City Council
AGENDA
Tuesday, September 15, 2026, 5:30 p.m.
Council Chambers, 990 Palm Street, San Luis Obispo
**The City Council Agenda has been amended to add a Closed Session item (Item 9a) after the Regular meeting items have been heard.**
Public Comment for both Closed Session items will be heard at 5:00 PM.
Council Meetings are now held in a hybrid format, which means participation is allowed both inperson and virtually through teleconference. For a complete list of ways to view/participate in meetings, review the Participation Guide. In person attendees of City Council or Advisory Body meetings are eligible to receive one hour of complementary parking; restrictions apply, visit Parking for Public Meetings for more details.
Agendas and Staff Reports: Agendas and staff reports for regular meetings are commonly posted one week in advance of the meeting date.
Staff Agenda correspondence regarding questions from Council received after the staff reports are published will be posted by 1:00 PM on the day of the meeting.
Contact the City Clerk's Office with questions by emailing [email protected].
ONLINE PARTICIPATION:
Zoom: To join the Regular Meeting, click this link https://slocity.zoomgov.com/j/1653297173 on any computer or mobile device.
Telephone: Call 1-669-444-9171 and enter the Meeting’s ID # 165 329 7173 to join by telephone audio only.
Public Comment during the meeting:
In person public comment:
Fill out a speaker card and give it to the City Clerk.
Online public comment:
Use the Zoom “raise your hand” button or telephone call in press *9 on your telephone (*6 to unmute/mute) when the comment period on your item of interest begins. You will be notified when you’ve been unmuted and it’s your turn to speak.:
Public Comment prior to the meeting (must be received 3 hours before the start of the meeting.
Correspondence received before the meeting will not be read aloud during the meeting):
Email - Submit to [email protected]. In the subject line, please include the date of the meeting and the item number (if applicable).
Mail - Address letters to the City Clerk's Office at 990 Palm Street, San Luis Obispo, California, 93401.
Voicemail - Call (805) 781-7164 and leave a voicemail. Please state and spell your name, the agenda item number, and leave your comment.
*All correspondence will be publicly archived and distributed to councilmembers; however, submissions received after the deadline may not be processed until the following day.
Pages
1. CLOSED SESSION (5:00 PM START)
Please click the link below to join the webinar to provide Public Comment on Closed Session only.
https://slocity.zoomgov.com/j/1659956136
To join by telephone dial 1-669-254-5252 Webinar ID: 165 995 6136
1.a CALL TO ORDER
Mayor Erica A. Stewart will call the Closed Session of the San Luis Obispo City Council to order at 5:00 p.m. in the Council Hearing Room of City Hall, 990 Palm Street, San Luis Obispo.
1.b PUBLIC COMMENT FOR CLOSED SESSION ITEMS ONLY
Public Comment will be heard for Item 1c and Item 9a as listed on the Closed Session agenda.
1.c CONFERENCE WITH LABOR NEGOTIATORS
Pursuant to Government Code § 54957.6
Agency Negotiators:
Nickole Domini, Christine Dietrick, Whitney McDonald, Brian Amoroso, Rick Scott
Represented Employee
Organizations:
San Luis Obispo City Employees’ Association (SLOCEA)
San Luis Obispo Police Officers’ Association (POA)
San Luis Obispo Police Staff Officers’ Association
(SLOPSOA)
International Association of Firefighters, Local 3523
Unrepresented
Employees:
Unrepresented Management Employees
Unrepresented Confidential Employees
1.d ADJOURNMENT
City Council will continue the Closed Session to the end of the Regular Meeting. The City Council will hold a Regular Meeting on September 15, 2026 at 5:30 p.m. in the Council Chambers at City Hall, 990 Palm Street, San Luis Obispo.
2. CALL TO ORDER
Mayor Erica A. Stewart will call the Regular Meeting of the San Luis Obispo City Council to order.
3. PLEDGE OF ALLEGIANCE
Council Member Michelle Shoresman will lead the Council in the Pledge of Allegiance.
4. PRESENTATIONS
4.a HISPANIC HERITAGE-LATINE MONTH
Mayor Erica A. Stewart will present a Proclamation declaring September 15 - October 15, 2026 Hispanic-Latine Heritage Month.
4.b NATIONAL ALCOHOL AND DRUG ADDICTION RECOVERY MONTH
Mayor Erica A. Stewart will present a Proclamation declaring September 2026 National Alcohol and Drug Addiction Recovery Month.
4.c CITY MANAGER REPORT
Receive a brief report from City Manager Whitney McDonald.
5. PUBLIC COMMENT PERIOD FOR ITEMS NOT ON THE AGENDA
The Council welcomes your input. State law does not allow the Council to discuss or take action on issues not on the agenda, except that members of the Council or staff may briefly respond to statements made or questions posed by persons exercising their public testimony rights (Gov. Code sec. 54954.2). Staff may be asked to follow up on such items.
6. CONSENT AGENDA
Matters appearing on the Consent Calendar are expected to be noncontroversial and will be acted upon at one time. A member of the public may request the Council to pull an item for discussion. Pulled items shall be heard at the close of the Consent Agenda unless a majority of the Council chooses another time. The public may comment on any and all items on the Consent Agenda within the three-minute time limit.
Recommendation:
To approve Consent Calendar Items 6a to 6h.
6.a WAIVE READING IN FULL OF ALL RESOLUTIONS AND
ORDINANCES
Recommendation:
Waive reading of all resolutions and ordinances as appropriate.
6.b MINUTES REVIEW - SEPTEMBER 1, 2026 COUNCIL MINUTES 11 Recommendation:
Approve the minutes of the City Council meeting held on September 1, 2026.
6.c BIENNIAL REVIEW AND AMENDMENTS TO THE CITY’S CONFLICT
OF INTEREST CODE
17 Recommendation:
Adopt a draft Resolution entitled “A Resolution of the City Council of the City of San Luis Obispo, California, amending the City’s Conflict of Interest Code”, rescinding and replacing Resolution No. 11516 (2024 Series).
6.d APPROVE A HISTORIC PROPERTY PRESERVATION CONTRACT
(MILLS ACT) FOR THE LANDMARK HANS NISSEN AND LENA
PETERSON HANSEN HOUSE LOCATED AT 1110 BUCHON STREET
43 Recommendation:
Adopt a draft Resolution entitled “Resolution of the City Council of the City of San Luis Obispo, California, approving a Historic Property Preservation Agreement between the City and the Owner of the Hans Nissen and Lena Peterson Hansen House at 1110 Buchon Street (Application No. HIST-0119-2026),” as recommended by the Cultural Heritage Committee.
6.e APPROVE A HISTORIC PROPERTY PRESERVATION CONTRACT
(MILLS ACT) FOR THE LANDMARK GEORGE AND CORDELIA
MCCABE HOUSE LOCATED AT 571 PISMO STREET
61 Recommendation:
Adopt a draft Resolution entitled “A Resolution of the City Council of the City of San Luis Obispo, California, approving a Historic Property Preservation Agreement between the City and the Owners of the George and Cordelia McCabe House at 571 Pismo Street (Application No. HIST-0313-2026),” as recommended by the Cultural Heritage Committee.
6.f COMMUNITY PARTNERSHIP AGREEMENTS WITH (1) THE
ENVIRONMENTAL CENTER OF SAN LUIS OBISPO AND (2) THE
SAN LUIS OBISPO CLIMATE COALITION
81 Recommendation:
1. Approve a Community Partnership Agreement with The
Environmental Center of San Luis Obispo; and
2. Approve a Community Partnership Agreement with The San Luis Obispo Climate Coalition; and
3. Authorize the City Manager to sign the Community Partnership Agreements in a final form satisfactory to the City Attorney.
6.g APPROPRIATE STORM PREPARATION AND RESPONSE FUNDING 119 Recommendation:
1. Appropriate $1,100,000 in Capital Projects Reserve Funding to the Storm Response and Recovery Project Account to support storm preparation emergency projects; and,
2. Authorize the Finance Director to appropriate state grant funds for storm preparedness infrastructure upgrade and repair projects, pending confirmation of grant award and grant amount (expected to be $1,340,000); and,
3. Authorize the City Manager to execute state grant agreements in a final form approved by the City Engineer and City Attorney; and,
4. Authorize the City Manager to transfer a total aggregate amount not to exceed $500,000 from Completed Projects Funding to the Storm Response and Recovery and/or Storm Drains project accounts to support any unforeseen cost increases or state grant matching requirements associated with the delivery of storm preparedness capital projects; and,
5. Adopt a draft Resolution (Attachment A) entitled, “A Resolution of the City Council of the City of San Luis Obispo, California, Authorizing Appropriation of $1,100,000 from the Capital Projects Reserve Fund, as well as State Water Resources Control Board Grant Funding, to support Storm Preparedness Infrastructure Upgrades and Repairs.
6.h SUPPORT FOR THE CITY OF PASO ROBLES SUBMISSION OF A
BID ON THE SAN LUIS OBISPO COUNTY AMBULANCE SERVICES
CONTRACT
127
Recommendation:
Adopt a draft Resolution (Attachment A) entitled “A Resolution of the City Council of San Luis Obispo, California, Supporting the City of Paso Robles in Submitting a Bid for the County of San Luis Obispo’s Ambulance Services Contract.”
7. PUBLIC HEARING AND BUSINESS ITEMS
7.a TAX EQUITY AND FISCAL RESPONSIBILITY ACT (TEFRA) HEARING
REGARDING THE ISSUANCE OF A TAX-EXEMPT DEBT
OBLIGATION TO FINANCE CONSTRUCTION OF 60 AFFORDABLE
HOUSING UNITS FOR SENDERO APARTMENTS LOCATED AT 165
CESSNA COURT (30 MINUTES)
141
Recommendation:
1. Conduct a public hearing under the Tax Equity and Fiscal Responsibility Act (“TEFRA”) of 1982 and pursuant to the requirements of the Internal Revenue Code of 1986 (the “Code”); and
2. Adopt a draft Resolution entitled, “A Resolution of the City Council of the City of San Luis Obispo, California, approving the issuance of Revenue Bonds by the California Municipal Finance Authority in an aggregate principal amount not to exceed $15,000,000 for the purpose of financing or refinancing the acquisition, construction, improvement, and equipping of Sendero Apartments and certain other matters relating thereto” allowing the issuance of Bonds by the California Municipal Finance Authority (“CMFA”) for the benefit of C&C Development Co., LLC (the “Sponsor”), on behalf of Avila Ranch, L.P., a California limited partnership, or an ownership entity to be created by the Sponsor or an affiliate of the Sponsor (such limited partnership or other ownership entity, the “Borrower”), to provide for the financing of Sendero Apartments (the “Project”); such adoption is solely for the purposes of satisfying the requirements of TEFRA, the Code, and California Government Code Section 6500, et seq.
7.b AMENDMENT TO COUNCIL’S POLICIES AND PROCEDURES
CHAPTER 5 – COUNCIL/STAFF RELATIONSHIP AND CHAPTER 7 –
CONFIDENTIALITY (30 MINUTES)
151
Recommendation:
Adopt a draft Resolution approving amendments to the Council Policies and Procedures Chapter 5 Council/Staff Relationship and Chapter 7 – Confidentiality.
8. LIAISON REPORTS AND COMMUNICATIONS
Not to exceed 15 minutes. Council Members report on subcommittee assignments, listed below, and other City activities. At this time, any Council Member or the City Manager may ask a question for clarification, make an announcement, or report briefly on their activities. In addition, subject to Council Policies and Procedures, they may provide a reference to staff or other resources for factual information, request staff to report back to the Council at a subsequent meeting concerning any matter or take action to direct staff to place a matter of business on a future agenda. (Gov. Code Sec. 54954.2) Mayor
Stewart
Vice Mayor
Francis
Council Member
Boswell
Council Member
Marx
Council Member
Shoresman
SLO Council of
Governments
Airport Land Use Community
Action
Partnership
Air Pollution
Control District
CP Campus
Planning
Committee
Regional
Economic Action
Coalition
Nacimiento Water
Project
SLO Climate
Coalition
County Water
Resources
Advisory
Committee
Downtown
Association
Board
CA Men’s
Colony Advisory
Committee
Zone 9 Advisory
Committee
Local Agency
Formation
Commission
Homeless
Services
Oversight
Committee
Performing Arts
Center
Commission
Integrated Waste
Management
Authority
SLO Regional
Transit Authority
Visit SLO
County Advisory
Committee
Central Coast
Clean Energy
9. CLOSED SESSION (CONTINUED)
9.a CONFERENCE WITH LEGAL COUNSEL—EXISTING LITIGATION
Pursuant to paragraph (1) of subdivision (d) of California Government Code Section 54956.9.
Name of case: Ray Hais v. City of San Luis Obispo, California Public Employment Relations Board, UPC No. LA-CE-1905-M
10. ADJOURNMENT
The next Regular Meeting of the City Council will be held on October 6, 2026 at 5:30 p.m. in the Council Chambers at City Hall, 990 Palm Street, San Luis Obispo.
LISTENING ASSISTIVE DEVICES for the hearing impaired - see the Clerk.
The City of San Luis Obispo wishes to make all of its public meetings accessible to the public. Upon request, this agenda will be made available in appropriate alternative formats to persons with disabilities. Any person with a disability who requires a modification or accommodation in order to participate in a meeting should direct such request to the City Clerk’s Office at (805) 781-7114 at least 48 hours before the meeting, if possible. Telecommunications Device for the Deaf (805) 781-7410.
City Council meetings are televised live on Charter Channel 20 and the City's YouTube Channel: www.youtube.com/CityofSanLuisObispo. Agenda related writings or documents provided to the City Council are available for public inspection in the City Clerk’s Office located at 990 Palm Street, San Luis Obispo, California during normal business hours, and on the City’s website https://www.slocity.org/government/mayor-and-city-council/agendas-andminutes. Persons with questions concerning any agenda item may call the City Clerk’s Office at (805) 781-7114.
1 Council Minutes
September 1, 2026, 5:30 p.m.
Council Chambers, 990 Palm Street, San Luis Obispo
Council Members
Present:
Council Member Mike Boswell, Council Member Jan Marx,
Council Member Michelle Shoresman, Vice Mayor Emily
Francis, Mayor Erica A. Stewart
City Staff Present: City Manager Whitney McDonald, Assistant City Attorney Markie Kersten and Teresa Purrington, City Clerk
_____________________________________________________________________
1. CLOSED SESSION (4:00 PM START)
1.a CALL TO ORDER
Mayor Erica A. Stewart will call the Closed Session of the San Luis Obispo City Council to order at 4:45 p.m. in the Council Hearing Room of City Hall, 990 Palm Street, San Luis Obispo.
1.b PUBLIC COMMENT FOR CLOSED SESSION ITEMS ONLY
Public Comments:
Steve Schmidt
Hollie West
---End of Public Comment---
1.c CONFERENCE WITH LEGAL COUNSEL - ANTICIPATED LITIGATION ACTION: City Manager Whitney McDonald indicated that the Council met in Closed Session regarding Anticipated Litigation. There was no reportable action taken.
1.d CONFERENCE WITH REAL PROPERTY NEGOTIATORS
ACTION: Assistant City Attorney Markie Kersten indicated that the Council met in Closed Session regarding Real Property Negotiations as noted on the agenda. The Council provided price and terms for negotiations.
2 1.e CONFERENCE WITH REAL PROPERTY NEGOTIATORS
ACTION: Assistant City Attorney Markie Kersten indicated that the Council met in Closed Session regarding Real Property Negotiations as noted on the agenda. The Council provided price and terms for negotiations.
1.f ADJOURNMENT
Closed Session was adjourned at 5:30 PM.
2. CALL TO ORDER
A Regular Meeting of the San Luis Obispo City Council was called to order on September 1, 2026 at 5:37 p.m. in the Council Chambers, 990 Palm Street, San Luis Obispo, by Mayor Stewart.
3. PLEDGE OF ALLEGIANCE
Council Member Marx led the Council in the Pledge of Allegiance.
4. PRESENTATIONS
4.a HUNGER ACTION MONTH PROCLAMATION
Mayor Erica A. Stewart presented a Proclamation to Andrea Keisler, on behalf of the SLO Food Bank declaring September 2026 as Hunger Action Month.
4.b 30TH ANNIVERSARY OF THE SAN LUIS OBISPO GREENBELT
Mayor Erica A. Stewart presented a Proclamation to Robert Hill on behalf of the City of San Luis Obispo for the 30th Anniversary of the San Luis Obispo Greenbelt.
4.c 30TH ANNIVERSARY OF THE PERFORMING ARTS CENTER
Mayor Erica A. Stewart presented a Proclamation to Ryan Gruss on behalf of the Performing Arts Center for the 30th Anniversary of the Performing Arts Center.
4.d CITY MANAGER REPORT
City Manager Whitney McDonald provided a report on upcoming projects.
3 5. PUBLIC COMMENT PERIOD FOR ITEMS NOT ON THE AGENDA
Public Comment:
Garrett Philbin
Thomas Burt
Shawn Harris
--End of Public Comment--
6. CONSENT AGENDA
Public Comment:
None
--End of Public Comment--
Motion By Vice Mayor Francis
Second By Council Member Marx
To approve Consent Calendar Items 6a to 6g.
Ayes (5): Council Member Boswell, Council Member Marx, Council Member Shoresman, Vice Mayor Francis, and Mayor Stewart
CARRIED (5 to 0)
6.a WAIVE READING IN FULL OF ALL RESOLUTIONS AND ORDINANCES Waive reading of all resolutions and ordinances as appropriate.
6.b MINUTES REVIEW - AUGUST 18, 2026 COUNCIL MINUTES
Approve the minutes of the City Council meeting held on August 18, 2026.
6.c FINAL ADOPTION OF AN ORDINANCE CLARIFYING APPLICABILITY
OF MHPRSO TO LONG-TERM LEASES AND REQUIRING NOTICES BY
OWNERS
Adopt Ordinance No. 1759 (2026 Series) entitled, “An Ordinance of the City Council of the City of San Luis Obispo, California, Amending Chapter
5.44, Mobile Home Park Rent Stabilization Ordinance, to Apply Restrictions on Space Rent Increase Upon Transfer (5.44.060(C)) to Certain Existing Long-Term Leases and to Require Park
Owners/Operators to Provide Notice to Tenants (5.44.143).”
6.d POLICE DEPARTMENT 2025 ASSEMBLY BILL 481 (MILITARY
EQUIPMENT USE) ANNUAL REPORT
4 1. Adopt Resolution No. 11679 (2026 Series) entitled “A Resolution of the City Council of the City of San Luis Obispo, California, accepting the 2025 Military Equipment Use (AB 481) Annual Report and Renewing Ordinance No. 1712 with Findings of Ongoing Compliance with City Policy and State Law”
2. Receive and file the 2025 Assembly Bill 481 Annual Report Update, and the San Luis Obispo Police Department Military Use Policy 707.
6.e SECOND READING OF AN ORDINANCE TO AMEND TITLE 13,
CHAPTER 13.12 OF THE MUNICIPAL CODE TO ESTABLISH
UNDERGROUND UTILITY DISTRICT NO. 17 WITHIN THE PRADO
ROAD INTERCHANGE PROJECT LIMITS
Adopt Ordinance No. 1758 (2026 Series) entitled, “An Ordinance of the City Council of the City of San Luis Obispo, California, amending Section
13.12.040 of the San Luis Obispo Municipal Code to Establish a New Underground Utility District 17.”
6.f REQUEST FOR PROPOSALS FOR CONSULTING SERVICES TO
CONDUCT A CITYWIDE USER FEE STUDY AND PREPARE A CENTRAL
SERVICE COST ALLOCATION PLAN AND LABOR RATES
Authorize staff to issue a Request for Proposals (RFP) for Consulting Services to Conduct a Citywide User Fee Study and Prepare a Central Service Cost Allocation Plan and Labor Rates, and delegate award authority to the City Manager.
6.g APPROVAL OF SLO TRANSIT’S 2026 TRANSIT ASSET MANAGEMENT
PLAN AND CONTINGENCY FLEET PLAN
1. Adopt Resolution No. 11680 (2026 Series) entitled, “A Resolution of the City Council of the City of San Luis Obispo, California, approving San Luis Obispo (SLO) Transit’s 2026 Transit Asset Management Plan and Contingency Fleet Plan, and authorizing the City Manager to approve future administrative updates to the plans”
2. Authorize SLO Transit’s Accountable Executive, the City Manager, to sign the final version of the 2026 Transit Asset Management Plan; and
3. Authorize SLO Transit’s Accountable Executive, the City Manager, to sign the final version of the Contingency Fleet Plan; and
5 4. Authorize the City Manager to approve amendments and future administrative updates to the Plans as necessary to maintain compliance with applicable Federal Transit Administration requirements and to address changing operational conditions.
7. PUBLIC HEARING AND BUSINESS ITEMS
7.a POLICE DEPARTMENT 2025 ANNUAL REPORT (60 MINUTES)
ACTION: By consensus the Council directed staff to receive and file the 2025 Police Department Annual Report.
8. LIAISON REPORTS AND COMMUNICATIONS
Mayor Stewart
Attended the following events:
August 20th CA Men’s Colony Advisory Committee Meeting August 20th Latina Mixer at Hola Slo
August 20th Student Community Liaison Committee meeting August 21st Mayor's Meeting in Grover Beach
August 27th Good Morning SLO
August 29th Luncheon celebrating the 30th Anniversary of the Performing Arts Center
Summer Celebration Employee Recognition
Participated at the Belonging Project Your City Your Voice Event Vice Mayor Francis
Attended the following events:
August 20th Latina Mixer at Hola Slo
August 25th tour at ATSU Medical University
August 26th Annual Grand Jury Meeting.
Participated in August 20th Investment Oversight Committee Meeting
6 Council Member Boswell
Attended the following meetings:
Attended the Cal Poly CIE ribbon cutting.
August 20th Student Community Liaison Committee meeting August 27th ATSU tour
Summer Celebration Employee Recognition
Participated in the August 20th Community Action Partnership meeting Council Member Marx
Attended the following events:
August 25th ATSU Medical University
August 29th Luncheon celebrating the 30th Anniversary of the Performing Arts Center
Council Member Shoresman
Attended the following events:
August 20th Latina Mixer at Hola Slo
August 21st CIE Demo Day
August 25th tour at ATSU Medical University
August 27th Good Morning SLO
Summer Celebration Employee Recognition
9. ADJOURNMENT
The meeting was adjourned at 7:45 p.m. The next Regular City Council Meeting is scheduled for September 15, 2026 at 5:30 p.m. in the Council Chambers at City Hall, 990 Palm Street, San Luis Obispo.
APPROVED BY COUNCIL: XX/XX/202X
Item 6c
Department: Administration
Cost Center: 1021
For Agenda of: 9/15/2026
Placement: Consent
Estimated Time: N/A
FROM: Greg Hermann, Deputy City Manager
Prepared By: Sara Armas, Deputy City Clerk
SUBJECT: BIENNIAL REVIEW AND AMENDMENTS TO THE CITY’S CONFLICT OF
INTEREST CODE
RECOMMENDATION
Adopt a draft Resolution entitled “A Resolution of the City Council of the City of San Luis Obispo, California, amending the City’s Conflict of Interest Code”, rescinding and replacing Resolution No. 11516 (2024 Series).
POLICY CONTEXT
The Political Reform Act (Government Code Section 81000 et seq.) requires every local government agency to review its Conflict of Interest Code biennially by October 1st.
DISCUSSION
The Political Reform Act (PRA) of 1974 contains a general prohibition that no public official or employee at any level of state or local government shall make, participate in making, or in any way attempt to use their official position to influence a governmental decision in which they know or have reason to know they have a financial interest.
A Conflict of Interest Code requires certain employees, who are most likely to be involved in government decision-making and where potential conflicts may be present, to file a Statement of Conflict of Interest when they assume the position, on an annual basis for the duration of the position held, and when they leave the position. The purpose of this form is to inform the employee and the public of potential conflicts of interest and situations where disqualifications are mandated. The PRA requires that local agencies adopt a formal Conflict of Interest Code, review its Code biennially by October 1st in even numbered years, and make amendments if needed.
The required review of the City’s Conflict of Interest Code has now been completed, determining that an amendment is required to update the gift value limitation to match the currently set valuation of the PRA, to include the organizational changes within the Public Works and Utilities Departments, to include new designated filer positions, to revise
Item 6c
certain titles of existing positions, and to delete titles of positions that have been removed.
Legislative drafts of the proposed City of San Luis Obispo 2026 Conflict of Interest update (Attachment B) and listed of Designated Positions (Attachment C) detail the proposed amendments.
Upon approval, they will then be incorporated in full as Exhibit A to the proposed Resolution (Attachment A). Should further amendments be necessary, the City will have 90 days to complete and adopt a final code.
Components of the Conflict of Interest Code
There are three main components of a Conflict of Interest Code:
Incorporation by reference the terms of 2 California Code of Regulations Section 18730 (Terms of the Code)
List of designated positions (the positions that are required to file a Statement of Economic Interest, “SEI”, Form 700)
Disclosure categories (the specific interests to be reported in a SEI, Form 700) Terms of the Code
The Fair Political Practices Commission (FPPC) advises that agencies are required to incorporate the provisions of California Code of Regulation §18730 by reference, along with appendices providing disclosure categories and listing of designated positions, to constitute the formation and promulgation of a Conflict of Interest Code. Regulation §18730 outlines the references to statutes and regulations that govern designated positions, disclosure categories, time of filing, contents of, period covered, manner of reporting, how interests are to be reported, definition of terms, disqualification as well as prohibition on receipt of honoraria, gifts, loans, and travel payments. The incorporation of Regulation §18730 provides the legal basis for the code to be a document that has force and effect. By incorporating the California Code of Regulation in the City’s Conflict of Interest Code, any amendment to the California Code adopted by the FPPC will automatically apply to the City Code.
Designated Positions
Following Council action on June 2, 2026, directing a review of the City’s Conflict of Interest Code, the City Clerk and all City Department Directors reviewed the current list of Designated Positions against the proposed updated list in legislative draft format (Attachment B) for their respective departments. The Designated Filer List of positions was examined for inclusion of new positions, possible title changes to existing positions, job responsibility modifications, removal of titles for positions that may have been removed (since the 2024 Code Adoption) and to reflect the organizational changes within the Public Works and Utilities Departments. Multiple changes were found in several departments and have therefore been modified accordingly on the list.
Item 6c
Proposed Disclosure Categories
The FPPC advises that local codes should enumerate positions that “make or participate in the making” of government decisions, acting within the authority of their position, votes on a matter, obligates, or commits the agency to any course of action which may foreseeably have a material financial effect on any financial interest. Additionally, it further defines those employees “participate in governmental decisions” when, acting within the authority of their position and without significant and substantive or intervening review, the official, negotiates, advises, or makes recommendations to the decision-maker regarding governmental decision.
The FPPC has provided advice related to the development of disclosure categories and the need for “striking an appropriate balance between heading of potential conflicts of interest and an individual’s right to privacy.” The Commission notes that the most common problem in local codes is the requirement that employees disclose financial interests that are not related to the employee’s duties and area of authority. The review of the Categories has determined that only two positions be modified to remove a disclosure category not related to the employee’s duties and area of authority. The Deputy Director of Mobility and Business Services and the Mobility Business Services Manager positions will now only have disclosure categories 2 and 3 and no longer have disclosure category
4. Other Considerations
Positions Statutorily Required to File Conflict of Interest Disclosure Council Members and appointed officials (including the City Manager, City Attorney and members of the Planning Commission) are not designated under this Conflict of Interest Code because they are statutorily required to file conflict disclosures under Government Code §87200 (also known as “87200 filers”).
The City’s Conflict of Interest Code supplements those statutory requirements as to employees and members of City Advisory Bodies who are not 87200 filers. It is important to note that the list of filers includes members of San Luis Obispo Parking Authority and the San Luis Obispo Public Financing Authority. Because the City Council also serves as both authorities, members of the Council are reminded to include these positions on their Assuming Office, Annual, and Leaving Office SEIs.
New Positions
With respect to newly created and temporary positions, the department director shall determine if a newly created position will make or participate in making governmental decisions on behalf of the City and if so assign a disclosure category conforming to the position’s range of duties. All such determinations are public records and shall be made in writing and provided to the City Clerk and the Human Resources Department. Such written determination shall include a description of the newly created position’s duties and based upon that description, a statement of the extent of disclosure requirement given the range of duties. All such determinations are public records and shall be retained for public inspection in the same manner and location as this Conflict of Interest Code
Item 6c
(Government Code §81008). The City Clerk’s Office shall promptly enter the actual position title of the newly created position into its electronic SEI (Form 700) record management system and ensure that the name of any individual holding the newly created position is entered under that position title in the record management system.
Additionally, within 90 days of the creation of a newly created position that must file statements of economic interest, the City shall update this Conflict of Interest code to add the actual position title in its list of designated positions (Government Code §87306).
The required review of the City’s Conflict of Interest Code has now been completed, determining that an amendment is required to update the gift value limitation to match the currently set valuation of the PRA ($630), to include new designated filer positions, to revise certain titles of existing positions, to delete titles of positions that have been removed, and to create/amend the Public Works and Utilities department categories in alignment with the organizational restructuring. Attachment B contains text of the proposed update for the Conflict Interest Code, and Attachment C provides a legislative draft of the proposed “Designated Filers” listing. Upon approval the listing will then be incorporated in full as Exhibit A to the proposed Resolution (Attachment A).
Previous Council or Advisory Body Action
The City’s current Conflict of Interest Code was adopted by City Council on September 3, 2024, by Resolution No. 11516 (2024 Series). As required by the PRA, the code reviewing body (City Council) directed the biennial review of the City’s Conflict of Interest Code be conducted at their June 2, 2026 Regular Meeting.
Public Engagement
Members of the public will have the opportunity to provide public comment before or at the meeting of September 15, 2026.
CONCURRENCE
All City Department Directors have provided input on the revised list of designated filers which, accordingly, have been incorporated into the proposed revised list of designated positions and the City Attorney has reviewed and approved the code as presented.
ENVIRONMENTAL REVIEW
The California Environmental Quality Act (CEQA) does not apply to the recommended action in this report, because the action does not constitute a “Project” under CEQA Guidelines Section 15378.
FISCAL IMPACT
Budgeted: No Budget Year: 2026-27
Funding Identified: No
Item 6c
Fiscal Analysis:
Funding
Sources
Total Budget
Available
Current
Funding
Request
Remaining
Balance
Annual
Ongoing
Cost
General Fund $ $ $ $
State
Federal
Fees
Other:
Total $N/A $ $ $
There is no fiscal impact for the update of the biennial Conflict of Interest Code as administration of the process is considered in the City Clerk’s annual budget.
ALTERNATIVES
The City Council may direct amendments be made to the proposed update to the City’s Conflict of Interest Code. If amendments are necessary, the amended code must be provided to Council for approval within 90 days.
ATTACHMENTS
A - Draft Resolution amending the City’s Conflict of Interest Code B - 2026 Conflict of Interest Code (Legislative Draft)
C - 2026 List of Designated Positions (Legislative Draft)
R ______
RESOLUTION NO. _____ (2026 SERIES)
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS OBISPO, CALIFORNIA, AMENDING THE CITY’S CONFLICT OF
INTEREST CODE
WHEREAS, the Political Reform Act of 1974, “PRA” (Government Code Section 81000 et seq.) requires local government agencies to promulgate and adopt conflict of interest codes; and
WHEREAS, Resolution No. 11516 (2024 Series), adopted on September 3, 2024, amended the City’s Conflict of Interest Code, updating the Gift limit value and amending the List of Designated Positions and Disclosure Categories (Exhibit A); and WHEREAS, on June 2, 2026, the City Council directed the City Manager to conduct a review of the City’s code as required by the PRA which provides that “codereviewing bodies” (the City Council) shall direct the review of all agency codes under their jurisdiction no later than July 1 of each even-numbered year; and WHEREAS, Council Members and appointed officials are not designated employees under this Conflict of Interest Code because they are statutorily required to file conflicts disclosures by Government Code Section 87200 (known as “87200 filers”) and this conflicts code is intended to supplement those statutory requirements as to employees and members of certain City Advisory Bodies who are not 87200 filers.
NOW, THEREFORE, BE IT RESOLVED by the Council of the City of San Luis Obispo that:
SECTION 1. Resolution No. 11516 (2024 Series) is hereby rescinded.
SECTION 2. Pursuant to the Political Reform Act of 1974, Government Code Section 87300 et seq., and Section 18730 of Title 2 of the California Code of Regulations, the City Council adopts the model conflict of interest code promulgated by the Fair Political Practices Commission of the State of California as set forth in Section 18730 of Title 2 of the California Code of Regulations, which model conflict of interest code is incorporated herein by reference and which, together with City’s Disclosure Categories and List of Designated Positions collectively constitutes the City of San Luis Obispo’s Conflict of Interest Code, as set forth in Exhibit A and Appendices 1 and 2 of this Resolution. As the model conflict of interest code set forth in Section 18730 of Title 2 of the California Code of Regulations is amended from time to time by State law, regulatory action of the Fair Political Practices Commission, or judicial determination, the portion of the City’s Conflict of Interest Code comprising the model conflict of interest code shall be deemed automatically amended without further action to incorporate by reference all such amendments to the model conflict of interest code.
Resolution No. _____ (2026 Series) Page 2
R ______
Upon motion of Council Member ___________, seconded by Council Member ___________, and on the following roll call vote:
AYES:
NOES:
ABSENT:
The foregoing resolution was adopted this 1
st day of September 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 Conflict of Interest Code Page 1 CONFLICT OF INTEREST CODE - 2026
CITY OF SAN LUIS OBISPO, CALIFORNIA
CONFLICT OF INTEREST CODE........................................................................................... 2 Section 1. Authority........................................................................................................................ 2 Section 2. Purpose........................................................................................................................... 2 Section 3. Code Reviewing Body ................................................................................................... 2 Section 4. Filing Officer ................................................................................................................. 2 Section 5. Code Administrator........................................................................................................ 2 Section 6. Section 18730 of the California Code of Regulations................................................... 2 Section 7. Disclosure Categories .................................................................................................... 3 Section 8. Designated Positions...................................................................................................... 3 EXHIBIT A Incorporation of California Code of Regulations by Reference ................................ 4 Section 1. Definitions...................................................................................................................... 4 Section 2. Designated Employees................................................................................................... 4 Section 3. Disclosure Categories. ................................................................................................... 4 Section 4. Statements of Economic Interests: Place of Filing. ....................................................... 5 Section 5. Statements of Economic Interests: Time of Filing. ....................................................... 5 Section 5.1. Statements for Persons Who Resign Prior to Assuming Office. ................................ 5 Section 6. Contents of and Period Covered by Statements of Economic Interests......................... 6 Section 7. Manner of Reporting...................................................................................................... 6 Section 8. Prohibition on Receipt of Honoraria.............................................................................. 8 Section 8.1 Prohibition on Receipt of Gifts in Excess of $520 ...................................................... 8 Section 8.2. Loans to Public Officials. ........................................................................................... 8 Section 8.3. Loan Terms. ................................................................................................................ 9 Section 8.4. Personal Loans. ......................................................................................................... 10 Section 9. Disqualification............................................................................................................ 10 Section 9.1. Legally Required Participation. ................................................................................ 11 Section 9.2. Disqualification of State Officers and Employees.................................................... 11 Section 10. Disclosure of Disqualifying Interest. ......................................................................... 11 Section 11. Assistance of the Commission and Counsel. ............................................................. 11 APPENDIX 1 Disclosure Categories
APPENDIX 2 List of Designated Positions
City of San Luis Obispo Conflict of Interest Code Page 2
CONFLICT OF INTEREST CODE
CITY OF SAN LUIS OBISPO, CALIFORNIA
SECTION 1. AUTHORITY
Government Code Section 87300 requires the City of San Luis Obispo to adopt a Conflict of Interest Code.
SECTION 2. PURPOSE
The purpose of the City of San Luis Obispo Conflict of Interest Code is to incorporate by reference the terms of Section 18730 of the California Code of Regulations pertaining to Conflict of Interest Codes.
SECTION 3. CODE REVIEWING BODY
The City Council of the City of San Luis Obispo shall be the Code Reviewing Body for the City of San Luis Obispo Conflict of Interest Code.
SECTION 4. FILING OFFICER
The City Clerk of the City of San Luis Obispo shall be the Filing Officer for the City of San Luis Obispo Conflict of Interest Code. All persons occupying designated positions shall file Statements of Economic Interests with the City Clerk.
The City Clerk shall make statements available for public inspection and reproduction, shall retain all statements pursuant to State Law, and shall perform all other duties and responsibilities of the Filing Officer pursuant to State Law.
SECTION 5. CODE ADMINISTRATOR
The City Manager, or his/her designee, shall be the Code Administrator for the City of San Luis Obispo Conflict of Interest Code.
The Code Administrator may promulgate further rules and regulations, which are not inconsistent with the Code, the Political Reform Act, or any regulation of the Fair Political Practices Commission; to administer the Conflict of Interest Code, including non-substantive alterations to the Code.
Non-substantive alterations shall be limited to the following:
(A) The reclassification or renaming of previously designated positions. (B) The deletion of a position for which the classification has been abolished. (C) Definitional or operational provisions in conformity to a statutory amendment, a regulation of the Fair Political Practices Commission, or a decision of a Court of competent jurisdiction.
SECTION 6. SECTION 18730 OF THE CALIFORNIA CODE OF REGULATIONS Section 18730 of Title 2, Division 6, of the California Code of Regulations, as set forth in Exhibit A, and any amendment to it duly adopted by the Fair Political Practices Commission, along with any Appendices, are hereby incorporated by reference and constitutes the Conflict of Interest Code of the City of San Luis Obispo.
City of San Luis Obispo Conflict of Interest Code Page 3 SECTION 7. DISCLOSURE CATEGORIES
Such persons holding designated positions shall report economic interests as set forth in Appendix 1.
SECTION 8. DESIGNATED POSITIONS
The positions listed in Appendix 2 are Designated Positions. Officers and employees holding those positions are Designated Positions and are deemed to make, or participate in the making of, decisions, which may foreseeably have a material effect on a financial interest.
Consultants may be Designated Positions, as determined by the Code Administrator.
Positions not listed as designated positions: The Members of the City Council, Mayor, City Manager, City Attorney, City Treasurer, Members of the Planning Commission, other public officials who manage public investments, and candidates for any offices at election, are required to file Statements of Economic Interest pursuant to Government Code Section 87200 et seq.
City of San Luis Obispo Conflict of Interest Code Page 4
CONFLICT OF INTEREST CODE
CITY OF SAN LUIS OBISPO, CALIFORNIA
EXHIBIT A
INCORPORATION OF CALIFORNIA
CODE OF REGULATIONS BY REFERENCE
Incorporation by reference of the terms of this regulation along with the designation of employees and the formulation of disclosure categories in the Appendix referred to below constitute the adoption and promulgation of a conflict of interest code within the meaning of Government Code Section 87300 or the amendment of a conflict of interest code within the meaning of Government Code Section 87306 if the terms of this regulation are substituted for terms of a conflict of interest code already in effect. A code so amended or adopted and promulgated requires the reporting of reportable items in a manner substantially equivalent to the requirements of article 2 of chapter 7 of the Political Reform Act, Government Code Sections 81000, et seq. The requirements of a conflict of interest code are in addition to other requirements of the Political Reform Act, such as the general prohibition against conflicts of interest contained in Government Code Section 87100, and to other state or local laws pertaining to conflicts of interest.
The terms of a conflict of interest code amended or adopted and promulgated pursuant to this regulation are as follows:
SECTION 1. DEFINITIONS.
The definitions contained in the Political Reform Act of 1974, regulations of the Fair Political Practices Commission (2 Cal. Code of Regs. Sections 18100, et seq.), and any amendments to the Act or regulations, are incorporated by reference into this conflict of interest code.
SECTION 2. DESIGNATED EMPLOYEES.
The persons holding positions listed in the Appendix are designated employees. It has been determined that these persons make or participate in the making of decisions which may foreseeably have a material effect on economic interests.
SECTION 3. DISCLOSURE CATEGORIES.
This code does not establish any disclosure obligation for those designated employees who are also specified in Government Code Section 87200 if they are designated in this code in that same capacity or if the geographical jurisdiction of this agency is the same as or is wholly included within the jurisdiction in which those persons must report their economic interests pursuant to article 2 of chapter 7 of the Political Reform Act, Government Code Sections 87200, et seq.
In addition, this code does not establish any disclosure obligation for any designated employees who are designated in a conflict of interest code for another agency, if all of the following apply:
(A) The geographical jurisdiction of this agency is the same as or is wholly included within the jurisdiction of the other agency;
City of San Luis Obispo Conflict of Interest Code Page 5 (B) The disclosure assigned in the code of the other agency is the same as that required under article 2 of chapter 7 of the Political Reform Act, Government Code Section 87200; and
(C) The filing officer is the same for both agencies.1
Such persons are covered by this code for disqualification purposes only. With respect to all other designated employees, the disclosure categories set forth in the Appendix specify which kinds of economic interests are reportable. Such a designated employee shall disclose in his or her statement of economic interests those economic interests he or she has which are of the kind described in the disclosure categories to which he or she is assigned in the Appendix. It has been determined that the economic interests set forth in a designated employee’s disclosure categories are the kinds of economic interests which he or she foreseeably can affect materially through the conduct of his or her office.
SECTION 4. STATEMENTS OF ECONOMIC INTERESTS: PLACE OF FILING.
The code reviewing body shall instruct all designated employees within its code to file statements of economic interests with the agency or with the code reviewing body, as provided by the code reviewing body in the agency’s conflict of interest code.2 SECTION 5. STATEMENTS OF ECONOMIC INTERESTS: TIME OF FILING. (A) Initial Statements. All designated employees employed by the agency on the effective date of this code, as originally adopted, promulgated and approved by the code reviewing body, shall file statements within 30 days after the effective date of this code. Thereafter, each person already in a position when it is designated by an amendment to this code shall file an initial statement within 30 days after the effective date of the amendment.
(B) Assuming Office Statements. All persons assuming designated positions after the effective date of this code shall file statements within 30 days after assuming the designated positions, or if subject to State Senate confirmation, 30 days after being nominated or appointed.
(C) Annual Statements. All designated employees shall file statements no later than April 1.
(D) Leaving Office Statements. All persons who leave designated positions shall file statements within 30 days after leaving office.
SECTION 5.1. STATEMENTS FOR PERSONS WHO RESIGN PRIOR TO ASSUMING OFFICE.
Any person who resigns within 12 months of initial appointment, or within 30 days of the date of notice provided by the filing officer to file an assuming office statement, is not deemed to have assumed office or left office, provided he or she did not make or participate in the making of, or use his or her position to influence any decision and did not receive or become entitled to receive any form of payment as a result of his or her appointment. Such persons shall not file either an assuming or leaving office statement.
(A) Any person who resigns a position within 30 days of the date of a notice from the filing officer shall do both of the following:
City of San Luis Obispo Conflict of Interest Code Page 6 (1) File a written resignation with the appointing power; and (2) File a written statement with the filing officer declaring under penalty of perjury that during the period between appointment and resignation he or she did not make, participate in the making, or use the position to influence any decision of the agency or receive, or become entitled to receive, any form of payment by virtue of being appointed to the position.
SECTION 6. CONTENTS OF AND PERIOD COVERED BY STATEMENTS OF ECONOMIC INTERESTS.
(A) Contents of Initial Statements.
Initial statements shall disclose any reportable investments, interests in real property and business positions held on the effective date of the code and income received during the 12 months prior to the effective date of the code. (B) Contents of Assuming Office Statements.
Assuming office statements shall disclose any reportable investments, interests in real property and business positions held on the date of assuming office or, if subject to State Senate confirmation or appointment, on the date of nomination, and income received during the 12 months prior to the date of assuming office or the date of being appointed or nominated, respectively.
(C) Contents of Annual Statements. Annual statements shall disclose any reportable investments, interests in real property, income and business positions held or received during the previous calendar year provided, however, that the period covered by an employee’s first annual statement shall begin on the effective date of the code or the date of assuming office whichever is later, or for a board or commission member subject to Government Code Section 87302.6, the day after the closing date of the most recent statement filed by the member pursuant to 2 Cal.
Code Regs. Section 18754.
(D) Contents of Leaving Office Statements.
Leaving office statements shall disclose reportable investments, interests in real property, income and business positions held or received during the period between the closing date of the last statement filed and the date of leaving office.
SECTION 7. MANNER OF REPORTING.
Statements of economic interests shall be made on forms prescribed by the Fair Political Practices Commission and supplied by the agency, and shall contain the following information:
(A) Investments and Real Property Disclosure.
When an investment or an interest in real property3is required to be reported,4the statement shall contain the following:
1. A statement of the nature of the investment or interest;
2. The name of the business entity in which each investment is held, and a general description of the business activity in which the business entity is engaged;
3. The address or other precise location of the real property;
City of San Luis Obispo Conflict of Interest Code Page 7
4. A statement whether the fair market value of the investment or interest in real property equals or exceeds two thousand dollars ($2,000), exceeds ten thousand dollars ($10,000), exceeds one hundred thousand dollars ($100,000), or exceeds one million dollars ($1,000,000). (B) Personal Income Disclosure. When personal income is required to be reported,5the statement shall contain:
1. The name and address of each source of income aggregating five hundred dollars ($500) or more in value, or fifty dollars ($50) or more in value if the income was a gift, and a general description of the business activity, if any, of each source;
2. A statement whether the aggregate value of income from each source, or in the case of a loan, the highest amount owed to each source, was one thousand dollars ($1,000) or less, greater than one thousand dollars ($1,000), greater than ten thousand dollars ($10,000), or greater than one hundred thousand dollars ($100,000);
3. A description of the consideration, if any, for which the income was received;
4. In the case of a gift, the name, address and business activity of the donor and any intermediary through which the gift was made; a description of the gift; the amount or value of the gift; and the date on which the gift was received;
5. In the case of a loan, the annual interest rate and the security, if any, given for the loan and the term of the loan.
(C) Business Entity Income Disclosure. When income of a business entity, including income of a sole proprietorship, is required to be reported,6the statement shall contain:
1. The name, address, and a general description of the business activity of the business entity;
2. The name of every person from whom the business entity received payments if the filer’s pro rata share of gross receipts from such person was equal to or greater than ten thousand dollars ($10,000). (D) Business Position Disclosure. When business positions are required to be reported, a designated employee shall list the name and address of each business entity in which he or she is a director, officer, partner, trustee, employee, or in which he or she holds any position of management, a description of the business activity in which the business entity is engaged, and the designated employee’s position with the business entity.
(E) Acquisition or Disposal During Reporting Period. In the case of an annual or leaving office statement, if an investment or an interest in real property was partially or wholly acquired or disposed of during the period covered by the statement, the statement shall contain the date of acquisition or disposal.
City of San Luis Obispo Conflict of Interest Code Page 8 SECTION 8. PROHIBITION ON RECEIPT OF HONORARIA.
(A) No member of a state board or commission, and no designated employee of a state or local government agency, shall accept any honorarium from any source, if the member or employee would be required to report the receipt of income or gifts from that source on his or her statement of economic interests. This section shall not apply to any part time member of the governing board of any public institution of higher education, unless the member is also an elected official.
Subdivisions (a), (b), and (c) of Government Code Section 89501 shall apply to the prohibitions in this section.
This section shall not limit or prohibit payments, advances, or reimbursements for travel and related lodging and subsistence authorized by Government Code Section 89506.
SECTION 8.1 PROHIBITION ON RECEIPT OF GIFTS IN EXCESS OF $590630 (A) No member of a state board or commission, and no designated employee of a state or local government agency, shall accept gifts with a total value of more than $590630 in a calendar year from any single source, if the member or employee would be required to report the receipt of income or gifts from that source on his or her statement of economic interests. This section shall not apply to any part time member of the governing board of any public institution of higher education, unless the member is also an elected official.
Subdivisions (e), (f), and (g) of Government Code Section 89503 shall apply to the prohibitions in this section.
The gift limit is adjusted for inflation every odd-numbered year. With the requirement to update this code in even numbered years, the gift limit may change prior to the next code update. See the California Fair Political Practices Commission website, Gifts and Honoraria, for current limits: www.fppc.ca.gov.
SECTION 8.2. LOANS TO PUBLIC OFFICIALS.
(A) No elected officer of a state or local government agency shall, from the date of his or her election to office through the date that he or she vacates office, receive a personal loan from any officer, employee, member, or consultant of the state or local government agency in which the elected officer holds office or over which the elected officer’s agency has direction and control.
(B) No public official who is exempt from the state civil service system pursuant to subdivisions (c), (d), (e), (f), and (g) of Section 4 of Article VII of the Constitution shall, while he or she holds office, receive a personal loan from any officer, employee, member, or consultant of the state or local government agency in which the public official holds office or over which the public official’s agency has direction and control. This subdivision shall not apply to loans made to a public official whose duties are solely secretarial, clerical, or manual. (C) No elected officer of a state or local government agency shall, from the date of his or her election to office through the date that he or she vacates office, receive a personal loan from any person who has a contract with the state or local government agency to which that elected officer has been elected or over which that elected officer’s agency has direction and control. This subdivision shall not apply to loans
City of San Luis Obispo Conflict of Interest Code Page 9 made by banks or other financial institutions or to any indebtedness created as part of a retail installment or credit card transaction, if the loan is made or the indebtedness created in the lender’s regular course of business on terms available to members of the public without regard to the elected officer’s official status. (D) No public official who is exempt from the state civil service system pursuant to subdivisions (c), (d), (e), (f), and (g) of Section 4 of Article VII of the Constitution shall, while he or she holds office, receive a personal loan from any person who has a contract with the state or local government agency to which that elected officer has been elected or over which that elected officer’s agency has direction and control. This subdivision shall not apply to loans made by banks or other financial institutions or to any indebtedness created as part of a retail installment or credit card transaction, if the loan is made or the indebtedness created in the lender’s regular course of business on terms available to members of the public without regard to the elected officer’s official status. This subdivision shall not apply to loans made to a public official whose duties are solely secretarial, clerical, or manual.
(E) This section shall not apply to the following:
1. Loans made to the campaign committee of an elected officer or candidate for elective office.
2. Loans made by a public official’s spouse, child, parent, grandparent, grandchild, brother, sister, parent-in-law, brother-in-law, sister-in-law, nephew, niece, aunt, uncle, or first cousin, or the spouse of any such persons, provided that the person making the loan is not acting as an agent or intermediary for any person not otherwise exempted under this section.
3. Loans from a person which, in the aggregate, do not exceed five hundred dollars ($500) at any given time.
4. Loans made, or offered in writing, before January 1, 1998.
SECTION 8.3. LOAN TERMS.
(A) Except as set forth in subdivision (B), no elected officer of a state or local government agency shall, from the date of his or her election to office through the date he or she vacates office, receive a personal loan of five hundred dollars ($500) or more, except when the loan is in writing and clearly states the terms of the loan, including the parties to the loan agreement, date of the loan, amount of the loan, term of the loan, date or dates when payments shall be due on the loan and the amount of the payments, and the rate of interest paid on the loan. (B) This section shall not apply to the following types of loans:
1. Loans made to the campaign committee of the elected officer.
2. Loans made to the elected officer by his or her spouse, child, parent, grandparent, grandchild, brother, sister, parent-in-law, brother-in-law, sister-in-law, nephew, niece, aunt, uncle, or first cousin, or the spouse of any such person, provided that the person making the loan is not acting as an agent or intermediary for any person not otherwise exempted under this section.
City of San Luis Obispo Conflict of Interest Code Page 10
3. Loans made, or offered in writing, before January 1, 1998. (C) Nothing in this section shall exempt any person from any other provision of Title 9 of the Government Code.
SECTION 8.4. PERSONAL LOANS.
(A) Except as set forth in subdivision (B), a personal loan received by any designated employee shall become a gift to the designated employee for the purposes of this section in the following circumstances:
1. If the loan has a defined date or dates for repayment, when the statute of limitations for filing an action for default has expired.
2. If the loan has no defined date or dates for repayment, when one year has elapsed from the later of the following:
a. The date the loan was made.
b. The date the last payment of one hundred dollars ($100) or more was made on the loan.
c. The date upon which the debtor has made payments on the loan aggregating to less than two hundred fifty dollars ($250) during the previous 12 months.
(B) This section shall not apply to the following types of loans:
1. A loan made to the campaign committee of an elected officer or a candidate for elective office.
2. A loan that would otherwise not be a gift as defined in this title.
3. A loan that would otherwise be a gift as set forth under subdivision (A), but on which the creditor has taken reasonable action to collect the balance due.
4. A loan that would otherwise be a gift as set forth under subdivision (A), but on which the creditor, based on reasonable business considerations, has not undertaken collection action. Except in a criminal action, a creditor who claims that a loan is not a gift on the basis of this paragraph has the burden of proving that the decision for not taking collection action was based on reasonable business considerations.
5. A loan made to a debtor who has filed for bankruptcy and the loan is ultimately discharged in bankruptcy.
(C) Nothing in this section shall exempt any person from any other provisions of Title 9 of the Government Code.
SECTION 9. DISQUALIFICATION.
No designated employee shall make, participate in making, or in any way attempt to use his or her official position to influence the making of any governmental decision which he or she knows or has reason to know will have a reasonably foreseeable material financial effect, distinguishable from its effect on the public generally, on the official or a member of his or her immediate family or on:
City of San Luis Obispo Conflict of Interest Code Page 11 (A) Any business entity in which the designated employee has a direct or indirect investment worth two thousand dollars ($2,000) or more; (B) Any real property in which the designated employee has a direct or indirect interest worth two thousand dollars ($2,000) or more;
(C) Any source of income, other than gifts and other than loans by a commercial lending institution in the regular course of business on terms available to the public without regard to official status, aggregating five hundred dollars ($500) or more in value provided to, received by or promised to the designated employee within 12 months prior to the time when the decision is made;
(D) Any business entity in which the designated employee is a director, officer, partner, trustee, employee, or holds any position of management; or (E) Any donor of, or any intermediary or agent for a donor of, a gift or gifts aggregating $470 or more provided to, received by, or promised to the designated employee within 12 months prior to the time when the decision is made.
SECTION 9.1. LEGALLY REQUIRED PARTICIPATION.
No designated employee shall be prevented from making or participating in the making of any decision to the extent his or her participation is legally required for the decision to be made.
The fact that the vote of a designated employee who is on a voting body is needed to break a tie does not make his or her participation legally required for purposes of this section.
SECTION 9.2. DISQUALIFICATION OF STATE OFFICERS AND EMPLOYEES.
In addition to the general disqualification provisions of Section 9, no state administrative official shall make, participate in making, or use his or her official position to influence any governmental decision directly relating to any contract where the state administrative official knows or has reason to know that any party to the contract is a person with whom the state administrative official, or any member of his or her immediate family has, within 12 months prior to the time when the official action is to be taken:
(A) Engaged in a business transaction or transactions on terms not available to members of the public, regarding any investment or interest in real property; or (B) Engaged in a business transaction or transactions on terms not available to members of the public regarding the rendering of goods or services totaling in value one thousand dollars ($1,000) or more.
SECTION 10. DISCLOSURE OF DISQUALIFYING INTEREST.
When a designated employee determines that he or she should not make a governmental decision because he or she has a disqualifying interest in it, the determination not to act may be accompanied by disclosure of the disqualifying interest.
SECTION 11. ASSISTANCE OF THE COMMISSION AND COUNSEL.
Any designated employee who is unsure of his or her duties under this code may request assistance from the Fair Political Practices Commission pursuant to Government Code Section 83114 and 2 Cal. Code Regs. Sections 18329 and 18329.5 or from the attorney for his or her agency, provided that nothing in this section requires the attorney for the agency to issue any formal or informal opinion.
City of San Luis Obispo Conflict of Interest Code Page 12 Section 12. Violations.
This code has the force and effect of law. Designated employees violating any provision of this code are subject to the administrative, criminal and civil sanctions provided in the Political Reform Act, Government Code Sections 81000 – 91014. In addition, a decision in relation to which a violation of the disqualification provisions of this code or of Government Code Section 87100 or 87450 has occurred may be set aside as void pursuant to Government Code Section 91003.
NOTE: Authority cited: Section 83113, Government Code. Reference Sections 87103(e), 87300, 87302, 89501, 89502 and 89503, Government Code.
1 Designated employees who are required to file statements of economic interests under any other agency’s conflict of interest code, or under article 2 for a different jurisdiction, may expand their statement of economic interests to cover reportable interests in both jurisdictions, and file copies of this expanded statement with both entities in lieu of filing separate and distinct statements, provided that each copy of such expanded statement filed in place of an original statement is signed and verified by the designated employee as if it were an original. See Government Code Section 81004.
2 See Government Code Section 81010 and 2 Ca. Code of Regs. Section 18115 for the duties of filing officers and persons in agencies who make and retain copies of statements and forward the originals to the filing officer.
3 For purposes of disclosure only (not disqualification), an interest in real property does not include the principal residence of the filer or real property located outside of the agency’s jurisdiction (property is considered within agency jurisdiction if it is located within jurisdictional boundaries as well as two miles outside of jurisdictional boundaries). 4 Investments and interests in real property which have a fair market value of less than $2,000 are not investments and interests in real property within the meaning of the Political Reform Act.
However, investments or interests in real property of an individual include those held by the individual’s spouse and dependent children as well as a pro rata share of any investment or interest in real property of any business entity or trust in which the individual, spouse and dependent children own, in the aggregate, a direct, indirect or beneficial interest of 10 percent or greater. 5 A designated employee’s income includes his or her community property interest in the income of his or her spouse but does not include salary or reimbursement for expenses received from a state, local or federal government agency.
6 Income of a business entity is reportable if the direct, indirect or beneficial interest of the filer and the filer’s spouse in the business entity aggregates a 10 percent or greater interest. In addition, the disclosure of persons who are clients or customers of a business entity is required only if the clients or customers are within one of the disclosure categories of the filer.
COI Appendix 1, Disclosure Categories Page 1
CONFLICT OF INTEREST CODE
CITY OF SAN LUIS OBISPO, CALIFORNIA
APPENDIX 1
Disclosure Categories
CATEGORY 1 (Broad Disclosure)
All investments, business positions, and sources of income, including gifts, loans, and travel payments from sources doing business in the jurisdiction of the City.
All interests in real property within the jurisdiction, including property located within a two-mile radius of any property owned or used by the City.
CATEGORY 2 (Disclosure Related to Contracting/Purchasing) All investments, business positions, and income, including gifts, loans, and travel payments, from sources that provide leased facilities, goods, equipment, vehicles, machinery or services, including training or consulting services, of the type associated with the employee’s job assignment.
CATEGORY 3 (Disclosure Related to Licensing/Permitting) All investments, business positions, and income, including gifts, loans, and travel payments, from sources that are subject to the regulatory, permit, or licensing authority of, or have an application for a license or permit pending before the City, and is subject the employee’s area of authority.
CATEGORY 4 (Disclosure Related to Grants/Service Providers) All investments, business positions, and income, including gifts, loans, and travel payments, or income from a nonprofit organization, if the source is of the type to receive grants and other monies from or through the City, and subject to the employee’s area of authority.
CATEGORY 5 (Consultant Disclosure)
Must report investments, business positions, and income from business entities located in, planning to do business in, or doing business with the City of San Luis Obispo subject to the following: No financial interest need be reported unless it is from a source which provides services, supplies, material, machinery, or equipment of the type utilized by or which is subject to the regulatory permit or licensing authority of the department by which the consultant is employed.
Department Directors shall determine, based upon the description of the consultant’s duties outlined in the contract, whether or not a consultant will make or participate in making a governmental decision, and if so the consultant shall file a Statement of Economic Interest.
NEWLY CREATED/TEMPORARY POSITIONS
With respect to newly created and temporary positions, the department director shall determine if a newly created position will make or participate in making governmental decisions on behalf of the City and, if so assign a disclosure category conforming to the position’s range of duties.
Determinations shall be made in writing on an FPPC Form 804 and provided to the City Clerk and the Human Resources Department.
CONFLICT OF INTEREST CODE
CITY OF SAN LUIS OBISPO, CALIFORNIA
APPENDIX 2 LIST OF DESIGNATED POSITIONS
DESIGNATED POSITIONS DISCLOSURE CATEGORY
Committees/Commissions/Authorities:
Members of the Architectural Review Commission 3
Members of the Administrative Review Board 1
Members of the Construction Board of Appeals 1
Members of the Cultural Heritage Committee 3
Members of the Housing Authority Board 1
Members of the Human Relations Committee Commission 4
Members of the Investment Oversight Committee 1
Members of the Parking Authority 1
Members of the Promotional Coordinating Committee 2, 4
Members of the Public Financing Authority 1
Administration Department
Assistant City Manager 1
City Biologist 2
City Clerk 2
Deputy City Manager 1
Diversity Equity &and Inclusion Manager 2, 4
Economic Development &and Tourism Manager 2, 3, 4
Financial Analyst – Infrastructure Financing 3
Information Technology Manager 2, 3, 4
Information Services Supervisor 2
Network Services Supervisor 2
Policy and Project Manager 2, 3, 4
Public Communications Manager 2
Sustainability and Natural Resources Official 2, 3, 4
Sustainability Manager 2, 3, 4
Technology Project Manager 2
Tourism and Community Promotions Manager 2, 4
City Attorney’s Office
Administrative Citation Hearing Officer 1
Assistant City Attorney I/II/III 1
Deputy City Attorney I/II/III 1
DESIGNATED POSITIONS DISCLOSURE CATEGORY
COI: Appendix 2, Designated Positions Page 2
Community Development Department
Building Permit Services Supervisor 3
Chief Building Official 1
Code Enforcement Supervisor 2, 3
Deputy Building Official 2, 3
Deputy Director of Community Development - City Planner 1 Deputy Director of Community Development – Chief Building Official 1 Director of Community Development 1
Housing Policy and Program Manager 2, 4
Housing Coordinator 4
Principal Planner 2, 3
Senior Planner 2, 3
Senior Civil Engineer 2, 3
Special Projects Manager 2,3
Supervising Building Inspector 2, 3
Supervising Civil Engineer 2, 3
Urban Forestry Program Coordinator / City Arborist 2, 3 Community Services
Assistant City Manager 1
Business Services and Administrative Manager 2
Financial Analyst – Infrastructure Financing 3
Finance Department
Budget Manager 2
Deputy Director of Finance/City Controller 2, 3
Accountant/Senior Accountant 2
Financial Analyst/Senior Financial Analyst – Purchasing 2, 3 Financial Analyst/Senior Financial Analyst – Revenue 3
Financial Analyst/Senior Financial Analyst – ERP 3
Payroll Analyst/Senior Payroll Analyst 3
Principal Budget Analyst 2
Fire Department
Deputy Fire Chief 2, 3
Emergency Response Manager 4
Fire Battalion Chief 2, 3
Fire Chief 1
Fire Marshal 2, 3
Fire Inspector II/III 2, 3
Fire Inspector III 2, 3
Human Resources Department
Director of Human Resources 2
Human Resources Manager 2
Human Resources Analyst – Benefits 2
Risk and Benefits Manager 2
Safety Manager 2
DESIGNATED POSITIONS DISCLOSURE CATEGORY
COI: Appendix 2, Designated Positions Page 3
Parks & Recreation Department
Director of Parks and Recreation 1
Recreation Manager (Community Services, Youth Services, and Public Art) 2 Recreation Manager (Aquatics, Facilities, & Golf) 2
Police Department
Chief of Police 1
Deputy Police Chief 2, 3
Neighborhood Outreach Manager 2
Police Deputy Chief 2,3
Police Chief 1
Senior Business/Budget Analyst 2
Budget Analyst/Senior Budget Analyst 2
Public Works & Utilities Department
Director of Public Works and Utilities 1
Public Works Department Branch
Active Transportation Manager 2
Assistant Director of Public Works 1
Construction Engineering Manager 2
Deputy Director of Public Works City Engineer 2, 3
Deputy Director of Public Works Maintenance Operations 2, 3 Deputy Director of Public Works Mobility and Business Services 2, 3, 4 Fleet Maintenance Supervisor 2
Maintenance Superintendent 2
Major City Projects Manager 2
Mobility Services Business Manager 2, 3, 4
Parking Program Manager 2, 3
Parks Maintenance Supervisor 2
Senior Civil Engineer 2, 3
Street Maintenance Supervisor 2
Supervising Civil Engineer 2, 3
Transportation Manager / Transportation Manager Professional Engineer 2, 3 Utilities Department Branch
Assistant Director of Utilities 1
Deputy Director of Utilities Engineering and Planning 2, 3 Deputy Director of Utilities Wastewater 2, 3
Deputy Director of Utilities Water 2, 3
Environmental Programs Manager 2, 3
Laboratory Manager 2
Solid Waste and Recycling Manager 2
Solid Waste and Recycling Coordinator 2, 3
Stormwater Program Manager 2, 3
Supervising Civil Engineer 2, 3
Utilities Business Manager 2
Financial Analyst 2
DESIGNATED POSITIONS DISCLOSURE CATEGORY
COI: Appendix 2, Designated Positions Page 4
Utilities Engineer 2, 3
Utilities Special Projects Manager 2
Wastewater Collection System Chief Operator 2
Wastewater Collection System Supervisor 2
Wastewater Treatment Plant Supervisor 2
Water Distribution System Chief Operator 2
Water Distribution System Supervisor 2
Water Resources Program Manager 2
Water Resource Recovery Facility Chief Operator 2
Water Resource Recovery Facility Chief Maintenance Technician 2 Water Resource Recovery Facility Supervisor 2
Water Treatment Plant Chief Operator 2
Water Treatment Plant Chief Maintenance Technician 2
Water Treatment Plant Supervisor 2
Whale Rock Reservoir Supervisor 2
Other Positions:
Housing Authority Executive Director 1
Consultants 5
Item 6d
Department: Community Development
Cost Center: 4003
For Agenda of: 9/15/2026
Placement: Consent
Estimated Time: N/A
FROM: Timmi Tway, Community Development Director
Prepared By: Eva Wynn, Assistant Planner
SUBJECT: APPROVE A HISTORIC PROPERTY PRESERVATION CONTRACT (MILLS ACT) FOR THE LANDMARK HANS NISSEN AND LENA
PETERSON HANSEN HOUSE LOCATED AT 1110 BUCHON STREET
RECOMMENDATION
Adopt a draft Resolution entitled “Resolution of the City Council of the City of San Luis Obispo, California, approving a Historic Property Preservation Agreement between the City and the Owner of the Hans Nissen and Lena Peterson Hansen House at 1110 Buchon Street (Application No. HIST-0119-2026),” as recommended by the Cultural Heritage Committee.
POLICY CONTEXT
The recommended action on this item is supported by historical preservation policies set out in Section 3 of the Conservation and Open Space Element of the City’s General Plan, particularly Program 3.6.2, regarding participation in financial incentive programs to encourage maintenance and restoration of historic properties, and also with the purpose of encouraging private stewardship of historic buildings through incentives, as provided by Section 14.01.010 (B)(3) of the City’s Historic Preservation Ordinance.
DISCUSSION
The owner of the Hansen House at 1110 Buchon Street submitted an application to enter into a Mills Act historic property preservation contract with the City (see Draft Agreement, Attachment B). The application includes a letter requesting to enter a Mills Act agreement and a list of improvements the owners intend to complete within the life of the contract (Attachment C).
The property is located on the northern side of Buchon Street, approximately 50 feet east of Santa Rosa Street in the Dallidet Addition Tract of the Old Town Historic District. The District was created to encompass one of the oldest residential neighborhoods and most of the development occurred around the turn of the 20th century. The high concentration of 100-year-old or older residences establishes the District’s predominant architectural and visual character. The District has many examples of High Victorian architecture,
Item 6d
including several variations, such as Queen Anne, Italianate, Stick and Gothic Revival influences, along with more modest structures with simpler styles including Neo-classic Row House, Folk Victorian, and Craftsman Bungalow. Most of the houses in this district were designed and constructed by the homes’ first occupants or by local builders and were influenced by architectural pattern books of the time period (Historic Preservation Program Guidelines § 5.2.1).
The residence at 1110
Buchon Street is currently
on the City’s Inventory of
Historic Resources as a
Landmark (added in 2025
by City Council Resolution
No. 11601). The Hansen
House, built 1921, is a
uniquely well-preserved
example of the California
Bungalow style in the
California Bungalow style,
featuring a full-width front
gable and asymmetric
porch.
The Mills Act Program
It is the City’s policy that significant historic resources be rehabilitated and preserved (COSE § 3.3.1). The Mills Act Program is a property tax reduction program for protection of cultural resources that encourages their maintenance and restoration (COSE § 3.6.2 of the General Plan Conservation and Open Space Element). Participation in the program is limited to Landmark resources; resources that are of the greatest importance at the local, regional, state, or national level in terms of age, architectural or historical significance, rarity, or association with important persons or events in the City’s past, that meet one or more of the criteria outlined in Section 14.01.060 and that retain a high degree of integrity (HPO § 14.01.050 (A)(1)). Currently, there are 68 properties participating in the program, with the last request (for the Meredith House at 1421 Garden Street) approved by the Council on April 21, 2026. The City and owners of a Landmark enter into a historical property contract under which the owners agree to restore, maintain, and protect the property in accordance with historical preservation standards. In turn, owners may qualify for property tax relief, potentially realizing tax savings of between 40% and 60% per year. A Mills Act Contract has a minimum term of ten years, and is extended annually for an additional year, unless, after the initial term, either the City or the owner, by written notice, decides not to renew the contract.
As described in the applicant’s request letter (Attachment C), the owner proposes to make the following improvements and/or repairs during the term of this contract but in no case later than ten (10) years from the contract date:
Figure 1 – The Hansen House
Item 6d
continued preservation of the interior structure and systems and exterior fabric restoration of the porch ceiling wood and paint
restoration of sun-damaged wood and paint on the façade drainage repair
new guttering
repair of cracking chimney
Previous Council or Advisory Body Action
On July 27, 2026, the Cultural Heritage Committee reviewed this application for participation in the Mills Act Historic Preservation Program, along with the terms of the draft preservation contract, and, by a vote of 7-0, recommended that the City Council approve the historic property preservation contract. Prior to this request, the property was reviewed and approved for Landmark designation by the City Council’s decision on October 21, 2025.
Public Engagement
Public notice of this hearing has been provided to owners and occupants of property near the subject site, and published in a widely circulated local newspaper, and hearing agendas for this meeting have been posted at City Hall, consistent with adopted notification procedures. Public notice was also previously provided for the Cultural Heritage Committee meeting of July 27, 2026.
ENVIRONMENTAL REVIEW
Entering into a “Mills Act Contract” with the owners of historical property is not subject to the provisions of the California Environmental Quality Act (CEQA) because it is not a project as defined in CEQA Guidelines § 15378 (Definitions – Project). Implementation of the Mills Act is a government fiscal activity which does not involve commitment to any specific project which may result in a potentially significant physical impact on the environment (CEQA Guidelines § 15378 (b)(4)).
FISCAL IMPACT
Budgeted: No Budget Year: 2026-27
Funding Identified: No
Fiscal Analysis:
Funding
Sources
Total Budget
Available
Current
Funding
Request
Remaining
Balance
Annual
Ongoing
Cost
General Fund $0 $ $ $
State
Item 6d
Federal
Fees
Other:
Total $ $0 $ $0
After the Mills Act contract is recorded, the County Assessor values the property by an income capitalization method, following guidelines provided by the State Board of Equalization. Because of the timing and the method of valuing the restricted property, it is difficult to accurately estimate the tax savings and resulting fiscal impacts to the City under a particular historical property contract. However, a recent summary provided by the County Assessor indicated that the total reduction in annual tax revenue to the City amounted to approximately $67,000 for a total of 65 properties on Mills Act contracts at the time, or about $1,000 per property. Currently, there are 68 properties in the City participating in the program.
ALTERNATIVES
1. Decline to enter into a Mills Act Historical Property Contract with the property owner. Denying the request to enter into a Mills Act contract would make unavailable an effective incentive for the historic property’s long-term preservation.
The Mills Act Program is a financial assistance program identified in the General Plan for encouraging maintenance and restoration of historic properties.
2. Continue consideration of the request to a future date for additional information or discussion. If the Council wishes to continue consideration of this item to a future date, staff requests that the Council detail the specific information that should be provided for discussion at the future meeting.
ATTACHMENTS
A - Draft Resolution approving a Mills Act Contract for 1110 Buchon Street B - Draft Historic Property Preservation Agreement (HIST-0119-2026) C - Applicant Request Letter – 1110 Buchon Street
R ______
RESOLUTION NO. XXXX (2026 SERIES)
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS
OBISPO, CALIFORNIA, APPROVING A HISTORIC PROPERTY
PRESERVATION AGREEMENT BETWEEN THE CITY AND THE
OWNERS OF THE HANS NISSEN AND LENA PETERSON HANSEN
HOUSE AT 1110 BUCHON STREET (APPLICATION NO. HIST-0119- 2026)
WHEREAS, the City Council of the City of San Luis Obispo is authorized by California Government Code Section 50280 et seq. (known as “the Mills Act”) to enter into contracts with the owners of qualified historical properties to provide for appropriate use, maintenance, and rehabilitation such that these historic properties retain their historic characteristics; and
WHEREAS, the City Council has adopted Resolution No. 9136 (2000 Series), establishing the Mills Act Historic Property Tax Incentive Program as an ongoing historic preservation program to promote the preservation, maintenance, and rehabilitation of historic resources through financial incentives; and
WHEREAS, the City Council of the City of San Luis Obispo designated 1110 Buchon Street, described as the Hansen House, as a Landmark of the City of San Luis Obispo on October 21, 2025, by adoption of Resolution No. 11601, pursuant to the policies in the City’s Historic Preservation Program Guidelines; WHEREAS, James Fitzgerald Kelly (Owner) is the owner of that certain qualified real property, together with associated structures and improvement thereon, located on Assessor’s Parcel Number 003-545-016, located at 1110 Buchon Street, in the City of San Luis Obispo, California, also described as The Hansen House; and WHEREAS, the City and Owner, for their mutual benefit, now desire to enter into an agreement to limit the use of the property to prevent inappropriate alterations and to ensure that character-defining features are preserved and maintained in an exemplary manner, and repairs and improvements are completed as necessary to carry out the purposes of California Government Code, Chapter 1, Part 5 of Division 1 of Title 5, Article 12, Sec. 50280 et seq., and to qualify for an assessment of valuation pursuant to Article
1.9, Sec. 439 et. seq. of the Revenue and Taxation Code; and WHEREAS, the Cultural Heritage Committee of the City of San Luis Obispo conducted a public hearing in the Council Chamber of City Hall, 990 Palm Street, San Luis Obispo, California, on July 27, 2026, for the purpose of reviewing the proposed historic property preservation agreement, and recommended that the City enter into the agreement; and
WHEREAS, the City Council conducted a public meeting in the Council Chamber of City Hall, 990 Palm Street, San Luis Obispo, California, on September 15, 2026, for
Resolution No. _____ (2026 Series) Page 2
R ______
the purpose of considering approval of the historic property preservation agreement, and has duly considered all evidence, including the record of the Cultural Heritage Committee hearing and recommendation and the evaluation and recommendation by staff; and WHEREAS, notices of said public hearings and meetings were made at the time and in the manner required by law.
NOW, THEREFORE, BE IT RESOLVED by the Council of the City of San Luis Obispo as follows:
SECTION 1. Findings. Based upon all the evidence, the City Council makes the following findings:
a) Conservation and Open Space Element Program 3.6.2 states that the City will participate in financial assistance programs such as property tax reduction programs that encourage maintenance and restoration of historic properties. b) The Hansen House, located at 1110 Buchon Street, has been recognized as a historic asset in the community by its designation as a Landmark by the City Council on October 21, 2025 (Resolution No. 11601). As such, maintaining the structure will meet the City’s goals for historic preservation listed in policies
3.3.1 through 3.3.5 of the Conservation and Open Space Element.
SECTION 2. Environmental Determination. The City Council has determined that the above actions do not constitute a project, as defined in California Environmental Quality Act Guidelines § 15378, and are not subject to environmental review.
SECTION 3. Historic Property Preservation Agreement Approved. The City Council hereby approves the “Historic Property Preservation Agreement between the City of San Luis Obispo and the Owner of the Historic Property Located at 1110 Buchon Street,” to be entered into by the City and the property owner, James Fitzgerald Kelly, attached hereto as “Exhibit A.”
SECTION 4. Community Development Director Authorized to Sign Agreement for City. The City Council hereby authorizes the Community Development Director to execute said agreement on behalf of the Council of the City of San Luis Obispo.
SECTION 5. Recordation of the Agreement. No later than twenty (20) days after the parties enter into said agreement, the City Clerk shall cause the agreement to be recorded in the Office of the County Recorder of the County of San Luis Obispo.
Upon motion of Council Member ___________, seconded by Council Member ___________, and on the following roll call vote:
AYES:
NOES:
ABSENT:
Resolution No. _____ (2026 Series) Page 3
R ______
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
Attachment B – Draft Preservation Contract
HISTORIC PROPERTY PRESERVATION AGREEMENT BETWEEN
THE CITY OF SAN LUIS OBISPO AND THE OWNER OF THE HISTORIC PROPERTY LOCATED AT 1110 BUCHON STREET, IN THE CITY AND THE COUNTY OF SAN LUIS OBISPO, STATE OF CALIFORNIA.
THIS AGREEMENT is made and entered into this _________day of __________, 2026, by and between the City of San Luis Obispo, a municipal corporation (hereinafter referred to as the “City”), and James Fitzgerald Kelly (hereinafter referred to as “Owner”), and collectively referred to as the “parties.”
WHEREAS, Owner is the owners of that certain real property commonly known as 1110 Buchon Street (APN 003-545-016), and legally described as shown in the attached “Exhibit B” (“Owner’s Property”); and
WHEREAS, Owner has agreed to enter into a Historical Property Contract with the City for the preservation, maintenance, restoration, or rehabilitation of Owner’s Property, a historic resource within the City;
NOW, THEREFORE, in consideration of the above recitals and in further consideration of the mutual benefits, promises, and agreements set out herein, the parties agree as follows:
Section 1. Description of Preservation Measures. The Owner, their heirs, or assigns hereby agree to undertake and complete, at their expense, the preservation, maintenance, and improvements measures described in “Exhibit A” attached hereto.
Section 2. Effective Date and Term of Agreement. This agreement shall be effective and commence upon recordation and shall remain in effect for an initial term of ten (10) years thereafter. Each year upon the anniversary of the agreement’s effective date, such initial term will automatically be extended as provided in California Government Code Section 50280 through 50290 and in Section 3, below.
Section 3. Agreement Renewal and Non-renewal.
a. Each year on the anniversary of the effective date of this agreement (hereinafter referred to as “annual renewal date”), a year shall automatically be added to the initial term of this agreement unless written notice of nonrenewal is served as provided herein.
b. If the Owner or the City desires in any year not to renew the agreement, the Owner or the City shall serve written notice of nonrenewal of the agreement on the other party. Unless such notice is served by the Owner to the City at least ninety (90) days prior to the annual renewal date, or served by the City to the Owner at least sixty (60) days prior to the annual renewal date, one (1) year shall automatically be added to the term of the agreement as provided herein.
Historic Preservation Agreement
1110 Buchon Street
c. The Owner may make a written protest of the notice. The City may, at any time prior to the annual renewal date, withdraw its notice to the Owner of nonrenewal. d. If either the City or the Owner serves notice to the other party of nonrenewal in any year, the agreement shall remain in effect for the balance of the term then remaining.
Section 4. Standards and Conditions. During the term of this agreement, the historic property shall be subject to the following conditions:
a. Owner agrees to preserve, maintain, and, where necessary, restore or rehabilitate the building and its character-defining features, including: the building’s general architectural form, style, materials, design, scale, proportions, organization of windows, doors, and other openings; interior architectural elements that are integral to the building’s historic character or significance; exterior materials, coatings, textures, details, mass, roof line, porch, and other aspects of the appearance of the building’s exterior, as described in Exhibit A, to the satisfaction of the Community Development Director or their designee.
b. All building changes shall comply with applicable City specific plans, City regulations and guidelines, and conform to the rules and regulations of the Office of Historic Preservation of the California Department of Parks and Recreation, namely the U.S. Secretary of the Interior’s Standards for Rehabilitation and Standards and Guidelines for Historic Preservation Projects. Interior remodeling shall retain original, character-defining architectural features and architectural ornamentation to the greatest extent possible.
c. The Community Development Director shall be notified by the Owner of changes to character-defining exterior features prior to their execution, such as major landscaping projects and tree removals, exterior door or window replacement, repainting, remodeling, or other exterior alterations requiring a building permit.
The Owner agrees to secure all necessary City approvals and/or permits prior to changing the building’s use or commencing construction work. d. Owner agrees that property tax savings resulting from this agreement shall be used for property maintenance and improvements as described in Exhibit A. e. The following are prohibited: demolition or partial demolition of the historic building; exterior alterations or additions not in keeping with the standards listed above; dilapidated, deteriorating, or unrepaired structures such as fences, roofs, doors, walls, windows; outdoor storage of junk, trash, debris, appliances, or furniture visible from a public way; or any device, decoration, structure, or vegetation which is unsightly due to lack of maintenance or because such feature adversely affects, or is visually incompatible with, the property’s recognized historic character, significance, and design as determined by the Community Development Director.
Historic Preservation Agreement
1110 Buchon Street
f. Owner shall allow reasonable periodic examination, by prior appointment, of the interior and exterior of the historic property by representatives of the County Assessor, the State Department of Parks and Recreation, the State Board of Equalization, and the City as may be necessary to determine the owners’ compliance with the terms and provisions of this agreement.
Section 5. Furnishing of Information. The Owner hereby agrees to furnish any and all information requested by the City which may be necessary or advisable to determine compliance with the terms and provisions of this agreement.
Section 6. Cancellation.
a. The City, following a duly-noticed public hearing by the City Council as set forth in Government Code Section 50285, may cancel this agreement if it determines that the Owner has breached any of the conditions of this agreement or has allowed the property to deteriorate to the point that it no longer meets the standards for a qualified historic property; or if the City determines that the Owner has failed to preserve, maintain, or rehabilitate the property in the manner specified in Section 4 of this agreement. If a contract is cancelled because of failure of the Owner to preserve, maintain, and rehabilitate the historic property as specified above, the Owner shall pay a cancellation fee to the State Controller as set forth in Government Code Section 50286, which states that the fee shall be 12 ½% of the full value of the property at the time of cancellation without regard to any restriction imposed with this agreement.
b. If the historic building is acquired by eminent domain and the City Council determines that the acquisition frustrates the purpose of the agreement, the agreement shall be cancelled and no fee imposed, as specified in Government Code Section 50288.
Section 7. Enforcement of Agreement.
a. In lieu of and/or in addition to any provisions to cancel the agreement as referenced herein, the City may specifically enforce, or enjoin the breach of, the terms of the agreement. In the event of a default, under the provisions to cancel the agreement by the Owner, the City shall give written notice of violation to the Owner by registered or certified mail addressed to the address stated in this agreement. If such a violation is not corrected to the reasonable satisfaction of the Community Development Director or designee within thirty (30) days thereafter; or if not corrected within such a reasonable time as may be required to cure the breach or default of said breach; or if the default cannot be cured within thirty (30) days (provided that acts to cure the breach or default may be commenced within thirty (30) days and shall thereafter be diligently pursued to completion by the Owner); then the City may, without further notice, declare a default under the terms of this agreement and may bring any action necessary to specifically enforce the
Historic Preservation Agreement
1110 Buchon Street
obligations of the Owner growing out of the terms of this agreement, apply to any court, state or federal, for injunctive relief against any violation by the owners or apply for such relief as may be appropriate.
b. The City does not waive any claim of default by the Owner if the City does not enforce or cancel this agreement. All other remedies at law or in equity which are not otherwise provided for in this agreement or in the City’s regulations governing historic properties are available to the City to pursue in the event that there is a breach or default under this agreement. No waiver by the City of any breach or default under this agreement shall be deemed to be a waiver of any other subsequent breach thereof or default herein under.
c. By mutual agreement, City and Owner may enter into mediation or binding arbitration to resolve disputes or grievances growing out of this contract.
Section 8. Binding Effect of Agreement. The Owner hereby subjects the historic building located at 1110 Buchon St, San Luis Obispo, California, Assessors Parcel Number 003-545-016, to the covenants, reservations, and restrictions as set forth in this agreement. The City and Owner hereby declare their specific intent that the covenants, reservations, and restrictions as set forth herein shall be deemed covenants running with the land and shall pass to and be binding upon the Owner’s successors and assigns in title or interest to the historic property. Every contract, deed, or other instrument hereinafter executed, covering or conveying the historic property or any portion thereof, shall conclusively be held to have been executed, delivered, and accepted subject to the covenants, reservations, and restrictions expressed in this agreement regardless of whether such covenants, restrictions, and reservations are set forth in such contract, deed, or other instrument.
Section 9. Notice. Any notice required by the terms of this agreement shall be sent to the address of the respective parties as specified below or at other addresses that may be later specified by the parties hereto.
To City: Community Development Director
City of San Luis Obispo
919 Palm Street
San Luis Obispo, CA 93401
To Owner: James Fitzgerald Kelly
1110 Buchon Street
San Luis Obispo, CA, 93401
Section 10. General Provisions.
a. None of the terms, provisions, or conditions of this agreement shall be deemed to create a partnership between the parties hereto and any of their heirs, successors, or assigns, nor shall such terms, provisions, or conditions cause them to be considered joint ventures or members of any joint enterprise.
Historic Preservation Agreement
1110 Buchon Street
b. The Owner agrees to hold the City and its elected and appointed officials, officers, agents, and employees harmless from liability for damage or from claims for damage for personal injuries, including death, and claims for property damage which may arise from the direct or indirect use or activities of the Owner, or from those of their contractor, subcontractor, agent, employee, or other person acting on the Owner’s behalf which relates to the use, operation, maintenance, or improvement of the historic property. The Owner hereby agrees to and shall defend the City and its elected and appointed officials, officers, agents, and employees with respect to any and all claims or actions for damages caused by, or alleged to have been caused by, reason of the Owner’s activities in connection with the historic property, excepting however any such claims or actions which are the result of the sole negligence or willful misconduct of City, its officers, agents, or employees. c. This hold harmless provision applies to all damages and claims for damages suffered, or alleged to have been suffered, and costs of defense incurred, by reason of the operations referred to in this agreement regardless of whether or not the City prepared, supplied, or approved the plans, specifications, or other documents for the historic property.
d. All of the agreements, rights, covenants, reservations, and restrictions contained in this agreement shall be binding upon and shall inure to the benefit of the parties herein, their heirs, successors, legal representatives, assigns, and all persons acquiring any part or portion of the historic property, whether by operation of law or in any manner whatsoever.
e. In the event legal proceedings are brought by any party or parties to enforce or restrain a violation of any of the covenants, reservations, or restrictions contained herein, or to determine the rights and duties of any party hereunder, the prevailing party in such proceeding may recover all reasonable attorney’s fees to be fixed by the court, in addition to court costs and other relief ordered by the court. f. In the event that any of the provisions of this agreement are held to be unenforceable or invalid by any court of competent jurisdiction, or by subsequent preemptive legislation, the validity and enforceability of the remaining provisions, or portions thereof, shall not be affected thereby.
g. This agreement shall be construed and governed in accordance with the laws of the State of California.
Section 11. Amendments. This agreement may be amended, in whole or in part, only by a written recorded instrument executed by the parties hereto.
Section 12. Recordation and Fees. No later than twenty (20) days after the parties enter into this agreement, the City shall cause this agreement to be recorded in the office of the County Recorder of the County of San Luis Obispo. Participation in the program shall be at no cost to the Owner;
Historic Preservation Agreement
1110 Buchon Street
however the City may charge reasonable and necessary fees to recover direct costs of executing, recording, and administering the historical property contracts.
IN WITNESS WHEREOF, the City and Owner have executed this agreement on the day and year written above.
OWNER
____________________________________ ______________________________ James Fitzgerald Kelly Date
CITY OF SAN LUIS OBISPO
____________________________________ ______________________________ Tyler Corey, Deputy Director Date
For: Timothea Tway
Community Development Director
Pursuant to authority conferred under by Resolution No. XXXX ATTEST:
______________________________
Teresa Purrington, City Clerk
APPROVED AS TO FORM:
______________________________
J. Christine Dietrick, City Attorney
ALL SIGNATURES MUST BE NOTARIZED
Historic Preservation Agreement
1110 Buchon Street
EXHIBIT A
MAINTENANCE AND IMPROVEMENT MEASURES FOR THE MEREDITH HOUSE LOCATED AT 1110 BUCHON STREET, SAN LUIS OBISPO, CALIFORNIA Owner shall preserve, maintain, and repair the historic building, including its character-defining architectural features in good condition, to the satisfaction of the Community Development Director or designee, pursuant to a Mills Act Preservation Contract with the City of San Luis Obispo for property located at 1110 Buchon Street. Character-defining features shall include, but are not limited to: roof, eaves, dormers, trim, porches, walls and siding, architectural detailing, doors and windows, window screens and shutters, balustrades and railings, foundations, and surface treatments.
Owner agrees to make the following improvements and/or repairs during the term of this contract but in no case later than ten (10) years from the contract date. All changes or repairs shall be consistent with the City’s Historic Preservation Ordinance and the Secretary of the Interior’s Standards for the Treatment of Historic Properties:
continued preservation of the interior structure and systems and exterior fabric restoration of the porch ceiling wood and paint
restoration of sun-damaged wood and paint on the façade drainage repair
new guttering
repair of cracking chimney
OWNERS
____________________________________ ______________________________ James Fitzpatrick Kelly Date
Historic Preservation Agreement
1110 Buchon Street
EXHIBIT B
Legal Description
For APN/Parcel ID: 003-545-016
To be included in final preservation agreement.
Mills Act Application
Hans Nissen and Lena Peterson Hansen House • 1110 Buchon Street The Hansen House was added to the Master List of historic resources—now Landmarks—in 1926 for its embodiment of the California Bungalow’s chalet-style subtype characterized by the full-width street-facing gable and asymmetric porch, its Southern California ur-form.
The Mills Act (California Code GOV § 12, sec. 50281.b.1) describes the 10-year contract as for the preservation of the qualified historical property and, when necessary, to restore and rehabilitate the property to conform to the rules and regulations of the Office of Historic Preservation of the Department of Parks and Recreation, the United States Secretary of the Interior's Standards for Rehabilitation, and the State Historical Building Code The City of San Luis Obispo traditionally mandates specific actions in the contract for enforcement purposes. In addition, historic properties (the Hansen House turns 105 this year) are susceptible to unanticipated failures of old materials and systems. Extensive repair and restoration have recently been undertaken by the applicant, Fitgerald Kelly. He undertakes • continued preservation of the interior structure and systems and exterior fabric and, in addition, undertakes
• restoration of the porch ceiling wood and paint
• restoration of sun-damaged wood and paint on the façade • drainage repair
• new guttering
• repair of cracking chimney
James Papp, PhD • Historian & Architectural Historian, City & County of San Luis Obispo 964 Chorro St, San Luis Obispo, CA 93401 • 805-470-0983 • [email protected] Submitted 27 February 2027 on behalf of James Fitzgerald Kelly Attachment A - Applicant Request Letter
5e Item 6e
Department: Community Development
Cost Center: 4003
For Agenda of: 9/15/2026
Placement: Consent
Estimated Time: N/A
FROM: Timmi Tway, Community Development Director
Prepared By: Eva Wynn, Assistant Planner
SUBJECT: APPROVE A HISTORIC PROPERTY PRESERVATION CONTRACT (MILLS ACT) FOR THE LANDMARK GEORGE AND CORDELIA MCCABE HOUSE LOCATED AT 571 PISMO STREET
RECOMMENDATION
Adopt a draft Resolution entitled “A Resolution of the City Council of the City of San Luis Obispo, California, approving a Historic Property Preservation Agreement between the City and the Owners of the George and Cordelia McCabe House at 571 Pismo Street (Application No. HIST-0313-2026),” as recommended by the Cultural Heritage Committee.
POLICY CONTEXT
The recommended action on this item is supported by historical preservation policies set out in Section 3 of the Conservation and Open Space Element of the City’s General Plan, particularly Program 3.6.2, regarding participation in financial incentive programs to encourage maintenance and restoration of historic properties, and also with the purpose of encouraging private stewardship of historic buildings through incentives, as provided by Section 14.01.010 (B)(3) of the City’s Historic Preservation Ordinance.
DISCUSSION
The owners of the George and Cordelia McCabe House (McCabe House) at 571 Pismo Street submitted an application on May 21, 2026, to enter into a Mills Act historic property preservation contract with the City (see Draft Agreement, Attachment B). The application includes a letter requesting to enter a Mills Act agreement and a list of improvements the owners intend to complete within the life of the contract (Attachment C).
The property is located on the southern side of Pismo Street within the western section of the Old Town Historic District. The residence sits between two Landmarks, the Patton House at 1407 Nipomo Street and the Biddle House at 559 Pismo Street. The Old Town Historic District was created to encompass one of the oldest residential neighborhoods, in which most of the development occurred around the turn of the 20th century. The high concentration of 100-year-old or older residences establishes the District’s predominant
Item 6e
architectural and visual character. The District has many examples of High Victorian architecture, including several variations, such as Queen Anne, Italianate, Stick and Gothic Revival influences, along with more modest structures with simpler styles including Neo-classic Row House, Folk Victorian, and Craftsman Bungalow. Most of the houses in this district were designed and constructed by the homes’ first occupants or by local builders and were influenced by architectural pattern books of the time period (Historic Preservation Program Guidelines § 5.2.1).
The residence at 571 Pismo Street was
built around 1891 and the property is
currently on the City’s Inventory of
Historic Resources as a Landmark,
added in 2026 by City Council
Resolution No. 11640. The resource
was Landmarked as a unique example
of a late 19th century double-bay-front
Eastlake cottage with a sitting porch
framed by rare, pierced columns. The
building retains character-defining
square window bays, the porch
between bays, and pierced columns
framing the portico. The pieced
columns are rare features that have
potential to yield information important to the architectural history of the City of San Luis Obispo.
The Mills Act Program
It is the City’s policy that significant historic resources be rehabilitated and preserved (COSE § 3.3.1). The Mills Act Program is a property tax reduction program for protection of cultural resources that encourages their maintenance and restoration (COSE § 3.6.2 of the General Plan Conservation and Open Space Element). Participation in the program is limited to Landmark resources; resources that are of the greatest importance at the local, regional, state, or national level in terms of age, architectural or historical significance, rarity, or association with important persons or events in the City’s past, that meet one or more of the criteria outlined in Section 14.01.060 and that retain a high degree of integrity (HPO § 14.01.050 (A)(1)). Currently, there are 68 properties participating in the program, with the last request (for the Meredith House at 1421 Garden Street) approved by the Council on April 21, 2026. The City and owners of a Landmark enter into a historical property contract under which the owners agree to restore, maintain, and protect the property in accordance with historical preservation standards. In turn, owners may qualify for property tax relief, potentially realizing tax savings of between 40% and 60% per year. A Mills Act Contract has a minimum term of ten years, and is extended annually for an additional year, unless, after the initial term, either the City or the owner, by written notice, decides not to renew the contract.
Figure 1 – The McCabe House
Item 6e
As described in the applicant’s request letter (Attachment C), the owners of the McCabe House intend to reconstruct or continue restoration of the following:
reconstruct the descending screen
reconstruct the balusters and fretwork faux corbels
reconstruct the original wood picket fence
replace and reconstruct areas of dry rot
replace defectively applied glazing compound
reconstruct the original exterior sash lugs or ears
install period hardware
repaint
repair dry rot in other areas of the exterior fabric
reconstruct historic interior plaster
insulate the house
Previous Council or Advisory Body Action
On July 27, 2026, the Cultural Heritage Committee reviewed this application for participation in the Mills Act Historic Preservation Program, along with the terms of the draft preservation contract, and, by a vote of 7-0, recommended that the City Council approve the historic property preservation contract. Prior to this request, the property was reviewed and approved for Landmark designation by the City Council’s decision on April 21, 2026.
Public Engagement
Public notice of this hearing has been provided to owners and occupants of property near the subject site, and published in a widely circulated local newspaper, and hearing agendas for this meeting have been posted at City Hall, consistent with adopted notification procedures. Public notice was also previously provided for the Cultural Heritage Committee meeting of July 27, 2026.
ENVIRONMENTAL REVIEW
Entering into a “Mills Act Contract” with the owners of historical property is not subject to the provisions of the California Environmental Quality Act (CEQA) because it is not a project as defined in CEQA Guidelines § 15378 (Definitions – Project). Implementation of the Mills Act is a government fiscal activity which does not involve commitment to any specific project which may result in a potentially significant physical impact on the environment (CEQA Guidelines § 15378 (b)(4)).
FISCAL IMPACT
Budgeted: No Budget Year: 2026-27
Funding Identified: No
Item 6e
Fiscal Analysis:
Funding
Sources
Total Budget
Available
Current
Funding
Request
Remaining
Balance
Annual
Ongoing
Cost
General Fund $0 $ $ $
State
Federal
Fees
Other:
Total $ $0 $ $0
After the Mills Act contract is recorded, the County Assessor values the property by an income capitalization method, following guidelines provided by the State Board of Equalization. Because of the timing and the method of valuing the restricted property, it is difficult to accurately estimate the tax savings and resulting fiscal impacts to the City under a particular historical property contract. However, a recent summary provided by the County Assessor indicated that the total reduction in annual tax revenue to the City amounted to approximately $67,000 for a total of 65 properties on Mills Act contracts at the time, or about $1,000 per property. Currently, there are 68 properties in the City participating in the program.
ALTERNATIVES
1. Decline to enter into a Mills Act Historical Property Contract with the property owner. Denying the request to enter into a Mills Act contract would make unavailable an effective incentive for the historic property’s long-term preservation.
The Mills Act Program is a financial assistance program identified in the General Plan for encouraging maintenance and restoration of historic properties.
2. Continue consideration of the request to a future date for additional information or discussion. If the Council wishes to continue consideration of this item to a future date, staff requests that the Council detail the specific information that should be provided for discussion at the future meeting.
ATTACHMENTS
A - Draft Resolution approving a Mills Act Contract for 571 Pismo Street B - Draft Historic Property Preservation Agreement (HIST-0313-2026) C - Applicant Request Letter – 571 Pismo Street
R ______
RESOLUTION NO. XXXX (2026 SERIES)
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS
OBISPO, CALIFORNIA, APPROVING A HISTORIC PROPERTY
PRESERVATION AGREEMENT BETWEEN THE CITY AND THE
OWNERS OF THE GEORGE AND CORDELIA MCCABE HOUSE AT 571
PISMO STREET (APPLICATION NO. HIST-0313-2026)
WHEREAS, the City Council of the City of San Luis Obispo is authorized by California Government Code Section 50280 et seq. (known as “the Mills Act”) to enter into contracts with the owners of qualified historical properties to provide for appropriate use, maintenance, and rehabilitation such that these historic properties retain their historic characteristics; and
WHEREAS, the City Council has adopted Resolution No. 9136 (2000 Series), establishing the Mills Act Historic Property Tax Incentive Program as an ongoing historic preservation program to promote the preservation, maintenance, and rehabilitation of historic resources through financial incentives; and
WHEREAS, the City Council of the City of San Luis Obispo designated 571 Pismo Street, described as the McCabe House, as a Landmark of the City of San Luis Obispo on April 21, 2026, by adoption of Resolution No. 11640, pursuant to the policies in the City’s Historic Preservation Program Guidelines;
WHEREAS, Bejamin and Saskia Winter (Owners) are the owners of that certain qualified real property, together with associated structures and improvement thereon, located on Assessor’s Parcel Number 003-615-003, located at 571 Pismo Street, in the City of San Luis Obispo, California, also described as The McCabe House; and WHEREAS, the City and Owners, for their mutual benefit, now desire to enter into an agreement to limit the use of the property to prevent inappropriate alterations and to ensure that character-defining features are preserved and maintained in an exemplary manner, and repairs and improvements are completed as necessary to carry out the purposes of California Government Code, Chapter 1, Part 5 of Division 1 of Title 5, Article 12, Sec. 50280 et seq., and to qualify for an assessment of valuation pursuant to Article
1.9, Sec. 439 et. seq. of the Revenue and Taxation Code; and WHEREAS, the Cultural Heritage Committee of the City of San Luis Obispo conducted a public hearing in the Council Chamber of City Hall, 990 Palm Street, San Luis Obispo, California, on July 27, 2026, for the purpose of reviewing the proposed historic property preservation agreement, and recommended that the City enter into the agreement; and
WHEREAS, the City Council conducted a public meeting in the Council Chamber of City Hall, 990 Palm Street, San Luis Obispo, California, on September 15, 2026, for the purpose of considering approval of the historic property preservation agreement, and
Resolution No. _____ (2026 Series) Page 2
R ______
has duly considered all evidence, including the record of the Cultural Heritage Committee hearing and recommendation and the evaluation and recommendation by staff; and WHEREAS, notices of said public hearings and meetings were made at the time and in the manner required by law.
NOW, THEREFORE, BE IT RESOLVED by the Council of the City of San Luis Obispo as follows:
SECTION 1. Findings. Based upon all the evidence, the City Council makes the following findings:
a) Conservation and Open Space Element Program 3.6.2 states that the City will participate in financial assistance programs such as property tax reduction programs that encourage maintenance and restoration of historic properties. b) The McCabe House, located at 571 Pismo Street, has been recognized as a historic asset in the community by its designation as a Landmark by the City Council on April 21, 2026 (Resolution No. 11640). As such, maintaining the structure will meet the City’s goals for historic preservation listed in policies
3.3.1 through 3.3.5 of the Conservation and Open Space Element.
SECTION 2. Environmental Determination. The City Council has determined that the above actions do not constitute a project, as defined in California Environmental Quality Act Guidelines § 15378, and are not subject to environmental review.
SECTION 3. Historic Property Preservation Agreement Approved. The City Council hereby approves the “Historic Property Preservation Agreement between the City of San Luis Obispo and the Owners of the Historic Property Located at 571 Pismo Street,” to be entered into by the City and the property owners, Benjamin and Saskia Winter, attached hereto as “Exhibit A.”
SECTION 4. Community Development Director Authorized to Sign Agreement for City. The City Council hereby authorizes the Community Development Director to execute said agreement on behalf of the Council of the City of San Luis Obispo.
SECTION 5. Recordation of the Agreement. No later than twenty (20) days after the parties enter into said agreement, the City Clerk shall cause the agreement to be recorded in the Office of the County Recorder of the County of San Luis Obispo.
Upon motion of Council Member ___________, seconded by Council Member ___________, and on the following roll call vote:
AYES:
NOES:
ABSENT:
Resolution No. _____ (2026 Series) Page 3
R ______
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
Attachment B – Draft Preservation Contract
HISTORIC PROPERTY PRESERVATION AGREEMENT BETWEEN
THE CITY OF SAN LUIS OBISPO AND THE OWNER OF THE HISTORIC PROPERTY LOCATED AT 571 PISMO STREET, IN THE CITY AND THE COUNTY OF SAN LUIS OBISPO, STATE OF CALIFORNIA.
THIS AGREEMENT is made and entered into this _________day of __________, 2026, by and between the City of San Luis Obispo, a municipal corporation (hereinafter referred to as the “City”), and Ben and Saskia Winter (hereinafter referred to as “Owner”), and collectively referred to as the “parties.”
WHEREAS, Owner is the owners of that certain real property commonly known as 571 Pismo Street (APN 003-615-003), and legally described as shown in the attached “Exhibit B” (“Owner’s Property”); and
WHEREAS, Owner has agreed to enter into a Historical Property Contract with the City for the preservation, maintenance, restoration, or rehabilitation of Owner’s Property, a historic resource within the City;
NOW, THEREFORE, in consideration of the above recitals and in further consideration of the mutual benefits, promises, and agreements set out herein, the parties agree as follows:
Section 1. Description of Preservation Measures. The Owner, their heirs, or assigns hereby agree to undertake and complete, at their expense, the preservation, maintenance, and improvements measures described in “Exhibit A” attached hereto.
Section 2. Effective Date and Term of Agreement. This agreement shall be effective and commence upon recordation and shall remain in effect for an initial term of ten (10) years thereafter. Each year upon the anniversary of the agreement’s effective date, such initial term will automatically be extended as provided in California Government Code Section 50280 through 50290 and in Section 3, below.
Section 3. Agreement Renewal and Non-renewal.
a. Each year on the anniversary of the effective date of this agreement (hereinafter referred to as “annual renewal date”), a year shall automatically be added to the initial term of this agreement unless written notice of nonrenewal is served as provided herein.
b. If the Owner or the City desires in any year not to renew the agreement, the Owner or the City shall serve written notice of nonrenewal of the agreement on the other party. Unless such notice is served by the Owner to the City at least ninety (90) days prior to the annual renewal date, or served by the City to the Owner at least sixty (60) days prior to the annual renewal date, one (1) year shall automatically be added to the term of the agreement as provided herein.
Historic Preservation Agreement
571 Pismo Street
c. The Owner may make a written protest of the notice. The City may, at any time prior to the annual renewal date, withdraw its notice to the Owner of nonrenewal. d. If either the City or the Owner serves notice to the other party of nonrenewal in any year, the agreement shall remain in effect for the balance of the term then remaining.
Section 4. Standards and Conditions. During the term of this agreement, the historic property shall be subject to the following conditions:
a. Owner agrees to preserve, maintain, and, where necessary, restore or rehabilitate the building and its character-defining features, including: the building’s general architectural form, style, materials, design, scale, proportions, organization of windows, doors, and other openings; interior architectural elements that are integral to the building’s historic character or significance; exterior materials, coatings, textures, details, mass, roof line, porch, and other aspects of the appearance of the building’s exterior, as described in Exhibit A, to the satisfaction of the Community Development Director or their designee.
b. All building changes shall comply with applicable City specific plans, City regulations and guidelines, and conform to the rules and regulations of the Office of Historic Preservation of the California Department of Parks and Recreation, namely the U.S. Secretary of the Interior’s Standards for Rehabilitation and Standards and Guidelines for Historic Preservation Projects. Interior remodeling shall retain original, character-defining architectural features and architectural ornamentation to the greatest extent possible.
c. The Community Development Director shall be notified by the Owner of changes to character-defining exterior features prior to their execution, such as major landscaping projects and tree removals, exterior door or window replacement, repainting, remodeling, or other exterior alterations requiring a building permit.
The Owner agrees to secure all necessary City approvals and/or permits prior to changing the building’s use or commencing construction work. d. Owner agrees that property tax savings resulting from this agreement shall be used for property maintenance and improvements as described in Exhibit A. e. The following are prohibited: demolition or partial demolition of the historic building; exterior alterations or additions not in keeping with the standards listed above; dilapidated, deteriorating, or unrepaired structures such as fences, roofs, doors, walls, windows; outdoor storage of junk, trash, debris, appliances, or furniture visible from a public way; or any device, decoration, structure, or vegetation which is unsightly due to lack of maintenance or because such feature adversely affects, or is visually incompatible with, the property’s recognized historic character, significance, and design as determined by the Community Development Director.
Historic Preservation Agreement
571 Pismo Street
f. Owner shall allow reasonable periodic examination, by prior appointment, of the interior and exterior of the historic property by representatives of the County Assessor, the State Department of Parks and Recreation, the State Board of Equalization, and the City as may be necessary to determine the owners’ compliance with the terms and provisions of this agreement.
Section 5. Furnishing of Information. The Owner hereby agrees to furnish any and all information requested by the City which may be necessary or advisable to determine compliance with the terms and provisions of this agreement.
Section 6. Cancellation.
a. The City, following a duly-noticed public hearing by the City Council as set forth in Government Code Section 50285, may cancel this agreement if it determines that the Owner has breached any of the conditions of this agreement or has allowed the property to deteriorate to the point that it no longer meets the standards for a qualified historic property; or if the City determines that the Owner has failed to preserve, maintain, or rehabilitate the property in the manner specified in Section 4 of this agreement. If a contract is cancelled because of failure of the Owner to preserve, maintain, and rehabilitate the historic property as specified above, the Owner shall pay a cancellation fee to the State Controller as set forth in Government Code Section 50286, which states that the fee shall be 12 ½% of the full value of the property at the time of cancellation without regard to any restriction imposed with this agreement.
b. If the historic building is acquired by eminent domain and the City Council determines that the acquisition frustrates the purpose of the agreement, the agreement shall be cancelled and no fee imposed, as specified in Government Code Section 50288.
Section 7. Enforcement of Agreement.
a. In lieu of and/or in addition to any provisions to cancel the agreement as referenced herein, the City may specifically enforce, or enjoin the breach of, the terms of the agreement. In the event of a default, under the provisions to cancel the agreement by the Owner, the City shall give written notice of violation to the Owner by registered or certified mail addressed to the address stated in this agreement. If such a violation is not corrected to the reasonable satisfaction of the Community Development Director or designee within thirty (30) days thereafter; or if not corrected within such a reasonable time as may be required to cure the breach or default of said breach; or if the default cannot be cured within thirty (30) days (provided that acts to cure the breach or default may be commenced within thirty (30) days and shall thereafter be diligently pursued to completion by the Owner); then the City may, without further notice, declare a default under the terms of this agreement and may bring any action necessary to specifically enforce the
Historic Preservation Agreement
571 Pismo Street
obligations of the Owner growing out of the terms of this agreement, apply to any court, state or federal, for injunctive relief against any violation by the owners or apply for such relief as may be appropriate.
b. The City does not waive any claim of default by the Owner if the City does not enforce or cancel this agreement. All other remedies at law or in equity which are not otherwise provided for in this agreement or in the City’s regulations governing historic properties are available to the City to pursue in the event that there is a breach or default under this agreement. No waiver by the City of any breach or default under this agreement shall be deemed to be a waiver of any other subsequent breach thereof or default herein under.
c. By mutual agreement, City and Owner may enter into mediation or binding arbitration to resolve disputes or grievances growing out of this contract.
Section 8. Binding Effect of Agreement. The Owner hereby subjects the historic building located at 1110 Buchon St, San Luis Obispo, California, Assessors Parcel Number 003-545-016, to the covenants, reservations, and restrictions as set forth in this agreement. The City and Owner hereby declare their specific intent that the covenants, reservations, and restrictions as set forth herein shall be deemed covenants running with the land and shall pass to and be binding upon the Owner’s successors and assigns in title or interest to the historic property. Every contract, deed, or other instrument hereinafter executed, covering or conveying the historic property or any portion thereof, shall conclusively be held to have been executed, delivered, and accepted subject to the covenants, reservations, and restrictions expressed in this agreement regardless of whether such covenants, restrictions, and reservations are set forth in such contract, deed, or other instrument.
Section 9. Notice. Any notice required by the terms of this agreement shall be sent to the address of the respective parties as specified below or at other addresses that may be later specified by the parties hereto.
To City: Community Development Director
City of San Luis Obispo
919 Palm Street
San Luis Obispo, CA 93401
To Owner: Ben and Saskia Winter
571 Pismo Street
San Luis Obispo, CA, 93401
Section 10. General Provisions.
a. None of the terms, provisions, or conditions of this agreement shall be deemed to create a partnership between the parties hereto and any of their heirs, successors, or assigns, nor shall such terms, provisions, or conditions cause them to be considered joint ventures or members of any joint enterprise.
Historic Preservation Agreement
571 Pismo Street
b. The Owner agrees to hold the City and its elected and appointed officials, officers, agents, and employees harmless from liability for damage or from claims for damage for personal injuries, including death, and claims for property damage which may arise from the direct or indirect use or activities of the Owner, or from those of their contractor, subcontractor, agent, employee, or other person acting on the Owner’s behalf which relates to the use, operation, maintenance, or improvement of the historic property. The Owner hereby agrees to and shall defend the City and its elected and appointed officials, officers, agents, and employees with respect to any and all claims or actions for damages caused by, or alleged to have been caused by, reason of the Owner’s activities in connection with the historic property, excepting however any such claims or actions which are the result of the sole negligence or willful misconduct of City, its officers, agents, or employees. c. This hold harmless provision applies to all damages and claims for damages suffered, or alleged to have been suffered, and costs of defense incurred, by reason of the operations referred to in this agreement regardless of whether or not the City prepared, supplied, or approved the plans, specifications, or other documents for the historic property.
d. All of the agreements, rights, covenants, reservations, and restrictions contained in this agreement shall be binding upon and shall inure to the benefit of the parties herein, their heirs, successors, legal representatives, assigns, and all persons acquiring any part or portion of the historic property, whether by operation of law or in any manner whatsoever.
e. In the event legal proceedings are brought by any party or parties to enforce or restrain a violation of any of the covenants, reservations, or restrictions contained herein, or to determine the rights and duties of any party hereunder, the prevailing party in such proceeding may recover all reasonable attorney’s fees to be fixed by the court, in addition to court costs and other relief ordered by the court. f. In the event that any of the provisions of this agreement are held to be unenforceable or invalid by any court of competent jurisdiction, or by subsequent preemptive legislation, the validity and enforceability of the remaining provisions, or portions thereof, shall not be affected thereby.
g. This agreement shall be construed and governed in accordance with the laws of the State of California.
Section 11. Amendments. This agreement may be amended, in whole or in part, only by a written recorded instrument executed by the parties hereto.
Section 12. Recordation and Fees. No later than twenty (20) days after the parties enter into this agreement, the City shall cause this agreement to be recorded in the office of the County Recorder of the County of San Luis Obispo. Participation in the program shall be at no cost to the Owner;
Historic Preservation Agreement
571 Pismo Street
however the City may charge reasonable and necessary fees to recover direct costs of executing, recording, and administering the historical property contracts.
IN WITNESS WHEREOF, the City and Owner have executed this agreement on the day and year written above.
OWNER
____________________________________ ______________________________ Ben Winter Date
____________________________________ ______________________________ Saskia Winter Date
CITY OF SAN LUIS OBISPO
____________________________________ ______________________________ Tyler Corey, Deputy Director Date
For: Timothea Tway
Community Development Director
Pursuant to authority conferred under by Resolution No. XXXX ATTEST:
______________________________
Teresa Purrington, City Clerk
APPROVED AS TO FORM:
______________________________
J. Christine Dietrick, City Attorney
ALL SIGNATURES MUST BE NOTARIZED
Historic Preservation Agreement
571 Pismo Street
EXHIBIT A
MAINTENANCE AND IMPROVEMENT MEASURES FOR THE MEREDITH HOUSE LOCATED AT 1110 BUCHON STREET, SAN LUIS OBISPO, CALIFORNIA Owner shall preserve, maintain, and repair the historic building, including its character-defining architectural features in good condition, to the satisfaction of the Community Development Director or designee, pursuant to a Mills Act Preservation Contract with the City of San Luis Obispo for property located at 1110 Buchon Street. Character-defining features shall include, but are not limited to: roof, eaves, dormers, trim, porches, walls and siding, architectural detailing, doors and windows, window screens and shutters, balustrades and railings, foundations, and surface treatments.
Owner agrees to make the following improvements and/or repairs during the term of this contract but in no case later than ten (10) years from the contract date. All changes or repairs shall be consistent with the City’s Historic Preservation Ordinance and the Secretary of the Interior’s Standards for the Treatment of Historic Properties:
reconstruct the descending screen
reconstruct the balusters and fretwork faux corbels
reconstruct the original wood picket fence
replace and reconstruct areas of dry rot
replace defectively applied glazing compound
reconstruct the original exterior sash lugs or ears
install period hardware
repaint
repair dry rot in other areas of the exterior fabric
reconstruct historic interior plaster
insulate the house
OWNERS
____________________________________ ______________________________ Ben Winter Date
____________________________________ ______________________________ Saskia Winter Date
Historic Preservation Agreement
571 Pismo Street
EXHIBIT B
LEGAL DESCRIPTION
For APN/Parcel ID: 003-615-003
To be included in final preservation agreement.
1 Mills Act Application
The George and Cordelia McCabe House
571 Pismo Street
Introduction The McCabe House was recently raised to Landmark status by the San Luis Obispo City Council at the recommendation of the Cultural Heritage Committee for the house’s architectural significance as one of four examples in the city and six known examples on the Central Coast of the Double-Bay-Front Eastlake Cottage, a form that appears to be indigenous to this region, in addition to its architectural significance as being one of the last documented examples of the use of wood pierced columns, an American architectural form that appears to have been innovated by the influential early American architect Alexander Jackson Davis, as recorded in his book Rural Residences (New York, 1837). The pierced column form is associated with Greek Revival and Italianate houses of the mid nineteenth century, but San Luis Obispo’s three examples embody alternative styles: the Neobaroque aedicular (temple-form) at 1429 Nipomo, which may date as early as 1877 but whose columns may date from that time or later; the McCabe House, around the corner on Pismo Street; and the Mill Street Historic District’s 855 Toro (the Richard Leland House, following page), an asymmetric single-bay Eastlake cottage first documented in the 1891 Sanborn Map.
Attachment A - Applicant Request Letter
2 Association of pierced
columns with the latenineteenth-century Eastlake
form is currently unknown
anywhere but San Luis,
making the McCabe House and
the Leland House (at left)
essential to protect, retain, and
maintain. Eastlake was the
dominant late-nineteenthcentury architectural form in
California but is underresearched due to its denial by late academic Vincent Scully.
Mills Act The Mills Act is a tax abatement measure dating from the 1970s that recognizes the added costs of restoring and maintaining historic properties, first passed by State Senator Jim Mills of San Diego in the California legislature and then passed by popular referendum after the State Supreme Court ruled the legislative passage unconstitutional.
The City of San Luis Obispo uses a ten-year contract as an enforcement mechanism to prevent Mills Act properties from falling into desuetude and decay. These renewable contracts focus on historic structure and fabric as well as such features (such as plumbing, drainage, and electrical) that contribute to the resource’s sustainability.
Like many new owners of a historic house, applicants Ben and Sakia Winter have already carried out extensive repairs and will be subject to unexpected emergency repairs and reconstructions of historic elements. Within the contract, they undertake to preserve and maintain the McCabe House and its historic structure and fabric. In addition, they will reconstruct, to Secretary of the Interior Standards of documentation, the front porch’s • descending screen (above)
• balusters and their elaborate fretwork faux corbels
(right)
After consultation, the façade’s ten true corbels would be problematic to reconstruct, as they no longer have a flat-roof soffit to support and would have to project in a functionless
3 way under the current shed roof, tending to collect water rather than protect the façade from water, as well as directly juxtaposing two anachronistic features in a confusion of historicity.
The Winters will reconstruct the original wood picket fence, though not with a precise copy to Secretary of the Interior Standards.
In addition, the Winters undertake to continue restoration of the dramatic and characterdefining plate glass sash windows, including • replacing and reconstructing areas of dry rot
• replacing defectively applied glazing compound
• reconstructing the original exterior sash lugs or ears (sash lug/ear illustrated at right)
• installing period hardware
• repainting—
though not including repair of the interior sash counterweights, which would require the highly invasive procedure of opening the walls from the exterior.
The Winters also undertake to repair and reconstruct
• dry rot in other areas of the exterior fabric
• historic interior plaster
Finally, in order to protect the character-defining fenestration from future risk of replacement by non-historic insulated windows, the Winters undertake to insulate the remainder of the house.
The result will be the preservation of an important exemplar of a regional form and the restoration of character-defining features to Secretary of the Interior Standards to convey its architectural significance.
Submitted on 21 May 2026 by
James Papp, PhD | Historian and Architectural Historian, City & County of San Luis Obispo 964 Chorro Street, San Luis Obispo, CA 93401 | 805-470-0983 [email protected]
on behalf of Ben and Saskia Winter
City of San Luis Obispo, Council Memorandum
City of San Luis Obispo
Council Agenda Correspondence
DATE: September 15, 2026
TO: Mayor and Council
FROM: Greg Hermann, Deputy City Manager
Prepared By: Robert Hill, Sustainability and Natural Resources Official VIA: Whitney McDonald, City Manager
SUBJECT: ITEM #6f - COMMUNITY PARTNERSHIP AGREEMENTS WITH (1) THE ENVIRONMENTAL CENTER OF SAN LUIS OBISPO AND (2) THE SAN
LUIS OBISPO CLIMATE COALITION
Staff received the following question from a Council Member regarding the SLO County Green Business Program operated by the Environmental Center of San Luis Obispo (ECOSLO). The question is shown below with staff’s response shown in italics:
1) Why isn’t the Green Business Network included as a funded portion of the ECOSLO Community Partnership Agreement?
The draft Community Partnership Agreement presented with the Council Agenda Report identifies the SLO County Green Business Program (Program) operated by ECOSLO as a prospective future element of the partnership between the City and ECOSLO, but it is not part of the current scope of work.
As background, there are currently 42 certified green businesses in the Program in the County, about 80% of which are based in the City of San Luis Obispo.
According to ECOSLO, there are an additional 160 regional businesses currently in some stage of the certification process. The Program is part of the statewide California Green Business Network (CAGBN) and provides free technical assistance and resources to help small and medium-sized businesses improve their operations, cut costs, and reduce their environmental impact. The CAGBN provides access to the GreenBiz Tracker for approximately $7,000 annually; the tracker is a web-based platform designed to facilitate the operation of Green Business certification programs with robust data tracking, sustainability metrics, and reporting capabilities.
Statewide, local participation in green business programs varies but is typically funded by county governments and other regional agencies. In SLO County, the program has historically been supported by the Tri-County Regional Energy Network (3C-Ren) and Cuesta College. These organizations have decided to no longer fund (or fully fund) Program participation.
ITEM #6f - COMMUNITY PARTNERSHIP AGREEMENTS WITH (1) THE ENVIRONMENTAL CENTER OF SAN LUIS OBISPO AND (2) THE SAN LUIS OBISPO CLIMATE COALITION Page 2
As described in the staff report, the City has partnered with ECOSLO for over 30 years on various environmental efforts. Attachment C to the Council Agenda Report provides ECOSLO’s 2026-27 funding request of $42,991, which includes tasks for tree planting, maintenance, and volunteer management, as well as customary reporting and coordination with City staff. This scope is supported by both the Office of Sustainability and Natural Resources program budget and the Tourism Business Improvement District Board (TBID). ECOSLO has indicated they do not wish to adjust the current scope of work under this agreement to include activities related to the Green Business Program, as they need to also maintain the integrity of and prior investments in their tree planting program.
Staff have suggested to ECOSLO that larger and ongoing requests for financial support are best addressed as part of the biennial financial planning process along with concurrent advocacy to other potential funders. It is staff’s understanding that ECOSLO can maintain the program at modest levels in the interim. The adopted program budgets and work plans for the Offices of Sustainability and Natural Resources and Economic Development and Tourism are unable to accommodate unplanned requests for ongoing support to fully sustain the Program. However, staff has been in contact with ECOSLO to better understand the current circumstances facing the Program and identify longer-term partnership opportunities through the Climate Action Plan update. Staff are also evaluating whether there are ways the organization may be suited to assist with other areas of planned and budgeted work in the current fiscal year, which would be addressed separately from this Council item.
Item 6f
Department: Administration
Cost Center: 1005
For Agenda of: 9/15/2026
Placement: Consent
Estimated Time: N/A
FROM: Greg Hermann, Deputy City Manager
Prepared By: Robert Hill, Sustainability and Natural Resources Official Chris Read, Sustainability Manager
SUBJECT: COMMUNITY PARTNERSHIP AGREEMENTS WITH (1) THE
ENVIRONMENTAL CENTER OF SAN LUIS OBISPO AND (2) THE SAN
LUIS OBISPO CLIMATE COALITION
RECOMMENDATION
1. Approve a Community Partnership Agreement with The Environmental Center of San Luis Obispo; and
2. Approve a Community Partnership Agreement with The San Luis Obispo Climate Coalition; and
3. Authorize the City Manager to sign the Community Partnership Agreements in a final form satisfactory to the City Attorney.
POLICY CONTEXT
Community Partnership Policy
The City Council set forth a policy for Community Partnerships by Resolution No. 8862 (1998 Series) on October 20, 1998 (Attachment A; the “Policy”), with the stated goal to “encourage partnerships with non-profit organizations for the mutual benefit of both the City and the organizations.” The Policy includes the following relevant components:
A list of issues that the City should evaluate when considering a community partner are found under the “Eligible Programs, Projects, and Activities” header of the Policy. This Council Agenda Report provides an analysis of these evaluative criteria under the “Proposed Community Partnership Agreements” header, below:
o The level of public benefit offered by the partnership; o The extent to which such a partnership will help advance existing City goals; o Whether or not the partnership will help meet a currently unmet community need;
o The potential success and cost-effectiveness of the proposed partnership strategy; and
o Whether or not the City is the appropriate public agency partner (or if another agency would be more appropriate).
A description of partner eligibility is found under the “Eligible Community Partners”
Item 6f
header of the Policy. This section of the Policy directs the City to form community partnerships only with entities that can demonstrate good organization and stability. Non-profits should have a board of directors, and, if funding is involved, must be qualified under Section 501(c)3 of the Internal Revenue Code. The mandatory requirements of a Community Partnership Agreement are articulated in the “Community Partnership Agreement” header of the Policy. A summary of these requirements includes:
o A formal agreement between the City and the partner(s); o Agreement about the City’s responsibilities and the Partner’s responsibilities;
o Agreement about the level of in-kind (e.g., labor and materials) and direct financial support each party brings to the partnership; and o City Council approval in instances where City funding is to be provided. The range and type of City support is articulated in the “Level and Type of City Support” header of the Policy. This section of the Policy notes that community partnership types may vary widely and that while it is expected that the City and the partners each contribute half the cost of the project, the ratio can vary based on project type and value to the community, the resources available to the partner, and the level of interest in the City. The Policy also notes that “in-kind” support shall be counted in assessing the total contributions of each party to the partnership. The Policy goes on to note that once agreement is reached on the levels of contribution by the parties, it will be documented in the partnership agreement.
Project Related Policy
The Community Partnership Agreements proposed in this Council Agenda Report support implementation of Climate Action Plan action Leadership 3.1.A, which directs staff to, “Continue to support and empower community collaboration for climate action” (CAP
plan for Open Space, Climate Action, and Resilience, including section 4, “Protect, sustain and advance open space and natural and historic resources” with sub-section 4.d being “Plant at least 125 native trees in Open Space through partnerships in furtherance of the ‘10 Tall’ goal.”
DISCUSSION
Background
The City of San Luis Obispo benefits from long-standing public-private partnerships with both the Environmental Center of San Obispo (ECOSLO) and the San Luis Obispo Climate Coalition (SLOCC) as follows:
The City has partnered with ECOSLO for nearly 30 years on volunteer tree planting initiatives, the SLO Green Business Network, and numerous planning, land restoration, land stewardship, and environmental education efforts. Under the
Item 6f
proposed Community Partnership Agreement, ECOSLO would assemble and manage volunteer hours to provide substantial “in-kind” match for the partners’ tree planting efforts.
The City has partnered with SLOCC for nearly 10 years on community engagement and education on wide-ranging topics related to renewable energy, electric vehicles, and home electrification. Under the proposed Community Partnership Agreement, SLOCC would assemble and manage volunteer hours, as well as College Corps Fellows, to provide substantial “in-kind” match for the partners’ community engagement and education efforts.
Procurement Approach to Community Partner Services
As described in the City’s Purchasing Policy, Municipal Code Section 3.24.060 dictates that certain acquisitions can be purchased from a single “sole source” without engaging in standard bidding procedures under certain circumstances, including when the item(s) to be purchased can be obtained from only one vendor or supplier.
The City has previously made funding commitments to both organizations. For Fiscal Year 2026-27, the City budgeted $42,991 for ECOSLO and $10,000 for SLOCC (as described in additional detail, below). These amounts reflect ongoing budgeted commitments. Staff have provided budgeted funds in previous fiscal years via “sole source” exemptions to the City’s standard procurement process based on each organization’s unique ability to provide “in-kind” volunteer support to the projects. However, given the recurring nature of these projects, staff recommend that these long-standing relationships be formalized via a Community Partnership Agreement approved by Council. This would allow for the City to issue a Purchase Order for the contemplated work without depending on ongoing stafflevel “sole source” exemptions.
Proposed Community Partnership Agreements
The Community Partnership Agreements provided in this report allow for Council’s review and approval that the required elements of a community partnership, per the 1998 policy, are in place and that, if approved, the community partners can receive payment for their budgeted allocations without depending on a staff-level “sole source” exemption to the standard procurement process. The proposed Community Partnership Agreements are provided as Attachment B (ECOSLO) and Attachment D (SLOCC).1 The proposed agreements include terms of three years allowing for continuity of the relationship. The scopes of the collaborative projects for the first year of each agreement are included as Attachment C for ECOSLO and Attachment E for SLOCC. Should ongoing financial contributions be approved in subsequent budget years, staff would collaborate with the partners on scopes of work, and upon concurrence, would issue Purchase Orders
1 On February 3, 2026, Council approved a Community Partnership Agreement with SLOCC for purposes of implementing the mobile and manufacture home electrification project contemplated in the TECH Quick Start Grant. The draft SLOCC Community Partnership Agreement included in this report is an entirely separate agreement from the one previously executed between the City and SLOCC.
Item 6f
for that work on an annual basis, or as needed.
As mentioned above, the 1998 Community Partnership policy includes five issues that the City should evaluate when considering a community partner. Consistency with these criteria is articulated for each proposed Community Partnership Agreement as follows:
ECOSLO
The level of public benefit offered by the partnership. The partnership would allow for continued substantial progress towards the City’s adopted goal of planting 10,000 new trees by 2035. As a core part of the partnership, ECOSLO works with City staff to identify the planting locations and planting species. The benefits of collaborating with a community partner that coordinates volunteer work to plan the right trees in the right places are numerous (e.g. habitat, clean air, carbon sequestration, shading and cooling, and beautification) and there would be fewer plantings without the partnership.
The extent to which such a partnership will help advance existing City goals.
The partnership would exist in direct furtherance of the City’s adopted goal of 10,000 new trees by 2035, which is an identified action in the Climate Action Plan and current 2025-27 Major City Goal for Open Space, Climate Action, and Resilience.
Whether or not the partnership will help meet a currently unmet community need. City staff do not have the capacity to orchestrate the volunteer tree planting efforts at the same scale or frequency as ECOSLO, nor does staff have the same level of volunteer relationships in this topical area, which would lead to fewer new trees in empty tree wells, public right of ways, and open spaces. The partnership allows the City to meet these currently unmet needs.
The potential success and cost-effectiveness of the proposed partnership strategy. Under the proposed Community Partnership Agreement, City funds would be used to support staff time and tree planting materials; labor to complete the tree plantings come almost entirely from volunteers, making the program highly cost effective and multiplying the value of the City’s investment. These efforts also include ongoing maintenance for the first years following a tree’s installation. Whether or not the City is the appropriate public agency partner (or if another agency would be more appropriate). The proposed Community Partnership Agreement anticipates activities that occur in the City of San Luis Obispo and in the case of tree plantings, occur on City right-of-way, public properties, and open spaces. As such, the City is the appropriate public agency partner.
SLOCC
The level of public benefit offered by the partnership. The partnership would allow for continued community outreach and education events hosted by the SLO Climate Coalition in support of connecting community members with clean energy and clean transportation information and regional incentives and rebates.
Item 6f
The extent to which such a partnership will help advance existing City goals.
The partnership would exist in direct furtherance of the City’s adopted Climate Action Plan goal of carbon neutrality by 2035.
Whether or not the partnership will help meet a currently unmet community need. Community outreach is expensive and time intensive. The community partnership allows the City to fulfill unmet community education needs through climate action informational booths and tabling at community events and the hosting of events exclusively focused on these topics.
The potential success and cost-effectiveness of the proposed partnership strategy. Under the proposed Community Partnership Agreement, City funds would be used to support SLOCC staff time, facility fees, and event materials; the majority of labor used to host and attend events would come from community volunteers and College Corps Fellows, making the program highly cost effective and multiplying the value of the City’s investment.
Whether or not the City is the appropriate public agency partner (or if another agency would be more appropriate). The proposed Community Partnership Agreement anticipates activities that directly support the City’s Climate Action Plan and as such the City is the appropriate public agency partner.
Current Funding Requests
The Community Partnership Agreement provides for a relationship between a community partner and the City wherein each partner brings resources to a task that is in furtherance of a City goal. As previously mentioned, the two agreements presented in this report include commitments from community partners to conduct tasks critical to achieving City goals that includes assembling and managing volunteers to create substantial additional capacity. The City’s commitments to these agreements are to provide staff collaboration and to provide financial resources. Attachment C provides ECOSLO’s 2026-27 funding request of $42,991, which includes tasks for tree planting, maintenance, and volunteer management, as well as customary reporting and coordination with City staff. This scope is supported by both the Office of Sustainability and Natural Resources program budget and the Tourism and Business Improvement Board (TBID). Attachment E provides SLOCC’s 2026-27 funding request of $10,000, which includes tasks to conduct community education events in San Luis Obispo.
Previous Council or Advisory Body Action
December 2022 - Council adopted the Climate Action Plan 2023-27 Work Program, which includes direction to work with community organizations on plan implementation.
October 1998 – Council approved the Community Partnership Agreement policy via Resolution No. 8862 (1998 Series) (Attachment A).
Public Engagement
The Climate Action Plan action item and Major City Goal strategy to collaborate with
Item 6f
community partners to achieve plan implementation is reflective of extensive public engagement during the Climate Action Plan and 2025-27 Financial Plan processes. Any member of the public may put forward either written or verbal comments to the City Council pertaining to this agenda item.
CONCURRENCE
Staff from ECOSLO and SLOCC concur with the recommendations in this report.
ENVIRONMENTAL REVIEW
The California Environmental Quality Act does not apply to the recommended action in this report, because the action does not constitute a “Project” under CEQA Guidelines Sec. 15378.
FISCAL IMPACT
Budgeted: Yes Budget Year: 2026-27
Funding Identified: Yes
Fiscal Analysis:
Funding Sources
Total
Budget
Available
Current
Funding
Request
Remaining
Balance
Annual
Ongoing
Cost
General Fund (ECOSLO) $20,000 $20,000 - -
General Fund (SLOCC) $10,000 $10,000 - -
State
Federal
Fees
Tourism and Business
Improvement District
(ECOSLO)
$22,991 $22,991 - -
Total $52,991 $52,991 N/A N/A
The Office of Sustainability and Natural Resources 2026-27 annual budget includes the $30,000 identified for payment to the community partners as described above. In addition, the Tourism and Business Improvement District will provide $22,991 for the “Keys for Trees” portion of the ECOSLO scope of work. Staff’s recommendation does not require new allocations beyond what is already in the current fiscal year’s budget.
ALTERNATIVES
1. Council could request changes to either or both Community Partnership Agreements or associated scopes of work. Should Council provide this feedback, staff requests that proposed amendments be specific and that staff be directed to return at a time certain.
Item 6f
2. Council could deny the recommendation to approve the Community Partnership Agreements or associated scopes of work. If Council provides this direction, staff request clarification on whether Council would prefer staff to pursue the work through the standard purchasing process, or to cease work on the proposed scopes.
ATTACHMENTS
A - Community Partnership and Foundation Policy and Resolution No. 8862 (1998 Series) B - Draft ECOSLO Community Partnership Agreement
C - ECOSLO 2026-27 Annual Work Proposal
D - Draft SLOCC Community Partnership Agreement
E - SLOCC 2026-27 Annual Work Proposal
council o, zo_
j
acEnaa Repoin
H
CITY OF SAN LUIS OBISPO
FROM: Ken Hampian, Assistant City Administrative Officerl Prepared By: Wendy George, Assistant to the City Administrative Officertr Paul LeSage, Parks and Recreation Director a
SUBJECT: COMMUNITY PARTNERSHIP AND FOUNDATION POLICY
CAO RECOMMENDATION
1) Adopt a resolution approving a Community Partnership and Foundation Policy. 2) Adopt a resolution endorsing a Community Recreation and Parks Foundation, subject to receipt of its 501( c) non-profit status, the formation of a board of directors and approval of proposed by-laws.
DISCUSSION
Background
During the goal setting process for the 1997-99 Financial Plan, the Council created a goal to encourage partnerships with non-profit organizations for the mutual benefit of both the City and the organizations." In considering this goal, the Council recognized that the possibilities for such partnerships and foundations are wide-ranging and could also create competition with other local non-profit agencies. Therefore, staff was directed to develop procedures for establishing them in a well-defined, logical way, based on a full understanding of the implications involved. In order to fulfill this direction, staff surveyed a number of other public agencies and gathered information about the types ofpartnerships and level of governmental support involved. .
The results of this survey were presented to the City Council at its January 13, 1998, meeting.
Following a discussion of the information provided, the City Council directed staff to develop a community partnership policy which addresses establishing partnerships for specific City-related projects and the formation of a Parks and Recreation Foundation. Staff was asked to include the following areas in the policy:
Guidelines for the level of" seed" money to be provided to a partner.
Guidelines for the level of"in-kind" support to be provided to a partner.
The type offormal agreement which must be developed with a partner.
Requirements which a partner must meet to prevent the City from assuming additional liability.
Methods ofpublicizing the City's interest in developing community partnerships.
The level of direct City involvement with a City-endorsed foundation.
Parameters for a City-endorsed foundation which would prevent it from competing with other non-profit organizations.
Council Agenda Report- Community Partnership and Foundation Policy
Community Partnerships
The proposed Community Partnership and Foundation Policy (Attachment 1) is divided into two sections. The first addresses partnerships and the second addresses City-endorsed foundations. In developing the section on partnerships, it became quickly apparent that it would be difficult to create hard and fast rules relating to the types of programs, projects and activities that would be appropriate for partnerships. Instead, the policy sets forth evaluation criteria, such as the level of public benefit offered by the partnership, the extent to which a partnership will help advance existing City goals and the cost-effectiveness ofthe partnership. These criteria can then be used on a case-by-case basis to evaluate the appropriateness of a given partnership.
The policy also directs the City to form community partnerships only with entities that can demonstrate good organization and stability. Non-profits should have a board of directors, and, if funding is involved, must be qualified under Section 501( c) of the Internal Revenue Code. To assure that both parties in the partnership understand their responsibilities and any financial arrangements, the policy requires that a formal agreement be drawn up. If significant funding or significant in-kind support is involved, the agreement will be approved by the City Council.
Otherwise, the City Administrative Officer may provide approval. The agreement will also protect the City from liability by providing indemnification and requiring the partner to be properly insured.
Similar to the issue of trying to succinctly define appropriate types of partnerships, it was difficult for staff to provide specific parameters on the level or type of City support, given the variety of possibilities. However, the policy does provide a general guideline that it is reasonable to expect the City and the partner(s) to share the cost equally. It finther states that this ratio could vary depending on the cost of the program/project, the resources of the partner(s) and the degree of interest on the part of the City. The policy also assures that the potential impact on other existing City services and priorities will be considered when determining the level of the City's in-kind commitment.
In order for partnerships to become one ofthe City's standard problem-solving tools, we propose to send copies of the approved policy to all non-profit organizations within the City. Staff will also consider and, when appropriate, recommend partnerships as a way of completing City programs, projects and activities that would otherwise lack sufficient funding for completion. The community will also be encouraged to consider partnerships when advocating to the City for the initiation of new programs or projects. ( For example, as part ofthe bi-annual goal setting process.) City-Endorsed Foundations
The second section of the policy addresses what we are now calling " City-endorsed foundations".
Attachment 1). We believe this is a more appropriate description than the term "City foundation", which was used during earlier discussions of this issue. These are foundations that are not formed directly by the City, but ones whose efforts the City sanctions; and for which the City may provide limited formation assistance, such as reviewing proposed by-laws to assure their compatibility with City interests. Prior to the City offering such recognition, the proposed foundation will be evaluated to assure that it will not compete for resources that are currently supporting other nonPage 92 of 159 Council Agenda Report- Community Partnership and Foundation Policy
profit activities in the community. Endorsed foundations must be qualified under Section 501( c) of the Internal Revenue Code and have by-laws that clearly state their purposes. The policy requires formal action by the City Council to affect endorsement.
The purpose of a City-endorsed foundation is to assist members ofthe community in raising funds for a particular program area that is of benefit to the City. Funds may be used for the construction or improvement of facilities, purchases of equipment, development of innovative programs and scholarships or other forms offinancial assistance. Funds may be granted by the foundation to the City or to other community organizations that provide services or opportunities within the foundation's program area.
The policy provides very specific restrictions on fundraising, which must be followed by any foundation wishing City endorsement. They shall not:
Accept funds that simply redistribute existing community resources.
Compete against other local non-profit organizations for funds that they have formerly received.
Undertake a general fundraising campaign. All fundraising must be directed toward a specific purpose.
Allocate funds other than to the specific stated purpose ofthe fundraising.
Proposed San Luis Obispo Community Recreation and Parks Foundation Staff recommends that the City Council endorse the formation of a Community Recreation and Parks Foundation that will benefit all ofthe organizations that provide leisure services.
As defined in the organization's proposed by-laws, the Foundation would:
Assist members ofthe community in raising funds for construction ofnew recreation facilities, improvements of existing facilities, purchase of equipment, development of innovative recreation programs and scholarships.
Obtain grants from other non-profit foundations.
The proposed Community Recreation and Parks foundation will meet the guidelines ofthe Council relating to City-endorsed foundations. A set ofbylaws (Attachment 3) has already been developed.
Once a conditional endorsement is received from the City, a board of directors will be formed, based on the by-laws, and the organization will apply for its 501( c) non-profit status.
The Foundation will be careful not to undertake any activity that is contrary to the goals and purposes of the various organizations that provide recreation and park services within the San Luis Obispo community. To ensure this, the board will appoint ex-officio advisory board members from these organizations. The Foundation will not accept funding that merely redistributes existing community resources, nor will it undertake a general fundraising campaign. Funds raised will be used only for the specific activity for which they are intended.
Council Agenda Report- Community Partnership and Foundation Policy
Because of the community nature of this Foundation, all local recreation and park agencies can become active partners under its umbrella This can lead to other successful partnerships similar to the Santa Rosa Skate Park and the Mayor's Youth Task Force.
It is likely that a small amount of stafftime will be needed initially to assist with the organization of the Foundation. That time commitment will decrease as the Foundation board ofdirectors becomes active. Many local citizens are already aware of the proposed Foundation and have expressed an interest in serving on the board.
CONCURRENCES
The Parks and Recreation Commission endorses the formation of a Community Recreation and Parks Foundation.
The San Luis Obispo YMCA concurs with the formation ofa Community Recreation and Parks Foundation, with the understanding that they will become an active partner in it.
The Field Users Task Force has also been apprised of the Community Recreation and Parks Foundation and has expressed its support.
FISCAL IMPACT
There is no fiscal impact to the City created by the establishment of a Community Partnership and Foundation Policy. Implementation of the policy has the potential to provide considerable outside financial support or cost savings to the City, but will also require the potential investment of funds and manpower on the part of the City. The net fiscal impact to the City will be determined on a case-by-case basis.
Attachments
1 - Resolution approving the Community Partnership and Foundation Policy 2 - Resolution approving the City Endorsement of a Parks and Recreation Foundation 3 - Community Recreation and Parks Foundation By-Laws
Attachement 1
city of San lulS OBISPO community
pantnEnship and foundation policy
Purpose. There are many programs, projects and activities which are of interest to the City and the community, but cannot be addressed directly due to limitations on the City's human or financial resources. However, in keeping with the City's tradition of citizen involvement, City resources can be used in partnership with others to create opportunities for otherwise unfeasible projects or programs. The City encourages the formation of such community partnerships whenever possible. Under certain limited conditions the City will also consider endorsing the establishment of a foundation to encourage public contributions and grant funding for specific purposes that affect City programs. Both partnerships and foundations can be methods for the public to become more involved in creating the quality oflife that is so special to the residents.
A few examples of some successful City partnerships are:
Performing Arts Center
DARE Program
Prado Day Center
Santa Rosa Park roller hockey rink
STAR At-Risk Program
Creek Stewardship Program
I. COMMUNITY PARTNERSHIPS
Eligible Programs, Projects and Activities. On occasion, the City may propose a partnership with another community organization. More often, however, partnerships with the City are proposed by community organizations wishing.to initiate or enhance certain programs, projects or activities of special interest to them. In judging whether or not to participate in such partnerships, the City will consider such things as:
The level ofpublic benefit offered by the partnership;
The extent to which such a partnership will help advance existing City goals; Whether or not the partnership will help meet a currently unmet community need; The potential success and cost-effectiveness ofthe proposed partnership strategy; Whether or not the City is the appropriate public agency partner( or if another agency would be more appropriate).
Eligible Community Partners. The City shall only form community partnerships with entities that can demonstrate good organization and stability throughout the term of the partnership. Non-profit organizations should have a board of directors and, iffunding is 1 S- 7
to be received from the City, must be qualified under Section 501( c) of the Internal Revenue Code. Ifno funding is to be received from the City, official non-profit status is not required.
Community Partnership Agreement. All community partnerships require a formal agreement between the City and the partner(s). The agreement shall clearly define the purpose of the partnership, the City's responsibilities, the partner(s)' responsibilities, the level of in-kind ( e.g., labor and materials) and direct financial support the City shall contribute, the level of in-kind or financial support the partner(s) shall contribute, any reporting responsibilities the partner(s) shall have and any other operational details relevant to the purpose ofthe partnership. The City's standard contract agreement format shall be used to document the partnership. If City funding, or significant in-kind support is to be provided, or the purposes ofthe partnership could have major community impact, the partnership agreement shall be approved by the City Council. Other agreements may generally be approved by the City Administrative Officer.
Level and Type of City Support. Because there is such a diversity in the nature of potential partnerships, it is difficult to establish rigid parameters for an appropriate level of City support. As a general guideline, it is reasonable to expect the City and the partner(s) shall each contribute half the cost toward a community partnership. However, this ratio could vary depending upon the program/project cost, resources ofthe partner(s) and level of interest on the part of the City. In-kind contributions shall be counted, as well as actual cash, in calculating the total contribution of the parties. Once agreement is reached on the levels of contribution by the parties, it will be documented in the partnership agreement. The level of in-kind support to be committed from the City, particularly the amount of staff support, shall be determined based on work load considerations and the potential impact on other existing City services and priorities. In particular, before the commitment of financial or in-kind support which cannot be easily accommodated within existing departmental budgets, the availability of additional funding must be determined.
Examples:
The City and the Central Coast Women's League form a partnership to enhance the existing skate park The total cost of the enhancements is anticipated to be $ 40,000.
Each party commits to contributing $20,000 either in cash or in a combination of "inkind" services, e.g. volunteer or stafflabor, and cash.
The City and Friends ofLas Casas de Adobe (FOCA) form a partnership to rehabilitate the three City-owned adobes. The total cost of the project is anticipated $1. 2 million.
The parties agree that the City will provide $25,000 in " seed money" from the General Fund to allow FOCA to perform initial studies and establish fundraising mechanisms. In addition the City agrees to provide certain assistance, such as tree trimming, and to approve other sources offunding such as the Community Development Block Grant. The City's funding commitment is documented in the partnership agreement. The Friends of Las Casas de Adobe are responsiblefor the remainingfunding. 2 s 8
Organizations which are formally approved partners of the City may be eligible for certain benefits which are not normally made available to other groups. For example, use of City equipment, such as the trolley or portable toilets, may be approved on a case-bycase basis for official City partners.
Indemnification and Liability Insurance. Any partner(s) shall agree to indemnify the City against all claims or actual liability arising out of the partnership. The City's standard indemnification language shall be included in the partnership agreement. Any partner(s) shall provide proof of insurance in accordance with the City's standard Insurance Requirements for Contractors. Exceptions to the insurance requirements shall be approved by the Risk Manager.
Promotion of Community Partnership Opportunities. Partnerships have become a part ofthe City' s standard set ofproblem solving tools, and this formalized policy shall be made available to non-profit organizations within the community. In addition to being receptive to partnerships proposed by such organizations, staff shall also consider, and when appropriate recommend, partnerships as a way ofcompleting City programs, projects and activities that otherwise lack sufficient funding. The community will also be encouraged to suggest potential partnership strategies when advocating to the City Council for the initiation ofnew programs, projects, and activities( i.e. during the biannual goal setting process).
II. CITY-ENDORSED FOUNDATIONS
Formation ofCommunity Foundations. The formation of community foundations has become a way of tapping into new resources to support programs, projects, and activities that benefit the public. While the City will not directly form such a foundation, under certain conditions the City might endorse and assist in such efforts. In addition to assuring public benefit, one key condition prior to endorsement or assistance is that the proposed foundation is not being formed to compete for resources presently supporting other non-profit activities in the community. Endorsement shall be by the City Council, and forms of assistance provided by City staff shall be advisory only, such as reviewing proposed bylaws to assure compatibility with City conditions and interests.
Purposes of a City-Endorsed Foundation. A City-endorsed foundation's purpose shall be to assist members ofthe community in raising funds for a particular program area that is of benefit to the City, for example recreation and parks. Funds may be used for the construction ofnew facilities, improvements of existing facilities, purchase of equipment, development of innovative programs or providing scholarships or financial assistance to program participants. Funds may be granted by the foundation to City departments or programs, as well as to other organizations within the community which provide services or opportunities within the given program area.
3 S-9
The Endorsement Process. Endorsement of a local foundation shall be given by the City Council through the adoption of a resolution. In order to consider the appropriateness ofan endorsement, the following will be considered:
Non-profit status. The foundation must be qualified under section 501( c) of the Internal Revenue Code.
By-laws. A City-endorsed Foundation shall have formal by-laws which clearly state the purpose ofthe foundation and provide operational directives which assure that the foundation will satisfactorily meet the conditions ofthis policy.
Board of Directors. City employees shall not serve on the board of directors of a City-endorsed foundation. However, as appropriate, City employees may serve in an advisory capacity to the board ofdirectors.
Fiscal Provisions.
A City-endorsed foundation shall not accept fimds that simply redistribute existing community resources.
A City-endorsed foundation shall avoid competing against other local nonprofit organizations for funds that have typically gone to these other community organizations.
A City-endorsed foundation shall not undertake a general fundraising campaign. All fundraising shall be directed toward a particular defined purpose. A City-endorsed foundations primary source of fimds shall be through the solicitation of grants, donations and bequests and the conducting of special fundraising events for a particular purpose.
A City-endorsed foundation shall allocate all funds raised to the particular program, activity or facility stated to be the purpose for the fundraising. 4
RESOLUTION NO. 8862 ( 1998 Series)
A RESOLUTION OF THE COUNCIL OF THE CITY OF SAN LUIS OBISPO
APPROVING A COMMUNITY PARTNERSHIP AND FOUNDATION POLICY WHEREAS, there are many programs, projects and activities which are of interest to the City and the community, but cannot be addressed directly due to limitations on the City's human or financial resources; and
WHEREAS, the City of San Luis Obispo has a tradition of citizen involvement in its programs, projects and activities; and
WHEREAS, City resources can be used in partnership with others to create opportunities for otherwise unfeasible projects or programs; and
WHEREAS, under certain limited conditions the City and community can also benefit from the establishment of a foundation to encourage public contributions and grant funding for specific purposes that affect City programs.
NOW, THEREFORE, BE IT RESOLVED by the Council ofthe City of San Luis Obispo as follows:
The City of San Luis Obispo Community Partnership and Foundation Policy found in Attachment 1 is hereby approved.
Upon motion ofCouncil Member Williams , seconded by vice Mayor Romero , and on the following roll call vote:
AYES: Council Members Schwartz, Romero, Williams, Mayor Settle NOES: None
ABSENT: Council Member Roalman
the foregoing resolution was adopted this 2 n day of nr rnh,, ' 1998.
YAao
Mayor Allen Se e
R8862 Page 99 of 159
Resolution No. 8862 ( 1998 Series)
APPROVED AS TO FORM:
COMMUNITY PARTNERSHIP AGREEMENT
BETWEEN THE CITY OF SAN LUIS OBISPO AND
THE ENVIRONMENTAL CENTER OF SAN LUIS OBISPO
This COMMUNITY PARTNERSHIP AGREEMENT, hereinafter referred to as the Agreement, is made and entered into in the City of San Luis Obispo on _______ by and between the CITY OF SAN LUIS OBISPO, a municipal corporation (hereinafter referred to as “CITY”), and the ENVIRONMENTAL CENTER OF SAN LUIS OBISPO, a California non-profit organization (hereinafter referred to as “ECOCLO”). The CITY and ECOSLO are individually referred to as a “party” or collectively as the “parties”.
WITNESSETH:
WHEREAS, the CITY and ECOSLO have a long-standing public / private partnership stretching over thirty years where the two entities have engaged in mutually beneficial community projects including environmental education efforts, land and stream restoration and clean-up projects; green business programming; volunteer tree planting and stewardship; public engagement and community awareness, all in a manner beneficial for one another’s projects an initiatives; and
WHEREAS, CITY’s 2025-27 Financial Plan feature a Major City Goal work plan for Open Space, Climate Action, and Resilience, including section 4 “Protect, sustain and advance open space and natural and historic resources” with sub-section 4.d being most pertinent “Plant at least 125 native trees in Open Space through partnerships in furtherance of the "10 Tall" goal”; and WHEREAS, ECOSLO has set forth a request for CITY for funding an ongoing and currently active volunteer tree planting program, and CITY has solicited a proposal from ECOSLO for its services in this overseeing and administering the tree planting program; and WHEREAS, the CITY desires to maintain it long-standing, mutually beneficial relationship between the CITY and ECOSLO to advance climate action, climate adaptation, urban forestry, and open space stewardship goals; and
WHEREAS, the CITY has determined that partnerships with community organizations to provide shared services to the community are of great benefit and ECOSLO has expressed a willingness to continue these shared services, in partnership and in cooperation with CITY; and WHEREAS, ECOSLO is a 501(c)3 non-profit organization and is uniquely qualified to provide the services contemplated under this Agreement due to its more than 40 years of experience delivering environmentally beneficial projects in San Luis Obispo.
NOW THEREFORE, in consideration of their mutual promises, obligations and covenants hereinafter contained, the parties hereto agree as follows:
1. TERM. The duration of this Agreement shall be for a period of approximately three (3) years, commencing on July 1, 2026 and continuing to June 30, 2029 (the “Term”), which may be extended upon the mutual written agreement of the parties.
2. FINANCIAL MANAGEMENT. Initially, the CITY and ECOSLO intend to engage in certain activities relating to tree planting and maintenance and volunteer management, and in
connection therewith the parties intend to implement those projects in accordance with the financial terms outlined in Section 2.1, below.
2.1 PAYMENT TO ECOSLO. The CITY shall provide funding to ECOSLO for certain known project efforts, described below:
A. CITY has requested ECOSLO’s services for tree planting, maintenance, and volunteer management at various CITY properties. CITY shall issue a Purchase Order (the “City Purchase Order”) in the amount of $42,991 pursuant to ECOSLO’s proposal and scope of work, which shall be incorporated into the City Purchase Order. CITY shall remit payment to ECOSLO on a reimbursable basis upon receipt of quarterly invoices from ECOSLO in accordance with the City Purchase Order.
The City Purchase Order shall be subject to the mutual approval of CITY and ECOSLO.
3. ROLES AND RESPONSIBILITIES. The CITY’s identified community partner liaison may authorize minor modifications from time to time within the scope of their financial and/or operational authority, to the Roles and Responsibilities as they may deem necessary or appropriate to the partnership between the CITY and ECOSLO. Any material amendment or modifications to the Roles and Responsibilities shall be upon mutual written consent of both parties, in accordance with paragraph 6, below.
A. SCOPE OF SERVICES
i. Both parties agree to collaborate on the land conservation and land restoration projects identified at paragraph 2.1, above.
ii. Both parties will consider prospective additional project opportunities as they arise during the Term of this Agreement. Any additional project opportunities that CITY and ECOSLO elect to pursue together under this Agreement shall be subject to available funding and staff resources of each of the parties and would be facilitated and administered through an appropriate contractual agreement or purchasing method. Through this Agreement, it is CITY’s express intent to identify ECOSLO as a preferred partner and vendor for project activities as described herein.
iii. CITY and ECOSLO staff will meet and coordinate project administration and implementation on a quarterly or as-needed basis.
B. CITY OBLIGATIONS
i. CITY will be available for quarterly reoccurring meetings, or as needed, with ECOSLO during the Term.
ii. CITY shall remit approved payments to ECOSLO as outlined and in accordance with the City Purchase Order described above. iii. CITY shall provide administrative support for its own project management and reporting.
iv. CITY shall coordinate timing and access to CITY’s properties where tree planting and maintenance will occur.
v. CITY will coordinate with ECOSLO on any press releases, media, or public communications related to the Scope of Services.
C. ECOSLO OBLIGATIONS
i. ECOSLO will be available for quarterly reoccurring meetings, or as needed, with CITY during the Term.
ii. ECOSLO will dutifully carry out the Scope of Services.
iii. ECOSLO shall assemble and manage volunteers to complete work contemplated in the Scope of Services.
iv. ECOSLO shall submit requests for payment or periodic invoices to CITY as outlined and in accordance with the City Purchase Order described above. v. ECOSLO shall provide CITY with a semi-annual report documenting project planning and implementation activity, including summary success metrics, and any observations or lessons learned.
vi. ECOSLO shall provide notification of timing and access to CITY’s properties, and CITY shall provide its concurrence as to where tree planting will occur. vii. ECOSLO shall ensure that all volunteers have completed a volunteer waiver form and ECOSLO shall coordinate with CITY’s Volunteer Coordinator as needed and appropriate
4. COMPLETE AGREEMENT. This written Agreement, including all writings specifically incorporated herein by reference, shall constitute the complete agreement between the parties hereto. No oral agreement, understanding or representation not reduced to writing and specifically incorporated herein shall be of any force or effect, nor shall any such oral agreement, understanding or representation be binding upon the parties hereto.
5. AGREEMENT TERMINATION. Either party may terminate the Agreement for convenience provided that 30 days written notice is given. The Agreement may be terminated by either party for cause, provided that written notice has been given in the manner specified herein stating the reasons for the intended termination and providing the other party at least 10 days to cure any alleged breach. If the party receiving notice fails or refuses to cure the alleged breach within 10 days, or to make substantial progress toward cure to the satisfaction of the party demanding cure, this Agreement may be terminated 10 days after receipt of the notice as specified herein.
6. AGREEMENT AMENDMENTS. Except as otherwise stated in Section 3 of this Agreement, any amendment, modification or variation from the terms of this Agreement shall be presented in writing by CITY and / or ECOSLO and shall be effective only upon final written approval by an authorized representative of each of the parties.
7. INSURANCE AND LIABILITY
A. Each party to this Agreement shall make the other party, its officers, agents, employees and volunteers as separately additionally insured through a CG 20 26 or equivalent, blanket endorsement or section of the policy no later than October 1 of each year. Each party agrees to provide commercial general liability insurance with coverage at least as broad as Insurance Services Office form CG 00-01, in an amount not less than $1,000,000 per occurrence, $2,000,000 general aggregate, for bodily injury, personal injury, and property damage, including without limitation, blanket contractual liability.
B. Each party agrees to provide a minimum liability and property damage insurance coverage of one million dollars ($1,000,000).
C. Each party shall maintain worker’s compensation insurance at a level that is consistent with state law requirements.
8. HOLD HARMLESS AND INDEMNIFICATION
A. CITY agrees to defend, indemnify, protect and hold ECOSLO and its agents, officers and employees harmless from and against any and all claims asserted or liability established for damages or injuries to any person or property, including injury to
ECOSLO’s employees, agents, officers or volunteers, which arise from or are connected with or are caused or claimed to be caused by the acts or omissions of the CITY, and its agents, officers, employees or volunteers, in performing its responsibilities hereunder, and all expenses of investigating and defending against same; provided, however, that the CITY duty to indemnify and hold harmless shall not include any claims or liability arising from the negligence or willful misconduct of ECOSLO, its agents, officers, employees or volunteers.
B. ECOSLO agrees to defend, indemnify, protect and hold the CITY and its agents, officers and employees harmless from and against any and all claims asserted or liability established for damages or injuries to any person or property, including injury to the CITY employees, agents, officers or volunteers, which arise from or are connected with or are caused or claimed to be caused by the acts or omissions of ECOSLO, and its agents, officers, employees or volunteers, in performing its responsibilities hereunder, and all expenses of investigating and defending against same; provided, however, that ECOSLO’s duty to indemnify and hold harmless shall not include any claims or liability arising from the negligence or willful misconduct of the CITY, its agents, officers, employees or volunteers
9. NOTICE. All written notices to the parties hereto shall be sent by USPS Mail, postage prepaid by registered or certified mail addressed as follows:
CITY: City Manager
City of San Luis Obispo
990 Palm St.
San Luis Obispo, CA 93401
ECOSLO: Executive Director
Environmental Center of San Luis Obispo
1012 Pacific Street, Suite B-1
San Luis Obispo, CA 93401
Notices given pursuant to this section shall be deemed effective five (5) calendar days after deposit with USPS Mail. Either party may change its address for notices from time to time by giving written notice of such change in accordance with this section.
11. AUTHORITY TO EXECUTE AGREEMENT. Both CITY and ECOSLO do covenant that each individual executing this Agreement on behalf of each party is a person duly authorized and empowered to execute agreements for their party.
IN WITNESS WHEREOF, the parties hereto have caused this instrument to be executed the day and year first above written.
ATTEST: CITY OF SAN LUIS OBISPO:
________________________________ ________________________________ Teresa Purrington Erica Stewart
City Clerk Mayor
APPROVED AS TO FORM: ENVIRONMENTAL CENTER OF SAN LUIS
OBISPO:
________________________________
J. Christine Dietrick Kendra Paulding
City Attorney Executive Director
Office: 1012 Pacific St Suite B-1 Phone: (805)710-8021
San Luis Obispo, CA 93401 Email: [email protected]
Mail: PO Box 1014 Online: www.ecoslo.org
San Luis Obispo, CA 93406
Protecting and enhancing the Central Coast since 1971
Program Scope of Work
Urban Forestry Program – 2026-2027
Contract Proposal with the City of San Luis Obispo
Total Proposed Compensation: $42,991
Introduction & Background
ECOSLO is honored to continue its long-standing partnership with the City of San Luis Obispo, a collaboration spanning over decades. As a trusted, 55+ year old environmental nonprofit, ECOSLO is dedicated to protecting and preserving the natural environment of San Luis Obispo County. We are pleased to present this proposal for the 2026–2027 planning season, offering the City the opportunity to continue and expand upon its impactful Urban Forestry Program in collaboration with ECOSLO.
As the economic and environmental leader of the region, the City of San Luis Obispo benefits from a highly engaged and environmentally conscious community. ECOSLO is committed to deepening its role in supporting the City’s environmental goals through strategic tree planting, maintenance, community education, and volunteer engagement.
Urban Forestry Program Scope
2026–2027 Planning Season
Tree Plantings
ECOSLO will coordinate and lead the planting of approximately 101 trees in priority areas throughout the City of San Luis Obispo. Planting locations will focus on parks, public rights-of-way in front of homes, and local businesses.
Median planting locations are excluded from this project.
Implementation & Volunteer Engagement
● Trees will be planted in 5 community events.
● ECOSLO will:
○ Recruit, train, coordinate, and retain volunteers (18+ years) ○ Provide all trees (15-gallon or smaller), tools, supplies, and planting equipment ○ Notify the City in advance of event dates for promotion and engagement opportunities Draft 2026–2027 Planting Schedule
While dates are subject to adjustment in coordination with City staff, the following is a draft planting schedule:
● October 31 or November 7, 2026 – Approximately 20 trees for our SLO Neighborhood Tree Planting (offering two Saturdays as options so as not to compete with the City’s Arbor Day) ECOSLO is a 501(c)(3) not-for-profit, and our Federal Tax ID number is 23-7213237 Page 107 of 159 Office: 1012 Pacific St Suite B-1 Phone: (805)710-8021
San Luis Obispo, CA 93401 Email: [email protected]
Mail: PO Box 1014 Online: www.ecoslo.org
San Luis Obispo, CA 93406
Protecting and enhancing the Central Coast since 1971
● January 30, 2027 – Approximately 24 trees on the Bob Jones Trail at the WRRF ● February 13, 2027 – Approximately 13 trees at County of San Luis Obispo Health Campus ● February 27, 2027 – Approximately 24 trees at SLO Amtrak Station Parking Lot ● May 1, 2027 – Approximately 20 trees for our SLO Neighborhood Tree Planting, including The Grange Additionally, ECOSLO will plant 120 small (1-gallon) plants at Johnson Ranch in support of the City’s riparian restoration initiative in November and December..
Ongoing Tree Maintenance
ECOSLO will continue to coordinate the maintenance of:
● Trees planted over the past three years including trees at Meadow Park, Johnson Park, Laguna Lake Golf Course, Sinsheimer Park, Santa Rosa Park, and Islay Park.
Maintenance services include:
● Regular watering and mulching
● Inspection and adjustment of stakes and ties
● Replacement of deceased trees as needed
● Maintenance of a comprehensive Tree Database
Volunteer Management and Outreach
To support this program, ECOSLO will:
● Conduct outreach in target neighborhoods and planting areas ● Maintain an online intake form for proposed planting sites ● Coordinate with Walter Gault for location approvals
● Train volunteers in proper tree planting and maintenance practices ● Organize ongoing care activities using trained volunteer crews Community Engagement & Marketing
To raise awareness and recruit support, ECOSLO will:
● Promote tree planting and care opportunities through:
○ Our email newsletter: Eco-Bulletin
○ Calendar announcements
○ Social media campaigns
ECOSLO will also participate in the City’s annual Arbor Day celebration (Date TBD), supporting volunteer recruitment and public education.
ECOSLO is a 501(c)(3) not-for-profit, and our Federal Tax ID number is 23-7213237 Page 108 of 159 Office: 1012 Pacific St Suite B-1 Phone: (805)710-8021
San Luis Obispo, CA 93401 Email: [email protected]
Mail: PO Box 1014 Online: www.ecoslo.org
San Luis Obispo, CA 93406
Protecting and enhancing the Central Coast since 1971
Coordination & Reporting
To ensure effective implementation, ECOSLO will:
● Provide semi-annual reports in January and July 2027
● Attend quarterly interdepartmental meetings hosted by the City’s Economic Development & Tourism team. These meetings will include representatives from:
○ Urban Forestry
○ Public Works
○ Parks & Recreation
○ Office of Sustainability
○ TBID
Additionally, ECOSLO will be available for briefings, updates, or presentations to TBID upon request.
Overall Program Deliverables (2026–2027)
● Plant approximately 101 new trees in the City of San Luis Obispo ● Maintain trees planted in prior seasons for three years ● Host 5 volunteer-based planting events
● Monthly community updates via newsletter
● Quarterly coordination meetings with City staff
● Biannual reporting on deliverables and metrics
Proposed Compensation
Total Annual Compensation: $42,991
Billing Schedule: $10,747.75 per quarter (billed by ECOSLO, as agreed by City) ECOSLO is a 501(c)(3) not-for-profit, and our Federal Tax ID number is 23-7213237 Page 109 of 159
COMMUNITY PARTNERSHIP AGREEMENT
BETWEEN THE CITY OF SAN LUIS OBISPO AND
THE SAN LUIS OBISPO CLIMATE COALITION
This COMMUNITY PARTNERSHIP AGREEMENT, hereinafter referred to as the Agreement, is made and entered into in the City of San Luis Obispo on _______ by and between the CITY OF SAN LUIS OBISPO, a municipal corporation (hereinafter referred to as “CITY”), and THE SAN LUIS OBISPO CLIMATE COALITION, a California non-profit organization (hereinafter referred to as “SLOCC”). The CITY and SLOCC are individually referred to as a “party” or collectively as the “parties”.
WITNESSETH:
WHEREAS, the CITY and SLOCC have a long-standing public / private partnership where the two entities have engaged in mutually beneficial community projects; and WHEREAS, CITY’s Climate Action Plan action Leadership 3.1.A directs staff to, “Continue to support and empower community collaboration for climate action.”; and WHEREAS, SLOCC has set forth a request for CITY for funding ongoing Climate Action Plan implementation and community education initiatives, and CITY has solicited a proposal from SLOCC for services related to this work; and
WHEREAS, the CITY desires to maintain its long-standing, mutually beneficial relationship between the CITY and SLOCC to advance climate action and climate adaptation goals; and
WHEREAS, the CITY has determined that partnerships with community organizations to provide shared services to the community are of great benefit and SLOCC has expressed a willingness to continue these shared services, in partnership and in cooperation with CITY; and WHEREAS, SLOCC is a 501(c)3 non-profit organization and is uniquely qualified to provide the services contemplated under this Agreement.
NOW THEREFORE, in consideration of their mutual promises, obligations and covenants hereinafter contained, the parties hereto agree as follows:
1. TERM. The duration of this Agreement shall be for a period of approximately three (3) years, commencing on January 1, 2026 and continuing to June 30, 2029 (the “Term”), which may be extended upon the mutual written agreement of the parties.
2. FINANCIAL MANAGEMENT. Initially, the CITY and SLOCC intend to engage in certain activities relating to community education and in connection therewith the parties intend to implement those projects in accordance with the financial terms outlined in Section 2.1, below.
2.1 PAYMENT TO SLOCC. The CITY shall provide funding to SLOCC for certain known project efforts, described below:
A. CITY has requested SLOCC’s services for community education. CITY shall issue a Purchase Order (the “City Purchase Order”) in the amount of $10,000 pursuant to SLOCC’s proposal and scope of work, which shall be incorporated into the City Purchase Order. CITY shall remit payment to SLOCC on a reimbursable basis
upon receipt of quarterly invoices from SLOCC in accordance with the City Purchase Order. The City Purchase Order shall be subject to the mutual approval of CITY and SLOCC.
3. ROLES AND RESPONSIBILITIES. The CITY’s identified community partner liaison may authorize minor modifications from time to time within the scope of their financial and/or operational authority, to the Roles and Responsibilities as they may deem necessary or appropriate to the partnership between the CITY and SLOCC. Any material amendment or modifications to the Roles and Responsibilities shall be upon mutual written consent of both parties, in accordance with paragraph 6, below.
A. SCOPE OF SERVICES
i. Both parties agree to collaborate on Climate Action Plan implementation and community education efforts identified at paragraph 2.1, above. ii. Both parties will consider prospective additional project opportunities as they arise during the Term of this Agreement. Any additional project opportunities that CITY and SLOCC elect to pursue together under this Agreement shall be subject to available funding and staff resources of each of the parties and would be facilitated and administered through an appropriate contractual agreement or purchasing method.Through this Agreement, it is CITY’s express intent to identify SLOCC as a preferred partner and vendor for activities as described herein.
iii. CITY and SLOCC staff will meet and coordinate project administration and implementation on a quarterly or as-needed basis.
B. CITY OBLIGATIONS
i. CITY will be available for quarterly reoccurring meetings, or as needed, with SLOCC during the Term.
ii. CITY shall remit approved payments to SLOCC as outlined and in accordance with the City Purchase Order described above.
iii. CITY shall provide administrative support for its own project management and reporting.
iv. CITY shall coordinate timing and access to CITY’s properties as needed for community education events.
v. CITY will coordinate with SLOCC on any press releases, media, or public communications related to the Scope of Services.
C. SLOCC OBLIGATIONS
i. SLOCC will be available for quarterly reoccurring meetings, or as needed, with CITY during the Term.
ii. SLOCC will dutifully carry out the Scope of Services. iii. SLOCC shall assemble and manage volunteers to complete work contemplated in the Scope of Services.
iv. SLOCC shall submit requests for payment or periodic invoices to CITY as outlined and in accordance with the City Purchase Order described above. v. SLOCC shall provide CITY with an annual report documenting project planning and implementation activity, including summary success metrics, and any observations or lessons learned.
4. COMPLETE AGREEMENT. This written Agreement, including all writings specifically incorporated herein by reference, shall constitute the complete agreement between the
parties hereto. No oral agreement, understanding or representation not reduced to writing and specifically incorporated herein shall be of any force or effect, nor shall any such oral agreement, understanding or representation be binding upon the parties hereto.
5. AGREEMENT TERMINATION. Either party may terminate the Agreement for convenience provided that 30 days written notice is given. The Agreement may be terminated by either party for cause, provided that written notice has been given in the manner specified herein stating the reasons for the intended termination and providing the other party at least 10 days to cure any alleged breach. If the party receiving notice fails or refuses to cure the alleged breach within 10 days, or to make substantial progress toward cure to the satisfaction of the party demanding cure, this Agreement may be terminated 10 days after receipt of the notice as specified herein.
6. AGREEMENT AMENDMENTS. Except as otherwise stated in Section 3 of this Agreement, any amendment, modification or variation from the terms of this Agreement shall be presented in writing by CITY and / or SLOCC and shall be effective only upon final written approval by an authorized representative of each of the parties.
7. INSURANCE AND LIABILITY
A. Each party to this Agreement shall make the other party, its officers, agents, employees and volunteers as separately additionally insured through a CG 20 26 or equivalent, blanket endorsement or section of the policy no later than October 1 of each year. Each party agrees to provide commercial general liability insurance with coverage at least as broad as Insurance Services Office form CG 00-01, in an amount not less than $1,000,000 per occurrence, $2,000,000 general aggregate, for bodily injury, personal injury, and property damage, including without limitation, blanket contractual liability.
B. Each party agrees to provide a minimum liability and property damage insurance coverage of one million dollars ($1,000,000).
C. Each party shall maintain worker’s compensation insurance at a level that is consistent with state law requirements.
8. HOLD HARMLESS AND INDEMNIFICATION
A. CITY agrees to defend, indemnify, protect and hold SLOCC and its agents, officers and employees harmless from and against any and all claims asserted or liability established for damages or injuries to any person or property, including injury to SLOCC’s employees, agents, officers or volunteers, which arise from or are connected with or are caused or claimed to be caused by the acts or omissions of the CITY, and its agents, officers, employees or volunteers, in performing its responsibilities hereunder, and all expenses of investigating and defending against same; provided, however, that the CITY duty to indemnify and hold harmless shall not include any claims or liability arising from the negligence or willful misconduct of SLOCC, its agents, officers, employees or volunteers.
B. SLOCC agrees to defend, indemnify, protect and hold the CITY and its agents, officers and employees harmless from and against any and all claims asserted or liability established for damages or injuries to any person or property, including injury to the CITY employees, agents, officers or volunteers, which arise from or are connected with or are caused or claimed to be caused by the acts or omissions of SLOCC, and its agents, officers, employees or volunteers, in performing its responsibilities hereunder, and all expenses of investigating and defending against same; provided, however, that SLOCC’s duty to indemnify and hold harmless shall not include any
claims or liability arising from the negligence or willful misconduct of the CITY, its agents, officers, employees or volunteers
9. NOTICE. All written notices to the parties hereto shall be sent by USPS Mail, postage prepaid by registered or certified mail addressed as follows:
CITY: City Manager
City of San Luis Obispo
990 Palm St.
San Luis Obispo, CA 93401
SLOCC: Executive Director
San Luis Obispo Climate Coalition
P.O. Box 124
San Luis Obispo, CA 93406
Notices given pursuant to this section shall be deemed effective five (5) calendar days after deposit with USPS Mail. Either party may change its address for notices from time to time by giving written notice of such change in accordance with this section.
11. AUTHORITY TO EXECUTE AGREEMENT. Both CITY and SLOCC do covenant that each individual executing this Agreement on behalf of each party is a person duly authorized and empowered to execute agreements for their party.
IN WITNESS WHEREOF, the parties hereto have caused this instrument to be executed the day and year first above written.
ATTEST: CITY OF SAN LUIS OBISPO:
________________________________ ________________________________ Teresa Purrington Erica Stewart
City Clerk Mayor
APPROVED AS TO FORM: SLO CLIMATE COALITION:
________________________________
J. Christine Dietrick Laura Albers
City Attorney Executive Director
August 24, 2026
Chris Read
Sustainability Manager
Office of Sustainability and Natural Resources
City of San Luis Obispo
990 Palm St.
San Luis Obispo, CA 93401
[email protected]
Re: Funding request for 2026-27 budget cycle
Dear Chris,
Thank you for the ongoing partnership with SLO Climate Coalition in our shared goals to create a climate-resilient San Luis Obispo. We are proud of the many accomplishments we have been part of together over the last several years as we work toward the City’s Climate Action Plan goals, particularly within the Pillars of Clean Energy Systems, Green Buildings, Connected Community, Circular Economy, and Natural Solutions.
In fiscal year 2025-26, SLO Climate Coalition significantly expanded our direct community engagement and climate resilience programming throughout our region.
From July 1, 2025 through June 30, 2026, we conducted:
● 28 tabling events, resulting in 1,203 direct community interactions ● 11 resiliency workshops, engaging 64 community members ● 6 climate action presentations, reaching 235 participants ● 4 canvassing events, resulting in 356 community interactions This work was made possible through partnerships and collaboration with organizations including the City of San Luis Obispo, Cal Poly, College Corps, Promotores, Repair Café, ECOSLO, Sierra Club, Ecologistics, Diversity Coalition, Citizens’ Climate Education, Mujeres de Acción, and many others working toward a healthier and more resilient Central Coast.
Our Home Energy Advising program has also continued to grow, connecting a growing number of San Luis Obispo households with home electrification upgrades, rebates, and incentives. We are also underway on the Home Energy Advising Service Delivery Expansion, a joint venture with the City of San Luis Obispo and CAPSLO funded through the TECH Clean California Quickstart Grant, extending our Home Energy Advising services to manufactured housing communities in the City for the first time.
And on April 18, 2026, we hosted our second SLO EarthFest at Santa Rosa Park — bringing together an estimated 2,000 attendees for a celebration of local climate solutions, resilience, and community action. In alignment with our sustainability values, the event operated with zero plastic bottles and zero diesel or propane generators on site.
Now, in the tumultuous climate of 2026, local leadership and local partnerships matter more than ever. As federal climate progress continues to face uncertainty, our community’s ability to stay focused on practical, local solutions is critical. Partnerships with the City of San Luis Obispo and other climate allies help ensure that this work continues to move forward in meaningful and measurable ways.
We recognize that there are many needs competing for City funds, and we are deeply appreciative of the City’s continued investment in SLO Climate Coalition’s work. In past years, City funding has been tied to signature activations such as EarthFest and National Drive Electric Month; since neither is part of our FY 2026-27 programming, we are proposing instead to direct the City’s support to our core community outreach campaign — the tabling, canvassing, and resiliency workshop programming that forms the backbone of our year-round engagement work.
We are requesting $10,000 from the City of San Luis Obispo to fully fund coordinator staff time, printed materials, and event logistics for the following FY 2026-27 outreach campaign:
Activity (in the CIty of San Luis Obispo) FY 2026-27 Target Community tabling events at farmers’ markets, community fairs, etc. 5 events Neighborhood canvassing campaigns (direct door-to-door outreach in target neighborhoods)
4 events
EV showcases and Ride & Drive events 4 events
Total City of SLO request: $10,000 — fully funding coordinator staff time, printed outreach materials, and event/venue logistics for this campaign.
Expense City of SLO
Staff time $8,000
Printing/outreach materials $1,250
Event/venue logistics (tabling fees, venue rentals, etc.) $750 At the close of FY 2026-27, we will report back to the City with the final tally of events held and community members reached through this specific campaign — giving the City a clear, direct line between its $10,000 investment and the outcomes delivered.
Thank you for your continued commitment to climate leadership and community resilience. We look forward to many more shared successes.
Best,
Laura Albers, M.P.A.
Executive Director
SLO Climate Coalition
[email protected]
805.550.4222
Item 6g
Department: Public Works
Cost Center: 5009
For Agenda of: 9/15/2026
Placement: Consent
Estimated Time: N/A
FROM: Aaron Floyd, Public Works & Utilities Director
Prepared By: Brian Nelson, Deputy Director of Public Works / City Engineer SUBJECT: APPROPRIATE STORM PREPARATION AND RESPONSE FUNDING
RECOMMENDATION
1. Appropriate $1,100,000 in Capital Projects Reserve Funding to the Storm Response and Recovery Project Account to support storm preparation emergency projects; and,
2. Authorize the Finance Director to appropriate state grant funds for storm preparedness infrastructure upgrade and repair projects, pending confirmation of grant award and grant amount (expected to be $1,340,000); and,
3. Authorize the City Manager to execute state grant agreements in a final form approved by the City Engineer and City Attorney; and,
4. Authorize the City Manager to transfer a total aggregate amount not to exceed $500,000 from Completed Projects Funding to the Storm Response and Recovery and/or Storm Drains project accounts to support any unforeseen cost increases or state grant matching requirements associated with the delivery of storm preparedness capital projects; and,
5. Adopt a draft Resolution (Attachment A) entitled, “A Resolution of the City Council of the City of San Luis Obispo, California, Authorizing Appropriation of $1,100,000 from the Capital Projects Reserve Fund, as well as State Water Resources Control Board Grant Funding, to support Storm Preparedness Infrastructure Upgrades and Repairs
REPORT-IN-BRIEF
Recent inspections have identified storm infrastructure deficiencies that could pose increased risks to public and private property during a significant storm event, necessitating the City to advance emergency repairs and other priority storm preparedness projects before the upcoming El Niño storm season. At the same time, the City is expected to receive approximately $1.34 million in State funding to support storm infrastructure upgrades and repairs, providing an opportunity to leverage outside funding to address additional priority needs. Staff recommends appropriating $1.1 million in Capital Projects Reserve funding to advance emergency repairs, appropriating the anticipated State grant funding for eligible storm preparedness projects, and authorizing the City Manager to execute the associated grant agreements. Staff also recommends delegating authority to transfer up to $500,000 from CIP Completed Projects funding to address unforeseen costs or grant matching requirements that may arise as these projects are delivered.
Item 6g
POLICY CONTEXT
The most recent Purchasing Guidelines for Job Order Contracts were approved by Council via Resolution No. 11328 (2022 Series), as part of the 2022 Update to the City’s Financial Management Manual.
The Fund Balance and Reserve Policy, adopted in June 2021, provides guidelines for the Capital Projects Reserve Fund and states:
The City will maintain a committed reserve of 20% of the capital improvement plan budget from the Local Revenue Measure for the purposes of offsetting unanticipated cost increases, unforeseen conditions, and urgent unanticipated projects to provide continued investment in infrastructure maintenance and enhancement. Use and allocations of funds from the Capital Projects Reserve Fund will be made to Capital Projects including Major Facility Replacement upon Council approval as necessary during any fiscal year.
The proposed use of the Capital Projects Reserve Fund to supplement storm preparedness projects is consistent with this policy, as these funds would be utilized for urgent infrastructure maintenance projects.
Section 804 of the City’s Charter States that “…at any meeting after the adoption of the budget, the Council may amend or supplement the budget by motion adopted by a majority vote of the Council”. Staff’s recommendation to appropriate CIP Reserve funds as well as state grant funds (if awarded), are consistent with this Charter Section.
Furthermore, the recommended actions related to the state grant funding are consistent with the City’s Grant Management Policy - Section 740 of the 2025 Financial Management Manual, which states that the City will aggressively pursue grant funding from state and other sources, with a focus on securing grants for capital projects. Due to the quick timeframe required to request grant funding, prior authority to apply for the state grant was not received; therefore, approval of this report also confirms Council’s support for utilizing grant funding, since the grant amount is in excess of $5,000.
DISCUSSION
Background – CIP Reserve Request
Old Garden Creek is a concrete-lined channel extending from Foothill Boulevard to Patricia Drive that was constructed following the 1969 flood. On September 2, 2026, City staff, accompanied by a structural engineer, inspected portions of the channel to evaluate the condition and stability of several retaining walls.
The inspection identified significant deterioration and movement at two locations near Felton Drive and Cuesta Drive. At the Felton Drive location, approximately 115 feet of channel wall is distressed, has separated from the adjacent bridge, and contains failed and fractured CMU blocks. At the Cuesta Drive location, approximately 300 feet of
Item 6g
channel wall is heavily leaning, with fractured reinforcing steel and cracked CMU blocks at the connection to the upstream bridge. Failure of these walls during a significant storm event could obstruct the creek channel and potentially impact six residential properties and utility infrastructure in the surrounding area. These segments of wall were constructed by the City in the early 1970’s and exist within a City-owned drainage easement, meaning the City bears maintenance responsibility and has right of access to the project area to perform any such maintenance.
Photos of Leaning block wall and Site Locations
Based on the observed conditions and consultation with a structural engineer, staff believe the walls are at risk of failure during a significant storm event. Downstream of this location, similar sections of wall experienced failure in January, March, and November 2023 and were repaired as part of the City’s 2023 emergency storm response.
Fortunately, the proposed repairs for the identified segments can utilize a design detail developed for the previous wall failures that occurred, allowing the City to expedite design and construction.
On September 4th, the City Manager approved staff’s recommendation to proceed with the work on the above identified portions of Old Garden Creek under the emergency authority outlined in Municipal Code Section 3.24.060. This will allow for expedited design and construction, provided Council appropriates the funding recommended via this staff report and resolution. Staff anticipate construction could begin in September and be completed within approximately six to eight weeks, subject to contractor availability and site conditions.
The estimated cost of the repairs is approximately $1.1 million. Staff recommends utilizing available CIP Reserve funds in the Storm Response and Recovery Account (Project #2001071) to fund the emergency repairs. Current forecasts indicate an increased likelihood of above-normal precipitation in California during the 2026–27 winter associated with the developing El Niño pattern. Increased rainfall, particularly during
Item 6g
periods of heavier storms, can result in greater runoff and elevated flows and velocities in local creeks and drainage channels, which could further stress the already compromised channel walls and increase the potential for wall failure, channel obstruction, and impacts to adjacent properties and infrastructure. Use of these funds would allow the City to address the identified structural deficiencies before the upcoming storm season and reduce the potential for more extensive damage and associated costs resulting from a wall failure during a major storm event.
Background – State Grant
In May 2026, City staff provided Assemblymember Addis’ office with a list of storm preparation projects that could benefit from State funding in advance of the upcoming El Niño season. The projects submitted by the City included storm drain infrastructure repairs and creek channel maintenance projects totaling approximately $1.34 million.
On September 1, 2026, Assemblymember Addis’ office provided City staff with the draft funding language proposed to be included in the State Budget Act of 2026. The draft legislation appropriates $17.945 million to the State Water Resources Control Board for local assistance and specifically allocates $1.34 million to the City of San Luis Obispo for infrastructure upgrades and repairs.
Public Works & Utilities staff have been informed that the City can expect to receive this funding, with additional information regarding the grant agreement, eligible expenditures, and implementation requirements forthcoming.
The State funding provides an opportunity to offset local costs associated with the City's storm preparation and infrastructure repair efforts. Staff anticipate that the grant funds can be applied toward eligible storm-related projects identified through the City's ongoing evaluation of priority infrastructure needs.
Because the draft grant agreement and funding requirements have not yet been received, staff are currently utilizing available Storm Drain Replacement funds (Project #2090742) to advance the highest-priority work at this time. Once the State funding is formally awarded and available, staff will evaluate eligible expenditures and recommend the appropriate use of budget funds consistent with the grant requirements, with an eye toward replacement of prior budgeted local funding with state grant funding, if that flexibility is allowed by the terms of the grant agreement.
In the event the priority projects exceed existing budgets, including any future state grant funds, staff recommend that the City Manager be delegated authority to transfer up to $500,000 in additional funding from Completed Projects. This would be utilized as contingency to address any unforeseen costs and could be utilized to support the above emergency project on Old Garden Creek or previously planning priority infrastructure upgrades for storm preparedness.
Previous Council or Advisory Body Action
On June 17, 2026, Council adopted the 2025-27 Financial Plan, which included CIP funding for Storm Drain Replacements and Storm Response and Recovery.
Item 6g
Public Engagement
The public will have an opportunity to comment on this item before or after the meeting.
Public impacts related to projects funded by the budget appropriations recommended by this report will be communicated directly to affected property owners and neighborhoods via Public Works staff through door-to-door communication, door hangers, or mailers as necessary to reach to residents expected to be impacted by the work.
CONCURRENCE
City Administration and the Public Works & Utilities Department concur with the recommendations of this report.
ENVIRONMENTAL REVIEW
The California Environmental Quality Act does not apply to the funding and appropriation requests of this report because the actions do not constitute a “Project” under CEQA Guidelines Section 15378.
The infrastructure maintenance and repair projects planned for emergency preparedness, funded by the newly appropriated funding, would qualify for an Exemption to the California Environmental Quality Act pursuant to State CEQA Guidelines Sections 15301 (Existing Facilities) because the projects consist of the repair and maintenance of storm drainage, culverts, drainage channels, creeks, and roadways. A Notice of Exemption will be filed through the Community Development Department upon prior to construction of each project.
FISCAL IMPACT
Budgeted: Yes Budget Year: 2026-27
Funding Identified: Yes
Fiscal Analysis:
Funding
Sources
Total Budget
Available
Current
Funding
Request
Remaining
Balance
Annual
Ongoing
Cost
General Fund:
Completed
Projects
$500,000 $500,000 $0 $
General Fund
Storm Drains
$931,172 $931,172 $0
General Fund
CIP Reserve
$2,212,229 $1,100,000 $1,112,229
State $1,340,000 $1,340,000 $0
Federal
Fees
Total $4,983,401 $3,871,172 $1,112,229 $
Item 6g
The CIP Reserve has a current balance of $2,212,229. Following appropriation of $1.1 Million in reserve funds to the Storm Response and Recovery Account, the CIP Reserve will have a balance of $1,112,229. The Storm Response and Recovery Account (#2001071) currently does not have any existing funding identified for new emergency projects, and appropriation of CIP Reserve funds would create a new subproject for emergency repairs to the Old Garden Creek channel.
The Storm Drains account (#2090742) currently has an available balance of $931,172.
Following appropriation of the state grant, the project will have an available balance of $2,271,172. This total amount is currently expected to be sufficient to address preplanned Storm Drain maintenance work, as wells as newly emergent storm preparedness projects, including creek embankment repair at Almond/Center Streets, and a culvert repair at Patricia Drive.
It should be noted that the expected project costs are based upon the best available estimates from similar work, no bids or costs from contractors have yet been received.
Should the above account totals be insufficient to address unforeseen conditions during execution of construction projects, or the grant award come with matching requirements, $442,881 is currently available in Completed Projects (inclusive of both General Capital Outlay and Local Revenue Measure funds) to support these additional cost increases.
That amount will exceed $500,000 following close out of the Mission Plaza Enhancements project, which is expected in the Fall.
ALTERNATIVES
1. Do not appropriate CIP Reserve Funds or a reduced amount of CIP Reserve.
This would delay the emergency project, increasing risks to the public and private property, and potentially result in increased project costs related to delaying the City's ability to address the identified need. This would likely require the City to identify additional local funding to proceed, potentially impacting other previously planned and budgeted capital projects.
2. Do not appropriate the grant funds (if awarded). Declining the grant would result in the loss of outside funding that could otherwise be used to advance previously identified projects, limiting the City’s ability to quickly address preplanned projects and emergent infrastructure needs as the winter season approaches.
ATTACHMENTS
A - Draft Resolution Appropriating Funds for Storm Preparedness Infrastructure Upgrades and Repairs
R ______
RESOLUTION NO. _____ (2026 SERIES)
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS
OBISPO, CALIFORNIA, AUTHORIZING APPROPRIATION OF
$1,100,000 FROM THE CAPITAL PROJECTS RESERVE FUND, AS
WELL AS STATE WATER RESOURCE CONTROL BOARD GRANT
FUNDING, TO SUPPORT STORM PREPAREDNESS
INFRASTRUCTURE UPGRADES AND REPAIRS
WHEREAS, the City of San Luis Obispo maintains storm drainage infrastructure, creek channels, culverts, and related facilities that are subject to damage and deterioration over time, and as a result are subject to failure during significant storm events; and
WHEREAS, recent inspections identified deteriorated and unstable storm infrastructure conditions that could pose risks to public and private property during a significant storm event and require emergency repairs prior to the upcoming storm season; and,
WHEREAS, the City has identified additional priority storm preparedness infrastructure upgrades and repairs that would improve the City's ability to prepare for and mitigate risk from future storm events; and,
WHEREAS, the City's Fund Balance and Reserve Policy provides for the use of the Capital Projects Reserve Fund for urgent and unanticipated infrastructure maintenance and projects; and,
WHEREAS, the City anticipates receiving approximately $1,340,000 in State Water Resources Control Board grant funding for storm preparedness infrastructure upgrades and repairs, subject to final grant award, agreement, and eligibility requirements; and
WHEREAS, appropriation of the anticipated State grant funding will allow the City to leverage outside funding to advance eligible storm preparedness projects and address priority infrastructure needs
NOW, THEREFORE, BE IT RESOLVED by the Council of the City of San Luis Obispo as follows:
SECTION 1. The City Council authorizes the appropriation of $1,100,000 from the Capital Projects Reserve Fund to the Storm Response and Recover Project Account.
SECTION 2. Upon receipt of the State Water Resources Control Board grant award, the associated grant funds, currently anticipated to be approximately $1,340,000, are hereby authorized for appropriation to the appropriate project account(s) to support eligible storm preparedness infrastructure upgrades and repairs in accordance with the terms and conditions of the grant agreement.
Resolution No. _____ (202X Series) Page 2
R ______
SECTION 3. The City Council authorizes the City Manager to execute state grant agreements for any grants referred to in Section 2 for storm preparedness projects.
Upon motion of Council Member ___________, seconded by Council Member ___________, and on the following roll call vote:
AYES:
NOES:
ABSENT:
The foregoing resolution was adopted this _____ day of _______________ 2026. ___________________________
Mayor Erica A. Stewart
ATTEST:
______________________
Teresa Purrington
City Clerk
APPROVED AS TO FORM:
______________________
J. Christine Dietrick
City Attorney
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of San Luis Obispo, California, on ______________________. ___________________________
Teresa Purrington
City Clerk
City of San Luis Obispo, Council Memorandum
City of San Luis Obispo
Council Agenda Correspondence
DATE: September 15, 2026
TO: Mayor and Council
FROM: Randy Harris, Fire Chief
Prepared By: Nicole Vert, Business Analyst
VIA: Whitney McDonald, City Manager
SUBJECT: ITEM #6h – SUPPORT FOR THE CITY OF PASO ROBLES BID ON THE
SAN LUIS OBISPO COUNTY AMBULANCE SERVICES CONTRACT
Staff received the following questions regarding Item #6h on the agenda for the September 15th, 2026 City Council meeting. The questions are below with staff’s response shown in italics:
1) When the RFP goes live, is it possible that the Alliance model’s selected vendor could also apply for the ambulance contract themselves directly? Is there any potential for conflict here?
No, the vendor is under a contractual agreement not to compete against the Alliance partnership. If the Alliance chooses not to bid on the ambulance RFP, then the vendor would be released from the agreement.
2) What if, due to changes at the national level, the Alliance model becomes not as lucrative as originally thought? What happens if we go forward with the Alliance model, “win” the contract, and the revenue is not what we anticipated? Could cities be left in a bad situation with not enough funding to run the system?
The Alliance model does not require federal subsidies (PP-GEMT or other funding subsidies) to be financially sustainable. Similar to the existing private transport model, the newly selected ambulance provider would be able to adjust their rates to cover their operational costs. One important point to note is that federal subsidies are estimated to only apply to a small percentage of transports in SLO County. While existing federal subsidies would provide additional revenue to the Alliance model than would be available to the current private contractor model and therefore provide additional funding for investments in enhanced levels of service to the community, the subsidies would not be necessary for the Alliance model to work. However, it is anticipated that participating cities would loan start-up funding under the terms of a Memorandum of Understanding, and the loss of federal subsidies may mean that it would take longer for the cities start-up loans to be repaid.
ITEM #6h – SUPPORT FOR THE CITY OF PASO ROBLES BID ON THE SAN LUIS OBISPO COUNTY AMBULANCE SERVICES CONTRACT Page 2
Additional information regarding this issue is provided in the attached letter received from the Fire Chiefs’ Association of San Luis Obispo County dated September 14, 2026. (Attachment A.)
3) Will there be a cost to the city of joining the alliance model? One time or ongoing?
Yes, although until the RFP is released and the requirements are known, it would be premature to make any fiscal assumptions. The costs are projected to be “one time” start-up costs to cover operating expenses (for approximately the first six months) until payments from patient billing are received. 4) What are the potential downsides, if any, to going forward with the Alliance model?
The potential downsides for the Alliance model are similar to those that exist today for the private provider. Any increases in operational costs such as fuel, equipment, salaries, or insurance would have an impact. Additionally, any state or federal regulatory changes or a decrease in transports could impact revenue.
The RFP is anticipated to allow adjustments in rates to cover these future financial liabilities. That is the same allowance that the private provider currently has in their contract. Fortunately, with increased efficiencies, oversight and transparency, the Alliance model is better positioned to make critical system improvements.
In addition, due to the recent decision by the City of Morro Bay to not adopt a support resolution for the City of Paso Robles, staff have revised the proposed resolution accordingly. (Attachment B) The proposed changes are as follows:
WHEREAS, the seven city managers representing the six incorporated cities of San Luis Obispo County, as well as the San Luis Obispo County Fire Chiefs Association, have unanimously endorsed and expressed support for the City of Paso Robles submitting a bid for the County ambulance services contract; and
ATTACHMENTS
A – Letter from Fire Chief’s Association of San Luis Obispo B – Updated Draft Resolution supporting the City of Paso Robles in submitting a bid for the County of San Luis Obispo’s ambulance services
R ______
RESOLUTION NO. _____ (2026 SERIES)
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS
OBISPO, CALIFORNIA, SUPPORTING THE CITY OF PASO ROBLES IN SUBMITTING A BID FOR THE COUNTY OF SAN LUIS OBISPO’S
AMBULANCE SERVICES CONTRACT
WHEREAS, the City Council of the City of San Luis Obispo controls, through statutory authority and policy, the provision of fire suppression, emergency medical services (EMS), hazardous materials mitigation, and rescue operations within its jurisdictional boundaries; and
WHEREAS, pursuant to Health & Safety Code § 1797.201, the San Luis Obispo County Board of Supervisors holds authority over the regulation and contracting of ambulance transport services within San Luis Obispo County; and WHEREAS, the current opportunity to bid for the County of San Luis Obispo’s ambulance services contract allows for significant improvements to the ambulance transport system through a more dynamic community-based model; and WHEREAS, the City of San Luis Obispo City Council supports an enhanced ambulance transport system that is robust, transparent, accountable, and which reinvests revenues back into local communities after expenses to support proactive programs addressing mental health, substance abuse, and the needs of unhoused community members; and
WHEREAS, the city managers representing six incorporated cities in San Luis Obispo County, as well as the San Luis Obispo County Fire Chiefs Association, have endorsed and expressed support for the City of Paso Robles submitting a bid for the County ambulance services contract; and
WHEREAS, a Paso Robles-led model would foster strong local partnerships, accountability, and transparency, as well as encourage collaborative governance across jurisdictions that directly benefit all communities within San Luis Obispo County, including the City of San Luis Obispo; and
WHEREAS, the City Council believes that this approach offers an opportunity to build an EMS system that is more responsive to community needs and better aligned with modern public safety practices, while ensuring that revenues are invested back into the people and services of San Luis Obispo County;
NOW, THEREFORE, BE IT RESOLVED by the Council of the City of San Luis Obispo as follows/or that:
SECTION 1. The City Council of the City of San Luis Obispo hereby expresses its strong support for the City of Paso Robles to submit a bid for the County of San Luis Obispo’s ambulance services contract.
Resolution No. _____ (2026 Series) Page 2
R ______
SECTION 2. The City Council further supports the pursuit of a comprehensive, transparent, and accountable EMS system that prioritizes community needs, reinvests revenues locally, and provides sustainable funding for EMS-related and preventative public health programs.
SECTION 3. The City Council encourages the San Luis Obispo County Board of Supervisors and all relevant decision-makers to give favorable consideration to this model, which will yield direct and meaningful benefits to residents of San Luis Obispo and all communities throughout the County.
Upon motion of Council Member ___________, seconded by Council Member ___________, and on the following roll call vote:
AYES:
NOES:
ABSENT:
The foregoing resolution was adopted this _____ day of _______________ 2026. ___________________________
Mayor Erica A. Stewart
ATTEST:
______________________
Teresa Purrington
City Clerk
APPROVED AS TO FORM:
______________________
J. Christine Dietrick
City Attorney
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of San Luis Obispo, California, on ______________________. ___________________________
Teresa Purrington
City Clerk
Item 6h
Department: Fire
Cost Center: 8502
For Agenda of: 9/15/2026
Placement: Business
Estimated Time: 30 Minutes
FROM: Randy Harris, Fire Chief
Prepared By: Nicole Vert, Business Analyst
SUBJECT: SUPPORT FOR THE CITY OF PASO ROBLES SUBMISSION OF A BID
ON THE SAN LUIS OBISPO COUNTY AMBULANCE SERVICES
CONTRACT
RECOMMENDATION
Adopt a draft Resolution (Attachment A) entitled “A Resolution of the City Council of San Luis Obispo, California, Supporting the City of Paso Robles in Submitting a Bid for the County of San Luis Obispo’s Ambulance Services Contract.”
POLICY CONTEXT
The San Luis Obispo County Board of Supervisors holds the statutory authority to contract for ambulance services within the County pursuant to the State Emergency Medical Services (EMS) Act. The EMS Act gives the County the authority to establish and competitively procure an Exclusive Operating Area (EOA) for emergency ambulance transportation, while preserving the authority of cities and fire districts that were providing or contracting for prehospital emergency medical services as of June 1, 1980, to continue administering those prehospital EMS services pursuant to Health & Safety Code § 1797.201.
DISCUSSION
The City of San Luis Obispo, through the Fire Department, is responsible for providing fire, EMS first-response, hazardous materials mitigation, and rescue operations within the City’s jurisdictional boundary. However, ambulance transport services are contracted through the County. Emergency ambulance transport services in San Luis Obispo County are a critical component of the county's emergency medical services system, providing 911 medical response and patient transport to hospitals throughout the region. The system serves a geographically diverse area that includes urban, suburban, rural, and remote communities, requiring close coordination among ambulance providers, fire agencies, dispatch centers, hospitals, and the County EMS Agency to ensure timely and effective emergency medical care. In this model, the County establishes the requirements for the ambulance service, oversees the provider, sets performance standards, and manages the contractual relationship with the ambulance provider.
Item 6h
In 2025, the County completed an Emergency Medical Services (EMS) System Assessment that evaluated the existing ambulance service delivery model and identified opportunities to enhance system performance, accountability, and long-term sustainability. One of the primary recommendations of the assessment was the implementation of a competitive Request for Proposals (RFP) process for emergency ground ambulance services to evaluate potential service delivery models and ensure the system continues to meet community needs.
In response to the assessment findings, the County is preparing to release a competitive process to award the ambulance services contract, which represents a critical opportunity to modernize and improve EMS delivery countywide. The City of Paso Robles has stated its intent to submit a proposal in response to the EMS RFP that would provide countywide ambulance services through a subcontract with a private vendor and with shared oversight and governance by the other cities in the county. This “public-private partnership” approach, with oversight by the participating cities, is referred to an “Alliance” model. This model combines the strengths of public agencies to subcontract with a private ambulance provider under one coordinated system.
Resolution 25-101 – Resolution of the City Council of the City of El Paso De Robles Authorizing Participation in the San Luis Obispo County Ambulance Services Request for Proposal (RFP) and Authorizing the City Manager to Execute an Agreement with AP Triton for Associated Consulting Services
To implement this system, the City of Paso Robles will serve as the contracting agency, with the participating municipalities entering into a Memorandum of Understanding (MOU) outlining the management and governance of the system, which will include oversight provided by a committee consisting of the city managers from the participating cities.
Under this updated model the ambulance service would remain a private company who would continue ambulance operations and hiring of crews. The cities will work together to establish expectations for the ambulance service and oversee the private provider.
Paso Robles will manage administration of the RFP process, including coordination of consultant services and invoice management on behalf of participating agencies. Paso Robles is taking the lead due to its active role in exploring potential participation in ambulance transport service delivery and its interest in evaluating alternative service models through the RFP process.
This proposal would allow the cities and fire departments to have a greater say in how the ambulance service operates without requiring the cities to operate the ambulance service themselves, resulting in increased transparency and accountability.
The Paso Robles-led model will:
Provide an innovative EMS delivery model where the City of Paso Robles serves as the lead agency, subcontracting to a private ambulance provider, with oversight provided by an executive committee made up of the participating cities’ City Managers ensuring transparency and accountability.
Item 6h
Enhance service delivery with greater local involvement and oversight. Provide additional funding for EMS-centric programs and allow reinvestment into City EMS services.
Foster regional cooperation by uniting the cities, community service districts, and fire agencies in a shared vision for EMS improvement.
Support proactive and preventative programs addressing mental health, substance abuse, and services for unhoused community members. Reinvest excess revenues after operational costs back into local communities to improve public health outcomes.
As Paso Robles prepares to respond to the anticipated RFP, the proposed resolution will express the City’s support for this effort. By adopting this resolution, the San Luis Obispo City Council would be supporting an opportunity for enhanced ambulance services and a more sustainable EMS system that is responsive to the evolving needs of the community.
Previous Council or Advisory Body Action
There is no previous Council or Advisory Body Action related to the proposed resolution.
Public Engagement
This item is on the agenda for the September 15, 2026, City Council meeting and will follow all required postings and notifications. Public comment on this item can be provided to the City Council through written correspondence prior to the meeting and through public testimony at the meeting. This report will be posted seven days in advance of the meeting.
CONCURRENCE
The seven incorporated cities’ City Managers and the San Luis Obispo County Fire Chiefs Association have unanimously expressed their support for the City of Paso Robles, acting as the Lead Agency, to submit a bid for the County ambulance services contract.
ENVIRONMENTAL REVIEW
The California Environmental Quality Act does not apply to the recommended action in this report, because the action does not constitute a “Project” under CEQA Guidelines Sec. 15378.
FISCAL IMPACT
Budgeted: No Budget Year: 2026-27
Funding Identified: No
Item 6h
Fiscal Analysis:
Funding
Sources
Total Budget
Available
Current
Funding
Request
Remaining
Balance
Annual
Ongoing
Cost
General Fund $ N/A $ $ $
State
Federal
Fees
Other:
Total $ N/A $0 $0 $0
There is no fiscal impact to the City from the adoption of this resolution. Should the proposal submitted by Paso Robles be selected, the participating cities would provide start-up funding until reimbursements from Medicare, insurance, and self-pay revenues are received and the start-up funding is repaid to the cities. The estimated cost to the participating cities depends on details ultimately contained in the County’s RFP.
ALTERNATIVES
1. Modify the draft Resolution. If Council pursues this option, staff would request clear direction on the changes and intended direction.
2. Decline to adopt the Resolution. Declining to adopt the proposed Resolution may weaken the Alliance and, if direction is provided to ultimately decline to join the Alliance, the City would be excluded from the oversight committee, thereby reducing the City’s potential influence in regional emergency medical transport services.
ATTACHMENTS
A – Draft Resolution supporting the City of Paso Robles in submitting a bid for the County of San Luis Obispo’s ambulance services
R ______
RESOLUTION NO. _____ (2026 SERIES)
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS
OBISPO, CALIFORNIA, SUPPORTING THE CITY OF PASO ROBLES IN SUBMITTING A BID FOR THE COUNTY OF SAN LUIS OBISPO’S
AMBULANCE SERVICES CONTRACT
WHEREAS, the City Council of the City of San Luis Obispo controls, through statutory authority and policy, the provision of fire suppression, emergency medical services (EMS), hazardous materials mitigation, and rescue operations within its jurisdictional boundaries; and
WHEREAS, pursuant to Health & Safety Code § 1797.201, the San Luis Obispo County Board of Supervisors holds authority over the regulation and contracting of ambulance transport services within San Luis Obispo County; and WHEREAS, the current opportunity to bid for the County of San Luis Obispo’s ambulance services contract allows for significant improvements to the ambulance transport system through a more dynamic community-based model; and WHEREAS, the City of San Luis Obispo City Council supports an enhanced ambulance transport system that is robust, transparent, accountable, and which reinvests revenues back into local communities after expenses to support proactive programs addressing mental health, substance abuse, and the needs of unhoused community members; and
WHEREAS, the seven city managers representing the incorporated cities of San Luis Obispo County, as well as the San Luis Obispo County Fire Chiefs Association, have unanimously endorsed and expressed support for the City of Paso Robles submitting a bid for the County ambulance services contract; and
WHEREAS, a Paso Robles-led model would foster strong local partnerships, accountability, and transparency, as well as encourage collaborative governance across jurisdictions that directly benefit all communities within San Luis Obispo County, including the City of San Luis Obispo; and
WHEREAS, the City Council believes that this approach offers an opportunity to build an EMS system that is more responsive to community needs and better aligned with modern public safety practices, while ensuring that revenues are invested back into the people and services of San Luis Obispo County;
NOW, THEREFORE, BE IT RESOLVED by the Council of the City of San Luis Obispo as follows/or that:
SECTION 1. The City Council of the City of San Luis Obispo hereby expresses its strong support for the City of Paso Robles to submit a bid for the County of San Luis Obispo’s ambulance services contract.
Resolution No. _____ (2026 Series) Page 2
R ______
SECTION 2. The City Council further supports the pursuit of a comprehensive, transparent, and accountable EMS system that prioritizes community needs, reinvests revenues locally, and provides sustainable funding for EMS-related and preventative public health programs.
SECTION 3. The City Council encourages the San Luis Obispo County Board of Supervisors and all relevant decision-makers to give favorable consideration to this model, which will yield direct and meaningful benefits to residents of San Luis Obispo and all communities throughout the County.
Upon motion of Council Member ___________, seconded by Council Member ___________, and on the following roll call vote:
AYES:
NOES:
ABSENT:
The foregoing resolution was adopted this _____ day of _______________ 2026. ___________________________
Mayor Erica A. Stewart
ATTEST:
______________________
Teresa Purrington
City Clerk
APPROVED AS TO FORM:
______________________
J. Christine Dietrick
City Attorney
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of San Luis Obispo, California, on ______________________. ___________________________
Teresa Purrington
City Clerk
City of San Luis Obispo, Council Memorandum
City of San Luis Obispo
Council Agenda Correspondence
DATE: September 15, 2026
TO: Mayor and Council
FROM: Timmi Tway, Community Development Director
Prepared By: David Amini, Housing Coordinator
VIA: Whitney McDonald, City Manager
SUBJECT: ITEM #7a. - TAX EQUITY AND FISCAL RESPONSIBILITY ACT (TEFRA)
HEARING REGARDING THE ISSUANCE OF A TAX-EXEMPT DEBT
OBLIGATION TO FINANCE CONSTRUCTION OF 60 AFFORDABLE
HOUSING UNITS FOR SENDERO APARTMENTS LOCATED AT 165
CESSNA COURT
Staff received the following question regarding the tax-exempt bond financing. The questions are below with staff’s response shown in italics:
1) Does the $14,000 issuance fee mentioned on the last page of the staff report go straight into the general fund usually or do we historically set it aside for affordable housing or something related?
The City’s attributable portion of the California’s Municipal Finance Authority’s issuance fee, estimated to be $14,000, will be deposited into the City’s Affordable Housing Fund (AHF) during the project’s financial closing, currently scheduled for October. Revenue received in the Affordable Housing Fund is used to support the City’s housing goals, policies, and programs, primarily through awarding loans to new affordable housing projects. All AHF loans are approved by Council.
Item 7a
Department: Community Development
Cost Center: 4003
For Agenda of: 9/15/2026
Placement: Public Hearing
Estimated Time: 15 mins
FROM: Timmi Tway, Community Development Director
Prepared By: David Amini, Housing Coordinator
SUBJECT: TAX EQUITY AND FISCAL RESPONSIBILITY ACT (TEFRA) HEARING
REGARDING THE ISSUANCE OF A TAX-EXEMPT DEBT OBLIGATION
TO FINANCE CONSTRUCTION OF 60 AFFORDABLE HOUSING UNITS
FOR SENDERO APARTMENTS LOCATED AT 165 CESSNA COURT
RECOMMENDATION
1. Conduct a public hearing under the Tax Equity and Fiscal Responsibility Act (“TEFRA”) of 1982 and pursuant to the requirements of the Internal Revenue Code of 1986 (the “Code”); and
2. Adopt a draft Resolution entitled, “A Resolution of the City Council of the City of San Luis Obispo, California, approving the issuance of Revenue Bonds by the California Municipal Finance Authority in an aggregate principal amount not to exceed $15,000,000 for the purpose of financing or refinancing the acquisition, construction, improvement, and equipping of Sendero Apartments and certain other matters relating thereto” allowing the issuance of Bonds by the California Municipal Finance Authority (“CMFA”) for the benefit of C&C Development Co., LLC (the “Sponsor”), on behalf of Avila Ranch, L.P., a California limited partnership, or an ownership entity to be created by the Sponsor or an affiliate of the Sponsor (such limited partnership or other ownership entity, the “Borrower”), to provide for the financing of Sendero Apartments (the “Project”); such adoption is solely for the purposes of satisfying the requirements of TEFRA, the Code, and California Government Code Section 6500, et seq.
POLICY CONTEXT
The Avila Ranch project consists of 720 residential units under construction, including 75 units of below market rate affordable housing. As part of the Avila Ranch Development Agreement and the Phase 3 Affordable Housing Agreement, the developer was required to dedicate Lot 186 to an affordable housing provider to construct and manage a 60-unit affordable rental housing development known as Sendero Apartments. The lot was dedicated to Avila Ranch, L.P., a California limited partnership consisting of Orange Housing Development Corporation and C&C Development Co, LLC as its developer general partner. C&C Development applied for and received about $35 million in funding towards the project, including $1,721,964 in annual federal tax credits, $9,934,000 in total
Item 7a
state tax credits, and tax-exempt bond financing up to $15,000,000. The tax-exempt bond financing is administered by the California Municipal Finance Authority.
Section 147(f) of the Internal Revenue Code requires public approval for private activity bonds, such as the tax-exempt bond financing administered by CMFA. Per this section, the City is the applicable governmental unit having jurisdiction over the area of the development and must hold a public hearing to provide an opportunity for community members to speak in favor of or against the use of tax-exempt bonds for the financing of the Project. At the close of the hearing, the City is required to provide approval of the issuance of the Bonds by CMFA for the financing of the Project to proceed. The City is not the entity ultimately issuing or recieving the bond financing.
DISCUSSION
Background
The Sendero Apartments is funded through a variety of sources, including tax credits and tax-exempt bonds administered by CMFA. Avila Ranch, L.P. (the “Borrower”) requested that the CMFA serve as the municipal issuer of the bonds in an aggregate principal amount not to exceed $15,000,000 of tax-exempt revenue bonds (the “Bonds”). The proceeds of the Bonds will be used to finance the acquisition, development, construction, and equipping of a 60-unit affordable rental housing facility for low-income households to be owned and operated by the Borrower and located at 165 Cessna Court in the City of San Luis Obispo, California (the “Project”). This public hearing is a step that is required by section 147(f) of the Internal Revenue Code for CMFA to issue the bonds to the project.
City Council Public Hearing and Action
The City Council, as the applicable governmental unit per the requirements of section 147(f) of the Internal Revenue Code, must hold a public hearing to provide an opportunity for community members to speak in favor of or against the use of tax-exempt bonds for the financing of the Project.
Prior to such TEFRA Hearing, reasonable notice must be provided to community members to give the opportunity to speak in favor of or against the use of tax-exempt bonds for the project. Following the close of the TEFRA Hearing, an “applicable elected representative” of the governmental unit hosting the Project must provide its approval in order for the issuance of the Bonds for the financing of the Project to proceed. The City’s “applicable elected representative” is the City Council. (26 U.S.C. 147(f)(2)(E).) This public hearing and notices of the public hearing satisfy all the above requirements.
Staff recommends Council approval of the issuance of tax-exempt bond financing due to the fact that the Sendero Apartments will assist the City in meeting its Regional Housing Needs Assessment (RHNA) obligations, will provide much needed deed-restricted housing to low-income and below households, and is a major component of the affordable housing provided in the Avila Ranch area.
Item 7a
Previous Council or Advisory Body Action
On October 3, 2017, City Council approved Ordinance 1639 approving the Development Agreement between the City of San Luis Obispo and Avila Ranch LLC. On January 23, 2024, City Council approved the final map for Avila Ranch Phase 2 and 3, including the Phase 3 Affordable Housing Agreement requiring the dedication of the Sendero Apartments property (Resolution). On February 14, 2024, the Planning Commission reviewed the multi-family, high density residential (R-4) component in Phase 3 of the Avila Ranch Development Plan, including the 60-unit Sendero Project (Agenda Packet). The Planning Commission found the Project consistent with applicable City planning regulations and approved the Project (Resolution).
Public Engagement
This item is on the agenda for the September 15, 2026, City Council meeting and will follow all the required posting and notification standards. Public comment on the item can be provided to the City Council through written correspondence prior to the meeting and through public testimony at the meeting. A TEFRA Hearing Public Notice was published in the New Times and on the City’s website.
CONCURRENCE
The City Finance Department has reviewed and concurs with staff’s recommendation.
ENVIRONMENTAL REVIEW
The adoption of the Resolution approving the issuance of the Bonds is exempt from environmental review per Section 15061(b)(3) of the California Environmental Quality Act because the proposed action is in regard to the financing of an affordable housing project that has previously been reviewed for environmental compliance, and it can be seen with certainty that there is no possibility that the issuance of the Bonds will have a significant effect on the environment beyond those effects which have previously been studied.
FISCAL IMPACT
Budgeted: N/A Budget Year: 2026-27
Funding Identified: N/A
Fiscal Analysis:
Funding
Sources
Total Budget
Available
Current
Funding
Request
Remaining
Balance
Annual
Ongoing
Cost
General Fund $ $ $ $
State
Item 7a
Federal
Fees
Other:
Total $0 $0 $0 $0
There is no direct fiscal impact to the City related to this item.
The Bonds to be issued by the CMFA for the Project will be the sole responsibility of the Borrower (Avila Ranch, L.P.), and the City will have no financial, legal, or other obligation, liability or responsibility for the Project or the repayment of the Bonds for the financing of the Project. All financing documents with respect to the issuance of the Bonds will contain clear disclaimers that the Bonds are not obligations of the City or the State of California and are to be paid solely from funds provided by the Borrower.
The Board of Directors of the California Foundation for Stronger Communities, a California non-profit public benefit corporation (the “Foundation”), acts as the Board of Directors for the CMFA. Through its conduit issuance activities, the CMFA shares a portion of the issuance fees it receives with its member communities and donates a portion of these issuance fees to the Foundation for the support of local charities. With respect to the City of San Luis Obispo, it is expected that $14,000 of the issuance fee attributable to the City will be granted by the CMFA to the General Fund of the City. Such grant may be used for any lawful purpose of the City, including but not limited to the costs of holding the public hearing. The City can choose whether to receive the issuance fee.
The final issuance fee will be distributed to the City as part of the project’s financial closing, currently scheduled for October.
ALTERNATIVES
1. Do not approve the issuance of bonds by CMFA. All necessary entitlements, as well as the City impact fee deferral loan commitment, have previously been approved by the City and the Project will close escrow shortly. The City has no liability to repay the bond and this approval is merely a statutory requirement, without which the bonds cannot issue. Bond funding is critical to construction of the Project, which is scheduled to commence in October.
2. Defer consideration of the request. Continuance of the request would mean that CMFA would not be able to issue the tax-exempt bonds towards the Sendero Apartments project, which is a critical portion of the project’s financing necessary to commence construction in October.
ATTACHMENTS
A - Draft Resolution approving the Issuance of Tax-Exempt Revenue Bonds by CMFA
R ______
RESOLUTION NO. _____ (2026 SERIES)
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS
OBISPO, CALIFORNIA, APPROVING THE ISSUANCE OF REVENUE
BONDS BY THE CALIFORNIA MUNICIPAL FINANCE AUTHORITY IN
AN AGGREGATE PRINCIPAL AMOUNT NOT TO EXCEED $15,000,000
FOR THE PURPOSE OF FINANCING OR REFINANCING THE
ACQUISITION, CONSTRUCTION, IMPROVEMENT AND EQUIPPING OF
SENDERO APARTMENTS AND CERTAIN OTHER MATTERS
RELATING THERETO
WHEREAS, Avila Ranch LP (the “Borrower”) a partnership of which C&C Development Co., LLC (the “Developer”) or a related person to the Developer is the general partner, has requested that the California Municipal Finance Authority (the “Authority”) adopt a plan of financing providing for the issuance of exempt facility bonds for a qualified residential rental project pursuant to Section 142(a)(7) of the Internal Revenue Code of 1986 (the “Code”) in one or more series issued from time to time, including bonds issued to refund such exempt facility bonds in one or more series from time to time, and at no time to exceed $15,000,000 in aggregate principal amount (the “Bonds”), to finance or refinance the acquisition, construction, improvement and equipping of a multifamily rental housing project located at 165 Cessna Court, San Luis Obispo, California (the “Project”); and
WHEREAS, pursuant to Section 147(f) of the Code, the issuance of the Bonds by the Authority must be approved by the City of San Luis Obispo (the “City”) in order to proceed, because the Project is located within the territorial limits of the City; and WHEREAS, the City Council of the City (the “City Council”) is the applicable elected representative to approve the issuance of the Bonds under Section 147(f) of the Code; and
WHEREAS, the City’s approval of the issuance of the bonds is a statutory requirement and does not impose upon the City any legal or financial obligation to repay the bonds; and
WHEREAS, the Authority has requested that the City Council approve the issuance of the Bonds by the Authority in order to satisfy the public approval requirement of Section 147(f) of the Code and the requirements of Section 4 of the Joint Exercise of Powers Agreement Relating to the California Municipal Finance Authority, dated as of January 1, 2004 (the “Agreement”), among certain local agencies, including the City; and WHEREAS, pursuant to Section 147(f) of the Code, the City Council has, following notice duly given, held a public hearing regarding the issuance of the Bonds, and now desires to approve the issuance of the Bonds by the Authority.
Resolution No. _____ (2026 Series) Page 2
R ______
NOW, THEREFORE, BE IT RESOLVED by the Council of the City of San Luis Obispo as follows:
SECTION 1. The foregoing recitals are true and correct.
SECTION 2. The City Council hereby approves the issuance of the Bonds by the Authority. It is the purpose and intent of the City Council that this resolution constitute approval of the issuance of the Bonds by the Authority, for the purposes of (a) Section 147(f) of the Code by the applicable elected representative of the governmental unit having jurisdiction over the area in which the Project is located, in accordance with said Section 147(f) and (b) Section 4 of the Agreement.
SECTION 3. The issuance of the Bonds shall be subject to the approval of the Authority of all financing documents relating thereto to which the Authority is a party. The City shall have no financial, legal, or other responsibility or liability whatsoever with respect to the Bonds.
SECTION 4. The adoption of this Resolution shall not obligate the City or any department thereof to (i) provide any financing to acquire or construct the Project or any refinancing of the Project; (ii) approve any application or request for or take any other action in connection with any planning approval, permit or other action necessary for the acquisition, construction, rehabilitation, installation or operation of the Project; (iii) construct the Project or any component thereof, in whole or in part; (iv) make any contribution or advance any funds whatsoever to the Authority; or (v) take any further action with respect to the Authority or its membership therein.
SECTION 5. The officers of the City are hereby authorized and directed, jointly and severally, to do any and all things and to execute and deliver any and all documents which they deem necessary or advisable in order to carry out, give effect to and comply with the terms and intent of this resolution and the financing transaction approved hereby.
SECTION 6. This resolution shall take effect immediately upon its adoption.
Upon motion of Council Member ___________, seconded by Council Member ___________, and on the following roll call vote:
AYES:
NOES:
ABSENT:
The foregoing resolution was adopted this _____ day of _______________ 2026. ___________________________
Mayor Erica A. Stewart
Resolution No. _____ (2026 Series) Page 3
R ______
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: September 15, 2026
TO: Mayor and Council
FROM: Greg Hermann, Deputy City Manager
Prepared By: Teresa Purrington, City Clerk
VIA: Whitney McDonald, City Manager
SUBJECT: ITEM #7b – AMENDMENT TO COUNCIL’S POLICIES AND PROCEDURES CHAPTER 5 AND CHAPTER 7
Staff received the following proposed revisions (in red) to Section5.3.4.1 and Section
7.3.2.3 from Council Members. Staff concurs with the changes and recommend that they be included in any final action:
5.3.4.1 In the case of a Grand Jury report received by an elected official prior to the public release, the elected official shall discuss with the City Manager, City Attorney, or a Grand Jury designee before distributing further.
7.3.2.3 Any oral or written information marked as designated as “Confidential” pursuant to relevant legal statutory authority received by virtue of your a Council Member’s position with the City.
Item 7b
Department: Administration
Cost Center: 1021
For Agenda of: 9/15/2026
Placement: Public Hearing
Estimated Time: 30 Minutes
FROM: Greg Hermann, Deputy City Manager
Prepared By: Teresa Purrington, City Clerk
SUBJECT: AMENDMENT TO COUNCIL’S POLICIES AND PROCEDURES CHAPTER 5 – COUNCIL/STAFF RELATIONSHIP AND CHAPTER 7 -
CONFIDENTIALITY
RECOMMENDATION
Adopt a draft Resolution approving amendments to the Council Policies and Procedures Chapter 5 Council/Staff Relationship and Chapter 7 – Confidentiality. (Attachment A)
POLICY CONTEXT
City Council has adopted a manual entitled “Council Policies and Procedures” to define and ensure the proper conduct of the City’s business by the City Council. The Council periodically revises its Council Policies and Procedures Manual (“Manual”) to ensure clarity, consistency with State law, and conformity with the City Charter and Ordinances.
DISCUSSION
Background
At the August 18, 2026 City Council meeting, the Council directed staff to return with proposed amendments to Chapter 7 – Confidentiality of the Council Policies and Procedures Manual. Council requested additional clarity in defining confidential information and identifying the types of communications and materials subject to confidentiality requirements. The proposed amendments are intended to strengthen this section of the manual, and provide more explicit direction to Council Members regarding confidential materials.
Staff conducted a review of Chapter 7 of the Policies and Procedures Manual and recommends revisions to Section 7.3.1 (Confidential Information) to clarify the scope and applicability of confidential communications. The proposed amendment further defines categories of confidential information to include information that is marked as confidential pursuant to applicable statutory authority.
Further, staff recommends amending Section 5.1 – Guidelines for Staff to incorporate Section 5.3.4.1, which provides procedural direction regarding the handling of Grand Jury
Item 7b
reports. This amendment is intended to clarify expectations for elected officials and ensures consistency with legal requirements.
Staff recommend adding Section 5.3.4.1 to Chapter 5 and Section 7.3.2.3 to Chapter 7 as follows:
5.1GUIDELINES FOR STAFF
Staff shall recognize that its primary function is to execute Council policy and to keep the Council informed. Staff shall present the Council with all relevant information, as well as alternatives, in an objective, succinct manner. The City Manager and staff are committed to treating each Council Member equally.
5.3.1 TIMELY RESPONSE
City staff will make every effort to respond in a timely and professional manner to all requests made by individual Council Members for information or assistance, provided that, in the judgment of the City Manager the request is not of a magnitude, either in terms of workload or policy, which would require that it more appropriately be assigned to staff through the collective direction of the City Council. In terms of making this judgment, the following guidelines should be considered: The request should be specific and limited in scope so that staff can respond without altering other priorities and with only minimal delay to other assignments; the request should only impose a "one-time" work requirement, as opposed to an on-going work requirement; the response to the request should not require a significant allocation of staff resources (generally defined as consisting of more than one staff person, or a single staff person working on the issue in excess of 1-2 hours).
5.3.2 DIRECTION FROM COUNCIL
Staff are obligated to take guidance and direction only from the Council as a whole or from the appropriate management superiors as may be the case. Staff are directed to reject any
recommendations or attempts by individual members of the Council to unduly influence or otherwise pressure them into making, changing or otherwise suppressing staff decisions or
recommendations, or changing departmental work schedules and priorities. Staff shall report such attempts to influence them in confidence to the City Manager, who may inform the Council as a whole of such attempts.
5.3.3 STAFF SUPPORT TO INDIVIDUAL COUNCIL MEMBERS
An exception to the above guidelines may be staff work required in support of a Council Member designated by the City Council to represent the City in an intergovernmental role (e.g., membership of Joint Powers Authority), or relative to a special assignment (e.g., a special task force).
Item 7b
5.3.4 INFORMATION DISTRIBUTION
In cases where a staff response to an individual Council Member request involves written material that may be of interest to other Council Members, the City Manager will provide copies of the material to all other Council Members. In making this judgment, the City Manager will consider whether the information is significant or new or otherwise not available to the Council or of interest to the Council.
5.3.4.1 In the case of a Grand Jury report received by an elected official prior to the public release, the elected official shall discuss with the City Manager and/or City Attorney before distributing further.
7.3.1 CONFIDENTIAL INFORMATION
7.3.2.1 Any information within the scope of a duly authorized closed session, whether provided orally or in writing, by any attorney, consultant, staff member or Council Member acting within the scope of the closed session (See Gov't. Code Section 54963); or
7.3.2.2 Any oral or written communications by or from the City Attorney, Assistant City Attorney, or any retained counsel representing the City’s legal interests containing the attorney's legal opinions, advice, thoughts, mental impressions or conclusions that are given on behalf of the City.
7.3.2.3 Information marked as “Confidential” pursuant to relevant statutory authority received by virtue of your position with the City.
7.3.2.4 Confidential Information does not include information that is:
required by law to be reported out of closed session; authorized to be disclosed by a majority vote of the City Council; or otherwise authorized to be disclosed under the law.
Public Engagement
Public Comment can be provided to the City Council through written correspondence received prior to the meeting and through public comment at the meeting.
CONCURRENCE
The City Attorney’s Office concurs with the recommendations in this report.