San Luis Obispo City Council
February 17, 2026

Item 6b Staff Agenda Correspondence Page 7
Regarding northbound cyclists seeking to turn left onto westbound Los Osos Valley Road, the current design maintains standard vehicular left-turn operations. Cyclists traveling northbound may merge into the left-turn lane and complete the turn as a vehicle would, or they may use a two-stage turn maneuver (crossing first and then repositioning to complete the turn during a subsequent signal phase). .

If Council is interested in further enhancing this movement, staff could evaluate the addition of a bicycle two-stage left-turn box (also known as a bike turn box) on the northbound approach. This treatment—similar to what is proposed on the eastbound Los Osos Valley Road approach—would provide a designated waiting area within the intersection to facilitate a more comfortable two-stage left-turn maneuver for cyclists.

Implementation of this measure would require additional traffic signal evaluation and striping design but could be explored as a refinement if directed by Council. 7) How much would it cost for “feasibility studies, environmental review and formal design work” to take the Madonna Shared-Use Path along the Madonna Road Overpass to the next stage?
Based on recent feasibility discussions with Caltrans following publication of the Council Agenda Report, it appears likely that advancing the Madonna Shared-Use Path across the Madonna Road overpass will require widening the existing Madonna Road bridge over US 101 or constructing a separate parallel pedestrian/bicycle bridge in order to safely extend the facility.

Item 6b Staff Agenda Correspondence Page 8
Based on comparable highway bridge projects of similar scale and complexity, staff estimates that preparation of a Project Initiation Document (PID)—including scoping, alternatives analysis, conceptual engineering, structural review, preliminary environmental review, and cost estimating—would likely cost approximately $300,000 to $500,000.

Advancing a project of this magnitude through environmental clearance and formal design to a shovel-ready phase could require total pre-construction funding in the range of $3 million to $5 million, depending on the selected alternative and associated environmental and structural requirements.

If Council is supportive of prioritizing advancement of this project prior to development of the FY 2027–29 Financial Plan, Public Works staff would need to evaluate current staffing capacity and funding availability. In addition, advancing this effort would likely require Council direction to defer or reprioritize other active projects or programs in order to accommodate the necessary resources. 8) Does the proposed work on Higuera street address removing the dirt/gravel parking lot driveway intruding into the bike path, located just north of the Chumash Village access? Did the City acquire the rights to remove this property? What is the plan for future right-of-way acquisition, and are there any options for protecting northbound bicyclists where they encounter the lane narrowing due to the narrower street width?
Efforts to construct permanent roadway widening, curb, gutter, and sidewalk improvements along the east side of Higuera Street between Margarita Avenue and Fontana Avenue have been underway for several years under a separate Capital Improvement Program (CIP) project.

Construction of those improvements, including removal of the dirt/gravel parking lot driveway area encroaching toward the bike lane, requires acquisition of additional off-site right-of-way. To date, attempts to secure the necessary right-ofway have not been successful. The City has not acquired the property rights needed to fully remove and reconstruct that frontage.

Earlier conceptual designs for the Higuera Complete Streets Project assumed that these widening improvements could be delivered in advance of, or concurrently with, the Complete Streets work. Due to right-of-way constraints, that assumption proved infeasible.

The current Complete Streets Project therefore includes partial roadway widening and temporary gutter/drainage improvements that can be constructed within the existing public right-of-way. These improvements do not preclude future full roadway widening if right-of-way acquisition is ultimately successful.

Item 6b Staff Agenda Correspondence Page 9
Regarding protection for northbound bicyclists through the approximately 200-foot constrained segment north of Chumash Drive: this stretch includes a bus stop and multiple driveways without formalized curb cuts. Due to these access points and the limited roadway width, installation of continuous vertical separation (such as curb-protected bike lanes or delineator posts) is not feasible at this time.

To improve visibility and awareness within these constraints, the project includes continuous dashed green pavement markings through the narrowed segment to highlight the shared space and increase driver awareness of bicyclists. While no physical separation is provided under the current design, additional protective measures could be revisited in the future if right-of-way acquisition is achieved and the corridor can be fully reconstructed.

See the attached plan excerpt for additional detail on the design treatment at this pinch point.
9) With the additive concrete barriers, are our fire vehicles capable of clearing them in case of emergency where the turning lane is unavailable? The proposed concrete barriers are not intended to be mounted by emergency vehicles or passenger vehicles. The barriers are approximately 6 inches in height with rounded edges. While it may be physically possible for certain vehicles to mount them in a dire emergency, the project design assumes that mounting the barriers is not required for standard emergency response or evacuation operations.

Item 6b Staff Agenda Correspondence Page 10
Project designs are reviewed with emergency service providers under the assumption that emergency vehicles should be able to operate within the available travel lanes and turning movements without the need to traverse vertical separation elements.

Similarly, while flexible delineator posts could potentially be driven over in an extreme situation, it is not desirable for emergency vehicles, or passenger vehicles, to rely on mounting vertical elements for routine access.

There are examples of vertical bikeway separators that can be more easily mounted by emergency vehicles or passenger vehicles, such as small rubber “armadillos”, low-height rounded rubber or concrete curbs; however, there are also trade-offs with these options:
 Any vertical element that can be easily mounted, will also be inherently less effective at preventing undesired vehicle encroachment into the bike lanes  If bikeway vertical features are designed to allow emergency vehicles to mount and straggle them, then taller non-mountable vertical elements, such as flex posts, need to be omitted or used very sparingly. This approach limits the vertical visibility of these low-height barriers, which can increase potential for accidently crashes into the vertical elements by vehicles and cyclists. See examples of low-height (3”-4”) mountable bikeway curbs in the City of Long Beach:
o Costa Del Sol Way Bikeway
o E Del Amo Boulevard Bikeway
It should also be noted that mountable low-height curb systems are typically constructed as cast-in-place concrete (poured directly onto the roadway surface).

Unlike the proposed pre-cast concrete barriers included in the project Bid Additive Alternative, cast-in-place curbs are not easily removable if future operational adjustments are desired.

If Council prefers a more mountable separator design, staff can further evaluate that option; however, it would involve balancing emergency flexibility, day-to-day safety performance, visibility, and long-term adaptability. 10)Do the flex post barriers create just as much additional cost/challenge for clearing the bike lanes, or is there a difference between how we clear the lane with each barrier type?
In general, ongoing bike lane sweeping costs are expected to be similar whether flex posts or concrete barriers are used—provided the bikeway width is insufficient to accommodate the City’s standard mechanical street sweeper, which requires approximately 11 feet of clear width.

Item 6b Staff Agenda Correspondence Page 11
Where the bikeway is narrower than that threshold, maintenance crews must use smaller, more specialized equipment or manual methods to clear debris, and that operational approach would be required regardless of barrier type.

There are, however, differences in durability and replacement costs. Flex posts typically have lower upfront costs but are more susceptible to damage over time and may require more frequent replacement. Concrete barriers are generally more durable and less likely to require routine replacement, but they have higher initial installation costs.

It is worth noting that the flex post mounting system proposed for this project is designed to allow relatively straightforward replacement compared to some other post systems, which can reduce labor time when repairs are needed. 11)Is the plan for the Walker Street closure completely in line with what is presented in the Mid-Higuera Enhancement Plan? I wasn't sure if the plans as presented here are a modification or a simplification of that vision. Is it only Walker between Pacific and Pismo that will be impacted? The proposed Walker Street closure is functionally consistent with the vision outlined in the Mid-Higuera Enhancement Plan; however, the current project represents a more modest, interim implementation rather than the full long-term buildout envisioned in that plan.

The Mid-Higuera Enhancement Plan contemplates a more robust transformation of Walker Street, including widening the roadway to create a formal cul-de-sac, raising the street to sidewalk grade, and constructing a permanent pedestrian plaza with landscaped planters, trees, and public art.

Advancing this long-term vision at this time would require:
 Significant additional capital funding,
 Acquisition of off-site private right-of-way to provide width for an emergency vehicle turnaround, and
 Additional hydraulic analysis and drainage improvements—the existing intersection is within the floodzone, so grading changes such as brining the street up to a sidewalk level would require more significant analysis and mitigation of flooding concerns.

The current project advances the functional and safety objective identified in the Mid-Higuera Enhancement Plan, closing one leg of the irregular intersection consistent with the Mid Higuera Enhancement Plan with more interim to improve safety and simplify operations, while implementing more interim improvements that can be constructed within the existing public right-of-way and available budget.

Item 6b Staff Agenda Correspondence Page 12
Importantly, the proposed design does not preclude future construction of the more permanent pedestrian plaza envisioned in the Mid-Higuera Enhancement Plan, should funding and right-of-way acquisition opportunities arise.

The closure only impacts Walker Street between Pacific Street and Pismo Street, consistent with the configuration shown in the Enhancement Plan.

Excerpt from Mid Higuera Enhancement Plan

Item 6b Staff Agenda Correspondence Page 13
Excerpt from Higuera Complete Street Plans
12)Does the section of Higuera between Bridge and Margarita see the highest bicycle traffic of this corridor?
Based on the latest traffic count data available, the average daily bicycle volumes along Higuera Street between Marsh and Los Osos Valley Road range from apx. 200-350 bikes/day.

In general, bike volumes are slightly higher north of Madonna Road than south of Madonna.

The segment between Bridge Street and Margarita had a volume of apx. 235 bikes/day, similar to other segments south of Madonna Road. Based on this data, the Bridge–Margarita segment does not appear to carry the highest bicycle volumes within this corridor.
13)I like all the language about monitoring and modifying the project based on performance. It seems like that mostly applies to removing components. Are we easily able to make pedestrian and bicycle infrastructure more robust in areas if we continue to have safety issues in particular areas? The ability to strengthen pedestrian and bicycle infrastructure depends on the type of improvements desired. Low-cost measures—such as additional radar speed feedback signs, extra green pavement markings, minor traffic signal adjustments, additional flex posts, or warning signs—can generally be installed quickly and at reasonable cost. More substantial measures—like adding concrete curbs, raising bike lanes to sidewalk level, major signal modifications, significant lighting upgrades, or intersection reconstruction—would require more time and funding. In monitoring “after project” conditions, staff will also take in public feedback and findings from crash data to guide future recommendations and areas for improvement.
14)If concrete curb separators are not included in the project, could they be added later? Are there additional costs associated with doing them later versus with the current project?
Yes, concrete curb separators can be added later if the Council chooses not to include them in the initial construction. There may be some additional cost due to mobilization and potential construction escalation, but it is not expected to be substantial.

It is important to note that some form of bikeway separation is required to meet the project’s current grant funding requirements. Deferring all vertical elements (flex posts and concrete curbs) could require relinquishing the grant, rescoping the project under non-grant funds, or pursuing future grants to fund these elements.

Item 6b Staff Agenda Correspondence Page 14
15)Do the estimated evacuation times account for the "evacuation signal timing plans" discussed on page 332?
No, the LADRIS software is a planning-level model and does not have the capability to reflect detailed traffic signal operations in estimating evacuation clearance times. The results provided in the evacuation study are assumed to be conservative, in that they do not reflect the recommendation to pre-program evacuation signal timing plans.
16)If the flex posts require more maintenance, how does the higher upfront cost of concrete curbs compare to the long term increased maintenance cost of the flex posts?
Based on a planning-level calculation, it is expected that over a 20-year timeframe, using concrete curbs (between Bridge Street and Margarita only) would reduce the maintenance costs associated with replacing flex posts by apx. $90,000-$120,000, but would incur an additional upfront construction cost of $300,000-$500,000. 17)Since the Elks Lane traffic signal is a required mitigation for the Prado Creek Bridge Project, is the signal fully funded from that project's budget? The current recommendation is to transfer $500,000 from the Prado Creek Bridge Project to the Complete Streets Project, which is estimated to cover the costs specific to this new traffic signal, excluding curb ramp upgrades, traffic control, paving, sign and striping costs, which will likely exceed this $500,000 amount and be covered from other project funding sources. If desired, the Council could direct staff to transfer additional funds from the Prado Creek Bridge Project if actual bids for the Higuera/Elks traffic signal come in higher than $500,000. 18)There are a few intersections along S. Higuera where bike boxes are being added to easy left turns for those on bikes. However, I note these features are not being proposed for the S. Higuera/Prado intersection or the Margarita/S. Higuera intersection. (p 354/355) Would these be appropriate additions for those two intersections? Why or why not?
Staff evaluated the feasibility of adding two-stage left-turn bike boxes at the noted intersections.
 At Higuera/Margarita, a northbound two-stage turn box could potentially be accommodated.
 At Higuera/Prado, and for the southbound direction at Higuera/Margarita, there is insufficient roadway width to accommodate bike boxes without impacting other critical elements.

It should also be noted that the Higuera/Prado intersection is planned to be reconstructed as a protected intersection as part of the Prado Creek Bridge Project. That future configuration is expected to significantly improve comfort and safety for cyclists making left turns on all approaches.

Item 6b Staff Agenda Correspondence Page 15
19)Page 359 of the packet shows the intersections at Bridge Street and South Higuera as well as Madonna/S. Higuera. Great changes are proposed for Bridge/S. Higuera. And there are also changes proposed for southbound bike/car traffic on South Higuera and for those turning right onto Madonna.

However, can you please clarify:
a) What intended path of travel would be for riders leaving the shopping center driveway, continuing onto Madonna?
As shown in the image below, cyclists exiting the Pacific Coast Center and desiring to continue westbound to Madonna Road would have two options:

1. Use the bike/pedestrian ramp at the northwest corner to access the westbound bike lane; or

2. Continue in the vehicle lane briefly and merge into the street-level westbound bike lane downstream.

Under the current and proposed signal phasing, no other vehicles are permitted to turn onto westbound Madonna Road concurrently with westbound cyclists. Therefore, under Option 2, cyclists would not encounter conflicting turning vehicle traffic, other than vehicles also exiting the shopping center driveway.
.
b) What safety enhancements are being proposed for bikes heading northbound on S. Higuera leading up to the intersection at South/S.

Higuera where there is currently a “choke point” where I believe several bike accidents have occurred?
See staff response to Question #3 above.

Item 6b Staff Agenda Correspondence Page 16
20)It appears that Additive Alternative A contains only the cost of concrete curbs? Does the estimated cost of Additive Alternative A at $258k include an estimated cost of installation as well?
a. If the estimated cost of the additive alternative is such a small cost, in relation to the rest of the cots of the total project, why not include it in the base bid?
b. Will the project come back to council after the bids are received to determine whether or not we want to include construction of the Additive Alternative A?
The estimated cost of Additive Alternative A is approximately $358,000 and includes materials, installation, and contingency.

These estimates are based on bid results from other cities that have used this specific type of custom pre-cast concrete curb. Because this product has not been widely used locally, actual bid costs could vary.

While Additive Alternative A represents a relatively small portion of the total project cost, staff is mindful of overall project cost, volatility in the local bidding environment, and limited available funding. Including concrete curbs as a bid additive provides flexibility to include or omit this feature depending on actual bid results and funding availability.

Current grant funding does not require a specific separator material, only that the approved quantity of protected bike lanes be delivered. Therefore, Council retains flexibility to implement concrete curbs now or in a future phase without risking current grant funding.

If desired, staff can return to Council for direction prior to construction contract award, regardless of whether bids allow funding of both the base project and Additive Alternative A.

ATTACHMENT
A – Updated Higuera Complete Streets Evacuation Study (Dated February 13, 2026)

Higuera Street Emergency Evacuation Analysis
Prepared by:

San Luis Obispo Community Fire Safe Council
Date:

February 13th, 2026
City of San Luis Obispo
Executive Summary
This report evaluates emergency evacuation conditions along the Higuera Street corridor and assesses the potential effects of the proposed Higuera Complete Street Project on evacuation performance. The analysis focuses on evacuation clearance time, route efficiency, and operational constraints under both fire and flood emergency scenarios.

Two evacuation zones, SLO-024 and SLO-025, were analyzed using conservative assumptions reflecting maximum allowable development and worst-case evacuation demand.

1. Purpose and Scope
The purpose of this study is to evaluate emergency evacuation conditions along the Higuera Street corridor and to assess changes in evacuation clearance time, route efficiency, and operational performance associated with implementation of the Higuera Complete Street Project. The analysis is intended to support emergency planning, transportation design review, and environmental documentation.

2. Emergency Scenarios Evaluated
Two emergency scenarios were evaluated independently based on known hazards affecting the Higuera corridor. Scenarios are not assumed to occur at the same time Scenario A – Fire or Flooding in San Luis Obispo Creek (Evacuation Zone SLO-024) This scenario models either a fire or flooding event affecting creek-adjacent neighborhoods west of Higuera Street. Zone SLO-024 contains mobile home parks, multifamily areas, and commercial parcels located close to the creek corridor, where hazards can develop quickly and restrict access.

Flooding may limit creek crossings, reduce roadway capacity, or obstruct access routes.

Fire conditions along the creek corridor can also generate rapid evacuation needs. This zone relies heavily on Higuera Street as its primary evacuation pathway, making it sensitive to congestion and roadway constraints.

Scenario B – Wildfire in South Hills Open Space (Evacuation Zone SLO-025) This scenario evaluates a South Hills wildfire requiring evacuation of the Margarita Area and surrounding neighborhoods. Zone SLO-025 covers a larger geographic area with both built and entitled parcels under current land-use designations.

Evacuation performance is influenced by total population loading, merging onto arterial routes, and traveling distance to safe areas. Compared with Zone SLO-024, the zone has more route options but a larger number of households, requiring careful modeling of demand and travel time.

3. Data Sources and Key Assumptions
The analysis uses conservative assumptions to reflect worst-case evacuation conditions and maximum possible population.

3.1 Roadway Network Data
County roadway centerline and functional classification data were used as the base transportation network. These were modified to incorporate the proposed Higuera Complete Street Project, including:
• Reduction to one vehicle lane in each direction (Bridge St. → Margarita Ave.) • Addition of a continuous center turn lane
• Reduced operating speeds (−5 mph corridor-wide) to represent traffic-calming features

3.2 Address, Land Use, and Population Data
Residential address data were sourced from City of San Luis Obispo land-use and zoning datasets. Evacuation demand reflects the maximum population allowed under existing zones, regardless of whether all units are currently developed. This ensures modeling accounts for full build-out conditions and long-term emergency planning needs.

3.3 Vehicle Assumptions
A standard assumption of two vehicles per address was applied to all residential units.

This is consistent with regional household vehicle ownership and provides a conservative planning-level estimate of evacuation demand.

3.4 Mobile Home Parks
Mobile home parks with a single parcel address require manual population estimation.

Each park’s total number of dwelling units was counted using satellite imagery to identify individual mobile homes, ensuring accurate representation of evacuation demand in higher-density communities.

3.5 LADRIS Evacuation Modeling Tool
LADRIS (Life and Death Response Information System) served as the modeling platform for this analysis. LADRIS simulates evacuation behavior by loading population and vehicle demand onto the roadway network using GIS data, route assignment logic, and congestion modeling.

It is a planning-level tool designed to compare evacuation performance across scenarios, not a detailed traffic engineering simulator. LADRIS does not fully account for traffic signal operations, stop controls, officer-directed traffic, contraflow, or special evacuation signal timing plans.

Therefore, results represent planning-level estimates intended to guide emergency preparedness, roadway design decisions, and policy, not precise real-time operational forecasts.

4. Transportation Network Conditions
Existing roadway lane configurations, intersection geometry, traffic control, and prevailing operating speeds were assumed for baseline conditions. The primary evacuation routes for this area are southbound Higuera Street toward Los Osos Valley Road, northbound Higuera Street toward Madonna Road, eastbound on Tank Farm Road, and eastbound on Prado Road toward northbound Highway 101. This analysis also assumes that Prado Road to Highway 101 will be closed during the flooding scenario.

The Complete Street Project configuration reflects reduced vehicle lanes between Bridge Street and Margarita Avenue, the addition of a continuous center turn lane, and an assumed five-mile-per-hour reduction in operating speeds along the Higuera Street corridor due to proposed traffic-calming and complete street design features such as speed feedback signs, protected bike lanes, and reduced traffic lane widths.

5. Evacuation Clearance Time Results
Evacuation clearance time represents the total time required for all vehicles within an evacuation zone to reach a designated safe area under emergency conditions.

5.1 Evacuation Zone SLO-024
Creekside / West of Higuera – Fire and Flood Scenarios
• Total residences to be evacuated: 349
• Total evacuating vehicles: 6,932
Fire Scenario A:

Existing Conditions – Total Evacuation Time: 1 hour 40 minutes Fire Scenario A:

Complete Street Project – Total Evacuation Time: 1 hour 54 minutes

5.1 Evacuation Zone SLO-024
Flood Scenario A:

Existing Conditions – Total Evacuation Time: 1 hour 47 minutes Flood Scenario A:

Complete Street Project – Total Evacuation Time: 1 hour 57 minutes Note: Fire and Flood scenarios use identical demand assumptions. Results differ due to network constraints, the closure of Prado Rd due to flood history, and routing conditions specific to each scenario.

5.2 Evacuation Zone SLO-025
South Hills / Margarita Area – Fire Scenarios
• Total addresses to be evacuated: 871
• Total evacuating vehicles: 4,740
Fire Scenario B:

Existing Conditions – Total Evacuation Time: 1 hour 35 minutes Fire Scenario B:

Complete Street Project – Total Evacuation Time: 1 hour 42 minutes

6. Summary of Evacuation Clearance Times
Evacuation Zone Emergency Type Roadway Condition Clearance Time SLO-024 Fire Existing 1 hr 40 min
SLO-024 Fire Complete Street 1 hr 54 min
SLO-024 Flood Existing 1 hr 47 min
SLO-024 Flood Complete Street 1 hr 57 min
SLO-025 Fire Existing 1 hr 35 min
SLO-025 Fire Complete Street 1 hr 42 min

7. Conclusions and Key Findings
The analysis indicates that the Higuera Complete Street Project would result in increases in evacuation clearance times for both fire and flood scenarios within Evacuation Zones SLO-024 and SLO-025. These changes are primarily associated with reduced vehicular capacity and lower operating speeds consistent with the project’s safety and traffic-calming objectives. Importantly, the modeled evacuation clearance times remain within the City’s two-hour performance benchmark used in recent evacuation and emergency planning evaluations. With early evacuation activation, coordinated traffic management, pre-programmed evacuation signal timing, and effective public communication, the transportation network is expected to continue to function acceptably under emergency conditions.

End

Item 6b
Department: Public Works
Cost Center: 9501
For Agenda of: 2/17/2026
Placement: Public Hearing
Estimated Time: 60 min
FROM: Aaron Floyd, Public Works & Utilities Director
Prepared By: Luke Schwartz, Transportation Manager
SUBJECT: REQUEST TO ADVERTISE THE HIGUERA COMPLETE STREETS AND REVISED 50 HIGUERA WIDENING PROJECTS FOR CONSTRUCTION

RECOMMENDATION
Higuera Complete Streets Project

1. Adopt a Draft Resolution entitled, “A Resolution of the City Council of the City of San Luis Obispo, California, Authorizing Appropriation of $2,000,000 from the Infrastructure Investment Fund to support the Higuera Complete Streets Project, Specification Number 2001057” (Attachment A); and,

2. Adopt a Draft Resolution entitled, “A Resolution of the City Council of the City of San Luis Obispo, California, Accepting a Future Automobile Level of Service Deficiency at the Intersection of Higuera Street and Los Osos Valley Road in Connection with the Higuera Complete Streets Project, Specification Number 2001057” (Attachment F); and,

3. Authorize transfers to the Higuera Complete Streets Project (Account 2001057) from the following capital project accounts:
a. $500,000 from Prado Creek Bridge Replacement (No. 2091252) b. $204,847 from Active Transportation Plan Implementation (No. 2000608) c. $100,000 from Vision Zero Implementation (No. 2000073) d. $50,000 from the Traffic Signal Maintenance & Replacements (No. 2001003) e. $120,000 from Water Valve Cover Adjustments (No. 2001005) f. $50,000 from Sewer Valve Cover Adjustments (No. 2000084); and,

4. Approve the project plans and specifications, authorize the City Engineer to approve any minor refinements to final plans and specifications prior to advertisement, and authorize staff to advertise for bids for the Higuera Complete Streets Project, Specification Number 2001059; and,

5. Authorize the City Manager to award the Construction Contract for the Higuera Complete Streets Project pursuant to Section 3.24.190 of the Municipal Code for the bid total, if the lowest responsible bid is within the publicly disclosed funding amount of $12,960,700; and,

6. Authorize the City Engineer to approve Contract Change Orders for the Higuera Complete Streets Project up to the available project budget, including any amendments authorized by the City Manager; and,

Item 6b

7. Authorize the use of up to $200,000 in unspent Higuera Complete Streets Project capital funds to support increased street sweeping obligations following project completion.
50 Higuera Widening Project

8. Approve project plans and specifications for the revised 50 Higuera Widening Project, Specification No. 2091294; and,

9. Authorize staff to advertise for bids for the 50 Higuera Widening Project, Specification No. 2091294; and,

10.Authorize the City Manager to award the Construction Contract for the 50 Higuera Widening Project if the lowest responsible bid is within the Engineer’s Estimate of $315,000; and,

11.Authorize the City Engineer to approve Contract Change Orders for the 50 Higuera Widening Project up to the available project budget; and,

12.Approve the transfer of $22,600 from the 50 Higuera Widening Project Account (No. 2091294) to the New Streetlights CIP Account (No. 2001016); and,

13. Authorize the Finance Director to approve the transfer of any remaining unspent State Urban Highway Account project funds not required for construction of the 50 Higuera Widening Project to the Higuera Complete Streets Project (Specification No. 2001057).

REPORT-IN-BRIEF
This agenda item requests that the City Council approve plans and specifications and authorize two closely-related projects on the Higuera Street corridor to be advertised for construction:

1. the Higuera Complete Streets Project, and

2. the revised 50 Higuera Widening Project.

While both projects advance traffic safety improvements on Higuera Street, they have different scopes, funding sources, and grant-related delivery requirements, and must be constructed in a specific sequence under separate contracts. The following report provides more information on each project, including the relationship between the two.

Higuera Complete Streets
The Higuera Complete Streets Project (the “Complete Streets Project”) advances the City’s highest-priority infrastructure recommendation identified in the 2021 Active Transportation Plan (ATP) and supports the mode shift priorities of the General Plan and Climate Action Plan, the Vision Zero goal to reduce severe traffic crashes, and the City’s Major Goal of Infrastructure and Sustainable Transportation. This project has been consistently ranked as the top infrastructure priority by the City’s Active Transportation Committee (ATC) and prioritized by the City Council for funding in the City’s Capital Improvement Plan.

Item 6b
The Complete Street Project advances improvements to walking, bicycling and overall traffic safety along the Higuera Street corridor from Marsh Street to Los Osos Valley Road and strengthens east-west active transportation connections via Madonna Road and the Meadow Park neighborhood. Improvements include pavement rehabilitation, refreshed roadway striping, more than 50 enhanced crosswalks, ADA curb ramp and signal upgrades, a new traffic signal at Higuera/Elks, over two miles of physically protected bike lanes, a four-lane to three-lane “road diet”1 between Bridge Street and Margarita, and other measures to reduce illegal motor vehicle speeds and improve safety for all road users.

Final designs were informed by public input provided over nearly three years of project development and based on specific feedback provided by the City Council during the February 4, 2025 Council Study Session. Emergency access and evacuation needs were also a key consideration in guiding final project planning and recommendations for preand post-project monitoring and ongoing coordination between City Public Works and emergency services, as discussed in detail herein.

The Complete Streets Project is fully designed and construction-ready, with over $9 million in secured outside grant funding, including $6.9 million from the Caltrans Active Transportation Program (ATP Cycle 6). The purpose of this item is to request that the Council approve the final Project plans and specifications, approve additional funding appropriations needed to advance to construction, and authorize staff to advertise this for construction bids.
50 Higuera Widening Project:

In addition to the Complete Streets Project, a separate, but related capital project is also presented herein—the revised 50 Higuera Widening Project (the “Road Widening Project”). This project has been in development for several years and was already approved for construction by the City Council on April 15, 2025. However, due to significant environmental concerns involving designated heritage trees that were discovered prior to breaking ground, the Road Widening Project is no longer considered feasible at this time as originally designed. The purpose of the Road Widening Project, which has been advanced to this stage via a Federal Highway Safety Improvement Program (HSIP) grant, is to provide width for a center turn lane on Higuera Street between Bridge Street and Elks Lane to address an ongoing collision pattern with left turns in/out of driveways. A revised design approach has been prepared to accomplish the intent of adding width for a center turn lane, albeit with a smaller area of road widening and revised roadway striping configuration. The roadway widening extents that remain will provide width to add a center turn lane at Bridge Street, which could not be accomplished without widening the roadway width. South of Bridge Street, the 50 Higuera Widening Project would effectively advance a portion of the “road diet” planned with the Higuera Complete Streets Project, but needs to be advanced prior to the Complete Streets Project and via

1 A “road diet” involves motor vehicle lane reductions or narrowing, often involving reallocation of this roadway width for other uses, such as addition of on-street parking, turn lanes, bicycle lanes or pedestrian facilities. Per FHWA, 4-lane to 3-lane road are a proven safety countermeasure with potential to reduce crashes by 19-47%.

Item 6b
a separate construction contract due to federal grant restrictions. This project will carry forward improvements identified in the Higuera Complete Streets Project so that it is a seamless transition for all roadway users. Staff is requesting that Council approve the revised project plans and specifications and authorize staff to advertise the revised Road Widening Project for construction.

Pending Council approval, both the Complete Streets Project and Road Widening Project would be advertised for construction in winter of 2026. The Road Widening Project would start construction in spring 2026 and take approximately one month to complete. The Complete Streets Project would most likely begin construction early summer 2026 following completion of the Road Widening Project, and continue through summer 2027.

POLICY CONTEXT
Higuera Complete Streets Project
The City’s ATP recommends improvements to bicycling and walking along the Higuera Street corridor as a Tier 1 (highest priority) project. The Complete Streets Project advances these improvements along Higuera Street and improves connectivity to other cross-town active transportation routes to the east and west of the Higuera corridor. To date, the Complete Streets Project has been prioritized in the 2023-25 and 2025-27 Capital Improvement Plans for funding to support planning, environmental review, design and construction, and the City’s Active Transportation Committee (ATC) identified this project as their top funding priority for FY2023-25 and FY2025-27.

The Complete Streets Project supports the City’s General Plan Circulation Element and Climate Action Plan’s sustainable transportation goals and mode shift objectives, and directly aligns with the City’s current Major City Goal of “Infrastructure and Sustainable Transportation”.

The Complete Streets Project also advances the planned closure of Walker Street at Higuera as recommended in the Mid-Higuera Enhancement Plan, and implements several safety improvements recommended in the City’s Draft Vision Zero Action Plan2.

As noted in the Draft Vision Zero Action Plan, Higuera Street is part of the City’s HighInjury Network—the 10% of city road miles where 75% of fatal and severe injury collisions have occurred. Safety improvement recommendations were identified based on a datadriven analysis of ongoing crash trends along the Higuera Street corridor, including 11 fatal or severe injury crashes that have occurred on Higuera Street between Marsh and Los Osos Valley Road between 2018 and 2023. Over this time period, approximately 29% of all fatal crashes in San Luis Obispo occurred on this segment of Higuera Street.

The recommended actions for the Complete Streets Project funding appropriation and contract award are supported by the City Council’s adopted Capital Improvement Plan

2 The Vision Zero Action Plan is currently in draft form and scheduled for final review and potential adoption by the City Council in spring of 2026. Visit the City’s Traffic Safety (Vision Zero) Website for more information on the Action Plan and traffic safety data.

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(CIP) as well as its Fund Balance and Reserve Policy. The City’s Fund Balance and Reserve Policy states that the City will maintain a designated fund for the purpose of funding infrastructure projects that contribute to improved economic development and enhanced quality of life in San Luis Obispo—the Infrastructure Investment Fund (IIF). The use of IIF funds must support a project that would not otherwise be feasible due to economic timing or issues outside of control of the project proponents or the City. The recommended use of the IIF to supplement the Complete Streets Project is consistent with this policy in that these funds would support a project that would improve community safety and mobility, and would not otherwise be economically feasible without this funding, and will offset construction cost escalations that have occurred since the project was originally scoped. This action will also leverage and avoid forfeiture of the more than $9 million in outside grant funding already secured for the project. 50 Higuera Widening Project
The City’s General Plan Circulation Element and Mid-Higuera Enhancement Plan identify plans to widen various segments of Higuera Street to provide width for continuous center medians/left-turn lanes. The 50 Higuera Widening Project (“Road Widening Project”) would accomplish the goal of providing a center turn lane along the stretch of Higuera Street between Bridge Street and Elks Lane, while also advancing traffic safety recommendations from the City’s Draft Vision Zero Action Plan for this portion of Higuera Street. The Widening Project would not advance the full road widening extent as originally proposed and as contemplated in the Circulation Element and Mid-Higuera Enhancement Plan at this time due to environmental constraints but would not preclude future implementation of further road widening.

With regards to both the Complete Streets and Road Widening Projects, California Government Code §830.6 establishes design immunity, protecting public entities from liability for injuries caused by a plan or design of public improvements when the design was approved in advance by a discretionary authority and supported by substantial evidence, even if the design later proves dangerous. The recommendation for the City Council to approve the project plans, and to authorize the City Engineer to approve any minor refinements to the project plans prior to construction advertisement, helps affirm the City’s design immunity in advancing these projects.

DISCUSSION
Higuera Complete Streets Project Background
In 2021, the City Council adopted the City’s first ATP, providing a blueprint to improve bicycling and walking as modes of transportation and to support the City’s climate action, mode shift, and traffic safety goals. The ATP identifies a list of infrastructure projects organized by tier, with “Tier 1” projects representing the highest-priority projects with the greatest potential to increase bicycle and pedestrian mode share and reduce existing collision trends. Following adoption of the ATP, the City’s Active Transportation Committee (ATC) ranked the Higuera Street corridor as the top ATP Tier 1 project to advance for development. Since early 2022, staff have completed preliminary planning,

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secured over $9 million in outside grant funding, completed a traffic operations study and environmental technical studies, and conducted significant public outreach, including a Council Study Session held on February 4, 2025 (see section further below for more details on Study Session feedback). Final construction documents are now complete, and staff is requesting that the Council approve final plans and specifications and authorize advertisement of this project for construction bids.

Higuera Complete Streets Project Scope
The Project scope includes Higuera Street as a primary north/south backbone corridor from Marsh Street south to Los Osos Valley Road, with additional improvements along Madonna Road to the west and through the Meadow Park neighborhood to the east to complete connections between the Higuera Street corridor and other prominent active transportation routes to the east and west. A project vicinity map is provided below.

The project includes improvements for all road users, traffic calming elements to address illegal speeding, as well as enhancements to improve safety. At its core, the project repurposes existing street width to improve safety, reduce severe crashes, and add protected space for people walking and biking, while maintaining access for emergency vehicles. Below are some of the improvements included in the project plans:
a) Pavement repairs and roadway sealing along full project extents b) >50 upgraded/new pedestrian crosswalks, ADA upgrades at >70 pedestrian ramps, addition of ADA audible pedestrian signals at six (6) intersections c) Closure of Walker Street at Higuera/Pacific as recommended in the Mid-Higuera Enhancement Plan
d) Installation of a new traffic signal at the Higuera/Elks intersection e) High-visibility traffic signal backplates with yellow reflective borders to reduce red light running at all signals within Project limits
f) Addition of protected only left turns (green arrow only for lefts) at the Higuera/Los Osos Valley Road intersection
g) Addition of dedicated bicycle crossing traffic signal phases on southbound Higuera Street at Madonna and Los Osos Valley Road intersections h) Addition of radar speed feedback signs to discourage illegal speeding i) Reconfiguration of Higuera Street to one auto lane in each direction from just north of Margarita Avenue to just south of Bridge Street (“road diet”) to provide width for a center median/turn lane, buffered/protected bike lanes, and to reduce speeding. No traffic lane reductions are proposed anywhere else on Higuera Street. j) Neighborhood greenway connections to Hawthorne Elementary School and Broad Street, including traffic calming within the Meadow Park neighborhood on streets with existing speeding concerns
k) Addition of green bike lane markings to increase visibility at intersection and driveway conflict areas
l) Installation of over two (2) miles of physically protected bike lanes (see focused discussion later in this report regarding bikeway separation). m) Addition of Emergency Vehicle Preemption (EVP) equipment at all City-controlled traffic signals currently lacking this equipment within project limits.

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Figure 1: Higuera Complete Streets Project Vicinity Map

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Final Complete Streets Project plans and specifications are provided for review. A simplified summary of the Higuera Complete Streets Project improvements is also provided as Attachment B.

February 2025 Higuera Complete Streets Council Study Session Feedback On February 4, 2025, a City Council Study Session3 was held to present draft (65%-level) project designs and invite input from the community and Council to guide final designs.

Specific feedback provided by the Council, is summarized as follows:

1. Higuera Street Road Diet Limits – The Council majority supported retaining the limits of the proposed 4-lane to 3-lane “road diet” on Higuera Street between Bridge Street and just north of Margarita Avenue as initially proposed, with additional direction to pursue expanding width of the center turn lane and timing of new Higuera/Elks traffic signal to improve access for drivers exiting the Chumash Village driveway.

2. Protected Bikeway Separation – The Council majority was supportive of using flex posts as vertical separation for protected bike lanes along most of the corridor but supported trying concrete curbs for bikeway separation along the “road diet” segment of Higuera Street between Bridge Street and Margarita where sufficient width is available, if financially feasible. Council also provided direction to make any concrete curbs as visible as possible and expressed support for designing concrete bikeway separation so that it could be modified or removed in the future,

3 For more information on February 4, 2025, Council Study Session, see staff report and meeting minutes (see Agenda Item 7).

Figure 2: Proposed Road Diet Limits on Higuera Street

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if needed, without significant effort/cost.

3. Higuera Street & Los Osos Valley Road Design – The Council majority supported the Study Session “Option 2” design strategy for the Higuera/Los Osos Valley Road intersection, which involved adding a dedicated bicycle signal phase to separate the southbound bike lane from conflicts with right-turning vehicle traffic.

4. Madonna Overpass Bikeway – The Council majority provided feedback to staff to continue further planning and design efforts for a potential shared-use path on Madonna Road as a future project following the Higuera Complete Streets Project, as staffing and funding resources allow. (Preliminary concept design provided here).

Staff has incorporated this feedback into the final Project plans, but would like to highlight the following updates:
 Chumash Drive Access – While Council direction at the February 2025 Study Session did not recommend modifying the proposed Higuera Street road diet limits to avoid reducing traffic lanes at the Chumash Drive driveway, staff has conducted additional analysis and incorporated recommendations into the final project designs and postproject monitoring strategies to try and reduce potential concerns regarding ingress and egress for Chumash Drive residents.
a) A focused analysis of traffic operations at the Higuera Street/Chumash Drive intersection for existing and future traffic conditions concluded that the Complete Streets Project would add 3-5 seconds/vehicle of additional delay on average exiting Chumash Drive during peak periods, add no additional delay entering Chumash Drive, and the intersection would operate at acceptable level of service (LOS) C or better during peak hour traffic periods with or without the project.
b) A signal warrant analysis was conducted for the Higuera/Chumash Drive intersection based on California Manual on Uniform Traffic Control Devices (CAMUTCD) standards to confirm if a traffic signal could be considered for this intersection. Based on current traffic conditions and state engineering standards, a traffic signal is not currently warranted at this location. c) It is expected that the new traffic signal at the Higuera/Elks intersection will create more gaps in southbound traffic flows downstream on Higuera at Chumash Drive, which should create more opportunities for drivers to turn left when exiting Chumash Drive compared to existing conditions. The traffic operations analysis results noted above conservatively do not reflect the potential benefits of this new upstream traffic signal. d) Radar speed feedback signs have been added to the project plans, including signs placed for eastbound and westbound traffic upstream of the Chumash Drive intersection. The intent of these signs are to encourage slower speeds on Higuera Street approaching Chumash Drive, which can make it easier for drivers exiting Chumash Village to find gaps in traffic to turn onto Higuera.

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e) Additional red curb paint and NO PARKING signs were installed at Chumash Drive in 2025 to address concerns with illegal parking in the driveway line-ofwight. Final plans for the Complete Street Project further reinforce these parking restrictions and increase the width of the center turn lane, which provides more flexibility for drivers to turn left out of Chumash Drive in two stages and more clearance for emergency vehicle response. The graphics below provide more detail on the project designs at the Chumash Drive intersection. The plans also add high-visibility ladder crosswalk markings to increase visibility of pedestrians at this intersection. f) Staff recommends collecting existing and post-project data on average delays for drivers entering/exiting Chumash Village to confirm potential increases in driver delay. Results will be shared with the City Council, and potential remains to implement striping modifications in the future to restore the existing traffic lane configuration at this location if the City Council determines that potential increases in delay are unacceptable. See further detail later in this report on post-project monitoring strategies.

Existing and proposed street designs at the Higuera Street/Chumash Drive intersection are further illustrated in the figures below.

Figure 3: Existing and Proposed Street Configuration of Higuera Street at Chumash Drive (Cross Section View)

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Figure 4: Existing and Proposed Street Configuration of Higuera Street at Chumash Drive (Birds Eye View)
 Update on Protected Bikeway Separation – The Final Plans include the addition of pre-fabricated concrete curbs for protected bikeway separation along the “road diet” segment of Higuera. Pre-cast curbs are manufactured off site, then placed directly on top of the roadway and pinned into place (imagine a large parking lot wheel stop), so that they can be moved/removed easily. However, due to cost concerns, these concrete bike curbs are included in the current construction documents as a “Bid Additive Alternate”, with flex posts included as the exclusive form of bikeway separation in the Project “Base Bid”. Concrete curbs are estimated to add $300,000-

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$500,000 in project costs, and there is concern that there may be insufficient funding to accommodate this if bid prices exceed current estimates. For this reason, staff recommends bidding the concrete curbs as an “additive alternate”, which will help confirm the exact cost for this design option and provide flexibility for staff to (a) choose to include this component in the construction contract award if funding allows, or (b) install flex posts only as the “base bid” if current funding cannot support adding the concrete features.

Figure 5: Example Photo of Pre-Cast Concrete Bikeway Curbs in Bid Additive Alternative for Higuera (Bridge to Margarita)
 Update on Madonna Shared-Use Path – Staff has progressed as far as current funding allows for development of preliminary plans for a future shared-use path along the Madonna Road Overpass. While the ATC, City Council, and community members have expressed clear interest in advancing this as a future project, no funding is currently programmed in the 2025-27 Financial Plan to advance with further feasibility studies, environmental review, or formal design work. Staff has a coordination meeting scheduled with Caltrans in early 2026 to discuss preliminary concepts, feasibility, and project development path moving forward, which will help guide future staffing and financial resource planning if Council supports prioritizing this project for funding in future budgeting opportunities. It should be noted that there are several complex considerations and unknowns that may affect the path forward with this project, including potential constraints with modifying the existing Madonna Road Overcrossing bridge structure, drainage and utility conflicts, and need for Caltrans review, permitting and approval of proposed designs, including a likely need for approval of features that do not meet Caltrans design standards for traffic lane and shoulder widths, which are more conservative than requirements for a local city street.

The current design approach for the Higuera/Madonna intersection provides benefits with the current bikeway configuration on Madonna Road, while also allowing for a seamless connection to a future shared-use path on the north side of Madonna Road, if this path extension can be constructed in the future, avoiding the need for costly reconstruction of this intersection again in the future.

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Background on 50 Higuera Widening Project and Revised Design On April 15, 2025, the City Council approved plans and specifications and authorized staff to advertise the 50 Higuera Widening Project for construction. Given recent City experience with tree conflicts on major capital projects, staff elected to reevaluate potential impacts on the heritage trees located adjacent to the project before initiating construction and commissioned an updated arborist evaluation prior to breaking ground.

As originally planned, this project included roadway widening along a 600-foot stretch of Higuera Street fronting the Caltrans District 5 offices at 50 Higuera Street. The primary intent of this road widening was to provide additional width for a two-way left turn lane— the existing roadway has two lanes in each direction and no left turn lanes, which contributes to an ongoing trend of crashes at driveways and intersections. For reference, the proposed limits of road widening, as originally planned, are shown in the figure below (Figure 4).

The City previously secured federal grant funding through the Highway Safety Improvement Program (HSIP), completed environmental review, plans and specifications, and secured easements from Caltrans needed to construct the Project.

However, staff have since encountered significant and unresolvable constraints that will not allow for construction of this project as originally envisioned.

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Figure 5: 50 Higuera Road Widening Extent as Originally Planned Environmental Constraint Precluding Original 50 Higuera Roadway Widening Design Both California Environmental Quality Act (CEQA) and National Environmental Policy Act (NEPA) environmental review were previously completed for the Road Widening Project.

As part of the review, an independent Arborist Report was prepared in 2016 to evaluate potential impacts to existing trees that exist on Caltrans property along the 50 Higuera Street frontage, including seven (7) Heritage Trees4. These trees were planted between 1930 and 1950 and officially designated as Heritage Trees by the City Council on September 7, 2010, due to their unique addition to the historic and horticultural development of the city. More details are provided in the September 7, 2010, staff report and corresponding resolution.

4 The City’s website provides more information on the Heritage Tree Program. A GIS map with more information on specific heritage trees in San Luis Obispo is also available here.

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Figure 6: Incense Cedar and California Sycamore Heritage Trees Fronting 50 Higuera Street
The road widening would encroach near these trees, but the 2016 Arborist report concluded that the trees could be preserved by modifying the alignment of a portion of the new sidewalk and by implementing a tree protection plan during construction.

Preservation of these trees was an important assumption in the CEQA/NEPA environmental impact determination for the original project. Project designs and construction specifications were previously finalized in accordance with these recommendations.

Considering significant challenges with unanticipated tree conflicts encountered during construction of other recent City capital projects (including the Mission Plaza Enhancements Project and the Cultural Arts District Parking Structure), in spring of 2025, staff decided to commission an updated Arborist Report from a third-party consultant out of an abundance of caution before initiating construction on the 50 Higuera Widening Project. Unfortunately, the updated 2025 Arborist Report presented more troublesome findings regarding tree conflicts and concluded that (a) the proposed road widening would present a severe risk to several of these Heritage Trees, and (b) even a well-crafted tree protection plan could not reasonably shield these trees from a high likelihood of long-term decline, structural instability, or death. The City Arborist has conducted additional field observations and reviewed the updated 2025 Arborist Report and concurs with the finding that the road widening project as originally planned would present significant risk to these Heritage Trees that cannot be effectively mitigated.

Per Section 12.24 of the City Municipal Code (Tree Regulations), designated heritage trees must be protected and maintained and are prohibited from removal unless the City Arborist authorizes the removal based on poor tree health or hazard to public safety or property. At this time, there is insufficient justification to remove these trees based on these factors. Removal of these Heritage Trees or proceeding with construction despite the documented risk of causing severe harm to these trees would not only conflict with City policy but would also conflict with the previous CEQA and NEPA environmental approvals for this project.

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Based on these concerns, staff has concluded that the 50 Higuera Widening Project could not proceed as originally planned, and a modified project design is recommended with this staff report.
50 Higuera Widening Project Redesign
Staff is proposing a revised design for the Road Widening Project that would accomplish the primary intent of this safety project—provide a center left turn lane along this street segment—through roadway restriping and a smaller area of road widening near Bridge Street where there are no tree impacts.

The modified design would involve restriping the two (2) existing northbound traffic lanes on Higuera Street between Elks Lane and Bridge Street to one (1) through traffic lane and one (1) one center turn lane. This design would provide the safety benefits of providing a two-way left-turn lane, as required per the HSIP grant, without requiring the full road widening and risking tree impacts. Essentially, this would implement half of the future road diet proposed with the Higuera Complete Streets Project (see further discussion on the Complete Streets Project below). Attachment E shows the typical street cross section for (a) the roadway widening project as originally envisioned, (b) the revised project design, and (c) the proposed ultimate cross section with completion of the future Higuera Complete Streets Project.

Final plans and specifications for the revised project have been prepared, and the modified design approach has been approved by Caltrans, who administers the federal HSIP grant program in California. The revised design continues to meet the safety objectives and grant requirements of the HSIP program. Staff is now requesting that Council approve these construction documents and authorize staff to advertise the project for construction bids.

Relationship between Higuera Complete Streets and 50 Higuera Widening Projects Ideally, the road widening proposed with the 50 Higuera Widening Project would simply be added to the Complete Streets Project plans and implemented cohesively under a single construction contract. However, because the 50 Higuera Widening Project includes funding from a federal HSIP grant, incorporating this work into the Complete Streets Project would in turn “federalize” the Complete Streets Project, adding the need for additional environmental review per federal standards (NEPA), more complex and onerous bidding requirements, financial reporting, and administrative obligations that come with a federally funded project. Failure to construct the 50 Higuera Widening improvements per federal requirements could require the City to re-pay the approximately $400,000 in HSIP grant funds already expended for pre-construction work. For this reason, staff recommends advancing these improvements as two stand-alone construction projects. See “Next Steps” discussion below for more information on construction timing of each project.

Emergency Response and Evacuation Considerations
Based on a detailed review of project plans and analysis of evacuation considerations

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with city emergency services, staff does not expect the proposed improvements to substantially interfere with regular emergency response or the ability of properties to effectively evacuate along the Higuera Street corridor during an emergency event. While certain street design strategies—specifically the proposed traffic lane reductions (“road diet”) and traffic calming features (i.e. lane narrowing, protected bike lane vertical elements)—are likely to result in modest increases in evacuation times compared to existing conditions, total evacuation clearance times along the Higuera Street corridor are estimated to remain within typical benchmarks used for urban evacuation planning. Still, as discussed further below, Public Works staff is committed to ongoing monitoring and coordination with local emergency services during and after construction of these improvements, and is prepared to implement minor refinements to project designs if needed to address unanticipated concerns. See detailed discussion below for more information on emergency response and evacuation analysis.

While the 50 Higuera Widening and Higuera Complete Streets Projects have been designed to ensure compliance with all state and local requirements for emergency vehicle access, as discussed at the February 2025 City Council Study Session, it is also important to review final design details closely with emergency service providers, specifically the City Fire Department (SLO Fire) and Police Departments (SLO PD) to (a) minimize potential for increases in emergency response delays and (b) ensure that the proposed Project would not present any significant impediment to the ability to evacuate during a large-scale emergency event.

Balancing street designs that prioritize day-to-day traffic safety while simultaneously accommodating rapid emergency response and surge traffic during potential evacuation events is a constantly evolving challenge. Design elements that are proven traffic safety countermeasures—such as narrower auto lanes, road diets, separated bike lanes, and enhanced pedestrian crossings—can reduce illegal speeding and improve safety under normal conditions, but may also introduce friction for emergency vehicles that need to move quickly and bypass traffic during emergency events. City Public Works and emergency services (SLO Fire and SLO PD) have been collaborating closely on this topic through development of the Draft Vision Zero Action Plan and will continue to work in unison to make informed recommendations on each roadway improvement that balance these priorities with an overarching goal to improve overall public safety.

Based on previous review of the Higuera Complete Streets Project with emergency services, the following design refinements have been incorporated into final project plans to reduce potential for impacts to day-to-day emergency response:
a) Flex posts are used as the primary form of protected bikeway separation. Flex posts have a narrow profile and can be easily adjusted/removed if needed or mounted by a vehicle in a dire emergency. Bikeway vertical elements are omitted at intersection approaches, near fire hydrants, and where raised center medians exist to retain extra road clearance for emergency vehicles. b) Wherever possible, the width of the striped center turn lane/median on Higuera has been increased to allow more flexibility for emergency vehicles to use this

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space to bypass other vehicles during an emergency.
c) Emergency Vehicle Pre-emption Equipment (EVP)5 will be added as part of the project at all city-owned traffic signals within the project limits that currently lack EVP equipment, such as Higuera/South, Higuera/Madonna and Higuera/Margarita. GPS EVP detection equipment is added (in addition to existing infrared-based detection) at select intersections to improve upstream detection and add more time to clear traffic ahead of an emergency vehicle. d) EVP equipment upgrades for SLO Fire and SLO PD vehicles have been funded as part of the South/King Crossing CIP Project and are expected to be installed prior to completion of the Higuera Complete Streets Project. e) The closure of Walker at Higuera has been designed in a way that closes the street to unauthorized vehicles, while preserving pedestrian safety and retaining access for maintenance and emergency response when needed by using removable bollards.

Further, the future addition of Fire Station #5 near the Avila Ranch development, which could be operational as an interim station within the next two to three years, is expected to significantly improve the day-to-day emergency response capabilities within the southern portion of the city, including response to the South Higuera corridor.

As part of the City’s in-progress work on a Citywide Evacuation Study, a focused evacuation study was prepared for the Higuera Street corridor (Attachment C) to evaluate potential changes to evacuation times with addition of the Complete Streets Project. The evacuation study, prepared by the San Luis Obispo Community Fire Safe Council, models evacuation conditions for the following potential emergency events that could impact Higuera Street:
 Evacuation Scenario A: A fire or flooding event along San Luis Obispo Creek affecting creek-adjacent neighborhoods west of Higuera Street between Prado Road and Los Osos Valley Road (Evacuation Zone SLO-024)6.
 Evacuation Scenario B: A wildfire in the South Hills Open Space (Evacuation Zone SLO-025), requiring evacuation of the Margarita Area, Chumash Village and surrounding neighborhoods.

This analysis conservatively assumes the worst-case evacuation demand, with a potential large-scale emergency event occurring at a time where most residential and commercial properties are occupied and need to evacuate immediately. To evaluate the effects of the Complete Streets Project, the roadway capacity on Higuera Street was modified to reflect

5 EVP equipment allows emergency vehicles to communicate with a downstream traffic signal to prioritize green lights in the direction the vehicle is traveling. This helps queued traffic to clear out of the way of an approaching emergency vehicle and improves safety for first responders by holding red lights for all conflicting intersection approaches. A key recommendation in the City’s Draft Vision Zero Action Plan (Post-Crash Care Chapter) is to invest in EVP upgrades throughout the city to improve EMS response times.
6 Evacuation Zone boundaries can be viewed on the following map, or the www.prepareslo.org website.

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the proposed 4-lane to 3-lane road diet between Bridge Street and Margarita and assuming a 5 mph reduction in operating speeds along the full Higuera Street corridor due to the proposed traffic calming and complete streets design features. The table below summarizes the estimated evacuation clearance times for each emergency event with and without the Complete Streets Project.

Table 1 – Evacuation Clearance Times with and without the Higuera Complete Streets Project
Zone Emergency
Type
Evacuation Clearance Time
Existing Change
Conditions
Complete
Street
Project
SLO-024 (SLO
Creek w/o
Higuera Street)
Flood 107 min 117 min +10 min
Fire 100 min 114 min +14 min
SLO-025
(South Hills) Fire 95 min 103 min +8 min
The analysis estimates that during a worst-case evacuation event, the addition of the Complete Streets Project could increase evacuation clearance times by approximately 8- 14 minutes compared to existing conditions. Actual evacuation times would vary based on incident conditions, evacuation activation notice, and public response; however, the modeled clearance times provide a reasonable, if not conservative, planning-level estimate consistent with accepted practices to guide emergency preparedness and planning decisions.

Currently, there are no specific Federal, State or locally adopted performance thresholds for maximum evacuation times; however, the evacuation study states that the modeled evacuation clearance times remain within two hours, which is commonly used as a performance benchmark for urban neighborhood-scale evacuation planning. It is important to note that every evacuation involves numerous variables that can affect overall clearance times. The type of incident, such as flood, fire, hazardous materials release, or civil disturbance, presents different operational challenges, and evacuation timelines may need to be adjusted accordingly. Under certain conditions, evacuations could reasonably take longer than two hours; however, the two-hour benchmark is used as a planning assumption, providing a consistent baseline against which evacuation strategies, infrastructure constraints, and operational decisions can be evaluated.

The study concludes that with proper evacuation noticing, effective public communication and coordinated traffic management strategies, the transportation network is expected to continue to function acceptably during an emergency evacuation event with or without the Complete Streets Project.

To minimize potential increases in emergency response and evacuation times in conjunction with the Complete Streets Project, staff propose the following actions prior to and during construction:

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1. Evacuation Signal Timing Plans: Prepare pre-programmed traffic signal timing plans at intersections along the Higuera Street corridor that could be activated during an evacuation event to prioritize movement of traffic away from the hazard area. (Transportation Engineering staff will implement these timing plans prior to start of construction).

2. Construction Coordination:
a. Schedule a pre-construction meeting between City Public Works and emergency services staff to coordinate project construction phasing, construction schedule and strategies to minimize impacts to emergency response during construction activities. (Public Works staff will arrange a preconstruction meeting with local emergency services representatives and continue with regular updates and communication during construction). b. Retain at least one lane open to traffic in each direction on any primary emergency response routes affected during construction. (Project bid documents require that the contractor always retain one lane of traffic in each direction on Higuera Street and Madonna Road, unless otherwise approved by City emergency services. The construction documents also require the most disruptive work on these major roadways to be scheduled as night work, where feasible).

In addition to the above recommendations, staff will also monitor post-construction performance and will be prepared to quickly implement refinements to project designs as needed if any concerns are identified by local emergency response providers. See “Next Steps” section below for further detail.

Next Steps
Higuera Complete Streets Project Next Steps and Monitoring Strategies On January 29, 2025, the California Transportation Commission (CTC) approved the allocation of $6.9 million in Caltrans ATP grant funding awarded to the Complete Streets Project construction. With Council approval of the recommendations presented in this staff report, staff will advertise this project for bids during winter of 2026, with plans to award the construction contract and start construction in late spring/early summer 2026.

Project construction is expected to take up to one year to complete, including lengthy lead times for traffic signal equipment.

Through the City’s SLO in Motion Program, updates to the community will be provided prior to and throughout construction to notify the public and emergency service providers of upcoming construction activities and potential travel delays. Where feasible, the most disruptive road work will be scheduled as night work to minimize impacts to road users.

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As a requirement of the Caltrans ATP grant, staff will be conducting pre- and postconstruction data collection for the Complete Streets Project to track changes in auto/ped/bicycle traffic volumes and vehicle speeds. In addition, staff will conduct the following monitoring after construction to evaluate performance and need for design refinements, if any:
a) Monitor average vehicle delays and driver behavior along the “road diet” segment of Higuera between Madonna and Margarita Street, including delays for drivers exiting the Chumash Village driveway (0-12 months post-construction) b) Review crash data compared to pre-project conditions (12-18 months postconstruction) c) Observe traffic operations, bicycle and pedestrian user behavior to identify if any minor sign/striping/traffic signal refinements are needed (0-12 months post-construction) d) In coordination with SLO Fire, invite feedback on any observed impacts to emergency response and compare pre- and post-project EMS response times to destinations along the Higuera Street corridor (0-24 months post-construction) Because most of the street design changes involve pavement markings and low-cost elements, such as flex posts, if needed, minor refinements can generally be implemented quickly and at a relatively low-cost following construction.

Staff will prepare a summary of the post-construction monitoring results 12 months after construction completion to inform the Council and community on project performance and proposed design refinements, if any.
50 Higuera Widening Next Steps
A scope change request has already been approved by Caltrans, which will allow the City to advance the revised 50 Higuera Widening project and deliver on the original HSIP grant obligations for this project. Following approval by the City Council, staff will request construction authorization from Caltrans and advertise the project for construction winter of 2026. Construction is expected to begin by spring 2026 and take approximately one month to complete. Construction of the Higuera Complete Streets Project is expected to begin summer of 2026 and project schedules and areas of work will be coordinated closely to avoid conflicts.

Potential for Future Road Widening
While the traffic analysis prepared for the Higuera Complete Streets Project indicates that Higuera Street between Bridge and Margarita can operate within acceptable levels of service into the 20+ year planning horizon as a three-lane roadway, this assumes that the City’s long-term land use plan and transportation plans are advanced as anticipated per the adopted General Plan Land Use and Circulation Elements. If future actions approve a higher level of development intensity and/or significantly delay the Prado Road/US 101 Interchange, the segment of Higuera Street between Margarita and Bridge Street may need to be reconfigured to two lanes of traffic in each direction to avoid levels of traffic

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congestion and delays that exceed the City’s adopted thresholds. It would not be possible to provide two lanes of traffic in each direction and retain a center turn lane on Higuera between Elks Lane and Bridge Street without revisiting the larger road widening originally contemplated near 50 Higuera. If this City Council (or a future City Council) desires to revisit the full road widening as originally envisioned along the 50 Higuera frontage, several of the existing Heritage Trees would need to be removed, which would require additional environmental review, approval by Caltrans, and City Council approval, including a potential action to remove these trees from the list of designated city heritage trees.

Previous Council or Advisory Body Action
Higuera Complete Streets Project
Active Transportation Committee (ATC) Input
The ATC first reviewed the Higuera Complete Streets project on February 6, 2022, to provide early input on the project scope and concept designs. The ATC then provided review and comment on 65%-level designs on May 16, 2024. The ATC’s key recommendations to staff following review of 65% designs included:

1. Preference for the Higuera/Los Osos Valley Road intersection design alternative featuring addition of a dedicated southbound bicycle signal phase

2. Support for the Higuera road diet limits as proposed between Margarita and Bridge Streets

3. General preference for more permanent (concrete) vertical separation for protected bikeways, with interest in providing more gaps in bikeway barriers to allow cyclists to merge out of bike lanes to pass other riders and to merge across traffic lanes ahead of intersections

4. Desire for more significant bicycle safety improvements, if feasible, at the Higuera/Suburban intersection, which has a history of bicycle right-hook collisions, including a recent fatal collision

5. Preference for staff to continue further design refinement and coordination with Caltrans on a design concept for Madonna Road that includes protected facilities, ideally as a two-way shared-use path on the north side of the roadway The final plans reflect most of the ATC’s recommendations, except for (a) use of more permanent concrete barriers for bikeway separation throughout the project, (b) addition of separated bikeways on the Madonna overpass, and (c) incorporation of more robust improvements at the Higuera/Suburban intersection. Updates on these items are summarized as follows:
a) As described above, concrete bikeway separation is included in the plans as a bid additive alternate for the segment of Higuera between Bridge and Margarita only, with flex posts used for bikeway separation elsewhere. This recommendation is based on cost constraints and concerns with using rigid barriers where street width constraints require use of minimum-allowed auto lane and bike lane widths on a

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higher-speed street, which increases chance of accidental bicycle and vehicle strikes.
b) While staff pursued strategies to provide a physically separated bikeway along the Madonna Road Overpass, this was ultimately not feasible within the cost and schedule constraints of the current grant-funded project. Staff will continue to coordinate with Caltrans and explore feasibility of a future shared-use path on Madonna Road as resources allow.
c) Staff evaluated various options to address vehicle vs. bicycle collision concerns at the Higuera/Suburban intersection. The ideal ultimate improvement would involve widening the intersection to provide width for a dedicated northbound right-turn lane and/or provide a protected bicycle crossing area; however, this requires offsite right-of-way acquisition and utility relocations that are not feasible at this time.

An interim improvement is planned which will modify the Higuera/Suburban traffic signal to provide protected left turn phasing (left turns on green arrows only) and an electronic illuminated sign to provide further warning to right-turning vehicles to yield to bicyclists. A construction contract is already awarded for this minor traffic signal modification and work should be complete within the next two months.

Regular project updates have been provided to the ATC following the February 2025 Council Study Session and leading into this final hearing regarding the project.

City Council Input
As noted previously, the City Council provided feedback and policy direction on the Complete Streets Project at a Study Session on February 4, 2025. More detailed information on the Study Session is provided previously in this report. 50 Higuera Widening Project
The City Council previously approved the original project on April 15, 2025, as a consent item. Staff is returning to seek authorization to proceed with the redesigned project.

Public Engagement
Higuera Complete Streets Project
Over the last three years, a series of community outreach activities have been provided for the Higuera Complete Streets project. The public engagement strategy consisted of a combination of both formal and less-formal outreach activities (including weekend, afternoons and weeknights) to maximize opportunities for feedback and to ensure that input reflects the diverse voices of the full San Luis Obispo community. For those who were not able to attend in-person events, staff also collected input via email and phone.

Public engagement activities included two neighborhood pop-ups (at Food 4 Less Market and Meadow Park), two open house workshops, a resident forum hosted by the Chumash Village community, a site meeting with a property owner affected by the proposed Walker

Item 6b
Street Closure, multiple presentations to the ATC, a City Council Study Session, and a project webpage. For a comprehensive description of outreach activities and a summary of input, see the February 2025 Council Study Session Agenda Packet, Attachment G.

Staff has endeavored to incorporate this feedback into the project designs, where feasible, including a redesign of proposed traffic calming strategies within the Meadow Park neighborhood based on initial feedback from community members. 50 Higuera Widening Project
Opportunities for public input regarding plans to widen Higuera Street between Bridge Street and Elks Lane were provided as part of the 2014 General Plan Land Use and Circulation Element (LUCE) Update, as part of the Mid-Higuera Enhancement Plan, and with approval of CIP project funding appropriations through several recent City Financial Plans. This project was on the Council Agenda for the October 17, 2023, meeting to approve easement acquisitions, and again on the April 15, 2025, Council Agenda to approve the original project plans. This agenda item provides an additional opportunity for the public to provide input on the revised 50 Higuera Widening Project prior to implementation and will follow all required postings and notifications. The public may have an opportunity to comment on this matter at or before the meeting.

CONCURRENCE
The Complete Streets and Road Widening Project details and this report have been reviewed and have concurrence from the City Public Works Department, City Arborist, Police and Fire Departments, City Attorney’s Office, and City Administration. See previous section on “Emergency Response and Evacuation Considerations” for more details on collaboration with emergency services.

ENVIRONMENTAL REVIEW
Higuera Complete Streets Project
Environmental analysis for the Complete Streets Project was conducted by Rincon Consultants, Inc. Based on evaluation of the project’s design details, the analysis concluded that the project is eligible for a Class 1 Categorical Exemption (CE) under California Environmental Quality Act (CEQA) Section 15301(c) (Existing Facilities). A Notice of Exemption (NOE) was filed with the County Clerk on July 25, 2025.

As discussed in detail at the February 2025 Council Study Session, the Project will implement traffic signal modifications that will increase vehicle delay at the Higuera Street/Los Osos Valley Road intersection, which is already projected to operate at a level of service (LOS) below the City’s adopted target threshold of LOS D or better in the future with or without the Complete Streets Project. Acceptable LOS will be retained in the short-term; however, this LOS deficiency is projected to occur in the near-term (5-10 year) horizon with or without the Project. Congestion at this intersection is expected regardless of the project, and the project does not create a new environmental impact under CEQA.

Pursuant to CEQA policy, LOS or other measures of automobile delay are no longer used to define significant environmental impacts. To retain acceptable LOS in the future, either

Item 6b
(a) the Higuera/Los Osos Valley Road intersection would need to be widened to add additional vehicle lanes, (b) the proposed Los Osos Valley Road Bypass Road would need to be constructed, or (c) the bicycle signal phase proposed with the Higuera Complete Street Project would need to be eliminated in the future. However, in approving the Project, the Council will be formally accepting this local policy deficiency for motor vehicle LOS at this intersection, which is acknowledged in the draft resolution provided as Attachment F.
50 Higuera Widening Project
Both California Environmental Quality Act (CEQA) and National Environmental Policy Act (NEPA) environmental review have been completed for the 50 Higuera Widening project.

The project was determined to be Categorically Exempt per CEQA Guidelines Section 15301 (Class 1 Exemption – Existing Facilities), and a Notice of Exemption has been filed with the County Clerk’s Office. Caltrans, assuming responsibility as lead agency for environmental review pursuant to NEPA for federally funded projects in California, determined that the project would not pose any significant impacts on the environment, approving a Categorical Exclusion (CE) in 2014.

The re-design of this project retains this Categorically Exempt determination, as previously documented. The modified project does not introduce any changes that would create potential for new or exacerbated impacts beyond what was evaluated under the previous project description. With a much smaller area of road construction, the modified project would have less overall effect on the built and/or natural environment than the previous project design.

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

The tables below summarize the project costs and funding for the Higuera Complete Streets and 50 Higuera Widening Projects.

Item 6b
Higuera Complete Streets Project
Table 2 – Fiscal Impact Summary for Higuera Complete Streets (No. 2091057) Funding Sources Total Budget
Available
Current
Funding
Request
Remaining
Balance
Annual
Ongoing
Cost
General Fund
Capital Outlay - LRM
(Higuera Complete Street,
No. 2001057)
$3,062,560 $3,062,560 $0
Capital Outlay - LRM
(Prado Creek Bridge Project,
No. 2091252)
$2,277,019 $500,000 $1,777,019
Capital Outlay
(ATP Implementation, No.
2000608)
$88,650 $88,650 $0
Capital Outlay - LRM
(ATP Implementation, No.
2000608)
$116,197 $116,197 $0
Capital Outlay - LRM
(Vision Zero Implementation,
No. 2000073)
$144,742 $100,000 $44,742
Capital Outlay - LRM
(Traffic Signal Maintenance &
Replacements, No. 2001003-
02)
$100,000 $50,000 $50,000
*Capital Outlay - LRM
(Infrastructure Investment
Fund)
$14,658,406 $2,000,000 $12,658,406
State $0
Caltrans ATP Grant
(Higuera Complete Street,
No. 2001057)
$6,951,000 $6,951,000 $0
SLOCOG Grant
(Higuera Complete Street,
No. 2001057)
$2,501,910 $2,501,910 $0
Other $0
Water Fund
(Water Valve Cover
Adjustments, No. 2001005)
$314,748 $120,000 $194,748
Sewer Fund
(Sewer Valve Cover
Adjustments, No. 2000084)
$161,509 $50,000 $111,509
Total $30,413,041 $15,540,317 $14,872,724
*Current Infrastructure Investment Fund (IIF) balance is $14,658,406, with an estimated balance of $11,158,406 on July 1, 2026 following a planned appropriation to Prado Creek Bridge project for FY2026-

27. An additional $1,212,229 of FY 2024-25 General Fund Unassigned Fund Balance is proposed to be allocated to the IIF as part of the FY 2024-25 Second Quarter Budget Report, which will be reviewed by the Council on February 17, 2026.

Item 6b
Table 3 – Detailed Cost and Funding Summary for Higuera Complete Streets Project (No. 2091057)
Higuera Complete Street Project (No. 2001057) Costs & Funding Summary State
Grant
General
Fund
Water
Fund
Sewer
Fund
Total
Costs

PROJECT COSTS
Base Bid Construction Estimate $9,452,910 $3,082,221 $75,000 $25,000 $12,635,131 Construction Contingency $0 $1,226,136 $45,000 $25,000 $1,296,136 Construction Management $0 $1,000,000 $0 $0 $1,000,000
Materials Testing $0 $150,000 $0 $0 $150,000
Printing & Advertising $0 $1,000 $0 $0 $1,000
Public Relations $0 $100,000 $0 $0 $100,000
Base Bid Total Estimate $9,452,910 $5,559,357 $120,000 $50,000 $15,182,267 Add Alt A Construction Estimate $0 $325,500 $0 $0 $325,500 Add Alt A Contingency $0 $32,550 $0 $0 $32,550
Additive Alternative A Total
Estimate $0 $358,050 $0 $0 $358,050
Total Construction (Base + Add
Alt A) $9,452,910 $5,917,407 $120,000 $50,000 $15,540,317

PROJECT FUNDING
Available Project Account Balance $9,452,910 $3,062,560 $0 $0 $12,515,470 New Funding Request $0 $2,854,847 $120,000 $50,000 $3,024,847

TOTAL PROJECT
BUDGET $9,452,910 $5,917,407 $120,000 $50,000 $15,540,317 (1) See expanded Project Cost and Funding table in Attachments.

Construction Costs
The Higuera Complete Streets Project plans and specifications are structured with a Base Bid and a Bid Additive Alternate A—the additive alternate adds concrete curbs for protected bike lane separation along a portion of Higuera Street. While staff hopes to have sufficient funding to award the full scope of improvements, this strategy provides flexibility to award only the Base Bid up to the Publicly Disclosed amount of $12,960,700 in compliance with Public Contract Code Section 20103.8(c) if the lowest responsive bid exceeds available funding resources.

As shown in the table above, the total estimated Project cost is $15,540,317, including the Base Bid and Bid Additive Alternate construction contract costs, construction contingencies and support costs (contract construction management support, materials

Item 6b
testing, etc.).

Currently, there is $12,515,470 in available funding in the Higuera Complete Street Project account, including $9,452,910 in outside grant funding consisting of $6.95 million in Caltrans ATP Grant funding and $2.5 million from SLOCOG Community Betterments Grant funding. The SLOCOG funds were awarded as the result of two cycles of competitive call-for-projects for Community Betterment grants—a program intended to support projects of local significance.

Staff is requesting authorization to transfer an additional $1,024,847 in funds from other active CIP project accounts to the Higuera Complete Street Project (No. 2001057), as follows:
a) $500,000 from the Prado Creek Bridge Replacement (No. 2091252) b) $204,847 from the Active Transportation Plan Implementation (No. 2000608) c) $100,000 from the Vision Zero Implementation (No. 2000073) d) $50,000 from the Traffic Signal Maintenance & Replacements (No. 2001003) e) $120,000 from the Water Valve Cover Adjustments (No. 2001005) f) $50,000 from the Sewer Valve Cover Adjustments (No. 2000084) The funding transfer from the Prado Creek Bridge Project represents the cost for the new traffic signal at Higuera/Elks—this signal is required as a mitigation measure during removal/replacement of the bridge and was originally included as part of the bridge project scope and costs; however, the Higuera Complete Street Project is moving forward sooner and will install this signal first. The other transfers are from CIP project accounts that support the types of improvements included in the Higuera Complete Street Project, such as sewer/water valve cover adjustments during paving/sidewalk reconstruction, traffic safety improvements on the high-injury network as identified in the Draft Vision Zero Action Plan, and traffic signal modernizations (i.e. ADA-compliant pedestrian signals, high-visibility signal backplates, traffic signal phasing adjustments).

In addition, staff is requesting authorization to transfer an additional $2,000,000 in funds from the Infrastructure Investment Fund to fully fund construction. There is a current balance of $14,658,406 in the Infrastructure Investment Fund, and a projected balance of $11,158,406 on July 1, 2027, following a planned appropriation of $3,500,000 to the Prado Creek Bridge project in FY 2026-27. Staff is recommending allocation of $1,212,229 of FY 2024-25 General Fund Unassigned Fund Balance as part of the FY 2024-25 Second Quarter Budget Report that will be presented to the City Council on February 17, 2026, before this item is heard (see Item 6a of this Agenda Packet). The table below shows the current Infrastructure Investment Fund balance, funding transactions proposed in the February 17, 2026 Council items on the Higuera Complete Streets Project and FY2024-25 General Fund Unassigned Fund Balance and planned capital project earmarks from this fund in the coming years.

Item 6b
Table 4 –Infrastructure Investment Fund (IIF) Balance and Planned Expenditures FY 2025-2026 IIF Fund Summary
Payment Amount Ending Balance
Starting Fund Balance FY 25-26 $14,658,406.00 $14,658,406.00 Higuera Complete Streets Project FY25-
26 (March 17, 2026) $(2,000,000.00) $12,658,406.00
FY 24-25 Unassigned Fund Balance
FY25-26 (March 17th, 2026) $1,212,229.00 $13,870,635.00 FY 2026-27 Capital Reserve (July 1,
2026) $787,771.00 $14,658,406.00
Prado Bridge Widening (Design) FY 26-
27 (July 1, 2026) $(3,500,000.00) $11,158,406.00
Prado Bridge Widening FY 27-28 (July
1, 2027) $(11,158,406.00) $ -
Maintenance Costs
The addition of protected bike lanes with the Complete Street Project is expected to increase ongoing maintenance costs for contract sweeping and repair/replacement of bikeway flex posts. Based on typical costs for flex posts repairs and contract street sweeping within protected bike lanes at other locations within the city, this project is expected to incur an additional annual maintenance cost of approximately $50,000- $70,000. Staff is requesting authorization to use contingency funds from the Complete Street Project CIP account that may remain unspent following construction (up to $200,000) to support increased maintenance needs. Ongoing funding for additional maintenance obligations will be requested as part of the 2027-29 Financial Plan. If additional maintenance funds cannot be secured using unspent contingency funds or with future budget requests, regular bikeway sweeping will be scheduled as frequently as resources allow, with spot sweeping performed when specific hazards are reported.

Funding & Cost Breakdown
The following tables break down the Complete Street Project funding by source and construction costs by project feature:

Table 5 – Higuera Complete Street Cost Breakdown by Fund Source Project Funding by Source %
Local 39%
General Fund (Non-LRM) 2%
General Fund (LRM) 36%
Water & Sewer Funds 1%
Outside Grant 61%
State ATP Grant 45%
SLOCOG Grant 16%
Total 100%

Item 6b
Table 6 – Higuera Complete Street Cost Breakdown by Feature Construction Cost by Project Feature % of Total
Paving 29%
Pedestrian Curb Ramps, Sidewalks, Crosswalk Beacons 27% Protected Bike Lane – Flex Posts 3%
Protected Bike Lane – Concrete Curbs (Bid Add Alt) 2%
Traffic Signal Improvements 13%
Signs, Striping & Traffic Calming 16%
Other (Temporary Traffic Control, Mobilization, etc.) 10% Total Construction Costs 100%
As shown above, the majority (61%) of project costs are funded by outside grant funding, which was secured based on the project’s benefits to walking, bicycling, and traffic safety.

Two thirds (66%) of construction costs are related to essential road pavement maintenance, pedestrian accessibility upgrades (ADA curb ramps & sidewalk repairs) and misc. construction support elements (construction traffic control, mobilization, etc.).

If the City were to implement this project with only the essential maintenance/accessibility improvements and no other active transportation or traffic safety “betterments”, the project would not be financially feasible with local funding alone. The outside grant funding secured for this project allows the City to make significant progress supporting its active transportation and safety goals, while also accomplishing essential maintenance needs at the same time.
50 Higuera Widening Project
Table 7 – Fiscal Impact Summary for 50 Higuera Widening Project (No. 2091294) Funding
Sources
Total Budget
Available
Current Project
Funding Request
Remaining
Balance
Annual
Ongoing
Cost
General Fund
General Fund
(Capital Outlay)
$2,760 $2,760 $0 $0
Local Revenue
Measure (LRM)
$22,600 $0 $22,600 $0
Other:

State Grant
(SLOCOG
USHA Grant)
$663,536 $335,431 $328,105 $0
Federal Grant
(HSIP)
$67,500 $42,450 $25,050 $0
Citywide TIF $859 $859 $0 $0
Total $757,255 $381,500 $375,755 $0

Item 6b
Table 8 – Detailed Cost and Funding Summary for 50 Higuera Widening Project (No. 2091294)
50 Higuera Widening Account (2091294)
General Totals
Fund
General
Fund
(LRM)
State
Grant
(SLOCOG
USHA)
Federal
Grant
(HSIP)
Citywide
Traffic
Impact
Fee (TIF)
Project Costs
Construction
Estimate $2,760 $268,931 $42,450 $859 $315,000
Contingencies (20%) $63,000 $63,000
Construction Costs $2,760 $0 $331,931 $42,450 $859 $378,000 Materials Testing $3,000 $3,000
Printing & Advertising $500 $500
Total Project Costs $2,760 $0 $335,431 $42,450 $859 $381,500 Project Funding
Current Balance $2,760 $22,600 $663,536 $67,500 $859 $757,256 Remaining Balance $0 $22,600 $328,105 $25,050 $0 $375,756 The Road Widening Project construction cost is estimated at $381,500, including contingencies and support costs (materials testing, printing and advertising).

There is a current balance of $757,256 in the Project Account, including General Fund, State Urban Highway Account (USHA) grant funds administered by the San Luis Obispo Regional Council of Governments (SLOCOG), remaining HSIP grant funds administered by Caltrans, and Citywide Traffic Impact Fee (TIF) funds. This provides sufficient resources to fund construction.

When the original 50 Higuera Widening Project was approved, the City Council authorized the transfer of $22,600 in General Fund (LRM) funds to the Project account from the New Streetlights CIP Account (No. 2001016), as the original scope included installation of a new streetlight. With the revised project, this streetlight will no longer be installed and these funds are no longer needed for this purpose, so staff is recommending that these funds be transferred back to the New Streetlights CIP Account.

As shown in the funding tables above, there is $67,500 in HSIP grant funding remaining in the Project Account; however, only $42,450 of these funds are eligible for use in the construction phase of the project. The remaining portion of the HSIP funding is specifically tied to previous right-of-way and utility coordination phases and cannot be used towards construction. These remaining funds will ultimately go unspent—no repayment of this balance is required, these funds will simply be zeroed out when the project account is closed following construction completion.

The current SLOCOG USHA funding allocated to this project is expected to exceed the amount needed to fund construction by up to $328,000. Staff is requesting Council

Item 6b
authorization to transfer any remaining unspent USHA funds to the Higuera Complete Streets Project Account (No. 2001057), if needed to supplement this related high-priority CIP project. SLOCOG has already affirmed that the Higuera Complete Street Project is an eligible project for use of the USHA funding; however, a minor amendment to the existing cooperative agreement between the City and SLOCOG would be required prior to expending and seeking reimbursement for this additional funding.

ALTERNATIVES
Higuera Complete Streets Project

1. Council could decide not to approve the Project plans and specifications or request to advertise for construction bids at this time. The delay caused by this alternative could lead to forfeiture of more than $9 million in outside grant funding. Per the conditions of the Caltrans ATP Grant, the construction contract for this project must be awarded by the end of June 2026. As currently scoped, the Project would be infeasible to deliver without this grant funding and would need to be delayed significantly and redesigned to align project scope with reduced funding resources.

2. Council could direct staff to return prior to awarding the construction contract if construction bids exceed the amount needed to fund the base bid and bid additive alternative (concrete bike lane protection). If desired, staff could return to the City Council to award the construction contract following receipt of construction bids (if bids exceed current funding) and present recommendations to appropriate additional funds to the project account to fully fund and award the base project and bid additive alternate. In order to increase project funding, staff would likely need to identify other planned or in-progress capital projects that would need to be defunded/deferred. 50 Higuera Widening Project

1. Council could decide not to approve the advertisement of the revised 50 Higuera Street Widening Project, directing staff to take the required steps to advance the larger road widening project, as originally envisioned. To advance the larger 50 Higuera Widening Project as originally envisioned, the project scope would need to assume that removal of several Heritage Trees would be required. This would conflict with City Policy regarding preservation of Heritage Trees and could very likely present a significant environmental impact under CEQA/NEPA. Updated environmental review would be required, which may potentially result in disclosure of significant and unavoidable impacts that cannot be feasibly avoided/mitigated.

Caltrans would also need to approve removal of these trees. If removal of these trees was ultimately approved, these actions could delay the project for at least 18 to 24 months. These delays would incur additional cost escalation, and could lead to failure to deliver the HSIP-funded project on schedule, which could require repayment of approximately $400,000 in HSIP grant funding already spent to date.

ATTACHMENTS

Item 6b
A - Draft Resolution Authorizing Appropriation of Funds from the Infrastructure Investment Fund to the Higuera Complete Streets Project B - Summary of Higuera Complete Street Project Plans
C - Higuera Complete Street Project Emergency Evacuation Study D - Higuera Complete Street Project Detailed Cost and Funding Table E - 50 Higuera Widening Project - Typical Street Cross Section Exhibit F – Draft Resolution Accepting a Future Automobile Level of Service Deficiency

R ______
RESOLUTION NO. _____ (2026 SERIES)

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS OBISPO, CALIFORNIA, AUTHORIZING USE OF $2,000,000 FROM THE

INFRASTRUCTURE INVESTMENT FUND TO SUPPORT THE HIGUERA
COMPLETE STREETS PROJECT, SPECIFICATION NUMBER 2001057
WHEREAS, on February 17, 2026, the City Council authorized advertisement of the Higuera Complete Streets Project and delegated authority to the City Manager to award the construction contract if the lowest responsive bid was within the publicly disclosed funding limit of $12,960,700; and,
WHEREAS, the project includes pavement rehabilitation, roadway restriping, addition of protected bike lanes, pedestrian accessibility and crossing improvements, and traffic safety improvements that benefit all road users, covering segments of Higuera Street, Madonna Road, and local roadways near Meadow Park; and WHEREAS, proposed improvements in the Higuera Complete Street Project support the Major City Goal of Infrastructure and Sustainable Transportation, advance several “Tier 1” (highest-priority) improvements recommended in City’s 2021 Active Transportation Plan, and support the City’s overarching Vision Zero Goal to eliminate severe injury and fatal traffic collisions; and
WHEREAS, the City created in Infrastructure Investment Fund to set aside funding for future infrastructure projects that contribute to improved economic development and enhanced quality of life in the City of San Luis Obispo; and WHEREAS, the use of these funds is at the discretion of the City Council based on the guidelines established; and
WHEREAS, to provide sufficient funding to proceed with the Higuera Complete Streets Project, staff is recommending the City Council approve use of $2,000,000 from the Infrastructure Investment Fund; and
WHEREAS, a balance of approximately $14,658,400 is currently available in the Infrastrucure Investment Fund, which is sufficient to cover the funding requested to supplement the Higuera Complete Street Project.

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

Resolution No. _____ (2026 Series) Page 2
R ______
SECTION 1. The City Council authorizes the appropriation of $2,000,000 from the Infrastructure Investment Fund to the Higuera Complete Streets Project account 2001057.

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

AYES:

NOES:

ABSENT:

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

ADD BICYCLE LEFT TURN BOX TO

IMPROVE ACCESS & VISIBILITY FOR

CYCLISTS TURNING FROM EB LOS OSOS

VALLEY RD TO NB HIGUERA ST
TRAFFIC SIGNAL MODIFICATIONS:
- PROTECTED ONLY LEFT TURN ARROWS FOR

NORTHBOUND HIGUERA APPROACH
- ADD DEDICATED BIKE SIGNAL PHASE FOR

SOUTHBOUND HIGUERA (SOUTHBOUND

RIGHT-TURN SEPARATED WITH RED ARROW
DURING BIKE SIGNAL PHASE). INCLUDE "NO
RIGHT TURN ON RED" DURING BIKE SIGNAL
- ADD ADA-COMPLIANT PEDESTRIAN SIGNALS

GREEN BIKE LANE MARKINGS THROUGH

CONFLICT AREAS FOR ADDED VISIBILITY (TYP)

BUFFERED BIKE LANE W/ FLEX POSTS PROVIDE PROTECTED

BIKE LANE SEPARATION, WITH GAPS AT DRIVEWAYS, FIRE

HYDRANTS, AND FOR BIKES TO ENTER/EXIT BIKE LANES (TYP)

PROTECTED ONLY LEFT-TURN

SIGNAL PHASING FOR

NORTHBOUND LEFTS
GENERAL NOTE:

WHILE NOT SHOWN IN DETAIL IN THESE EXHIBITS, PROJECT DESIGNS INCLUDE INSTALLATION OF THE FOLLOWING FEATURES THROUGHOUT THE PROJECT LIMITS:
- ADA-COMPLIANT PEDESTRIAN SIGNALS WITH AUDIBLE MESSAGING - ADA CURB RAMP UPGRADES AT 70+ LOCATIONS
- ADDITION OF HI-VISIBILITY TRAFFIC SIGNAL BACKPLATES W/ YELLOW REFLECTIVE

STRIPS AT ALL SIGNALIZED INTERSECTIONS WITHIN PROJECT LIMITS - EMERGENCY VEHICLE PREEMPTION TRAFFIC SIGNAL UPGRADES
- PAVEMENT REPAIRS AND AND RESURFACING ALONG ALL ROADWAYS IN PROJECT LIMITS

DIAGRAM OF PROPOSED SOUTHBOUND

BICYCLE AND VEHICLE RIGHT TURN SIGNAL

PHASING

CONTINUOUS GREEN BIKE LANES BETWEEN

SUBURBAN AND TANK FARM WHERE WIDTH IS

INSUFFICIENT FOR BUFFERED/PROTECTED

BIKE LANES TURN BOX WITH PUSH BUTTON TO PROVIDE

SIGNALIZED CROSSING OF HIGUERA FOR

SOUTHBOUND LEFT-TURNING BICYCLISTS

INSTALL HI-VISIBILITY CROSSWALK

MARKINGS (TYP)

ADA CURB RAMP UPGRADES

THROUGHOUT PROJECT, WHERE

NEEDED (TYP)

GREEN BIKE LANE MARKINGS AT DRIVEWAY AND

INTERSECTION CONFLICT AREAS (TYP)

PROTECTED ONLY LEFT-TURN

SIGNAL PHASING FOR

NORTHBOUND LEFTS

TRAFFIC SIGNAL MODIFICATIONS TO BE

INSTALLED AT HIGUERA/SUBURBAN VIA

SEPARATE PROJECT PRIOR TO COMPLETE
STREETS CONSTRUCTION:
- CONVERT SOUTHBOUND LEFT TURNS TO

PROTECTED ONLY PHASING
- INSTALL ILLUMINATED LED SIGN TO

INCREASE VISIBILITY OF NORTHBOUND
RIGHT-TURNING VEHICLES VS. BICYCLE

CONFLICTS INSTALL RADAR SPEED FEEDBACK SIGN

CONTINUOUS GREEN BIKE LANES BETWEEN

SUBURBAN AND TANK FARM WHERE WIDTH IS

INSUFFICIENT FOR BUFFERED/PROTECTED

BIKE LANES

BUFFERED BIKE LANE W/ FLEX POSTS PROVIDE

PROTECTED BIKE LANE SEPARATION, WITH GAPS AT

DRIVEWAYS, FIRE HYDRANTS, AND FOR BIKES TO

ENTER/EXIT BIKE LANES (TYP)
ADD FLEX POSTS AND "NO LEFT TURN" SIGNAGE TO

DISCOURAGE ILLEGAL TURNS AROUND MEDIAN NEAR

SILVER CITY AND THE SLO PUBLIC MARKET

DRIVEWAYMARKETPUBLIC

DRIVEWAYCITYSILVER

PATCH POT HOLES AND RESURFACE ROADWAY

PAVEMENT THROUGHOUT PROJECT (TYP)

BUFFERED BIKE LANE W/ FLEX POSTS PROVIDE

PROTECTED BIKE LANE SEPARATION, WITH GAPS AT

DRIVEWAYS, FIRE HYDRANTS, AND FOR BIKES TO

ENTER/EXIT BIKE LANES (TYP)

GAPS IN BIKEWAY SEPARATION PROVIDED TO

ALLOW CYCLISTS TO MERGE INTO TRAFFIC

LANES FOR LEFT-TURNS AT DOWNSTREAM

INTERSECTIONS AND DRIVEWAYS (TYP)

TURN BOX WITH PUSH BUTTON TO PROVIDE

SIGNALIZED CROSSING OF HIGUERA FOR

SOUTHBOUND LEFT-TURNING BICYCLISTS

FLEX POSTS AND SIGNAGE TO DISCOURAGE

ILLEGAL LEFT TURNS AROUND MEDIAN

BUFFERED BIKE LANE W/ FLEX POSTS PROVIDE

PROTECTED BIKE LANE SEPARATION, WITH GAPS AT

DRIVEWAYS, FIRE HYDRANTS, AND FOR BIKES TO

ENTER/EXIT BIKE LANES (TYP)

GREEN BIKE LANE MARKINGS AT DRIVEWAY AND

INTERSECTION CONFLICT AREAS (TYP)

FUTURE RECONSTRUCTION OF HIGUERA/PRADO INTERSECTION PLANNED AS PART OF PRADO CREEK BRIDGE REPLACEMENT PROJECT. INTERIM

IMPROVEMENTS INCLUDE HI-VISIBILITY CROSSWALKS AND GREEN BIKE LANE

CONFLICT MARKINGS

BUFFERED BIKE LANE W/ FLEX POSTS PROVIDE

PROTECTED BIKE LANE SEPARATION, WITH GAPS AT

DRIVEWAYS, FIRE HYDRANTS, AND FOR BIKES TO

ENTER/EXIT BIKE LANES (TYP)

INSTALL RADAR SPEED FEEDBACK SIGN

GREEN BIKE LANE MARKINGS AT DRIVEWAY AND

INTERSECTION CONFLICT AREAS (TYP)

INSTALL HI-VISIBILITY CROSSWALK

MARKINGS (TYP)
HIGUERA ST. RECONFIGURED TO THREE LANES
(ONE LANE EACH DIRECTION + CENTER TURN
LANE) BETWEEN MARGARITA AND BRIDGE ST.

REFRESH RED CURB PAINT AND SIGNAGE TO
ENFORCE "NO PARKING" RESTRICTIONS WITHIN

CHUMASH DRIVE SIGHT TRIANGLE

BETWEEN MARGARITA AND BRIDGE STREET,

BASE BID INCLUDES FLEX POSTS ONLY FOR
BIKEWAY SEPARATION. BID ADDITIVE

INCLUDES PRE-CAST, REMOVABLE CONCRETE
CURBS (6" HEIGHT, 18' WIDTH) FOR PROTECTED

BIKEWAY SEPARATION WHERE SHOWN
BIKEWAY MEDIANS PULLED BACK MINIMUM 20'

FROM ALL DRIVEWAYS (TYP)

INSTALL HI-VISIBILITY CROSSWALK

MARKINGS (TYP)

EXTRA WIDE CENTER TURN LANE

PROVIDED TO SERVE AS

EMERGENCY BYPASS LANE FOR

EMERGENCY VEHICLES

WIDEN PAVEMENT AND CONSTRUCT TEMPORARY

DRAINAGE GUTTER -- REMAINING WIDENING AND

SIDEWALK GAP CLOSURE IN FUTURE (PENDING

RIGHT-OF-WAY ACQUISITION)

BETWEEN MARGARITA AND BRIDGE STREET,

BASE BID INCLUDES FLEX POSTS ONLY FOR
BIKEWAY SEPARATION. BID ADDITIVE

INCLUDES PRE-CAST, REMOVABLE CONCRETE
CURBS (6" HEIGHT, 18' WIDTH) FOR PROTECTED

BIKEWAY SEPARATION WHERE SHOWN

INSTALL RADAR SPEED FEEDBACK SIGN

INSTALL NEW TRAFFIC SIGNAL AT

HIGUERA/ELKS INTERSECTION

PUSH BUTTONS PROVIDED TO ALLOW

BICYCLES AND PEDESTRIANS TO ACTUATE
TRAFFIC SIGNAL TO CROSS HIGUERA ST.

HIGUERA ST. RECONFIGURED TO THREE LANES
(ONE LANE EACH DIRECTION + CENTER TURN
LANE) BETWEEN MARGARITA AND BRIDGE ST.

BETWEEN MARGARITA AND BRIDGE STREET,

BASE BID INCLUDES FLEX POSTS ONLY FOR
BIKEWAY SEPARATION. BID ADDITIVE

INCLUDES PRE-CAST, REMOVABLE CONCRETE
CURBS (6" HEIGHT, 18' WIDTH) FOR PROTECTED

BIKEWAY SEPARATION WHERE SHOWN

CENTER TURN LANE ADDED TO IMPROVE
ACCESS TO/FROM BRIDGE ST.

NORTHBOUND APPROACH RESTRIPED AT

HIGUERA/MADONNA TO PROVIDE DUAL

LEFT-TURN LANES, WHICH IMPROVES EXISTING

AND FUTURE TRAFFIC OPERATIONS

RECONSTRUCT NORTHWEST CORNER OF

HIGUERA/MADONNA INTERSECTION TO

IMPROVE BICYCLE AND PEDESTRIAN CROSSIGN
EXPOSURE AND SAFETY. PROVIDE

OPPORTUNITY FOR FUTURE SHARED-USE

PED/BIKE PATH CONNECTION NORTH TO

MADONNA RD PATH

TRAFFIC SIGNAL MODIFICATION PROVIDES

DEDICATED SOUTHBOUND VEHICLE

RIGHT-TURN PHASE AND SEPARATE

SOUTHBOUND BIKE SIGNAL PHASE TO REDUCE
CONFLICTS WITH TURNING VEHICLES.

TWO-STAGE BICYCLE LEFT TURN BOX FACILITATES

NORTHBOUND LEFT-TURN MOVEMENTS FOR BICYCLISTS

TOWARDS WESTBOUND MADONNA RD

SOUTHBOUND LEFT-TURNS RESTRICTED,

RE-DIRECTED TO BRIDGE ST

AREA FOR

FUTURE TREES
HIGUERA ST. RECONFIGURED TO THREE LANES
(ONE LANE EACH DIRECTION + CENTER TURN
LANE) BETWEEN MARGARITA AND BRIDGE ST.

DIAGRAM OF PROPOSED SOUTHBOUND

BICYCLE AND VEHICLE RIGHT TURN SIGNAL

PHASING

TWO-STAGE BICYCLE LEFT TURN BOX (TYP)

PROTECTED BIKE LANE WITH FLEX POSTS FOR

VERTICAL SEPARATION, (TYP)

INSTALL HI-VISIBILITY CROSSWALK

MARKINGS (TYP)

PROTECTED BIKE LANE WITH FLEX POSTS FOR

VERTICAL SEPARATION, (TYP)

CLOSURE OF WALKER STREET AT HIGUERA, AS PROPOSED IN MID-HIGUERA ENHANCEMENT PLAN. STREET CLOSURE WITH REMOVABLE BOLLARDS AND DECORATIVE

PAVEMENT TREATMENT IMPROVES COMFORT FOR PEDESTRIANS AND AESTHETICS WHILE

RETAINING EMERGENCY VEHICLE ACCESS

INSTALL HI-VISIBILITY CROSSWALK

MARKINGS (TYP)

NEW CROSSWALK WITH RECTANGULAR

RAPID FLASHIGN BEACONS (RRFB)

CONTINUOUS GREEN BIKEWAY MARKINGS FOR

ADDED VISIBILITY ALONG MADONNA RD

OVERCROSSING WHERE NARROW STREET WIDTH

PRECLUDES PHYSICAL BIKEWAY SEPARATION PER
CALTRANS DESIGN STANDARDS.

HI-VIS CROSSWALKS AND GREEN BIKE LANE

MARKINGS THROUGH INTERSECTION AND

DRIVEWAY CONFLICT AREAS

HI-VIS CROSSWALKS AND GREEN BIKE LANE

MARKINGS THROUGH INTERSECTION AND

DRIVEWAY CONFLICT AREAS

PROTECTED BIKE LANE WITH FLEX

POSTS FOR VERTICAL

SEPARATION WHERE WIDTH

ALLOWS OUTSIDE OF CALTRANS

R/W, (TYP)

PROTECTED BIKE LANE WITH FLEX

POSTS FOR VERTICAL

SEPARATION WHERE WIDTH

ALLOWS OUTSIDE OF CALTRANS

R/W, (TYP)

NEIGHBORHOOD GREENWAY MARKINGS AND

GUIDE SIGNAGE ALONG THE MEADOW PARK

GREENWAY FOLLOWING BRIDGE ST,

EXPOSITION, CORRIDA, AND WOODBRIDGE

STREETS

NEIGHBORHOOD GREENWAY MARKINGS AND

GUIDE SIGNAGE ALONG THE MEADOW PARK

GREENWAY FOLLOWING BRIDGE ST,

EXPOSITION, CORRIDA, AND WOODBRIDGE

STREETS

RAISED CROSSWALK WITH NEW LIGHTING TO

IMPROVE CONNECTIVITY BETWEEN MEADOW

PARK, HIGUERA STREET AND OTHER BIKE/PED

CONNECTIONS SOUTH OF DOWNTOWN

ADD RED CURB TO "DAYLIGHT" ACCESS POINT

TO MEADOW PARK SHARED-USE PATH
NETWORK.

ADD WAYFINDING SIGNAGE TO GUIDE ROUTE

BETWEEN BRIDGE STREET PATH, MEADOW

PARK SHARED-USE PATHS AND OTHER

BIKEWAYS IN THE AREA

INSTALL SPEED HUMPS ALONG

GREENWAY ROUTE WHERE EXISTING
VEHICLE SPEEDS > 25 MPH (TYP)

STRIPED BULBOUTS WITH FLEX POSTS TO

REDUCE TURNING SPEEDS AT KEY

INTERSECTIONS ALONG GREENWAY

ROUTE (TYP)

RAMP FOR BIKE ACCESS TO/FROM

MEADOW PARK

NEIGHBORHOOD GREENWAY MARKINGS AND

GUIDE SIGNAGE ALONG THE MEADOW PARK

GREENWAY FOLLOWING BRIDGE ST,

EXPOSITION, CORRIDA, AND WOODBRIDGE

STREETS

RAMP FOR BIKE ACCESS TO/FROM

MEADOW PARK

STRIPED BULBOUTS WITH FLEX POSTS TO

REDUCE TURNING SPEEDS AT KEY

INTERSECTIONS ALONG GREENWAY

ROUTE (TYP)

ADD ALL-WAY STOP AT

MEADOW/WOODBRIDGE TO IMPROVE

PEDESTRIAN CROSSINGS TO/FROM

MEADOW PARK AND ALONG GREENWAY

INSTALL SPEED HUMPS ALONG ROUTE

GREENWAY ROUTE WHERE EXISTING
VEHICLE SPEEDS > 25 MPH (TYP)

INSTALL SPEED HUMPS ALONG

GREENWAY ROUTE WHERE EXISTING
VEHICLE SPEEDS > 25 MPH (TYP)

CONNECT TO EXISTING PEDESTRIAN

HYBRID BEACON CROSSING AT BROAD &

WOODBRIDGE

INSTALL SPEED HUMPS ALONG

GREENWAY ROUTE WHERE EXISTING
VEHICLE SPEEDS > 25 MPH (TYP)

NEIGHBORHOOD GREENWAY MARKINGS AND

GUIDE SIGNAGE ALONG KING COURT TO

CONNECT WITH MEADOW PARK SHARED-USE

PATHS AND GREENWAY NETWORK

NEW PEDESTRIAN HYBRID BEACON

CROSSING AT SOUTH & KING TO BEGIN
CONSTRUCTION 2026

Higuera Street Emergency Evacuation Analysis
Prepared by:

San Luis Obispo Community Fire Safe Council
Date:

January 18, 2026
City of San Luis Obispo
Executive Summary
This report evaluates emergency evacuation conditions along the Higuera Street corridor and assesses the potential effects of the proposed Higuera Complete Street Project on evacuation performance. The analysis focuses on evacuation clearance time, route efficiency, and operational constraints under both fire and flood emergency scenarios.

Two evacuation zones, SLO-024 and SLO-025, were analyzed using conservative assumptions reflecting maximum allowable development and worst-case evacuation demand.

1. Purpose and Scope
The purpose of this study is to evaluate emergency evacuation conditions along the Higuera Street corridor and to assess changes in evacuation clearance time, route efficiency, and operational performance associated with implementation of the Higuera Complete Street Project. The analysis is intended to support emergency planning, transportation design review, and environmental documentation.

2. Emergency Scenarios Evaluated
Two emergency scenarios were evaluated independently based on known hazards affecting the Higuera corridor. Scenarios are not assumed to occur at the same time Scenario A – Fire or Flooding in San Luis Obispo Creek (Evacuation Zone SLO-024) This scenario models either a fire or flooding event affecting creek-adjacent neighborhoods west of Higuera Street. Zone SLO-024 contains mobile home parks, multifamily areas, and commercial parcels located close to the creek corridor, where hazards can develop quickly and restrict access.

Flooding may limit creek crossings, reduce roadway capacity, or obstruct access routes.

Fire conditions along the creek corridor can also generate rapid evacuation needs. This zone relies heavily on Higuera Street as its primary evacuation pathway, making it sensitive to congestion and roadway constraints.

Scenario B – Wildfire in South Hills Open Space (Evacuation Zone SLO-025) This scenario evaluates a South Hills wildfire requiring evacuation of the Margarita Area and surrounding neighborhoods. Zone SLO-025 covers a larger geographic area with both built and entitled parcels under current land-use designations.

Evacuation performance is influenced by total population loading, merging onto arterial routes, and traveling distance to safe areas. Compared with Zone SLO-024, the zone has more route options but a larger number of households, requiring careful modeling of demand and travel time.

3. Data Sources and Key Assumptions
The analysis uses conservative assumptions to reflect worst-case evacuation conditions and maximum possible population.

3.1 Roadway Network Data
County roadway centerline and functional classification data were used as the base transportation network. These were modified to incorporate the proposed Higuera Complete Street Project, including:
• Reduction to one vehicle lane in each direction (Bridge St. → Margarita Ave.) • Addition of a continuous center turn lane
• Reduced operating speeds (−5 mph corridor-wide) to represent traffic-calming features

3.2 Address, Land Use, and Population Data
Residential address data were sourced from City of San Luis Obispo land-use and zoning datasets. Evacuation demand reflects the maximum population allowed under existing zones, regardless of whether all units are currently developed. This ensures modeling accounts for full build-out conditions and long-term emergency planning needs.

3.3 Vehicle Assumptions
A standard assumption of two vehicles per address was applied to all residential units.

This is consistent with regional household vehicle ownership and provides a conservative planning-level estimate of evacuation demand.

3.4 Mobile Home Parks
Mobile home parks with a single parcel address require manual population estimation.

Each park’s total number of dwelling units was counted using satellite imagery to identify individual mobile homes, ensuring accurate representation of evacuation demand in higher-density communities.

3.5 LADRIS Evacuation Modeling Tool
LADRIS (Life and Death Response Information System) served as the modeling platform for this analysis. LADRIS simulates evacuation behavior by loading population and vehicle demand onto the roadway network using GIS data, route assignment logic, and congestion modeling.

It is a planning-level tool designed to compare evacuation performance across scenarios, not a detailed traffic engineering simulator. LADRIS does not fully account for traffic signal operations, stop controls, officer-directed traffic, contraflow, or special evacuation signal timing plans.

Therefore, results represent planning-level estimates intended to guide emergency preparedness, roadway design decisions, and policy, not precise real-time operational forecasts.

4. Transportation Network Conditions
Existing roadway lane configurations, intersection geometry, traffic control, and prevailing operating speeds were assumed for baseline conditions. The primary evacuation routes for this area are southbound Higuera Street toward Los Osos Valley Road, northbound Higuera Street toward Madonna Road, eastbound on Tank Farm Road, and eastbound on Prado Road toward northbound Highway 101. This analysis also assumes that Prado Road to Highway 101 will be closed during the flooding scenario.

The Complete Street Project configuration reflects reduced vehicle lanes between Bridge Street and Margarita Avenue, the addition of a continuous center turn lane, and an assumed five-mile-per-hour reduction in operating speeds along the Higuera Street corridor due to proposed traffic-calming and complete street design features such as speed feedback signs, protected bike lanes, and reduced traffic lane widths.

5. Evacuation Clearance Time Results
Evacuation clearance time represents the total time required for all vehicles within an evacuation zone to reach a designated safe area under emergency conditions.

5.1 Evacuation Zone SLO-024
Creekside / West of Higuera – Fire and Flood Scenarios
• Total residences to be evacuated: 349
• Total evacuating vehicles: 6,932
Fire Scenario A:

Existing Conditions – Total Evacuation Time: 1 hour 40 minutes Fire Scenario A:

Complete Street Project – Total Evacuation Time: 1 hour 54 minutes

5.1 Evacuation Zone SLO-024
Flood Scenario A:

Existing Conditions – Total Evacuation Time: 1 hour 47 minutes Flood Scenario A:

Complete Street Project – Total Evacuation Time: 1 hour 57 minutes Note: Fire and Flood scenarios use identical demand assumptions. Results differ due to network constraints, the closure of Prado Rd due to flood history, and routing conditions specific to each scenario. Page 409 of 480

5.2 Evacuation Zone SLO-025
South Hills / Margarita Area – Fire and Flood Scenarios • Total addresses to be evacuated: 871
• Total evacuating vehicles: 4,740
Fire Scenario B:

Existing Conditions – Total Evacuation Time: 1 hour 35 minutes Fire Scenario B:

Complete Street Project – Total Evacuation Time: 1 hour 43 minutes

6. Summary of Evacuation Clearance Times
Evacuation Zone Emergency Type Roadway Condition Clearance Time SLO-024 Fire Existing 1 hr 40 min
SLO-024 Fire Complete Street 1 hr 54 min
SLO-024 Flood Existing 1 hr 47 min
SLO-024 Flood Complete Street 1 hr 57 min
SLO-025 Fire Existing 1 hr 35 min
SLO-025 Fire Complete Street 1 hr 43 min
SLO-025 Flood Existing 1 hr 49 min
SLO-025 Flood Complete Street 1 hr 51 min

7. Conclusions and Key Findings
The analysis indicates that the Higuera Complete Street Project would result in increases in evacuation clearance times for both fire and flood scenarios within Evacuation Zones SLO-024 and SLO-025. These changes are primarily associated with reduced vehicular capacity and lower operating speeds consistent with the project’s safety and traffic-calming objectives. Importantly, the modeled evacuation clearance times remain within the City’s two-hour performance benchmark used in recent evacuation and emergency planning evaluations. With early evacuation activation, coordinated traffic management, pre-programmed evacuation signal timing, and effective public communication, the transportation network is expected to continue to function acceptably under emergency conditions.

End

Water Valve
Cover
Adjustments
(2001005)
Sewer Valve
Cover
Adjustments
(2000084)
Traffic Signal
Maintenance &
Replacements
(2001003)
Vision Zero
Implementation
(2000073)
Prado Creek
Bridge
(2091252)
State Grant
( ATP)
State Grant
(SLOCOG)
General Fund
LRM
General
Fund
General
Fund LRM Water Fund Sewer Fund General Fund LRM
General Fund
LRM
General Fund
LRM
Base Bid Construction Estimate $6,951,000 $2,501,910 $2,432,221 $0 $75,000 $25,000 $50,000 $100,000 $500,000 $12,635,131 Construction Contingency $630,339 $88,650 $116,197 $45,000 $25,000 $390,950 $1,296,136 Construction Management $1,000,000 $1,000,000
Materials Testing $150,000 $150,000
Printing & Advertising $1,000 $1,000
Public Relations $100,000 $100,000
Base Bid Total Estimate $6,951,000 $2,501,910 $3,062,560 $88,650 $116,197 $120,000 $50,000 $50,000 $100,000 $500,000 $1,641,950 $15,182,267 Add Alt A Construction Estimate $325,500 $325,500
Add Alt A Contingency $32,550 $32,550
Additive Alternative A Total Estimate $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $358,050 $358,050 Total Construction (Base + Add Alt A) $6,951,000 $2,501,910 $3,062,560 $88,650 $116,197 $120,000 $50,000 $50,000 $100,000 $500,000 $2,000,000 $15,540,317 Current Project Account Balance $6,951,000 $2,501,910 $3,062,560 $12,515,470 Additional Funding Request: $88,650 $116,197 $120,000 $50,000 $50,000 $100,000 $500,000 $2,000,000 $3,024,847 TOTAL PROJECT BUDGET $6,951,000 $2,501,910 $3,062,560 $88,650 $116,197 $120,000 $50,000 $50,000 $100,000 $500,000 $2,000,000 $15,540,317 Detaled Project Costs and Funding Summary
Higuera Complete Street Project (No. 2001057)
Higuera Complete Street (2001057) ATP Implementation
(2000608) Infrastucture
Investment
Fund
Total Costs

South Higuera
Caltrans Offices 50 S. Higuera
43 S. Higuera
51 S. Higuera
Original Road
Widening Extents –
Approx. 6450 Sq Ft
Caltrans Driveway50 S. Higuera
Cross Section
Identified Heritage Tree
Reduced Road
Widening Extents –
Approx. 1755 Sq Ft
Existing Heritage Trees
Conflicting with Road
Widening ATTACHMENT E: 50 Higuera Widening Typical Street Sections

Sidewalk – 7’
Bike Lane – 5’
Vehicle Lane –10.5’
Vehicle Lane -10.5’
Vehicle Lane -10.5’
Vehicle Lane -10.5’
Bike Lane – 5’
Sidewalk – 6’
Sidewalk – 7’
Bike Lane – 5’
Vehicle Lane –10’
Vehicle Lane -10’
Center Turn Lane – 11.5’
Vehicle Lane -10’
Bike Lane – 5’
Sidewalk – 6’
Vehicle Lane -10.5’

Sidewalk – 7’
Bike Lane – 5’
Vehicle Lane –10.5’
Vehicle Lane -10.5’
Center Turn Lane -10.5’
Vehicle Lane -10.5’
Bike Lane – 5’
Sidewalk – 6’
Buffer – 3’
Sidewalk – 7’
Buffer – 3’
Vehicle Lane -10.5’
Center Turn Lane -13’
Vehicle Lane -10.5’
Bike Lane – 6’
Sidewalk – 6’
Bike Lane – 6’

R ______
RESOLUTION NO. _____ (2026 SERIES)

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

OBISPO, CALIFORNIA, ACCEPTING A FUTURE AUTOMOBILE LEVEL

OF SERVICE DEFICIENCY AT THE INTERSECTION OF HIGUERA

STREET AND LOS OSOS VALLEY ROAD IN CONNECTION WITH THE

HIGUERA COMPLETE STREETS PROJECT, SPECIFICATION NUMBER
2001057
WHEREAS, the City of San Luis Obispo General Plan Circulation Element establishes a minimum automobile Level of Service (LOS) standard of LOS D or better for locations outside of the downtown; and,
WHEREAS, the traffic operations analysis prepared for the Higuera Complete Street Project indicates that the intersection of Higuera Street and Los Osos Valley Road is projected to operate at deficient LOS E during the PM peak hour in the future near-term (5-year) and cumulative (20-year) horizon conditions; and, WHEREAS, the Higuera Complete Street Project includes traffic signal modifications that include converting the northbound left-turn movement to “protected only left-turn phasing” and adding a dedicated southbound bicycle signal phase at this intersection, which are best practice safety countermeasures intended to reduce potential for intersection crashes; and,
WHEREAS, the proposed traffic signal modifications are projected to increase the average PM peak hour delay at this intersection by approximately six seconds per vehicle, further exacerbating conditions at this intersection, which is already projected to operate at deficient LOS E in the future; and,
WHEREAS, acceptance of this LOS deficiency supports the City’s General Plan mode share targets, Vision Zero commitment to eliminate fatal and severe injury crashes, Infrastructure & Sustainable Transportation Major City Goal, and Climate Action Plan objectives to increase use of sustainable transportation modes; and, WHEREAS, the City Council finds that the safety, sustainability, and multimodal circulation benefits of the proposed intersection improvements outweigh the incremental increase in automobile delay at this location.

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

Resolution No. _____ (2026 Series) Page 2
R ______
SECTION 1. The City Council hereby accepts the projected automobile Level of Service E condition during the PM peak hour at the intersection of Higuera Street and Los Osos Valley Road under future conditions.

SECTION 2. The City Council affirms acceptance of the incremental increase in vehicle delay to be added to the intersection of Higuera Street and Los Osos Valley Road with the Higuera Complete Street Project, finding the project and its related benefits to be consistent with the General Plan as a whole.

SECTION 3. The City Council finds that this action does not amend the City’s adopted Level of Service standard, which shall remain in effect unless modified by future City Council action.

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

AYES:

NOES:

ABSENT:

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

City of San Luis Obispo, Council Memorandum
City of San Luis Obispo
Council Agenda Correspondence
DATE: February 17, 2026
TO: Mayor and Council
FROM: Greg Hermann, Deputy City Manager
Prepared By: Robert Hill, Sustainability & Natural Resources Official VIA: Whitney McDonald, City Manager
SUBJECT: ITEM # 6C – Grant Agreement with San Luis Obispo Museum of Art Staff received the following questions, regarding the draft Grant Agreement for the San Luis Obispo Museum of Art (SLOMA), which follows Council direction received on November 4, 2025, and SLOMA putting forth its Proposal for Supporting the Future San Luis Obispo Museum of Art: A New Home in the Heart of Downtown (the “Proposal”). The questions are below with staff’s response shown in italics:
1) What is the projected date for completion of Phase 1 and opening of the new museum?
Staff have reached out to SLOMA to confirm that the projected date for completion of Phase 1 and their anticipated opening date of the new museum space is July 2027. That is within the three-year term of the grant agreement.

2.) Please confirm the language of paragraph 5 (Use of Grant Fund at Other Sites).

Staff confirm that the intent of this paragraph is that the City’s grant funds can only be used at the new museum space and SLOMA may not use the funds for any other purposes with prior written approval of the City Council which would require an item coming before the City Council for direction. SLOMA has confirmed that they do not intend to use any of the subject grant funds at the existing 1010 Broad Street space and, therefore, they are comfortable with this paragraph.

3.) Is there a clause that protects the City from a situation where, in a worst case scenario, SLOMA is unable to financially maintain the museum after City funds have been spent (either while still renting, or after they have successfully purchased at the end of Phase 2)?

Grant Agreement with San Luis Obispo Museum of Art Page 2 Because the eligible uses for the City’s grant funds during Phase 1 are specifically limited to soft costs, it would be difficult to realistically ensure recovery of the City’s investment in this phase of project in an actionable way. For Phase 2, however, which anticipates SLOMA’s purchase of the new museum, staff would recommend to Council that the City negotiate terms to protect the City’s investment should circumstances arise where the property is no longer being used in a manner consistent with the terms of a prospective future amended Grant Agreement.

4.) Please provide more information from SLOMA, for Council’s awareness, with an update of the following:
i. What is their total fundraising goal for each of the two phases? SLOMA has confirmed that the total fundraising goal is $20 million. Phase 1 and 2 are $10 million each, respectively. The Phase 2 three-year purchase option begins in July 2027.
ii. How much have they raised thus far toward Phase 1 and Phase 2, each? SLOMA reports that, as of the date of this correspondence, they have raised 77% of the Phase 1 goal ($7.7 million) and 32% of the Phase 2 goal ($3.2 million).

5.) In the “next steps” section of the staff report, it states that the next opportunity for consideration of an amendment to the grant agreement would be at Budget Supplement on June 4. It doesn’t look like we have included any requirement in the grant agreement stating that they should have spent any proportion of their initial $500,000 grant before amending the grant agreement for a potential second grant. Should something like that be included to protect the city’s first phase investment?
The draft Grant Agreement does not currently specify that a certain amount, or proportion, of Phase 1 grant funds must be spent before amending the Grant Agreement to add Phase 2 funding. As stated in the “next steps” section, SLOMA will need to complete property negotiations and fundraising plans for the purchase of the building, as well as the conditions required for amendment as shown in the current, draft Grant Agreement; these items include “satisfactorily completing all required elements of the Grant Agreement during implementation of Phase 1, submitting a detailed project description and supportive justification for the additional funding request, and submitting sufficient due diligence items for the City’s review to ensure expenditure of its funds is supported and documented.”

Grant Agreement with San Luis Obispo Museum of Art Page 3 From a process perspective for similar projects, Council has historically considered whether to provide funding first, followed by directing staff to return later for the Council to consider the final agreement (in this case, amendment to the Grant Agreement) with specific terms and required elements. Additional requirements may also be added at that time that must be completed prior to actual disbursement of any additional funds including Phase 1 funds being fully expended first.

Further, since we have been conducting budget cutting exercises to ensure a balanced budget in 2026-27 (the second year of the two-year financial plan), would it be smart to consider a phase 2 grant Feb 2027 (during mid-year report, as we are doing now) rather than in June (budget supplement)? The City Council may choose to place on a future agenda consideration of additional grant funding for Phase 2 at any time. The Council’s specific direction on November 4, 2025, was to “include terms [in the Grant Agreement] which would commit the City to providing funding of some kind toward Phase 2 of the project, subject to further analysis and discussion at a public meeting and with funding allocations determined during future budget actions.” (Council Minutes for November 4, 2025, approved November 18, 2025). The first opportunity to consider such an item is at the Fiscal Year 2026-27 Budget Supplement, however, it could also occur at a subsequent meeting where budget actions are being considered.

6.) Could the grant to SLOMA include a condition for guaranteed free admission to city residents for a specific term (e.g., 5 years)?
As indicated in the Alternatives section of the Council Agenda Report, Council may direct modifications to the draft Grant Agreement to incorporate different terms or requirements. To specifically address this question, SLOMA intends to provide free admission for all members of the public to be as inclusive as possible. SLOMA has evaluated different options pertaining to admissions and concluded that a “suggested donation” system will attract the most the people to the museum and surrounding downtown environment.

Item 6c
Department: Administration
Cost Center: 1005
For Agenda of: 2/17/2026
Placement: Public Hearing
Estimated Time: 30 minutes
FROM: Greg Hermann, Deputy City Manager
Prepared By: Robert Hill, Sustainability & Natural Resources Official SUBJECT: GRANT AGREEMENT WITH SAN LUIS OBISPO MUSEUM OF ART

RECOMMENDATION
Adopt a Draft Resolution entitled, “A Resolution of the City Council of the City of San Luis Obispo finding that a Grant Agreement with the San Luis Obispo Museum of Art is of public benefit in accordance with California Government Code Section 53083 and approving the Grant Agreement” (Attachment A) to:

1. Find that a Grant Agreement serves the public interest of the City of San Luis Obispo by advancing arts and culture, economic development, and other public benefits; and

2. Approve the Grant Agreement between the City of San Luis Obispo and the San Luis Obispo Museum of Art and authorize the City Manager to execute the agreement in a final form satisfactory to the City Attorney.

REPORT-IN-BRIEF
The San Luis Obispo Musuem of Art (SLOMA) has put forward a Proposal for Supporting the Future San Luis Obispo Museum of Art: A New Home in the Heart of Downtown (the “Proposal”) that was submitted to City Council on October 30, 2025 (Attachment B). The Proposal entails an expansion of the existing museum by bringing together three existing storefront properties on Higuera Street between Chorro and Garden, while also maintaining and featuring connectivity to the creek walk, Mission Plaza, and the Cultural Arts District. SLOMA’s proposed plans are consistent with numerous City plans and policies and are also anticipated to have significant economic impact benefits.

In consideration of SLOMA’s proposed project’s ability to advance City plans and policy objectives, on November 4, 2025, as part of its review of the unaudited year-end 2024- 25 fiscal year budget, the City Council directed staff to prepare a draft Grant Agreement in the amount of $500,000 to support the first phase of SLOMA’s project to activate the museum expansion. The draft Grant Agreement contains terms and conditions that need to occur before the City will disburse funds, outlines eligible uses of funds and how they will be administered, ensures project reporting and financial assurance, and contemplates

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an amendment in the future that the City Council may consider for additional grant funding to support the eventual acquisition of the expansion properties.

POLICY CONTEXT
SLOMA’s proposal has significant alignment with numerous City of San Luis Obispo plans and policies. These include the City’s existing Major City Goals, Economic Development Strategic Plan, Downtown Concept Plan, and General Plan Land Use Element policies, such as:

1. 2025-27 Financial Plan Major City Goals
a. Cultural Vitality, Economic Resilience, and Fiscal Sustainability i. Goal 2 (“Support the arts, including the Cultural Arts District”)

2. Economic Development Strategic Plan (2023), Placemaking & Promotion a. 2.1 Quality-of-Place Promotion (“Bolster efforts to promote the City as an appealing destination for all people to live, work, visit, and invest.”) b. 2.2 Welcoming Environment (“Create an inclusive and friendly environment for residents, workers, and visitors.”)
i. 2.2.2 (“Highlight the diverse culture, history, assets, and amenities of the City to help foster a sense of inclusion.”) c. 2.3 Downtown Vitality (“Continue to support and maintain a vibrant and dynamic urban core that attracts people and businesses”) i. 2.3.5 (“Support opportunities to speed the implementation of the Downtown Concept Plan.”)
d. 2.4 Cultural Vitality (“Strengthen working relationships with and maintain financial support of the arts community to enrich the cultural offerings throughout the City”)
i. 2.4.3 (“Investigate the alignment of artistic and cultural initiatives across the City.”)
ii. 2.4.6 (“Continue to work with community partners to ensure the vitality of the City.”)

3. San Luis Obispo Downtown Concept Plan (2017)
a. Strong Identity (“Foster an economically and cultural diverse downtown…”)
b. Art, Culture, and History ("Expand cultural, historical, and artistic opportunities ... ")

4. Land Use Element of the General Plan (2014)
a. Policy 4.1 ("Downtown is the community's urban center serving as the cultural, social, entertainment, and political center of the City... The City wants its urban core to be economically healthy and realizes that private and public investments in the Downtown support each other") b. Policy 4.3 ("Cultural facilities, such as museums and galleries should be Downtown.”)
In addition, the City is required to complete Economic Development Subsidy findings, as required by California Government Code Section 53083, when making a grant in an

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amount of $100,000 or more for the purpose of stimulating economic development within its jurisdiction.

DISCUSSION
Background
The City of San Luis Obispo enjoys a long-standing public / private partnership with SLOMA that stretches back over 60 years, including through the lease of City property at the location of the existing museum at 1010 Broad Street tangent to Mission Plaza in 1967. This relationship has supported a wide variety of activities and initiatives during this time in support of the visual arts, including the establishment of a formal Community Partnership Agreement with SLOMA beginning in 2021 in furtherance of the City's Public Art Program.

Over the past five years, SLOMA has built a strong staff and Board of Directors, increased museum offerings and patrons of the museum, and re-invigorated its long-standing goal of assembling a contemporary museum space of sufficient size and building characteristics to meet its growing needs. A study commissioned by SLOMA to help them better understand their space and building needs was prepared by the firm Lord Cultural Resources (2024), which identified that demand exists for increased museum offerings, and that a sufficiently sized new museum could attract over 100,000 visitors per year.

Importantly, this study also led SLOMA to conclude that construction of a new museum at the existing location that would meet this need is cost prohibitive, with an expected construction cost of over $54 million. Staff have thoroughly reviewed the study and concur with the methodology and analysis that form the findings and recommendations; the Executive Summary is provided as Attachment C.

SLOMA's Proposal for Supporting the Future San Luis Obispo Museum of Art: A New Home in the Heart of Downtown describes the first phase of SLOMA's plans to expand from the 1010 Broad Street location by bringing together three existing storefront properties on Higuera Street between Chorro and Garden, while also maintaining and featuring connectivity to the creek walk, Mission Plaza, and the Cultural Arts District. The three properties together would form a 24,000-square-foot museum facility with multiple galleries, a museum cafe and store, a blend of indoor and outdoor space, and downstairs offices supportive of SLOMA's operations and storage needs. The 1010 Broad Street property would be used for expanded arts educations programming, which is consistent with the existing lease agreement with the City. The second phase of the Proposal entails the eventual purchase of the three expansion properties on Higuera Street. The proposed project represents another key Downtown investment, in addition to the Cultural Arts District Parking Structure, the new San Luis Obispo Repertory Theatre, and the Mission Plaza Enhancement Project, that will help to ensure Downtown vibrancy into the future.

Key Terms of the Grant Agreement
Staff and SLOMA, together with respective legal counsel, have prepared a draft Grant Agreement (Attachment D) for an amount up to $500,000 that includes the following key terms, in accordance with prior Council direction:

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1. The Grant Agreement is for a three-year term for Phase 1 implementation.

2. The City’s funds are a one-time grant of up to $500,000, paid on a reimbursement basis, to be used for eligible soft costs only.

3. SLOMA shall secure all other project funds for Phase 1, all necessary project entitlements and building permits, and shall submit to the City a fundraising plan and three-year budget forecast demonstrating project feasibility.

4. SLOMA shall identify additional public benefits, such as public art in the creek walk area, or similar, that can reasonably be implemented or facilitated.

5. The Grant Agreement requires public recognition of the City as a funding source and project partner.

6. SLOMA shall submit quarterly reporting and financial assurance documentation.

7. The Amendment paragraph specifies the conditions under which potential Phase 2 funding may be considered, per SLOMA’s Proposal. These items include satisfactorily completing all required elements of Grant Agreement during implementation of Phase 1, submitting a detailed project description and supportive justification for the additional funding request, and submitting sufficient due diligence items for the City’s review to ensure expenditure of its funds is supported and documented.

8. The Grant Agreement includes standard terms and conditions including Conflict of Interest, Indemnification, and Termination.

Current Project Updates
Since first introducing the Proposal to City Council on November 4, 2025, SLOMA has entered into a lease agreement with the current property owner and has taken possession of all three Higuera Street storefronts as of February 1, 2026. SLOMA has also continued to refine its project and has applied for permits and planning entitlements for the first phases of the project that are currently under review with the Community Development Department and the inter-departmental Design Review Team. Some aspects of the project can move forward as tenant improvements, while others will require that SLOMA assemble technical reports, including arborist, biological and cultural resources studies and other information needed for project elements that are discretionary and will require environmental review.

Economic Impact Analysis
As an attachment to its Proposal to the City, SLOMA also included data and modeling from the Americans for the Arts: Arts and Economic Prosperity 6 report (January 2024), which estimates that the operation of SLOMA’s new museum space will result in $123,500 in local government revenue and will generate $4,926,203 million in total expenditures on an annual basis.

It is also anticipated that the implementation of SLOMA’s Proposal and the operation of the new, expanded museum will generate 93 jobs according to data and modeling provided by SLOMA and the Americans for the Arts: Arts and Economic Prosperity 6 report (January 2024). Employment data contained in this report is based on the

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underlying IMPLAN Economic Model and is an annual average headcount of full time, part time, and seasonal employment using the same definitions as the U.S.A. Bureau of Economic Analysis Regional Economic Accounts and the U.S. Bureau of Labor Statistics Census of Employment and Wages.

SLOMA may be subject to possessory interest property tax during Phase 1 of the project; however, as the tenant improvements for the new museum space are not yet constructed, it is not yet known what the assessment and taxing rate will be. As a 501(c)(3) non-profit organization, if SLOMA acquires the expansion properties in the future, SLOMA may be eligible for a partial exemption of property taxes through the County Tax Assessor and the State Board of Equalization, provided that SLOMA continues to operate the property exclusively for exempt uses on an annual filing basis.

An investment by the City in SLOMA’s new museum space is fiscally prudent as it will contribute to a project that is anticipated to generate 93 jobs, $123,500 in revenue to the City and over $4.9 million in expenditures, on an annual basis. From a project due diligence perspective, SLOMA is required to submit a fundraising plan and three-year forecasted operating budget for approval by the City prior to disbursement of funding, per the draft Grant Agreement.

These data and analyses form the basis of the Economic Development Subsidy findings that are required under California Government Code Section 53083, The City is required to provide specified information in written form available to the public, through its website, for any economic development subsidy within its jurisdiction and to provide public notice and a hearing regarding the subsidy. An “economic development subsidy” is defined in relevant part under the Government Code as “any expenditure of public funds or loss of revenue to a local agency in the amount of one hundred thousand dollars ($100,000) or more, for the purpose of stimulating economic development within the jurisdiction of a local agency, including, but not limited to . . . grants . . .” (Cal. Gov. Code § 53083(g)(1)).

The draft Grant Agreement entails a commitment of $500,000 in grant funding towards SLOMA’s new museum space due to the long-standing community partnership with SLOMA and the anticipated economic development and other public benefits the new museum will provide. As such, the Grant Agreement constitutes an “economic development subsidy”. The required Economic Development Subsidy findings and disclosure are found in the draft Resolution included as Attachment A.

Previous Council Action
On November 4, 2025, as part of its review of the unaudited year-end 2024-25 fiscal year budget, the City Council directed staff to prepare the draft Grant Agreement that is recommended for approval with this Council Agenda Report. Council also directed staff to “include terms [in the Grant Agreement] which would commit the City to providing funding of some kind toward Phase 2 of the project, subject to further analysis and discussion at a public meeting and with funding allocations determined during future budget actions.” (Council Minutes for November 4, 2025, approved November 18, 2025).

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In addition, SLOMA also reports that they have successfully completed the “Challenge Grant” that raised over $2 million following City Council’s first conversation and direction to staff regarding their Proposal that occurred on November 4, 2025.

Public Engagement
Council considered public comments from numerous residents and community members that spoke favorably about SLOMA’s Proposal at the November 4, 2025, City Council meeting. Any member of the public may provide comments, testimony, or written comments to the City Council about this item. In addition, because this item requires a public hearing (due to the Economic Development Subsidy requirements under California Government Code section 53083 described above), it has been noticed in the publicfacing kiosk in front of City Hall and on the City’s website.

SLOMA has also been engaging with the public, including news releases and social media, installation of colorful information signs in the windows of the Higuera Street storefronts, and sharing details with local businesses and service groups including a presentation to the Downtown SLO Board of Directors in November, 2025, and at the San Luis Obispo Chamber of Commerce’s “Good Morning SLO” event that took place in January, 2026.

Next Steps
Should Council approve the draft Grant Agreement, staff will continue to work closely with SLOMA and will establish a regular meeting cadence to maintain timely communication, support project delivery, and ensure proper oversight of grant funds and reporting requirements.

If SLOMA is able to complete property negotiations and fundraising plans towards the eventual purchase of the buildings and timely complete the conditions precedent to being considered for Phase 2 funding, staff will provide options and recommendations regarding additional funding at the next regularly scheduled budget hearing, per prior Council direction on November 4, 2025. This will allow an additional funding request to be considered in the context of the City’s overall budget, with the next appropriate opportunity taking place on June 2, 2026, when the Council will consider the Fiscal Year 2026-2027 Budget Supplement.

CONCURRENCE
On January 14, 2026, the SLOMA Board of Directors took action to approve the draft Grant Agreement.

The Community Development Department and the Economic Development and Tourism Program concur with the recommendation in furtherance of General Plan and Economic Development Strategic Plan implementation, respectively.

The City Attorney’s Office has reviewed and provided its concurrence as to the form of the draft Grant Agreement and draft Resolution.

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ENVIRONMENTAL REVIEW
Entering into a Grant Agreement is not considered a project under California Environmental Quality Act (CEQA) Guidelines Section 15378. The future implementation of some elements of SLOMA’s project, however, will be subject to environmental review and a CEQA determination, which will take place concurrent with the City’s evaluation of the SLOMA’s building permit and planning entitlement applications.

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

Funding
Sources
Total Budget
Available
Current
Funding
Request
Remaining
Balance
Annual
Ongoing
Cost
General Fund
(FY 2024-25
Unassigned
Fund Balance)
$3,468,954 $500,000 $2,968,954* N/A
State
Federal
Fees
Other:

Total $3,468,954 $500,000 $2,968,954 N/A
* The $2,968,954 of ‘remaining balance’ noted above represents the balance of FY 2024- 25 Unassigned Fund Balance after the $500,000 contribution toward SLOMA is considered. At the time that this item will be heard, it will follow Council’s consideration of allocations of the Unassigned Fund Balance as part of approval of the recommendations in the Second Quarter Budget Report item heard earlier on the February 17, 2026, agenda.

The audited, unassigned fund balance for the General Fund for FY 2024-25 is $3,468,954. Consistent with Council’s direction of November 4, 2025, staff is recommending allocation of $500,000 from FY 2024-25 unassigned fund balance for this purpose as part of the Second Quarter Budget Report that will be presented to Council prior to consideration of this item. Modest staff time will be needed to ensure oversight of the terms and conditions of the Grant Agreement and to support project delivery and the overall partnership with SLOMA.

ALTERNATIVES

1. Council may direct modifications to the draft Grant Agreement to incorporate different terms or requirements.

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2. Council could direct staff to make modifications to the draft Grant Agreement and bring it back as an item for future reconsideration. Should Council choose this alternative, it is recommended that a “date certain” be identified, so that SLOMA may reliably anticipate future project actions and scheduling.

3. Council may elect not to approve the draft Grant Agreement in favor of other budget needs and priorities. If this alternative is chosen, it should be noted that the City Council’s direction on November 4, 2025, assisted in meeting a challenge grant offered by community members to help SLOMA raise $2 million that could be jeopardized.

ATTACHMENTS
A - Draft Resolution
B - Proposal for Supporting the Future San Luis Obispo Museum of Art: A New Home in the Heart of Downtown. San Luis Obispo Museum of Art (2025).

C - San Luis Obispo Museum of Art (SLOMA), New Building Facilities and Operations Focused Feasibility Study. Executive Summary. Lord Cultural Resources (2024).

D - Draft Grant Agreement

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RESOLUTION NO. _____ (2026 SERIES)

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

OBISPO, CALIFORNIA, FINDING THAT A GRANT AGREEMENT WITH

THE SAN LUIS OBISPO MUSEUM OF ART IS OF PUBLIC BENEFIT IN

ACCORANCE WITH CALIFORNIA GOVERNMENT CODE SECTION
53083 AND APPROVING THE GRANT AGREEMENT
WHEREAS, The City of San Luis Obispo (City) enjoys a long-standing public / private partnership with the San Luis Obispo Museum of Art (SLOMA) that stretches back over 60 years, including through the lease of City property at the location of the existing museum at 1010 Broad Street tangent to Mission Plaza in 1967. This relationship has supported a wide variety of activities and initiatives during this time in support of the visual arts, including the establishment of a formal Community Partnership Agreement with SLOMA beginning in 2021 in furtherance of the City's Public Art Program; and WHEREAS, SLOMA has put forward a Proposal for Supporting the Future San Luis Obispo Museum of Art: A New Home in the Heart of Downtown (the “Proposal”) submitted to City Council on October 30, 2025, that has significant alignment with numerous City plans and policies. These include the City’s existing 2025-27 Major City Goals, Economic Development Strategic Plan (2023), Downtown Concept Plan (2017), and General Plan Land Use Element (2014); and
WHEREAS, SLOMA's Proposal describes plans to expand from its present location at 1010 Broad Street by also bringing together three existing storefront properties on Higuera Street between Chorro and Garden, while maintaining and featuring connectivity to the creek walk, Mission Plaza, and the Cultural Arts District. The three properties together would form a 24,000-square-foot museum facility with multiple galleries, a museum cafe and store, a blend of indoor and outdoor space, and downstairs offices supportive of SLOMA's operations and storage needs. The 1010 Broad Street property would be used for expanded arts educations programming by SLOMA, which is consistent with the existing lease agreement for that property with the City; and WHEREAS, SLOMA’s Proposal is informed by a feasibility study and economic development data that forecast SLOMA’s museum offerings would attract at least 106,200 individuals to the downtown area (Lord Cultural Resources, 2024), support 93 jobs, and generate total expenditures of over $4.9 million (Americans for the Arts: Arts and Economic Prosperity 6 report and Arts and Economic Prosperity AEP 6 Calculator, January 2024). These data suggest that an investment by the City in SLOMA’s new museum space is fiscally prudent and underly Economic Development Subsidy findings that are required by California Government Code Section 53083, which are documented herein; and
WHEREAS, on November 4, 2025, as part of its review of the unaudited year-end 2024-25 fiscal year budget, the City Council received numerous, favorable public comments and testimony from SLOMA staff and members of its Board of Directors

Resolution No. _____ (2026 Series) Page 2
R ______
regarding the Proposal, and directed staff to prepare a Grant Agreement to provide funding in support of Phase I of SLOMA’s Proposal in an amount up to $500,000.

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

SECTION 1. The above recitals are true and correct and are a substantive part of this Resolution.

SECTION 2. Findings.

Economic Development Subsidy
Under California Government Code Section 53083, the City is required to provide specified information in written form available to the public, through its website, for any economic development subsidy within its jurisdiction and to provide public notice and a hearing regarding the subsidy. An “economic development subsidy” is defined in relevant part under the Government Code as “any expenditure of public funds or loss of revenue to a local agency in the amount of one hundred thousand dollars ($100,000) or more, for the purpose of stimulating economic development within the jurisdiction of a local agency, including, but not limited to . . . grants . . .” (Cal. Gov. Code § 53083(g)(1)).

The draft Grant Agreement entails a commitment of $500,000 in grant funding towards SLOMA’s new museum space due to the long-standing community partnership with SLOMA and the anticipated economic development and other public benefits the new museum will provide. As such, the Grant Agreement constitutes an “economic development subsidy” and disclosure of the following information and a public hearing are required, as follows (shown in italics):
1) The name and address of all corporations or any other business entities, except for sole proprietorships, that are the beneficiary of the economic development subsidy, if applicable. San Luis Obispo Museum of Art, A California Non-Profit Corporation.1010 Broad Street, San Luis Obispo, CA 93401. 2) The start and end dates and schedule, if applicable, for the economic development subsidy. The start date is upon entry into the Grant Agreement.

City of San Luis Obispo grant funding would be required to be expended within three years following the start date, unless otherwise amended. 3) A description of the economic development subsidy, including the estimated total amount of the expenditure of public funds by, or of revenue lost to, the local agency as a result of the economic development subsidy. The total amount of direct expenditure of public funds is $500,000.00. 4) A statement of the public purposes for the economic development subsidy. The public purpose for the economic development subsidy is to support arts and

Resolution No. _____ (2026 Series) Page 3
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cultural activities in the downtown area of San Luis Obispo, which is expected to generate direct and indirect local economic impact benefits. 5) Projected tax revenue to the local agency as a result of the economic development subsidy. According to data provided by SLOMA and the Americans for the Arts: Arts and Economic Prosperity 6 report (January 2024), the operation of SLOMA’s new museum space will result in $123,500 in local government revenue and will generate $4,926,203 million in total expenditures an annual basis. SLOMA will be subject to possessory interest property tax, however as the tenant improvements for the new museum space are not yet constructed, it is not yet known what the assessment and taxing rate will be. 6) Estimated number of jobs created by the economic development subsidy, broken down by full-time, part-time, and temporary positions. According to data provided by SLOMA and the Americans for the Arts: Arts and Economic Prosperity 6 report (January 2024), the operation of the new museum space will generate 93 jobs. Employment data contained in this report is based on the underlying IMPLAN model and is an annual average headcount of full time, part time, and seasonal employment using the same definitions as the U.S.A.

Bureau of Economic Analysis Regional Economic Accounts and the U.S.

Bureau of Labor Statistics Census of Employment and Wages.

The public hearing and disclosure of economic development subsidy contained herein have been duly noticed and carried out in accordance with the requirements of California Government Code Section 53083.

SECTION 3. Environmental Review. The passage of this Resolution and entering into a Grant Agreement is not considered a project under CEQA Guidelines Section 15378.

SECTION 4. Grant Agreement. City staff are hereby authorized to execute the Grant Agreement in the form and manner approved by the City Attorney, attached as Exhibit A, and to duly oversee and carry out the terms and conditions of the Lease Agreement.

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.

Resolution No. _____ (2026 Series) Page 4
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___________________________
Mayor Erica A. Stewart
ATTEST:
______________________
Teresa Purrington
City Clerk
APPROVED AS TO FORM:
______________________
J. Christine Dietrick
City Attorney
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of San Luis Obispo, California, on ______________________. ___________________________
Teresa Purrington
City Clerk

PROPOSAL FOR SUPPORTING THE FUTURE
SAN LUIS OBISPO MUSEUM OF ART:

A NEW HOME IN THE HEART OF DOWNTOWN
1

1010 BROAD STREET at Mission Plaza
POST OFFICE BOX 813
SAN LUIS OBISPO, CA 93406
PH: 805-543-8562
[email protected]
Ermina Karim
Co-Chair
Cheryl Cuming
Co-Chair
Trudie Safreno
Treasurer
Barbara Bell
Executive Committee
Lindsey Harn
Executive Committee
John Dunn
Board Member
Celeste Hope
Board Member
Beya Makekau
Board Member
Mike Quamma
Board Member
Missy Reitner- Cameron
Board Member
David Richards
Board Member
Amy Wright
Board Member
Leann Standish
Executive Director
Dear Mayor Stewart and Honorable Councilmembers
Boswell, Francis, Marx, and Shoresman:

For more than six decades, every City Council— including this one—has made bold investments to reinforce and enrich our community’ s economic and cultural vitality. From the creation of Mission Plaza to the support of the PAC to the soonto-open SLO REP Theatre, each generation of civic leaders has proven through their vision and action that City investment in our social infrastructure is essential to shaping a vibrant, resilient community.

In each case, the presiding City Councils recognized that transformative projects seldom come without risk. They weighed long-term returns, ensured alignment with Major City Goals, and moved forward to strengthen the cultural and economic fabric of our community.

The Next Chapter in Civic Investment
Today, the San Luis Obispo Museum of Art (SLOMA) presents the next opportunity for civic investment and community transformation. Expanding from its historic home at 1010 Broad Street, the Museum will bring together three Higuera Street storefronts ( 778, 782, and 786) to form a 24,000-square- foot campus— bridging Mission Plaza and the vibrant downtown core with art and community. The total project is estimated at $20 million, to be raised in two phases.

October 29, 2025
2

We respectfully request that the City invest $ 2.5 million to help bring this once-in-a-generation project to completion. A portion—$ 500,000—would help complete the first of two phases, outfitting the new Museum with the furnishings needed to welcome students, families, and visitors from across and outside the region. The remaining $ 2 million commitment would assist in the property’ s eventual purchase, ensuring this downtown treasure remains a permanent part of San Luis Obispo’ s cultural landscape.

Importantly, the City’s support now would immediately qualify for a time-limited $ 2 million matching contribution from the Forbes family, thereby doubling the impact of the City’s investment and signaling to major donors that San Luis Obispo is ready to match their confidence with civic commitment. In doing so, the City would be joining a collection of private donors who, in total, have already pledged $ 8 million.

An Aligned Investment
SLOMA’s planned expansion embodies San Luis Obispo’ s vision for a sustainable, inclusive, and economically vibrant community. It will directly advance the City Council’ s Major Goals FY 2025– 27) for Cultural Vitality, Economic Resilience, and Fiscal Sustainability as well as Diversity, Equity, and Inclusion. Moreover, it is in alignment with the City’s long-term vision as articulated in the Downtown Concept, Mission Plaza, and Economic Development Strategic Plans and reflects priorities identified by Resonance Consultancy in its Downtown Future Forum Report ( 2021). Together, these efforts reinforce decades of civic investment in a thriving, culturally rich, interconnected downtown core.

The expanded SLOMA will strengthen San Luis Obispo by:

Providing a year-round, everyday reason for residents and visitors alike to visit downtown, thus increasing foot traffic and tourism and generating an expected $ 4–$6 million in new annual downtown spending.

Creating an accessible, public destination that will fuel the momentum of downtown revitalization and enrich the city’s enduring sense of place.

Exponentially increasing the educational programming and enrollment capacity for local students and families across the Central Coast to build creativity, confidence, anda deeper sense of belonging in our community.

Drawing visitors from across the Central Coast to the only art museum between Monterey and Santa Barbara, thus strengthening San Luis Obispo’ s reputation as a regional cultural capital and place of creative belonging.

A Timely Catalyst
Our moment is now. City participation at this stage will help the Museum secure matching funds that will otherwise expire at year-end. Timely participation would also inspire additional private donations keeping the project on track for ground breaking in 2026, and a grand opening in early 2027.

San Luis Obispo Museum of Art — Grant Request
3

Private donors are responding enthusiastically to the Museum’ s vision: Since August 2025, SLOMA has quietly raised $ 8 million in cash and pledges from donors across the region, including nearly $ 600,000 in qualifying gifts toward the Forbes family’s $2-million challenge grant. When the full match is realized, total funds raised will exceed $ 11 million, more than half of the overall $ 20 million campaign goal.

It’s worth repeating: In just 10 short weeks, our community has rallied around this vision with remarkable enthusiasm, making it clear through their generosity that this project reflects both the needs of today and the dreams of what San Luis Obispo can be for generations to come.

Few moments offer such clear alignment between community will, private investment, and public purpose.

By partnering in this effort, the City will extend a long legacy of transformational civic investments that strengthen downtown, fuel economic opportunity, and ensure that art and creativity remain central to San Luis Obispo’ s identity for generations to come.

We are grateful for your leadership and consideration.

Respectfully submitted,
Leann Standish Ermina Karim
SLOMA Executive Director Co-Chair, SLOMA Board of Directors San Luis Obispo Museum of Art — Grant Request
4

WHY IT MATTERS:

A DOWNTOWN ANCHOR FOR GENERATIONS TO COME
SLOMA’s expansion is about more than adding walls for art: it’s about creating the kind of shared civic space that makes a city feel alive.

Across the nation, libraries and museums are emerging as vital anchors of community life, providing the social infrastructure that helps people connect, learn, and imagine together.

They invigorate downtowns, fuel local economies and give residents a sense of belonging that digital life cannot replace.

The City’s own advisors, Resonance Consultancy, have emphasized that this kind of activation— where culture, community, and commerce intersect— is exactly what defines a thriving 21st-century downtown. Their Downtown Future Forum Report and Visit SLO CAL Destination Management Strategy both point to cultural vitality and authentic local experiences as essential to ensuring a vibrant community, one that attracts and inspires people to be engaged in the civic life of their community ( see Appendix).

Across the world, cities that are thriving did not happen by chance; they are the products of clear visions and bold investments in the facilities and experiences that cultivate creativity and connection.

It’s worth recalling a few defining moments when City Councils made forward-looking investments that forever changed San Luis Obispo’ s trajectory:

Mission Plaza ( 1970): Against considerable objections from the business community, the Council transformed a section of Monterey Street into one of California’ s first pedestrian plazas. Fifty-five years later, Mission Plaza remains the heart of downtown and is celebrated as the jewel of San Luis Obispo— a model for small- city revitalization and placemaking.

Performing Arts Center at Cal Poly (1990s): In partnership with Cal Poly and the Foundation for the Performing Arts Center ( FPAC), the City contributed over $5 million— about one-sixth of the total $ 30 million cost —to help build a world- class venue not far from downtown. In addition, for more than three decades, the City has shared in annual operating support alongside Cal Poly and FPAC, keeping the facility accessible and sustaining a robust calendar of performances that draw audiences from across the region.

Chinatown / Hotel SLO (2012): Once again, the Council forged ahead over objections from those lamenting the loss of parking, enabling the creation of the Chinatown project. The result— Hotel SLO—has become a cornerstone of downtown’ s social and economic vitality, generating significant TOT revenue and strengthening downtown’ s role as the city’ s shared gathering place.

San Luis Obispo Museum of Art — Grant Request
5

SLO REP Theatre ( 2020s): Coming soon, thanks to the City’s continued financial support and a vision dating to the 1990s, SLO REP will break ground on a new performing arts venue expected to draw 50,000 patrons to downtown annually.

Each of these decisions reshaped downtown in lasting ways. The expanded SLOMA represents the next bold step in that continuum— an investment that ensures our city’s core remains dynamic, economically vibrant and welcoming to all.

What the Expansion Will Offer
SLOMA’s expansion will connect the Museum’ s historic home overlooking Mission Plaza at 1010 Broad Street to two adjacent buildings on Higuera Street, whose combined three storefronts will create a unified 24, 000- square-foot art and community campus in the heart of downtown. This dual-front presence will physically link Mission Plaza and Higuera Street – creating a new gateway between civic, creative, and commercial life—weaving together two of San Luis Obispo’ s most vibrant pedestrian corridors and activating them with art, education, and community life.

The expansion will advance in two sequenced phases to ensure fiscal responsibility and steady progress:

Phase 1 ($10.4 million): Getting a museum built. This initial phase will transform three connected, underutilized Higuera Street spaces into one new museum with four galleries, community gathering areas, and a museum store. It encompasses design, permitting, construction, and all furnishings, fixtures, and equipment needed to open to the public as well as bridge funding to support operations during the transition period to the new facility. Completing Phase 1 will deliver a fully operational museum and a visible, highimpact anchor for downtown vitality. Our goal for opening to the public is January 2027.

Importantly, SLOMA is contracting with local design and construction firms that rely on local labor.

Phase 2 ($10 million): Securing the Museum’ s future. Once construction is complete, the second phase will purchase the property outright and establish an operating endowment, ensuring that the Museum’ s presence downtown— and the City’s investment— are protected for generations to come. This structure provides long-term financial sustainability and allows the Museum to continue leveraging private philanthropy for ongoing growth and programming.

The project will deliver not only more space for art and education but also new sources of earned income that will make SLOMA more financially self- sustaining for the long term. Once fully operational, the new Museum is projected— based on the Lord Cultural Resources feasibility study— to draw close to 110,000 annually to the heart of downtown and generate San Luis Obispo Museum of Art — Grant Request
6

millions in additional economic activity for nearby retailers, restaurants, and hotels ( see Appendix).

But more than that, the expanded Museum will be an everyday reason to come downtown.

By presenting 10 to 15 exhibitions each year, alongside public programs, school tours, and community events, SLOMA will give residents and visitors multiple new reasons to return downtown again and again— building civic connection and sustaining local commerce yearround. Improvements include:

Expanded Gallery Space: With nearly triple the
current exhibition area, the expanded Museum will,
for the first time, be able to host major traveling and co-curated exhibitions, while continuing to champion
regional talent. Partnerships with peer institutions will allow SLOMA to share costs and visibility, bringing
nationally- recognized art to San Luis Obispo,
and making world-class exhibitions accessible to
community members who might not otherwise have
the opportunity to experience them.

A Dedicated Education Space: Transforming the 1010
Broad Street building into classrooms will more than
double SLOMA’s reach as an educational resource—
restoring access to hands- on art learning that has
largely disappeared from many local schools. The
space will provide a permanent home for expanded
programming, including field trips, art camps,
teacher training, and community workshops, serving
thousands of students annually while supporting
lifelong learning for adults and families across the
county ( see Appendix).

Cultural Gathering and Event Spaces: The expansion
includes a versatile indoor gathering hall and outdoor
patio, designed to accommodate artist talks, small
performances, civic dialogues, and community
celebrations. These flexible spaces will serve as a
cultural commons for residents and visitors while
generating new earned income through event rentals.

San Luis Obispo Museum of Art — Grant Request
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Historic Façade Restoration and Streetscape
Improvements: The project will restore and unify
the historic façades of two downtown buildings,
thereby enhancing architectural character, lighting,
and accessibility, and contributing to a more inviting
pedestrian experience that will benefit the entire
downtown core.

Financial Sustainability: The expansion will generate
new earned- income streams from event rentals, the
museum store, and public programs thus making
SLOMA more self-sustaining and resilient, less
dependent on donor income, and better equipped to
sustain operations for decades to come.

A small museum shop on Higuera Street will feature
artist-made goods and publications, extending the
visitor experience while activating the street frontage.

Sustainable Design and Accessibility: Adaptive reuse
will minimize carbon impact, preserve the historic
downtown scale, and ensure full ADA accessibility,
energy efficiency, and flexible design for future needs.

As a conservative estimate, these spaces will enable the Museum to double annual attendance to nearly 110,000, more than double educational participation, and greatly expand year-round programming establishing SLOMA as both a cultural anchor and a magnet attracting residents and visitors year-round to the downtown core (see Appendix).

Alignment with Major City Goals
As both a cultural investment and an economic catalyst, this expansion is in full alignment with this Council’ s Major City Goals ( FY 2025– 27) for Cultural Vitality, Economic Resilience, and Fiscal Sustainability, as well as Diversity, Equity, and Inclusion:

Promote Economic Resilience
Research from Americans for the Arts shows arts patrons spend an additional $ 25–$70 per visit on local food, retail, and lodging. The expanded Museum is projected to generate conservatively $ 4–$6 million in new downtown spending each year, serving as both San Luis Obispo Museum of Art — Grant Request
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a destination and a catalyst for surrounding businesses. The Economic Impact of the Arts & Culture Sector report for 2025 found that SLO County nonprofit arts and cultural organizations like SLOMA contributed to $291.1 million in visitor spending, yielding a total economic impact of $478.7 million, supporting 5,163 jobs countywide. The City of San Luis Obispo alone received $ 99 million in arts-related spending with a total impact of $163 million, underscoring that investment in culture directly strengthens our local and regional economy ( see Appendix).

Beyond its direct impact, SLOMA addresses a broader economic reality about the changing character of downtowns, shifting from their role as retail cores toward experience- driven destinations that combine culture, dining, and social gathering to attract residents, visitors, and workforce talent. A 2025 Cushman & Wakefield study (“ The Rise of the Experiential Economy”) found that thriving downtowns depend on experience- focused anchors such as museums, theaters, and cultural centers. These anchors typically represent less than two percent of urban real estate but they generate roughly one-quarter of total foot traffic in thriving downtowns ( see Appendix).

Locally, the Visit SLO CAL Destination Management Strategy, developed with Resonance Consultancy in 2019, reached similar conclusions: emphasizing that future visitors increasingly seek authentic experiences that connect them with local creativity, culture, and community. The report highlighted the need for new, high-quality cultural offerings to complement San Luis Obispo’ s natural assets and outdoor appeal, helping the region compete for both visitors and residents who value quality of life and belonging.

Building on that foundation, the project also directly advances three of the City’s top opportunities identified in theDowntown Future Forum Report (Resonance Consultancy, 2021): establishing a Cultural Arts & Entertainment District anchored by SLOMA and its neighboring institutions; reconnecting public spaces along the creek and Mission Plaza into a cohesive cultural and pedestrian corridor; and strengthening a walkable, experiencedriven downtown core that attracts residents and visitors year-round ( see Appendix).

Finally, just as the City’s financial support and partnership with REACH and the Cal Poly’ s Center for Innovation & Entrepreneurship strengthen the region’ s innovation economy, investment in SLOMA will enhance the quality of life essential to attracting and retaining the creative and professional workforce that local employers consistently cite as essential to their success.

Support Downtown Vitality and the Cultural Arts District The reimagined Museum will serve as a critically needed anchor on Higuera Street and a front door to the Cultural Corridor, drawing consistent, year-round pedestrian activity that also benefits surrounding restaurants, retailers, and hotels. With 2. 4 million pedestrians passing annually, the Museum will extend downtown energy beyond weekends and festivals— creating an accessible, open-to-all destination that provides a perpetual return on the City’s long-term investment in the cultural arts.

San Luis Obispo Museum of Art — Grant Request
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Advance Diversity, Equity & Inclusion
The repurposed Education Center at 1010 Broad Street will more than double SLOMA’s capacity to serve school- age children and families across the county, especially in rural districts and schools serving low-income communities where formal arts instruction is limited or absent. In partnership with schools, after-school programs, and youth organizations, the Museum will deliver accessible, curriculum- aligned arts learning experiences that nurture creativity, critical thinking, and belonging— skills essential to both academic success and future workforce readiness.

At the same time, through exhibitions co-curated with community partners and a sustained commitment to presenting artists and stories from underrepresented communities, SLOMA ensures that every resident and visitor can see themselves reflected and inspired, keeping creativity, inclusion, and shared identity at the center of civic life.

Champion Sustainability and Stewardship
The adaptive reuse of two existing downtown buildings will cut construction- related carbon emissions by more than half compared to new construction, while preserving the historic urban fabric that defines San Luis Obispo’ s character. Energy- efficient systems, improved accessibility, and restored façades will reduce operational costs and advance the City’s goal of carbon neutrality by 2035—an investment that models environmental responsibility and fiscal prudence. SLOMA has retained local design and construction firms who rely on local labor to do the work.

In addition, the project directly advances three of the City’s top opportunities identified in the Downtown Future Forum Report (Resonance Consultancy, 2021): establishing a Cultural Arts & Entertainment District anchored by SLOMA and its neighboring institutions; reconnecting public spaces along San Luis Creek and Mission Plaza into a cohesive cultural and pedestrian corridor; and strengthening a walkable, experience- driven downtown core that attracts residents and visitors year-round.

SLOMA Ascendant: A 60-Year Legacy, a 5-Year Transformation While the organization’ s roots stretch back more than 60 years to its origins as the San Luis Obispo Art Center, the past five years have painted a clear picture of what SLOMA could do in expanded space. Its performance over the past five years shows it can translate vision into impact and manage public investment with accountability.

Since reopening after COVID under renewed staff and board leadership, the Museum has strengthened every facet of its work: dramatically increasing attendance, expanding arts education, growing financial capacity, and forging new civic and community partnerships.

The result is an institution that honors its legacy while embracing a modern vision of access, San Luis Obispo Museum of Art — Grant Request
10

inclusion, and artistic excellence— one that stands today as a proven and accountable partner for City investment.

Audience Growth
Annual visitation has increased from roughly 30,000 in 2019 to 50,000 in 2025, all with free admission.

Student Access
With a focus on inclusivity and access, each year SLOMA distributes 2,500+ free bilingual art kits through its youth education programs. In addition, free school tours have grown from about 250 students in 2019 to 614 so far this year, with more than 60% from Title I schools.

Financial Strength
Contributions and grants have more than doubled— from $330,000 in FY 2019– 20 to over 800,000 in FY 2024– 25—reflecting growing donor confidence and institutional stability. The number of individual donors has also increased by over 50%, and since 2020 SLOMA has established a robust business sponsorship program— now 16 partners strong— alongside a steady stream of competitive grant funding that was not historically secured.

Highlighting Central Coast Creativity
Nearly half (43%) of the artists featured since 2020 hail from the Central Coast, shown in conversation with artists from across the nation and around the world— positioning San Luis Obispo as both a platform for local voices and a participant in the global arts dialogue.

Showcasing Diverse and Underrepresented Artists
Over the last five years, more than half of SLOMA’ s featured exhibitions have highlighted women, artists of color, or LGBTQ+ artists. Over that same period, we’ve seen engagement with more diverse communities, many of whom are visiting SLOMA for the first time.

Community Partnerships
SLOMA has collaborated with organizations including the GALA Pride & Diversity Center, SLO County Arts Council, Festival Mozaic, SLO Movement Arts, and Sensorio to co-develop exhibitions and public programs that elevate local voices and reflect the region’s creative diversity. In addition, the Museum partners with a wide range of community organizations— including Woods Humane Society, the Diversity Coalition, EcoSlo, SLO County UndocuSupport, RACE Matters and others— to expand visibility, reach new audiences, and celebrate the many facets of our community.

Specialized Educational and Therapeutic Programming
In partnership with Cuesta College and Cal Poly, SLOMA regularly provides students with hands- on curatorial experience, exhibition training, and in-classroom learning opportunities, while newer collaborations with Adventist Health and Hospice SLO County are piloting therapeutic art workshops for patients and community members demonstrating how creativity fosters learning, healing, and human connection.

San Luis Obispo Museum of Art — Grant Request
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Civic Leadership and Recognition
SLOMA has completed the Museum Assessment Program with the American Alliance of Museums and the Institute of Museum and Library Services ( 2021) and secured multiple, highly- competitive state and federal grants from the National Endowment for the Arts, IMLS, and California Arts Council ( 2021– 2025).

City-SLOMA Public Art Partnership
Since entering a management agreement with the City in 2021, SLOMA has delivered seven permanent and temporary public art installations across San Luis Obispo.

Organizational Capacity
Staff has grown from three to nine, and SLOMA’ s exhibitions now receive statewide and national recognition. Since launching its internship program in 2020, the Museum has mentored 25+ college interns— many first- generation students— preparing the next generation of arts professionals.

Together, these outcomes demonstrate that SLOMA is not a new or untested idea—it is a thriving, forward- looking institution with the capacity, credibility, and community trust to deliver a strong return on City investment.

In Summary: A Sustainable and Inclusive Vision
SLOMA’s expansion embodies the City’s vision for a sustainable, inclusive, and economically vibrant community. With steady growth, diversified revenue streams, and a planned endowment, SLOMA enters this project from a position of strength and stewardship.

A Once-in-a-Generation Opportunity: The move to Higuera Street places SLOMA at the epicenter of the city’s pedestrian and cultural life—converting 2.4 million annual pedestrians into year-round cultural engagement, small- business activity, and civic pride.

Continuity of Cultural Investment: Continuity of Cultural Investment: As with the Performing Arts Center and SLO REP,partnering with SLOMA continues a proven City strategy: leveraging nonprofit institutions to achieve public goals for community vitality, education, and economic resilience— anchored downtown and across the city.

Fiscal Responsibility: The requested $ 2.5 million represents roughly one percent of the City’s current Capital Improvement Plan—a modest investment relative to scale, yet one that yields an outsized return in economic benefit, downtown activation, and cultural identity.

San Luis Obispo Museum of Art — Grant Request
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San Luis Obispo Museum of Art — Grant Request
This opportunity is time-sensitive. The alignment of public priorities, private philanthropy, and available downtown property is rare—and is unlikely to come again soon. With design work underway, donor momentum accelerating, and matching funds on the line, City partnership at this moment would secure millions in private investment and ensure the project moves forward on schedule.

By investing in this project, the City will help transform three centrally located downtown spaces into a living cultural landmark— one that strengthens civic pride, attracts visitors and employers, and strengthens downtown’ s vitality.

This is a moment of convergence— where vision, readiness, and opportunity come together in a shared purpose.

By stepping forward now, the City can help realize a project decades in the dreaming and ensure that art and creativity remain central to the San Luis Obispo story for generations to come.
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APPENDIX

1. Economic Impact of the Arts 3

2. Expansion Feasibility Report & Attendance Projections 5

3. Citywide Economic Development & Placemaking 7

4. Downtown Development & Cultural Anchors 9

5. The Creative Economy 11

6. The Rise of the Experiential Economy 12

7. Workforce Expansion 13

8. Arts Education: New Programming Projections 14

9. Artist Renderings: Introducing the New San Luis Obispo Museum of Art 15

10. Digital Sources: Links 18
To project the economic impact of SLOMA’s planned expansion, we based our analysis on the following sources:

San Luis Obispo Museum of Art — Grant Request Appendix 1

i. Appendix Executive Summary
The San Luis Obispo Museum of Art (SLOMA) and its planned expansion align closely with the City of San Luis Obispo’s broader economic, cultural, and community development goals. Collectively, the sources in this Appendix demonstrate the vital role of arts and culture in fostering economic growth, downtown vitality, workforce development, and placemaking.

Economic Impact of the Arts
The Arts & Economic Prosperity 5 (2015) study found that San Luis Obispo County’s nonprofit arts and culture sector generated $27.7 million in direct economic activity, supporting 916 jobs and producing $1.1 million in local government revenue. Event attendees spent an average of $30.67 per person, benefiting local restaurants, shops, and hotels. Building on this, Arts & Economic Prosperity 6 (2023) offers an impact calculator that estimates SLOMA’s operations and audiences will contribute nearly $5 million annually to the City’s economy, including $3 million in direct audience spending.

Expansion Feasibility Report & Attendance Projections
According to Lord Cultural Resources’ 2023 Feasibility Study, a new museum facility would conservatively attract nearly 110,000 visitors annually, giving residents and visitors alike a new reason to come downtown.

Citywide Economic Development & Placemaking
The City’s 2023 Economic Development Strategic Plan (EDSP) identifies Placemaking & Promotion as a key pillar for economic resilience. Central to this strategy is strengthening partnerships with and funding for the arts community, recognizing that cultural vitality enriches civic life and drives sustainable economic development.

Downtown Development & Cultural Anchors
Resonance Consultancy’s 2021 Downtown SLO Development Report positions cultural institutions, including SLOMA, as major catalysts for downtown revitalization. The study identifies SLOMA’s expansion as a top opportunity to enhance the city’s Cultural District, attract new visitors, and stimulate local business activity.

The Creative Economy
The 2025 Economic Impact of the Arts & Culture Sector report underscores the magnitude of the local creative economy: countywide, arts and culture generated $478.7 million in total economic impact and supported over 5,000 jobs. Within the City of San Luis Obispo alone, the arts produced $163 million in total impact, highlighting the sector’s growing importance.

The Rise of the Experiential Economy
Cushman & Wakefield’ sThe Rise of the Experiential Economy ( 2025) confirms that museums and cultural centers, though typically comprising less than 2% of urban real estate, generate up to 25% of downtown foot traffic.

Workforce Expansion & Arts Education: New Programming Projections SLOMA’s workforce and education plans will create new professional positions, support local artists and educators, and expand arts education access through scholarships and new youth programs.

Artist Renderings: Introducing the New San Luis Obispo Museum of Art Walk the galleries of SLOMA’s future home on Higuera!
Together, these findings demonstrate that investment in SLOMA and the broader arts ecosystem is an investment in SLO’s economic vitality, cultural identity, and community well-being. The data consistently show that the arts are not peripheral—they are a central driver of prosperity, creativity, and connection.

San Luis Obispo Museum of Art — Grant Request Appendix 2

1. Economic Impact of the Arts
Arts & Economic Prosperity 5 is Americans for the Arts’ fifth study of the nonprofit arts and culture industry’ s impact on the economy. It documents the economic contributions of the arts in 341 diverse communities and regions across the country, representing all 50 states and the District of Columbia.

The Arts & Economic Prosperity 5 report included a breakdown specific to San Luis Obispo County, revealing that the local arts and culture sector generated more than $27.7 million in direct economic activity through organizational spending and visitor income. Attendees at arts and cultural events spent an average of $30.67 per person, supporting locally owned restaurants, shops, hotels, and transportation services. Notably, these figures reflect 2015 dollars—meaning the sector’ s current economic impact is even greater today.

The Economic Impact of Nonprofit Arts and
Cultural Organizations and Their Audiences in
San Luis Obispo County, CA (Fiscal Year 2015)
Direct Economic Activity
Arts and Cultural
Organizations +
Arts and Cultural
Audiences =
Total Industry
Expenditures
Total Industry Expenditures $ 13,693,022 $ 14,029,567 $ 27,722,589 Economic Impact of Spending by Arts and Cultural Organizations and Their Audiences Total Economic Impact of Expenditures
Economic Impact of
Organizations +
Economic Impact of
Audiences =
Total
Economic Impact
Full-Time Equivalent ( FTE) Jobs Supported 543 373 916
Household Income Paid to Residents $ 9,527,000 $ 7,315,000 $ 16,842,000 Revenue Generated to Local Government $ 507,000 $ 594,000 $ 1,101,000 Revenue Generated to State Government $ 632,000 $ 1,018,000 $ 1,650,000 Event- Related Spending by Arts and Cultural Audiences Totaled $ 14 million ( excluding the cost of admission) Attendance to Arts and Culture Events
Resident1
Attendees +
Nonresident1
Attendees =
All
Cultural Audiences
Total Attendance to Arts and Culture Events 381,226 75,879 457,105 Percentage of Total Attendance 83.4% 16.6% 100.0%
Average Event- Related Spending Per Person $ 23.37 $ 67.48 $ 30.67 Total Event- Related Expenditures $ 8,909,252 $ 5,120, 315 $ 14,029,567 Nonprofit Arts and Cultural Event Attendees Spend an Average of $30.67 Per Person ( excluding the cost of admission) Category of Event- Related Expenditure
Resident1
Attendees
Nonresident1
Attendees
All
Cultural Audiences
Meals and Refreshments $ 13.86 $ 20.99 $ 15.04
Souvenirs and Gifts $ 5.73 $ 3.78 $ 5.41
Ground Transportation $ 1.83 $ 7.69 $ 2.80
Overnight Lodging ( one night only) $ 0.79 $ 32.28 $ 6.00 Other/ Miscellaneous $ 1.16 $ 2.74 $ 1.42
Average Event- Related Spending Per Person $ 23.37 $ 67.48 $ 30.67 Source: Arts & Economic Prosperity 5: The Economic Impact of Nonprofit Arts and Cultural Organizations and Their Audiences in San Luis Obispo County. For more information about this study or about other cultural initiatives in San Luis Obispo County, visit ARTS Obispo’ s web site at www. sloartscouncil. org.

Copyright 2017 by Americans for the Arts ( www.AmericansForTheArts. org).

San Luis Obispo Museum of Art — Grant Request Appendix 3

The newly released Arts & Economic Prosperity 6 (AEP6) report is a comprehensive economic and social impact study of the nation’ s nonprofit arts and culture industry. Building on a 30- year legacy as the largest and most inclusive study of its kind, AEP6 presents detailed findings from 373 regions across all 50 states and Puerto Rico—spanning communities from 4,000 to 4 million residents, and representing rural, suburban, and urban areas alike.

While San Luis Obispo County did not participate in AEP6, the report includes a tool to estimate local impact. Using this calculator, projections for SLOMA alone indicate an estimated $ 3 million in annual audience spending directly supporting local businesses, and nearly $ 5 million in total yearly economic activity within the City of San Luis Obispo.

Definitions:

Total Expenditures:

The total dollars spent by your nonprofit arts and cultural organization and its audiences; event- related spending by cultural audiences is estimated using the average dollars spent per person, per event by cultural attendees in similarly populated communities.

Jobs ( Employment):

Employment data in IMPLAN is an annual average headcount of full time, part time, and seasonal employment. Note that a person can hold more than one job, so the job count is not necessarily the same as the count of employed persons. While IMPLAN employment adjusts for seasonality, it does not indicate the number of hours worked per day. It is not, therefore, equal to full time equivalents. This is the same definition used by the U. S. Bureau of Economic Analysis Regional Economic Accounts and the U.S. Bureau of Labor Statistics Census of Employment and Wages.

Household Income:

The total dollars paid to community residents as a result of the expenditures made by your arts and cultural organization and/ or its audiences. Household income includes salaries, wages, and entrepreneurial income paid to residents. It is the money residents earn and use to pay for food, shelter, utilities, and other living expenses.

Government Revenue:

The total dollars received by local, state and federal governments as a result of the expenditures made by your arts and cultural organization and/ or its audiences. Government revenue includes revenue from local and state taxes ( e. g., income, sales, lodging, real estate, personal property) as well as funds from license fees, utility fees, filing fees, and other similar sources. Local government revenue includes funds to governmental units such as city, county, township, and school districts, and other special districts.

When using estimates derived from this calculator, always keep the following caveats in mind: ( 1) the results of this analysis are based upon the averages of similarly populated communities, ( 2) a unique input- output model was customized for each of these similarly populated communities, providing very specific employment, household income, and government revenue data, and (3) your results are therefore estimates, and should not be used as a substitute for conducting an economic impact study that is customized for your community.

San Luis Obispo Museum of Art — Grant Request Appendix 4

2. Expansion Feasibility Report & Attendance Projections From 2022– 2023, Lord Cultural Resources ( LCR) worked with SLOMA’s staff, board, and members of our community to complete a feasibility study for a new building at our current site at 1010 Broad Street. The report compared similar markets and institutions to formulate projections for operations and engagement. LCR projected that SLOMA would attain an annual attendance average of 106,200 ( see excerpt below). While this figure is based on SLOMA’ s current space on Broad Street and does not include updated estimates based on Higuera Street’ s foot traffic of about 2.4 million/ year, we have included this data as a conservative estimate of our projected attendance.

San Luis Obispo Museum of Art
New Building Facilities and Operations Focused Feasibility Study: Final Report Making the World a Better Place Through Culture Lord Cultural Resources 64 At this stage of planning, the capital and project cost estimates total about $54.8 million.

This includes construction and demolition costs, other capital costs and contingencies and escalations to the construction bid period in the first quarter of 2028, with assumed construction completion by 2030.

In addition to demolition and construction costs, the capital costs include an allowance for furniture, fixtures and equipment, as well as professional and other fees. There is also a preliminary allowance of $2 million for development of a sculpture park, taking site development uncertainties into account, and the acquisition of works of art for the park.

Project costs also include an assumed endowment growth of $1 million.

Among the exclusions at this stage are site development costs that may be beyond a basic level as well as pre-opening fundraising and other costs. The detailed capital and project cost estimates are found in Appendix C of this report.

7.2 ATTENDANCE, OPERATING REVENUE AND

EXPENSE PROJECTIONS
Set out here are our projections of attendance, operating revenues and expenses for the San Luis Obispo Museum of Art (SLOMA) assuming implementation of the plans/assumptions associated with its larger new facility in the directed Ideal Scenario.

The projections take into account the contextual, comparables and market analyses in Chapters 2 and 3, the strategic directions in Chapter 4 and the facility and operational recommendations/ assumptions in Chapters 5 and 6, as well as the judgment and experience of the consultants.

7.2.1 ON-SITE ATTENDANCE PROJECTIONS
The focus in this section is on-site attendance projections associated with the expanded SLOMA facility based on agreed assumptions, benchmarking data and the judgment and experience of the consultants.

To estimate the number of visitors likely to attend the future SLOMA first requires a reasonable definition of who would or would not be defined as a visitor. For the purposes of this analysis, a visitor is someone who attends an exhibition or program within the museum, including those who attend venue rentals. This definition excludes persons who only use the gift shop or who are outdoors for events or to walk the sculpture park but do not enter the museum. The definition of a visitor also excludes staff and volunteers, service, and delivery people and those who access SLOMA through the internet or through outreach to schools or other community facilities. It is on-site attendance by actual visitors.

It is also important to emphasize that there is no simple computer formula that leads to accurate attendance projections. While there are ratios and formulas that have been used, including from the experience of comparable or similar institutions, all quantitative methods have weaknesses. And it is important to note, in utilizing data from other museums, that there are a variety of definitions of what constitutes a visitor and no complete certainty that San Luis Obispo Museum of Art
New Building Facilities and Operations Focused Feasibility Study: Final Report At this stage of planning, the capital and project cost estimates total about $54.8 million.

This includes construction and demolition costs, other capital costs and contingencies and escalations to the construction bid period in the first quarter of 2028, with assumed construction completion by 2030.

In addition to demolition and construction costs, the capital costs include an allowance for furniture, fixtures and equipment, as well as professional and other fees. There is also a preliminary allowance of $2 million for development of a sculpture park, taking site development uncertainties into account, and the acquisition of works of art for the park.

Project costs also include an assumed endowment growth of $1 million.

Among the exclusions at this stage are site development costs that may be beyond a basic level as well as pre-opening fundraising and other costs. The detailed capital and project cost estimates are found in Appendix C of this report.

7.2 ATTENDANCE, OPERATING REVENUE AND

EXPENSE PROJECTIONS
Set out here are our projections of attendance, operating revenues and expenses for the San Luis Obispo Museum of Art (SLOMA) assuming implementation of the plans/assumptions associated with its larger new facility in the directed Ideal Scenario.

The projections take into account the contextual, comparables and market analyses in Chapters 2 and 3, the strategic directions in Chapter 4 and the facility and operational recommendations/ assumptions in Chapters 5 and 6, as well as the judgment and experience of the consultants.

7.2.1 ON-SITE ATTENDANCE PROJECTIONS
The focus in this section is on-site attendance projections associated with the expanded SLOMA facility based on agreed assumptions, benchmarking data and the judgment and experience of the consultants.

To estimate the number of visitors likely to attend the future SLOMA first requires a reasonable definition of who would or would not be defined as a visitor. For the purposes of this analysis, a visitor is someone who attends an exhibition or program within the museum, including those who attend venue rentals. This definition excludes persons who only use the gift shop or who are outdoors for events or to walk the sculpture park but do not enter the museum. The definition of a visitor also excludes staff and volunteers, service, and delivery people and those who access SLOMA through the internet or through outreach to schools or other community facilities. It is on-site attendance by actual visitors.

San Luis Obispo Museum of Art — Grant Request Appendix 5

San Luis Obispo Museum of Art
New Building Facilities and Operations Focused Feasibility Study: Final Report Making the World a Better Place Through Culture Lord Cultural Resources 65 the comparative attendance figures reported are accurate. The ratios and benchmarks nonetheless help to inform our judgment in preparing the attendance projections for the future SLOMA.

Ratios For On-Site Attendance Projections
The quantitative methods used to help inform the attendance projections for the future SLOMA are as follows.

Extrapolation from Base Level SLOMA Figures Based on Exhibition Space Growth In 2019, SLOMA operated more like a commercial art gallery than an art museum, so its estimated 30,000 attendance figure is less reliable than the 50,000 visitors initially expected in 2023 to serve as the base level for the attendance projections, based on free admission. However, we have lowered the attendance estimate to 45,000 as the base level for the purposes of these projections taking more recent considerations into account.

The size of the exhibition space did not change from 2019 to 2023 and is 3.814 net sq. ft.

Using the 45,000 base level attendance figure leads to a ratio of about 11.8 visitors per net sq. ft. of exhibition space.

The assumption is that the Ideal Scenario expansion of SLOMA facility will increase the total exhibition space to 9,000 net sq. ft. Applying the same ratio of visitors per square foot exhibition space leads to an estimate of about 106,200 visitors in a stabilized year of operation, assumed to be Year 3.

Extrapolations From Selected Comparable Art Museums
Chapter 2.2 includes detailed attendance, facility, operational and financial data as reported by three non-collecting and three collecting art museums/ institutes. The attendance data used largely pre-COVID data regarding the six are set out below leading to ratios for the stabilized Year 3 of the future SLOMA facility and operation based both on the size of exhibition space and the size of the regional population. Average and median figures are set out and we have used the midpoint between those figures as the basis for the ratios.

San Luis Obispo Museum of Art — Grant Request Appendix 6

3. Citywide Economic Development & Placemaking
In July 2023, the City Council adopted an updated Economic Development Strategic Plan EDSP), aimed at advancing the economic vitality of San Luis Obispo. The plan outlines strategies to strengthen the City’s economic development initiatives while embedding the principles of sustainability, diversity, equity, and inclusion. It also emphasizes retaining existing businesses, expanding the arts and culture scene, and enhancing the vibrancy of Downtown.

The second pillar of the plan, Placemaking & Promotion, specifically highlights strengthening the City’ s working relationships with, and financial support of, the arts community as a key strategy for enriching cultural offerings and economic development throughout San Luis Obispo.

For the 2023 Economic Development Strategic Plan ( EDSP), the plan framework has been updated to respond to the dramatic changes that have taken place in the intervening years, both in terms of the City’ s internal efforts and the external economic development landscape.

MISSION STATEMENT
Promote, encourage, and enhance an economic environment that is dynamic and resilient with a focus on sustainable and equitable policies, programs, and processes.

GUIDING PRINCIPLES

ECONOMIC

RESILIENCE
Maintaining a
dynamic economic
and business
environment.

EQUITABLE

INCLUSIVE

ECONOMIC

DEVELOPMENT
Expanding economic
opportunities for
all residents and
businesses in San
Luis Obispo.

SUSTAINABLE

ECONOMIC

DEVELOPMENT
Ensuring economic
vitality through
climate and
system focused
sustainable growth.

HOLISTIC

APPROACH
Enhancing internal
and external
collaboration
for effective
execution and
implementation.

REGIONAL

COLLABORATION
Expanding
partnerships with
organizations across
the region.

MAJOR PILLARS

BUSINESS &

ENTREPRENEUR VITALITY
Improving the local business
environment and helping
entrepreneurs to thrive, adapt,
innovate, and grow in the face of
challenges and opportunities.

PLACEMAKING &

PROMOTION
Maintaining the city’s quality of
place while increasing awareness
of local amenities and fostering
a sense of inclusion among
residents and visitors.

TALENT DEVELOPMENT

ATTRACTION
Supporting initiatives that
develop the skills needed to
secure quality jobs as well as
attract and retain a skilled and
diverse workforce.

ECONOMIC DEVELOPMENT STRATEGIC PLAN UPDATE

PREPARED FOR THE CITY OF SAN LUIS OBISPO
San Luis Obispo Museum of Art — Grant Request Appendix 7

STRATEGIES
PILLAR 1

BUSINESS &

ENTREPRENEUR

VITALITY

1.1. BUSINESS RETENTION &
EXPANSION. Develop a proactive
and targeted approach to identify
and address the needs of existing
businesses, while creating an
environment that fosters growth and
innovation.

1.2. ENTREPRENEURIAL SUPPORT.

Continue to bolster the
entrepreneurial ecosystem by
improving access to resources,
education, and networks for
entrepreneurs.

1.3. BUSINESS PREPAREDNESS,
SUSTAINABILITY & RESILIENCY.

Implement disaster preparedness
measures that enhance the City’s
ability to respond to economic
disruptions and effectively support
business recovery following natural
disasters.

1.4. SMALL BUSINESS DEVELOPMENT.

Continue to support the small business
community to sustain growth.

1. 5. BUSINESS SUPPORT
INFRASTRUCTURE. Maintain efforts to
develop and grow business support
infrastructure and tools.

PILLAR 2

PLACEMAKING

PROMOTION

2.1. QUALITY OF PLACE PROMOTION.

Bolster efforts to promote the City
as an appealing destination for all
people to live, work, visit, and invest.

2.2. WELCOMING ENVIRONMENT.

Create an inclusive and friendly
environment for residents, workers,
and visitors.

2.3. DOWNTOWN VITALITY. Continue
to support and maintain a vibrant
and dynamic urban core that attracts
people and businesses.

2.4. CULTURAL VITALITY. Strengthen
working relationships with and
maintain financial support of the
arts community to enrich the cultural
offerings throughout the City.

2.5. INCLUSIVE NEIGHBORHOOD
PLANNING. Encourage inclusive
neighborhood planning efforts that
benefit residents and encourage both
housing production and economic
activity.

PILLAR 3
TALENT

DEVELOPMENT

ATTRACTION

3.1. SYSTEM DEVELOPMENT.

Encourage the continued
strengthening of the system to create
Moderate Income + jobs.

3.2. EMPLOYER AND EMPLOYEE
INTEGRATION. Develop
methodologies, tools, and programs
to welcome and acclimate new
employers and employees to the
community.

3.3. TALENT ATTRACTION AND
RETENTION. Position the City as
not just a place to visit but also a
desirable location to live and work.

3.4. EDUCATIONAL PARTNERSHIPS.

Leverage educational partnerships
to create and grow pathways
to Moderate Income+ jobs that
strengthen the local economy.

View the full plan and future updates online at
https:// www. slocity. org/business/ economic- development/ economic- development- strategic- plan.

San Luis Obispo Museum of Art — Grant Request Appendix 8

4. Downtown Development & Cultural Anchors
The City of SLO engaged Resonance Consultancy to create a Downtown SLO Development Recommendations report in 2021. The report explores residential, commercial, and public investment opportunities with local stakeholders as part of a Downtown Future Forum visioning workshop. The City’ s own report identified Cultural Institutions like SLOMA as a major asset, as they offer unique activities to residents and visitors, and are a significant draw for attracting more people downtown. The report also listed the Cultural District as a major opportunity for promoting SLO’s unique cultural scene throughout the region.
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CULTURAL

INSTITUTIONS
The museums and theaters located
downtown offer unique activities to
residents and visitors, and are a significant
draw for attracting more people
downtown.
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CULTURAL

DISTRICT
The concentration of cultural institutions
and venues is an opportunity to promote
SLO’s cultural scene in the region.
50 San Luis Obispo Museum of Art — Grant Request Appendix 9

The Downtown SLO Development Recommendations report specifically singled out the San Luis Obispo Museum of Art’s expansion as a major opportunity for Downtown SLO’s economic and cultural development.
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SLO MUSEUM OF

ART EXPANSION
An expansion of the Museum of Art could
act as a catalyst for cultural programming
in Downtown SLO.
51 San Luis Obispo Museum of Art — Grant Request Appendix 10

5. The Creative Economy
The 2025 Economic Impact of the Arts & Culture Sector report, created in collaboration with SLO County Arts, the City of El Paso de Robles, and the City of San Luis Obispo, detailed the immense impact of the arts and culture sector on the economies of SLO County. Countywide, arts and culture organizations like SLOMA contributed to “$291.1 million in visitor spending, yielding a total economic impact of $478.7 million, supporting 5,163 jobs countywide.” The City of San Luis Obispo alone received $ 99 million in arts-related spending with a total impact of $163 million.

The study also found that the role of local government and community support for arts and culture organizations was a significant point of discussion among focus groups, with participants specifically calling for increased government funding of the arts.

San Luis Obispo Museum of Art — Grant Request Appendix 11

6. The Rise of the Experiential Economy
A 2025 Cushman & Wakefield study (The Rise of the Experiential Economy) found that thriving downtowns depend on experience- focused anchors such as museums, theaters, and cultural centers.

These anchors typically represent less than two percent of urban real estate but they generate roughly one-quarter of total foot traffic in thriving downtowns.

In other words, SLOMA’ s planned expansion requires a relatively small investment that will generate a significant, positive impact for our region in general, and downtown SLO in particular.

San Luis Obispo Museum of Art — Grant Request Appendix 12

7. Workforce Expansion
Currently, SLOMA has a staff of 9 talented individuals ( 4 FT, 5 PT), with an annual payroll of about 530,000. Based on the recommendations of the 2023 Feasibility Study by Lord Cultural Resources, we expect to almost double our professional staff within the first year ( Table A). Seasonal contractors including exhibiting artists, teaching artists, and department interns are listed in Table B.

A. SLOMA Employees ( Current + New)
B. Artists, Art Educators, and Interns
San Luis Obispo Museum of Art — Grant Request Appendix 13

8. Arts Education: New Programming Projections
Current space limitations restrict both the scope of our programming and our community’ s access to arts education. Transforming SLOMA’ s existing facility at 1010 Broad Street into a dedicated Education Center will significantly expand our education capacity, allowing us to collaborate with more educational partners, grow current offerings, and introduce new programs for youth and adults including summer camps, after-school classes, and workshops.

The following projection outlines anticipated Year 1 program participation numbers for youth programming, with the majority of participants hailing from San Luis Obispo and neighboring cities.

Importantly, all youth programs will include scholarships and financial assistance for low-income families, ensuring that our educational opportunities remain fully accessible to ALL. SLOMA’s free youth education programs, like our popular Second Saturdays events and school tours, will continue.

Projections are based on comparable institutions and current enrollment in SLOMA’s existing programs.

C. New Youth Programming: Engagement Projections
San Luis Obispo Museum of Art — Grant Request Appendix 14

9. Artist Renderings: Introducing the New San Luis Obispo Museum of Art Walk through the galleries of SLOMA’s new home on Higuera.

Preliminary rendering: Higuera Street entrance
Lobby (center) with a museum gift shop (left)
San Luis Obispo Museum of Art — Grant Request Appendix 15

Trust Automation Gallery, with views and access to a creekside patio overlooking Mission Plaza The second of four beautiful galleries capable of exhibiting a variety of artistic media San Luis Obispo Museum of Art — Grant Request Appendix 16

Another spotlight gallery and a dramatic alcove for hanging art installations The creekside patio overlooking historic Mission Plaza will be a community asset and the perfect spot for artist talks, small performances, civic dialogues, and cultural celebrations GroupSan Renderings by RRM Design Luis Obispo Museum of Art — Grant Request Appendix 17

10. Digital Sources: Links
We have included links to content available online and referenced in this Appendix. 1a. Americans for the Arts’ Arts & Economic Prosperity reports, 5th edition Source: https:// www.americansforthearts. org/sites/default/ files/ pdf/ 2017/ by_program/ reports_ and_ data/aep5/map/CA_SanLuisObispoCounty_ AEP5_ OnePageSummary. pdf 1b. Arts & Economic Prosperity: 6th edition organizational calculator Source: https:// aep6.americansforthearts. org/calculator

2. City of SLO’ s Economic Development Strategic Plan
Source: https:// www.slocity.org/business/ economic- development/ economic- development- strategic-plan

3. Downtown SLO Development Recommendations, 2021
Source: https:// www.slocity.org/home/showpublisheddocument/ 30130/ 637557419326730000

4. 2025 Economic Impact of the Arts & Culture Sector report Source: https:// slocountyarts. org/creative- economy- report

5. The Rise of the Experiential Economy
Source: https:// www.cushmanwakefield. com/ en/ united- states/insights/ the-rise- of-the- experiential-economy San Luis Obispo Museum of Art — Grant Request Appendix 18

Making the World a Better Place Through Culture
San Luis Obispo
Museum of Art
(SLOMA)
New Building Facilities and Operations Focused
Feasibility Study
Final Report
Prepared by:

Lord Cultural Resources
Cost+Plus
February 2024

San Luis Obispo Museum of Art
New Building Facilities and Operations Focused Feasibility Study: Final Report Lord Cultural Resources is a global professional practice dedicated to making the world a better place through culture.

We assist people, communities, and organizations to realize and enhance cultural meaning and expression.

We distinguish ourselves through a comprehensive and
integrated full-service offering built on a foundation of key competencies: visioning, planning and implementation.

We value and believe in cultural expression as essential for all people. We conduct ourselves with respect for
collaboration, local adaptation and cultural diversity, embodying the highest standards of integrity, ethics and professional practice.

We help clients clarify their goals; we provide them with the tools to achieve those goals; and we leave a legacy as a result of training and collaboration.

Our Toronto office is located within the traditional territory of many nations, including the Mississaugas of the Credit, the Anishnabeg, the Chippewa, the Haudenosaunee and the
Wendat peoples. Our New York office is located on the
traditional lands of the Lenape peoples. Our Long Beach office is located on the land of the Tongva/Gabrieleño and the Acjachemen/Juaneño Nations, who have lived and
continue to live here.

We encourage you to acknowledge the presence of the
people who came before, wherever you are.

San Luis Obispo Museum of Art
New Building Facilities and Operations Focused Feasibility Study: Final Report Making the World a Better Place Through Culture Lord Cultural Resources 2

EXECUTIVE SUMMARY
This operations-focused feasibility study is intended to provide the foundation for a subsequent fundraising feasibility study, detailed architectural design, and then a capital fundraising campaign to lead to a long anticipated and needed new building for the San Luis Obispo Museum of Art (SLOMA) at its existing site. The current building has a wide variety of deficiencies and its small size limits opportunities to display more works of art, offer additional community programming, and to generate revenue from venue rentals and other earned income sources.

The recommendations in this feasibility study take into account the experience of comparable art museums, especially those without permanent collections, as well as other existing museums in and near San Luis Obispo. The recommendations also emerge from an analysis of the existing SLOMA operation, and of potential resident, school and tourist markets for San Luis Obispo and SLOMA in particular. And the recommendations take into account feedback and direction from internal workshops, an external interview process, the SLOMA strategic plan, and the judgment and experience of the consultant team.

The SLOMA Board-approved recommendations became assumptions for a new SLOMA facility and operation that in turn became the basis for capital cost estimates and projections of attendance, operating revenues and expenses for the future SLOMA.

Among the key assumptions are the following points:

Key Assumptions for Future SLOMA
• SLOMA will remain a non-collecting institution for the foreseeable future. This helps to limit the size of the building and the capital and operating cost requirements. • The SLOMA brand will be retained.
• The start of construction will be in 2028, which will be tied to the 60th anniversary of SLOMA, with the opening of the new building in 2030.
• At this pre-design stage, the net useable square footage for the new building is assumed to be 19,250 net square feet (nsf), of which 9,000 nsf will be gallery/exhibition space, compared to the current 3,814 nsf of exhibition space. The new building will also include a multi-purpose space for programs, events and venue

San Luis Obispo Museum of Art
New Building Facilities and Operations Focused Feasibility Study: Final Report Making the World a Better Place Through Culture Lord Cultural Resources 3 rentals and a classroom/artmaking space. Other assumptions include more building and exhibit support and additional office space.
• The total building size at this pre-design stage of planning is 26,950 gross square feet, which takes into account circulation, mechanical and electrical spaces, as well as wall thicknesses.
• The larger SLOMA facility and more exhibitions, public programs, venue rentals and other revenue generation will require a growth in the SLOMA staff from the current

6.5 FTE to 12.5 FTE.
• Rather than the current completely free admission, the assumption is that visitors in the future will be asked to “pay what you can.” This will still allow for free admission to those who believe they cannot afford to pay, but also encourage many visitors to value their experience in SLOMA by donating to it.
• With additional spaces and staff, more substantial earned income will be generated from admissions, venue rentals, retail sales, including an integrated coffee bar, artmaking and other public programs, There will also be additional revenues from memberships, donations and sponsorships and the seeking of additional operating funds from government sources.
• The capital campaign for the new SLOMA will include raising an additional $1 million in endowment principal. Ideally, the capital fundraising campaign will include a larger endowment amount.

Capital/Project Costs
At this stage of planning, the capital and project cost estimates total about $54.8 million.

This includes construction and demolition costs, other capital costs and contingencies and escalations to the construction bid period in the first quarter of 2028, with assumed construction completion by 2030.

In addition to demolition and construction costs, the capital costs include an allowance for furniture, fixtures and equipment, as well as professional and other fees. There is also a preliminary allowance of $2 million for development of a sculpture park, taking site development uncertainties into account, and the acquisition of works of art for the park.

Project costs also include an assumed endowment growth of $1 million.

Attendance, Operating Revenue and Expense Projections

On-site attendance levels are estimated to be a stabilized 75,000 annual visitors.

Attendance figures will be higher in the opening two years, especially in Year 1 when the curiosity factor and media coverage lead to a projected attendance of 90,000 annual visitors compared to the current 45,000.

The total annual operating budget, in 2024 dollars, is estimated to grow from close to $1 million to the $2.1 to $2.2 million range, which is similar to those of comparable art museums. Earned income levels are projected to stabilize in the range of 32% of

San Luis Obispo Museum of Art
New Building Facilities and Operations Focused Feasibility Study: Final Report Making the World a Better Place Through Culture Lord Cultural Resources 4 operating revenues, which is also within the common range, compared to the current level of about 11%.

After taking operating expenses into account the gap between earned income plus base level figures for private and government support and the operating expenses of the future SLOMA, the additional amount required to break even on operations from private and government sources is projected to be in the range of $424,000 to $490,000 per year.

The projections reflect the reality that a substantially expanded and enhanced SLOMA will lead to better service to the community and region and result in increased attendance and earned income, but higher staffing and other operating costs will exceed the revenues that may be generated.

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GRANT AGREEMENT

SAN LUIS OBISPO MUSEUM OF ART
This agreement dated February___2026 is between SAN LUIS OBISPO MUSEUM OF ART, a California non-profit corporation (“SLOMA”) and CITY OF SAN LUIS OBISPO, a California Municipal Corporation and Charter City (“CITY”) (the “Grant Agreement”) with reference to the following:

WHEREAS, SLOMA is a long-term lessee of CITY property at 1010 Broad Street located at the corner of Monterey Street and Broad Street, San Luis Obispo, adjacent to Mission Plaza and within CITY’s planned Cultural Arts District, which is the site of the current San Luis Obispo Museum of Art (“1010 Broad Street”); and
WHEREAS, CITY and SLOMA have an existing Community Partnership Agreement for the administration of public art, which notes the mutually beneficial relationship between CITY and SLOMA as a way to continue to advance the visual arts, art education, and foster a strong artistic community in San Luis Obispo; and
WHEREAS, SLOMA issued a written letter request and submitted its Proposal for Supporting the Future San Luis Obispo Museum of Art: A New Home in the Heart of Downtown (“Proposal”) to City Council on October 30, 2025, which describes SLOMA’s plans to expand from 1010 Broad Street by bringing together three existing storefront properties on Higuera Street between Chorro and Garden (the “New Museum”), while also maintaining and featuring connectivity to the creek walk, Mission Plaza, and the Cultural Arts District; and
WHEREAS, SLOMA's proposal indicates that the total project would be implemented in two phases. SLOMA proposal requested that the City Council consider total funding of $2.5 million, of which $500,000 would be used for the first phase to immediately furnish and activate the new museum space, while the remaining $2 million would be used towards the eventual purchase of the property at a later time; and WHEREAS, at its regularly scheduled meeting on November 4, 2025, the City Council considered the 2024-25 Year End Budget Report, and as per SLOMA’s request, also directed staff to assign funds in the amount of $500,000 as part of the 2nd Quarter 2025-26 Budget Report and further directed staff to prepare this Grant Agreement to be used for Phase 1 of the project, while also directing staff to “include terms that would commit the City to providing funding of some kind toward Phase 2 of the project, subject to further analysis and discussion at a public meeting and with funding allocations determined during future budget actions.” (Council Minutes for November 4, 2025, approved November 18, 2025); and
WHEREAS, CITY’s financial support towards implementation of the New Museum being pursued by SLOMA is intended to provide both necessary financial support as well as serve to motivate and catalyze other funders and donors in furtherance of SLOMA’s overall capital campaign and fundraising goals for the New Museum; and WHEREAS, the New Museum will ultimately be available to both residents of the City and visitors alike, thereby serving public purposes in furtherance of CITY’s goals for facilitating

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both arts and cultural amenities, as well as contributing to a thriving and prosperous downtown area through economic development activities, and WHEREAS, SLOMA’s plans to expand from 1010 Broad Street and implement the New Museum are consistent with CITY’s Land Use Element of the General Plan (2014), Downtown Concept Plan (2017), Economic Development Strategic Plan (2023), and CITY’s Major City Goal for “Cultural Vitality, Economic Resilience and Fiscal Sustainability” adopted as part of the 2025-27 Financial Plan.

NOW, THEREFORE, CITY and SLOMA for and in consideration of the mutual benefits, promises and agreements set forth herein, do agree as follows:

1. Phase I Implementation
On or before the date that is three (3) years following the execution of this Grant Agreement, SLOMA shall complete construction of Phase 1 of the New Museum. SLOMA’s failure to comply with this term may result in amendment in accordance with Paragraph 8, provided substantial progress or extenuating circumstances can be documented, or termination of this Grant Agreement as provided herein.

2. Grant Amount and Allowed Expenses
City agrees to pay SLOMA a one-time only grant on a reimbursement basis, as provided in Section 4, in an amount up to $500,000 (“Grant Funds”), to be used towards implementation and activation of the New Museum, subject to the conditions set forth herein. The Grant Funds shall only be used for costs directly related to Phase 1 of the New Museum as specified below.

CITY’s Grant Funds may only be used for “soft” costs, or expense items that are not considered direct construction costs, such as the purchase of furniture and other items supporting the operations and maintenance of the New Museum (“Eligible Costs”). If there is a dispute about whether a project cost is an Eligible Cost, CITY shall have final determination of whether the cost is an Eligible Cost.

SLOMA acknowledges and represents that the Grant Funds will not be used for construction of any element of the New Museum, including any architectural, engineering, direct construction, demolition, or alteration costs defined as contractor expenses for labor, project management, installation, materials, equipment, utilities and other direct construction costs.

3. Conditions Precedent to Funding
SLOMA shall satisfy the following required conditions prior to any disbursement of Grant Funds by CITY. With respect to any requested reimbursement, SLOMA shall:
a. Maintain its 501(c)(3) non-profit status.
b. Shall secure all other grant funds, donations, pledges, or financing necessary to complete Phase 1 of the New Museum, inclusive of the amount of Grant Funds provided by the CITY pursuant to this Grant Agreement, and shall first utilize (or provide for first utilizing) all other grant funds, donations, or financing then available (collectively “Other Available Funding”) for the New Museum prior to any request for reimbursement from CITY. However, SLOMA’s initial reimbursement request for Grant Funds may be made prior to complete exhaustion of Other Available

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Funding, as necessary, to ensure continued availability of funding to complete the New Museum.
c. Secure all necessary project entitlements and building permit(s) for Phase 1 of the New Museum that may be applicable as further described in Paragraph 6, below. d. Submit for CITY review and approval a fundraising plan demonstrating project feasibility, including cost estimating and project schedule. e. Submit for CITY review and approval forecasted budgets for the first three years of operating the New Museum demonstrating a fiscally sustainable business model. f. Identify additional public benefits associated with the New Museum that can reasonably be facilitated and implemented, such as public art in the creek walk area or similar.

4. Reimbursement Requests
Upon satisfaction of the conditions identified in Section 3, reimbursement payment requests for Eligible Costs shall be submitted to CITY’s Deputy City Manager. Reimbursement payment requests shall include supporting documentation including itemized invoices or other evidence that supports the request. Reimbursement payment requests may be submitted on a bi-monthly (twice per month) basis and will be reviewed and approved for reimbursement by the CITY in a timely manner, and CITY will make best efforts to process and pay reimbursement requests within fifteen (15) business days from the date of such payment request, provided that sufficient documentation supporting the reimbursement request is provided to CITY. Sufficiency of payment documentation shall be in the sole but reasonable discretion of the CITY and CITY reserves the right to request and receive additional reasonable documentation to support SLOMA’s reimbursement requests and as may be appropriate to aid in City’s determination of whether the requested reimbursement payment is for an Eligible Cost.

5. Use of Grant Funds at Other Sites
If SLOMA determines that implementation of Phase 1 of the New Museum at the specified site is impractical or inadvisable for any reason, then SLOMA may not use the Grant Funds for any other purpose without prior written approval of the City Council.

6. Permits
SLOMA shall apply for and obtain all necessary building and other related permits and project entitlements necessary to implement the New Museum in conformance with local, state, and federal laws. This Grant Agreement does not authorize the construction or tenant improvement of the New Museum or otherwise alter, impact, or interfere with the exercise of CITY’s independent regulatory and land use authority.

7. Funding Source Recognition
SLOMA will ensure recognition of the role of CITY in providing funding through this Grant Agreement. CITY shall be identified as a funding source in all applicable publications, press releases, social media outreach and similar fundraising promotions.

8. Amendments and Phase 2 Funding
CITY and SLOMA may amend this Grant Agreement at any time provided that such amendments make specific reference to this Grant Agreement, and are executed in writing, signed by a duly authorized representative of each organization, and approved by the City Council. Such amendments will not invalidate this Grant Agreement, nor relieve or release

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either CITY or SLOMA from its obligations under this Grant Agreement, except as expressly provided in writing in any such duly executed amendments.

It is expressly anticipated that this Grant Agreement may be amended to provide additional funding support towards Phase 2 of the New Museum expansion project, as that Phase is defined and described in SLOMA’s Proposal. To be considered for future Phase 2 funding, at a minimum SLOMA shall:
a. Satisfactorily complete and be in good standing with CITY for all items listed under Paragraphs 3 and 9, herein.
b. Submit a detailed Phase 2 project description and supportive justification for the funding request.
c. Submit sufficient due diligence items suitable for CITY’s review to ensure any expenditure of public funds is appropriately supported and documented.

CITY shall have no obligation whatsoever to enact and approve an amendment to provide additional funding of any amount, which is subject to the actual availability of funds at the time a request is made and is within the then-seated City Council’s sole discretion.

9. Quarterly Reports and Financial Assurance
SLOMA shall provide quarterly reports on both Phase 1 of the New Museum and the ongoing operations and activation of 1010 Broad Street, including the use of CITY Grant Funds, if any, during the reporting period. These reports shall be due at the end of the first month after the end of the calendar quarter (i.e. January, April, July, and September) and submitted to the Deputy City Manager. The quarterly reports should include percentage of completion, other available funding on hand or then receivable, and work anticipated to be completed in the following quarter. CITY reserves the right to request and receive copies of invoices, account statements, or audits of SLOMA’s financial records pertinent to implementation of Phase 1 of the New Museum and in CITY’s sole discretion, to withhold reimbursement payments until satisfactory reports and supporting documentation are received.

10. Assignability
SLOMA shall not assign or transfer any interest in this Grant Agreement without the prior written consent of the City Council.

11. Conflict of Interest
No member of the CITY’s governing body and no other public official of such locality, who exercises any functions or responsibilities in connection with the planning or carrying out of the New Museum project, will have any personal financial interest, direct or indirect, in this Grant Agreement. SLOMA will also take any and all steps and enact appropriate policies to assure compliance.

12. Severability
If any provision of this Grant Agreement is held invalid, the remainder of the Grant Agreement will not be affected thereby and all other parts of this Grant Agreement will nevertheless remain in full force and effect.

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13. Entire Agreement
This Grant Agreement constitutes the entire agreement between CITY and SLOMA for the use of funds received under this Grant Agreement and shall supersede all prior communications and proposals, whether electronic, oral, or written between CITY and SLOMA with respect to this Grant Agreement.

14.No Agency or Employment
SLOMA is solely responsible for all activities supported by this Grant Agreement. Nothing in this Grant Agreement creates a partnership, agency, joint venture, employment, or any other type of relationship between SLOMA and CITY. SLOMA shall not represent itself as an agent of CITY for any purpose and has no authority to bind CITY in any manner whatsoever. SLOMA and all of its agents, representatives, or participants in any manner in the performance of its obligations and duties hereunder, shall be employees, independent contractors, or volunteers solely of SLOMA. They shall not for any purpose be considered employees or agents of CITY.

15.Indemnification
SLOMA agrees, to the fullest extent permitted by law, to defend, indemnify, and hold harmless CITY its officers, directors, affiliates, employees, and agents (“City Indemnitees”), from and against any and all claims, liabilities, losses and expenses (including reasonable attorney’s fees) directly, indirectly, wholly or partially arising from or in connection with any act or omission of SLOMA, its employees or agents, in applying for, accepting, or use of the Grant Funds, or in carrying out the New Museum project as set forth. In the event the City Indemnitees are made a party to any action, lawsuit, or other adversarial proceeding arising from SLOMA’s performance under this Grant Agreement, SLOMA shall provide a defense to the City Indemnitees or at the City’s option, reimburse the City Indemnitees their costs of defense, including reasonable legal fees, incurred in defense of such claims.

16.Termination
The City Manager may, within reasonable discretion, initiate termination of this Grant Agreement in the event of any material breach of the terms of this Grant Agreement by SLOMA. Material breach includes breach of Sections 1-7, 9 and 15 of this Grant Agreement, but does not include minor delays in reporting or other delays in obligations set forth herein caused through no fault of SLOMA, as well as administrative or clerical errors made in good faith. Upon the City Manager’s written notice of breach, SLOMA shall have forty-five (45) calendar days to cure any such breach (the “Notice of Breach”). Should SLOMA fail to cure or provide documentation of substantial progress towards curing such breach within forty-five (45) calendar days of the date of the Notice of Breach, the City Manager shall provide written notice of termination of this Grant Agreement (the “Notice of Termination”). Said termination shall be effective thirty (30) calendar days after the City Manager mails the Notice of Termination to SLOMA. Any remaining Grant Funds in excess of then unpaid Eligible Costs, as defined in Section 2, actually incurred as of the date of notice of termination shall revert to CITY upon the effective date of termination.

17.Notices
For purposes of notice under this Grant Agreement, all notices shall be considered effective upon being sent by certified mail to the following addresses:

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CITY:

City of San Luis Obispo
990 Palm Street
San Luis Obispo, CA 93401
Attn: City Manager
SLOMA:

San Luis Obispo Museum of Art
1010 Broad Street
San Luis Obispo, CA 93401
Attn: Executive Director

CITY OF SAN LUIS OBISPO, A MUNICIPAL CORPORATION
By:

Whitney McDonald
City Manager

SAN LUIS OBISPO MUSEUM OF ART, A CALIFORNIA NON-PROFIT

CORPORATION
By: ___________
Leann Standish
Executive Director
APPROVED AS TO FORM:

By:

Christine Dietrick
City Attorney