age use (non-Cal Poly Kinesiology classes) increased by 78% between FY 2022-23 and FY 2024-25. Round totals overall are rebounding to prepandemic levels with round play just under 25,000 in FY 2024-25. LLGC services an average of 5,000 unique golfers on an annual basis, not accounting for speciality uses including school district users, or non-golf related special events held at the course.

Table 6: User Composition by Fiscal Year
User
Demographics FY19-20 FY20-21 FY21-22 FY22-23 FY23-24 FY24-25 Less Than 18 1,601 2,191 1,968 3,152 4,365 7,770
18-55 8,907 13,985 9,783 8,789 11,891 11,272
55+ 5,777 5,867 4,179 4,341 4,345 4,937
Total Rounds1 16,285 22,043 15,930 16,282 20,601 23,979 Total rounds have increased steadily over the last six years, growing from 16,285 in FY 2019–20 to 23,979 in FY 2024–25. The growth is largely driven by youth under 18, whose participation rose from 1,601 to 7,770, reflecting strong engagement of younger golfers which staff contribute to the partnerships with the local schools and First Tee program.

The 18–55 age group remains the largest cohort in most years, though its numbers fluctuate. Participation among those 55 and older has been relatively stable, representing a consistent but smaller portion of total users. The closure of the Pro Shop and the access bridge have been concerns for the 55+ age group and may be a factor in the reduction of use since 2021. Overall, these trends highlight both steady growth in total participation and the increasing impact of youth and young adult engagement on overall course activity.

1 Total rounds reflect the number of rounds played and do not represent unique golfers. A single golfer may be counted multiple times if they play multiple rounds or use play passes.

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Golf Operational Improvements
The Golf Division staff value input from community users and conduct customer experience questionnaires and informal customer interactions to implement program and course enhancements to improve user experience and staff efficiency. As the temporary Pro Shop trailer is the current home of the service desk and office for the Golf Supervisor and Operations Coordinator, staff have incorporated the core program related merchandise items necessary to provide the best experience to its users by offering a variety of merchandise, as well as pre-packaged food and beverage options. The inclusion of a new driving range shed in 2024 supports the operations of the instructional area of the driving range. This upgrade enhances accessibility to range balls for the users and provides staff workspace improvements through the installation of a new ball washer and dispensing machine to clean and restock the golf balls throughout the day. In addition to the new range shed, range mats are now replaced annually providing a better hitting surface for practice. The inventory of rental clubs for adults and youth, in both right- and left-handed options for those who are new to the golf game are continuously assessed and upgraded to improve the experience for new and younger golfers. Through a 3rd party contract provider, the golf carts are upgraded every five years with new carts and are serviced regularly to ensure that the course maintains a full stock of carts throughout the year.

Customers have shared the closure of the permanent Pro Shop and access bridge as the main deterrent of consistent play and concerns for organizing events and/or tournaments.

Both of these facility projects will benefit the Golf Division’s ability to increase round play, accessibility for golfers of all ages and abilities, provide a better venue to host tournaments and special events, as well as maintain and rebuild the sense of community as the Pro Shop facility provides a social environment, as well as a community meeting space.

Golf Maintenance
LLGC Maintenance staff is responsible for the comprehensive care of the 26-acre property including: greens, tees, fairways, roughs and all foliage and trees, as well as structural facilities (driving range, pathways, parking lot, pro shop and maintenance shop) within the property. The maintenance staff consists of the Golf Supervisor, 2.00 FTE Maintenance Workers, and temporary seasonal maintenance workers. The maintenance of the course uses an environmental stewardship and resource management mindset which includes selecting and applying products to the golf course that are as sustainable and least environmentally impactful as possible. Maintenance focuses on daily, weekly, monthly and annual maintenance tasks to ensure the seasonal course conditions are optimal at all times. Maintenance is responsible for upholding an aging irrigation infrastructure and maintaining golf centric equipment outside of the City’s fleet system.

LLGC has invested in speciality equipment that helps maintain the course by reducing the downtime for water shut off and staff hours needed to repair issues on the course, as well as products and irrigation upgrades to reduce water use throughout the year.

Maintenance staff assists other divisions within the City for irrigation repairs to help maintain other park assets.

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Since the adoption of the City’s climate action goals, the LLGC has been working to do its part to meet the goal of being carbon neutral by 2035. The course received an electric course mower in April 2025 through the Noble Saw/SLO County APCD Lawn and Garden Electrification Program where the City provided gas powered equipment to SLO County Air Pollution Control District and received a voucher to purchase an electric replacement unit. In addition to the mower, the course also utilizes electric weed whackers, leaf blowers, chainsaw, edgers and power tools. Any new maintenance equipment purchased by the division will continue to be electric, furthering the City’s sustainability goals.

Golf Maintenance works closely with the City’s Natural Resources division, specifically the City Biologist, in maintaining the sensitive Prefumo Creek area that flows through the course property. Additionally, staff collaborate with the City Arborist with tree maintenance and planting, including the recent successful planting of 60 trees within the LLGC in support of the City’s 10,000 tree initiative and partnership with ECOSLO in FY 2024-25.

Golf Irrigation System
With the LLGC property being an original build in 1964, the irrigation systems are aging, and staff navigate repairs of outdated and often incorrect previous maintenance and irrigation maps. The LLGC utilizes City recycled water for its main source (70%) of irrigation. The course has two wells onsite that are used strategically throughout the year to supplement the use of the reclaimed water in order to flush the greens and fairways (applying water to wash out accumulated salts and minerals from the turf areas due to the use of recycled water). The wells serve as a supplemental on-site irrigation water source and provide 30% of irrigation for the course. Staff anticipate lower use of the well water with the recent completion of the upgraded WRRF systems that have lowered the percentages of solids contained in the reclaimed wastewater supplies.

Between 2018 and 2025, the focus of the LLGC maintenance staff transitioned from a reactive irrigation leak repair model to a proactive model. Previous methods required irrigation water shut off for daily durations to repair older irrigation needs. This resulted in high leak frequency due to pressure build-up within the pipes, multiple day course closures, external contractor dependence, reactive resource allocation and suboptimal course conditions. Overall, the course has experienced between 10 and 15 major irrigation leaks between 2018 and 2025 that resulted in multiday irrigation shutdowns (1- 3 days, 10-30 hours staff time each) to address the incidents with most of the fixes completed internally by the golf maintenance staff. In the past two years, staff implemented a coordinated modernization plan to upgrade wiring rebuilds for the irrigation controller converters that operate the different automated irrigation devices throughout the course (similar to street light atomization), revised and updated safety training, data logging collaboration with other local golf courses, and the acquisition of modern excavation equipment. Further LLGC irrigation benefits will come from pressure monitoring deployment (flow sensors connected to Central Irrigation systems) and phased lateral lines (irrigation “branches” that drive water to the sprinkler heads) and mainline renewal planning.

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As part of the FY21-23 Financial Plan, an annual $20,000 was funded through the Capital Improvement Plan (CIP) for the golf course to assist with irrigation repairs to address high impacted areas and the acquisition of excavation equipment that would expose leaks quickly and reduce staff time, leading to minimal downtime for the course water supply, as well as prevent long-term leaks and water waste. In 2021, maintenance staff collaborated with both Public Works and Utilities to determine the best course of action to address the aging infrastructure and frequent leaks that continued to occur on the course. The purchase and utilization of the hydro-excavator has been a key asset for staff to address irrigation leaks and improvement of course conditions. By reducing the time frame that the irrigation system is turned off at the course to accommodate repairs, staff have maintained a more consistent and efficient watering schedule and ability to address multiple leaks at one time, resulting in better use of staff resources and increasing the customer experience. With the success of the hydro-excavator at the golf course, the equipment has become a Citywide asset assisting Public Works and Utilities Department in water line and irrigation leak response at other City managed properties to help with the exposure of other water leaks within the City’s park system including: Sinsheimer Stadium, Damon-Garcia Sports Complex, Meadow and Santa Rosa Parks.

Overall, the LLGC has seven irrigation controllers that manage 216 sprinklers and approximately 3 miles of irrigation piping within the 26-acres of the course. Golf staff have continued to update sections of the irrigation control system to better regulate the courses system over the years. Starting in 2021, staff replaced outdated irrigation controller systems, replacing with a more modern controller system and completed, with existing resources and staff, a new wiring system for hole #1, connecting 44 sprinklers heads that covered around 3-acres. This systematic approach has been rolled out with a phased approach throughout the course, rewiring sections of the course for a more reliable irrigation system and more efficient watering schedule when time and resources allow.

Future Laguna Lake Golf Course Improvements
Staff continuously assess and forecast ways to diversify the course to attract different clientele and support community interest while maintaining the current offerings to the golf community. The recent updates and expansion of the driving range, addition to the chipping area, and upgrades to the event/BBQ area have all assisted in enhancing the user experience over the last couple of years.

The Parks and Recreation Department will continue to review trends in the industry to improve the course and operational opportunities at the LLGC. Staff are planning to incorporate a spring customer experience survey to obtain feedback on current programming and ideas for alternate programming and activities. Additionally, the Golf Supervisor had the opportunity to attend a special training at the Torrey Pines Golf Course in the San Diego area (host of the United States Open) to learn more about the latest methods in sustainable maintenance practices, as well as newer trends and programs in the golf industry.

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Current Planned Improvements:

The below examples showcase program improvements that are forecast to increase revenue through alterative play and use of the facility.

Night Golf, a popular program that occurred prior to the closure of the Pro Shop, is an opportunity to provide alternative night use at the course during the shorter days occurring during October – March. Night Golf utilizes a ‘glow in the dark’ golf ball and provides a creative and different experience for the user during the seasonal time change. This was a popular program originally introduced in the late 2010’s but was suspended during the pandemic and with the current closure of the Pro Shop facility. Potential annual revenue for evening alternate play is estimated at $7,800.

The BBQ and outdoor table area has been utilized for community rentals to host birthday parties, community group events, and internal City staff events over the past couple of years. This area continues to be a focus by golf staff to be enhanced to offer community groups an additional rentable programmable event space. Anticipated annual revenue from event rentals is estimated at $2000.

When the Pro Shop project is completed, the area can be utilized as a community meeting room that is currently lacking on the west side of the City. During the update for the Parks and Recreation Blueprint for the Future, this geographical area of the City was identified as lacking indoor community gathering spaces. The Pro Shop space can be used for community meetings, small events, senior functions (e.g., Bridge or Mahjong groups), and serve as a support space for hosting large-scale events including tournaments and races. The addition of a food vendor will also help provide lease revenue generation opportunities for the City.

Table 7: Estimated Annual Revenue from Alternative Sources Alternative Revenue Sources Estimated Annual Revenue
Meeting/Room Rentals $2,000
Private Rental Events $3,600
Food/Beverage Concessionaire $7,800
Night Golf Program $7,800
BBQ/Event Area $2,000
Full-Course Tournaments $4,200
Weddings/Cross Country Tournament $5,000
Planned CIP Projects – Pro Shop and Bridge
In addition to ongoing program improvements, two critical Capital Improvement Projects (CIPs) at the Laguna Lake Golf Course are planned but pending final direction from City Council. These projects are foundational to restoring full operations and supporting revenue-generating activities.
 Bridge Replacement (CIP 2001071) – Planned for FY 2026–27 with a budget of $600,000, the bridge replacement is a storm response and recovery project.

Completion of this project will restore safe access to the course, which is essential for hosting tournaments, regular play, and alternative revenue programs such as Night Golf. Funding for this project is authorized through the current CIP fund

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San Luis Obispo City CouncilFebruary 3, 2026

San Luis Obispo City Council
February 3, 2026