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CC 2022-05-24 Revised Agenda PackageCITY COUNCIL MEETING REVISED AGENDA SUMMARY Tuesday, May 24, 2022, 6:00 p.m. In person at: Arroyo Grande City Council Chambers 215 E. Branch Street, Arroyo Grande, CA 93420 AND via Zoom at: Please click the link below to join the Zoom Meeting: https://us02web.zoom.us/j/83255848846 Webinar ID: 832 5584 8846 Or by Telephone: 1-669-900-6833; 1-346-248-7799 In compliance with Assembly Bill (AB) 361, which allows for a deviation of teleconference rules required by the Ralph M. Brown Act, this City Council meeting is being conducted in a hybrid in-person/virtual format. Members of the public may participate and provide public comment on agenda items during the meeting in person at the location identified above, by joining the Zoom meeting, or by submitting written public comments to the Clerk of the Council at publiccomment@arroyogrande.org. Meetings will be broadcast live on Channel 20 and streamed on the City’s website and www.slo-span.org. 1.CALL TO ORDER 2.ROLL CALL 3.MOMENT OF REFLECTION 4.FLAG SALUTE ARROYO GRANDE OPTIMIST INTERNATIONAL 5.AGENDA REVIEW 5.a.Closed Session Announcements The City Attorney will announce reportable actions taken, if any, from the Special Meeting of May 18, 2022: a) PUBLIC EMPLOYEE PERFORMANCE EVALUATION pursuant to Government Code Section 54957: Title: City Manager 5.b.Ordinances read in title only Move that all ordinances presented at the meeting shall be read by title only and all further readings be waived. 6.SPECIAL PRESENTATIONS 6.a.Update Regarding Countywide COVID-19 Efforts (McDONALD) Recommended Action: Receive update, accept public comments, discuss, and provide direction as necessary. 6.b.City Manager Communications (McDONALD) Recommended Action: Receive correspondence/comments as presented by the City Manager and Provide direction, as necessary. 6.c.Honorary Proclamation Declaring June 2022 as “Pride Month” 6.d.Honorary Proclamation Recognizing June 19, 2022 as "Juneteenth Day" in Arroyo Grande *6.e.Honorary Proclamation Declaring June 3, 2022 as “Hunger Awareness Day” 7.COMMUNITY COMMENTS AND SUGGESTIONS This public comment period is an invitation to members of the community to present issues, thoughts, or suggestions on matters not scheduled on this agenda. Comments should be limited to those matters that are within the jurisdiction of the City Council. Members of the public may provide public comment in-person or remotely by joining the Zoom meeting utilizing one of the methods provided below. Please use the “raise hand” feature to indicate your desire to provide public comment. •Click the link below to join the webinar: https://us02web.zoom.us/j/83255848846; Webinar ID: 832 5584 8846 •Or by Telephone: 1-669-900-6833; 1-346-248-7799 Press * 9 to “raise hand” for public comment The Brown Act restricts the Council from taking formal action on matters not published on the agenda. In response to your comments, the Mayor or presiding Council Member may: • Direct City staff to assist or coordinate with you. • A Council Member may state a desire to meet with you. • It may be the desire of the Council to place your issue or matter on a future Council agenda. Please adhere to the following procedures when addressing the Council: • Comments should be limited to 3 minutes or less. • Your comments should be directed to the Council as a whole and not directed to individual Council members. • Slanderous, profane or personal remarks against any Council Member or member of the audience shall not be permitted. 8.CONSENT AGENDA The following routine items listed below are scheduled for consideration as a group. The recommendations for each item are noted. Any member of the public who wishes to comment on any Consent Agenda item may do so at this time. Any Council Member may request that any item be withdrawn from the Consent Agenda to permit discussion or change the recommended course of Page 2 of 386 action. The City Council may approve the remainder of the Consent Agenda on one motion. 8.a.Consideration of Cash Disbursement Ratification (VALENTINE) Recommended Action: Ratify the attached listing of cash disbursements for the period of April 16 through April 30, 2022. 8.b.Approval of Minutes (MATSON) Recommended Action: Approve the minutes of the Regular City Council Meeting of May 10, 2022 and Special City Council Meeting of May 18, 2022 as submitted. 8.c.Consideration of Resolutions for the 2022 General Municipal Election for the Election of Certain Officers of the City (MATSON) Recommended Action: 1) Adopt a Resolution calling and giving notice of the holding of a General Municipal Election to be held on Tuesday, November 8, 2022, for the election of certain officers of the City; 2) Adopt a Resolution requesting the Board of Supervisors of the County of San Luis Obispo to consolidate a General Municipal Election to be held on November 8, 2022; and 3) Adopt a Resolution adopting regulations for candidates governing the submittal of a Candidate Statement. 8.d.Consideration of Adoption of a Resolution Declaring a Continued Local Emergency Related to the Coronavirus (COVID-19) Pandemic (McDONALD/CARMEL) Recommended Action: Adopt a Resolution declaring a continued local emergency related to the Coronavirus (COVID-19) pandemic. 8.e.Consideration of Authorizing the Display of the LGTBQ+ Pride Flag During the Month of June 2022 at Heritage Square Park and at City Hall (McDONALD) Recommended Action: Authorize the display of the Pride Flag during the month of June 2022 at Heritage Square Park and at City Hall. 8.f.Consideration of Authorizing the Display of the Juneteenth Flag During the week of June 17-24, 2022 at City Hall (McDONALD) Recommended Action: Authorize the display of the Juneteenth Flag for the week beginning on June 17 through June 24, 2022, at City Hall. 8.g.Consideration of Adoption of a Resolution Approving the Second Amended and Restated Joint Powers Agreement to Establish an Integrated Waste Management Authority for the Page 3 of 386 Cities of San Luis Obispo County, California (McDONALD/CARMEL) Recommended Action: Adopt a Resolution Approving the Second Amended and Restated Joint Powers Agreement to Establish an Integrated Waste Management Authority for the Cities of San Luis Obispo County, California (the “Second Amended JPA”). 8.h.Consideration of a Resolution Authorizing the Community Development Director to Submit an Application for the ATP Cycle 6 Grant and Execute any Agreements for the Use of Grant Funds for Implementation of the Halcyon Road Complete Streets Plan (PEDROTTI) Recommended Action: Adopt a Resolution authorizing the Community Development Director to apply for the Active Transportation Program Cycle 6 Grant and execute any agreements necessary for the use of grant funds as approved in the future Council-approved CIP budget in effect at the time the agreements are signed. 8.i.Monthly Water Supply and Demand Update (ROBESON) Recommended Action: Receive and file the monthly Water Supply and Demand Report. 9.PUBLIC HEARINGS 9.a.Public Hearing to Consider a Resolution Levying an Annual Assessment for the Arroyo Grande Tourism Business Improvement District (AGTBID) (McDONALD) Recommended Action: 1) Conduct a public hearing to receive testimony regarding the City Council’s intention to continue the AGTBID and levy an annual assessment for Fiscal Year 2022-23; 2) Determine whether a legally sufficient number of protests have been made; and 3) If a legally sufficient protest is not made, adopt a Resolution levying an annual assessment for the AGTBID for FY 2022-23. 9.b.Discuss and Consider Introduction of an Ordinance Amending Title 16 of the Arroyo Grande Municipal Code to Implement Senate Bill 9; Development Code Amendment 21-002; Location – Citywide (PEDROTTI) Recommended Action: Introduce an Ordinance establishing regulations for projects proposed under the provisions of SB 9. 9.c.Consideration of 5-Year Review of Local Sales Tax (VALENTINE) Recommended Action: Conduct the public hearing, receive and file the 5-year report covering the period of July 2016 through June 2021, and approve continuation of the local sales tax. Page 4 of 386 10.OLD BUSINESS None. 11.NEW BUSINESS 11.a.Discussion and Consideration of the 5-Year Capital Improvement Program and 5-Year Local Sales Tax Fund Expenditure Program (VALENTINE) Recommended Action: It is recommended the City Council provide direction on priorities for the CIP as well as expenditures funded by the Local Sales Tax Fund for the upcoming 5-year programs. 11.b.Consideration of Placing a Local Transactions and Use Tax (“Sales Tax”) Measure on the November 8, 2022 Ballot (McDONALD) Recommended Action: 1) Adopt the proposed Resolution ordering the submission to the qualified electors of the City a measure relating to the establishment of a local transactions and use tax (hereinafter referred to as a "sales tax") at the General Municipal Election to be held on Tuesday, November 8, 2022, as called by Resolution; 2) Introduce the proposed Ordinance adding Chapter 3.23 to Title 3 of the Arroyo Grande Municipal Code regarding a transactions and use tax; 3) Adopt the proposed Resolution setting priorities for filing a written argument regarding a City measure and directing the City Attorney to prepare an impartial analysis of the measure; 4) Adopt the proposed Resolution providing for the filing of rebuttal arguments for City measures submitted at municipal elections; and 5) Approve the argument to be submitted in favor of the measure. 12.CITY COUNCIL REPORTS 12.a.MAYOR RAY RUSSOM: 1.California Joint Powers Insurance Authority (CJPIA) 2.South San Luis Obispo County Sanitation District (SSLOCSD) 3.Tourism Business Improvement District Advisory Board 4.Other 12.b.MAYOR PRO TEM GEORGE: 1.County Water Resources Advisory Committee (WRAC) 2.Visit SLO CAL Advisory Board 3.Other 12.c.COUNCIL MEMBER BARNEICH: 1.Audit Committee 2.Homeless Services Oversight Council (HSOC) 3.Zone 3 Water Advisory Board 4.Other Page 5 of 386 12.d.COUNCIL MEMBER PAULDING: 1.Air Pollution Control District (APCD) 2.Brisco/Halcyon Interchange Subcommittee 3.Council of Governments/Regional Transit Authority/ South County Transit (SLOCOG/SLORTA/SCT) 4.REACH SLO Advisory Commission 5.Other 12.e.COUNCIL MEMBER STORTON: 1.Brisco/Halcyon Interchange Subcommittee 2.Five Cities Fire Authority (FCFA) 3.Integrated Waste Management Authority Board (IWMA) 4.South County Chambers of Commerce Governmental Affairs Committee 5.Other 13.COUNCIL COMMUNICATIONS Any Council Member may ask a question for clarification, make an announcement, or report briefly on his or her activities. In addition, subject to Council policies and procedures, Council Members may request staff to report back to the Council at a subsequent meeting concerning any matter or request that staff place a matter of business on a future agenda. Any request to place a matter of business for original consideration on a future agenda requires the concurrence of at least one other Council Member. 14.CLOSED SESSION None. 15.ADJOURNMENT All staff reports or other written documentation, including any supplemental material distributed to a majority of the City Council within 72 hours of a regular meeting, relating to each item of business on the agenda are available for public inspection during regular business hours in the City Clerk’s office, 300 E. Branch Street, Arroyo Grande. If requested, the agenda shall be made available in appropriate alternative formats to persons with a disability, as required by the Americans with Disabilities Act. To make a request for disability-related modification or accommodation, contact the Legislative and Information Services Department at 805-473-5400 as soon as possible and at least 48 hours prior to the meeting date. This agenda was prepared and posted pursuant to Government Code Section 54954.2 Agenda reports can be accessed and downloaded from the City’s website at www.arroyogrande.org If you would like to subscribe to receive email or text message notifications when agendas are posted, you can sign up online through the “Notify Me” feature. City Council Meetings are cablecast live and videotaped for replay on Arroyo Grande’s Government Access Channel 20. The rebroadcast schedule is published at www.slo-span.org. Page 6 of 386 Item 6.c.Page 7 of 386 Item 6.d.Page 8 of 386 Item 6.e.Page 9 of 386 Item 8.a. MEMORANDUM TO: City Council FROM: Nicole Valentine, Administrative Services Director BY: Lynda Horejsi, Accounting Manager SUBJECT: Consideration of Cash Disbursement Ratification DATE: May 24, 2022 SUMMARY OF ACTION: Review and ratify cash disbursements. IMPACT ON FINANCIAL AND PERSONNEL RESOURCES: There is a $1,210,582.15 fiscal impact that includes the following items:  Accounts Payable Checks $839,802.94  Payroll & Benefit Checks $370,779.21 RECOMMENDATION: Ratify the attached listing of cash disbursements for the period of April 16 through April 30, 2022. BACKGROUND: Cash disbursements are made weekly based on the submission of all required documents supporting the invoices submitted for payment. Prior to payment, Administrative Services staff reviews all disbursement documents to ensure that they meet the approval requirements adopted in the Municipal Code and the City’s Purchasing Policies and Procedures Manual. ANALYSIS OF ISSUES: The attached listing represents the cash disbursements required of normal and usual operations during the period. The disbursements are accounted for in the FY 2021 -22 budget. Page 10 of 386 Item 8.a. City Council Consideration of Cash Disbursement Ratification May 24, 2022 Page 2 ALTERNATIVES: The following alternatives are provided for the Council’s consideration: 1. Approve staff’s recommendation; 2. Do not approve staff’s recommendation; or 3. Provide other direction to staff. ADVANTAGES:  The Administrative Services Department monitors payments of invoices for accountability, accuracy, and completeness using standards approved by the City Council.  Invoices are paid in a timely manner to establish goodwill with merchants.  Discounts are taken where applicable. DISADVANTAGES: There are no disadvantages identified in this recommendation. ENVIRONMENTAL REVIEW: No environmental review is required for this item. PUBLIC NOTIFICATION AND COMMENTS: The Agenda was posted at City Hall and on the City’s website in accordance with Government Code Section 54954.2. Attachments: 1. April 16 – April 30, 2022 – Accounts Payable Check Register 2. April 22, 2022 – Payroll and Benefit Check Registers Page 11 of 386 CITY OF ARROYO GRANDECHECK LISTINGAPRIL 16 -APRIL 30, 2022ATTACHMENT 1Line Check Date Check # Amount Description Acct # Vendor Name1 04/21/2022 293585 $ 50.00 FILING FEE-NOTICE OF EXEMPTION 010.4002.5201 SLO COUNTY CLERK-RECORDER2 04/22/2022 293586 240.00 CREEK SAMPLING 010.4301.5303 ABALONE COAST ANALYTICAL INC3 04/22/2022 293587 6,454.50 UPGRADE DUTY PISTOLS WITH RDS 271.4202.6201 ADAMSON INDUSTRIES, INC4 04/22/2022 293587 500.23 SALES TAX 271.4202.6201 ADAMSON INDUSTRIES, INC5 04/22/2022 293588 499.63 PEACE OFFICER MEMORIAL SUPPLIES 010.4201.5201 AMAZON CAPITAL SERVICES6 04/22/2022 293588 111.29 SPIC & SPAN CLEANER 010.4213.5604 AMAZON CAPITAL SERVICES7 04/22/2022 293588 150.70 BATHROOM SIGNS 010.4420.5605 AMAZON CAPITAL SERVICES8 04/22/2022 293588 759.33 FEBCO PRESSURE REDUCERS 010.4420.5605 AMAZON CAPITAL SERVICES9 04/22/2022 293588 348.96 TRASH BAGS 220.4303.5613 AMAZON CAPITAL SERVICES10 04/22/2022 293588 204.87 OFFICE SUPPLIES 640.4710.5201 AMAZON CAPITAL SERVICES11 04/22/2022 293588 112.57 PATROL SUPPLIES-BATTERIES 010.4203.5255 AMAZON CAPITAL SERVICES12 04/22/2022 293589 7.01 BLDG MAINT UNIFORMS 010.4213.5143 ARAMARK UNIFORM SERVICES13 04/22/2022 293589 3.51 AUTO SHOP UNIFORMS 010.4305.5143 ARAMARK UNIFORM SERVICES14 04/22/2022 293589 13.83 PARKS DEPT UNIFORMS 010.4420.5143 ARAMARK UNIFORM SERVICES15 04/22/2022 293589 7.00 SOTO SPORTS COMPLEX UNIFORMS 010.4430.5143 ARAMARK UNIFORM SERVICES16 04/22/2022 293589 14.00 STREETS DEPT UNIFORMS 220.4303.5143 ARAMARK UNIFORM SERVICES17 04/22/2022 293589 7.01 SEWER DEPT UNIFORMS 612.4610.5143 ARAMARK UNIFORM SERVICES18 04/22/2022 293589 13.47 WATER DEPT UNIFORMS 640.4712.5143 ARAMARK UNIFORM SERVICES19 04/22/2022 293590 198.33 ACCT#23845101839190 RADIO 010.4145.5403 AT & T20 04/22/2022 293590 33.97 ACCT#23584139568063 ALARM 220.4303.5303 AT & T21 04/22/2022 293591 296.98 B-409 A/C RECHARGE 010.4212.5601 BACK ON THE ROAD AUTOMOBILE22 04/22/2022 293591 1,178.94 P-17 SPARK PLUGS, WHEEL SEAL, BRAKES 010.4420.5601 BACK ON THE ROAD AUTOMOBILE23 04/22/2022 293591 327.81 PD-4607 REPAIR 010.4203.5601 BACK ON THE ROAD AUTOMOBILE24 04/22/2022 293591 531.50 PD-4603 REPAIR & OIL CHG 010.4203.5601 BACK ON THE ROAD AUTOMOBILE25 04/22/2022 293592 66.64 PW-6 BATTERY 220.4303.5603 BATTERY SYSTEMS26 04/22/2022 293593 3,179.23 FLEET TIRE STOCK 010.4203.5601 BIG BRAND TIRE CO.27 04/22/2022 293594 30.00 CAR WASH PD ADMIN 010.4201.5601 BOB'S EXPRESS WASH28 04/22/2022 293594 34.00 CAR WASH-PD ADMIN 010.4201.5601 BOB'S EXPRESS WASH29 04/22/2022 293594 22.00 CAR WASH ENG. PW8, PW4010.4301.5601 BOB'S EXPRESS WASH30 04/22/2022 293594 20.00 CAR WASH-ENG PW8, PW4010.4301.5601 BOB'S EXPRESS WASH31 04/22/2022 293594 37.00 CAR WASH-PW61, PW16, PW22220.4303.5601 BOB'S EXPRESS WASH32 04/22/2022 293594 12.00 CAR WASH PW14, PW10, PW44, PW6 612.4610.5601 BOB'S EXPRESS WASH33 04/22/2022 293594 33.00 CAR WASH PW14, PW10, PW44, PW6 640.4712.5601 BOB'S EXPRESS WASH34 04/22/2022 293594 324.00 CAR WASH- PD PATROL 010.4203.5601 BOB'S EXPRESS WASH35 04/22/2022 293594 451.00 CAR WASH-PD PATROL 010.4203.5601 BOB'S EXPRESS WASH36 04/22/2022 293594 62.00 CAR WASH-PD SUPPORT SVCS010.4204.5601 BOB'S EXPRESS WASH37 04/22/2022 293594 34.00 CAR WASH-PD SUPPORT SVCS010.4204.5601 BOB'S EXPRESS WASH38 04/22/2022 293595 50.00 PARK DEPOSIT REFUND-HERITAGE SQUARE 010.0000.2206 BOND REAL ESTATE GROUPPage 12 of 386 CITY OF ARROYO GRANDECHECK LISTINGAPRIL 16 -APRIL 30, 2022ATTACHMENT 1Line Check Date Check # Amount Description Acct # Vendor Name39 04/22/2022 293596 $ 53.34 BUSINESS CARDS-ASSOCIATE ENGINEER 010.4301.5201 BOONE PRINTING & GRAPHICS INC40 04/22/2022 293596 1,595.87 PATROL SUPPLIES-NOTICE TO APPEAR010.4203.5255 BOONE PRINTING & GRAPHICS INC41 04/22/2022 293597 30,200.54 BPR BUILDING DEPT 010.4212.5303 BPR CONSULTING GROUP LLC42 04/22/2022 293597 26,322.56 BPR BUILDING DEPT 010.4212.5303 BPR CONSULTING GROUP LLC43 04/22/2022 293598 96.00 PEST CONTROL: WOMENS CLUB 010.4213.5303 BREZDEN PEST CONTROL, INC44 04/22/2022 293598 136.00 PEST CONTROL: REC DEPT 010.4213.5303 BREZDEN PEST CONTROL, INC45 04/22/2022 293599 1,175.00 TUITION REIMBURSEMENT 010.4201.5502 JEREMY BURNS46 04/22/2022 293600 254.00 1/22-3/22 DIESEL FUEL TAX RETURN010.0000.1202 CA DEPT OF TAX & FEE ADMIN47 04/22/2022 293601 617.04 1/22-3/22 SMIP 010.0000.2208 CA ST DEPT OF CONSERVATION48 04/22/2022 293601 (30.85) ADMIN FEE-SMIP 1/22-3/22 010.0000.4801 CA ST DEPT OF CONSERVATION49 04/22/2022 293602 144.00 1/22-3/22 STATE GREEN BLDG STD FEE 010.0000.2223 CALIFORNIA BUILDING STANDARDS50 04/22/2022 293602 (14.40) LOCAL RETAINER 1/22-3/22 STATE GREEN BLDG STD FEE 010.0000.2223 CALIFORNIA BUILDING STANDARDS51 04/22/2022 293603 175.00 REGISTRATION FOR HUMAN RESOURCES 010.4120.5501 CALIFORNIA JPIA52 04/22/2022 293604 500.00 CAFR STATS-DIRECT & OVERLAPPING DEBT010.4145.5303 CALIFORNIA MUNICIPAL53 04/22/2022 293605 156.00 CVT-21-10336 AGPD 2101984 010.4204.5324 CENTRAL VALLEY TOXICOLOGY INC54 04/22/2022 293606 987.20 ACCT#8245100960223598 PD DARK 010.4145.5401 CHARTER COMMUNICATIONS55 04/22/2022 293607 1,625.00 LASERFICHE SUPPORT RENEWAL 5/22-5/23010.4204.5607 COMPLETE PAPERLESS SOLUTIONS56 04/22/2022 293608 1,813.35 ADMIN/SIPPORT FLEET UPFITTING 010.4201.5601 DANA SAFETY SUPPLY57 04/22/2022 293609 354.35 KYOCERA COPIER LEASE PMYT 04/22 010.4421.5602 DE LAGE LANDEN FINANCIAL SVCS58 04/22/2022 293609 354.35 KYOCERA COPIER LEASE PMYT 05/22 010.4421.5602 DE LAGE LANDEN FINANCIAL SVCS59 04/22/2022 293610 8,000.00 GASB 87 DEBTBOOK SUBSCRIPTION 010.4120.5303 DEBTBOOK60 04/22/2022 293611 196.00 REFUND-BASKETBALL CAMP (2) 010.0000.4605 BONNIE DEPAULO61 04/22/2022 293612 372.59 METRO INTERNET CIRCUIT 010.4140.5303 DIGITAL WEST NETWORKS INC62 04/22/2022 293612 372.59 METRO INTERNET CIRCUIT 010.4140.5303 DIGITAL WEST NETWORKS INC63 04/22/2022 293612 372.59 METRO INTERNET CIRCUIT 010.4140.5303 DIGITAL WEST NETWORKS INC64 04/22/2022 293613 9,270.00 ANNUAL RENEWAL LASERFICHE LICENSING 010.4140.5303 ECS IMAGING, INC.65 04/22/2022 293614 587.50 CASTILLO DEL MAR ROADWAY EXTENSION 350.5678.7301 EIKHOF DESIGN GROUP66 04/22/2022 293614 5,191.20 DESIGN SVCS FOR THE ELM ST PARK PLAYSTRUCTURE 350.5564.7501 EIKHOF DESIGN GROUP67 04/22/2022 293615 379,387.72 2021 STREET REPAIRS PROJECT 350.5638.7001 FERRAVANTI GRADING & PAVING68 04/22/2022 293616 48.00 PD-4605 TIRE MOUNTING, BALANCING 010.4203.5601 FIGUEROA'S TIRES69 04/22/2022 293616 96.00 PD-4608 TIRE MOUNTING, BALANCING 010.4203.5601 FIGUEROA'S TIRES70 04/22/2022 293617 120.25 (6) PADLOCKS 010.4301.5255 FRANK'S LOCK & KEY71 04/22/2022 293618 34,492.50 DESIGN PEDESTRIAN CROSSING IMPROVEMENTS 350.5607.7501 GHD INC72 04/22/2022 293619 1,439.86 01/22-03/22 CJIS SYSTEM ACCESS 010.4204.5606 GSA-INFORMATION TECH73 04/22/2022 293620 190.00 IACP MEMBERSHIP 010.4201.5503 IACP - INTL ASSN OF CHIEFS74 04/22/2022 293621 412.50 BUILDING DIVISON SERVICES-ADDITIONAL AMOUNT 010.4212.5303 INTERWEST CONSULTING GROUP75 04/22/2022 293622 145.65 FUEL-PD4620 & PD-4621 010.4203.5608 JB DEWAR, INC76 04/22/2022 293622 150.88 FUEL PD-4620 PD-4621 010.4203.5608 JB DEWAR, INCPage 13 of 386 CITY OF ARROYO GRANDECHECK LISTINGAPRIL 16 -APRIL 30, 2022ATTACHMENT 1Line Check Date Check # Amount Description Acct # Vendor Name77 04/22/2022 293623 $ 380.00 PICKLEBALL CLINIC 04/10/22 010.4424.5351 PRINCESS LEONG78 04/22/2022 293624 757.38 SHORETEL PHONE CHARGES - CITY HALL 010.4145.5403LEVEL 3 COMMUNICATIONS LLC79 04/22/2022 293624 757.38 SHORETEL PHONE CHARGES - AGPD 010.4201.5403LEVEL 3 COMMUNICATIONS LLC80 04/22/2022 293625 275.00 ONGOING MAP CHECKING SERVICES 010.4301.5303 MNS ENGINEERS INC81 04/22/2022 293625 343.75 ONGOING MAP CHECKING SERVICES 010.4301.5303 MNS ENGINEERS INC82 04/22/2022 293625 1,125.00 ONGOING MAP CHECKING SERVICES 010.4301.5303 MNS ENGINEERS INC83 04/22/2022 293626 175.00 REFUND-SCIENCE CAMP 010.0000.4605 HATTIE MOORE84 04/22/2022 293626 15.00 REFUND-SCIENCE CAMP 010.0000.4605 HATTIE MOORE85 04/22/2022 293627 550.38 COMMUNICATIONS-MOTORCYCLE RADIO 010.4204.5606 NICK'S TELECOM86 04/22/2022 293627 70.00 COMMUNICATIONS- MOTORCYCLE RADIO 010.4204.5606 NICK'S TELECOM87 04/22/2022 293628 126.43 OFFICE SUPPLIES-MARKERS, TONER 010.4421.5201 OFFICE DEPOT88 04/22/2022 293628 55.04 OFFICE SUPPLIES-BATTERIES, POST-ITS 010.4421.5201 OFFICE DEPOT89 04/22/2022 293628 (18.99) CREDIT-RETURN BATTERIES 010.4421.5201 OFFICE DEPOT90 04/22/2022 293628 23.06 BATTERIES, WALL HANGER 010.4421.5201 OFFICE DEPOT91 04/22/2022 293629 588.26 PRINTER CARTRIDGES (4) 010.4421.5602 OFFICE192 04/22/2022 293629 153.01 PRINTER CARTRIDGE 010.4421.5602 OFFICE193 04/22/2022 293630 79.38 COPIER MAINT CONTRACT OVERAGE 010.4204.5602 OFFICE194 04/22/2022 293631 6.32 DELIVERY CHARGES 010.4201.5208 ON TRAC95 04/22/2022 293632 45.00 PRE-E,PLOYMENT MEDICAL TESTING 010.4425.5315 PACIFIC CENTRAL COAST HEALTH96 04/22/2022 293632 85.00 PRE-EMPLOYMENT MEDICAL TESTING 640.4712.5315 PACIFIC CENTRAL COAST HEALTH97 04/22/2022 293633 300.00 03/22 K-RAIL RENTAL 010.4919.5303 PACIFIC PETROLEUM CALIFORNIA98 04/22/2022 293633 181.48 K-RAIL RETURN-RED DIRT COFFEE 010.4919.5303 PACIFIC PETROLEUM CALIFORNIA99 04/22/2022 293634 414.21 COPY PAPER-6 CASES 010.4421.5201PAPER CONNECTION100 04/22/2022 293635 32.50 UNIFORM CLEANING-PD ADMIN 010.4201.5303 PARAMOUNT CLEANERS101 04/22/2022 293635 424.25 UNIFORM CLEANING-PD PATROL SVCS 010.4203.5303 PARAMOUNT CLEANERS102 04/22/2022 293635 80.50 UNIFORM CLEANING-PD SUPPORT SVCS 010.4204.5303 PARAMOUNT CLEANERS103 04/22/2022 293636 119.95 04/22 WIFI SVC HUBNER SITE 010.4201.5403PEAKWIFI LLC104 04/22/2022 293637 5.38 COUNCIL CHAMBERS WATER 010.4213.5303 READYREFRESH BY NESTLE105 04/22/2022 293638 15.00 REVERSE OSMOSIS RENTAL: 03/22 010.4201.5303 RICHETTI COMPLETE WATER106 04/22/2022 293639 597.45 PROP & EVIDENCE REFRIGERATOR REPAIR 010.4204.5603 RUFFONI'S SERVICES INC107 04/22/2022 293640 195.00 SUCCESSOR AGENCY LEGAL SVCS 286.4103.5303 RUTAN & TUCKER, LLP108 04/22/2022 293640 2,184.00 SUCCESSOR AGENCY LEGAL SVCS 286.4103.5303 RUTAN & TUCKER, LLP109 04/22/2022 293641 5,526.00 EMERGENCY GENERATOR FOR FCFA 350.5473.7501 SALAS O'BRIEN110 04/22/2022 293642 51.96 GAS SERVICES-200 N HALCYON 010.4145.5401 SOCALGAS111 04/22/2022 293642 14.30 GAS SERVICES-350 S ELM 010.4145.5401 SOCALGAS112 04/22/2022 293642 127.68 GAS SERVICES-1375 ASH ST 010.4145.5401 SOCALGAS113 04/22/2022 293643 3,500.00 TBID ADMIN FEE 240.4150.5303 SOUTH COUNTY CHAMBERS114 04/22/2022 293644 190.00 REFUND-SCIENCE CAMP 010.0000.4605 AMANDA STALLINGSPage 14 of 386 CITY OF ARROYO GRANDECHECK LISTINGAPRIL 16 -APRIL 30, 2022ATTACHMENT 1Line Check Date Check # Amount Description Acct # Vendor Name115 04/22/2022 293645 $ 31.79 CAR WASHES B-409 010.4212.5601 SUNSET NORTH CAR WASH116 04/22/2022 293646 346.22 UNIFORMS-EARNEST 010.4203.5272 TEMPLETON UNIFORMS117 04/22/2022 293646 17.00 UNIFORMS-DONOVAN ALTERATIONS 010.4203.5272 TEMPLETON UNIFORMS118 04/22/2022 293647 262.00 COUNCIL CHAMBER AED BATTERY EXCHANGE 010.4001.5201 U.S. BANK119 04/22/2022 293647 151.38 MEETING SUPP-STARBUCKS, JAFFA, BRANCH ST DELI 010.4101.5201 U.S. BANK120 04/22/2022 293647 2.50 PARKING-PISMO BEACH 010.4101.5201 U.S. BANK121 04/22/2022 293647 25.00 CHAMBER BREAKFAST - MCDONALD 010.4101.5501 U.S. BANK122 04/22/2022 293647 1,600.09 (3) VARIDESK SIT/STAND DESKS 010.4120.5201 U.S. BANK123 04/22/2022 293647 619.18 CSMFO CONFERENCE LODGING, MEALS 010.4120.5501 U.S. BANK124 04/22/2022 293647 15.41 CSMFO CONFERENCE-FOOD 010.4120.5501 U.S. BANK125 04/22/2022 293647 525.00 CEQA WORKSHOP- ASSOC OF ENVIRO PROFESSIONALS 010.4130.5501 U.S. BANK126 04/22/2022 293647 528.85 ZOOM-DEPT/PUBLIC MEETINGS 010.4140.5303 U.S. BANK127 04/22/2022 293647 1.37 SECURE CONFERENCE 010.4140.5303 U.S. BANK128 04/22/2022 293647 49.70 AUTHORIZE.NET CHRGS 010.4145.5555 U.S. BANK129 04/22/2022 293647 915.40 OFFICE SUPPLIES-TONERS 010.4201.5201 U.S. BANK130 04/22/2022 293647 37.99 KITCHEN SUPPLIES 010.4201.5255 U.S. BANK131 04/22/2022 293647 526.09 UNIFORMS/EQUIPMENT 010.4201.5272 U.S. BANK132 04/22/2022 293647 2,090.20 TRAINING-DEPT MEETING, TRAVEL, LODGING 010.4201.5501 U.S. BANK133 04/22/2022 293647 145.00 MEMBERSHIP-CPCA 010.4201.5503 U.S. BANK134 04/22/2022 293647 876.59 PROMOTIONAL ITEMS 010.4201.5504 U.S. BANK135 04/22/2022 293647 22.60 BLDG MAINT-CARPET CLEANING SOL 010.4201.5604 U.S. BANK136 04/22/2022 293647 111.37 FUEL 010.4201.5608 U.S. BANK137 04/22/2022 293647 34.65 VONS-MEETING SUPPLIES 010.4301.5201 U.S. BANK138 04/22/2022 293647 95.00 OWP-QSD RENEWAL 010.4301.5503 U.S. BANK139 04/22/2022 293647 3,060.08 COMPETITIVE EDGE-BASKETBALL BACKBOARDS 010.4420.5255 U.S. BANK140 04/22/2022 293647 347.18 AMAZON-NITRIL GLOVES 010.4420.5605 U.S. BANK141 04/22/2022 293647 230.55 PAYPAL-ORCHARD LADDER 010.4420.5605 U.S. BANK142 04/22/2022 293647 7.75 OFFICE MAX-SHELF 010.4420.5605 U.S. BANK143 04/22/2022 293647 14.13 STAFF WELCOME-VONS 010.4421.5255 U.S. BANK144 04/22/2022 293647 113.47 STAFF MEETING-ME N Z'S 010.4421.5501 U.S. BANK145 04/22/2022 293647 25.00 CHAMBER BREAKFAST - BOHLKEN 010.4421.5501 U.S. BANK146 04/22/2022 293647 650.65 CONFERENCE-LODGING, PARKING, GAS, MEAL 010.4421.5501 U.S. BANK147 04/22/2022 293647 125.00 PEACHJAR-ONLINE ADV CLASSES 010.4421.5504 U.S. BANK148 04/22/2022 293647 57.64 CAREER FAIR-SMART & FINAL 010.4421.5504 U.S. BANK149 04/22/2022 293647 219.84 AMAZON-LAMINATOR 010.4421.6001 U.S. BANK150 04/22/2022 293647 (67.12) OFFICE DEPOT-CREDIT FOR RETURN OF LAMINATOR 010.4421.6001 U.S. BANK151 04/22/2022 293647 45.89 PRESCHOOL SUPPLIES 010.4423.5253 U.S. BANK152 04/22/2022 293647 222.25 SUMMER PRESCHOOL 010.4423.5254 U.S. BANKPage 15 of 386 CITY OF ARROYO GRANDECHECK LISTINGAPRIL 16 -APRIL 30, 2022ATTACHMENT 1Line Check Date Check # Amount Description Acct # Vendor Name153 04/22/2022 293647 $ 70.75 PICKLEBALL EVENT-TRIBE, GOLDEN DONUT 010.4424.5251 U.S. BANK154 04/22/2022 293647 8.37 PICKLBALL LOCK KEYS-AG HOME & GARDEN 010.4424.5251 U.S. BANK155 04/22/2022 293647 261.83 BURDINE PRINTING-MEET THE MACHINES POSTERS 010.4424.5252 U.S. BANK156 04/22/2022 293647 360.17 EGG HUNT SUPPLIES-AMAZON, SMART & FINAL 010.4424.5252 U.S. BANK157 04/22/2022 293647 275.00 PEACHJAR-ONLINE ADV EGG HUNT & BUNNYGRAMS 010.4424.5252 U.S. BANK158 04/22/2022 293647 220.27 FUN EXPRESS EGG HUNT 010.4424.5252 U.S. BANK159 04/22/2022 293647 82.81 SPECIAL EVENTS-EGG HUNT 010.4424.5252 U.S. BANK160 04/22/2022 293647 16.14 BIG 5- ADULT BASKETBALL SUPPLIES 010.4424.5257 U.S. BANK161 04/22/2022 293647 412.99 TOP SHOP-ADULT SOFTBALL SHIRTS 010.4424.5257 U.S. BANK162 04/22/2022 293647 68.96 CLASSES-RESISTANCE BANDS 010.4424.5351 U.S. BANK163 04/22/2022 293647 536.83 SCHOOL YEAR SUPPLIES 010.4425.5255 U.S. BANK164 04/22/2022 293647 445.78 SNACK SUPPLIES 010.4425.5259 U.S. BANK165 04/22/2022 293647 99.00 CONTRACT SVCS-CERTIFICATION TRAINING 010.4425.5303 U.S. BANK166 04/22/2022 293647 10.00 FUEL-VONS 220.4303.5608 U.S. BANK167 04/22/2022 293647 86.96 DMV PERMIT FEE-GARRITY 612.4610.5501 U.S. BANK168 04/22/2022 293647 100.00 DMV PHYSICAL-GARRITY 612.4610.5501 U.S. BANK169 04/22/2022 293647 183.63 PIZZA FOR STAFF 640.4712.5255 U.S. BANK170 04/22/2022 293647 25.00 CHAMBER BREAKFAST - ROBESON 010.4307.5501 U.S. BANK171 04/22/2022 293647 15.07 RANGE SUPPLIES 010.4203.5255 U.S. BANK172 04/22/2022 293647 1,504.83 RANGE SUPPLIES & TARGETS 010.4203.5255 U.S. BANK173 04/22/2022 293647 258.57 PEPPERBALL PRACTICE PROJECTILES 010.4203.5255 U.S. BANK174 04/22/2022 293647 209.20 PATROL SUPPLIES-SUBSTANCE TESTS 010.4203.5255 U.S. BANK175 04/22/2022 293647 346.21 FUEL 010.4203.5608 U.S. BANK176 04/22/2022 293647 27.35 FUEL 010.4203.5608 U.S. BANK177 04/22/2022 293647 152.36 FUEL 010.4203.5608 U.S. BANK178 04/22/2022 293647 1,800.00 UNIFORMS-ARCON GI (24) 010.4204.5272 U.S. BANK179 04/22/2022 293647 149.00 TRAINING-REGISTRATION TUITION 010.4204.5501 U.S. BANK180 04/22/2022 293647 2,530.78 TRAINING LODGING, REGISTRATION 010.4204.5501 U.S. BANK181 04/22/2022 293647 1,181.00 TRAINING TUITION 010.4204.5501 U.S. BANK182 04/22/2022 293647 18.11 COFFEE W/ COP -TRIBE 010.4204.5501 U.S. BANK183 04/22/2022 293647 533.10 TRAINING-LODGING 010.4204.5501 U.S. BANK184 04/22/2022 293647 52.77 TRAINING SUPPLIES -ARCON 010.4204.5501 U.S. BANK185 04/22/2022 293647 2,304.55 TRAINING LODGING 010.4204.5501 U.S. BANK186 04/22/2022 293647 5.00 TRAINING-DRONE REGISTRATION 010.4204.5501 U.S. BANK187 04/22/2022 293647 874.30 TRAINING-LODGING 010.4204.5501 U.S. BANK188 04/22/2022 293647 149.00 TRAINING REGISTRATION TUITION 010.4204.5501 U.S. BANK189 04/22/2022 293647 964.30 TRAINING-LODGING 010.4204.5501 U.S. BANK190 04/22/2022 293647 149.00 TRAINING-REGISTRATION TUITION 010.4204.5501 U.S. BANKPage 16 of 386 CITY OF ARROYO GRANDECHECK LISTINGAPRIL 16 -APRIL 30, 2022ATTACHMENT 1Line Check Date Check # Amount Description Acct # Vendor Name191 04/22/2022 293647 $ 75.00 TLO-INVESTIGATIVE SVCS 010.4204.5607 U.S. BANK192 04/22/2022 293647 48.92 COVID SUPPLIES 010.4919.5255 U.S. BANK193 04/22/2022 293647 51.49 SLO CLERK RECORDER FILING FEE-CENTRAL COAST 640.5975.7501 U.S. BANK194 04/22/2022 293647 612.17 OFFICE EQUIPMENT- 2 TVS 010.4201.5701 U.S. BANK195 04/22/2022 293647 8.98 MEETING SUPPLIES 010.4101.5504 U.S. BANK196 04/22/2022 293648 273.44 ACCT#472480460-00002 CITY IPAD 010.4145.5403 VERIZON WIRELESS197 04/22/2022 293648 949.14 ACCT#208620661-00002 PD DEPT CELL PHONES 010.4201.5403 VERIZON WIRELESS198 04/22/2022 293649 1,529.45 REMOVE& REPLACE URINAL-RANCHO GRANDE PARK 010.4213.5303 WATERBOYS PLUMBING199 04/22/2022 293649 276.15 URINAL REPAIR-SHORT ST RESTROOM 010.4213.5303 WATERBOYS PLUMBING200 04/22/2022 293650 519.21 COPY MACH LEASE PYMT010.4201.5803 WELLS FARGO VENDOR FINANCIAL201 04/22/2022 293651 227.08 03/09 REPLACE GREEN BALL TRAFFIC WAY & E BRANCH 220.4303.5303 LEE WILSON ELECTRIC COMPANY INC202 04/22/2022 293651 1,440.00 02/22 SIGNAL MAINT 12 INTERSECTIONS 010.4307.5303 LEE WILSON ELECTRIC COMPANY INC203 04/22/2022 293651 60.00 OAK PARK & JAMES WAY 010.4307.5303 LEE WILSON ELECTRIC COMPANY INC204 04/22/2022 293651 60.00 OAK PARK & EL CAMINO REAL 010.4307.5303 LEE WILSON ELECTRIC COMPANY INC205 04/22/2022 293651 75.00 OAK PARK & W BRANCH 010.4307.5303 LEE WILSON ELECTRIC COMPANY INC206 04/22/2022 293652 3,153.50 04/22 POLICE DEPT DUES 011.0000.2116 ARROYO GRANDE POLICE ASSN207 04/22/2022 293653 39,214.01 FEDERAL WITHHOLDING: Payment 011.0000.2104 CITY OF ARROYO GRANDE208 04/22/2022 293653 47,600.04 SOCIAL SECURITY: Payment 011.0000.2105 CITY OF ARROYO GRANDE209 04/22/2022 293653 11,683.82 MEDICARE: Payment 011.0000.2105 CITY OF ARROYO GRANDE210 04/22/2022 293654 15,673.68 STATE WITHHOLDING: Payment 011.0000.2108 CA ST EMPLOYMENT DEVEL DEPT211 04/22/2022 293654 2,092.99 CASDI: Payment011.0000.2111 CA ST EMPLOYMENT DEVEL DEPT212 04/22/2022 293655 695.52 DEPT OF CHILD SUPPORT SERVICES 011.0000.2114 CA STATE DISBURSEMENT UNIT213 04/22/2022 293656 15.00 FIRE ASSN DUES: Payment 011.0000.2115 FIVE CITIES FIREFIGHTERS ASSOC214 04/22/2022 293657 3,360.00 AG CAREER FIREFIGHTERS ASSN DUE: Payment 011.0000.2115 FIVE CITIES PROF. FIREFIGHTERS215 04/22/2022 293658 3,458.76 DEFERRED COMPENSATION - EE %: 011.0000.2117 ICMA RETIREMENT CORP216 04/22/2022 293658 11,538.65 DEFERRED COMPENSATION - EE: Payment 011.0000.2117 ICMA RETIREMENT CORP217 04/22/2022 293658 866.66 DEFERRED COMPENSATION - ER: Payment 011.0000.2117 ICMA RETIREMENT CORP218 04/22/2022 293658 275.00 ROTH - AFTER TAX: Payment 011.0000.2117 ICMA RETIREMENT CORP219 04/22/2022 293659 77.75 04/22 PRE-PAID LEGAL SERVICES:Payment 011.0000.2125 LEGALSHIELD220 04/22/2022 293660 1,174.02 04/22 SEIU DUES: Payment 011.0000.2118 S.E.I.U. LOCAL 620221 04/22/2022 293661 1,404.75 PARS: Payment 011.0000.2107 US BANK OF CALIFORNIA222 04/29/2022 293662 838.96 04/22 SUPPLEMENTAL INSURANCE 011.0000.2126 AFLAC INSURANCE223 04/29/2022 293663 29,524.48 PERS RETIREMENT: Payment 011.0000.2106 PERS - RETIREMENT224 04/29/2022 293663 48,773.77 PERS RETIREMENT: Payment 011.0000.2106 PERS - RETIREMENT225 04/29/2022 293663 117.11 PERS BUYBACK - AFTER TAX: Payment 011.0000.2106 PERS - RETIREMENT226 04/29/2022 293663 1,283.71 PERS Employer Pick Up: Payment 011.0000.2106 PERS - RETIREMENT227 04/29/2022 293663 259.69 PERS BUYBACK - PRE TAX: Payment 011.0000.2106 PERS - RETIREMENT228 04/29/2022 293663 (0.03) ROUNDING DIFFERENCE 010.0000.4818 PERS - RETIREMENTPage 17 of 386 CITY OF ARROYO GRANDECHECK LISTINGAPRIL 16 -APRIL 30, 2022ATTACHMENT 1Line Check Date Check # Amount Description Acct # Vendor Name229 04/29/2022 293664 $ 33.00 WELL #8 BACTI TEST 640.4710.5310 ABALONE COAST ANALYTICAL INC230 04/29/2022 293665 139.00 REFUND-BASKETBALL CAMP010.0000.4605 SHAWNA ALLAN231 04/29/2022 293666 142.67 PRESCHOOL SUPPLIES 010.4423.5253 AMAZON CAPITAL SERVICES232 04/29/2022 293666 1,134.12 SPECIAL EVENT SUPPLIES-EGG HUNT 010.4424.5252 AMAZON CAPITAL SERVICES233 04/29/2022 293666 484.96 SCHOOL YEAR SUPPLIES 010.4425.5255 AMAZON CAPITAL SERVICES234 04/29/2022 293667 27.45 PURCHASE REPLACEMENT PARTS FOR WATER METERS 640.4712.5611 AQUA-METRIC SALES CO(DBA)235 04/29/2022 293667 68.81 PURCHASE REPLACEMENT PARTS FOR WATER METERS 640.4712.5611 AQUA-METRIC SALES CO(DBA)236 04/29/2022 293668 7.01 BLDG MAINT UNIFORMS 010.4213.5143 ARAMARK UNIFORM SERVICES237 04/29/2022 293668 7.01 BLDG MAINT UNIFORMS 010.4213.5143 ARAMARK UNIFORM SERVICES238 04/29/2022 293668 28.50 CORP YARD MATS 010.4213.5303 ARAMARK UNIFORM SERVICES239 04/29/2022 293668 3.51 AUTO SHOP UNIFORMS 010.4305.5143 ARAMARK UNIFORM SERVICES240 04/29/2022 293668 3.51 AUTO SHOP UNIFORMS 010.4305.5143 ARAMARK UNIFORM SERVICES241 04/29/2022 293668 10.45 AUTO SHOP TOWELS 010.4305.5303 ARAMARK UNIFORM SERVICES242 04/29/2022 293668 13.83 PARKS DEPT UNIFORMS 010.4420.5143 ARAMARK UNIFORM SERVICES243 04/29/2022 293668 13.83 PARKS DEPT UNIFORMS 010.4420.5143 ARAMARK UNIFORM SERVICES244 04/29/2022 293668 7.00 SOTO SPORTS COMPLEX UNIFORMS 010.4430.5143 ARAMARK UNIFORM SERVICES245 04/29/2022 293668 7.00 SOTO SPORTS COMPLEX UNIFORMS 010.4430.5143 ARAMARK UNIFORM SERVICES246 04/29/2022 293668 14.00 STREETS DEPT UNIFORMS 220.4303.5143 ARAMARK UNIFORM SERVICES247 04/29/2022 293668 14.00 STREETS DEPT UNIFORMS 220.4303.5143 ARAMARK UNIFORM SERVICES248 04/29/2022 293668 7.01 SEWER DEPT UNIFORMS 612.4610.5143 ARAMARK UNIFORM SERVICES249 04/29/2022 293668 7.01 SEWER DEPT UNIFORMS 612.4610.5143 ARAMARK UNIFORM SERVICES250 04/29/2022 293668 13.47 WATER DEPT UNIFORMS 640.4712.5143 ARAMARK UNIFORM SERVICES251 04/29/2022 293668 13.47 WATER DEPT UNIFORMS 640.4712.5143 ARAMARK UNIFORM SERVICES252 04/29/2022 293669 9.80 PARKS MATS/MOPHEADS 010.4213.5303 ARAMARK UNIFORM SERVICES253 04/29/2022 293670 50.00 PARK DEPOSIT REFUND-ELM ST 010.0000.2206 MARGARITA AYALA254 04/29/2022 293671 158.99 BATTERY- TRASH PUMP 220.4303.5603 BATTERY SYSTEMS255 04/29/2022 293672 100.00 05/18 EMPLOYEE TRAINING 010.4203.5501 BEHAVIORAL ANALYSIS TRAINING256 04/29/2022 293672 575.00 05/02-05/06 EMPLOYEE TRAINING 010.4203.5501 BEHAVIORAL ANALYSIS TRAINING257 04/29/2022 293673 53.34 BUSINESS CARDS- S ALVAREZ 010.4102.5255 BOONE PRINTING & GRAPHICS INC258 04/29/2022 293674 64.00 FINGERPRINT/LIVESCAN -REC 010.4425.5316 CA ST DEPT OF JUSTICE259 04/29/2022 293674 32.00 FINGERPRINT/LIVESCAN-PW WATER 640.4710.5316 CA ST DEPT OF JUSTICE260 04/29/2022 293674 186.00 FINGERPRINT/LIVESCANS-PD 010.4204.5329 CA ST DEPT OF JUSTICE261 04/29/2022 293675 50.00 PARK DEPOSIT REFUND-ELM ST 010.0000.2206 MARIA CAMACHO262 04/29/2022 293676 10.70 PW-60 OIL PAN 640.4712.5255 CARQUEST AUTO PARTS263 04/29/2022 293676 21.35 PW-51 CLEANER/DEGREASER 640.4712.5255 CARQUEST AUTO PARTS264 04/29/2022 293677 180.27 ACCT#8245100960223572 PD TV 010.4145.5401 CHARTER COMMUNICATIONS265 04/29/2022 293677 736.80 ACCT#8245100960211288 PW DARK 010.4145.5401 CHARTER COMMUNICATIONS266 04/29/2022 293677 327.16 ACCT#8245100960216667 WOMENS CENTER 010.4145.5401 CHARTER COMMUNICATIONSPage 18 of 386 CITY OF ARROYO GRANDECHECK LISTINGAPRIL 16 -APRIL 30, 2022ATTACHMENT 1Line Check Date Check # Amount Description Acct # Vendor Name267 04/29/2022 293678 $ 200.00 WASHING MACHINE REBATE 226.4306.5554 LINDA DRUMMY268 04/29/2022 293679 250.00 INVEST INTERVIEW & INTERR. PER DIEM010.4203.5501 ELI ESPARZA269 04/29/2022 293680 7.00 CA 1528836 03/08/22 010.4421.5501 FASTRAK270 04/29/2022 293681 34.50 CA 1528836 03/08/22 010.4421.5501 FASTRAK271 04/29/2022 293682 975.00 SURVEYING SERVICES 010.4301.5303 GARING TAYLOR & ASSOCIATES INC272 04/29/2022 293683 2,286.25 HALCYON COMPLETE STREETS 010.4301.5303 GHD INC273 04/29/2022 293684 5,844.98 PREPARE 2021 ANNUAL REPORT 640.4710.5303 GSI WATER SOLUTIONS274 04/29/2022 293685 154.44 REIMBURSE MILEAGE D-1 EXAM IN BAKERSFIELD 640.4712.5501CHRIS HANSON275 04/29/2022 293686 50.00 PARK DEPOSIT REFUND-HERITAGE SQUARE 010.0000.2206 HARVEST CHURCH276 04/29/2022 293687 1,012.00 CASH FOR GRASS- 1012 SQ FT 226.4306.5554 ANDREW A JENNINGS277 04/29/2022 293688 50.00 PARK DEPOSIT REFUND-STROTHER 010.0000.2206 DUANE LANGSTAFF278 04/29/2022 293688 (2.00) PARK RENTAL-STROTHER 010.0000.4354 DUANE LANGSTAFF279 04/29/2022 293689 50.00 PARK DEPOSIT REFUND-STROTHER 010.0000.2206 TIERZA LITTLE280 04/29/2022 293690 139.00 REFUND-BASKETBALL CAMP010.0000.4605 LAUREN MILLER281 04/29/2022 293691 45.86 GAS SPOUT, GAS CAN, AIR FRESHE 010.4213.5604 MINER'S ACE HARDWARE, INC282 04/29/2022 293691 105.52 (7) AIR FILTERS 010.4213.5604 MINER'S ACE HARDWARE, INC283 04/29/2022 293691 7.71 SWITCHPLATE, SWITCH 010.4213.5604 MINER'S ACE HARDWARE, INC284 04/29/2022 293691 12.91 ODOR ELIMINATOR, UPHOLSTERY CLEANER 010.4213.5604 MINER'S ACE HARDWARE, INC285 04/29/2022 293691 24.77 GARDEN SPRAYER 010.4420.5605 MINER'S ACE HARDWARE, INC286 04/29/2022 293691 42.99 (10) CHAIN COIL 100 FEET 010.4420.5605 MINER'S ACE HARDWARE, INC287 04/29/2022 293691 93.20 PAINT STRIPPER, WRENCH, FACE SHIELD 010.4420.5605 MINER'S ACE HARDWARE, INC288 04/29/2022 293691 58.65 WASHERS 220.4303.5613 MINER'S ACE HARDWARE, INC289 04/29/2022 293691 40.93 DRILL DRIVER SET 220.4303.5613 MINER'S ACE HARDWARE, INC290 04/29/2022 293691 73.05 FASTENERS, WASHERS 220.4303.5613 MINER'S ACE HARDWARE, INC291 04/29/2022 293691 15.54 EYE BOLTS, FASTENERS 220.4303.5613 MINER'S ACE HARDWARE, INC292 04/29/2022 293691 32.30 DRILL BITS 220.4303.5613 MINER'S ACE HARDWARE, INC293 04/29/2022 293691 99.58 WASHERS, FASTENERS, STOP NUTS 220.4303.5613 MINER'S ACE HARDWARE, INC294 04/29/2022 293692 130.00 REFUND-TENNIS CAMP 010.0000.4605 RACHEL NICHOLS295 04/29/2022 293693 1,228.00 REFUND-PRE22-001 APPLIED IN ERROR010.0000.4511 RICHARD NOTT296 04/29/2022 293694 11.92 OFFICE SUPPLIES-HIGHLIGHTERS 010.4102.5201 OFFICE DEPOT297 04/29/2022 293694 267.17 OFFICE SUPPLIES-COPY PAPER, CARDSTOCK 010.4102.5201 OFFICE DEPOT298 04/29/2022 293695 51.48 REIMBURSE EGG HUNT & BUNNYGRAM 010.4424.5252 LINDSEY OVERSTREET299 04/29/2022 293695 151.52 REIMBURSE ADULT BASKETBALL SUPPLIES010.4424.5257 LINDSEY OVERSTREET300 04/29/2022 293696 32.21 ELECTRIC-WELL #11 352 LA CANADA 640.4711.5402 PACIFIC GAS & ELECTRIC CO301 04/29/2022 293697 50.00 PARK DEPOSIT REFUND-RANCHO GRANDE 010.0000.2206 APRIL SARGEANT302 04/29/2022 293698 50.00 PD-PRE-EMPLOYMENT CREDIT CHECK 010.4201.5315 SERVICE FIRST INFORMATION303 04/29/2022 293699 406.70 PW-51 PERMIT FOR AUX. ENGINE 612.4610.5610 SLO COUNTY AIR POLLUTION304 04/29/2022 293700 139.00 REFUND-BASKETBALL CAMP010.0000.4605 BREANA STACHURAPage 19 of 386 CITY OF ARROYO GRANDECHECK LISTINGAPRIL 16 -APRIL 30, 2022ATTACHMENT 1Line Check Date Check # Amount Description Acct # Vendor Name305 04/29/2022 293701 $ 180.90 STENCIL, SAFETY GLASSES220.4303.5255 STATEWIDE SAFETY & SIGNS INC306 04/29/2022 293702 70.00 D-1 OPERATOR CERTIFICATE 640.4712.5501 SWRCB-DWOCP307 04/29/2022 293703 52.95 CHARTER BUSINESS TV-300 E BRANCH 010.4145.5401 TIME WARNER CABLE308 04/29/2022 293704 16,418.53 03/22 TBID ONLINE MEDIA MARKET 240.4150.5301 VERDIN MARKETING INK309 04/29/2022 293705 122.25 WALLACE STORMWATER MGMT 010.4301.5303 WALLACE GROUP A CALIF CORP310 04/29/2022 293706 50.00 PARK DEPOSIT REFUND-RANCHO GRANDE 010.0000.2206 LESLIE WALZ311 04/29/2022 293707 600.00 PLUMBING RETROFIT- 503 PLATINO 226.4306.5303 WATERBOYS PLUMBING312 04/29/2022 293708 139.00 REFUND-BASKETBALL CAMP 010.0000.4605KAYLA YOUNG $ 839,802.94 Page 20 of 386 ATTACHMENT 2 . General Fund 329,752.81 5101 Salaries Full time 220,060.90 Streets Fund 15,096.65 5101 Volunteer Employee Retirement - American Rescue Plan Act - 5102 Salaries Part-Time - PPT 4,594.88 Sewer Fund 8,864.61 5103 Salaries Part-Time - TPT 13,875.46 Water Fund 17,065.14 5105 Salaries OverTime 6,900.09 370,779.21 5106 Salaries Strike Team OT - 5107 Salaries Standby 1,692.80 5108 Holiday Pay 341.31 5109 Sick Pay 2,257.06 5110 Annual Leave Buyback - Administrative Services - 5111 Vacation Buyback - Information Services - 5112 Sick Leave Buyback - Community Development - 5113 Vacation Pay 7,715.94 Police 5,808.87 5114 Comp Pay 3,869.69 Public Works - Maintenance 750.48 5115 Annual Leave Pay 5,586.35 Public Works - Enterprise 340.74 5116 Salaries - Police FTO - Recreation - Administration - 5121 PERS Retirement 29,335.04 Recreation - Special Events - 5122 Social Security 19,523.51 Children In Motion - 5123 PARS Retirement 280.97 6,900.09 5126 State Disability Ins. 934.60 5127 Deferred Compensation 741.66 5131 Health Insurance 46,413.54 5132 Dental Insurance 2,783.46 5133 Vision Insurance 723.14 5134 Life Insurance 374.28 5135 Long Term Disability 674.41 5137 Leave Payouts - 5142 Unemployment Insurance - 5143 Uniform Allowance - 5144 Car Allowance 837.50 5146 Council Expense - 5147 Employee Assistance - 5148 Boot Allowance - 5149 Motor Pay 137.62 5150 Bi-Lingual Pay 150.00 5151 Cell Phone Allowance 975.00 370,779.21 OVERTIME BY DEPARTMENT: Total FCFA payroll cost for this period is $186,640.90. FCFA payroll and accounts payable expenditures are processed as part of the JPA financial services agreement between Arroyo Grande, Grover Beach and Oceano Community Services District. Arroyo Grande's portion of the FCFA annual budget is identified in the contractual services budget. CITY OF ARROYO GRANDE DEPARTMENTAL LABOR DISTRIBUTION PAY PERIOD 04/01/2022 - 04/14/2022 4/22/2022 BY FUND BY ACCOUNT Page 21 of 386 1 Item 8.b. ACTION MINUTES REGULAR MEETING OF THE CITY COUNCIL May 10, 2022, 6:00 p.m. Hybrid City Council Chamber/Virtual Zoom Meeting 215 East Branch Street, Arroyo Grande Council Members Present: Mayor Ray Russom, Mayor Pro Tem George, Council Member Barneich, Council Member Paulding, Council Member Storton Staff Present: City Clerk Jessica Matson, City Attorney Timothy Carmel, City Manager Whitney McDonald, Assistant City Manager/Public Works Director Bill Robeson, Administrative Services Director Nicole Valentine, Community Development Director Brian Pedrotti, Recreation Services Director Sheridan Bohlken, Chief of Police Michael Martinez Given the recent increase in COVID-19 cases in San Luis Obispo County, and in compliance with Assembly Bill (AB) 361, which allows for a deviation of teleconference rules required by the Ralph M. Brown Act, this meeting was conducted in a hybrid in-person/virtual format. _____________________________________________________________________ 1. CALL TO ORDER Mayor Ray Russom called the Regular City Council Meeting to order at 6:00 p.m. 2. ROLL CALL City Clerk Matson took call. 3. MOMENT OF REFLECTION 4. FLAG SALUTE Mayor Ray Russom led the flag salute. 5. AGENDA REVIEW 5.a. Closed Session Announcements None. Page 22 of 386 2 Item 8.b. 5.b. Ordinances read in title only None. 6. SPECIAL PRESENTATIONS 6.a. Update Regarding Countywide COVID-19 Efforts City Manager McDonald provided a brief update on COVID-19. Mayor Ray Russom invited public comment. No public comments were received. No action was taken on this item. 6.b. City Manager Communications City Manager McDonald discussed upcoming items for Council consideration. Mayor Ray Russom invited public comment. No public comments were received. No action was taken on this item. 6.c. Honorary Proclamation Declaring May 11-17, 2022 as "National Police Week" and May 15, 2022 as "National Peace Officers' Memorial Day" Mayor Ray Russom read the Honorary Proclamation Declaring May 11-17, 2022 as "National Police Week" and May 15, 2022 as "National Peace Officers' Memorial Day". Sr. Officer Elia Esparza, Arroyo Grande Police Department, accepted the proclamation. Mayor Ray Russom invited public comment. No public comments were received. No action was taken on this item. 7. COMMUNITY COMMENTS AND SUGGESTIONS Mayor Ray Russom invited public comment. Speaking from the public was Kris Rudabush. No further public comments were received. 8. CONSENT AGENDA Mayor Ray Russom asked the Council if there were any questions or any items to be pulled from the consent agenda for further discussion. Mayor Ray Russom requested Item 8.j. be pulled for separate vote. Mayor Ray Russom invited public comment. No public comments were received. Moved by Council Member Storton Seconded by Council Member Barneich Approve Consent Agenda Items 8.a. through 8.i., with the exception of Item 8.j., with the recommended courses of action. Page 23 of 386 3 Item 8.b. AYES (5): Mayor Ray Russom, Mayor Pro Tem George, Council Member Barneich, Council Member Paulding, and Council Member Storton Passed (5 to 0) 8.a. Consideration of Cash Disbursement Ratification Ratified the listing of cash disbursements for the period of April 1 through April 15, 2022. 8.b. Consideration of Statement of Investment Deposits Received and filed the report listing investment deposits of the City of Arroyo Grande as of March 31, 2022, as required by Government Code Section 53646(b). 8.c. Consideration of Fiscal Year 2021-22 Third Quarter Financial Status Report Received, considered, and filed the FY 2021-22 Third Quarter Financial Status Report. 8.d. Consideration of a Resolution Declaring Surplus Property Adopted a Resolution entitled: "A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ARROYO GRANDE DECLARING CERTAIN PROPERTY AS SURPLUS AND AUTHORIZING ITS DISPOSAL". 8.e. Approval of Minutes Approved the minutes of the Regular City Council Meeting of April 26, 2022, as submitted. 8.f. Consideration of Adoption of a Resolution Declaring a Continued Local Emergency Related to the COVID-19 Pandemic and Authorizing the Continuance of Remote Teleconference Meetings of the Legislative Bodies Pursuant to Government Code Section 54953(e)(3) Adopted a Resolution entitled: "A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ARROYO GRANDE DECLARING A CONTINUED LOCAL EMERGENCY RELATED TO THE CORONAVIRUS (COVID-19) PANDEMIC AND AUTHORIZING THE CONTINUANCE OF REMOTE TELECONFERENCE MEETINGS OF THE LEGISLATIVE BODIES OF THE CITY OF ARROYO GRANDE PURSUANT TO GOVERNMENT CODE SECTION 54953(e)". 8.g. Consideration of Authorization to Sign a Letter by REACH and the Diablo Canyon Power Plant (DCPP) MOU Stakeholder Group in Support of Reuse Opportunities at the Diablo Canyon Power Plant Site Authorized the Mayor to sign the letter from REACH and the DCPP MOU stakeholder group, on behalf of the City, in support of reuse opportunities at the DCPP site. 8.h. Consideration of Approval of Construction Specifications for the Wood Place, Farroll/Sandalwood, Sandalwood/Cameron, & Woodland Back Yards Sewer Lining Project and Associated California Environmental Quality Act Exemption, PW 2021-10 Page 24 of 386 4 Item 8.b. 1) Approved the construction specifications for the Wood Place, Farroll/Sandalwood, Sandalwood/Cameron, & Woodland Back Yards Sewer Lining Project, PW 2021-10; 2) Authorized staff to advertise for construction bids; 3) Found that the project is categorically exempt from the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Section 15301(b); and 5) Directed the City Clerk to file a Notice of Exemption 8.i. Consideration of Engineer’s Reports and Resolutions Declaring the City’s Intention to Levy and Collect Assessments for the Parkside and Grace Lane Assessment Districts, and Landscaping and Lighting District No. 1, Within Tract 1769, for FY 2022-23 1) Approved the Engineer’s Reports for the Parkside Village Assessment District, Grace Lane Assessment District, and Landscaping and Lighting Assessment District No. 1, within Tract 1769, for Fiscal Year 2022-2023; 2) Adopted Resolutions entitled: "A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ARROYO GRANDE DECLARING ITS INTENTION TO LEVY AND COLLECT ANNUAL ASSESSMENTS RELATED TO THE PARKSIDE VILLAGE ASSESSMENT DISTRICT FOR FISCAL YEAR 2022-2023"; "A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ARROYO GRANDE DECLARING ITS INTENTION TO LEVY AND COLLECT ANNUAL ASSESSMENTS RELATED TO THE GRACE LANE ASSESSMENT DISTRICT FOR FISCAL YEAR 2022-2023"; and "A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ARROYO GRANDE DECLARING ITS INTENTION TO LEVY AND COLLECT ANNUAL ASSESSMENTS RELATED TO THE ARROYO GRANDE LANDSCAPING AND LIGHTING ASSESSMENT DISTRICT NO. 1, WITHIN TRACT 1769, FOR FISCAL YEAR 2022-2023"; and 3) Set a public hearing for June 14, 2022 at 6:00 p.m. for the Parkside Village Assessment District, Grace Lane Assessment District, and Landscaping and Lighting Assessment District No. 1, within Tract 1769, to consider levying the property assessments. 8.j. Consideration of a Resolution Supporting the Application for Funding from the Department of Transportation’s Multimodal Project Discretionary Grant Opportunity for the US 101/Brisco-Halcyon Road Interchange Modification Project Item 8.j. was pulled for separate vote. Moved by Council Member Barneich Seconded by Council Member Storton Adopted a Resolution entitled: "A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ARROYO GRANDE SUPPORTING THE APPLICATION FOR FUNDING FROM THE DEPARTMENT OF TRANSPORTATION’S MULTIMODAL PROJECT DISCRETIONARY GRANT FUNDING REQUEST FOR THE US 101/BRISCO-HALCYON ROAD INTERCHANGE MODIFICATION PROJECT" and designated the City Manager or their designee as the City’s signature authority to take all actions necessary to seek and apply for the funding opportunities through this grant program. AYES (4): Mayor Pro Tem George, Council Member Barneich, Council Member Paulding, and Council Member Storton NOES (1): Mayor Ray Russom Page 25 of 386 5 Item 8.b. Passed (4 to 1) 9. PUBLIC HEARINGS None. 10. OLD BUSINESS 10.a. Consideration of Updated Council Goals and Priorities for Fiscal Year 2022-23 City Manager McDonald presented the staff report and recommended that Council approve the proposed updated City Council's Goals and Priorities for Fiscal Year 2022-23. City Manager McDonald and City Clerk Matson responded to questions from Council. Council discussion ensued regarding the City pursuing a State Water initiative. Based on Council discussion, Mayor Ray Russom requested staff include the initiative on the draft Fiscal Year 2023-24 City Council's Goals and Priorities for future consideration. Council Member Barneich requested staff provide an update on additional Diversity, Equity, Inclusion, and Justice efforts at a future meeting. Mayor Ray Russom invited public comment. Speaking from the public was Patty Welsh. No further public comments were received. Moved by Mayor Pro Tem George Seconded by Council Member Storton Approve the proposed updated City Council’s Goals and Priorities for Fiscal Year 2022-23. AYES (5): Mayor Ray Russom, Mayor Pro Tem George, Council Member Barneich, Council Member Paulding, and Council Member Storton Passed (5 to 0) 11. NEW BUSINESS 11.a. Discussion and Consideration of the Current and Future Short Street Status and Pedestrian Plaza and Park Conceptual Design and Adoption of a Resolution Authorizing the Continued Closure of Short Street Community Development Director Pedrotti presented the staff report and recommended that Council 1) Receive the updated proposed sample concept plan, receive public comment, and provide staff direction to move forward with further evaluation of a conceptual plan along with a cost analysis and public feedback; and 2) Provide staff with direction to implement an intermediate design plan for Short Street that includes adoption of a Resolution to continue closure of Short Street and use as a pedestrian and public area. Director Pedrotti and Assistant City Manager/Public Works Director Robeson answered questions from Council. Mayor Ray Russom invited public comment. Speaking from the public were Patty Welsh, Luz, and Frank Schiro. No further public comments were received. Page 26 of 386 6 Item 8.b. Moved by Mayor Pro Tem George Seconded by Mayor Ray Russom Receive the updated proposed sample concept plan, receive public comment, and provide staff direction to move forward with further evaluation of a conceptual plan along with a cost analysis and public feedback. AYES (5): Mayor Ray Russom, Mayor Pro Tem George, Council Member Barneich, Council Member Paulding, and Council Member Storton Passed (5 to 0) Moved by Mayor Ray Russom Seconded by Council Member Barneich Adopt a Resolution entitled: "A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ARROYO GRANDE AUTHORIZING THE CONTINUED TEMPORARY CLOSURE OF SHORT STREET SOUTH OF EAST BRANCH STREET AND NORTH OF OLOHAN ALLEY TO ACCOMMODATE ITS USE AS A PEDESTRIAN AND PUBLIC AREA". Mayor Pro Tem George left the meeting and was not present for the vote. AYES (4): Mayor Ray Russom, Council Member Barneich, Council Member Paulding, and Council Member Storton ABSENT (1): Mayor Pro Tem George Passed (4 to 0) 11.b. Consideration of Approval of a Child Care Assistance Grant Program Mayor Ray Russom called for a brief break at 7:54 p.m. The Council reconvened at 8:00 p.m. Recreation Director Bohlken presented the staff report and recommended that Council approve the proposed Child Care Assistance Grant Program, including direction regarding program components, and authorize the City Manager to execute grant agreements with grant recipients. Director Bohlken answered questions from Council. Mayor Ray Russom invited public comment. Speaking from the public was Shana Paulson. No further public comments were received. Moved by Council Member Paulding Seconded by Mayor Pro Tem George Consider and approve the proposed Child Care Assistance Grant Program, including direction regarding program components, and authorize the City Manager to execute grant agreements with grant recipients. Page 27 of 386 7 Item 8.b. AYES (5): Mayor Ray Russom, Mayor Pro Tem George, Council Member Barneich, Council Member Paulding, and Council Member Storton Passed (5 to 0) 12. COUNCIL COMMUNICATIONS Mayor Ray Russom stated that she will be absent at the meeting of June 28, 2022. Brief discussion ensued whether or not to cancel the meeting. Mayor Ray Russom also reported that the CJPIA received an unmodified opinion for their audit. 13. CLOSED SESSION None. 14. ADJOURNMENT There being no further business to come before the City Council, Mayor Ray Russom adjourned the meeting at 8:11 p.m. _________________________ Caren Ray Russom, Mayor ATTEST: _________________________ Jessica Matson, City Clerk Page 28 of 386 1 Item 8.b. ACTION MINUTES SPECIAL MEETING OF THE CITY COUNCIL May 18, 2022, 4:00 p.m. City Council Chamber 215 E Branch Street, Arroyo Grande Council Members Present: Mayor Ray Russom, Mayor Pro Tem Paulding, Council Member Barneich, Council Member Storton, Council Member George Staff Present: City Clerk Jessica Matson, City Attorney Timothy Carmel, City Manager Whitney McDonald Given the recent increase in COVID-19 cases in San Luis Obispo County, and in compliance with Assembly Bill (AB) 361, which allows for a deviation of teleconference rules required by the Ralph M. Brown Act, this meeting was held by teleconference. _____________________________________________________________________ 1. CALL TO ORDER Mayor Ray Russom called the Special City Council Meeting to order at 4:00 p.m. 2. ROLL CALL City Clerk Matson took roll call. 3. FLAG SALUTE Mayor Ray Russom led the flag salute. 4. PUBLIC COMMENT ON CLOSED SESSION ITEMS Mayor Ray Russom invited public comment on Closed Session items. No public comments were received. 5. CLOSED SESSION The City Council recessed to a closed session for the following: a) PUBLIC EMPLOYEE PERFORMANCE EVALUATION pursuant to Government Code Section 54957: Title: City Manager The City Council adjourned to Closed Session at 4:02 p.m. Page 29 of 386 2 Item 8.b. The City Attorney will report out any actions taken during Closed Session at the next regular City Council meeting. 6. ADJOURNMENT There being no further business to come before the City Council, Mayor Ray Russom adjourned the meeting at 6:02 p.m _________________________ Caren Ray Russom, Mayor ATTEST: _________________________ Jessica Matson, City Clerk Page 30 of 386 Item 8.c. MEMORANDUM TO: City Council FROM: Jessica Matson, Legislative & Information Services Director/City Clerk SUBJECT: Consideration of Resolutions for the 2022 General Municipal Election for the Election of Certain Officers of the City DATE: May 24, 2022 SUMMARY OF ACTION: Calling and giving notice of the City’s General Municipal Election to be held on November 8, 2022, for the election of one Councilmember for District 1, one Councilmember for District 4, and an at-large Mayor; a request to the County of San Luis Obispo for consolidation of the election; and adoption of regulations pertaining to submittal of a candidate statement. IMPACT ON FINANCIAL AND PERSONNEL RESOURCES: Funding for the November 2022 General Municipal Election has been included in the Fiscal Year 2022-23 Budget in the amount of $28,000, based on the estimate received from the San Luis Obispo County Clerk’s office. RECOMMENDATION: 1) Adopt a Resolution calling and giving notice of the holding of a General Municipal Election to be held on Tuesday, November 8, 2022, for the election of certain officers of the City; 2) Adopt a Resolution requesting the Board of Supervisors of the County of San Luis Obispo to consolidate a General Municipal Election to be held on November 8, 2022; and 3) Adopt a Resolution adopting regulations for candidates governing the submittal of a Candidate Statement. BACKGROUND: Historically in Arroyo Grande, the Mayor and City Council members were elected in at- large elections where each of the four Council Members and the Mayor were elected by the registered voters of the entire City. On October 2, 2019, the City received a “Notice of Violation of California Voting Rights Act” and a report from attorney Robert Goodman, brought on behalf of Maria Minicucci, asserting that the City’s at -large method of conducting elections may violate the California Voting Rights Act (the “Act”) and threatening litigation if the City did not voluntarily transition to a district-based election system. Page 31 of 386 Item 8.c. City Council Consideration of Resolutions for the 2022 General Municipal Election for the Election of Certain Officers of the City May 24, 2022 Page 2 On October 16, 2019, after consideration of the information filed in the Notice of Violation, the City Council adopted Resolution No. 4949 (Attachment 4) declaring its intent to transition from at-large to district-based elections by November 2022 and entered into a Settlement Agreement with Ms. Minicucci. While the Act requires public entities complying with Elections Code Section 10010 and agreeing to transition to district-based elections to do so in an expedited fashion, Ms. Minicucci agreed to allow the City to defer implementation of the district-based election system until the November 2022 election if the City was willing to enter into a Settlement Agreement to that effect. On April 12, 2022, after a series of public hearings and workshops in 2021 and 2022, the City Council adopted Ordinance 713 (Attachment 5) establishing a by-district election system and created district boundaries. In November 2022, elect ors in Districts 1 and 4 will vote for a City Councilmember from their district. In November 2024, electors in Districts 2 and 3 will vote for a City Councilmember from their district. The Mayor will continue to be elected by registered voters of the entire City (at-large). State law establishes the dates when general law cities conduct municipal elections for the purpose of electing members of the City Council. The office of Council Member is a four-year term, with terms expiring at staggered intervals (i.e., terms of office for two members of the City Council are scheduled to expire every two years). The office of Mayor is a two-year term pursuant to a voter-approved measure adopted in 1982. The California Elections Code establishes procedures and requirements for conducting a General Municipal Election. As the first step in the election process, certain Resolutions must be adopted by the City Council. ANALYSIS OF ISSUES: Pursuant to Municipal Code Section 1.08.010, the City of Arroyo Grande will conduct a General Municipal Election on the same day as, and consolidated with, the Statewide General Election. The Statewide General Election is held on the first Tuesday after the first Monday in November in even numbered years. This year, the date of the Statewide General Election is Tuesday, November 8, 2022. The request for consolidation must be submitted to the County Board of Supervisors no later than August 12, 2022 (at least 88 days prior to the date of the election). By consolidating the election with other jurisdictions in the County, costs to the City to conduct the election are substantially reduced. Following the election, the County invoices the City for its proportional share of the costs. The estimated cost of $28,000 for the 2022 General Election has been included in the FY 2022-23 Budget. The printing of candidate statements in the sample ballot booklet is also included in the City’s election costs. Since 2008, the City has sought full cost recovery from the candidate for the publication of a candidate statement pursuant to State law, since the publication Page 32 of 386 Item 8.c. City Council Consideration of Resolutions for the 2022 General Municipal Election for the Election of Certain Officers of the City May 24, 2022 Page 3 of a candidate statement is optional and not a requirement. This is a consistent practice among most California cities. It is recommended that the word count limit be set at 200 words per statement, consistent with previous elections. The City requires an initial deposit at the time a candidate files his/her nomination papers. Candidates are then invoiced (or sent a refund) after the County calculates the sh are of costs for printing/mailing of the sample ballot booklet for each agency and candidate. In 2022, the terms of Council Member Jimmy Paulding, Council Member Keith Storton, and Mayor Caren Ray Russom are expiring. The nomination period for candidates running for a seat on the City Council for the District 1 City Council Member position, the District 4 City Council Member position, and for Mayor is Monday, July 18, 2022, through Friday, August 12, 2022. If an incumbent does not file nomination papers and qualify by the close of the nomination period, the filing period is extended for non-incumbents for five (5) days pursuant to State law. Candidates for the District 1 City Council Member and District 4 City Council Me mber seats must live in the districts for which they are nominated. ALTERNATIVES: The following alternatives are provided for the Council’s consideration: 1. Adopt the Resolutions pertaining to the 2022 Municipal Election; or 2. Provide other direction to staff. ADVANTAGES: Adoption of the proposed Resolutions will meet the provisions required by the California Elections Code for calling and giving notice of a General Municipal Election, requesting the services of the County to conduct a consolidated election, and setting forth regulations for candidates pertaining to the filing of candidate statements. DISADVANTAGES: There are no identified disadvantages related to adoption of the proposed Resolutions as they are required by State law in order to conduct a Consolidated General Municipal Election in the City. ENVIRONMENTAL REVIEW: No environmental review is required for this item. PUBLIC NOTIFICATION AND COMMENTS: The Agenda was posted at City Hall and on the City’s website in accordance with Government Code Section 54954.2. A Notice of Election will be published in the newspaper pursuant to the timeline prescribed by the Elections Code. Page 33 of 386 Item 8.c. City Council Consideration of Resolutions for the 2022 General Municipal Election for the Election of Certain Officers of the City May 24, 2022 Page 4 Attachments: 1. Proposed Resolution – Calling and Giving Notice of the November 8, 2022 Election 2. Proposed Resolution – Consolidation with the County 3. Proposed Resolution – Regulations for Candidate Statements 4. Resolution 4949 5. Ordinance 713 6. April 12, 2022 Staff Report Page 34 of 386 ATTACHMENT 1 RESOLUTION NO. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ARROYO GRANDE, CALIFORNIA, CALLING FOR THE HOLDING OF A GENERAL MUNICIPAL ELECTION TO BE HELD ON TUESDAY, NOVEMBER 8, 2022, FOR THE ELECTION OF CERTAIN OFFICERS AS REQUIRED BY THE PROVISIONS OF THE LAWS OF THE STATE OF CALIFORNIA RELATING TO GENERAL LAW CITIES WHEREAS, under the provisions of the laws relating to General Law Cities in the State of California, a General Municipal Election shall be held on November 8, 2022, for the election of Municipal Officers. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Arroyo Grande as follows: 1. That pursuant to the requirements of the laws of the State of California relating to General Law Cities, there is called and ordered to be held in the City of Arroyo Grande, California, on Tuesday, November 8, 2022, a General Municipal Election for the purpose of electing an at-large Mayor for the full term of two years, one Member of the City Council for District 1 for the full term of four years, and one Member of the City Council for District 4 for the full term of four years. 2. That the ballots to be used at the election shall be in form and content as required by law. 3. That the City Clerk is authorized, instructed, and directed to coordinate with the County of San Luis Obispo County Clerk-Recorder to procure and furnish any and all official ballots, notices, printed matter and all supplies, equipment and paraphernalia that may be necessary in order to properly and lawf ully conduct the election. 4. That the polls for the election shall be open at seven o'clock a.m. on the day of the election and shall remain open continuously from that time until eight o'clock p.m. of the same day when the polls shall be closed, pursuant to Election Code Section 10242, except as provided in Section 14401 of the Elections Code of the State of California. 5. That in all particulars not recited in this Resolution, the election shall be held and conducted as provided by law for holding municipal elections. 6. That notice of the time and place of holding the election is given and the City Clerk is authorized, instructed and directed to give further or additional notice of the election, in the time, form, and manner as required by law. Page 35 of 386 RESOLUTION NO. PAGE 2 7. That in the event of a tie vote (if any two or more persons receive an equal and the highest number of votes for an office) as certified by the County of San Luis Obispo County Clerk-Recorder, the City Council, in accordance with Election Code Section 15651(a), shall set a date, time, and place and summon the candidates who have received the tie votes to appear and will determine the tie by lot. 8. That the City Clerk shall certify to the passage and adoption of this Resolution and enter it into the book of original Resolutions. 9. The City Council authorizes the City Clerk to administer said election and all reasonable and actual election expenses shall be paid by the City upon presentation of a properly submitted bill. On motion of Council Member _______, seconded by Council Member ________, and on the following roll call vote, to wit: AYES: NOES: ABSENT: the foregoing Resolution was passed and adopted this 24th day of May, 2022. Page 36 of 386 RESOLUTION NO. PAGE 3 __________________________________ CAREN RAY RUSSOM, MAYOR ATTEST: __________________________________ JESSICA MATSON, CITY CLERK APPROVED AS TO CONTENT: ____________________________________ WHITNEY McDONALD, CITY MANAGER APPROVED AS TO FORM: __________________________________ TIMOTHY J. CARMEL, CITY ATTORNEY Page 37 of 386 ATTACHMENT 2 RESOLUTION NO. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ARROYO GRANDE, CALIFORNIA, REQUESTING THE BOARD OF SUPERVISORS OF THE COUNTY OF SAN LUIS OBISPO TO CONSOLIDATE A GENERAL MUNICIPAL ELECTION TO BE HELD ON NOVEMBER 8, 2022, WITH THE STATEWIDE GENERAL ELECTION TO BE HELD ON THE SAME DATE PURSUANT TO SECTION 10403 OF THE ELECTIONS CODE WHEREAS, the City Council of the City of Arroyo Grande called a General Municipal Election to be held on Tuesday, November 8, 2022, for the purpose of the election of an at-large Mayor, one (1) Member of the City Council for District 1, and one (1) Member of the City Council for District 4; and WHEREAS, it is desirable that the General Municipal Election be consolidated with the Statewide General Election to be held on the same date and that within the City the precincts, polling places and election officers of the two elections be the same, and that the County Elections Division of the County of San Luis Obispo canvass the returns of the General Municipal Election and that the election be held in all respects as if there were only one election. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Arroyo Grande as follows: 1. That pursuant to the requirements of Section 10403 of the Elec tion Code, the Board of Supervisors of the County of San Luis Obispo is hereby requested to consent and agree to the consolidation of a General Municipal Election with the Statewide General Election on Tuesday, November 8, 2022, for the purpose of the election of an at-large Mayor, one (1) Member of the City Council for District 1, and one (1) Member of the City Council for District 4. 2. That the Elections Division of the County Clerk-Recorder’s Office is authorized to canvass the returns of the General Municipal Election. The election shall be held in all respects as if there were only one election, and only one form of ballot shall be used. The election will be held and conducted in accordance with the provisions of law regulating the Statewide election. 3. That the Board of Supervisors is requested to issue instructions to the Elections Division of the County Clerk-Recorder’s Office to take any and all steps necessary for the holding of the consolidated election. 4. That the City of Arroyo Grande recognizes that additional costs will be incurred by the County by reason of this consolidation and agrees to reimburse the County for any such additional costs. Page 38 of 386 RESOLUTION NO. PAGE 2 5. That the City Clerk is hereby directed to file a certified copy of this Resolution with the Board of Supervisors and the Elections Division of the San Luis Obispo County Clerk-Recorder’s Office. 6. That the City Clerk shall certify to the passage and adoption of this Resolution and enter it into the book of original Resolutions. On motion of Council Member ______, seconded by Council Member _______, and on the following roll call vote, to wit: AYES: NOES: ABSENT: the foregoing Resolution was passed and adopted this 24th day of May, 2022. Page 39 of 386 RESOLUTION NO. PAGE 3 __________________________________________ CAREN RAY RUSSOM, MAYOR ATTEST: __________________________________________ JESSICA MATSON, CITY CLERK APPROVED AS TO CONTENT: __________________________________________ WHITNEY McDONALD, CITY MANAGER APPROVED AS TO FORM: __________________________________________ TIMOTHY J. CARMEL, CITY ATTORNEY Page 40 of 386 ATTACHMENT 3 RESOLUTION NO. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ARROYO GRANDE, CALIFORNIA, ADOPTING REGULATIONS FOR CANDIDATES FOR ELECTIVE OFFICE PERTAINING TO CANDIDATES STATEMENTS SUBMITTED TO THE VOTERS AT AN ELECTION TO BE HELD ON TUESDAY, NOVEMBER 8, 2022 WHEREAS, Section 13307 of the Elections Code of the State of California provides that the governing body of any local agency may adopt regulations pertaining to materials prepared by any candidate for a municipal election, including costs of the candidates statement. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Arroyo Grande as follows: 1. That the following regulations are hereby adopted regarding candidate statements for candidates for elective office in the City of Arroyo Grande: A. GENERAL PROVISIONS. That pursuant to Section 13307 of the Elections Code of the State of California, each candidate for elective office to be voted for at an Election to be held in the City of Arroyo Grande on November 8, 2022, may prepare a candidate’s statement on an appropriate form provided by the City Clerk. The statement may include the name, age, and occupation of the candidate and a brief description of no more than 200 words of the candidate’s education and qualifications expressed by the candidate himself or herself. The statement shall not include party affiliation of the candidate, nor membership or activity in partisan political organizations. The statement shall be filed in typewritten form in the office of the City Clerk at the time the candidate’s nomination papers are filed. The statement may be withdrawn, but not changed, during the period for filing nomination papers and until 5:00 p.m. of the next working day after the close of the nomination period. B. FOREIGN LANGUAGE POLICY. The San Luis Obispo County Clerk-Recorder’s Office shall have translated into Spanish only those statements as requested by the candidate, and print any translation(s) of candidates who so request printing in the voter pamphlet. C. PAYMENT. i) The candidate shall be required to pay for the cost of printing the candidates statement in English in the voter’s pamphlet. ii) The candidate shall be required to pay for the cost of translating and printing the candidates statement into the foreign language, pursuant to State law. iii)The San Luis Obispo County Clerk-Recorder’s Office shall estimate the total cost of printing, handling, translating, and mailing the candidates statements filed pursuant to this Section, and the City Clerk shall require each candidate filing a statement to pay in advance to the City his or her estimated pro rata share as a condition of having his or her statement included in the voter’s pamphlet. The Page 41 of 386 RESOLUTION NO. PAGE 2 estimate is just an approximation of the actual costs that varies from one election to another election and may be significantly more or less than the estimate, depending on the actual number of candidates filing statements. Accordingly, the City Clerk is not bound by the estimate and may, on a pro rata basis, bill the candidate for additional actual expense or refund any excess paid, depending on the final actual cost. In the event of underpayment, the Clerk may require the candidate to pay the balance of the cost incurred. In the event of overpayment, the City Clerk shall prorate the excess amount among the candidates and refund the excess amount paid within thirty (30) days of the receipt of the final invoice from the County. D. ADDITIONAL MATERIALS. No candidate will be permitted to include additional materials in the sample ballot package. 2. That the City Clerk shall provide each candidate or the candidate’s representative a copy of this Resolution at the time nominating petitions are issued. 3. That this Resolution shall apply only to the election to be held on November 8, 2022 and shall then be repealed. 4. That the City Clerk shall certify to the passage and adoption of this Resolution and enter it into the book of original Resolutions. On motion of Council Member , seconded by Council Member , and on the following roll call vote, to wit: AYES: NOES: ABSENT: the foregoing Resolution was passed and adopted on this 24th day of May, 2022. Page 42 of 386 RESOLUTION NO. PAGE 3 _____________________________________ CAREN RAY RUSSOM, MAYOR ATTEST: _____________________________________ JESSICA MATSON, CITY CLERK APPROVED AS TO CONTENT: _____________________________________ WHITNEY McDONALD, CITY MANAGER APPROVED AS TO FORM: _____________________________________ TIMOTHY J. CARMEL, CITY ATTORNEY Page 43 of 386 Attachment 4 Page 44 of 386 Page 45 of 386 Page 46 of 386 ORDINANCE NO. 713 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF ARROYO GRANDE, ADDING CHAPTER 2.21 TO TITLE 2 OF THE CITY OF ARROYO GRANDE MUNICIPAL CODE ESTABLISHING BY-DISTRICT ELECTIONS FOR FOUR COUNCIL MEMBERS, DEFINING DISTRICT BOUNDARIES, AND SCHEDULING THE ORDER OF ELECTION FOR EACH DISTRICT WHEREAS, the City of Arroyo Grande (“City”) currently elects four (4) Council members and one (1) Mayor using an at-large election system; and WHEREAS, in response to threatened litigation regarding alleged non-compliance with the California Voting Rights Act (“CVRA”), the City Council of the City of Arroyo Grande (“City Council”) has determined that it is in the best interest of the City to shift from its current at-large election system to a by-district election system for four (4) Council members and to continue electing the mayor at-large; and WHEREAS, on October 22, 2019 the City Council adopted Resolution No. 4949, declaring the City’s intention to transition from at-large to district-based elections for Council members pursuant to Elections Code Section 10010; and WHEREAS, California Government Code section 34886 permits the City Council to change the City’s method of election by ordinance, with certain formalities, to require the members of the legislative body to be elected by district with an elective mayor; and WHEREAS, pursuant to California Government Code section 34886, it is declared that the purpose of this change in the method of electing Council members is to further the purposes of the California Voting Rights Act of 2001, (California Elections Code section 14025 et seq.) and implement the guarantees of Section 7 of Article I and of Section 2 of Article II of the California Constitution; and WHEREAS, the City engaged an expert demographic firm to assist the City with the process of analyzing the City’s population, developing draft maps, and gathering input from residents on the possible maps; and WHEREAS, in accordance with Elections Code section 10010, the City Council held two (2) public hearings to obtain input on proposed district boundaries on July 27, 2021 and August 10, 2021; and WHEREAS, the City conducted public workshops on September 18, 2021 and October 28, 2021 on the proposed district maps and made presentations to eight (8) community organizations; and WHEREAS, on February 15, 2022, the City posted all draft maps submitted by the public on its website for public review; and ATTACHMENT 5 Page 47 of 386 ORDINANCE NO. 713 PAGE 2 WHEREAS, on March 1, 2022, the City posted four (4) Council-selected focus district maps prepared by its demographer on its website for public review; and WHEREAS, at its regular meetings on February 22, 2022, March 8, 2022 and March 22, 2022, the City Council held three (3) additional public hearings at which the public was invited to provide input regarding the draft maps and the sequence of district elections; and WHEREAS, at its March 8, 2022, meeting, the City Council provided direction to staff to bring back this Ordinance with a designated draft district map for the consideration of the City Council; and WHEREAS, on March 22, 2022, the City Council introduced, read by title, and waived further reading of this Ordinance; and WHEREAS, the City Council has satisfied all legal prerequisites to the enactment of this Ordinance; and WHEREAS, the purpose of this Ordinance is to enact, pursuant to California Government Code section 34886, an ordinance providing for the election of Council members by- district in four (4) single-member districts, as reflected in Exhibit A to this Ordinance, and the election of a Mayor by an at-large election. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF ARROYO GRANDE DOES HEREBY ORDAIN AS FOLLOWS: SECTION 1. Incorporation of Recitals. The above recitals are true and correct and are incorporated herein by this reference. SECTION 2. Chapter 2.21 entitled “Elections” is hereby added to Title 2 of the City of Arroyo Grande Municipal Code. SECTION 3. At-Large Election of Mayor. Section 2.21.010 of Chapter 2.21 is hereby added to Title 2 of the City of Arroyo Grande Municipal Code to read as follows: At-Large Election of Mayor. The mayor shall be elected at-large and have a term of two (2) years. At a general municipal election in 1982, the voters determined to have an elected mayor who should serve a term of two (2) years. Page 48 of 386 ORDINANCE NO. 713 PAGE 3 SECTION 4. By-District Elections. Section 2.21.020 is hereby added to Chapter 2.21 of Title 2 of the City of Arroyo Grande Municipal Code to read as follows: By-District Elections of Council members. A. Pursuant to California Government Code section 34886, four (4) members of the City Council of the City of Arroyo Grande shall be elected by-district in separate single-member districts. 1. Members of the City Council shall be elected in the electoral districts established by subdivision B of this Section, as may be subsequently reapportioned pursuant to State law. Elections shall take place “by district” as that term is defined in California Government Code section 34871, meaning one Council member shall be elected from each district, by the voters of that district alone. 2. Any candidate for City Council must reside in, and be a registered voter in, the district in which he or she seeks election at the time nomination papers are issued. Any Council member elected or appointed to the seat of a specific district must reside in that district and be a registered voter in that district for his or her full term of office. 3. Termination of residency in a district by a Council member shall create a vacancy for that City Council district unless a substitute residence within the district is declared and established within thirty (30) days after the termination of residency. 4. Notwithstanding any other provision of this section, the Council members in office at the time this section takes effect shall continue in office until the expiration of the term to which they were elected. In the event a vacancy occurs during a Council member’s term, the vacancy shall be filled pursuant to the provisions of Government Code section 36512 (b). B. City Council Districts and District Elections. Four (4) Council members shall be elected on a “by-district” basis from the Council districts shown and numbered on the map titled ‘City of Arroyo Grande District Map’ attached as Exhibit A, a copy of which shall be on file in the City Clerk’s office. In 2022, and every four (4) years thereafter, the following two (2) City Council districts shall be elected by-district: District 1 and District 4. In 2024, and every four (4) years thereafter, the following two (2) City Council districts shall be elected by-district: District 2 and District 3. C. Amendment of District Boundaries. Pursuant to Elections Code section 21601, as it may be amended from time to time, the City Council shall adjust the boundaries of any or all of the districts following each decennial federal census to ensure that the districts are in compliance with all applicable provisions of law. Page 49 of 386 ORDINANCE NO. 713 PAGE 4 SECTION 5. CEQA. Based upon the whole of the administrative record before it, the City Council hereby finds that a transition from at-large to by-district elections is exempt from environmental review under the California Environmental Quality Act (“CEQA”) (Pub. Resources Code, §21000 et seq.) pursuant to State CEQA Guidelines (Cal. Code Regs., tit. 14, §15000 et seq.) sections 15061(b)(3), 15320, and 15378(b)(3). Adoption of this Ordinance is an organizational and administrative activity of the City, does not have the potential to result in either a direct or reasonably foreseeable indirect physical change in the environment, and is therefore not a project for purposes of CEQA. (State CEQA Guidelines, §§15061(b)(3); 15378(b)(5).) In the event adoption of this Ordinance does constitute a project, it is categorically exempt under the Class 20 (Changes in the Organization of Local Governments) categorical exemption. (State CEQA Guidelines, §15320.) Further, none of the exceptions to the exemptions found in State CEQA Guidelines Section 15300.2 apply. Staff is hereby directed to prepare, execute and file with the San Luis Obispo County Clerk a CEQA Notice of Exemption within five (5) working days of the adoption of this Ordinance. SECTION 6. Severability. If any provision of this Ordinance or the application thereof to any person or circumstance is for any reason held to be invalid or unconstitutional by a decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this Ordinance. The City Council hereby declares that it would have passed this Ordinance and each and every section, subsection, sentence, clause, or phrase not declared invalid or unconstitutional without regard to whether any portion of the ordinance would be subsequently declared invalid or unconstitutional. SECTION 7. Effective Date. Pursuant to Government Code section 36937(a), this Ordinance shall take effect immediately upon adoption. SECTION 8. Publication. A summary of this Ordinance shall be published in a newspaper published and circulated in the City of Arroyo Grande at least five (5) days prior to the City Council meeting at which the proposed Ordinance is to be adopted. A certified copy of the full text of the proposed Ordinance shall be posted in the office of the City Clerk. Within fifteen (15) days after adoption of the Ordinance, the summary with the names of those City Council members voting for and against the Ordinance shall be published again, and the City Clerk shall post a certified copy of the full text of such adopted Ordinance. On motion by Council Member Storton, seconded by Council Member Barneich, and by the following roll call vote to wit: AYES: Council Members Storton, Barneich, Paulding, and Mayor Pro Tem George NOES: Mayor Ray Russom ABSENT: None the foregoing Ordinance was adopted this 12th day of April, 2022.   Page 50 of 386 Page 51 of 386 ORDINANCE NO. 713 PAGE 6 Page 52 of 386 . ... ·- ·OFFICIAL. CERTIFICATION 1, · JESSICA-MATSON,--City Clerk of "the City of Arroyo· Grande, Couhty of San Luis Obispo, State of California, do hereby certify-under penalty of perjury, that the attached Ordinance No._ 713 which was intro duced at a regular meeting of the City Council on March 22, 2022; was passed and adopted at a regular meeting of the City Council on the 12th day of April 2022; and was duly published in accordance with State law (G.C .. 40806). WITNESS my hand and the Seal of the City of Arroyo Grande affixed this 14th day of April, 2022. . ' . ' JESSICA MATSON, CITY CLERK ·-.. •.· : ' Page 53 of 386 ITEM 8.c.: Attachment 6 – April 12, 2022 Staff Report Attachment 6 is available as a link: https://pub- arroyogrande.escribemeetings.com/filestream.ashx?DocumentId=1998 Page 54 of 386 Item 8.d. MEMORANDUM TO: City Council FROM: Whitney McDonald, City Manager Timothy J. Carmel, City Attorney SUBJECT: Consideration of Adoption of a Resolution Declaring a Continued Local Emergency Related to the Coronavirus (COVID-19) Pandemic DATE: May 24, 2022 SUMMARY OF ACTION: Adoption of the Resolution will continue the declared local emergency related to the COVID-19 pandemic. IMPACT ON FINANCIAL AND PERSONNEL RESOURCES: There are no direct fiscal impacts related to the proposed ac tion; however, adoption of the Resolution will facilitate the ability for the City to request resources including financial support and reimbursement from the State Office of Emergency Services and the Federal Emergency Management Agency for costs incurred in preparation and/or response to the COVID-19 pandemic. RECOMMENDATION: Adopt a Resolution declaring a continued local emergency related to the Coronavirus (COVID-19) pandemic. BACKGROUND: As the City Council is aware, in accordance with Section 8.12.060 of the Arroyo Grande Municipal Code, the former City Manager, in his capacity as the Director of Emergency Services, proclaimed a local emergency on March 16, 2020, regarding th e COVID-19 pandemic. The City Council ratified the proclamation at its regular meeting on March 24, 2020, and adopted resolutions declaring a continued local emergency since that time as the pandemic has persisted. ANALYSIS OF ISSUES: Arroyo Grande Municipal Code Section 8.12.065(C) provides that the City Council is to “Review the need for a continuing emergency declaration at regularly scheduled meetings at least every twenty-one (21) days until the emergency is terminated.” Accordingly, the City Council has adopted the appropriate Resolutions declaring a continued local Page 55 of 386 Item 8.d. City Council Consideration of Adoption of a Resolution Declaring a Continued Local Emergency Related to the Coronavirus (COVID-19) Pandemic May 24, 2022 Page 2 emergency related to the coronavirus (COVID-19) pandemic within the required 21-day time period since the ratification of the proclamation at its March 24, 2020 regular meeting. This item is being presented to the City Council to satisfy the requirements of Section 8.12.065(C). Given the ongoing state of emergency proclaimed by the Governor, the ongoing public health orders issued by the State, and the ongoing work required of City staff to respond to the pandemic and these proclamations and orders, it is recommended that the City Council adopt the Resolution declaring the need to continue the emergency declaration. The San Luis Obispo County (County) Public Health Officer and the County Emergency Services Director terminated the County’s emergency declarations with respect to the COVID-19 pandemic on February 25, 2022. However, a statewide emergency declaration issued by the Governor remains in place related to the pandemic. In light of the ongoing statewide emergency, the ongoing impacts associated with the coronavirus within the Arroyo Grande community and the City organization, it is recommended that the City Council continue the declared local emergency. ALTERNATIVES: The following alternatives are provided for the Council’s consideration: 1. Adopt the Resolution declaring the need to continue the declared local emergency; or 2. Provide other direction to staff. ADVANTAGES: Adoption of the Resolution will satisfy the requirement of the Arroyo Grande Municipal Code regarding the periodic review of the declared local emergency related to the COVID- 19 pandemic. DISADVANTAGES: No disadvantages have been identified to adopting the Resolution. ENVIRONMENTAL REVIEW: No environmental review is required for this item. PUBLIC NOTIFICATION AND COMMENTS: The Agenda was posted at City Hall and on the City’s website in accordance with Government Code Section 54954.2. Attachments: 1. Proposed Resolution Page 56 of 386 ATTACHMENT 1 RESOLUTION NO. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ARROYO GRANDE DECLARING A CONTINUED LOCAL EMERGENCY RELATED TO THE CORONAVIRUS (COVID- 19) PANDEMIC WHEREAS, in accordance with Section 8.12.060 of the Arroyo Grande Municipal Code, the former City Manager, in his capacity as the Director of Emergency Services proclaimed a local emergency on March 17, 2020, regarding the COVID-19 pandemic; and WHEREAS, the City Council ratified the emergency proclamation through adoption of Resolution No. 4974 at its regular meeting on March 24, 2020; and WHEREAS, Arroyo Grande Municipal Code Section 8.12.065(C) provides that the City Council is to review the need for a continuing emergency declaration at regularly scheduled meetings at least every twenty-one (21) days until the emergency is terminated; and WHEREAS, the City Council has adopted Resolutions declaring a continued local emergency related to the coronavirus (COVID-19) pandemic on April 14, April 28, May 12, May 26, June 9, June 23, July 14, August 11, August 25, September 8, September 22, October 13, October 27, November 10, November 24, December 8, 2020, January 12, January 26, February 9; February 23; March 9, March 23, April 13, April 27, May 11, May 25, June 8, June 22, July 27, August 10, August 24, September 14, September 28, October 12, October 26, November 9, November 23, December 14, 2021, January 11, January 25, February 8, February 22, March 8, March 22, April 12, April 26, and May 10, 2022; and WHEREAS, the Secretary of Health and Human Services Director issued a Determination that a Public Health Emergency Exists and has existed as of January 27, 2020 ; and WHEREAS, the President of the United States declared a State of National Emergency; the Governor of the State of California has proclaimed a State of Emergency for the State of California and issued Executive Orders and direction regarding measures to mitigate the spread of cases of COVID-19 within the State of California and all recitals set forth therein, are included as though fully set forth herein; and WHEREAS, the COVID-19 pandemic continues to spread rapidly worldwide and in the U.S., continuing to present an immediate and significant risk to public health and safety, and resulting in serious illness or death to vulnerable populations, including the elderly and those with underlying health conditions. Page 57 of 386 RESOLUTION NO. PAGE 2 NOW, THEREFORE BE IT RESOLVED by the City Council of the City of Arroyo Grande that: 1. All recitals set forth above, are true, correct and incorporated herein. 2. A local emergency is declared to continue to exist throughout the City of Arroyo Grande, and the City has been undertaking, and will continue through termination of this emergency to undertake necessary measures and incur necessary costs, which are directly related to the prevention of the spread of COVID -19 and are taken in furtherance of: the Secretary of Health and Human Services’ determination that a public health emergency has existed since January 27, 2020; the Governor’s Proclamation of a State of Emergency on March 4, 2020; the President of the United States’ Declaration of a National Emergency on March 13, 2020; and related orders and directives. On motion of Council Member _______________________, seconded by Council Member _______________________, and by the following roll call vote, to wit: AYES: NOES: ABSENT: The foregoing Resolution was approved this 24th day of May, 2022. Page 58 of 386 RESOLUTION NO. PAGE 3 CAREN RAY RUSSOM, MAYOR ATTEST: JESSICA MATSON, CITY CLERK APPROVED AS TO CONTENT: WHITNEY MCDONALD, CITY MANAGER APPROVED AS TO FORM: TIMOTHY J. CARMEL, CITY ATTORNEY Page 59 of 386 Item 8.e. MEMORANDUM TO: City Council FROM: Whitney McDonald, City Manager Bill Robeson, Assistant City Manager/Public Works Director BY: Sarah Lansburgh, Deputy City Clerk SUBJECT: Consideration of Authorizing the Display of the LGTBQ+ Pride Flag During the Month of June 2022 at Heritage Square Park and at City Hall DATE: May 24, 2022 SUMMARY OF ACTION: Authorize the display of the LGTBQ+ Pride Flag (“Pride Flag”) at Heritage Square Park and at City Hall during the month of June, 2022 in recognition of LGTBQ+ Pride Month . IMPACT ON FINANCIAL AND PERSONNEL RESOURCES: There is no financial impact and minimal impact on personnel resources related to authorizing the display of the Pride Flag. RECOMMENDATION: Authorize the display of the Pride Flag during the month of June 2022 at Heritage Square Park and at City Hall. BACKGROUND: On September 22, 2020, the City Council adopted a set of Top 10 Priorities for Fiscal Year 2020-21 identifying the Council’s major goals. One of the identified priorities was to “develop and implement a Council-adopted goal to promote diversity, equity, and inclusion.” A similar goal and priority was included in the Fiscal Year 2021 -22 Council Goals and Priorities adopted with the Fiscal Years 2021-23 Biennial Budget, which stated a goal to “adopt and implement Diversity, Equity, and Inclusion initiatives.” At a City Council meeting in early 2021, Council Member Barneich requested that City Council consider displaying the commemorative LGBTQ+ Pride Flag at City Hall. At the time, the City did not have a Council-adopted policy regarding the display of such flags or the display of commemorative flags. In response, City staff prepared a Resolution (Attachment 1) to adopt a City Flag Display Policy relating to the display of flags for Council’s consideration at the May 25, 2021 City Council meeting. Following disc ussion, Page 60 of 386 Item 8.e. City Council Consideration of Authorizing the Display of the LGTBQ+ Pride Flag During the Month of June 2022 at Heritage Square Park and at City Hall May 24, 2022 Page 2 the Policy was modified and adopted by the City Council. The adopted Flag Display Policy outlines the procedures and standards for the display of flags at City facilities, including the display of commemorative flags at City Hall and Heritage Square Park. As set forth in the policy, commemorative flags may only be displayed after being authorized by 4/5 members of the City Council and as an expression of the City’s official sentiments. Upon City Council authorization of the display of a commemorative flag, the City will display it at City Hall and/or Heritage Square Park during the designated period. Also during the May 25, 2021 City Council meeting, the City Council authorized the display of the commemorative Pride Flag during the month of June 202 1, at Heritage Square Park, where the first Five Cities Pride Celebration occurred in 2019, and at City Hall. At the January 11, 2022 City Council meeting, the City Council adopted Resolution 5142 which adopted a Diversity, Equity, Inclusion, and Justice Policy” (Attachment 2), acknowledging the City’s commitment to the principles of diversity, equity, inclusion, and justice and to implement measures to support greater inclusivity for the community. ANALYSIS OF ISSUES: City Hall has two flag poles and the City of Arroyo Grande has historically displayed the United States Flag, the California State Flag, and the Arroyo Grande City Flag. The United States Flag is also displayed at other City facilities such as the Recreation Services Building at Elm Street Park and at the Corporate Yard. The Police Station also has three flag poles that can be used to display flags. As stated in the adopted Flag Display Policy, the City’s flagpoles are not intended to serve as a forum for free expression by the public. Rather, the City's flagpoles are to be used exclusively by the City, where the City Council may display a commemorative flag as a form of government expression. The City will not display a commemorative flag based on a request from a third party, nor will the City use its flagpoles to sponsor the expression of a third party. Instead, the policy states that such flag, as an expression of the City’s official sentiments, must be requested by a member of the City Council itself. The Government Speech Doctrine, defined by the United States Supreme Court, establishes that a government organization, such as the City of Arroyo Grande, may advance its own expression without requiring viewpoint neutrality when the government itself is the speaker, so long as its expression does not show religious preference or encourage a certain vote in an election. Therefore, the City could act, based on the Policy, to display a commemorative flag as a form of government expression, so long as the commemorative flag does not show religious preference or encourage a certain vote in an election. Consequently, if the City Council authorizes display of a commemorative flag, Page 61 of 386 Item 8.e. City Council Consideration of Authorizing the Display of the LGTBQ+ Pride Flag During the Month of June 2022 at Heritage Square Park and at City Hall May 24, 2022 Page 3 the display of the commemorative flag would be an exercise of government expression, where the City is the speaker (i.e., government speech). Council Members Storton and Barneich have requested that the City Council consider authorizing the display of the commemorative Pride Flag. According to the Library of Congress, Lesbian, Gay, Bisexual and Transgender Pride Month (“LGBTQ+ Pride Month”) is currently celebrated each year in the month of June to honor the 1969 Stonewall riots in New York City. The Stonewall riots were a tipping point for the Gay Liberation Movement in the United States. In the United States, the last Sunday in June was initially celebrated as “Gay Pride Day,” although the actual day was flexible. Eventually, in major cities across the nation, “Gay Pride Day” grew t o encompass a month-long series of events. Today, celebrations include pride parades, picnics, parties, workshops, symposia and concerts. Memorials are also held for those members of the community who have been lost to hate crimes or HIV/AIDS. The purpose of the commemorative month is to recognize the impact that lesbian, gay, bisexual, transgender, and queer individuals have had on history locally, nationally, and internati onally. Display of the Pride Flag is consistent with the adopted Diversity, Equity, Inclusion, and Justice Policy and the Fiscal Year 2021-22 Council Goals and Priorities. ALTERNATIVES: The following alternatives are provided for the Council’s consideration: 1. Authorize the display of the Pride Flag at Heritage Square Park and at City Hall during the month of June, 2022. 2. Do not authorize display of the Pride Flag; or 3. Provide other direction to staff. ADVANTAGES: Authorizing display of the Pride Flag in recognition of LGTBQ+ Pride Month will commemorate an important social movement. The display of the Pride Flag also demonstrates the City’s commitment to diversity, equity, inclusion, and justice. DISADVANTAGES: No disadvantages have been identified. ENVIRONMENTAL REVIEW: No environmental review is required for this item. PUBLIC NOTIFICATION AND COMMENTS: The Agenda was posted at City Hall and on the City’s website in accordance with Government Code Section 54954.2. Page 62 of 386 Item 8.e. City Council Consideration of Authorizing the Display of the LGTBQ+ Pride Flag During the Month of June 2022 at Heritage Square Park and at City Hall May 24, 2022 Page 4 Attachments: 1. Resolution 5083 – Adopting a Policy on Display of Flags 2. Resolution 5142 - Adopting a Diversity, Equity, Inclusion and Justice Policy Page 63 of 386 ATTACHMENT 1 Page 64 of 386 Page 65 of 386 Page 66 of 386 Page 67 of 386 Page 68 of 386 Page 69 of 386 Page 70 of 386 RESOLUTION NO. 5142 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ARROYO GRANDE ADOPTING A DIVERSITY, EQUITY, INCLUSION, AND JUSTICE POLICY WHEREAS, it is the mission of the City to make Arroyo Grande the best place possible for everyone who lives, works, and visits; and WHEREAS, the City is committed to supporting diversity, equity, inclusion, and justice, in all facets of society; and WHEREAS, the City of Arroyo Grande does not currently have a policy specifically stating its commitment to diversity, equity, inclusion, and justice; and WHEREAS, the City Council desires to establish a diversity, equity, inclusion, and justice DEIJ) policy that provides guidance and standards for the City to model and implement the aforementioned objectives within the community and the City organization; and WHEREAS, in adopting this policy, the City Council declares that it is vital to assume the responsibility to face the challenges and seize opportunities created by diversity, and to identify opportunities in policies, regulations, and guidance to address systemic inequities. NOW, THEREFORE BE IT RESOLVED by the City Council of the City of Arroyo Grande that: 1. All recitals set forth and above, are true, correct and incorporated herein. 2. The Diversity, Equity, Inclusion, and Justice (DEIJ) Policy, attached hereto as Exhibit A and incorporated herein, is hereby adopted. 3. This Resolution shall be effective immediately upon its adoption. On motion of Council Member Storton, seconded by Council Member Paulding, and on the following roll call vote, to wit: AYES: Council Members Storton, Paulding, Barneich, George, and Mayor Ray Russom NOES: None ABSENT: None the foregoing Resolution was passed and adopted this 11th day of January, 2022. ATTACHMENT 2 Page 71 of 386 RESOLUTION NO. 5142 PAGE 2 CAREN R USSOM, MAYOR ATTEST: JESSICA MATSON, CITY CLERK APPROVED AS TO CONTENT: te • WHITNEY MC,IDONALD, 11TY MANAGER APPROVED AS TO FORM: C TIMOTHY J. CARMEL, CITY ATTORNEY Page 72 of 386 Exhibit A CITY OF ARROYO GRANDE DIVERSITY, EQUITY, INCLUSION, AND JUSTICE POLICY POLICY: The City is committed to supporting diversity, equity, inclusion, and justice (DEIJ) in all facets of society, the principles of which include fairness of treatment, recognition of rights, acceptance of responsibilities, commitment to equity and justice, and dedication to expanding opportunities for all. The mission of the City is to make Arroyo Grande the best place possible for everyone who lives, works, and visits here. Valuing diversity is a core City principle that will be practiced and communicated at all levels of the organization. PURPOSE: Members of our community face challenges and opportunities related to their race, religion, gender, ethnicity, language, age, sexual orientation and gender identity, socioeconomic background, and diverse abilities. It is important for members of our community and the City as a whole to assume the responsibility of facing the challenges and seizing the opportunities created by diversity, and to identify opportunities in policies, regulations, and guidance to address systemic inequities. Inclusion and equity do not seek to 'treat everyone the same,' but recognize that everyone is different, that there are strengths inherent in those differences, and that people's needs are met in different ways. This can be as a resident, visitor, City Council Member, City Advisory Body Member, or employee. Diversity awareness recognizes that each individual is unique, engendering recognition, respect, and celebration of the added value that differences bring. DEFINITIONS: Diversity Diversity refers to the variety of similarities and differences between people based on which they experience advantages or encounter barriers to opportunities, including but not limited to: gender, gender identity, ethnicity, race, native or indigenous origin, age, generation, sexual orientation, culture, religion/belief system, marital status, parental status, socio-economic status, appearance, language and accent, physical and mental ability, mental health, education, geography, and nationality. Equity Equity refers to the consistent and systematic, fair, just, and impartial treatment of all individuals, seeking to ensure that all people have access to the same opportunities and resources while recognizing that people do not all start from the same place due to systemic and individual advantages and barriers. Page 73 of 386 POLICY #: DIVERSITY, EQUITY, INCLUSION, AND JUSTICE PAGE 2 Inclusion Inclusion seeks to support people with different identities to feel valued and welcomed within a given setting, including fostering a sense of belonging by centering and amplifying the voices, perspectives, and styles of those who experience more barriers based on their identities. Justice Justice refers to the practice of directly dismantling barriers to resources and opportunities in society so that all individuals and communities can live a full and dignified life. IMPLEMENTATION: The City is committed to modeling and implementing diversity, equity, inclusion, and justice within the community and the City organization, and will do so through measures that include but are not limited to the following: A. Provide informed, authentic leadership supporting diversity, equity, inclusion, and justice by: 1. Connecting diversity, equity, inclusion, and justice to the City's mission as critical principles to ensure the well-being of the City's employees and the community; 2. Acknowledging and dismantling inequities within the City's policies, systems, programs, and services, including continual review and updates to support ongoing progress; 3. Embedding language in the City's plans, policies, and goals consistent with the intent of this Policy to promote diversity, equity, inclusivity, and justice; 4. Exploring potential underlying, unquestioned assumptions that interfere with diversity, equity, inclusivity, and justice; 5. Advocating for and supporting executive team-level thinking about how systemic inequities impact the City's work, and how best to address these inequities in a way that is consistent with the City's mission and this Policy; 6. Challenging assumptions about what it takes to be a strong leader within the City organization and who is well-positioned to provide leadership; 7. Practicing and encouraging transparent and inclusive communication in all interactions, including focus on and commitment to reducing and preventing incidents of prejudice; 8. Committing time and resources to expand diverse leadership opportunities within the City Council, employees, committees, and advisory bodies, including outreach to diverse social and professional organizations and publications; 9. Championing diversity, equity, inclusivity, and justice by leading with respect, awareness, and acceptance; 10.Committing to keeping current on "best practices" that take place in other cities and government jurisdictions, and partnering with other cities in sharing information and efforts; Page 74 of 386 POLICY #: DIVERSITY, EQUITY, INCLUSION, AND JUSTICE PAGE 3 11.Expecting all employees to exemplify this Policy in all workplace interactions and through everyday practices. B. Abide by the following to help promote diversity and inclusion in the workplace: 1. Pursue cultural competency throughout the organization by creating substantive learning opportunities and formal, transparent policies; 2. Pursue and evaluate quantitative and qualitative research related to justice, equity, diversity, and inclusion initiatives and barriers to guide the implementation of effective measures; 3. Make incremental, measurable progress toward the visibility of the City's diversity, equity, inclusion, and justice efforts; 4. Improve the City's cultural leadership pipeline by creating and supporting programs and policies fostering leadership that reflects the full diversity of American society; 5. Identify and incorporate DEIJ efforts and components in the City's recruitment, retention, and training efforts; 6. Pool resources and expand offerings for underrepresented communities by connecting with other organizations committed to DEIJ efforts; 7. Develop and present sessions internally on DEIJ to provide education and resources and to support full implementation of this Policy; 8. Promote opportunities for organizations, businesses, and advocacy groups to share information with the City and with each other regarding the changing realties of the workforce and workplace; 9. Be intentional in bringing awareness and consciousness of bias during the hiring, promoting, and/or evaluating process and institute practices to increase DEIJ in all aspects of recruitment and retention; 10.Advocate for public and private-sector policies that DEIJ and challenge systems and policies that create inequity, oppression, and disparity. C. Promote inclusive outreach to diverse communities by: 1. Identifying traditionally underrepresented or marginalized communities within the City and developing and implementing strategies to increase effective communication and engagement; 2. Regularly conferring with representatives of diversity groups to better understand and support the community and to ensure ongoing application and review of this Policy; 3. Work with community partners to support opportunities for professional leadership and DEIJ training for small businesses within the City; 4. Intentionally incorporate DEIJ initiatives into the City's economic development efforts, including support for small and diverse businesses; 5. Evaluating barriers to participation in decision-making processes by traditionally underrepresented or marginalized communities and developing mechanisms to reduce identified barriers; 6. Fostering an environment of inclusivity in internal and public-facing events, meetings, and processes through intentional application of this Policy. Page 75 of 386 OFFICIAL CERTIFICATION I, JESSICA MATSON, City Clerk of the City of Arroyo Grande, County of San Luis Obispo, State of California, do hereby certify under penalty of perjury, that the attached Resolution No. 5142 was passed and adopted at a regular meeting of the City Council of the City of Arroyo Grande on the 11th day of January, 2022. WITNESS my hand and the Seal of the City of Arroyo Grande affixed this 13th day of January, 2022. JESSICA MATSON, CITY CLERK Page 76 of 386 Item 8.f. MEMORANDUM TO: City Council FROM: Whitney McDonald, City Manager Bill Robeson, Assistant City Manager/Public Works Director BY: Sarah Lansburgh, Deputy City Clerk SUBJECT: Consideration of Authorizing the Display of the Juneteenth Flag During the week of June 17-24, 2022 at City Hall DATE: May 24, 2022 SUMMARY OF ACTION: Authorization of the display of the Juneteenth Flag at City Hall for the week beginning on June 17 through June 24, 2022 in recognition of the Juneteenth National Independence Day. IMPACT ON FINANCIAL AND PERSONNEL RESOURCES: There is no financial impact and minimal impact on personnel resources related to authorizing the display of the Juneteenth Flag. RECOMMENDATION: Authorize the display of the Juneteenth Flag for the week beginning on June 17 through June 24, 2022, at City Hall. BACKGROUND: At a City Council meeting in early 2021, Council Member Barneich requested that City Council consider displaying the commemorative LGBTQ+ Pride Flag at City Hall. At the time, the City did not have a Council-adopted policy regarding the display of such flags or the display of commemorative flags. In response, City staff prepared a Resolution (Attachment 1) to adopt a City Flag Display Policy relating to the display of flags for Council’s consideration at the May 25, 2021 City Council meeting. Following discussion, the Policy was modified and adopted by the City Council. The adopted Flag Display Policy outlines the procedures and standards for the display of flags at City facilities, including the display of commemorative flags at City Hall and Heritage Square Park. As set forth in the policy, commemorative flags may only be displayed after being authorized by 4/5 members of the City Council and as an expression Page 77 of 386 Item 8.f. City Council Consideration of Authorizing the Display of the Juneteenth Flag During the week of June 17-24, 2022 at City Hall May 24, 2022 Page 2 of the City’s official sentiments. Upon City Council authorization of the display of a commemorative flag, the City will display it at City Hall and/or Heritage Square Park during the designated period. Juneteenth marks the day when federal troops arrived in Galveston, Texas in 1865 to take control of the state and ensure that all enslaved people be freed. Juneteenth honors the end of slavery in the United States and is con sidered the longest-running African American holiday. Juneteenth became a state holiday in Texas in 1980, and a number of other states subsequently followed suit. On June 17, 2021, President Joe Biden signed the Juneteenth National Independence Day Act into law. Juneteenth is observed on June 19th each year, commemorating the emancipation of the last enslaved African Americans in Texas on June 19, 1865. ANALYSIS OF ISSUES: City Hall has two flag poles and the City of Arroyo Grande has historically displayed the United States Flag, the California State Flag, and the Arroyo Grande City Flag. The United States Flag is also displayed at other City facilities such as the Recreation Services Building at Elm Street Park and at the Corporate Yard. The Police Station also has th ree flag poles that can be used to display flags. The City’s flagpoles are not intended to serve as a forum for free expression by the public. Rather, the City's flagpoles are to be used exclusively by the City, where the City Council may display a commemorative flag as a form of government expression. The City will not display a commemorative flag based on a request from a third party, nor will the City use its flagpoles to sponsor the expression of a third party. Instead, the policy states that such flag, as an expression of the City’s official sentiments, must be requested by a member of the City Council itself. The Government Speech Doctrine, defined by the United States Supreme Court, establishes that a government organization, such as the City of Arr oyo Grande, may advance its own expression without requiring viewpoint neutrality when the government itself is the speaker, so long as its expression does not show religious preference or encourage a certain vote in an election. Therefore, the City could act, based on the Policy, to display a commemorative flag as a form of government expression, so long as the commemorative flag does not show religious preference or encourage a certain vote in an election. Consequently, if the City Council authorizes display of a commemorative flag, the display of the commemorative flag would be an exercise of government expression, where the City is the speaker (i.e., government speech). Council Members Storton and Barneich have requested that the City Council consider authorizing the display of the commemorative Juneteenth Flag. The Juneteenth Flag uses Page 78 of 386 Item 8.f. City Council Consideration of Authorizing the Display of the Juneteenth Flag During the week of June 17-24, 2022 at City Hall May 24, 2022 Page 3 the red, white, and blue of the United States flag to signify that enslaved people in the United States and their descendants all were and are Americans. The white star a nd its burst symbol on the flag represent newness and freedom. An image of the Juneteenth flag is provided below. ALTERNATIVES: The following alternatives are provided for the Council’s consideration: 1. Authorize the display of the Juneteenth Flag during the week of June 17-24, 2022 at City Hall. 2. Do not authorize display of the Juneteenth Flag; or 3. Provide other direction to staff. ADVANTAGES: The display of the Juneteenth Flag represents the commemoration of the end of slavery in America, and the signing of S. 475 establishing Juneteenth National Independence Day, June 19, as a legal public holiday. The display of the Juneteenth Flag demonstrates the City’s commitment to diversity, equity, inclusivity, and justice. DISADVANTAGES: No disadvantages have been identified by displaying the Juneteenth Flag. ENVIRONMENTAL REVIEW: No environmental review is required for this item. PUBLIC NOTIFICATION AND COMMENTS: The Agenda was posted at City Hall and on the City’s website in accordance with Government Code Section 54954.2. Page 79 of 386 Item 8.f. City Council Consideration of Authorizing the Display of the Juneteenth Flag During the week of June 17-24, 2022 at City Hall May 24, 2022 Page 4 Attachments: 1. Resolution 5083 and City of Arroyo Grande Policy on Display of Flags Page 80 of 386 ATTACHMENT 1 Page 81 of 386 Page 82 of 386 Page 83 of 386 Page 84 of 386 Page 85 of 386 Page 86 of 386 Page 87 of 386 Item 8.g. MEMORANDUM TO: City Council FROM: Whitney McDonald, City Manager Timothy J. Carmel, City Attorney SUBJECT: Consideration of Adoption of a Resolution Approving the Second Amended and Restated Joint Powers Agreement to Establish an Integrated Waste Management Authority for the Cities of San Luis Obispo County, California DATE: May 24, 2022 SUMMARY OF ACTION: Adopt a Resolution Approving the Second Amended and Restated Joint Powers Agreement to Establish an Integrated Waste Management Authority for the Cities of San Luis Obispo County, California (IWMA). IMPACT ON FINANCIAL AND PERSONNEL RESOURCES: There is no direct fiscal impact as a result of this item. However, a proposed rate increase request by South County Sanitary is currently being reviewed, a required Proposition 218 notice was sent to all Arroyo Grande residents, and a public hearing will be held on June 14, 2022, to consider the requested rate increase. The increase includes language related an increase to the IWMA’s fees, which are anticipated to rise by 5.4% effective July 1, 2022. RECOMMENDATION: Adopt a Resolution Approving the Second Amended and Restated Joint Powers Agreement to Establish an Integrated Waste Management Authority for the Cities of San Luis Obispo County, California (the “Second Amended JPA”). BACKGROUND: The Integrated Waste Management Authority (IWMA or Authority) is a Joint Powers Authority that previously was comprised of the County of San Luis Obispo (County), the seven cities (Arroyo Grande, Atascadero, Grover Beach, Morro Bay, Paso Robles, Pismo Beach, and San Luis Obispo) and numerous special districts (the Avila Beach, California Valley, Cambria, Ground Squirrel Hollow, Heritage Ranch, Los Osos, Nipomo, Oceano, San Miguel, Nipomo, San Simeon, and Templeton Community Services Districts, and the Cayucos Sanitary District). The IWMA had been governed by a First Amended Joint Page 88 of 386 Item 8.g. City Council Consideration of Adoption of a Resolution Approving the Second Amended and Restated Joint Powers Agreement to Establish an Integrated Waste Management Authority for the Cities of San Luis Obispo County, California May 24, 2022 Page 2 Powers Agreement (JPA) entered into by the County and the seven cities. A Memorandum of Agreement (MOA) between the IWMA’s member jurisdictions and the special districts in the County with activated solid waste powers has governed the identified special districts’ participation in the IWMA. The IWMA was previously governed by a thirteen-member Board of Directors consisting of all five County Supervisors, one elected representative from each of the seven cities, and one elected representative f rom the participating special districts. On May 18, 2021, the County of San Luis Obispo commissioned a third -party study of costs to assess the fiscal impacts of the County’s withdrawal from the IWMA. Subsequently, on August 10, 2021, the County Board of Supervisors held a hearing to decide whether to withdraw from the IWMA and voted to withdraw from the IWMA and implement an independent County solid waste compliance program. On September 14, 2021, the County Board of Supervisors passed a Resolution to fo rmally notify the IWMA of its intent to withdraw on November 15, 2021. On October 13, 2021, the IWMA Board of Directors approved as to form a Second Amendment to the JPA that removed the County and enabled the Board of Directors to continue to meet and conduct the necessary business of the IWMA and also a form of an amendment to the MOA between the IWMA members and the special districts to ensure consistency with the amended JPA. On November 9, 2021, the City Council approved the proposed Second Amendment to the JPA to ensure that the IWMA Board of Directors could continue to meet without the participation of the County Board of Supervisors. The approval included adoption of a Resolution, however, that provided that in addition to the proposed amendments to the JPA and MOA, specific conditions were to be included to address the City’s remaining concerns following the County’s exit. The Resolution required additional revisions to the JPA, as well as other actions, in order for the City to continue its membership. These revisions and additional actions included: 1. Add a provision to the JPA which clearly and directly limits the IWMA’s ability to adopt, impose, or implement any rule, regulation, policy, or ordinance in excess of State requirements (also requested by Grover Beach, Paso Robles, Pismo Beach, and San Luis Obispo); 2. Amend the JPA to require at least 6 months’ notice in the event that a member wishes to leave the IWMA (also requested by Pismo Beach); 3. Begin recruitment and diligently pursue hiring a permanent Executive Director as soon as practical (also requested by Grover Beach, Paso Robles, Pismo Beach, and San Luis Obispo); 4. Hire a third-party firm with solid waste management expertise to analyze fees, staffing structures and make recommendations for any programs and services that are not required by, or are in excess of, State solid waste regulations. The report shall identify potential cost saving measures and the IWMA Board shall Page 89 of 386 Item 8.g. City Council Consideration of Adoption of a Resolution Approving the Second Amended and Restated Joint Powers Agreement to Establish an Integrated Waste Management Authority for the Cities of San Luis Obispo County, California May 24, 2022 Page 3 review and implement those recommendations to reduce costs and minimize expenses. The report must be reviewed by the managers of the IWMA member agencies before it is completed and implemented (also requested by Grover Beach, Paso Robles, Pismo Beach, and San Luis Obispo, with the exception of the italicized language which was proposed by Arroyo Grande); 5. Provide all information necessary to support the adoption of fees that meet all applicable legal requirements, including any information needed by the member agencies to implement the IWMA’s fees as determined through coordination with the managers of the member agencies (requested by Arroyo Grande only); and 6. Rescind IWMA Resolution No. 21-06-02 and coordinate with the member agencies’ managers before adopting any other increases to the IWMA’s fees (requested by Arroyo Grande only). ANALYSIS OF ISSUES: The City of Arroyo Grande is, and has been, a significant partner to the IWMA, and the IWMA has been a crucial partner in assisting the City in meeting compliance with State mandates, including SB 1383. Agencies’ continued participation as members of the IWMA is critical for the IWMA’s ongoing viability as a regional organization. Regionality in solid waste traditionally provides an economy of scale, ensures consistent education and outreach among member jurisdictions, and locally has been a successful means of meeting waste diversion and regulatory compliance since 1994. The role of the IWMA has provided its member agencies with educational outreach on landfill diversion, source reduction, and emissions reduction efforts implemented in local communities. The IWMA is a regional government entity representing its members in solid waste diversion and reduction efforts. The efficacy of the organization depends on the breadth and participation of its member base. To continue as an operating regional organization, the remaining member agencies needed to agree on terms for the organization without the County’s involvement. A committee of staff from the IWMA and the remaining member agencies was formed to develop the additional amendments, which are now being presented to the City Council for approval in the form of the new Second Amended JPA. The Second Amended JPA includes the following revisions: A new Section 7 has been added, titled Expressed Limitation of Powers. This Section explicitly limits the Authority’s regulatory and ordinance power to state mandated legislation only. This Section provides that: The Authority’s power to adopt, impose, implement, and/or comply with regulations and ordinances is expressly limited to st ate-mandated legislation and exercising such powers as are im posed by law in the Page 90 of 386 Item 8.g. City Council Consideration of Adoption of a Resolution Approving the Second Amended and Restated Joint Powers Agreement to Establish an Integrated Waste Management Authority for the Cities of San Luis Obispo County, California May 24, 2022 Page 4 exercise of regulations related to solid waste, recycling, organic waste, and waste diversion. The Authority shall establish a budget policy requiring Board consideration of the minimum work required to comply with state mandates and regulations in the most demonstrably cost-effective way possible... Section 15, Withdrawal and Dissolution, now provides for a six (6) month notice to withdraw as opposed to the 30 days that had been in the original JPA. The Second Amended JPA also includes new updated recitals to include historical context and key pieces of legislation adopted after the original JPA. References to the County’s withdrawal is also provided for context, and AB 431, AB 1826, and SB 1383 are identified as they expand the IWMA’s scope of service. Also, Section 10.5., Quorum and Voting, previously included a supermajority provision wherein any Board member could demand eight (8) affirmative votes on any item. This provision has been deleted. As noted, previously there was a separate MOA between the IWMA’s member jurisdictions and the special districts (referred to in the Agreement as “Authorized Districts”) that governed the special districts participation in the IWMA. Instead, provisions have been included in the Second Amended JPA addressing the special districts as Participating Agencies as signatories to the Agreement, to a void confusion created by the existence of two documents (the JPA and the MOA). As permitted by the Public Resources Code Section 40977, the Second Amended JPA includes one Authorized District to be included as a member in the IWMA regional agency for the purpose of representation on the IWMA Board of Directors. ALTERNATIVES: The following alternatives are provided for the Council’s consideration: 1. Adopt a Resolution Approving the Second Amended and Restated Joint Powers Agreement to Establish an Integrated Waste Management Authority for the Cities of San Luis Obispo County, California. 2. Provide direction to further evaluate withdrawing from the IWMA and entering into an agreement with the County to conduct all solid waste regulatory compliance work; or 3. Provide additional direction to staff to perform an analysis on the comparative costs of staffing and performing these services in-house; or 4. Provide other direction to staff. ADVANTAGES: Approving staff’s recommendations will enable the City to continue its membership in the IWMA, which significantly assists the City in satisfying its solid waste management obligations under State law. Page 91 of 386 Item 8.g. City Council Consideration of Adoption of a Resolution Approving the Second Amended and Restated Joint Powers Agreement to Establish an Integrated Waste Management Authority for the Cities of San Luis Obispo County, California May 24, 2022 Page 5 DISADVANTAGES: No disadvantages are identified to continuing to participate in the IWMA at this time. ENVIRONMENTAL REVIEW: No environmental review is required for this item. PUBLIC NOTIFICATION AND COMMENTS: The Agenda was posted at City Hall and on the City’s website in accordance with Government Code Section 54954.2. Attachments: 1. Proposed Resolution and Second Amended and Restated Joint Powers Agreement to Establish an Integrated Waste Management Authority for the Cities of San Luis Obispo County, California Page 92 of 386 ATTACHMENT 1 RESOLUTION NO. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ARROYO GRANDE OF THE ADOPTING THE SECOND AMENDED AND RESTATED JOINT POWERS AGREEMENT TO ESTABLISH AN INTEGRATED WASTE MANAGEMENT AUTHORITY FOR THE CITIES OF SAN LUIS OBISPO COUNTY, CALIFORNIA WHEREAS, on May 10, 1994, an agreement was executed by and between the incorporated cities of San Luis Obispo County (“Cities”) and the County of San Luis Obispo forming a joint powers authority pursuant to the provisions of the Joint Exercise of Powers Act (Government Code sections 6500 et seq.), for the purpose of facilitating the development of waste diversion programs and projects that provide economies of scale without interfering with individual agencies’ exercise of power within their own jurisdiction (hereinafter referred to as the “JPA Agreement”); and WHEREAS, pursuant to the JPA Agreement, the power to perform the responsibilities of the joint powers authority was vested in the San Luis Obispo County Integrated Waste Management Authority Board of Directors (“IWMA Board”); and WHEREAS, in or around 2001, a Memorandum of Agreement (“MOA”) was executed by and between the Cities, the County of San Luis Obispo, and certain special districts within San Luis Obispo County that possessed solid waste authority (“Authorized Districts”), amending the JPA Agreement to include the Authorized Districts for representation on the IWMA Board (also known as the First Amendment to the JPA Agreement); and WHEREAS, in or around April 13, 2022, the IWMA Board considered and approved amendments to the JPA Agreement (“Second Amended and Restated JPA”), including those reflecting the withdrawal of San Luis Obispo County from the IWMA, and directed IWMA staff to circulate it to Participating Agencies for approval (a true and correct copy of the Second Amended and Restated JPA is attached hereto as Exhibit A); and WHEREAS, the Second Amended and Restated JPA shall amend the JPA Agreement and shall be considered a Memorandum of Understanding between the Cities and the Authorized Districts to enable and allow one (1) representative of the Authorized District s to participate in the governance of the IWMA as a member agency pursuant to Section 40977 of the Public Resource Code to represent the interests of all Authorized Districts; and WHEREAS, all Authorized Districts are encouraged to execute the Second Amended and Restated JPA prior to October 15, 2022, or otherwise pursue means by which to achieve their waste diversion goals and to comply with the Integrated Waste Management Act, Assembly Bill 341, Assembly Bill 1826, Senate Bill 1383, and all current and future state- mandated laws, rules and regulations; and WHEREAS, the City Council of the City of Arroyo desires to acknowledge, accept, and agree to be bound by the terms and conditions of the Second Amended and Restated JPA. Page 93 of 386 - 2 - RESOLUTION NO. PAGE 2 NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Arroyo Grande does hereby declare, determine, and order as follows: SECTION 1. The foregoing Recitals are true, correct and are incorporated herein. SECTION 2. The City of Arroyo Grande hereby acknowledges, accepts, and agrees to be bound by the terms and conditions of the Second Amended and Restated JPA, a copy of which is attached hereto as Exhibit A and incorporated herein by reference. SECTION 3. This Resolution shall take effect immediately upon adoption. The City Manager or her designee is directed to deliver this adopted resolution to the IWMA’s Interim Executive Director and Executive Committee. On motion of Council Member , seconded by Council Member , and by the following roll call vote, to wit: AYES: NOES: ABSENT: the foregoing Resolution was passed and adopted this 24th day of May, 2022. Page 94 of 386 - 3 - RESOLUTION NO. PAGE 3 ___________________________________ CAREN RAY RUSSOM, MAYOR ATTEST: ___ JESSICA MATSON, CITY CLERK APPROVED AS TO CONTENT: __________________________________ WHITNEY MCDONALD, CITY MANAGER APPROVED AS TO FORM: ___________________________________ TIMOTHY J. CARMEL, CITY ATTORNEY Page 95 of 386 - 4 - RESOLUTION NO. PAGE 4 EXHIBIT “A” SECOND AMENDED AND RESTATED JOINT POWERS AGREEMENT TO ESTABLISH AN INTEGRATED WASTE MANAGEMENT AUTHORITY FOR THE CITIES OF SAN LUIS OBISPO COUNTY, CALIFORNIA Page 96 of 386 - 5 - RESOLUTION NO. PAGE 5 JOINT POWERS AGREEMENT TO ESTABLISH AN INTEGRATED WASTE MANAGEMENT AUTHORITY FOR THE CITIES OF SAN LUIS OBISPO COUNTY, CALIFORNIA Page 97 of 386 - 6 - RESOLUTION NO. PAGE 6 SECOND AMENDED AND RESTATED JOINT POWERS AGREEMENT TO ESTABLISH AN INTEGRATED WASTE MANAGEMENT AUTHORITY FOR THE CITIES OF SAN LUIS OBISPO COUNTY, CALIFORNIA THIS SECOND AMENDED AND RESTATED JOINT POWERS AGREEMENT is made and entered into this day of , 2022, by and between the incorporated cities of Arroyo Grande, Atascadero, El Paso de Robles, Grover Beach, Morro Bay, Pismo Beach, and San Luis Obispo, all being municipal corporations of the State of California and located within the boundaries of the County of San Luis Obispo California, hereinafter called “Cities.” WHEREAS, on May 10, 1994, an agreement was executed by and between the Cities and the County of San Luis Obispo (“County”) forming a joint powers authority pursuant to the provisions of the Joint Exercise of Powers Act (Government Code section 6500 et seq., for the purpose of facilitating the development of waste diversion programs and projects that provide economies of scale without interfering with individual agencies’ exercise of power within their own jurisdiction (hereinafter referred to as the “Original JPA Agreement”); and WHEREAS, pursuant to the Original JPA Agreement, the member agencies created and established a public entity identified as t he San Luis Obispo County Integrated Waste Management Authority (“IWMA”); and WHEREAS, in or around 2001, a Memorandum of Agreement (“MOA”) was executed by and between the Cities, the County, and certain special districts within the County (“Authorized Districts”) amending the Original JPA Agreement to include the Authorized Districts for representation on the IWMA Board; and WHEREAS, on or about November 15, 2021, the County withdrew from the IWMA; and the Cities and Authorized Districts determined that a single regional agency remained advantageous to advise, plan for, and implement solutions to common solid waste and a waste diversion efforts; and WHEREAS, the IWMA was originally formed to meet the requirements of the California Integrated Waste Management Act (California Public Resources Page 98 of 386 - 7 - RESOLUTION NO. PAGE 7 Code section 40000 et seq.) and all regulations adopted under that legislation require, among other things, that certain public agencies in California make adequate provision for solid waste management within their jurisdictions; and WHEREAS, since the IWMA’s formation, Assembly Bill 341 (Chesbro, 2011) (Recycling of Commercial Solid Waste (“MCR”)) was signed into law and established requirements for jurisdictions to implement a commercial solid waste recycling program designed to divert commercial solid waste; and WHEREAS, since the IWMA’s formation, Assembly Bill 1826 (Chesbro, 2014) (Recycling of Commercial Organic Waste (“MORe”)) was signed into law and established the requirement for jurisdictions to implement an organic waste recycling program to divert organic waste generated by businesses; and WHEREAS, since the IWMA’s formation, Senate Bill 1383 (Lara, 2016) was signed into law requiring jurisdictions to implement organic waste diversion programs that include providing organic waste collection services to businesses and residences, edible food recovery goals, public education and outreach, contamination monitoring and sampling activities, recordkeeping and reporting, organic materials and edible food recovery, infrastructure capacity planning, procurement of recovered organic waste products, and enforcement; and WHEREAS, the Cities and Authorized Districts continue to believe that by combining their separate powers they can achieve their waste diversion goals and satisfy the requirements of the Integrated Waste Management Act and other legislation more effectively than if they exercise those powers separately; and WHEREAS, the Cities affirm, that pursuant to this Second Amended and Restated Joint Powers Agreement, the IWMA remains a regional agency in accordance with Public Resources Code section 40970 et seq.; and WHEREAS, pursuant to Section 40977, the Cities shall include one (1) Authorized District to be included as a member in the IWMA regional agency for the purpose of representation on the IWMA Board of Directors; and WHERAS, the Authorized District “member” may change from time to time; the current elected or appointed Authorized District representative shall represent the collective interests of all Authorized Districts; and WHEREAS, this Second Amended and Restated Joint Powers Agreement shall be considered a Memorandum of Understanding between the Cities and the Page 99 of 386 - 8 - RESOLUTION NO. PAGE 8 Authorized Districts to enable and allow one (1) representative of the Authorized Districts to participate in the governance of the IWMA as a member agency pursuant to Section 40977 of the Public Resource Code to represent the interests of all Authorized Districts; and WHEREAS, the Cities and the Authorized Districts (together “Participating Agencies”) desire to establish and confer upon a separate legal entity the powers necessary to enable them to achieve their waste diversion goals and to comply with the Integrated Waste Management Act, Assembly Bill 341, Assembly Bill 1826, Senate Bill 1383, and all current and future state-mandated laws, rules and regulations to the extent allowed by law and by the terms and conditions of this Second Amendment; and WHEREAS, the Participating Agencies desire to avoid a series of amendments to the Agreement over time due to future state-mandated legislation and programs, and as such, the parties desire to authorize the IWMA Board to enact policies, resolutions, and ordinances as are necessary to ensure and oversee compliance with any and all future state-mandated programs related to solid waste, recycling, waste diversion, and any other purpose of the Authority as provided in this Agreement. NOW, THEREFORE, IT IS AGREED AS FOLLOWS: SECTION 1. Definitions. To the extent that any of the following definitions conflict with any definition set forth in the California Integrated Waste Management Act, (Pub. Resources Code, § 40000 et seq.), and the Regulations promulgated thereunder, said Act and/or Regulations shall take priority. The terms defined in this Section that begin in this Agreement with quotation marks have the following meanings: 1.1 “Act” means the California Integrated Waste Management Act of 1989 (Pub. Resources Code, § 40000 et seq.) and all regulations adopted under Page 100 of 386 - 9 - RESOLUTION NO. PAGE 9 that legislation, as that legislation and those regulations may be amended from time to time. 1.2 “Agreement” means this Second Amended and Restated Joint Exercise of Powers Agreement, as it may be amended from time to time. 1.3 “Authority” means the San Luis Obispo County Integrated Waste Management Authority, a joint exercise of powers agency created by the Members pursuant to this Agreement. 1.4 “Authorized Districts” means certain special districts with solid waste authority participating in the IWMA through this Second Amended and Restated Joint Powers Agreement, including but not limited to the Avila Beach Community Services District, California Valley Community Services District, Cambria Community Services District, Cayucos Sanitary District, Ground Squirrel Hollow Community Services District, Heritage Ranch Community Services District, Los Osos Community Services District, Nipomo Community Services Distri ct, Oceano Community Services District, San Miguel Community Services District, San Simeon Community Services District, and Templeton Community Services District, or other qualified agencies that may later determine to become a Participating Agency by execution of this Agreement. 1.5 “Authorized District Representative” means the representative, or alternate, elected or appointed by the Authorized Districts to represent the Authorized Districts’ interests as a member of the IWMA regional agency pursuant to Section 40977 of the Public Resources Code. 1.6 “Board” means the Board of Directors of the Authority 1.7 “CalRecycle” means the California Department of Resources Recycling and Recovery. Page 101 of 386 - 10 - RESOLUTION NO. PAGE 10 1.8 “City” means any Participating Agency that is a city, and “Cities” means all of the Participating Agencies that are Cities. 1.9 “Composting Facility” means a facility at which composting is conducted and which produces a product meeting the definition of compost in Public Resources Code (PRC) section 40116. (“Compost” means the product resulting from the controlled biological decomposition of organic wastes that are source separated from the municipal solid waste stream, or which are separated at a centralized facility. “Compost” includes vegetable, yard and wood wastes which are not hazardous waste, and biosolids where combined with other organic materials in a mixture that consists largely of decayed organic matter, and is used for fertilizing and conditioning land.) 1.10 “Executive Director” means the person hired and appointed by the Board as the Authority's chief administrative officer to administer the affairs of the Authority and to implement the policies of the Board. 1.11 “Fiscal Year” means the period commencing on each July 1 and ending on the following June 30. 1.12 “HHW” means household hazardous waste as described in the household hazardous waste element as required by the Act (Pub. Resources Code, § 40000 et seq.), as that element may be amended from time to time. 1.13 “HHWE” means the Household Hazardous Waste Element as required by the Act (Pub. Resources Code, § 40000 et seq.) as that element may be amended from time to time. 1.14 “IWMA” means the Authority as defined herein. 1.15 “IWMA Region” means the jurisdictional territory and boundaries of all Participating Agencies. Page 102 of 386 - 11 - RESOLUTION NO. PAGE 11 1.16 “Joint Facilities” means a materials recovery facility, composting or HHW Facility, or other facility developed for the purpose of complying with requirements established by state legislation or the regulations of CalRecycle, or combination thereof, which is owned by some or all of the Participating Agencies directly, or by the Authority, or by a private entity, or a public agency, for the benefit of some or all of the Participating Agencies. 1.17 “Members” means the Cities who are members of this regional agency, formed pursuant to Public Resources Code section 40970 et seq, and the one (1) Authorized District Representative pursuant to Public Resources Code section 40977.“MRF” means a “materials recovery facility” which means a permitted solid waste facility where solid wastes or recyclable materials are sorted or separated, by hand or by use of machinery, for the purposes of recycling or composting. (Title 14, Ch. 9, Art. 3, Section 18720, “Definitions.”) "MRF" also means a transfer station which is designed to, and, as a condition of its permit, shall recover for reuse or recycling at least 15 percent of the total volume of material received by the facility. (Pub. Resources Code, § 50000(a)(4).) 1.18 “Participating Agency” or “Participating Agencies” means and shall include the Cities and the Authorized Districts who are signatories to this Agreement, delegating powers to the Authority pursuant to this Agreement, and participating in the governance of the IWMA. 1.19 “NDFE” means a Nondisposal Facility Element as required by the Act (Pub. Resources Code, § 40000 et seq.), as that element may be amended from time to time. 1.20 “Revenue Bonds” means revenue bonds, notes, certificates of participation and any other instruments and evidences of indebtedness issued by Page 103 of 386 - 12 - RESOLUTION NO. PAGE 12 the Authority from time to time pursuant to the law or any other applicable law in order to finance the MRF, any Joint Facilities or any Sole Use Facilities. 1.21 “Sole Use Facilities” means an integrated resource recovery facility, performing one or more of the functions of a MRF, composting or HHW Facility which is located within the boundary of the Authority and is owned by one Participating Agency or a private entity, but in all events is operated for the benefit of the residents and/or constituents of the IWMA Region. 1.22 “Solid Waste Landfill” shall have the meaning set forth in Section 40195.1 of the Public Resources Code, as that section may be amended from time to time. 1.23 “SRRE” means a Source Reduction And Recycling Element as required by the Act (Pub. Resources Code, § 40000 et seq.), as that element may be amended from time to time. SECTION 2. Purpose. Government Code section 6500 et seq. provides that two or more public agencies by agreement may jointly exercise any power common to the contracting parties. Public Resources Code section 40977 authorizes a district to be included as a member of a regional agency. Public Resources Code section 40976 authorizes a city or county to enter into a memorandum of understanding with another city, county, or district for the purpose of preparing and implementing source reduction and recycling elements or a countywide integrated waste management plan. It is the intent of the Participating Agencies to utilize these statutory authorizations in this Agreement. Page 104 of 386 - 13 - RESOLUTION NO. PAGE 13 The Participating Agencies enter this Agreement with the intent to operate the Authority in compliance with the requirements of the Act and other state legislation, with a minimum level of staff, addressing those operations and programs that can be most cost-effectively handled at the regional level by maximizing local resources, private sector participation, and contract services provision. The duties and responsibilities of each Participating Agency are described in the applicable adopted plans. The Authority is formed with the purpose and intent of facilitating the development of programs and projects related to waste diversion for the benefits of the residents and/or constituents of the IWMA Region that provide economies of scale without interfering with individual agencies' exercise of power within their own jurisdiction. SECTION 3. Creation of Authority. 3.1 The Cities hereby re-create and re-establish an authority and public entity to continue to be known as the “San Luis Obispo County Integrated Waste Management Authority,” (hereinafter referred to as the “Authority” or “IWMA”) it being understood that the Board shall be entitled to change the Authority's name from time to time. The Authority shall be a public entity separate from each of the Cities and the Authorized Districts. 3.2 The Authority shall constitute and remain as a regional agency pursuant to Public Resources Code section 40970 et seq. The regional agency shall include one (1) Authorized District Representative as a member pursuant to Public Resources Code section 40977. Said regional agency, and not the Participating Agencies of the regional agency, shall be responsible for compliance with the waste diversion requirements set forth in Public Resources Code, Article 1 of Page 105 of 386 - 14 - RESOLUTION NO. PAGE 14 Chapter 6 (commencing with Section 41780). In the event that the regional agency fails to comply with said waste diversion requirements, it is expressly understood and agreed that Section 14 of this Agreement shall provide for indemnification for the benefit of the regional agency and its Participating Agencies as specifically set forth therein. 3.3 The assets, rights, debts, liabilities, and obligations of the Authority shall not constitute assets, rights, debts, liabilities, or obligations of any of the Participating Agencies. However, nothing in this Agreement shall prevent any Participating Agency from separately contracting for, or assuming responsibility for, specific debts, liabilities, or obligations of the Authority, provided that both the Board and that Participating Agency approve such contract or assumption in writing. 3.4 This Second Amended and Restated Joint Powers Agreement shall take effect upon its adoption by each of the Cities. The Authorized Districts, and each of them, may elect to participate in the IWMA by execution of this agreement wherein they shall be bound by its terms and conditions. All prior agreements, including the MOA, shall be extinguished upon the execution of this Agreement by the Cities. SECTION 4. Inclusion of the Authorized Districts. 4.1 This Second Amended and Restated Joint Powers Agreement shall be considered a Memorandum of Understanding between the Cities and the Authorized Districts to allow one (1) representatives of the Authorized Districts to participate in the governance of the IWMA pursuant to Section 40977 of the Public Resources Code. Participation of the Authorized Districts is limited to special Page 106 of 386 - 15 - RESOLUTION NO. PAGE 15 districts within San Luis Obispo County that possess solid waste authority. The Authorized District Representative shall have all the governing rights and powers granted to an IWMA City Member. This Second Amended and Restated Joint Powers Agreement shall supersede, replace, and supplant the Memorandum of Agreement executed by and between the Cities, the County, and the Authorized Districts in or around 2001. 4.2 Authorized Districts, collectively, shall appoint or elect one representative and one alternate to represent the Authorized Districts on the IWMA Board of Directors. Authorized District Representative shall be limited to elected or appointed officials of an Authorized District. Said representatives shall represent the collective interests of all Authorized Districts. The selected Authorized District Representative shall serve a defined term, if so determined by the Authorized Districts, or so long as they hold an elected or appointed office with their Participating Agency, or until they resign or are removed prior to the end of their term. The Authorized District Representative alternate shall be entitled to vote on IWMA matters only in the absence of the Authorized District Representative. 4.3 The Authorized Districts, as Participating Agencies, shall have no individual powers and/or authority other than through the Authorized District Representative. SECTION 5. Term. The Authority is and remains effective as of the date of this Agreement. It shall continue until dissolved in accordance with Section 15 of this Agreement. However, in no event shall the Authority be dissolved if its dissolution would Page 107 of 386 - 16 - RESOLUTION NO. PAGE 16 conflict with or violate the terms or conditions of any Revenue Bonds or related documentation including, without limitation, indentures, resolutions, and letter of credit agreements. SECTION 6. Powers. 6.1 The Authority is empowered to acquire, construct, finance, refinance, operate, regulate and maintain a Solid Waste Landfill, transfer station, MRF, composting, HHW, or Joint Facilities and Sole Use Facilities subject, however, to the conditions and restrictions contained in this Agreement. The Authority shall also have the power to plan, study and recommend proper solid waste management consistent with the Act and other legislation and, to the extent permitted by the Act and this Agreement, implement plans approved by the IWMA and the programs specified in the state approved and locally adopted SRREs, the HHWE, the NDFE, and the Countywide or Regional Siting Element for all or any portion of the area included within the IWMA Region. Notwithstanding any other provisions of this Agreement, the Authority shall not acquire, regulate, set fees for, or operate any solid waste landfills, recycling, or composting facilities owned or operated by Participating Agencies without the express written consent of such Participating Agency. 6.2 To the full extent permitted by applicable law, the Authority is authorized, in its own name, to do all acts necessary or convenient for the exercise of such powers that each Member could exercise separately including, without limitation, any and all of the following: (a) to make and enter into contracts; (b) to apply for and accept grants, advances and contributions; Page 108 of 386 - 17 - RESOLUTION NO. PAGE 17 (c) to contract for the services of engineers, attorneys, accountants, planners, consultants, fiscal agents and other persons and entities; (d) to make plans and conduct studies; (e) to acquire, improve, hold, lease and dispose of real and personal property of all types; (f) to sue and be sued in its own name; (g) to incur and discharge debts, liabilities and obligations; (h) to establish rates, tolls, tipping fees, other fees, rentals and other charges in connection with the Authority’s facilities identified in Paragraph 6.1 herein, as well as any and all services and programs provided and/or implemented by the Authority; (i) to hire agents and employees; (j) to exercise the power of eminent domain for the acquisition of real and personal property; (k) to issue Revenue Bonds, grant or bond anticipation notes, or other governmental financing instruments, in accordance with all applicable laws for the purpose of raising funds to finance or refinance the acquisition, construction, improvement, renovation, repair, operation, regulation or maintenance of the facilities identified in Paragraph 6.1 herein or as otherwise deemed necessary or beneficial to the Authority; Page 109 of 386 - 18 - RESOLUTION NO. PAGE 18 (l) to sell or lease the facilities identified in Paragraph 6.1 herein; (m) to loan the proceeds of Revenue Bonds to any person or entity to finance or refinance the acquisition, construction, improvement, renovation or repair of the facilities identified in Paragraph 6.1 herein; (n) to provide that the holders of Revenue Bonds, whether directly or through a representative such as an indenture trustee, be third party beneficiaries of any of the obligations of any Member to the Authority and to covenant with the holders of any Revenue Bonds on behalf of any such Member to perform such obligations and comply with any agreements that Member may have with the Authority; (o) to prepare and implement plans and programs as deemed necessary and/or beneficial to the Authority in carrying out the purposes of this Agreement; (p) to provide public education, outreach, and marketing activities in support of diversion and edible food recovery programs; (q) to enter into memorandums of understanding with other regional agencies, cities, counties, and special districts; (r) to adopt, as authorized by California law, ordinances as are necessary to ensure and oversee compliance with any and all current and future state-mandated legislation and Page 110 of 386 - 19 - RESOLUTION NO. PAGE 19 programs related to solid waste, recycling, and waste diversion; (s) to act as the delegate, on behalf of the Participating Agencies, for the responsibilities of compliance, monitoring, reporting, and education of all state-mandated legislation, including, but not limited to the Integrated Waste Management Act, Assembly Bill 341, Assembly Bill 1826, and Senate Bill 1383. 6.3 Such powers shall be exercised subject only to the limitations set forth in this Agreement, applicable law, and such restrictions upon the manner of exercising such powers as are imposed by law in the exercise of similar powers. The Authority hereby designates the City of San Luis Obispo as the Member required to be designated by Section 6509 of the California Government Code. Should the Participating Agencies desire to designate an alternative agency for the purposes of Section 6509, such new designation may be changed by resolution of the Participating Agencies without need for an amendment to this Agreement. 6.4 This Agreement shall not limit the ability of the Participating Agencies to plan, administer, implement, and otherwise conduct waste management and other related local programs as deemed appropriate by the agency and consistent with the purpose and intent of this Agreement. SECTION 7. Expressed Limitation of Powers. The Authority’s power to adopt, impose, implement, and/or comply with regulations and ordinances is expressly limited to state-mandated legislation and Page 111 of 386 - 20 - RESOLUTION NO. PAGE 20 regulations related to solid waste, recycling, organic waste, and waste diversion. The Authority shall establish a budget policy requiring Board consideration of the minimum work required to comply with state mandates and regulations in the most demonstrably cost-effective way possible. Said policy shall not preclude other requirements such as Board consideration of the equitable distribution of services throughout the IWMA Region and program enhancements that are funded by grant revenues and/or reimbursements from Participating Agencies. Additionally, the IWMA shall establish a purchasing policy with a similar provision when preparing scopes of work for consultants and independent contractors who are engaged in implementing the Authority’s projects and programs. Notwithstanding the foregoing, all existing IWMA ordinances, rules, and regulations, whether or not mandated by the state, shall remain in full force and effect and not subject to this limitation of power unless otherwise determined by the Board. SECTION 8. Boundaries. The boundaries of the Authority shall be the boundaries of the Cities and the Authorized Districts identified herein as the IWMA Region. In the event a Participating Agency withdraws from the Authority, the boundaries shall be modified to exclude the area of the withdrawing agency. In the event a qualified city or district joins the Authority, the boundaries shall be modified to include the area of the joining Participating Agency. Section 8 shall not prevent the Authority’s use and/or operation of facilities outside of its boundaries within the County of San Luis Obispo. Page 112 of 386 - 21 - RESOLUTION NO. PAGE 21 SECTION 9. Organization. 9.1 The Board. The Authority shall be governed by the Board, which shall exercise or oversee the exercise of all powers and authority on behalf of the Authority. 9.2 Participating Agencies. (a) Cities. City membership in the Authority shall be voluntary, but only the cities incorporated in the County of San Luis Obispo presently or in the future, are declared eligible for membership in the Authority as a regional agency. City representatives to the Authority shall consist of one (1) member from the governing body of each incorporated City within the boundaries of the County of San Luis Obispo which is a party to this Agreement. The Cities may elect to have an alternate member(s) in addition to any official member, but said alternate shall be an elected or appointed official and shall be able to vote only in the absence of the official representative. (b) Authorized Districts. The Authorized Districts shall be collectively represented on the Board by one (1) representative and one (1) alternate elected or appointed by and among themselves. The Authorized District Representative shall have all rights, power, and authority granted to a City representative. The Authorized District alternate shall be elected or Page 113 of 386 - 22 - RESOLUTION NO. PAGE 22 appointed officials and entitled to vote only in the absence of the official Authorized District Representative. (c) Representatives of the shall be appointed to serve on the Board in accordance with procedures established by each of the governing bodies of their respective agencies, except that the Authorized District Representative and alternate shall be elected or appointed pursuant to Section 4. Representatives shall serve so long as they hold office with their member agency, until they shall resign or are removed by a majority vote of their member agency, or pursuant to a set term established by their member agency. Vacancies among representatives or alternates shall be filled in the same manner as the first appointment. (d) Designation of the official representative or alternate(s), or changes thereto, shall be transmitted in writing to the Executive Director of the Authority by the appointing agency. (e) In addition to the incorporated Cities and Authorized Districts presently a party to this Agreement, any other city or qualified special district which may desire to participate in the activities of the Authority may do so by executing this Agreement without prior Page 114 of 386 - 23 - RESOLUTION NO. PAGE 23 approval or ratification of the named parties to this Agreement and shall thereafter be governed by all the terms and provisions of this Agreement as of the date of execution. (f) Membership and/or participation of any Participating Agency shall be contingent upon the execution of this Second Amended and Restated Joint Powers Agreement, as same may be further amended from time to time, with no requirement to execute the Original JPA or any prior amendments thereto. 9.3 Principal Office. The principal office of the Authority shall be located at 870 Osos Street, San Luis Obispo, CA 93401. The Board may change that principal office upon giving at least 15 days' notice to each Participating Agency and to CalRecycle. 9.4 Officers. (a) The officers of the Board shall consist of a President and Vice President elected for a term of one year by a majority vote of the Board (b) Both the President and Vice President of the Board shall be elected at the last meeting preceding July of each year. (c) The officers shall serve until their successors are elected. (d) The duties of the officers shall be as follows: 1) President Page 115 of 386 - 24 - RESOLUTION NO. PAGE 24 a) Shall preside over all meetings of the Board. b) Shall appoint all ad hoc committees subject to ratification by the Board. c) Shall be an ex-officio member of all committees. d) Shall execute all contracts and legal documents on behalf of the Authority except those that have been delegated to the Executive Director through purchasing policies or other actions of the Board of Directors. 2) Vice President a) Shall serve as President pro-tem in the absence of the President. b) Shall give whatever aid necessary to the President. c) Shall be an ex-officio member of all committees. d) In the event of a vacancy occurring in the office of either the President or Vice President upon said officer's death, resignation, removal or his/her ceasing to be an official representative of a member agency, such vacancy will be Page 116 of 386 - 25 - RESOLUTION NO. PAGE 25 filled by majority vote of the Board, the officer elected to serve for the balance of the unexpired term. 9.5 Executive Director. The Board shall employ or contract for the services of a general manager (the “Executive Director”) who shall be the chief administrative officer of the Authority. The Authority shall select a qualified Executive Director using professional personnel standards and an open competitive process. The Executive Director shall plan, organize and direct the administration and operations of the Authority, either directly or by means of delegation to IWMA staff, shall advise the Board on policy matters, shall recommend an administrative structure to the Board, shall hire and discharge administrative staff, shall develop and recommend budgets, shall reply to communications on behalf of the Authority, shall approve payments of amounts duly authorized by the Board, shall implement Board policy, shall carry out such other duties that may be assigned to the Executive Director by the Board from time to time, and shall attend meetings of the Board and committees as directed. 9.6 Committees. (a) Committees, subcommittees, and advisory committees may be established as the Board may deem appropriate. (b) Membership on “ad-hoc” policy committees shall be at the discretion of the President, subject to ratification by the Board, and consisting of less than a quorum of the Board. Nothing herein shall be construed to limit membership on these aforesaid Page 117 of 386 - 26 - RESOLUTION NO. PAGE 26 committees to officials of the member agencies. The President may appoint any individual deemed qualified to serve on a committee. (c) Standing Committees shall include an Executive Committee and other committees as established by the Board. The composition and bylaws of the standing committees shall be established by the Board by resolution. All Standing Committee meetings shall be held subject to the provisions of the Ralph M. Brown Act (Sections 54950 et seq. of the California Government Code) and other applicable laws of the State of California. SECTION 10. Meetings of the Board. 10.1 Notice of Meetings. All meetings of the Board shall be held subject to the provisions of the Ralph M. Brown Act (Sections 54950 et seq. of the California Government Code) and other applicable laws of the State of California. 10.2 Regular Meetings. The Board shall hold at least four regular meetings each year. The date upon which, and the hour and place at which, each regular meeting shall be fixed by resolution of the Board. 10.3 Special Meetings. Special meetings of the Board may be called in accordance with the provisions of the California Government Code. 10.4 Notice of Meetings. All meetings of the Board shall be held subject to the provisions of the Ralph M. Brown Act (Sections 54950 et seq. of the California Government Code) and other applicable laws of the State of California. Page 118 of 386 - 27 - RESOLUTION NO. PAGE 27 10.5 Minutes. The Executive Director shall cause minutes of all meetings of the Board and any standing committees of the Board to be kept and shall, after each meeting and approval of the Board, cause a copy of the minutes to be forwarded to each Participating Agency. 10.6 Quorum and Voting. For purposes of conducting business, there shall be present a quorum consisting of a majority of the Board. Each director shall have one vote. No action shall be effective without the affirmative votes of a majority of those present. The Board shall adopt such procedures as are consistent with this Agreement and applicable law and are necessary or helpful in conducting the business of the Authority in an orderly manner. 10.7 Budget. The Cities and the County have entered into a Memorandum of Agreement among the County of San Luis Obispo and the Cities of Arroyo Grande, Atascadero, El Paso de Robles, Grover Beach, Morro Bay, Pismo Beach, and San Luis Obispo for the Establishment and Payment of Landfill Tipping Fee Surcharges To Support The San Luis Obispo Integrated Waste Management Authority (the “MOA”). Pursuant to the MOA, those members of the Authority having jurisdiction over such matters have agreed to establish tipping fee surcharges (the “Tipping Fee Surcharges”) which shall be paid into a Solid Waste Authority—Trust Fund (as defined in the MOA) for the purposes therein. (a) A line item and program budget for the Authority's operations shall be adopted by the Board for the ensuing Fiscal Year prior to June 30 of each year. All costs incurred by the Authority shall be set forth in the budget and shall be paid out of the solid waste Page 119 of 386 - 28 - RESOLUTION NO. PAGE 28 fund derived from tipping fee surcharges and other sources as approved by the Board. The line item and program budget shall be submitted in draft form to all Participating Agencies for review and comment prior to adoption. The line item and program budget shall include sufficient detail to constitute an operating guideline, the anticipated sources of funds, and the anticipated expenditures to be made for the operations of the Authority and the administration, maintenance and operating costs of the facilities identified in Paragraph 6.1 herein. Any budget for Sole Use Facilities shall be maintained separately. Approval of the line item and program budget by the Board shall constitute authority for the Executive Director to expend funds for the purposes outlined in the approved budget, subject to the availability of funds. (b) A budget for the acquisition, construction, or operation of facilities, or for contracting for the acquisition, construction, or operation of facilities, identified in Paragraph 6.1 herein shall be adopted by the Board before the Authority commits any acquisition or construction funds or contracts. It may be amended if and when determined by the Page 120 of 386 - 29 - RESOLUTION NO. PAGE 29 Board. Approval of the budget(s) for the facilities identified in Paragraph 6.1 herein shall constitute authority for the Executive Director (or any trustee or other fiduciary appointed by the Authority) to receive state or federal grant funds and proceeds of Revenue Bonds and to expend funds for the acquisition, construction, or operation of the facilities identified in Paragraph 6.1 herein. (c) A budget(s) governing the acquisition, construction, or operation of Sole Use Facilities may be adopted by the affected Participating Agency or Agencies. When such budgets are adopted by affected parties, appropriate accounts shall be established by the Authority and designated as such participant or participant’s fund. Disbursement of such funds by the Authority shall be made only upon receipt of written authorization from the designated finance officer of the affected Participating Agency or Agencies. Receipts and disbursements for the acquisition or construction of Sole Use Facilities may also be made directly by the affected Participating Agency or Agencies, in which case such budgets shall not be a part of the budget of the Authority. 10.8 Rules of Procedure. The Board shall from time to time, establish written rules and procedures for the conduct of their meetings. Page 121 of 386 - 30 - RESOLUTION NO. PAGE 30 SECTION 11. Joint Operating Fund and Contributions. The Authority shall have the power to establish a joint operating fund. The fund shall be used to pay all administrative, operating, and other expenses incurred by the Authority. Funding shall be on an enterprise basis or as determined by the Board. All monies in the joint operating fund shall be paid out by the Auditor - Controller / Treasurer for the purposes for which the fund was created upon authorization by the President of the Board and approval by the Executive Director of demands for payment, or as otherwise authorized by resolution of the Board filed with the Auditor-Controller / Treasurer. No Participating Agency shall be obligated to make any contributions of funds to the Authority for facilities to be established in accordance with Section 6.1 or pay any other amounts on behalf of the Authority, other than as required by this Section 11, without that Participating Agency’s consent evidenced by a written instrument signed by a duly authorized representative of that Participating Agency. The Authority shall contract with an independent certified professional accountant to conduct annual fiscal audits as required by applicable statute or legislation and report the results of such audit to the Board. 11.1 Auditor-Controller / Treasurer. The Auditor-Controller / Treasurer of San Luis Obispo County shall be the Auditor-Controller / Treasurer of the Authority. The Auditor-Controller / Treasurer shall preform all responsibilities and obligations as provided in Government Code section 6505.5. To the extent a conflict exists between this Section 11 and the Government Code, the Government Code shall control. Page 122 of 386 - 31 - RESOLUTION NO. PAGE 31 11.2 Notwithstanding Sections 11.1 above, designation of the Auditor-Controller / Treasurer may be changed from time to time by resolution of the Board without necessitating amendment to this Agreement. SECTION 12. Records and Accounts. This Section and Section 11 are intended to ensure strict accountability of all funds of the Authority and to provide accurate reporting of receipts and disbursements of such funds. The Authority shall maintain accurate and correct books of account, showing in detail the costs and expenses of any service or acquisition and construction and the maintenance, operation, regulation and administration of any service or Joint Facilities or Sole Use Facilities, and all financial transactions of the Participating Agencies relating to any service or Joint Facilities or Sole Use Facilities. Books and records shall be established and maintained in accordance with generally accepted accounting principles promulgated by the California State Controller's Office and the Governmental Accounting Standards Board. The books of account shall correctly show any receipts and any costs, expenses, or charges to be paid by all or any of the Participating Agencies. The books of account shall be open to inspection at all times by a representative or agent of any of the Participating Agencies. In addition, if required by any resolution authorizing the issuance of Revenue Bonds, the Authority shall maintain appropriate books, records, accounts and files relating to each project as required by such resolution which shall be open to inspection by holders of Revenue Bonds if and to the extent, and in the manner, provided in the resolution. Page 123 of 386 - 32 - RESOLUTION NO. PAGE 32 SECTION 13. Rates and Fees. The Authority shall be funded by a combination of rates, fees, and other funding mechanisms as allowed by applicable authority. Use of revenue from rates and fees shall not be restricted based upon the funding mechanism. The Authority shall establish and regulate rates and/or tipping fees at facilities within the County of San Luis Obispo, such as landfills or other collection sites, for (1) the operation, acquisition, construction, repair, and maintenance of new and existing facilities; (2) the implementation of state legislation and regulations; (3) the operation of programs, education, outreach, monitoring and enforcement efforts; and (4) the preparation, adoption, and implementation a regional management plan. The Authority may impose fees in amounts sufficient for (1) the implementation of state legislation and supporting programs; (2) education outreach, monitoring, reporting and compliance efforts; (3) the preparation, adoption, and implementation of a regional management plan; and (4) any other purposes as provided for by this Agreement. Revenue generation may include fees imposed on “Haulers” (defined as companies with an agreement with a governmental entity for the collection of solid waste, recyclables, or green waste in San Luis Obispo County), assessments, or any other funding mechanism as allowed by applicable authority. Rates and fees shall be set or modified by resolution only. Prior to the Authority increasing rates or fees, or imposing new rates or fees, the Authority shall provide the Participating Agencies with all necessary facts, data, information and analyses related to justification and/or explanation of the proposed rates and fees that meet all applicable legal requirements to support their adoption. The Authority shall coordinate with the Participating Agency Page 124 of 386 - 33 - RESOLUTION NO. PAGE 33 managers in this regard to ensure the facts, data, information and analyses provided by the Authority is adequate to enable the Participating Agencies to implement the Authority’s proposed rates and fees through the Proposition 218 process, if deemed applicable to a Participating Agency by that Agency; however, determinations regarding the application of Proposition 218 to any proposed increased rate or fee shall be made solely by each Participating Agency with no Authority representations of any kind. The Authority shall establish a rate and/or fee setting policy which shall govern the obligations of the Authority to its Participating Agencies in the implementation of any new or increased rates or fees. SECTION 14. Failure to Meet Waste Stream Requirements. The Authority shall be entitled to cause the waste streams of each Participating Agency to be monitored, pursuant to procedures approved by the Board, in order to determine whether state waste diversion requirements are being met. If the waste stream diversion of any Participating Agency fails to meet any such requirements, including but not limited to taking all actions necessary to comply with state mandates, that Participating Agency shall be solely responsible for any and all resulting liabilities, damages, fines, criminal and civil sanctions, and costs and expenses. That Participating Agency shall also indemnify and hold the Authority and the other Participating Agencies harmless from and against any and all liabilities, damages, fines, sanctions, costs and expenses that are incurred as a result of the violation or a claimed violation including, without limitation, all fees and costs of legal counsel. If two or more Participating Agencies are responsible Page 125 of 386 - 34 - RESOLUTION NO. PAGE 34 for a failure to meet any such requirements or are claimed to have violated any such requirements, the Participating Agencies responsible for the violations or which are the subject of such claims shall be responsible to, and shall indemnify, the Authority and the other Participating Agencies in proportion to their relative responsibility for the violations or claimed violations. Upon notification of any such violation or claim, the Participating Agency or Agencies shall take such prompt, corrective action as is necessary to meet the requirements. Nothing in this Section shall preclude one or more Participating Agencies or the Authority from imposing or establishing additional incentives to meet waste diversion requirements. SECTION 15. Withdrawal and Dissolution. 15.1 The parties to this Agreement pledge full cooperation and agree to assign representatives to serve as official appointed representatives of the Authority or any committee or subcommittee thereof who shall act for and on behalf of their Participating Agency in any or all matters which shall come before the Authority, subject to any necessary approval of their acts by the governing bodies of the Participating Agencies. 15.2 Any party to this Agreement may withdraw from the Authority, upon providing six (6) months’ prior written notice, and terminate its participation in this Agreement by resolution of its governing body. The withdrawal of the Participating Agency shall have no effect on the continuance of this Agreement among the remaining Participating Agencies, and the Agreement shall remain in full force and effect with respect to the remaining Participating Agencies. No Page 126 of 386 - 35 - RESOLUTION NO. PAGE 35 withdrawal shall become effective until six (6) months after receipt of the written notice by the Authority. 15.3 A Participating Agency which has withdrawn from the Authority shall not be liable for the payment of further contributions falling due beyond the date of withdrawal and shall have no right to reimbursement of any monies previously paid to the Authority. The Authority may authorize a reimbursement if in its judgment such reimbursement is fair and equitable and can be done without jeopardy to the operation of the Authority. If any Participating Agency fails to pay a required contribution, as determined by the Board, that Participating Agency shall be provided with a sixty (60) day written notice and an opportunity to cure. If the Board determines that the Participating Agency has failed to cure or negotiate a cure within sixty (60) days following delivery of the written notice shall be deemed a voluntary withdrawal from the Authority. 15.4 The Authority may be dissolved at any time and this Agreement terminated by a joint agreement duly-approved and executed by a majority of the Members which are parties hereto. Said termination agreement shall provide for the orderly payment of all outstanding debts and obligations and for the return of any surplus funds of the Authority in proportion to the contributions made by the Participating Agencies. In the event the Authority is dissolved, the individual Participating Agencies shall be responsible for complying with the requirements of the Act as included in the approved SRREs, HHWE, NDFE, Countywide or Regional Siting Element and Integrated Waste Management Plan in addition to compliance with all waste management related legislation. Page 127 of 386 - 36 - RESOLUTION NO. PAGE 36 SECTION 16. Amendments Including Termination. This Agreement may only be amended or terminated by a written instrument executed by a majority of the Members and meeting the requirements imposed by the terms or conditions of all Revenue Bonds and related documentation including, without limitation, indentures, resolutions, and letter of credit agreements. Notwithstanding the foregoing, no amendment or termination shall require any Participating Agency to contribute any funds to the Authority or become directly or contingently liable for any debts, liabilities or obligations of the Authority without the consent of that agency evidenced in a written instrument signed by a duly authorized representative of that Participating Agency. SECTION 17. Filing with the Secretary of State. The Secretary shall file all required notices with the Secretary of State in accordance with California Government Code sections 6503.5 and 53051 SECTION 18. Notices. All notices which any Participating Agency of the Authority may wish to give in connection with this Agreement shall be in writing and shall be served by personal delivery, by electronic mail, or by US mail addressed to the Participating Agency, or Participating Agencies, or the Authority at its principal office, or to such other address as the Authority or Participating Agency or Participating Agencies may designate from time to time by written notice given in the manner specified in this Section. Service of notice pursuant to this Section shall be deemed complete on the day of service by personal delivery (but 24 hours after such delivery in the case Page 128 of 386 - 37 - RESOLUTION NO. PAGE 37 of notices of special meetings of the Board), two days after mailing if deposited in the United States mail, or in 24 hours if provided by electronic mail. SECTION 19. Successors and Assigns. This Agreement shall be binding upon and shall inure to the benefit of the permitted successors and assigns of the Participating Agencies. However, no Participating Agency shall assign any of its rights under this Agreement except to a duly formed public entity organized and existing under the laws of the State of California approved by a majority of the voting Directors who do not represent the assigning Participating Agency. No assignment shall be effective unless and until the Authority, the Participating Agencies, and the proposed assignee comply with all then applicable requirements of law relating to changes in the composition of entities such as the Authority if and when they have Revenue Bonds outstanding and with the terms and conditions of all Revenue Bonds and related documentation including, without limitation, indentures, resolutions and letter of credit agreements. SECTION 20. Severability Should any part, term, sentence, or provision of this Agreement be decided by a final judgment of a court or arbitrator to be illegal or in conflict with any law of the State of California or otherwise be unenforceable or ineffectual, the validity of its remaining parts, terms, sentences, and provisions shall not be affected and the Participating Agencies represent that they would have adopted this Agreement even without the ineffectual or non-valid provision(s). Page 129 of 386 - 38 - RESOLUTION NO. PAGE 38 SECTION 21. Section Headings. All section headings contained in this Agreement are for convenience and reference. They are not intended to define or limit the scope of any provision of this Agreement. SECTION 22. Effective Date. This Agreement shall take effect upon its execution by all Members, pursuant to resolutions of such governing bodies authorizing such execution and shall remain in full force and effect until dissolved pursuant to the provisions herein. This Agreement may be executed in counterparts which together shall constitute a single agreement. IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the day and year first hereinabove written. Page 130 of 386 - 39 - RESOLUTION NO. PAGE 39 PARTICIPATING AGENCIES CITIES AUTHORIZED DISTRICTS Arroyo Grande Avila Beach CSD Atascadero California Valley CSD El Paso de Robles Cambria CSD Grover Beach Cayucos Sanitary District Morro Bay Ground Squirrel Hollow CSD Pismo Beach Heritage Ranch CSD San Luis Obispo Los Osos CSD Nipomo CSD Oceano CSD San Miguel CSD San Simeon CSD Templeton CSD Page 131 of 386 Item 8.h. MEMORANDUM TO: City Council FROM: Brian Pedrotti, Community Development Director BY: Robin S. Dickerson, City Engineer SUBJECT: Consideration of a Resolution Authorizing the Community Development Director to Submit an Application for the ATP Cycle 6 Grant and Execute any Agreements for the Use of Grant Funds for Implementation of the Halcyon Road Complete Streets Plan DATE: May 24, 2022 SUMMARY OF ACTION: Authorizing the submittal of a grant application may result in grant funding being made available for implementation of the Halcyon Road Complete Streets Plan, which is in the final stages of completion and approval. IMPACT ON FINANCIAL AND PERSONNEL RESOURCES: Staff resources will be necessary for administration should a grant application be successful. Potential grant funds could be between $6,000,000 and $8,000,000, if successful. RECOMMENDATION: Adopt a Resolution authorizing the Community Development Director to apply for the Active Transportation Program Cycle 6 Grant and execute any agreements necessary for the use of grant funds as approved in the future Council-approved CIP budget in effect at the time the agreements are signed. BACKGROUND: On September 26, 2013, Governor Brown signed legislation creating the Active Transportation Program (ATP). The ATP consolidates existing federal and State transportation programs, including the Transportation Alternatives Program, Bicycle Transportation Account, and State Safe Routes to School, into a single program with a focus to make California a national leader in active transportation. The purpose of ATP is to encourage increased use of active modes of transportation by achieving several goals, including: 1. Increase the proportion of trips accomplished by biking and walking; Page 132 of 386 Item 8.h. City Council Consideration of a Resolution Authorizing the Community Development Director to Submit an Application for the ATP Cycle 6 Grant and Execute any Agreements for the Use of Grant Funds for Implementation of the Halcyon Road Complete Streets Plan May 24, 2022 Page 2 2. Increase safety and mobility for non-motorized users; 3. Advance the active transportation efforts of regional agencies to achieve greenhouse gas reduction goals; 4. Enhance public health; 5. Ensure that disadvantaged communities fully share in the benefits of the program; and 6. Provide a broad spectrum of projects to benefit many types of active transportation users. The ATP is now in its sixth cycle, with applications due June 15, 2022. In 2015, the City received a Sustainable Transportation Planning (STP) Grant for development of the Halcyon Road Complete Streets Plan (the “Plan”), which proposes multimodal transportation enhancements so that all travel modes are accommodated, and will promote safe and convenient walking and bicycling for residents and visitors alike. The Community Development Department has been working to develop the Plan since receiving the STP Grant. Over the next year staff will re-engage the stakeholders group, provide additional public outreach, complete a Mitigated Negative Declaration (MND) pursuant to CEQA, and include a Council study session on the proposed improvements for Halcyon Road from El Camino Real to the Pike. This effort will include two options for improvements to the intersection of Halcyon and Fair Oaks. The final documents will be presented to the Planning Commission with a recommendation for Council, prior to the public hearing and adoption of the final plan and MND by the Council. ANALYSIS OF ISSUES: The ATP grant application is an opportunity to receive funding to implement the multimodal enhancements identified for Halcyon Road. These enhancements were developed based on existing and projected future conditions and through an extensive public outreach effort, which included multiple charrettes where community members interactively voted on priorities and features. It is anticipated that the plan will move forward to Council with two (2) alternatives. The two alternatives will focus on potential improvements to the Halcyon/Fair Oaks intersection. The ATP grant would be utilized to implement the alternative selected when the Plan is adopted by the Council. The ATP has different levels of project funding and it is anticipated that, should the City’s application be successful, resulting funding for implementation of the Plan could total between $6,000,000 and $8,000,000. The Grant award is scheduled for spring of 2023, and funds should be available in fall of 2023 with construction completed by fall of 2027. This schedule will be compatible with the planned public outreach, stakeholders’ groups and Council study session in the fall of 2022, the adoption of the plan and MND in summer of 2023, the design of the plan completed by fall of 2024 and construction taking place in FY 2025/26 and FY 2026/27. Page 133 of 386 Item 8.h. City Council Consideration of a Resolution Authorizing the Community Development Director to Submit an Application for the ATP Cycle 6 Grant and Execute any Agreements for the Use of Grant Funds for Implementation of the Halcyon Road Complete Streets Plan May 24, 2022 Page 3 In addition to the ATP grant application, on May 6, 2022, the City submitted an application to SLOCOG for a Community Betterment Grant in the amount of $749,400 to construct a portion of the improvements identified in the Halcyon Complete Streets Plan from The Pike north to Fair Oaks along S. Halcyon Road, including reducing travel lanes down to one lane in each direction, adding pedestrian and Class II buffered bicycle facilities from Fair Oaks to the Pike, replacement of non-compliant ADA ramps, and the addition of two crosswalks with rapid-flashing beacons. Depending on the potential for an award of this grant, the request for this ATP grant may be refined accordingly to help fund as much of the overall Plan as possible. ALTERNATIVES: The following alternatives are provided for the Council’s consideration: 1. Adopt the attached Resolution authorizing the Community Development Director to apply for ATP Cycle 6 Grant funding and execute any agreements necess ary for the use of grant funds as approved in the future Council approved CIP budget in effect at the time the agreements are signed; 2. Modify and adopt the attached Resolution authorizing the Community Development Director to apply for ATP Cycle 6 Grant funding and execute any agreements necessary for the use of grant funds; or 3. Provide direction to staff. ADVANTAGES: Submittal of the grant application could result in the awarding of funds to implement the final Halcyon Road Complete Streets Plan, which was developed utilizing other grant funds and will be instrumental in addressing deficiencies on Halcyon Road, including vehicle speeds, congestion, bicycle facilities, and lack of pedestrian access. DISADVANTAGES: If the grant is approved, considerable staff time will be necessary to administer the grant. However, if no application is made, or the grant is not awarded, the Halcyon Road Complete Streets Plan will not be able to be implemented on a large scale in the foreseeable future until other funding is identified. ENVIRONMENTAL REVIEW: Environmental review is not required for submittal of grant applications. PUBLIC NOTIFICATION AND COMMENTS: Page 134 of 386 Item 8.h. City Council Consideration of a Resolution Authorizing the Community Development Director to Submit an Application for the ATP Cycle 6 Grant and Execute any Agreements for the Use of Grant Funds for Implementation of the Halcyon Road Complete Streets Plan May 24, 2022 Page 4 The Agenda was posted at City Hall and on the City’s website in accordance with Government Code Section 54954.2. Attachments: 1. Proposed Resolution Page 135 of 386 ATTACHMENT 1 RESOLUTION NO. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ARROYO GRANDE AUTHORIZING THE COMMUNITY DEVELOPMENT DIRECTOR TO SUBMIT THE GRANT APPLICATION AND TO EXECUTE ANY NECESSARY AGREEMENTS FOR THE USE OF GRANT FUNDS FROM THE ACTIVE TRANSPORTATION PROGRAM CYCLE 6 GRANT WHEREAS, the City Council of the City of Arroyo Grande is eligible to receive federal and/or State funding for active transportation improvements through the Active Transportation Program (ATP); and WHEREAS, the City has been working to develop the Halcyon Road Complete Streets Plan; and WHEREAS, the ATP could provide funding to implement the Halcyon Road Complete Streets Plan; and WHEREAS, agreements may need to be executed before such funds can be claimed should the City’s application be successful; and WHEREAS, the City Council of the City of Arroyo Grande wishes to delegate authorization to execute any such agreements and any amendments thereto to the Community Development Director. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Arroyo Grande hereby authorizes the Community Development Director to submit the ATP Cycle 6 Grant application and to execute any necessary agreements related thereto. On motion by Council Member seconded by Council Member and by the following roll call vote, to wit: AYES: NOES: ABSENT: The foregoing Resolution was passed and adopted this 24th day of May, 2022. Page 136 of 386 RESOLUTION NO. PAGE 2 CAREN RAY RUSSOM, MAYOR ATTEST: JESSICA MATSON, CITY CLERK APPROVED AS TO CONTENT: ____________________________________ WHITNEY MCDONALD, CITY MANAGER APPROVED AS TO FORM: TIMOTHY J. CARMEL, CITY ATTORNEY Page 137 of 386 Item 8.i. MEMORANDUM TO: City Council FROM: Bill Robeson, Assistant City Manager/Public Works Director BY: Shane Taylor, Utilities Manager SUBJECT: Monthly Water Supply and Demand Update DATE: May 24, 2022 SUMMARY OF ACTION: The update reports the City’s total water supply and demand for April, 2022. Current Lopez Reservoir level and projected levels are provided in the attachments. IMPACT ON FINANCIAL AND PERSONNEL RESOURCES: Approximately two (2) hours of staff time is required to prepare the report. RECOMMENDATION: Receive and file the monthly Water Supply and Demand Report. BACKGROUND: On October 12, 2021, the City Council adopted a Resolution declaring a Stage 1 Water Shortage Emergency, and implementing emergency water conservation measures and restrictions as a result of the extreme drought conditions. In April, the City’s water use was 174.4 acre-feet with a per capita use of 107 gallons per day/per person. There was a total of 0.55 inches of rainfall in the City in April, 2022. ANALYSIS OF ISSUES: The United States Drought Monitor, as of May 9, 2022, shows San Luis Obispo County in a severe drought. Rainfall to date for the period July 1, 2021, through April 30, 2022, is 8.63 inches at the Corporation Yard rain gauge. Lopez Lake, as of May 9, 2022, is at 28.3% capacity (13,969). The new water year began on April 1, 2021, and the City’s annu al Lopez contract supply was 2,290 acre-feet. On August 24, 2021, the San Luis Obi spo County Board of Supervisors (Board) enacted the Low Reservoir Response Plan (LRRP) for Lopez Lake. On September 8, 2021, the Zone III Technical Advisory Committee endorse d the action Page 138 of 386 Item 8.i. City Council Monthly Water Supply and Demand Update May 24, 2022 Page 2 of reducing contract deliveries by 10%. The City began reducing the flow of Lopez Lake deliveries on September 15, 2021, to 1.9 million gallons per day, compared to the normal flow of 2.2 million gallons per day. In addition, the City has 1,323 acre-feet of ground water entitlement from the Santa Maria Basin, and wells within the Pismo Formation that produce approximately 160 acre-feet per year. The second quarter monitoring for the Santa Maria Basin sentry wells was completed on April 5, 2022. The deep well index was 7.98 feet above sea level, which is 0.48 feet higher than the deep well index threshold value of 7.5 feet and 1.08 feet lower than the index value one year ago. The rainfall in December 2021 did raise Lopez Lake from 28% to 30% full, however the LRRP remains in effect, along with Stage 1 water shortage emergency mandatory reductions. The water use for the City of Arroyo Grande for water year 2021/2022, which ended March 31, 2022, was 2,280 with a per capita use of 115 gallons per day/person. ALTERNATIVES: The following alternatives are provided for the Council’s consideration: 1. Receive and file the report; or 2. Provide other direction to staff. ADVANTAGES: This report provides the City Council and the public with the current and projected conditions of our water supply and demand. DISADVANTAGES: No disadvantages noted at this time. ENVIRONMENTAL REVIEW: No environmental review is required for this item. PUBLIC NOTIFICATION AND COMMENTS: The Agenda was posted at City Hall and on the Ci ty’s website in accordance with Government Code Section 54954.2 Attachments: 1. Lopez Monthly Operations Report for April, 2022 2. Lopez Reservoir Storage Projection 3. Monthly Water Use Comparison 4. Monthly Monitoring Report for April, 2022 Page 139 of 386 San Luis Obispo County Flood Control and Water District Zone 3 - Lopez Project - Monthly Operations Report April, 2022 0.00 Note: Deliveries are in acre-feet. One acre foot = 325, 850 gallons or 43, 560 cubic feet. Safe yield is 8,730 acre-f eet. "Year to Date" is January to present for State water, April to present for Lopez deliveries, and July to present for rainfall. 168.75 April to Present 12.51 Arroyo Grande 2061 Lopez Dam Operations Lake Elevation (full at 522.37 feet)466.4 Storage (full at 49200 acre feet)14032 Rainfall 0.51 Downstream Release (4200 acre feet/year)179.53 Spillage (acre feet)0 This Month Year to Date 179.53 0.00 742.10 168.75 Entl.Surplus Water Declared Usage 2803 Total Available Water Lopez Water Deliveries 0.00Oceano CSD 272.7 102.50 0.00375 66.79Grover Beach 720 204.20 66.79924 20.98Pismo Beach 802.8 300.80 20.981104 6.34CSA 12 220.5 82.40 6.34303 418.911240120.00 28.33968.50 135.6775035.74 State Water Deliveries 262.8640771432.00 262.865509 614.292206166.99Total Contractor Difference (feet)-55.97 % Full 28.5% Comments: 1) Oceano supplied water to Canyon Crest via Arroyo Grande's Edna turn out. A total of 1.82 AF delivered to Canyon Crest was added to Oceano's water usage this month and 1.82 AF was subtracted from Arroyo Grande's usage this month. 2) Lopez Water Deliveries are now operated under the Low Reservoir Response Plan (LRRP). In August 2021 TAC requested a 10% entitlement reduction (retroactive to April 2021) in anticipation of reaching the 15,000 AF trigger of the LRRP. Entitlements shown represent a 10% reduction. 3)Surplus water shown is actually "Carry Over" water as designated in the LRRP. 4) On April 2022, the County presented the Stored State Water minus evaporation losses dating back to the January 1, 2015 water recharacterization. On December 31, 2021 the calculated Stored State Water minus evaporation losses was 659.82 AF. Evaporation losses will be presented annually. April to Present Lopez Entitlement+Surplus Water Usage 0 50 100 150 200 Jul '21 Aug '21 Sep '21 Oct '21 Nov '21 Dec '21 Jan '22 Feb '22 Mar '22 Apr '22Acre FeetAG GB OCSD PB CSA12 January to Present State Water Usage 0 20 40 60 80 100 120 140 Jul '21 Aug '21 Sep '21 Oct '21 Nov '21 Dec '21 Jan '22 Feb '22 Mar '22 Apr '22Acre FeetOCSD PB CSA12 SanMig San Miguelito 31.381202.75 This Month % Total January to Present Usage This Month % of Annual Request Usage % of Annual Request 168.75 Total Water Deliveries This Month 35.74 66.79 140.98 14.84 2.75 429.85 Annual Request 0.00 Usage 0.00 0.00 0.00 0.00 % 0.00 0.00 0.00 0.00 0.00 168.75 0.00 66.79 20.98 6.34 262.860.00 617.00 SWP Deliveries SWP Deliveries Change in Storage 200 33.01 662.53This Month Stored State Water 0.0% 8.2%6.0% 0.0%0.0% 9.3%7.2% 2.6%1.9% 2.9%2.1% 9.7%33.8% 8.9%29.5% 4.8%18.1% 6.4%4.8%7.6%27.8% 2.3%26.2% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 8.2% 0.0% 9.3% 2.6% 2.9% 6.4%0.0% Entitlement Surplus Usage %Usage % Entitlement Surplus Usage % 629.52Last Month Stored State Water Surplus Requested 742.10 102.50 204.20 300.80 82.40 1432.00 Friday, May 6, 2022 Page 1 of 1Report printed by:AdminData entered by:D. Bravo ATTACHMENT 1 Page 140 of 386 0.54 0.00 4.70 2.14 0.240.000.000.000.000.00 0.52 1.42 5.16 0.22 0.94 0.000.000.00 0.000.000.00 2.38 0.30 7.33 0.000.00 0.430.00 2.873.10 2.77 0.900.330.06 0.030.02 0.320.62 1.34 2.03 3.023.252.91 1.13 0.410.07 0.030.020.320.62 1.70 2.24 3.12 2.98 2.84 0.98 0.36 0.350.67 1.84 10/7/2022, 10000 0.00 2.00 4.00 6.00 8.00 10.00 12.00 14.00 0 5000 10000 15000 20000 25000 30000 35000 40000 Date LOPEZ RESERVOIR STORAGE PROJECTION Actual Precipitation Predicted Precipitation Actual Storage 20,000 AF Storage Projection Storage Projection (No Rain) 10,000 AF 1. Storage projection is based on predicted rainfall from longrangeweather.com, inflow based on predicted rainfall, 20-21 downstream release requests, and municipal usage. 2. Municipal Usage is based on Jan 2010- Dec 2020 average monthly deliveries. 3. Predicted inflow is based off of historical precipitation and storage data. Antecedant moisture conditions are factored into the model. The first rainstorms after months without rain will cause less inflow than rainstorms during the rainy season. If the average daily rainfall for the previous three months is below 1 inch the model will multiply the predicted inflow by 0.1, if the average is above 1 inch the inflow is multiplied by 1.25. Page 141 of 386 ATTACHMENT 3 194.7 174.4 120 107 0 50 100 150 200 250 Apr-21 Apr-22 Monthly Water Use Comparison Production ( Acre Feet)Usage ( gpcd) Page 142 of 386 ATTACHMENT 4 Below is the information you have submitted for the month of April 2022. We use your most recently submitted monthly report in our calculations State Water Resources Control Board Office of Research, Planning & Performance Page 143 of 386 Item 9.a. MEMORANDUM TO: City Council FROM: Whitney McDonald, City Manager BY: Sarah Lansburgh, Deputy City Clerk SUBJECT: Public Hearing to Consider a Resolution Levying an Annual Assessment for the Arroyo Grande Tourism Business Improvement District (AGTBID) DATE: May 24, 2022 SUMMARY OF ACTION: Conduct the public hearing to levy an annual assessment for Fiscal Year 2022-23 to defray the costs of services, activities, and programs promoting tourism for the benefit of lodging businesses within the Arroyo Grande Tourism Business Improvement District (AGBTID). IMPACT ON FINANCIAL AND PERSONNEL RESOURCES: Based on the anticipated year-end results for 2021-22, the assessments expected to be collected total approximately $246,200 for Fiscal Year 2021-22. The AGTBID budget provides $5,000 to the City to cover a portion of the City’s cost associated with supporting a Community Services Specialist position for vacation rental code compliance. The AGTBID budget also provides $3,000 to the City for administrative support. RECOMMENDATION: 1) Conduct a public hearing to receive testimony regarding the City Council’s intention to continue the AGTBID and levy an annual assessment for Fiscal Year 2022-23; 2) Determine whether a legally sufficient number of protests have been made; and 3 ) If a legally sufficient protest is not made, adopt a Resolution levying an annual assessment for the AGTBID for FY 2022-23. BACKGROUND: In May 2013, the City Council adopted an Ordinance establishing the AGTBID. The AGTBID was formed under the Parking and Business improvement Law of 1989, Sections 36500 et. seq. of the Streets and Highways Code and incorporated into the Arroyo Grande Municipal Code (AGMC) in Title 3, Chapter 3.46. Page 144 of 386 Item 9.a. City Council Public Hearing to Consider a Resolution Levying an Annual Assessment for the Arroyo Grande Tourism Business Improvement District (AGTBID) May 24, 2022 Page 2 The purpose of forming the AGTBID was to provide revenue to defray the cost of services, activities, and programs promoting lodging businesses in the AGTBID through the promotion of scenic, recreational, cultural, and other attractions in the AGTBID as a tourist destination. An assessment is levied on all lodging businesses within the AGTBID boundaries and is based upon two percent of the rent charged by the operator per occupied room per night for all transient occupancies. ANALYSIS OF ISSUES: The AGTBID has been in effect for almost nine (9) years and has been considered successful. In January 2018, the City Council combined the Tourism Marketing Committee, which was coordinated by the Chamber of Commerce, and the AGTBID Advisory Board, increasing the number of members of the Advisory Board from a minimum of three (3) to not more than nine (9). The Advisory Board implements the programs and activities funded through the AGTBID. The South County Chamber of Commerce is contracted to administer the AGTBID program; therefore, minimal staff time has been required by the City. In June 2018, the Council approved an Agreement with Verdin Marketing for tourism marketing services to provide a fresh perspective and innovative ideas given the current economic climate and needs of Arroyo Grande’s tourism market. Since that time, a tourism website, rebranding of Visit Arroyo Grande, a monthly e -newsletter, advertising campaigns, a tourism strategic plan, and other marketing efforts have been developed and implemented. The term of the current contract with Verdin Marketing will expire on June 30, 2022. Therefore, the City, on behalf of the AGTBID , issued a Request for Proposals (RFP) for marketing, communications, website management, and social media services for Visit Arroyo Grande. The RFP was published on April 7, 2022, and close d May 13, 2022, at 5:00 p.m. the AGTBID Advisory Board will conduct interviews of submitting agencies at a Special Meeting on May 23, 2022, and a recommendation will be made to the City Council for approval of a contract with a preferred vendor for ongoing marketing services in June 2022. On March 28, 2022, the Advisory Board reviewed and approved the Annual Report and forwarded it to the City Council for consideration at the April 26, 2022 Council meeting. The City Council approved the Annual Report and adopted a Resolution of Intention to levy and collect assessments within the AGTBID area for Fiscal Year 2022-23 (Resolution 5176). A date of May 24, 2022 was set for a public hearing in accordance with Streets and Highways Code Section 36534. Today’s public hearing will allow lodging businesses subject to the assessment an opportunity to submit comments, voice concerns, and protest the assessment. As set forth in Sections 36524 and 36525 of the California Streets and Highways Code, the City Council has the ability to continue to implement the AGTBID at this public hearin g, unless written protests are received from the lodging businesses that pay 50% or more of the Page 145 of 386 Item 9.a. City Council Public Hearing to Consider a Resolution Levying an Annual Assessment for the Arroyo Grande Tourism Business Improvement District (AGTBID) May 24, 2022 Page 3 proposed assessments. In that event, Council cannot consider continuation of the AGTBID for at least one year. If the required number of written protests is not received, Streets and Highways Code Section 36535 provides that at the conclusion of the hearing a Resolution levying an annual assessment for the AGTBID for FY 2022 -23 may be adopted. The statute further provides that the adoption of the Resolution const itutes the levy of the assessment for the fiscal year. A Resolution has been prepared for Council ’s consideration and adoption if there is no legally sufficient protest. ALTERNATIVES: The following alternatives are provided for the Council’s consideration: 1. Conduct the public hearing, determine whether a legally sufficient number of protests have been made, and if a legally sufficient protest has not been made, adopt a Resolution levying an annual assessment for the AGTBID for the FY 2022- 23; or 2. Conduct the public hearing, determine whether a legal sufficient number of protests, and if a legally sufficient protest has been made, the Council cannot consider continuation of the AGTBID for at least one year; or 3. Provide other direction to staff. ADVANTAGES: The recommended actions will enable the City to extend the AGTBID, which provides a mechanism to generate funding to promote lodging stays and tourism in the City, which increases transient occupancy tax revenue and supports local businesses. DISADVANTAGES: Levying the assessment will continue to impose a cost on tourists and visitors to Arroyo Grande who pay the assessment. There are no other disadvantages identified by levying the assessment for another year. ENVIRONMENTAL REVIEW: No environmental review is required for this item. PUBLIC NOTIFICATION AND COMMENTS: The Agenda was posted at City Hall and on the City’s website in accordance with Government Code Section 54954.2. Attachments: 1. Proposed Resolution 2. Annual Report Page 146 of 386 ATTACHMENT 1 RESOLUTION NO. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ARROYO GRANDE LEVYING AN ANNUAL ASSESSMENT FOR THE ARROYO GRANDE TOURISM BUSINESS IMPROVEMENT DISTRICT FOR THE 2022-23 FISCAL YEAR WHEREAS, the Parking and Business Improvement Area Law of 1989, sections 36500 et seq. of the Streets and Highways Code, authorizes cities to establish business improvement districts for several purposes, one of which is the promotion of tourism; and WHEREAS, the Arroyo Grande Tourism Business Improvement District (“AGTBID” or “District”) was established in May 2013 and incorporated into the Arroyo Grande Municipal Code in Chapter 3.46; and WHEREAS, in accordance with the requirements of Streets and Highways Code Section 36530 and Arroyo Grande Municipal Code Section 3.46.100, the City Council appointed an Advisory Board to provide oversight, guidance, and recommendations regarding the use of the assessment funds; and WHEREAS, the Arroyo Grande Municipal Code and the Parking and Business Improvement Area Law of 1989 requires the Advisory Board to prepare and submit an annual report stating proposed changes, improvements, and activities for the fiscal year; and WHEREAS, the Advisory Board annual report was considered and approved by the Arroyo Grande City Council at its April 26, 2022 meeting; and WHEREAS, in accordance with the procedures contained in Streets and Highways Code Section 36534, on April 26, 2022, the City Council adopted a Resolution of Intention to levy an annual assessment for the Arroyo Grande Tourism Business Improvement District for the 2022-23 fiscal year and set a public hearing for May 24, 2022, to consider the annual assessment, hear any oral testimony regarding the assessment and receive any written protests; and WHEREAS. The City Council held a duly noticed public hearing on May 24, 2022, to allow for protests, as required by Streets and Highways Code Section 36524, and, sufficient written protests were not received from lodging businesses in the District which pay fifty percent of more of the assessment. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Arroyo Grande, as follows: 1. The foregoing recitals are true and correct and are incorporated herein. Page 147 of 386 RESOLUTION NO. PAGE 2 2. The City Council hereby continues the established Arroyo Grande Tourism Business Improvement District in accordance with Arroyo Grande Municipal Code Chapter 3.46 and California Streets and Highways Code Sections 36500 et seq. (Parking and Business Improvement Area Law of 1989) and levies assessments for fiscal year 2022-23 as further described herein. 3. The report of the Arroyo Grande Tourism Business Improvement District Advisory Board is hereby confirmed. 4. The location and boundaries of the Arroyo Grande Tourism Business Improvement District are the boundaries of the City of Arroyo Grande. 5. The assessment levied by the Arroyo Grande Tourism Business Improvement District shall be used for activities and programs promoting lodging businesses in the District through the promotion of scenic, recreational, cultural, and other attractions in the District as a tourist destination, and as further set forth in Arroyo Grande Municipal Code Section 3.46.030. 6. The assessment will be levied and allocated by the City of Arroyo Grande. 7. The assessment is to be levied on all “lodging,” as that term is defined in Arroyo Grande Municipal Code Section 3.46.020. 8. The assessment for fiscal year 2022 -23 shall be levied on all lodging businesses within the ATBID boundaries and shall be based upon two percent of the rent charged by the operator per occupied room per night for all transient occupancies. The assessment shall be collected quarterly, based on two percent of the rent charged by the operator per occupied room per night in revenues for the previous quarter. 9. New lodging businesses shall not be exempt from immediate assessment. On motion of , seconded by , and on the following roll call vote, to wit: AYES: NOES: ABSENT: the foregoing Resolution was passed and adopted this 24th day of May, 2022. Page 148 of 386 RESOLUTION NO. PAGE 3 CAREN RAY RUSSOM, MAYOR ATTEST: JESSICA MATSON, CITY CLERK APPROVED AS TO CONTENT: WHITNEY McDONALD, CITY MANAGER APPROVED AS TO FORM: TIMOTHY J. CARMEL, CITY ATTORNEY Page 149 of 386 Annual Report | 2021–2022 1 ATTACHMENT 2 Page 150 of 386 Overview and Goals 3 Strategic Plan 4 Completed Initiatives 5 Target Audiences 6 Geographic Markets 7 Equity, Diversity and Inclusion 8 Why Tourism Matters 9 Destination Campaigns 10 Results at a Glance 11 Email Marketing 12 Social Media 13 Paid Media 14 Public Relations & Partnerships 15 Table of Contents 2 Page 151 of 386 Overview & Goals The Arroyo Grande Tourism Business Improvement District (Arroyo Grande TBID) has a plan in motion to reach travelers whose interests and behaviors align with the genuine experi- ences found in our area. These travelers are ready to discover the magic of Arroyo Grande—a town differentiated by its charming atmosphere, striking scenery, and access to some of the Central Coast’s most sought-after experiences. The Arroyo Grande TBID Advisory Board is made up of representatives from lodging or hospitality related businesses in Arroyo Grande appointed by the City Council. The TBID helps to promote Arroyo Grande as a travel destination and is funded by a 2% assessment charged by hotels for this purpose. Position Arroyo Grande as a travel destination Increase overnight stays in Arroyo Grande Introduce new visitors to Arroyo Grande Marketing Goals: 3Page 152 of 386 In August 2020, the Arroyo Grande TBID finalized their three-year strategic plan defining key impera- tives, objectives to measure and initiatives to execute. This plan will guide all future marketing efforts and direct the organization. Vision Mission Position A thriving community rooted in authentic hospitality and nourished by a strong economy To market Arroyo Grande as a desirable travel destination, create memorable experiences and support a prosperous economy and community Visit Arroyo Grande is the city’s primary source for destination marketing services and tourism leadership. We are: • Storytellers of the Arroyo Grande tourism experience • Providers of tourism related information and data • Collaborators championing the value of tourism and supporting key tourism drivers • Stewards balancing the benefits of tourism with Arroyo Grande’s quality of life Values Reputation • Truth • Excellence • Teamwork • Community • Impact • Transparent • Forward-thinking • Reliable • Humble • Partners Imperatives Objectives Initiatives Support the Destination in Tourism Recovery and Strengthen Organizational Capacity for Future Impact • Recover/Achieve 2019 Occupancy Rate • Increase Staffing budget • Align on and implement tiered re-opening marketing and communication plan with key partners and stakeholders • Advocate for organizational capacity to ensure the resiliency of AG’s tourism economy • Enhance the tourism industry’s position and importance in AG’s economic recovery Increase Brand Awareness as a Central California Destination of Choice • Increase share of county visitor volume • Increase use of shared brand assets • Differentiate AG brand's position in the larger SLO CAL travel market • Create a content library and tool kit to influence a unified brand approach • Pursue opportunities for collaborative and aligned promotional partnerships and messaging Ensure the Quality of our Brand Promise and Visitor Experience • Increase number of visitor hours in market • Increase length of stay • Create a framework to evaluate and promote events that generate new and repeat visitors to the destination • Encourage the availability of downtown and highlight opportunities • Design attractive trip itineraries to drive visitation to AG’s portfolio of experiences Expand Stakeholder and Community Engagement to Create a Collaborative and Supportive Tourism Industry • Increase representation of lodging partners on the Board • Grow stakeholder participation • Increase resident approval of tourism • Create a stakeholder engagement and outreach campaign to educate and promote the value of the TBID to lodging partners • Collaborate with stakeholders to design and expand co-operative marketing programs • Increase the voice of tourism with key governmental, businesses and community decision makers and leaders 2021–2024 Strategic Plan 4 Page 153 of 386 Completed Initiatives Visit SLO CAL Equity, Diversity & Inclusion Study As a strategic plan initiative, Arroyo Grande TBID in partnership with Visit SLO CAL, participated in the 2021 Equity, Diversity & Inclusion (EDI) Audience & Asset Alignment Study conducted by Insights Strategic Marketing and Research. The study was designed to help identify gaps in product offerings and also provided direction to the images and messag- ing that will enable Arroyo Grande TBID to effectively communicate the leisure product and invitation to these audiences. California Welcome Center Video and Assets California Welcome Centers are strategically located across the state, staffed with experts who can provide resources and information that inspires visitors to explore a destina- tion's greater region. To help increase brand awareness for Arroyo Grande TBID, a video shoot was held to capture assets for a new California Welcome Center video spot. The videography and images captured reflect the diversity of the region and its visitors. The spot features authen- tic Arroyo Grande destination locations and activities including wineries and tasting rooms, outdoor vistas and activities, premiere restau- rants and shops. Website Content Enhancements In line with Arroyo Grande TBID content pillars, a culinary themed itinerary was developed to help drive visitation to the website and highlight the area's top food and beverage offerings to people in the trip planning phase. Existing outdoor adventures and family fun itineraries were also updated with keywords and relevant content. 5Page 154 of 386 Target Audiences Who are we be speaking to? In previous years, Arroyo Grande TBID built personas of the visitor profile to craft messages and assets that are specific to their behaviors and interests (Ex. On-the-Go Eric, Family- Focused Fiona and Ready-to-Relax Rachel). Instead, Arroyo Grande TBID aligned with Visit SLO CAL’s audience approach for the year, evolving from specific personas to target “The Purposeful Traveler.” Who is this audience? Purposeful Travelers live vividly and value simplicity, keeping life and the mind as uncluttered as possible. Authenticity and being true to oneself while maintaining strong personal relationships with family and friends is important. Curious and creative, they are open-minded, want to explore and learn about new things, and seek stimulating experiences. They are in tune with nature and themselves, doing activities they enjoy. Generation 7% 39% 22%25% 7% Gen Z 1997–2010 Millennial 1977–1996 Gen X 1965–1976 Boomers 1946–1964 Pre Boomers <1946 46% male 54% female 57% married 29% single 40% children in household 43% graduated college $130.4K household income 46 average age Ethnicity 50% White/Cauc. 30% Hispanic 6% Black/AA 12% Asian 2% Other 6 Page 155 of 386 Geographic Markets As the pandemic continues, Arroyo Grande TBID focused on shorter drive markets throughout California, including the San Francisco Bay Area, Greater Los Angeles and the Central Valley to generate overnight stays. San Francisco Bay Area1 3 Central Valley (Fresno, Visalia, Bakersfield) 2 Los Angeles (Thousand Oaks, Long Beach) 7Page 156 of 386 Equity, Diversity & Inclusion Arroyo Grande TBID is committed to ensuring its work fosters equity, diversity and inclusion, so that all visitors feel welcome. In partnership with Visit SLO CAL, the destination participated in a recent 2021 Equity, Diversity & Inclusion (EDI) Audience & Asset Alignment Study conducted by Insights Strategic Marketing and Research. The study was designed to help identify gaps in product offerings and also provided direction to the images and messaging that will enable the organization to effectively communicate the leisure product and invitation to these audiences. Strategy Arroyo Grande TBID will aim to increase familiarity and awareness of the destination among five specific audience segments includ- ing Black travelers, Hispanic travelers, Asian travelers, travelers with disabilities and LGBTQ+ travelers. Messaging will let potential visitors know that Arroyo Grande is a safe and welcoming community that invites people with diverse backgrounds. Completed Initiatives: • Showed diverse visitors in advertising and marketing materials that show people of color in a way that depicts the destination as welcoming • Developed programmatic video ads (Outdoors, Family, Culinary) that include audience segment • Utilized EDI images across all owned channels • Used inclusive language and messaging within content platforms • Amplified the voices of women-owned and minority-owned local travel and tourism related businesses • Created Instagram/Facebook stories • Positioned Arroyo Grande as a destination with small town charm and history, with a thriving culinary scene and outdoor activities that appeal to visitors from all backgrounds and ethnicities 8 Page 157 of 386 Sources: Dean Runyon, Inc., American Road & Transportation Builders Association, San Luis Obispo County of Education, United States Bureau of Labor Statistics, Tourism Economics Why Tourism Matters in SLO County Travel Spending $1.19B $3.3M a day $136K an hour $2.3K a minute $38 a second Tourism puts 10,450 people to work each day Tourism contributes $35.9M in transient occupancy tax revenue (15.6% YOY Decrease) Without state and local tax revenue generated by travel and tourism, each SLO CAL household would pay an additional $1,113 in taxes Travel spending created $66M in local tax revenue which would cover the expenses for 614 police officers’ salaries or….. 760 firefighters salaries or….. 1,401 teachers salaries or….. 106 miles of 2-lane resurfaced roads 9Page 158 of 386 Destination Campaigns To inspire travel to Arroyo Grande and build brand awareness, a series of digital ads were placed programmatically and on social media. Several motion graphics were created to attract key audiences' attention with movement and messaging covering unique travel activities in the destination. Time Well Spent In September 2021, Arroyo Grande TBID launched its new marketing campaign “Time Well Spent” that focuses on the destination as a place “where experiences are naturally more full, more engaging, and more worth your time.” The campaign targets “The Purposeful Traveler” persona geared towards family, outdoor and culinary activities. To help build brand awareness and drive hotel bookings, new video assets were utilized to create three new 15-second programmatic digital ads with voice overs that click thru to existing “outdoor adventure” and “family fun” itineraries on the website. A new “Time Well Spent” graphic is an additional layer to the campaign, used both in programmatic video and custom social media posts. 10Page 159 of 386 Results at a Glance July–February YOY 20% increase in website visits (sessions) 50% increase in time on site Reached 846,845 through paid media Facebook 20,419 engagements 12,078 clicks from paid media Instagram 6,589 engagements Transient Occupancy Tax (TOT) July–January totals 2020–2021: $519,636 2021–2022: $FPO 2019–2020: $684,104 2018–2019: $596,208 2017–2018: $576,450 34% decrease in pageviews 11 Page 160 of 386 Email Marketing Email marketing keeps Arroyo Grande top of mind for potential travelers and highlights the destination's unique offerings. This year, the design template was refreshed to bring in video assets to attract readers’ interests. The monthly newsletter is sent out to an opt-in subscriber database through Mailchimp with featured content covering the following: • Specific themes from Arroyo Grande’s key messaging points • Promotion of events, new happenings and local businesses that support tourism • Itineraries, activities, restaurants, accommodations and more that build interest in planning an Arroyo Grande getaway, with URLs that link to the website 3.9% average click rate E-newsletter Results: 1,054 email subscribers 8 distributed newsletters 32% average open rate Industry benchmarks show an average open rate of 20.4% and click rate of 2.25%. Source: Mailchimp 12Page 161 of 386 Social Media Arroyo Grande TBID developed engaging content on its owned social media channels (Facebook, Instagram and Twitter) with the goal to strengthen its brand identity and create awareness of the destination. • Used new video/photo assets in social media posts and stories • Developed original content geared towards targeted personas around local favorites including businesses, history, people and artisans, etc. that highlighted the friendly and historic character of the destination • Incorporated Time Well Spent campaign messaging • Shared user-generated content to build audience and to show authentic experiences • Supported local events 20,419 engagements (19% increase YOY) 6,589 total engagements (1% increase YOY) 110,019 impressions (25% increase YOY) 261,774 impressions (40% increase YOY) Facebook Results: Instagram Results: 6,039 followers (4% decrease YOY) 3,040 followers (17% increase YOY) 13 Page 162 of 386 Paid Media July 2021–February 2022 had strong performance across all digital platforms: programmatic video and paid search. Programmatic video had over 800,000 impressions and over 5,000 clicks/visits to the website. The programmatic buy also tracked visits as a conversion and had over 5,000 tracked visits. Paid search was started this year with 96,000 impressions, and over 7,000 clicks. Performance was excellent across the board for Arroyo Grande TBID. FY 2022 Media Timeline SLO CAL Campaign Co-op South County Visitors Guide 2021 July Aug Sept Oct Nov Dec Jan Feb Mar Apr May June 2022Print Partnership Programs*CCTC Co-op Sunset Magazine Social Search Video Allocation Total spend $70,000 Programmatic Video: 56% Social Media: 9% Co-op Partnership Programs (CCTC Sunset Co-op, SLO CAL Campaign Co-Op, South County Visitors Guide): 13% Search: 22% *Arroyo Grande TBID leverages its regional partnerships with Central Coast Tourism Council and Visit SLO CAL for industry research and participates in reactive co-op print/digital advertising opportunities throughout the fiscal year. 14Page 163 of 386 In an effort to differentiate Arroyo Grande TBID’s brand's position in the larger travel market and continue to increase exposure for the destination through earned media, Arroyo Grande TBID leveraged its existing tourism partnerships with Visit California, Visit SLO CAL, Highway 1 Discov- ery Route and Central Coast Tourism Council. In February, Arroyo Grande TBID partnered with the City of SLO and Highway 1 Discovery Route to host a press trip for two journalists who represented lifestyle and culinary outlets including Food Wine Travel Magazine, the official International Food Wine and Travel Writers Association Magazine, travel site Wander with Wonder and "SoCal Restaurant Show" in LA on AM 830 KLAA. Public Relations & Partnerships Visit California is the state marketing agency that partners with the state’s travel industry to keep California top-of- mind as a premier travel destination. Arroyo Grande TBID submitted story pitches and content for the following marketing topics: • California’s Holiday Spirit • California’s Sustainable Wineries • Roadside Must Eats Visit SLO CAL is the non-profit county- wide destination marketing and management organization for San Luis Obispo County. They are responsible for promoting a community as an attractive travel destination and enhancing its public image as a dynamic place to live and work. In addition to submitting content about Arroyo Grande for use in media pitching and story lead generation, Arroyo Grande TBID also partnered with them on the following initiatives: • Future Visitor Profile Study • Equity, Diversity & Inclusion Asset Alignment Study • House of Brands Phase 1 The Central Coast Tourism Council is a marketing organization that promotes the Central Coast of California. Arroyo Grande TBID submitted content for the following marketing topics: • Event promotion and content • Sunset co-op Partnerships: 15 Page 164 of 386 visitarroyogrande.org Page 165 of 386 Item 9.b. MEMORANDUM TO: City Council FROM: Brian Pedrotti, Community Development Director BY: Andrew Perez, Planning Manager SUBJECT: Discuss and Consider Introduction of an Ordinance Amending Title 16 of the Arroyo Grande Municipal Code to Implement Senate Bill 9; Development Code Amendment 21-002; Location – Citywide DATE: May 24, 2022 SUMMARY OF ACTION: Introduction of the proposed Ordinance amending Title 16 of the Arroyo Grande Municipal Code to implement Senate Bill 9 locally (Attachment 1) will allow for adoption of the ordinance at a future City Council meeting. IMPACT ON FINANCIAL AND PERSONNEL RESOURCES: No financial impact is projected. RECOMMENDATION: Introduce an Ordinance establishing regulations for projects proposed under the provisions of SB 9. BACKGROUND: SB 9 was signed by Governor Newsom on September 16, 2021, and became effective January 1, 2022 (Attachment 2). This bill is intended to stre amline housing development by requiring a proposed housing development containing no more than two residential units within a single-family residential zone to be considered ministerially, without discretionary review or hearing, if the proposed housing de velopment meets certain requirements. SB 9 also requires a local agency to ministerially approve a parcel map for an urban lot split in a single-family residential zone if it meets certain requirements, including minimum lot size requirements and certain objective standards. Cities may deny an SB 9 project or subdivision that otherwise meets the requirements of SB 9 only if the Building Official determines it will result in a specific, adverse impact on health and safety and there is no feasible way to mitigate the impact. Page 166 of 386 Item 9.b. City Council Discuss and Consider Introduction of an Ordinance Amending Title 16 of the Arroyo Grande Municipal Code to Implement Senate Bill 9; Development Code Amendment 21-002; Location – Citywide May 24, 2022 Page 2 City Council Study Session A study session was held with the City Council on March 22, 2022, to provide a forum for community comments and to discuss implications of SB 9 to aid staff in refining the draft Ordinance (Attachment 3). Council expressed concerns with the effects of the unplanned density associated with potential SB 9 development and also discussed impacts to the water supply, how SB 9 affects developments with homeowner’s association, and the proposed objective design standards, including height limits and parking design. These concerns and direction are noted in more detail in the corresponding sections of this report. Additionally, Council directed staff to present draft objective design standards to the Architectural Review Committee (ARC) for review and recommendation prior to the Planning Commission’s consideration of the draft ordinance. Architectural Review Committee Staff presented the draft objective design standards to the ARC on April 18, 2022 for comments and a recommendation to Planning Commission. In general, the ARC recommended revisions to the design standards that allowed for more flexibility. For example, one recommendation was that the maximum size of units should be tied to lot size rather than the one-size fits all approach of a 1,200 square foot limit. The ARC also recommended that additional flexibility should be incorporated into the standards for building materials and colors. Recommendations from the ARC were included in the draft Ordinance brought to the Planning Commission. Planning Commission Review On May 3, 2022, staff presented the draft ordinance to the Planning Commission for a recommendation hearing (Attachment 4). The Planning Commission adopted a Resolution recommending adoption of the draft ordinance with substantial revisions from the direction provided by the City Council (Attachment 5). These changes proposed by the Commission include allowances for more units and larger units, more permissive height allowances, an elimination of parking, and allowance for ADUs on lots created through SB 9. These changes will be explained in more detail in the corresponding sections of this report. ANALYSIS OF ISSUES: SB 9 can be broken into two primary components: 1) provisions that allow subdivisions of a single-family zoned lot into two lots (“subdivisions”); and 2) provisions that allow construction of two units on a single-family zoned property (“two-unit projects”). These provisions can be used in concert, so that an applicant could su bdivide an existing parcel and build two units on each parcel. Qualifying Properties Parcels located in any zoning district allowing single family residential uses are eligible for SB 9 development. This includes the Residential Estate, Residential Hillsi de, Page 167 of 386 Item 9.b. City Council Discuss and Consider Introduction of an Ordinance Amending Title 16 of the Arroyo Grande Municipal Code to Implement Senate Bill 9; Development Code Amendment 21-002; Location – Citywide May 24, 2022 Page 3 Residential Rural, Residential Suburban, Village Residential, Single Family zones, and the Planned Development districts, which all permit single-family residences as an allowed use. In the draft ordinance presented to Council at the study session, only parcels in the Single Family zone would have been eligible for development under the draft SB 9 ordinance. This was based on staff’s interpretation and guidance from the City Attorney regarding the terms of SB 9. Subsequent to the study session, the California Department of Housing and Community Development released a n SB 9 Fact Sheet with information about the legislation (Attachment 6). Based on the information in that document, the zoning districts eligible for SB 9 development has been broadened to in clude all zones that permit single family residential as an allowed use. Regardless of zoning, properties are excluded from using SB 9 for two -unit projects and/or subdivisions if they are located in any of the following areas:  Prime farmlands or farmlands of statewide importance, or farmlands protected by a local ordinance  Wetlands, as defined in the United States Fish and Wildlife Service Manual  A hazardous waste site  Lands identified for conservation in an adopted conservation plan or under a conservation easement  Habitat for protected species  Within a historic district or on a site that is designated as historic As indicated above, SB 9 does not apply to parcels located “within a historic district or property included on the State Historic Resources Inventory, as defined in Section 5020.1 of the Public Resources Code.” Under Public Resources Code Section 5020.1, “Historic district” means “a definable unified geographic entity that possesses a significant concentration, linkage, or continuity of sites, buildings, structures, or objects united historically or aesthetically by plan or physical development.” Studies were conducted by the City that confirm the Historic Character Overlay District (D-2.4) possesses a high concentration of historically relevant sites and structures which supported creation of the district. Therefore, parcels in the overlay district would be ineligible for purposes of SB 9. Prime farmland and farmlands of statewide importance are present within the City, most of which is found near Fair Oaks Avenue between Woodland Drive and Highway 101 and in the areas near Branch Mill Road (Attachment 7). These areas would not be eligible for SB 9 projects. Three other areas are identified as conditionally excluded from SB 9. These areas include:  Within a very high fire hazard severity zone  Within a delineated earthquake fault zone, unless the project is designed to meet building code requirements for building within such zone Page 168 of 386 Item 9.b. City Council Discuss and Consider Introduction of an Ordinance Amending Title 16 of the Arroyo Grande Municipal Code to Implement Senate Bill 9; Development Code Amendment 21-002; Location – Citywide May 24, 2022 Page 4  Within a special flood hazard area or regulatory floodway, unless certain requirements are met SB 9 development is allowed in the three areas listed above, but only when applicable building code and measures for hazard mitigation are met. For example, a property in the flood zone is required to provide a no -rise certification, prepared in accordance with Federal Emergency Management Agency guidelines, to indicate that the construction of a building will not increase flood hazards downstream. Certain building techniques and materials measures are required for SB 9 developments on properties in an earthquake or high fire zone. A property can only be subdivided pursuant to SB 9 once. SB 9 also precludes the same applicant, or someone working in concert with the applicant, from subdividing adjacent properties. SB 9 does not override covenants, conditions, and restrictions (CC&Rs) or other private governing documents for homeowner’s associations (HOA) or common - interest developments, meaning these developments may impose further restrictions on subdivision of parcels and two-unit developments. The City would process an SB 9 application where CC&Rs or other documents might otherwise restrict SB 9 projects, and because the City is not a party to private governing documents, enforcement of such documents is left to the HOA or affected property owners. The application for SB 9 projects will include a disclaimer for the applicant to acknowledge notification of their HOA when applicable. Urban Lot Splits Lot splits proposed under the provisions of SB 9 are referred to as Urban Lot Splits (ULS). The legislation requires that a parcel map for an ULS shall be approved ministerially, without discretionary review. Parcels developed with affordable housing or re sidential units that have been occupied by a tenant within three (3) years of the ULS application may not be split if the application proposes to alter or demolish the residential units. Under the subdivision provisions of SB 9, the City must also allow a single-family zoned property to be subdivided into two roughly proportional lots. To ensure rough proportionality, SB 9 specifies that one lot cannot be less than 40 percent of the size of the other. The bill also establishes a minimum lot size of 1,200 square feet for lots created through an urban lot split. Provisions of SB 9 include the following allowances and restrictions on subdivisions:  Cannot require dedication of right-of-way or construction of off-site improvements (such as installation of a sidewalk where there is none);  May require that parcels have access to a public right -of-way;  May require easements for the provision of public services and facilities; and  Must require the applicant to sign an affidavit stating that the applicant intends to live on one of the properties as their primary residence for at least three years after Page 169 of 386 Item 9.b. City Council Discuss and Consider Introduction of an Ordinance Amending Title 16 of the Arroyo Grande Municipal Code to Implement Senate Bill 9; Development Code Amendment 21-002; Location – Citywide May 24, 2022 Page 5 the date of the subdivision. This requirement does not apply to an urban land trust or qualified non-profit. Units built on lots created through an ULS are reserved f or residential uses, may not be permitted for short term rentals, and require owner occupancy for at least three years from the date of the approval of the ULS. An owner affidavit will be required with the application for a ULS and, in addition to the owner occupancy statement, must include a clause stating that a unit located on a lot created through an ULS will not be used as a short term rental. Two-unit Development A housing development consisting of two residential units within a single-family residential zone shall also be considered ministerially, without discretionary review or hearing , if developed pursuant to the provisions in SB 9. A two-unit development may include the construction of two new units, or the addition of a new unit to a property already developed with a single-family dwelling. A two-unit development would be subject to the following requirements, among others:  The proposed housing development would not require demolition or alteration of housing that is subject to a recorded covenant, ordinance, or law that restricts rents to levels affordable to persons and families of moderate, low, or very low income;  The proposed housing development would not require demolition or alteration of housing that has been occupied by a tenant in the l ast three years;  The proposed housing development does not allow for the demolition of more than 25% of the existing exterior structural walls of an existing residential unit on the property unless the site has not been occupied by a tenant in the last thr ee years; and  The development is not located within a historic district, is not included on the State Historic Resources Inventory, or is not within a site that is legally designated or listed as a city or county landmark or historic property or district. When an application for a two-unit development is submitted that proposes the demolition of an existing unit, staff will confirm the subject parcel complies with the State mandated requirements listed above. Staff maintains a database of deed -restricted affordable housing units that will be referenced to verify an affordable unit is not proposed for demolition. Furthermore, staff can obtain water billing information to verify whether a unit has been rented in the previous three years. The Planning Commission recommendation includes allowances for either an ADU or JADU in addition to a two-unit development on lots created through an ULS. This would increase the maximum number of units allowed between the two lots from four (4) units, the minimum required by SB 9, to six (6) units. The motivation behind the Commission’s recommendation was a desire to provide flexibility and feasibility for larger lots to Page 170 of 386 Item 9.b. City Council Discuss and Consider Introduction of an Ordinance Amending Title 16 of the Arroyo Grande Municipal Code to Implement Senate Bill 9; Development Code Amendment 21-002; Location – Citywide May 24, 2022 Page 6 construct housing that would result in progress towards the meeting the demand in the community. To construct six units on the vast majority of the residential parcels within the City, while remaining within the FAR limits, will require smaller units, which are likely to be more affordable for future tenants. An increase in the number of units, and especially units that would sell or rent at affordable levels, would also help accomplish goals established in the Housing Element. Accessory Dwelling Units ADUs are allowed with SB 9 projects; however, SB 9 states that an agency shall not be required to permit more than two units on a parcel created by an ULS. In addition, SB 9 states that the City is not required to permit an ADU on parcels that propose both a two - unit residential development and an ULS. The draft ordinance presented to the Planning Commission prohibited ADUs on parcels created through an ULS, as supported by the City Council during the March 22, 2022 study session. After discussing the prohibition, the Planning Commission decided to recommend allowing either an ADU or JADU on lots created through a ULS, in addition to a two-unit development to achieve the six (6) unit maximum (three units total on each ULS lot). Up to two ADUs or JADUs would be allowed on lots not created through a ULS , in accordance with SB 9. Objective design standards would apply to ADUs as well as two-unit developments. Objective Design Standards The City may adopt objective development standards for SB 9 projects, but those standards cannot preclude construction of at least two units of 800 square feet in size each. Objective standards are those standards that involve no exercise in judgement to apply, such as numeric setback requirements. These design standards can regulate specific standards such as unit size, height limits, aesthetics, and function. SB 9 already includes the following mandatory development standards:  Cannot require more than four-foot side and rear setbacks for SB 9 developments;  Cannot require more than one parking space per unit. Cannot require any parking for projects within a half-mile walking distance of high-quality transit or major transit stops, as defined by state law, or if there is a car share vehicle located within one block;  Must allow construction of attached units; however, attached units must be designed to meet all requirements for selling each unit individually;  No setback can be required for existing structures, and  The City shall not require the correction of non-conforming zoning conditions on a property as a condition of approval of a project or deny a project due to existing non-conformities. A high-quality transit stop is defined as a stop on a fixed route bus service with service intervals no longer than 15 minutes during peak commute hours. Every bus route serving Page 171 of 386 Item 9.b. City Council Discuss and Consider Introduction of an Ordinance Amending Title 16 of the Arroyo Grande Municipal Code to Implement Senate Bill 9; Development Code Amendment 21-002; Location – Citywide May 24, 2022 Page 7 Arroyo Grande has service intervals exceeding 15 minutes, th erefore the parking exemption described above is not available for SB 9 projects in the City unless bus service changes to meet the State definitions. Beyond the mandatory development standards, the City may incorporate standards for floor-area ratios, height, lot coverage, and building separation, among others. Just as with units that are constructed on parcels created through a ULS, two-unit developments may not be short term rentals. On April 18, 2022, the ARC reviewed the proposed objective design standards that were refined after the study session with Council (Attachment 8). As a result of that meeting, standards for maximum unit size, height, rooftop decks, color, and materials were revised based on the feedback from ARC. For example, the ARC found the unit size maximum of 1,200 square feet would be overly restrictive for the larger single family lots and would discourage SB 9 development in areas where it is most appropriate. Using the floor-area ratios (FAR) already established in the Municipal Code was determined to be a solution that is both equitable and maintains neighborhood character. The floor -area ratios found in AGMC 16.32.050 are summarized in Table 1. Table 1: Floor-Area Ratio Maximums Lot Size Floor Area Ratio Maximum 0-4,000 sq. ft. 0.35 4,001-7,199 sq. ft. 0.40 7,200-11,999 sq. ft. 0.50 12,000-39,999 sq. ft. 0.45 Greater than 40,000 sq. ft. None The Planning Commission was in favor of a hybrid approach in regards to maximum size, by using FAR to regulate the size of SB 9 development, with the caveat that the FAR cannot preclude at least two (2) 1,200 square foot units developed pursuant to SB 9 in order to spur housing creation. At the study session, Council was undecided about whether a 16-foot height limit would be appropriate. To provide flexibility, the height standard that was presented to Planning Commission limited building height to 16-feet within the setbacks of the underlying zone, and buildings, or portions thereof, that comply with the setbacks of the underlying district would be subject to the height limit of that district. Planning Commission found that height standard overly restrictive, and therefore, amended the proposed height limit to 30 feet, consistent with the height limit of all single-family zones. The building separation standard is proposed to maximize privacy and outdoor space for inhabitants of SB 9 units. Initially, staff proposed a prohibition of rooftop decks, but the ARC felt that rooftop decks provide an opportunity for outdoor living space and recommended removal of this standard. Page 172 of 386 Item 9.b. City Council Discuss and Consider Introduction of an Ordinance Amending Title 16 of the Arroyo Grande Municipal Code to Implement Senate Bill 9; Development Code Amendment 21-002; Location – Citywide May 24, 2022 Page 8 Standards for colors and materials are intended to ensure a minimal amount of aesthe tic quality. The cladding materials are commonly found throughout the City, and prevent the use of less durable materials that would deteriorate over time and become unsightly. Multiple colors are required to ensure more visual appeal than a simple, single color. SB 9 establishes a maximum parking requirement of o ne parking space per unit. The draft Ordinance reviewed by Planning Commission required one covered parking space per unit and included standards for parking locations and configurations. Arroyo Grande Municipal Code Section 16.56.030 already prohibits parking in a front setback, but makes an exception for parking spaces on a lawfully established driveway. The standard requiring a landscape buffer is intended to prevent parking from dominating the most publicly visible area of a property. Shared driveways are a way to minimize the amount of paving on a property for both aesthetic and stormwater management purposes. The Planning Commission discussed the issue of parking and initially was in favor or eliminating the covered parking requirement for SB 9 units because of the additional costs and land associated with a garage or carport. Upon further discussion, the PC recommendation to Council includes removing parking requirements from the draft Ordinance as another way to incentivize SB 9 development. Design standards for parking and on-site circulation remain in the draft Ordinance, but would only apply when parking is voluntarily proposed by an applicant. Requiring connection to City utilities (water and sewer) will ensure that units developed under SB 9 will remain livable without relying on private water wells or septic systems, which have a finite lifespan. The screening standards applicable to service areas and mechanical equipment are intended to hide areas for storage of trash receptacles, air conditioning units, and utility meters to maintain neighborhood character. Public Improvements SB 9 does not allow the City to require dedication of rights-of-way or the construction of off-site improvements as a condition of approval for an ULS. The City may impose Arroyo Grande Municipal Code Chapter 16.68 requiring the undergrounding of utilities at the time of building permit issuance. Development impact fees, such as those for fire protection, police facilities, park improvements, and traffic signalization, and connection fees for water and wastewater may be collected with building permit fees for new residential units proposed with the provisions of SB 9. Planning Commission and ARC Recommendations Because there were significant differences between the City Council direction and the recommendations from the ARC and Planning Commission, staff has summarized the evolution of the recommendations below in Table 2 that are reflected in the draft Ordinance as it relates to the number of units, maximum size, height, and parking. Page 173 of 386 Item 9.b. City Council Discuss and Consider Introduction of an Ordinance Amending Title 16 of the Arroyo Grande Municipal Code to Implement Senate Bill 9; Development Code Amendment 21-002; Location – Citywide May 24, 2022 Page 9 Table 2 CC Study Session ARC Recommendation PC Recommendation Number of Units Four (4) units max. No Change Six (6) unit maximum on a lot divided through an urban lot split by means of an additional ADU/JADU. Max. Unit Size 1,200 sq. ft. Use FAR maximums from Municipal Code to regulate size. Use FAR as maximum, but with the caveat that FAR shall not preclude the construction of two 1,200 sf units on any lot. ADUs Up to two allowed in addition to two- unit developments. None on lots created through an ULS. No Change Up to two allowed in addition to two-unit developments. One ADU/JADU allowed in addition to two-unit developments on lots create through an ULS Max Height 16 feet Structures, or portions thereof, located within the setback of an underlying zone are limited to 16 feet, otherwise the height limit of the underlying zone district applies. Height limit of 30’ for all SB 9 units regardless of setback Parking One (1) covered parking space per unit No change Waive parking requirements for all SB 9 units Next Steps Introduction of the Ordinance will begin the final steps in the process to establish regulations for SB 9 projects. Adoption of the Ordinance is proposed to occur at the next Council meeting on June 14, 2022, unless Council directs staff to make substantial revisions to the Ordinance, in which case a revised ordinance will be prepared and presented for consideration and introduction at a future City Council meeting. ALTERNATIVES: The following alternatives are provided for the Council’s consideration: Page 174 of 386 Item 9.b. City Council Discuss and Consider Introduction of an Ordinance Amending Title 16 of the Arroyo Grande Municipal Code to Implement Senate Bill 9; Development Code Amendment 21-002; Location – Citywide May 24, 2022 Page 10 1. Introduce the attached Ordinance approving Development Code Amendment 2 1- 002; 2. Modify as appropriate and introduce the attached Ordinance approving Development Code Amendment 21-002; 3. Continue the introduction of the Ordinance, and provide direction to staff on specific revisions to the Ordinance; or 4. Provide other direction to staff. ADVANTAGES: Adoption of the Ordinance would regulate development in a manner that is appropriate for Arroyo Grande. The proposed objective design standards would allow significant development under SB 9 and progress towards housing goals established in the Housing Element. DISADVANTAGES: The reduced setbacks allowed by SB 9 would increase density in a manner not anticipated by the Municipal Code and may change the character of residential neighborhoods. ENVIRONMENTAL REVIEW: In compliance with the California Environmental Quality Act (CEQA), the Community Development Department has determined that the adoption of an ordinance to implement Senate Bill 9 creates a ministerial review process and therefore is exempt from the requirements of CEQA pursuant to Division 13 (commencing with Section 2 1000) of the Public Resources Code. PUBLIC NOTIFICATION AND COMMENTS: A notice of public hearing was published in the Tribune and posted at City Hall and on the City’s website on May 13, 2022. The Agenda was posted at City Hall and on the City’s website in accordance with Government Code Section 54954.2. Attachments: 1. Proposed Ordinance 2. Senate Bill 9 3. Staff Report and Minutes from March 22, 2022 City Council Study Session 4. Staff Report and Draft Minutes from May 3, 2022 Planning Commission meeting 5. Planning Commission Resolution 22-2361 6. HCD SB 9 Fact Sheet 7. Farmland Map 8. Minutes from the April 18, 2022 ARC Meeting Page 175 of 386 ATTACHMENT 1 ORDINANCE NO. AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF ARROYO GRANDE AMENDING TITLE 16 OF THE ARROYO GRANDE MUNICIPAL CODE AND ADDING SECTIONS 16.32.060 AND 16.20.180 PERTAINING TO REGULATIONS FOR TWO-UNIT RESIDENTIAL DEVELOPMENT WITHIN SINGLE-FAMILY RESIDENTIAL ZONES AND TO PARCEL MAPS FOR URBAN LOT SPLITS TO COMPLY WITH SENATE BILL 9 (SB 9), CALIFORNIA GOVERNMENT CODE SECTIONS 65852.21 AND 66411.7 WHEREAS, on September 16, 2021, Governor Gavin Newsom signed Senate Bill 9 into law, which establishes a series of new regulations to allow for ministerial approval of two units on parcels located in single-family residential zones as set forth in Government Code Section 65852.21 and ministerial approval of urban lot splits pursuant to Government Code Section 66411.7; and WHEREAS, Government Code sections 65852.21 and 66411.7 permit the imposition of objective zoning standards, objective design standards and objective subdivision standards on two-unit residential development projects and urban lot splits, provided that they do not physically preclude the construction of up to two units of at least 800 square feet in floor area; and WHEREAS, the City of Arroyo Grande desires to amend Title 16 of the Arroyo Grande Municipal Code to comply with the provisions of Government Code sections 65852.21 and 66411.7; and WHEREAS, the City of Arroyo Grande has duly initiated this amendment to the Arroyo Grande Municipal Code to add Section 16.32.060 pertaining to Regulations for Two - Unit Residential Development within Single-Family Residential Zones and Section 16.20.180 pertaining to Parcel Maps for Urban Lot Spits; and WHEREAS, the Planning Commission of the City of Arroyo Grande, after giving notices thereof as required by law, held a public hearing on May 3, 2022 concerning this code amendment and carefully considered all pertinent testimony and the staff report offered in the case as presented; and WHEREAS, on May 3, 2022, the Planning Commission of the Arroyo Grande recommended to the City Council adding Sections 16.20.180 and 16.32.060 to the AGMC; and WHEREAS, the City Council of the City of Arroyo Grande has, after giving notice thereof as required by law, held a public hearing on May 24, 2022, concerning the addition of AGMC Sections 16.20.180 and 16.32.060; and Page 176 of 386 ORDINANCE NO. PAGE 2 WHEREAS, the City Council of the City of Arroyo Grande, at its regularly scheduled public meeting on May 24, 2022 introduced this Ordinance to add Section 16.20.180 to Title 16, Chapter 20 and 16.32.060 to Title 16, Chapter 32 of the AGMC; and WHEREAS, the City Council has carefully considered all pe rtinent testimony and the staff report, its attachments and all supporting materials referenced therein or offered in the matter as presented at the public hearing. NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF ARROYO GRANDE DOES ORDAIN AS FOLLOWS: SECTION 1. The above recitals and findings are true and correct and are incorporated herein by this reference. SECTION 2. Section 16.20.180 is hereby added to Title 16, Chapter 20 of the Arroyo Grande Municipal Code to read as follows: Section 16.20.180 Parcel Maps for Urban Lot Spits A. Purpose and Scope 1. This Section implements Government Code section 66411.7 to provide an owner of property in the Single-Family zoning district an additional method to subdivide the parcel for the purpose of housing development. 2. Urban lot split means the subdivision of an existing legal parcel in a single -family zoning district to create no more than two new parcels. B. Application and Approval 1. A parcel map for an urban lot split may not be approved except in conjunction with a concurrently submitted application for building permits for two -unit residential development pursuant to Section 16.32.060. Development on the resulting parcels is limited to the residential development approved in the concurrently submitted building permit applications. 2. A parcel map for an urban lot split must be prepared by a registered civil engineer or licensed land surveyor in accordance with Government Code sections 66444 – 66450 and this Section, and submitted for approval to the City Engineer. A fee in an amount established by City Council resolution must be paid concurrently with the submission of the parcel map. 3. The City Engineer is the approval authority f or parcel maps under this Section. The City Engineer shall approve a parcel map for an urban lot split if the Engineer determines that it meets all of the requirements of this Section. Page 177 of 386 ORDINANCE NO. PAGE 3 C. The following supplemental information is required to be submitted with a parcel map to establish compliance with the construction plans and all provisions of this Code and applicable State law: 1. A map of appropriate size and to scale showing all of the following: a. Total area (in acreage and square feet) of each proposed lot. b. Location and dimensions of existing and proposed property lines; c. Zoning District; d. The location and use of all existing and proposed structures; e. All required zoning setbacks for the existing and proposed lots; f. The location of all existing water, sewer, electricity, storm drain, or gas service lines, pipes, systems, or easements; g. The location of all proposed new water, sewer, storm drain, lines, pipes, or systems; h. The location of any proposed easements for acces s or public utilities to serve a lot created by the subdivision; i. The location of any existing trees larger than four inches in diameter measured four feet six inches above the base and any such trees proposed for removal; j. Any area of the parcel that has a slope of 25% or greater by way of contours at 5-foot intervals; l. Name and dimensions, including right-of-way and improved area, of public and private streets or public alleys adjoining the parcel; m. Curb, gutter, sidewalk, parkway, and street trees: type, location, and dimensions; n. Location of existing or proposed driveway dimensions, materials, and slope (including cross slope); and o. Location of existing or proposed pedestrian pathway access to the public right of way. 2. A statement of the owner, signed under penalty of perjury under the laws of California, that: a. The proposed urban lot split would not require or authorize demolition or alteration of any of the following types of housing: Page 178 of 386 ORDINANCE NO. PAGE 4 (i) Housing that is subject to a recorded covenant, ordinance, or law that restricts rents to levels affordable to persons and families of moderate, low, or very low income. (ii) Housing that is subject to any form of rent or price control through a public entity’s valid exercise of its police power. (iii) A parcel or parcels on which an owner of residential real property has exercised the owner’s rights under Section 12.75 (commencing with Section 7060) of Division 7 of Title 1 of the Government Code to withdraw accommodations from rent or lease within 15 years before the date that the development proponent submits an application. (iv) Housing that has been occupied by a tenant in the last three years. b. The parcel has not been established through prior exercise of an urban lot split under this Section; c. Neither the owner of the parcel being subdivided nor any person acting in concert with the owner has previously subdivided an adjacent parcel under the provisions of this Section. d. The owner intends to occupy one of the housing units located on a lot created by the parcel map as their principal residence for a minimum of three years from the date of the recording of the parcel map. e. Rental terms of any unit created by the subdivision shall not be less than 31 consecutive days, nor shall rental terms allow termination of the tenancy prior to the expiration of at least one thirty-one (31) day period of occupancy by the same tenant. f. The uses allowed on a lot created by the parcel map shall be limited to residential uses. D. Design and Improvement Requirements 1. A parcel map may subdivide an existing legal parcel to create no more than two parcels of approximately equal lot area. One parcel shall not be smaller than 40 percent of the lot area of the original parcel propose d for subdivision and neither parcel shall be smaller than 1,200 square feet.: 2. Each parcel must be served by a separate water service meter and a separate sewer connection. 3. Each parcel shall either drain a developed drainage easement or in accor dance with the City’s Standard Specification and Engineering Standards. Page 179 of 386 ORDINANCE NO. PAGE 5 4. Rights-of-way as required for access along all natural watercourses as necessary for flood control, maintenance, and improvement shall be dedicated. 5. The parcel must satisfy the requirements of Government Code section 66411.7(a). 6. A lot line shall not bisect or be located within 4 feet of any of the following: a. A dwelling that has been occupied by a tenant at any time during the three years before the date of the parcel map; b. A structure designated as a historic structure or a candidate structure under any City ordinance or included on the State Historic Resources Inventory; c. A dwelling that is subject to a recorded covenant, ordinance, or law that restricts rents to levels affordable to persons and families of moderate, low, or very low income. d. Existing easements if the resulting lot would create a developable area that would interfere with the use of the easement for its intended purpose. 7. The location and orientation of new lot lines shall meet the following standards: a. Front lot lines shall conform to the minimum public street frontage requirements of the Development Code; a flag lot, or a lot with a narrow projecting strip of land extending along a street, is not permitted. b. Each parcel shall have approximately equal lot width and lot depth, consistent with the minimum lot sizes described in subsection D, above. Lot depth shall be measured at the midpoint of the front lot line. Lot width shall be measured by a line connecting two points on opposite interior lot lines that will result in a line parallel to the front lot line. c. New lot lines must be straight lines, unless there is a conflict with existing improvements or the natural environmen t in which case the line may be not be straight but shall follow the appropriate course. d. Lot lines facing a street shall generally be parallel to the street. Unless the minimum public street frontage is provided, the lot line dividing the two parcels must be parallel to and not less than 50 feet from an existing front lot line, or outside the front half of the existing lot, whichever is greater. e. Interior lot lines not facing the street shall be at right angles perpendicular to the street on straight streets, or radial to the street on curved streets. f. Lot lines shall be located within appropriate physical locations such as the top of creek banks, at appropriate topographical changes (top or bottom of Page 180 of 386 ORDINANCE NO. PAGE 6 slopes etc.) or at locations which clearly separate existing and proposed land uses. g. Lot lines shall be contiguous with existing zoning boundaries. h. The placement of lot lines shall not result in an accessory building or accessory use on a lot without a main building or primary use on the s ame lot, as defined in the Development Code. i. Lot lines shall not render an existing structure as nonconforming in any respect (e.g., setbacks, Floor Area Ratio, parking), nor increase the nonconformity of an existing nonconforming structure. E. Access Standards 1. Each lot shall front upon or have access to a public street, or be served by an access easement serving no more than two lots. Access shall be provided in compliance with these standards: a. Vehicle access easements serving a maximum of two units shall meet the following standards: i. Easement width shall be a minimum of 10 feet and a maximum of 16 feet, unless a wider driveway is required by the California Fire Code due to distance of the structure from the easement, or as needed to me et the driveway and parking standards in the City’s standards. ii. The minimum length for a vehicle access easement is 20 feet. No maximum easement length shall be set. If easement length is more than 75 feet, a vehicle turnaround shall be provided. iii. No residential structure shall be closer than 3 feet to the easement. b. Vehicle access easements serving three to four units shall meet the following standards: i. Easement width shall be a minimum of 20 feet. ii. The minimum length for a vehicle access easement is 20 feet. No maximum easement length shall be set. If easement length is more than 75 feet, a vehicle turnaround shall be provided. iii. No residential structure shall be closer than 5 feet to the easement. c. Where a lot does not abut a public street, and where no automobile parking spaces are required or proposed for the residential development, a vehicle access easement is not required. An easement providing pedestrian access to a street from each lot shall be provided meeting the fo llowing standards: Page 181 of 386 ORDINANCE NO. PAGE 7 i. Easement width shall be a minimum of five feet; ii. Pedestrian access easements shall not exceed 200 feet in length. 2. Vehicle access easements shall not be located closer than 25 feet to an intersection. 3. Access and provisions for fire protection consistent with the California Fire Code shall be provided for all structures served by an access easement. 4. Surfacing of easements, pedestrian walkways required within easements, and turnaround dimensions shall meet the requirements of the California Fire Code, the City’s Design Standards, and the parking design standards in the Development Code. 5. Lots taking access by an easement must record a shared maintenance agreement for the driveway. The agreement shall be recorded pr ior to or concurrently with the final map. F. Map Requirements 1. The content and form of a parcel map shall meet all the requirements of Government Code sections 66444 – 66450. 2. The parcel map shall show all easements for public utilities necessary to serve each lot created by the subdivision. 3. The parcel map shall show all easements necessary to provide each lot with access to the public or private street or alley abutting the original parcel. 4. The parcel map shall contain a declaration that : a. Each lot created by the parcel map shall be used solely for residential dwellings; b. That rental of any dwelling unit on a lot created by the parcel map shall not be less than 31 consecutive days, nor shall rental terms allow termination of the tenancy prior to the expiration of at least one 31 -day period occupancy by the same tenant. G. Concurrent Processing With Other Ministerial Permits for Housing Development 1. No development, including grading or vegetation removal, shall commence on either lot, concurrent or subsequent to an urban lot split, unless it is approved with a valid building permit for the construction of a housing development and complies with all the objective development and design standards outlined for two-unit residential development or accessory dwelling units in this Code, or any other adopted objective design standards in effect at the time a complete application is submitted. Page 182 of 386 ORDINANCE NO. PAGE 8 2. A building permit for development on an urban lot split cannot be issued until the parcel map is recorded. 3. The City Engineer shall deny an urban lot split if the building official has made a written finding, based upon a preponderance of the evidence, that the proposed housing development project would have a specific, adverse impact, as d efined and determined in paragraph (2) of subdivision (d) of Section 65589.5 of the Government Code, upon public health and safety or the physical environment and for which there is no feasible method to satisfactorily mitigate or avoid the specific, adverse impact. H. Prohibition of Further Subdivision A lot created by a parcel map under this Section shall not be further subdivided. SECTION 3. Section 16.32.060 is hereby added to Title 16, Chapter 32 of the Arroyo Grande Municipal Code to read as follows: Section 16.32.060 Two-Unit Residential Development A. Purpose and Intent. 1. It is the intent of these regulations to provide opportunities for two units on one legal parcel, consistent with state law and local regulations. In the event of an inconsistency between this Section and Government Code Section 65852.21, Government Code Section 65852.21 shall prevail. Provided that Government Code Sections 65852.21 or 66411.7 are not repealed, qualifying two -unit residential development in the single-family zoning districts shall be located, developed, and used in compliance with this Section. 2. In accordance with Government Code Section 65852.21(a)(2), two -unit residential development shall not be permitted under this Section in any of the following circumstances: a. Parcels located in: i. Wetlands; ii. Either prime farmland or farmland of statewide importance, as defined pursuant to United States Department of Agriculture land inventory and monitoring criteria, as modified for California, and designated on the maps prepared by the Farmland Mapping and Monitoring Program of the Department of Conservation; Page 183 of 386 ORDINANCE NO. PAGE 9 iii. Very high fire severity zones, except if the site has adopted fire hazard mitigation measures pursuant to existing building standards or state fire mitigation measures applicable to the development; iv. A hazardous waste site, unless the site has been cleared by the State for residential use; v. Delineated earthquake fault zones, unless the development complies with applicable seismic protection building code standards; vi. Special flood hazard areas (100-year flood zones), unless the site has been subject to a FEMA Letter of Map Revision issued to the City or the site meets FEMA requirement necessary to meet minimum flood plain management criteria of the National Flood Insurance Program; vii. A regulatory flood way identified in a FEMA map, unless the development has received a no-rise certification; viii. Lands identified for conservation in an adopted natural resource protection plan, habitat for protected species, or under a conservation easement; and ix. A historic district or property designated pursuant to a local ordinance or included on the State Historic Resources Inventory. b. The proposed development would require demolition or alteration of any of the following types of housing: i. Housing that is subject to a recorded covenant, ordinance, or law that restricts rents to moderate, low, or very low incomes; ii. A unit that has been occupied by a tenant within the past three years; and iii. A rent controlled unit. c. The proposed development would result in the demolition of more than 25 percent of the existing exterior structural walls, unless the site has not been occupied by a tenant in the last three years. d. The building official finds that the proposed development would have a specific, adverse impact on public health and safety or the physical environment that cannot be feasibly mitigated or avoided, as defined and determined in paragraph (2) of subdivision (d) of Government Code Section 65589.5. B. Restrictions. Page 184 of 386 ORDINANCE NO. PAGE 10 A qualifying two-unit residential project shall be subject to the following restrictions: 1. The development and use of the dwelling units shall only be valid and permitted based on the terms established in the Section. 2. The dwelling unit(s) shall not be rented for a period of less than thirty -one (31) consecutive days, nor shall rental terms allow termination of the tenancy prior to the expiration of at least one thirty -one (31) day period of occupancy by the same tenants. C. Unit Configurations The new unit in a two-residential unit development may be permitted in the following configurations. For the purpose of this section, “unit” means any dwelling unit, including, but not limited to, two-unit residential development, additional residential unit, primary residential unit, accessory dwelling unit, or junior accessory dwelling unit. 1. One new unit incorporated entirely within an existing residential unit. 2. One new unit incorporated entirely within an existing accessory building, including garages. 3. One new unit attached to and increasing the size of an existi ng residential unit or an existing accessory building. 4. One new unit detached from and located on the same lot as an existing unit. A unit that is attached to another detached accessory building, but not another residential unit, or is attached by a breezew ay or porch, is considered detached. 5. Two newly constructed attached units (duplex) or two detached residential units on a vacant lot. 6. A two-unit residential development in any of the configurations described above may be added to a newly created lot concurrently with an approval for a parcel map for an urban lot split, pursuant to AGMC Section 16.20.180, Parcel Maps for Urban Lot Splits. 7. Up to two accessory dwelling units pursuant to AGMC Section 16.52.150, Accessory Dwelling Units, may be proposed in addit ion to the two units constructed pursuant to this Section. Only one accessory dwelling unit may be added to a lot created through an Urban Lot Split. Page 185 of 386 ORDINANCE NO. PAGE 11 D. Parking. 1. No parking shall be required for dwelling units developed pursuant to this Section. E. Rear and Side Setbacks. 1. No setback shall be applied to existing structures or structures constructed in the same location and to the same dimensions as an existing structure. 2. For projects not meeting the requirements of subsection 1 above, a minimum four-foot setback shall be provided from side and rear lot lines. F. Objective Zoning and Design Standards for Two-Unit Residential Developments. Government Code Section 65852.21 permits the imposition of objective zoning standards and objective design standards. Accordingly, the follow objective standards shall apply to two-unit residential development projects: 1. Massing and Articulation a. Maximum Unit Size: The total gross floor area of the unit(s), excluding garages, shall not exceed the floor-area ratios maximums found in Section 16.32.050 of this Title. These maximums, however, shall not preclude the construction of at least two (2) 1,200 square foot units per lot. b. Building Separation: detached dwelling units shall have a minimum of 10 feet of separation whether the units are on one lot or adjacent lots. c. Height: The maximum height of a unit developed pursuant to this Section shall be 30-feet. d. Rooftop decks shall be permitted in accordance with Section 16.48.180 of this Title. 2. Colors and Materials a. The primary cladding shall be stone, brick, fiber cement, composite wood or stone, wood, stucco, or other cementitious material. Plywood, such as T1-11 siding, is prohibited. Page 186 of 386 ORDINANCE NO. PAGE 12 b. Color schemes shall consist of one primary color and at least one secondary color, at a minimum. The roof color shall not be considered a color for purposes of this standard. 3. Parking and Circulation a. When parking is proposed, the parking areas shall not be located between a structure and a public sidewalk within the front setback, with the exception of permitted driveways. When parking areas are located in the front yard, outside of the front setback, a landscape buffer of at least 10 feet between the sidewalk and parking area shall be provided. b. All parking areas serving more than one unit shall be internally connec ted and shall use shared driveways. 4. Utility and Service Areas a. All new dwelling units must connect to City utilities in accordance with Section 13.12.060 of Title 13. b. Areas for the storage of trash, recycling, and green waste receptacles shall not be visible from the public right of way. c. All mechanical equipment shall be either screened or hidden from view from the public street. Ministerial Approval of Two-Unit Residential Development Projects. 1. The Community Development Director or his/her designee shall m inisterially review and approve a two-unit residential development application and shall not require a public hearing, provided that the submitted application is complete and demonstrates that the two-unit residential development project complies with the requirements contained in this Title 16 and qualifies under Government Code Section 65852.21(a). 2. In addition to obtaining planning approval for the two -unit residential development project, the applicant shall be required to obtain a building permit, and other applicable construction permit requirements prior to the construction of the dwelling units. SECTION 4. The adoption of this Ordinance is not considered a project, therefore is statutorily exempt from the requirements of California Environmental Quality Act (CEQA) pursuant to Division 13 (commencing with Section 21000) of the Public Resources Code. The City Clerk shall file a Notice of Exemption from CEQA review in accordance with CEQA Guidelines. Page 187 of 386 ORDINANCE NO. PAGE 13 SECTION 5. A summary of this Ordinance shall be publis hed in a newspaper published and circulated in the City of Arroyo Grande at least five (5) days prior to the City Council meeting at which the proposed Ordinance is to be adopted. A certified copy of the full text of the proposed Ordinance shall be posted in the office of the City Clerk. Within fifteen (15) days after adoption of the Ordinance, the summary with the names of those City Council members voting for and against the Ordinance shall be published again, and the City Clerk shall post a certified copy of the full text of such adopted Ordinance. SECTION 6. This Ordinance shall take effect and be in full force and effect thir ty (30) days after its passage. SECTION 7. If any section, subsection, sentence, clause, or phrase of this Ordinance is for any reason held to be invalid or unconstitutional by a decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this Ordinance. The City Council hereby declares that it would have passed this Ordinance and each and every section, subsection, sentence, clause, or phrase not declared invalid or unconstitutional without regard to whether any portion of the ordinance would be subsequently declared invalid or unconstitutional. On motion by Council Member ______, seconded by Council Member _______, and by the following roll call vote to wit: AYES: NOES: ABSENT: the foregoing Ordinance was adopted this ____ day of _______, 2022 . Page 188 of 386 ORDINANCE NO. PAGE 14 ___________________________________ CAREN RAY RUSSOM, MAYOR ATTEST: ___________________________________ JESSICA MATSON, CITY CLERK APPROVED AS TO CONTENT: ________________________________ WHITNEY McDONALD, CITY MANAGER APPROVED AS TO FORM: ___________________________________ TIMOTHY J. CARMEL, CITY ATTORNEY Page 189 of 386 4/21/22, 12:17 PM Bill Text - SB-9 Housing development: approvals. https://leginfo.legislature.ca.gov/faces/billTextClient.xhtml?bill_id=202120220SB9 1/8 SHARE THIS:Date Published: 09/17/2021 09:00 PM SB-9 Housing development: approvals.(2021-2022) Senate Bill No. 9 CHAPTER 162 An act to amend Section 66452.6 of, and to add Sections 65852.21 and 66411.7 to, the Government Code, relating to land use. [ Approved by Governor September 16, 2021. Filed with Secretary of State September 16, 2021. ] LEGISLATIVE COUNSEL'S DIGEST SB 9, Atkins. Housing development: approvals. The Planning and Zoning Law provides for the creation of accessory dwelling units by local ordinance, or, if a local agency has not adopted an ordinance, by ministerial approval, in accordance with specified standards and conditions. This bill, among other things, would require a proposed housing development containing no more than 2 residential units within a single-family residential zone to be considered ministerially, without discretionary review or hearing, if the proposed housing development meets certain requirements, including, but not limited to, that the proposed housing development would not require demolition or alteration of housing that is subject to a recorded covenant, ordinance, or law that restricts rents to levels affordable to persons and families of moderate, low, or very low income, that the proposed housing development does not allow for the demolition of more than 25% of the existing exterior structural walls, except as provided, and that the development is not located within a historic district, is not included on the State Historic Resources Inventory, or is not within a site that is legally designated or listed as a city or county landmark or historic property or district. The bill would set forth what a local agency can and cannot require in approving the construction of 2 residential units, including, but not limited to, authorizing a local agency to impose objective zoning standards, objective subdivision standards, and objective design standards, as defined, unless those standards would have the effect of physically precluding the construction of up to 2 units or physically precluding either of the 2 units from being at least 800 square feet in floor area, prohibiting the imposition of setback requirements under certain circumstances, and setting maximum setback requirements under all other circumstances. The Subdivision Map Act vests the authority to regulate and control the design and improvement of subdivisions in the legislative body of a local agency and sets forth procedures governing the local agency’s processing, approval, conditional approval or disapproval, and filing of tentative, final, and parcel maps, and the modification of those maps. Under the Subdivision Map Act, an approved or conditionally approved tentative map expires 24 months after its approval or conditional approval or after any additional period of time as prescribed by local ordinance, not to exceed an additional 12 months, except as provided. Home Bill Information California Law Publications Other Resources My Subscriptions My Favorites ATTACHMENT 2 Page 190 of 386 4/21/22, 12:17 PM Bill Text - SB-9 Housing development: approvals. https://leginfo.legislature.ca.gov/faces/billTextClient.xhtml?bill_id=202120220SB9 2/8 This bill, among other things, would require a local agency to ministerially approve a parcel map for an urban lot split that meets certain requirements, including, but not limited to, that the urban lot split would not require the demolition or alteration of housing that is subject to a recorded covenant, ordinance, or law that restricts rents to levels affordable to persons and families of moderate, low, or very low income, that the parcel is located within a single-family residential zone, and that the parcel is not located within a historic district, is not included on the State Historic Resources Inventory, or is not within a site that is legally designated or listed as a city or county landmark or historic property or district. The bill would set forth what a local agency can and cannot require in approving an urban lot split, including, but not limited to, authorizing a local agency to impose objective zoning standards, objective subdivision standards, and objective design standards, as defined, unless those standards would have the effect of physically precluding the construction of 2 units, as defined, on either of the resulting parcels or physically precluding either of the 2 units from being at least 800 square feet in floor area, prohibiting the imposition of setback requirements under certain circumstances, and setting maximum setback requirements under all other circumstances. The bill would require an applicant to sign an affidavit stating that they intend to occupy one of the housing units as their principal residence for a minimum of 3 years from the date of the approval of the urban lot split, unless the applicant is a community land trust or a qualified nonprofit corporation, as specified. The bill would prohibit a local agency from imposing any additional owner occupancy standards on applicants. By requiring applicants to sign affidavits, thereby expanding the crime of perjury, the bill would impose a state-mandated local program. The bill would also extend the limit on the additional period that may be provided by ordinance, as described above, from 12 months to 24 months and would make other conforming or nonsubstantive changes. The California Environmental Quality Act (CEQA) requires a lead agency, as defined, to prepare, or cause to be prepared, and certify the completion of, an environmental impact report on a project that it proposes to carry out or approve that may have a significant effect on the environment. CEQA does not apply to the approval of ministerial projects. This bill, by establishing the ministerial review processes described above, would thereby exempt the approval of projects subject to those processes from CEQA. The California Coastal Act of 1976 provides for the planning and regulation of development, under a coastal development permit process, within the coastal zone, as defined, that shall be based on various coastal resources planning and management policies set forth in the act. This bill would exempt a local agency from being required to hold public hearings for coastal development permit applications for housing developments and urban lot splits pursuant to the above provisions. By increasing the duties of local agencies with respect to land use regulations, the bill would impose a state- mandated local program. The bill would include findings that changes proposed by this bill address a matter of statewide concern rather than a municipal affair and, therefore, apply to all cities, including charter cities. The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement. This bill would provide that no reimbursement is required by this act for specified reasons. Vote: majority Appropriation: no Fiscal Committee: yes Local Program: yes THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS: SECTION 1. Section 65852.21 is added to the Government Code, to read: 65852.21. (a) A proposed housing development containing no more than two residential units within a single- family residential zone shall be considered ministerially, without discretionary review or a hearing, if the proposed housing development meets all of the following requirements: (1) The parcel subject to the proposed housing development is located within a city, the boundaries of which include some portion of either an urbanized area or urban cluster, as designated by the United States Census Bureau, or, for unincorporated areas, a legal parcel wholly within the boundaries of an urbanized area or urban cluster, as designated by the United States Census Bureau. Page 191 of 386 4/21/22, 12:17 PM Bill Text - SB-9 Housing development: approvals. https://leginfo.legislature.ca.gov/faces/billTextClient.xhtml?bill_id=202120220SB9 3/8 (2) The parcel satisfies the requirements specified in subparagraphs (B) to (K), inclusive, of paragraph (6) of subdivision (a) of Section 65913.4. (3) Notwithstanding any provision of this section or any local law, the proposed housing development would not require demolition or alteration of any of the following types of housing: (A) Housing that is subject to a recorded covenant, ordinance, or law that restricts rents to levels affordable to persons and families of moderate, low, or very low income. (B) Housing that is subject to any form of rent or price control through a public entity’s valid exercise of its police power. (C) Housing that has been occupied by a tenant in the last three years. (4) The parcel subject to the proposed housing development is not a parcel on which an owner of residential real property has exercised the owner’s rights under Chapter 12.75 (commencing with Section 7060) of Division 7 of Title 1 to withdraw accommodations from rent or lease within 15 years before the date that the development proponent submits an application. (5) The proposed housing development does not allow the demolition of more than 25 percent of the existing exterior structural walls, unless the housing development meets at least one of the following conditions: (A) If a local ordinance so allows. (B) The site has not been occupied by a tenant in the last three years. (6) The development is not located within a historic district or property included on the State Historic Resources Inventory, as defined in Section 5020.1 of the Public Resources Code, or within a site that is designated or listed as a city or county landmark or historic property or district pursuant to a city or county ordinance. (b) (1) Notwithstanding any local law and except as provided in paragraph (2), a local agency may impose objective zoning standards, objective subdivision standards, and objective design review standards that do not conflict with this section. (2) (A) The local agency shall not impose objective zoning standards, objective subdivision standards, and objective design standards that would have the effect of physically precluding the construction of up to two units or that would physically preclude either of the two units from being at least 800 square feet in floor area. (B) (i) Notwithstanding subparagraph (A), no setback shall be required for an existing structure or a structure constructed in the same location and to the same dimensions as an existing structure. (ii) Notwithstanding subparagraph (A), in all other circumstances not described in clause (i), a local agency may require a setback of up to four feet from the side and rear lot lines. (c) In addition to any conditions established in accordance with subdivision (b), a local agency may require any of the following conditions when considering an application for two residential units as provided for in this section: (1) Off-street parking of up to one space per unit, except that a local agency shall not impose parking requirements in either of the following instances: (A) The parcel is located within one-half mile walking distance of either a high-quality transit corridor, as defined in subdivision (b) of Section 21155 of the Public Resources Code, or a major transit stop, as defined in Section 21064.3 of the Public Resources Code. (B) There is a car share vehicle located within one block of the parcel. (2) For residential units connected to an onsite wastewater treatment system, a percolation test completed within the last 5 years, or, if the percolation test has been recertified, within the last 10 years. (d) Notwithstanding subdivision (a), a local agency may deny a proposed housing development project if the building official makes a written finding, based upon a preponderance of the evidence, that the proposed housing development project would have a specific, adverse impact, as defined and determined in paragraph (2) of subdivision (d) of Section 65589.5, upon public health and safety or the physical environment and for which there is no feasible method to satisfactorily mitigate or avoid the specific, adverse impact. Page 192 of 386 4/21/22, 12:17 PM Bill Text - SB-9 Housing development: approvals. https://leginfo.legislature.ca.gov/faces/billTextClient.xhtml?bill_id=202120220SB9 4/8 (e) A local agency shall require that a rental of any unit created pursuant to this section be for a term longer than 30 days. (f ) Notwithstanding Section 65852.2 or 65852.22, a local agency shall not be required to permit an accessory dwelling unit or a junior accessory dwelling unit on parcels that use both the authority contained within this section and the authority contained in Section 66411.7. (g) Notwithstanding subparagraph (B) of paragraph (2) of subdivision (b), an application shall not be rejected solely because it proposes adjacent or connected structures provided that the structures meet building code safety standards and are sufficient to allow separate conveyance. (h) Local agencies shall include units constructed pursuant to this section in the annual housing element report as required by subparagraph (I) of paragraph (2) of subdivision (a) of Section 65400. (i) For purposes of this section, all of the following apply: (1) A housing development contains two residential units if the development proposes no more than two new units or if it proposes to add one new unit to one existing unit. (2) The terms “objective zoning standards,” “objective subdivision standards,” and “objective design review standards” mean standards that involve no personal or subjective judgment by a public official and are uniformly verifiable by reference to an external and uniform benchmark or criterion available and knowable by both the development applicant or proponent and the public official prior to submittal. These standards may be embodied in alternative objective land use specifications adopted by a local agency, and may include, but are not limited to, housing overlay zones, specific plans, inclusionary zoning ordinances, and density bonus ordinances. (3) “Local agency” means a city, county, or city and county, whether general law or chartered. (j) A local agency may adopt an ordinance to implement the provisions of this section. An ordinance adopted to implement this section shall not be considered a project under Division 13 (commencing with Section 21000) of the Public Resources Code. (k) Nothing in this section shall be construed to supersede or in any way alter or lessen the effect or application of the California Coastal Act of 1976 (Division 20 (commencing with Section 30000) of the Public Resources Code), except that the local agency shall not be required to hold public hearings for coastal development permit applications for a housing development pursuant to this section. SEC. 2. Section 66411.7 is added to the Government Code, to read: 66411.7. (a) Notwithstanding any other provision of this division and any local law, a local agency shall ministerially approve, as set forth in this section, a parcel map for an urban lot split only if the local agency determines that the parcel map for the urban lot split meets all the following requirements: (1) The parcel map subdivides an existing parcel to create no more than two new parcels of approximately equal lot area provided that one parcel shall not be smaller than 40 percent of the lot area of the original parcel proposed for subdivision. (2) (A) Except as provided in subparagraph (B), both newly created parcels are no smaller than 1,200 square feet. (B) A local agency may by ordinance adopt a smaller minimum lot size subject to ministerial approval under this subdivision. (3) The parcel being subdivided meets all the following requirements: (A) The parcel is located within a single-family residential zone. (B) The parcel subject to the proposed urban lot split is located within a city, the boundaries of which include some portion of either an urbanized area or urban cluster, as designated by the United States Census Bureau, or, for unincorporated areas, a legal parcel wholly within the boundaries of an urbanized area or urban cluster, as designated by the United States Census Bureau. (C) The parcel satisfies the requirements specified in subparagraphs (B) to (K), inclusive, of paragraph (6) of subdivision (a) of Section 65913.4. Page 193 of 386 4/21/22, 12:17 PM Bill Text - SB-9 Housing development: approvals. https://leginfo.legislature.ca.gov/faces/billTextClient.xhtml?bill_id=202120220SB9 5/8 (D) The proposed urban lot split would not require demolition or alteration of any of the following types of housing: (i) Housing that is subject to a recorded covenant, ordinance, or law that restricts rents to levels affordable to persons and families of moderate, low, or very low income. (ii) Housing that is subject to any form of rent or price control through a public entity’s valid exercise of its police power. (iii) A parcel or parcels on which an owner of residential real property has exercised the owner’s rights under Chapter 12.75 (commencing with Section 7060) of Division 7 of Title 1 to withdraw accommodations from rent or lease within 15 years before the date that the development proponent submits an application. (iv) Housing that has been occupied by a tenant in the last three years. (E) The parcel is not located within a historic district or property included on the State Historic Resources Inventory, as defined in Section 5020.1 of the Public Resources Code, or within a site that is designated or listed as a city or county landmark or historic property or district pursuant to a city or county ordinance. (F) The parcel has not been established through prior exercise of an urban lot split as provided for in this section. (G) Neither the owner of the parcel being subdivided nor any person acting in concert with the owner has previously subdivided an adjacent parcel using an urban lot split as provided for in this section. (b) An application for a parcel map for an urban lot split shall be approved in accordance with the following requirements: (1) A local agency shall approve or deny an application for a parcel map for an urban lot split ministerially without discretionary review. (2) A local agency shall approve an urban lot split only if it conforms to all applicable objective requirements of the Subdivision Map Act (Division 2 (commencing with Section 66410)), except as otherwise expressly provided in this section. (3) Notwithstanding Section 66411.1, a local agency shall not impose regulations that require dedications of rights-of-way or the construction of offsite improvements for the parcels being created as a condition of issuing a parcel map for an urban lot split pursuant to this section. (c) (1) Except as provided in paragraph (2), notwithstanding any local law, a local agency may impose objective zoning standards, objective subdivision standards, and objective design review standards applicable to a parcel created by an urban lot split that do not conflict with this section. (2) A local agency shall not impose objective zoning standards, objective subdivision standards, and objective design review standards that would have the effect of physically precluding the construction of two units on either of the resulting parcels or that would result in a unit size of less than 800 square feet. (3) (A) Notwithstanding paragraph (2), no setback shall be required for an existing structure or a structure constructed in the same location and to the same dimensions as an existing structure. (B) Notwithstanding paragraph (2), in all other circumstances not described in subparagraph (A), a local agency may require a setback of up to four feet from the side and rear lot lines. (d) Notwithstanding subdivision (a), a local agency may deny an urban lot split if the building official makes a written finding, based upon a preponderance of the evidence, that the proposed housing development project would have a specific, adverse impact, as defined and determined in paragraph (2) of subdivision (d) of Section 65589.5, upon public health and safety or the physical environment and for which there is no feasible method to satisfactorily mitigate or avoid the specific, adverse impact. (e) In addition to any conditions established in accordance with this section, a local agency may require any of the following conditions when considering an application for a parcel map for an urban lot split: (1) Easements required for the provision of public services and facilities. (2) A requirement that the parcels have access to, provide access to, or adjoin the public right-of-way. Page 194 of 386 4/21/22, 12:17 PM Bill Text - SB-9 Housing development: approvals. https://leginfo.legislature.ca.gov/faces/billTextClient.xhtml?bill_id=202120220SB9 6/8 (3) Off-street parking of up to one space per unit, except that a local agency shall not impose parking requirements in either of the following instances: (A) The parcel is located within one-half mile walking distance of either a high-quality transit corridor as defined in subdivision (b) of Section 21155 of the Public Resources Code, or a major transit stop as defined in Section 21064.3 of the Public Resources Code. (B) There is a car share vehicle located within one block of the parcel. (f ) A local agency shall require that the uses allowed on a lot created by this section be limited to residential uses. (g) (1) A local agency shall require an applicant for an urban lot split to sign an affidavit stating that the applicant intends to occupy one of the housing units as their principal residence for a minimum of three years from the date of the approval of the urban lot split. (2) This subdivision shall not apply to an applicant that is a “community land trust,” as defined in clause (ii) of subparagraph (C) of paragraph (11) of subdivision (a) of Section 402.1 of the Revenue and Taxation Code, or is a “qualified nonprofit corporation” as described in Section 214.15 of the Revenue and Taxation Code. (3) A local agency shall not impose additional owner occupancy standards, other than provided for in this subdivision, on an urban lot split pursuant to this section. (h) A local agency shall require that a rental of any unit created pursuant to this section be for a term longer than 30 days. (i) A local agency shall not require, as a condition for ministerial approval of a parcel map application for the creation of an urban lot split, the correction of nonconforming zoning conditions. (j) (1) Notwithstanding any provision of Section 65852.2, 65852.21, 65852.22, 65915, or this section, a local agency shall not be required to permit more than two units on a parcel created through the exercise of the authority contained within this section. (2) For the purposes of this section, “unit” means any dwelling unit, including, but not limited to, a unit or units created pursuant to Section 65852.21, a primary dwelling, an accessory dwelling unit as defined in Section 65852.2, or a junior accessory dwelling unit as defined in Section 65852.22. (k) Notwithstanding paragraph (3) of subdivision (c), an application shall not be rejected solely because it proposes adjacent or connected structures provided that the structures meet building code safety standards and are sufficient to allow separate conveyance. (l) Local agencies shall include the number of applications for parcel maps for urban lot splits pursuant to this section in the annual housing element report as required by subparagraph (I) of paragraph (2) of subdivision (a) of Section 65400. (m) For purposes of this section, both of the following shall apply: (1) “Objective zoning standards,” “objective subdivision standards,” and “objective design review standards” mean standards that involve no personal or subjective judgment by a public official and are uniformly verifiable by reference to an external and uniform benchmark or criterion available and knowable by both the development applicant or proponent and the public official prior to submittal. These standards may be embodied in alternative objective land use specifications adopted by a local agency, and may include, but are not limited to, housing overlay zones, specific plans, inclusionary zoning ordinances, and density bonus ordinances. (2) “Local agency” means a city, county, or city and county, whether general law or chartered. (n) A local agency may adopt an ordinance to implement the provisions of this section. An ordinance adopted to implement this section shall not be considered a project under Division 13 (commencing with Section 21000) of the Public Resources Code. (o) Nothing in this section shall be construed to supersede or in any way alter or lessen the effect or application of the California Coastal Act of 1976 (Division 20 (commencing with Section 30000) of the Public Resources Code), except that the local agency shall not be required to hold public hearings for coastal development permit applications for urban lot splits pursuant to this section. Page 195 of 386 4/21/22, 12:17 PM Bill Text - SB-9 Housing development: approvals. https://leginfo.legislature.ca.gov/faces/billTextClient.xhtml?bill_id=202120220SB9 7/8 SEC. 3. Section 66452.6 of the Government Code is amended to read: 66452.6. (a) (1) An approved or conditionally approved tentative map shall expire 24 months after its approval or conditional approval, or after any additional period of time as may be prescribed by local ordinance, not to exceed an additional 24 months. However, if the subdivider is required to expend two hundred thirty-six thousand seven hundred ninety dollars ($236,790) or more to construct, improve, or finance the construction or improvement of public improvements outside the property boundaries of the tentative map, excluding improvements of public rights-of-way that abut the boundary of the property to be subdivided and that are reasonably related to the development of that property, each filing of a final map authorized by Section 66456.1 shall extend the expiration of the approved or conditionally approved tentative map by 48 months from the date of its expiration, as provided in this section, or the date of the previously filed final map, whichever is later. The extensions shall not extend the tentative map more than 10 years from its approval or conditional approval. However, a tentative map on property subject to a development agreement authorized by Article 2.5 (commencing with Section 65864) of Chapter 4 of Division 1 may be extended for the period of time provided for in the agreement, but not beyond the duration of the agreement. The number of phased final maps that may be filed shall be determined by the advisory agency at the time of the approval or conditional approval of the tentative map. (2) Commencing January 1, 2012, and each calendar year thereafter, the amount of two hundred thirty-six thousand seven hundred ninety dollars ($236,790) shall be annually increased by operation of law according to the adjustment for inflation set forth in the statewide cost index for class B construction, as determined by the State Allocation Board at its January meeting. The effective date of each annual adjustment shall be March 1. The adjusted amount shall apply to tentative and vesting tentative maps whose applications were received after the effective date of the adjustment. (3) “Public improvements,” as used in this subdivision, include traffic controls, streets, roads, highways, freeways, bridges, overcrossings, street interchanges, flood control or storm drain facilities, sewer facilities, water facilities, and lighting facilities. (b) (1) The period of time specified in subdivision (a), including any extension thereof granted pursuant to subdivision (e), shall not include any period of time during which a development moratorium, imposed after approval of the tentative map, is in existence. However, the length of the moratorium shall not exceed five years. (2) The length of time specified in paragraph (1) shall be extended for up to three years, but in no event beyond January 1, 1992, during the pendency of any lawsuit in which the subdivider asserts, and the local agency that approved or conditionally approved the tentative map denies, the existence or application of a development moratorium to the tentative map. (3) Once a development moratorium is terminated, the map shall be valid for the same period of time as was left to run on the map at the time that the moratorium was imposed. However, if the remaining time is less than 120 days, the map shall be valid for 120 days following the termination of the moratorium. (c) The period of time specified in subdivision (a), including any extension thereof granted pursuant to subdivision (e), shall not include the period of time during which a lawsuit involving the approval or conditional approval of the tentative map is or was pending in a court of competent jurisdiction, if the stay of the time period is approved by the local agency pursuant to this section. After service of the initial petition or complaint in the lawsuit upon the local agency, the subdivider may apply to the local agency for a stay pursuant to the local agency’s adopted procedures. Within 40 days after receiving the application, the local agency shall either stay the time period for up to five years or deny the requested stay. The local agency may, by ordinance, establish procedures for reviewing the requests, including, but not limited to, notice and hearing requirements, appeal procedures, and other administrative requirements. (d) The expiration of the approved or conditionally approved tentative map shall terminate all proceedings and no final map or parcel map of all or any portion of the real property included within the tentative map shall be filed with the legislative body without first processing a new tentative map. Once a timely filing is made, subsequent actions of the local agency, including, but not limited to, processing, approving, and recording, may lawfully occur after the date of expiration of the tentative map. Delivery to the county surveyor or city engineer shall be deemed a timely filing for purposes of this section. (e) Upon application of the subdivider filed before the expiration of the approved or conditionally approved tentative map, the time at which the map expires pursuant to subdivision (a) may be extended by the legislative body or by an advisory agency authorized to approve or conditionally approve tentative maps for a period or Page 196 of 386 4/21/22, 12:17 PM Bill Text - SB-9 Housing development: approvals. https://leginfo.legislature.ca.gov/faces/billTextClient.xhtml?bill_id=202120220SB9 8/8 periods not exceeding a total of six years. The period of extension specified in this subdivision shall be in addition to the period of time provided by subdivision (a). Before the expiration of an approved or conditionally approved tentative map, upon an application by the subdivider to extend that map, the map shall automatically be extended for 60 days or until the application for the extension is approved, conditionally approved, or denied, whichever occurs first. If the advisory agency denies a subdivider’s application for an extension, the subdivider may appeal to the legislative body within 15 days after the advisory agency has denied the extension. (f ) For purposes of this section, a development moratorium includes a water or sewer moratorium, or a water and sewer moratorium, as well as other actions of public agencies that regulate land use, development, or the provision of services to the land, including the public agency with the authority to approve or conditionally approve the tentative map, which thereafter prevents, prohibits, or delays the approval of a final or parcel map. A development moratorium shall also be deemed to exist for purposes of this section for any period of time during which a condition imposed by the city or county could not be satisfied because of either of the following: (1) The condition was one that, by its nature, necessitated action by the city or county, and the city or county either did not take the necessary action or by its own action or inaction was prevented or delayed in taking the necessary action before expiration of the tentative map. (2) The condition necessitates acquisition of real property or any interest in real property from a public agency, other than the city or county that approved or conditionally approved the tentative map, and that other public agency fails or refuses to convey the property interest necessary to satisfy the condition. However, nothing in this subdivision shall be construed to require any public agency to convey any interest in real property owned by it. A development moratorium specified in this paragraph shall be deemed to have been imposed either on the date of approval or conditional approval of the tentative map, if evidence was included in the public record that the public agency that owns or controls the real property or any interest therein may refuse to convey that property or interest, or on the date that the public agency that owns or controls the real property or any interest therein receives an offer by the subdivider to purchase that property or interest for fair market value, whichever is later. A development moratorium specified in this paragraph shall extend the tentative map up to the maximum period as set forth in subdivision (b), but not later than January 1, 1992, so long as the public agency that owns or controls the real property or any interest therein fails or refuses to convey the necessary property interest, regardless of the reason for the failure or refusal, except that the development moratorium shall be deemed to terminate 60 days after the public agency has officially made, and communicated to the subdivider, a written offer or commitment binding on the agency to convey the necessary property interest for a fair market value, paid in a reasonable time and manner. SEC. 4. The Legislature finds and declares that ensuring access to affordable housing is a matter of statewide concern and not a municipal affair as that term is used in Section 5 of Article XI of the California Constitution. Therefore, Sections 1 and 2 of this act adding Sections 65852.21 and 66411.7 to the Government Code and Section 3 of this act amending Section 66452.6 of the Government Code apply to all cities, including charter cities. SEC. 5. No reimbursement is required by this act pursuant to Section 6 of Article XIII B of the California Constitution because a local agency or school district has the authority to levy service charges, fees, or assessments sufficient to pay for the program or level of service mandated by this act or because costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIII B of the California Constitution. Page 197 of 386 Item 11.b. MEMORANDUM TO: City Council FROM: Brian Pedrotti, Community Development Director BY: Andrew Perez, Acting Planning Manager SUBJECT: Study Session for City Council to Provide Direction on a New Ordinance to Implement Senate Bill 9 DATE: March 22, 2022 SUMMARY OF ACTION: The purpose of this item is to give the City Council an opportunity to obtain public comment, discuss the implications of Senate Bill 9 (SB 9), and provide direction regarding an ordinance addressing SB 9. IMPACT ON FINANCIAL AND PERSONNEL RESOURCES: No financial impact is projected with the study session. Staff time from both the Community Development Department and City Attorney will be required to draft the ordinance. RECOMMENDATION: Receive public comment, discuss the implications of SB 9, and provide direction to staff. BACKGROUND: SB 9 was signed by Governor Newsom on September 16, 2021, and became effective January 1, 2022 (Attachment 1). This bill is intended to streamline housing development by requiring a proposed housing development containing no more than two residential units within a single-family residential zone to be considered ministerially, without discretionary review or hearing, if the proposed housing development meets certain requirements. SB 9 also requires a local agency to ministerially approve a parcel map for an urban lot split in a single-family residential zone if it meets certain requirements, including minimum lot size requirements and certain objective standards. Cities may deny an SB 9 project or subdivision that otherwise meets the requirements of SB 9 only if the Building Official determines it will result in a specific, adverse impact on health and safety and there is no feasible way to mitigate the impact. Page 94 of 114 ATTACHMENT 3 Page 198 of 386 Item 11.b. City Council Study Session for City Council to Provide Direction on a New Ordinance to Implement Senate Bill 9 March 22, 2022 Page 2 ANALYSIS OF ISSUES: SB 9 can be broken into two primary components: 1) provisions that allow subdivisions of a single-family zoned lot into two lots (“subdivisions”); and 2) provisions that allow construction of two units on a single-family zoned property (“two-unit projects”). These provisions can be used in concert, so that an applicant could subdivide an existing parcel and build two units on each parcel. Qualifying Properties As proposed in the draft ordinance, SB 9 applies to parcels located in the Single-Family zoning district. The Residential Estate, Residential Hillside, Residential Rural, Residential Suburban, Village Residential zones, and the Planned Development districts all allow single-family residences as an allowed use, however, based on staff’s interpretation and guidance from the City Attorney, the City is only required to allow the provisions of SB 9 on Single Family zoned parcels. Limiting subdivisions and two -unit projects proposed pursuant to SB 9 to only the Single Family zoning district may alleviate impacts associated with unplanned density, including traffic generation, water use, and parking. This interpretation is also being followed by the County of San Luis Obispo. Regardless of zoning, properties are excluded from using SB 9 for two -unit projects and/or subdivisions if they are located in any of the following areas:  Prime farmlands or farmlands of statewide importance, or farmlands protected by a local ordinance  Wetlands, as defined in the United States Fish and Wildlife Service Manual  Within a very high fire hazard severity zone  A hazardous waste site  Within a delineated earthquake fault zone, unless the project is designed to meet building code requirements for building within such zone  Within a special flood hazard area or regulatory floodway, unless certain requirements are met  Lands identified for conservation in an adopted conservation plan or under a conservation easement  Habitat for protected species  Within a historic district or on a site that is designated as historic As indicated, SB 9 does not apply to parcels located “within a historic district or property included on the State Historic Resources Inventory, as defined in Section 5020.1 of the Public Resources Code.” Under Public Resources Code Section 5020.1, “Historic district” means “a definable unified geographic entity that possesses a significant concentration, linkage, or continuity of sites, buildings, structures, or objects united historically o r aesthetically by plan or physical development.” Studies were conducted by the City that confirms the HCO district (D-2.4) possesses a high concentration of historically relevant Page 95 of 114Page 199 of 386 Item 11.b. City Council Study Session for City Council to Provide Direction on a New Ordinance to Implement Senate Bill 9 March 22, 2022 Page 3 sites and structures which supported creation of the Historic Character Overlay (HCO) Therefore, parcels in the overlay district would be ineligible for purposes of SB 9. Prime farmland and farmlands of statewide importance are present within the City, most of which is found near Fair Oaks Avenue between Woodland Drive and Highway 101 and in the areas near Branch Mill Road. None of these sites have a single family zoning designation, so they would be ineligible for SB 9 projects regardless of their status as prime farmland. There are several parcels adjacent to Arroyo Grande and Corbett Canyon Creeks that are within a special flood hazard area and/or a regulatory floodway. A no-rise certification, prepared in accordance with Federal Emergency Management Agency guidelines, allows for development on a site within the floodway, and therefore would make these parcels eligible for SB 9 projects. No very high fire severity zones or hazardous waste sites located within City limits. A property can only be subdivided pursuant to SB 9 once. SB 9 also precludes the same applicant, or someone working in concert with the applicant, from subdividing adjacent properties. SB 9 does not override covenants, conditions, and restrictions (CC&Rs) or other private governing documents for homeowner’s associations (HOA) or common- interest developments, meaning these developments may impose further restrictions on subdivision of parcels and two-unit developments. The City would process an SB 9 application, but because the City is not a party to private governing documents, enforcement of such documents is left to the HOA. Urban Lot Splits Lot splits proposed under the provisions of SB 9 are referred to as Urban Lot Splits (ULS). A parcel map for an ULS shall be approved ministerially, without discretionary review. Parcels developed with affordable housing, or residential units that have been occupied by a tenant within three (3) years of the ULS application may not be split if the application proposes to alter or demolish the residential units. Under the subdivision provisions of SB 9, the City must also allow a single-family zoned property to be subdivided into two roughly proportional lots. To ensure rough proportionality, SB 9 specifies that one lot cannot be less than 40 percent the size of the other. The bill also establishes a minimum lot size of 1,200 square feet for lots created through an urban lot split. Provisions of SB 9 include the following allowances and restrictions on subdivisions:  Cannot require dedication of right-of-way or construction of off-site improvements (such as installation of a sidewalk where there is none);  May require that parcels have access to a public right -of-way;  May require easements for the provision of public services and facilities; and  Must require the applicant to sign an affidavit stating that the applicant intends to live on one of the properties as their primary residence for at least three years after Page 96 of 114Page 200 of 386 Item 11.b. City Council Study Session for City Council to Provide Direction on a New Ordinance to Implement Senate Bill 9 March 22, 2022 Page 4 the date of the subdivision. This requirement does not apply to an urban land trust or qualified non-profit. Units built on lots created through an ULS are reserved for residential uses, may not be permitted for short term rentals, and requires owner occupancy for at least three years from the date of the approval of the ULS. The owner affidavit will be required to include a clause prohibiting short term rentals in these units. Jurisdictions may not require correction of non-conforming zoning conditions, dedication of rights-of-way, or construction of public improvements as a condition of approving an ULS. Two-unit Development A housing development consisting of two residential units within a single-family residential zone shall also be considered ministerially, without discretionary review or hearing if the developed pursuant to the provisions in SB 9. A two-unit development may include the construction of two new units, or the addition of a new unit to a property already developed with a single-family dwelling. A two-unit development would be subject to the following requirements, among others:  The proposed housing development would not require demolition or alteration of housing that is subject to a recorded covenant, ordinance, or law that restricts rents to levels affordable to persons and families of moderate, low, or very low income;  The proposed housing development would not require demolition or alteration of housing that has been occupied by a tenant in the last three years;  The proposed housing development does not allow for the demolition of more than 25% of the existing exterior structural walls of an existing residential unit on the property unless the site has not been occupied by a tenant in the last three years; and  The development is not located within a historic district, is not included on the State Historic Resources Inventory, or is not within a site that is legally designated or listed as a city or county landmark or historic property or district. When an application for a two-unit development is submitted that proposes the demolition of an existing unit, staff will confirm the subject parcel complies with the State mandated requirements listed above. Staff maintains a database of deed-restricted affordable housing units that will be referenced to verify an affordable unit is not proposed for demolition. Furthermore, staff can obtain water billing information to verify whether a unit has been rented in the previous three years. The City may apply objective development standards, but those standards cannot preclude construction of at least two units of 800 square feet in size each. Objective standards are standards that involve no exercise in judgment to apply, such as numeric setback requirements. Page 97 of 114Page 201 of 386 Item 11.b. City Council Study Session for City Council to Provide Direction on a New Ordinance to Implement Senate Bill 9 March 22, 2022 Page 5 SB 9 includes the following mandatory development standards:  Cannot require more than four-foot side and rear setbacks for SB 9 developments;  Cannot require more than one parking space per unit. Cannot require any parking for projects within a half-mile walking distance of high-quality transit or major transit stops, as defined by state law, or if there is a car share vehicle located within on e block;  Must allow construction of attached units; however, attached units must be designed to meet all requirements for selling each unit individually;  No setback can be required for existing structures, and  The City shall not require the correction of non-conforming zoning conditions on a property as a condition of approval of a project or deny a project due to existing non-conformities. A high-quality transit stop is defined as a stop on a fixed route bus service with service intervals no longer than 15 minutes during peak commute hours. The bus routes serving Arroyo Grande all have service intervals exceeding 15 minutes, therefore th e parking exemption described above is not applicable to future SB 9 projects in the City unless bus service changes to meet the state definitions. Beyond the mandatory development standards, the City may incorporate standards for floor-area ratios, height, lot coverage, and building separation, among others. Just as with units that are constructed on parcels created through a ULS, two-unit developments may not be rented for terms of less than 30 days and so cannot be used as vacation rentals. Accessory Dwelling Units ADUs are allowed with SB 9 projects; however, SB 9 states that an agency shall not be required to permit more than two units on a parcel created by an ULS . In addition, SB 9 states that the City is not required to permit an ADU on parcels that propose both a two - unit residential development and an ULS. Staff recommends that ADUs not be allowed on parcels created through an ULS. Staff also recommends restricting ADUs and JADUs to two-unit developments as allowed under SB 9. As a result of this recommendation, for each primary unit allowed, an ADU or JADU would be allowed, but no ADUs would be allowed on new parcels created through a ULS. Objective design standards may apply to ADUs as well as two-unit developments. Actions to Implement SB 9 Adoption of an ordinance is recommended because it allows the City to implement objective design standards that would maintain the character of single -family neighborhoods despite the added density. As previously mentioned, objective development standards can address a numerous aspects of a development. These standards can regulate specific standards such as height and lot coverage, aesthetics through architectural design, and function, such as street access. Staff has developed the following conceptual standards as a starting point for this discussion: Page 98 of 114Page 202 of 386 Item 11.b. City Council Study Session for City Council to Provide Direction on a New Ordinance to Implement Senate Bill 9 March 22, 2022 Page 6  Massing and Articulation o Maximum unit size of 1,200 square feet o Building Separation: detached dwelling units shall have a minimum of 10 feet of separation whether the units are on one lot or adjacent lots. o Height: 16-foot maximum  Colors and Materials o The primary cladding shall be stone, brick, fiber cement, composite wood or stone, or other cementitious material. Plywood, such as T1 -11 siding, is prohibited. o Color schemes shall consist of one primary color and one secondary color, at a minimum. The roof color shall not be considered a color for purposes of this standard.  Parking and Circulation o Parking shall not be located between a structure and a public sidewalk o All parking areas shall be internally connected and shall use shared driveways  Utility and Service Areas o All new dwelling units must connect to City utilities. o Areas for the storage of trash, recycling, and green waste receptacles shall not be visible from the public right of way. o All mechanical equipment shall be either screened or hidden from view from the public street. Beyond adopting an ordinance, other issues must be addressed to successfully implement the provisions of SB 9. Those issues include development of a new application and review process for SB 9 projects, establishing a fee for the review of th ese projects, development of the objective design standards, and monitoring and enforcement of the owner-occupancy requirement. Prior to January 1, 2022, a property owner pursuing a lot split would submit an application for a Tentative Parcel Map at a fee of $9,537. An application for a parcel map may create of up to four lots, and the fee accounts for staff time to process the permit, including public hearings at Planning Commission and City Council. Due to the mandatory ministerial approval of an ULS, staff anticipates the amount of work to process a ULS will be similar to the amount of staff time required to process an application for a Lot Line Adjustment (LLA). Staff work associated with a lot line adjustment is limited to confirming the proposal is consistent with the Subdivision Map Act, confirming the lot size requirements of the underlying zoning district, and making the findings of Arroyo Grande Municipal Code Section 16.20.140. The amount of staff time required to process a LLA is considerably less than what is required for a parcel map and that is reflected in a lesser fee of $3,326. Currently, the Community Development Department does not have an application Page 99 of 114Page 203 of 386 Item 11.b. City Council Study Session for City Council to Provide Direction on a New Ordinance to Implement Senate Bill 9 March 22, 2022 Page 7 specifically for ULS or two-unit development projects. A SB 9 specific application, and associated fee, will need to be created for these projects. SB 9 does not allow the City to require dedication of rights-of-way or the construction of off-site improvements as a condition of approval for an ULS. The City may impose Arroyo Grande Municipal Code Chapter 16.68 requiring the undergrounding of utilities at the time of building permit issuance. Development impact fees, such as those for fire protection, police facilities, park improvements, and traffic signalization, and connection fees for water and wastewater may be collected with building permit fees for new residential units proposed with the provisions of SB 9. Next Steps Feedback obtained during the study session will be used to refine the draft ordinance. Staff recommends that the Architectural Review Committee review the proposed objective design standards applicable to SB 9 projects. The ARC recommended objective design standards would be included in the draft ordinance to be reviewed by the Planning Commission. A recommendation for adoption from the Planning Commission will allow the ordinance to return to Council for introduction and adoption. Environmental Review Both two-unit projects and subdivisions authorized under SB 9 must be processed ministerially, meaning no public hearing and no review under the California Environmental Quality Act (CEQA). The adoption of an ordinance addressing SB 9 is likewise not subject to CEQA. ALTERNATIVES: The following alternatives are provided for the Council’s consideration: 1. Discuss the draft ordinance, received public comment, and provide direction to staff 2. Provide other direction to staff. ADVANTAGES: A study session providing direction to staff will result in an efficient development of the ordinance to implement SB 9. DISADVANTAGES: None identified. ENVIRONMENTAL REVIEW: The State law includes a provision that explicitly states that an ordinance to implement SB 9 (California Government Code Section 65852.21) shall not be considered a project under CEQA and, therefore, is not subject to environmental review. Page 100 of 114Page 204 of 386 Item 11.b. City Council Study Session for City Council to Provide Direction on a New Ordinance to Implement Senate Bill 9 March 22, 2022 Page 8 PUBLIC NOTIFICATION AND COMMENTS: The Agenda was posted at City Hall and on the City’s website in accordance with Government Code Section 54954.2. Attachments: 1. Draft Ordinance Implementing SB 9 Page 101 of 114Page 205 of 386 Sample Draft Ordinance – For Discussion Purposes Section 16.32.060 Two-Unit Residential Development A.Purpose and Intent. 1.It is the intent of these regulations to provide opportunities for two units on one legal parcel, consistent with state law and local regulations. In the event of an inconsistency between this Section and Government Code Section 65852.21, Government Code Section 65852.21 shall prevail. Provided that Government Code Sections 65852.21 or 66411.7 are not repealed, qualifying two-unit residential development in the Single Family zoning district shall be located, developed, and used in compliance with this Section. 2.In accordance with Government Code Section 65852.21(a)(2), two-unit residential development shall not be permitted under this Section in any of the following circumstances: a.Parcels located in: i.Wetlands; ii.Either prime farmland or farmland of statewide importance, as defined pursuant to United States Department of Agriculture land inventory and monitoring criteria, as modified for California, and designated on the maps prepared by the Farmland Mapping and Monitoring Program of the Department of Conservation; iii.Very high fire severity zones, except if the site has adopted fire hazard mitigation measures pursuant to existing building standards or state fire mitigation measures applicable to the development; iv.A hazardous waste site, unless the site has been cleared by the State for residential use; v.Delineated earthquake fault zones, unless the development complies with applicable seismic protection building code standards; vi.Special flood hazard areas (100-year flood zones), unless the site has been subject to a FEMA Letter of Map Revision issued to the City or the site meets FEMA requirement necessary to meet minimum flood plain management criteria of the National Flood Insurance Program; vii.A regulatory flood way identified in a FEMA map, unless the development has received a no-rise certification; viii.Lands identified for conservation in an adopted natural resource protection plan, habitat for protected species, or under a conservation easement; and ix.A historic district or property designated pursuant to a local ordinance or included on the State Historic Resources Inventory. ATTACHMENT 1 Page 102 of 114Page 206 of 386 b. The proposed development would require demolition or alteration of any of the following types of housing: i. Housing that is subject to a recorded covenant, ordinance, or law that restricts rents to moderate, low, or very low incomes; ii. A unit that has been occupied by a tenant within the past three years; and iii. A rent controlled unit. c. The proposed development would result in the demolition of more than 25 percent of the existing exterior structural walls, unless the site has not been occupied by a tenant in the last three years. d. The building official finds that the proposed development would have a specific, adverse impact on public health and safety or the physical environment that cannot be feasibly mitigated or avoided, as defined and determined in paragraph (2) of subdivision (d) of Government Code Section 65589.5. B. Restrictions. A qualifying two-unit residential project shall be subject to the following restrictions: 1. The development and use of the dwelling units shall only be valid and permitted based on the terms established in the Section. 2. The dwelling unit(s) shall not be rented for a period of less than thirty-one (31) consecutive days, nor shall rental terms allow termination of the tenancy prior to the expiration of at least one thirty-one (31) day period of occupancy by the same tenants. Item #1 – SB 9 mandates that the ordinance allow at least two units on all eligible parcels. Some discretion is permitted as to how those two units can be achieved. At a minimum, the ordinance must allow either a duplex, or one new unit constructed in addition to an existing unit. C. Unit Configurations The new unit in a two-residential unit development may be permitted in the following configurations, provided that no more than two attached residential units are in any one building on a lot. For the purpose of this section, “unit” means any dwelling unit, including, but not limited to, two-unit residential development, additional residential unit, primary residential unit, accessory dwelling unit, or junior accessory dwelling unit. 1. One new unit incorporated entirely within an existing residential unit. 2. One new unit incorporated entirely within an existing accessory building, including garages. 3. One new unit attached to and increasing the size of an existing residential unit or an existing accessory building. Page 103 of 114Page 207 of 386 4. One new unit detached from and located on the same lot as an existing unit. A unit that is attached to another detached accessory building, but not another residential unit, or is attached by a breezeway or porch, is considered detached. 5. Two newly constructed attached units (duplex) or two detached residential units on a vacant lot. 6. A two-unit residential development in any of the configurations described above may be added to a newly created lot concurrently with an approval for a parcel map for an urban lot split, pursuant to AGMC Section 16.20.180, Parcel Maps for Urban Lot Splits; however, the provisions of that Chapter shall not be used to permit more than two units on a lot. 7. Up to two accessory dwelling units pursuant to AGMC Section 16.52.150, Accessory Dwelling Units, may be proposed in addition to the two units constructed pursuant to this Section on a lot that is not the result of an urban lot split. D. Parking. 1. Pursuant to Government Code Section 65852.21(c), one off-street parking space is required per dwelling unit, unless the parcel is located within one-half mile of a high- quality transit corridor as defined in subdivision (b) of Section 21155 of the Public Resources Code or a major transit stop as defined in Section 21064.3 of the Public Resources Code or there is a car share vehicle located within one block of the parcel. 2. The location of the required parking space(s) shall not obstruct the required parking of each Dwelling Unit. 3. The parking facilities shall comply with Section 16.56.070. 4. Required parking spaces for separate dwelling units shall not be provided in a tandem configuration. 5. The required parking spaces must be covered. E. Rear and Side Setbacks. 1. No setback shall be applied to existing structures or structures constructed in the same location and to the same dimensions as an existing structure. 2. For projects not meeting the requirements of subsection 1 above, a minimum four-foot setback shall be provided from side and rear lot lines. Item #2 – A city may impose objective design standards. Design Standards must allow at least two units of 800 square feet each. Objective design standards can regulate development aspects such as height, lot coverage, floor-area ratio, etc. F. Objective Zoning and Design Standards for Two-Unit Residential Developments. Government Code Section 65852.21 permits the imposition of objective zoning standards and objective design standards, provided the standards do not physically preclude the construction Page 104 of 114Page 208 of 386 of up to two units of at least 800 square feet. Accordingly, the follow objective standards shall apply to two-unit residential development projects Page 105 of 114Page 209 of 386 1. Massing and Articulation a. Maximum size of a unit is 1,200 square feet. b. Building Separation: detached dwelling units shall have a minimum of 10 feet of separation whether the units are on one lot or adjacent lots. c. Height: Units are subject to a 16-foot height limit 2. Colors and Materials a. The primary cladding shall be stone, brick, fiber cement, composite wood or stone, or other cementitious material. Plywood, such as T1-11 siding, is prohibited. b. Color schemes shall consist of one primary color and one secondary color, at a minimum. The roof color shall not be considered a color for purposes of this standard 3. Parking and Circulation a. Parking shall not be located between a structure and a public sidewalk b. All parking areas shall be internally connected and shall use shared driveways 4. Utility and Service Areas a. All new dwelling units must connect to City utilities. b. Areas for the storage of trash, recycling, and green waste receptacles shall not be visible from the public right of way. c. All mechanical equipment shall be either screened or hidden from view from the public street Ministerial Approval of Two-Unit Residential Development Projects. 1. The Community Development Director or his/her designee shall ministerially review and approve a two-unit residential development application and shall not require a public hearing, provided that the submitted application is complete and demonstrates that the two-unit residential development project complies with the requirements contained in this Title 16 and qualifies under Government Code Section 65852.21(a). 2. In addition to obtaining planning approval for the two-unit residential development project, the applicant shall be required to obtain a building permit, and other applicable construction permit requirements prior to the construction of the dwelling units. Page 106 of 114Page 210 of 386 Sample Draft Ordinance – For Discussion Purposes Section 16.20.180 Parcel Maps for Urban Lot Spits A. Purpose and Scope 1. This Section implements Government Code section 66411.7 to provide an owner of property in the Single Family zoning district an additional method to subdivide the parcel for the purpose of housing development. Item #1 – SB 9 applies to parcels zoned for “single-family residential.” Determination about whether the proposed ordinances for two-unit developments should apply to all single family zones, or specifically the Single Family zoning district. 2. Urban lot split means the subdivision of an existing legal parcel in the Single Family zoning district to create no more than two new parcels. B. Application and Approval 1. A parcel map for an urban lot split may not be approved except in conjunction with a concurrently submitted application for building permits for two-unit residential development pursuant to Section 16.32.060. Development on the resulting parcels is limited to the residential development approved in the concurrently submitted building permit applications. 2. A parcel map for an urban lot split must be prepared by a registered civil engineer or licensed land surveyor in accordance with Government Code sections 66444 – 66450 and this Section, and submitted for approval to the City Engineer. A fee in an amount established by City Council resolution must be paid concurrently with the submission of the parcel map. 3. The City Engineer is the approval authority for parcel maps under this Section. The City Engineer shall approve a parcel map for an urban lot split if the Engineer determines that it meets all of the requirements of this Section. C. The following supplemental information is required to be submitted with a parcel map to establish compliance with the construction plans and all provisions of this Code and applicable State law: 1. A map of appropriate size and to scale showing all of the following: a. Total area (in acreage and square feet) of each proposed lot. b. Location and dimensions of existing and proposed property lines; c. Zoning District; d. The location and use of all existing and proposed structures; e. All required zoning setbacks for the existing and proposed lots; f. The location of all existing water, sewer, electricity, storm drain, or gas service lines, pipes, systems, or easements; Page 107 of 114Page 211 of 386 g. The location of all proposed new water, sewer, storm drain, lines, pipes, or systems; h. The location of any proposed easements for access or public utilities to serve a lot created by the subdivision; i. The location of any existing trees larger than four inches in diameter measured four feet six inches above the base and any such trees proposed for removal; j. Any area of the parcel that has a slope of 25% or greater by way of contours at 5- foot intervals; l. Name and dimensions, including right-of-way and improved area, of public and private streets or public alleys adjoining the parcel; m. Curb, gutter, sidewalk, parkway, and street trees: type, location, and dimensions; n. Location of existing or proposed driveway dimensions, materials, and slope (including cross slope); and o. Location of existing or proposed pedestrian pathway access to the public right of way. 2. A statement of the owner, signed under penalty of perjury under the laws of California, that: a. The proposed urban lot split would not require or authorize demolition or alteration of any of the following types of housing: (i) Housing that is subject to a recorded covenant, ordinance, or law that restricts rents to levels affordable to persons and families of moderate, low, or very low income. (ii) Housing that is subject to any form of rent or price control through a public entity’s valid exercise of its police power. (iii) A parcel or parcels on which an owner of residential real property has exercised the owner’s rights under Section 12.75 (commencing with Section 7060) of Division 7 of Title 1 of the Government Code to withdraw accommodations from rent or lease within 15 years before the date that the development proponent submits an application. (iv) Housing that has been occupied by a tenant in the last three years. b. The parcel has not been established through prior exercise of an urban lot split under this Section; c. Neither the owner of the parcel being subdivided nor any person acting in concert with the owner has previously subdivided an adjacent parcel under the provisions of this Section. d. The owner intends to occupy one of the housing units located on a lot created by the parcel map as their principal residence for a minimum of three years from the date of the recording of the parcel map. Page 108 of 114Page 212 of 386 e. Rental terms of any unit created by the subdivision shall not be less than 31 consecutive days, nor shall rental terms allow termination of the tenancy prior to the expiration of at least one thirty-one (31) day period of occupancy by the same tenant. f. The uses allowed on a lot created by the parcel map shall be limited to residential uses. D. Design and Improvement Requirements Item #2 – A city may impose objective design standards for lots created by this ordinance. Design Standards must allow at least two units of 800 square feet each. Objective design standards can regulate development aspects such as lot access, size, easements, etc. 1. A parcel map may subdivide an existing legal parcel to create no more than two parcels of approximately equal lot area. One parcel shall not be smaller than 40 percent of the lot area of the original parcel proposed for subdivision and neither parcel shall be smaller than 1,200 square feet. The following areas are excluded from the calculation of lot area for the purposes of this subdivision: 2. Each parcel must be served by a separate water service meter and a separate sewer connection. 3. Each parcel shall either drain a developed drainage easement or in accordance with the City’s Standard Specification and Engineering Standards. 4. Rights-of-way as required for access along all natural watercourses as necessary for flood control, maintenance, and improvement shall be dedicated. 5. The parcel must satisfy the requirements of Government Code section 66411.7(a). 6. A lot line shall not bisect or be located within 4 feet of any of the following: a. A dwelling that has been occupied by a tenant at any time during the three years before the date of the parcel map; b. A structure designated as a historic structure or a candidate structure under any City ordinance or included on the State Historic Resources Inventory; c. A dwelling that is subject to a recorded covenant, ordinance, or law that restricts rents to levels affordable to persons and families of moderate, low, or very low income. d. Existing easements if the resulting lot would create a developable area that would interfere with the use of the easement for its intended purpose. 7. The location and orientation of new lot lines shall meet the following standards: a. Front lot lines shall conform to the minimum public street frontage requirements of the Development Code; a flag lot, or a lot with a narrow projecting strip of land extending along a street, is not permitted. b. Each parcel shall have approximately equal lot width and lot depth, consistent with the minimum lot sizes described in subsection D, above. Lot depth shall be Page 109 of 114Page 213 of 386 measured at the midpoint of the front lot line. Lot width shall be measured by a line connecting two points on opposite interior lot lines that will result in a line parallel to the front lot line. c. New lot lines must be straight lines, unless there is a conflict with existing improvements or the natural environment in which case the line may be not be straight but shall follow the appropriate course. d. Lot lines facing a street shall generally be parallel to the street. Unless the minimum public street frontage is provided, the lot line dividing the two parcels must be parallel to and not less than 50 feet from an existing front lot line, or outside the front half of the existing lot, whichever is greater. e. Interior lot lines not facing the street shall be at right angles perpendicular to the street on straight streets, or radial to the street on curved streets. f. Lot lines shall be located within appropriate physical locations such as the top of creek banks, at appropriate topographical changes (top or bottom of slopes etc.) or at locations which clearly separate existing and proposed land uses. g. Lot lines shall be contiguous with existing zoning boundaries. h. The placement of lot lines shall not result in an accessory building or accessory use on a lot without a main building or primary use on the same lot, as defined in the Development Code. i. Lot lines shall not render an existing structure as nonconforming in any respect (e.g., setbacks, Floor Area Ratio, parking), nor increase the nonconformity of an existing nonconforming structure. E. Access Standards 1. Each lot shall front upon or have access to a public street, or be served by an access easement serving no more than two lots. Access shall be provided in compliance with these standards: a. Vehicle access easements serving a maximum of two units shall meet the following standards: i. Easement width shall be a minimum of 10 feet and a maximum of 16 feet, unless a wider driveway is required by the California Fire Code due to distance of the structure from the easement, or as needed to meet the driveway and parking standards in the City’s standards. ii. The minimum length for a vehicle access easement is 20 feet. No maximum easement length shall be set. If easement length is more than 75 feet, a vehicle turnaround shall be provided. iii. No residential structure shall be closer than 3 feet to the easement. b. Vehicle access easements serving three to four units shall meet the following standards: i. Easement width shall be a minimum of 20 feet. Page 110 of 114Page 214 of 386 ii. The minimum length for a vehicle access easement is 20 feet. No maximum easement length shall be set. If easement length is more than 75 feet, a vehicle turnaround shall be provided. iii. No residential structure shall be closer than 5 feet to the easement. c. Where a lot does not abut a public street, and where no automobile parking spaces are required or proposed for the residential development, a vehicle access easement is not required. An easement providing pedestrian access to a street from each lot shall be provided meeting the following standards: i. Easement width shall be a minimum of five feet; ii. Pedestrian access easements shall not exceed 200 feet in length. 2. Vehicle access easements shall not be located closer than 25 feet to an intersection. 3. Access and provisions for fire protection consistent with the California Fire Code shall be provided for all structures served by an access easement. 4. Surfacing of easements, pedestrian walkways required within easements, and turnaround dimensions shall meet the requirements of the California Fire Code, the City’s Design Standards, and the parking design standards in the Development Code. F. Map Requirements 1. The content and form of a parcel map shall meet all the requirements of Government Code sections 66444 – 66450. 2. The parcel map shall show all easements for public utilities necessary to serve each lot created by the subdivision. 3. The parcel map shall show all easements necessary to provide each lot with access to the public or private street or alley abutting the original parcel. 4. The parcel map shall contain a declaration that: a. Each lot created by the parcel map shall be used solely for residential dwellings; b. That no more than two residential dwelling units may be permitted on each lot. As used in this subsection residential dwelling unit includes a unit created pursuant to Government Code section 65852.21, a primary dwelling unit, an accessory dwelling unit as defined in Government Code section 65852.2, or a junior accessory dwelling unit as defined in Government Code section 65852.22. c. That rental of any dwelling unit on a lot created by the parcel map shall not be less than 31 consecutive days, nor shall rental terms allow termination of the tenancy prior to the expiration of at least one 31-day period occupancy by the same tenant. G. Concurrent Processing With Other Ministerial Permits for Housing Development 1. No development, including grading or vegetation removal, shall commence on either lot, concurrent or subsequent to an urban lot split, unless it is approved with a valid building permit for the construction of a housing development and complies with all the objective development and design standards outlined for two-unit residential development or Page 111 of 114Page 215 of 386 accessory dwelling units in this Code, or any other adopted objective design standards in effect at the time a complete application is submitted. 2. A building permit for development on an urban lot split cannot be issued until the parcel map is recorded. 3. The City Engineer shall deny an urban lot split if the building official has made a written finding, based upon a preponderance of the evidence, that the proposed housing development project would have a specific, adverse impact, as defined and determined in paragraph (2) of subdivision (d) of Section 65589.5 of the Government Code, upon public health and safety or the physical environment and for which there is no feasible method to satisfactorily mitigate or avoid the specific, adverse impact. H. Prohibition of Further Subdivision A lot created by a parcel map under this Section shall not be further subdivided. Page 112 of 114Page 216 of 386 5 None. 11. NEW BUSINESS The Council heard Item 11.b. next. Mayor Ray Russom called for a brief break at 8:55 p.m. The Council reconvened at 9:03 p.m. and returned to Item 11.a. 11.a Study Session Regarding Short Term Rentals (Vacation Rentals and Homestays) and Potential Revisions to the City’s Short Term Rental Ordinance City Attorney Carmel commented on the Fair Political Practices Commission's (FPPC) advice regarding the conflicts of interest for Mayor Ray Russom, Mayor Pro Tem George, Council Member Storton, and Council Member Barneich. City Clerk Matson explained the process for randomly drawing straws to determine which two of the conflicted Council members may hear the item. Mayor Ray Russom, Mayor Pro Tem George, and Council Members Barneich and Storton drew straws. Mayor Ray Russom and Council Member Storton drew the short straws and remained in the meeting to hear the item. Mayor Pro Tem George and Council Member Barneich left the meeting. Community Development Director Pedrotti introduced the item and Assistant Planner Holub provided a presentation and responded to questions from Council. Mayor Ray Russom invited public comment. Speaking from the public were John Keen, and Jim Guthrie. City Clerk Matson read into the record written comments received from Krista Jeffries. No further public comments were received. Council discussion ensued regarding staff recommendations. At 10:52 p.m., Mayor Ray Russom stated that pursuant to Council policy, the Council must vote unanimously to continue the meeting past 11:00 p.m. Mayor Ray Russom moved to continue the meeting to 11:10 p.m. Council Member Paulding seconded the motion, and the motion passed unanimously by voice vote. Council directed staff to include a Short Term Rental buffer for homestays and vacation rentals; apply a cap of 120 vacation rentals; send the performance standards and parking standards sections of the Ordinance to Planning Commission for review; do not place approvals on a cancelled Planning Commission agenda; charge for mailing labels to notice neighbors; revoke permits if no Transient Occupancy Tax (TOT) is generated within a 12 month period; research a full service company to administer host compliance; add a section to the permit application where applicants can state they will provide contact information to neighbors each year; and create a process to notify the public regarding the number of current permits. Council also requested that staff bring back a discussion regarding administrative fines for violation of the Ordinance. No action was taken on this item. 11.b Study Session for City Council to Provide Direction on a New Ordinance to Implement Senate Bill 9 Page 217 of 386 6 Acting Planning Manager Perez presented the staff report. Acting Planning Manager Perez, Community Development Director Pedrotti and City Manager McDonald responded to questions from Council. Mayor Ray Russom invited public comment. Speaking from the public was Rachel Mann, John Keen, and Jim Guthrie. City Clerk Matson read into the record written comments from Krista Jeffries. No further public comments were received. City Attorney Carmel and City Manager McDonald responded to questions from the public. Council expressed support for the proposed draft Ordinance and staff recommendations including the prohibition of short term rentals and requiring undergrounding of utilities. Council directed staff to provide clarification in Section D of the draft Ordinance regarding parking, to leave the height restriction for further discussion, and requested the addition of a disclaimer regarding abiding by individual CCRs. No action was taken on this item. Mayor Ray Russom called for a brief break at 8:55 p.m. The Council reconvened at 9:03 p.m. and returned to Item 11.a. 12. CITY COUNCIL REPORTS The City Council provided brief reports from the following committee, commission, board, or other subcommittee meetings that they attended as the City’s appointed representative. 12.a MAYOR RAY RUSSOM: 1. California Joint Powers Insurance Authority (CJPIA) 2. South San Luis Obispo County Sanitation District (SSLOCSD) 3. Tourism Business Improvement District Advisory Board 4. Other 12.b MAYOR PRO TEM GEORGE: 1. County Water Resources Advisory Committee (WRAC) 2. Visit SLO CAL Advisory Board 3. Other 12.c COUNCIL MEMBER BARNEICH: 1. Audit Committee 2. Homeless Services Oversight Council (HSOC) 3. Zone 3 Water Advisory Board 4. Other 12.d COUNCIL MEMBER STORTON: 1. Brisco/Halcyon Interchange Subcommittee Page 218 of 386 MEMORANDUM TO: Planning Commission FROM: Brian Pedrotti, Community Development Director BY: Andrew Perez, Acting Planning Manager SUBJECT: Consideration Of Development Code Amendment 21-002 To Implement Senate Bill 9; Location – Citywide DATE: May 3, 2022 SUMMARY OF ACTION: A recommendation to City Council to adopt an ordinance to implement Senate Bill 9 (SB 9). IMPACT ON FINANCIAL AND PERSONNEL RESOURCES: No financial impact is projected. RECOMMENDATION: It is recommended that the Planning Commission adopt a Resolution recommending the City Council adopt amendments to the Municipal Code to implement the provisions of Senate Bill 9 (Attachment 1). BACKGROUND: SB 9 was signed by Governor Newsom on September 16, 2021, and became effective January 1, 2022 (Attachment 2). This bill is intended to streamline housing development by requiring a proposed housing development containing no more than two residential units within a single-family residential zone to be considered ministerially, without discretionary review or hearing, if the proposed housing development meets certain requirements. SB 9 also requires a local agency to ministerially approve a parcel map fo r an urban lot split in a single-family residential zone if it meets certain requirements, including minimum lot size requirements and certain objective standards. Cities may deny an SB 9 project or subdivision that otherwise meets the requirements of SB 9 only if the Building Official determines it will result in a specific, adverse impact on health and safety and there is no feasible way to mitigate the impact. A study session at City Council was held on March 22, 2022 to provide a forum for community comments and discuss implications of SB 9 to aid staff in refining the draft Page 16 of 86 ATTACHMENT 4 Page 219 of 386 Planning Commission Consideration Of Development Code Amendment 21 -002 To Implement Senate Bill 9; Location – Citywide May 3, 2022 Page 2 ordinance. Council expressed concerns with the effects of the unplanned density associated with potential SB 9 development. To mitigate the concerns, Council directed staff to present the draft objective design standards to the Architectural Review Committee (ARC) for review and recommendation to the Planning Commission. ANALYSIS OF ISSUES: SB 9 can be broken into two primary components: 1) provisions that allow subdivisions of a single-family zoned lot into two lots (“subdivisions”); and 2) provisions that allow construction of two units on a single-family zoned property (“two-unit projects”). These provisions can be used in concert, so that an applicant could subdivide an existing parcel and build two units on each parcel. Qualifying Properties Parcels located in any zoning district allowing single family residential uses are eligible for SB 9 development. This includes the Residential Estate, Residential Hillside, Residential Rural, Residential Suburban, Village Residential, Single-Family zones, and the Planned Development districts, which all allow single-family residences as an allowed use. In the draft ordinance presented to Council at the study session, only parcels in the Single Family zone would have been eligible for development under the SB 9 ordinance. This was based on staff’s interpretation and guidance from the City Attorney. Subsequent to the study session, the California Department of Housing and Community Development released a SB 9 Fact Sheet with information about the legislation (Attachment 3). Based on the information in that document, the zoning districts eligible for SB 9 development has been broadened to include all zones that permit single family residential as an allowed use. Regardless of zoning, properties are excluded from using SB 9 for two -unit projects and/or subdivisions if they are located in any of the following areas:  Prime farmlands or farmlands of statewide importance, or farmlands protected by a local ordinance  Wetlands, as defined in the United States Fish and Wildlife Service Manual  A hazardous waste site  Lands identified for conservation in an adopted conservation plan or under a conservation easement  Habitat for protected species  Within a historic district or on a site that is designated as historic As indicated above, SB 9 does not apply to parcels located “within a historic district or property included on the State Historic Resources Inventory, as defined in Section 5020.1 of the Public Resources Code.” Under Public Resources Code Section 5020.1, “Historic district” means “a definable unified geographic entity that possesses a significant concentration, linkage, or continuity of sites, buildings, structures, or objects united historically or aesthetically by plan or physical development.” Studies were conducted by Page 17 of 86Page 220 of 386 Planning Commission Consideration Of Development Code Amendment 21 -002 To Implement Senate Bill 9; Location – Citywide May 3, 2022 Page 3 the City that confirm the Historic Character Overlay District (D-2.4) possesses a high concentration of historically relevant sites and structures which supported creation of th e district. Therefore, parcels in the overlay district would be ineligible for purposes of SB 9. Prime farmland and farmlands of statewide importance are present within the City, most of which is found near Fair Oaks Avenue between Woodland Drive and Highway 101 and in the areas near Branch Mill Road. None of these sites have a single family zoning designation, so they would be ineligible for SB 9 projects regardless of their status as prime farmland. Three other areas are identified as conditionally excluded from SB 9. These areas include:  Within a very high fire hazard severity zone  Within a delineated earthquake fault zone, unless the project is designed to meet building code requirements for building within such zone  Within a special flood hazard area or regulatory floodway, unless certain requirements are met SB 9 development is allowed in the areas listed above, but only when applicable building code and measures for hazard mitigation are met. For example, a property in the flood zone is required to provide a no-rise certification, prepared in accordance with Federal Emergency Management Agency guidelines, to indicate that the construction of a building will not increase flood hazards downstream. Certain building techniques and materials measures are required for SB 9 developments on properties in an earthquake or high fire zone. A property can only be subdivided pursuant to SB 9 once. SB 9 also precludes the same applicant, or someone working in concert with the applicant, from subdividing adjac ent properties. SB 9 does not override covenants, conditions, and restrictions (CC&Rs) or other private governing documents for homeowner’s associations (HOA) or common - interest developments, meaning these developments may impose further restrictions on subdivision of parcels and two-unit developments. The City would process an SB 9 application, but because the City is not a party to private governing documents, enforcement of such documents is left to the HOA. The application for SB 9 projects will include a disclaimer for the applicant to acknowledge notification of their HOA when applicable. Urban Lot Splits Lot splits proposed under the provisions of SB 9 are referred to as Urban Lot Splits (ULS). The legislation requires that a parcel map for an ULS shall be approved ministerially, without discretionary review. Parcels developed with affordable housing, or residential units that have been occupied by a tenant within three (3) years of the ULS application may not be split if the application proposes to alter or demolish the residential units. Page 18 of 86Page 221 of 386 Planning Commission Consideration Of Development Code Amendment 21 -002 To Implement Senate Bill 9; Location – Citywide May 3, 2022 Page 4 Under the subdivision provisions of SB 9, the City must also allow a single -family zoned property to be subdivided into two roughly proportional lots. To ensure rough proportionality, SB 9 specifies that one lot cannot be less than 40 percent the size of the other. The bill also establishes a minimum lot size of 1,200 square feet for lots created through an urban lot split. Provisions of SB 9 include the following allowances and restrictions on subdivisions:  Cannot require dedication of right-of-way or construction of off-site improvements (such as installation of a sidewalk where there is none);  May require that parcels have access to a public right -of-way;  May require easements for the provision of public services and facilities; and  Must require the applicant to sign an affidavit stating that the applicant intends to live on one of the properties as their primary residence for at least three years after the date of the subdivision. This requirement does not apply to an urban land trust or qualified non-profit. Units built on lots created through an ULS are reserved for residential uses, may not be permitted for short term rentals, and requires owner occupancy for at least three years from the date of the approval of the ULS. An owner affidavit will be required with the application for a ULS and in addition to the owner occupancy statement, must include a clause stating that a unit located on a lot created through an ULS will not be used as a short term rental. Two-unit Development A housing development consisting of two residential units within a single-family residential zone shall also be considered ministerially, without discretionary review or hearing if developed pursuant to the provisions in SB 9. A two-unit development may include the construction of two new units, or the addition of a new unit to a property already developed with a single-family dwelling. A two-unit development would be subject to the following requirements, among others:  The proposed housing development would not require demolition or alteration of housing that is subject to a recorded covenant, ordinance, or law that restricts rents to levels affordable to persons and families of moderate, low, or very low income;  The proposed housing development would not require demolition or alteration of housing that has been occupied by a tenant in the last three years;  The proposed housing development does not allow for the demolition of more than 25% of the existing exterior structural walls of an e xisting residential unit on the property unless the site has not been occupied by a tenant in the last three years; and  The development is not located within a historic district, is not included on the State Historic Resources Inventory, or is not within a site that is legally designated or listed as a city or county landmark or historic property or district. Page 19 of 86Page 222 of 386 Planning Commission Consideration Of Development Code Amendment 21 -002 To Implement Senate Bill 9; Location – Citywide May 3, 2022 Page 5 When an application for a two-unit development is submitted that proposes the demolition of an existing unit, staff will confirm the subject parcel complies with the State mandated requirements listed above. Staff maintains a database of deed -restricted affordable housing units that will be referenced to verify an affordable unit is not proposed for demolition. Furthermore, staff can obtain water billing information to verify whether a unit has been rented in the previous three years. Objective Design Standards The City may adopt objective development standards for SB 9 projects, but those standards cannot preclude construction of at least two units of 800 square feet in size each. Objective standards are those standards that involve no exercise in judgement to apply, such as numeric setback requirements. These design standards can regulate specific standards such as unit size, height limits; aesthetics; and function. SB 9 already includes the following mandatory development standards:  Cannot require more than four-foot side and rear setbacks for SB 9 developments;  Cannot require more than one parking space per unit. Cannot require any parking for projects within a half-mile walking distance of high-quality transit or major transit stops, as defined by state law, or if there is a car share vehicle located within one block;  Must allow construction of attached units; however, attached units must be designed to meet all requirements for selling each unit individually;  No setback can be required for existing structures, and  The City shall not require the correction of non-conforming zoning conditions on a property as a condition of approval of a project or deny a project due to existing non-conformities. A high-quality transit stop is defined as a stop on a fixed route bus service with service intervals no longer than 15 minutes during peak commute hours. Every bus route serving Arroyo Grande has service intervals exceeding 15 minutes, therefore the parking exemption described above is not available for SB 9 projects in the City unless bus service changes to meet the state definitions. Beyond the mandatory development standards, the City may incorporate standards for floor-area ratios, height, lot coverage, and building separation, among others. Just as with units that are constructed on parcels created through a ULS, two-unit developments may not be short term rentals. On April 18, 2022, the ARC reviewed the proposed objective design standards (Attachment 4). As a result of that meeting, standards for maximum unit size, height, rooftop decks, color, and materials were revised. T he standards in the following bulleted lists below are included in the draft ordinance: Page 20 of 86Page 223 of 386 Planning Commission Consideration Of Development Code Amendment 21 -002 To Implement Senate Bill 9; Location – Citywide May 3, 2022 Page 6  Massing and Articulation o Maximum Unit Size: The total gross floor area of the unit(s), excluding garages, shall not exceed the floor-area ratios maximums found in Section 16.32.050. o Building Separation: detached dwelling units shall have a minimum of 10 feet of separation whether the units are on one lot or adjacent lots. o Height: 16-foot maximum for portions of structures located within the setback of the underlying zoning district. The remainder of the structure located outside of the setbacks of the underlying zoning district shall conform to the height requirements of that district. o Rooftop Decks shall be permitted in accordance with Section 16.48.180. The ARC found the maximum unit size to be too restrictive for the larger single family lots, and was also concerned that the previously proposed maximum unit size of 1,200 square feet would discourage SB 9 development. Using the floor-area ratios already established in the Municipal Code was determined to be a solution that is both equ itable and maintains neighborhood character. The floor-area ratios found in AGMC 16.32.050 are summarized in Table 1. Table 1: Floor-Area Ratio Maximums Lot Size Floor Area Ratio Maximum 0-4,000 sq. ft. 0.35 4,001-7,199 sq. ft. 0.40 7,200-11,999 sq. ft. 0.50 12,000-39,999 sq. ft. 0.45 Greater than 40,000 sq. ft. At the study session, Council was undecided about whether the 16 -foot height limit would be overly restrictive. To provide some flexibility, staff revised the height limitation so that the 16-foot height limit would only apply to the portion of structures built within the setbacks of the underlying zone. Portions of the structure that comply with the setbacks of the underlying district would be subject to the height limit of that district. The building separation standard is proposed to maximize privacy and outdoor space for inhabitants of SB 9 units. Initially, staff proposed a prohibition of rooftop decks, but the ARC felt that rooftop decks provide an opportunity for outdoor living space.  Colors and Materials o The primary cladding shall be stone, brick, fiber cement, composite wood or stone, wood, stucco, or other cementitious material. Plywood, such as T1-11 siding, is prohibited. o Color schemes shall consist of one primary color and at least one secondary color, at a minimum. The roof color shall not be considered a color for purposes of this standard. Page 21 of 86Page 224 of 386 Planning Commission Consideration Of Development Code Amendment 21 -002 To Implement Senate Bill 9; Location – Citywide May 3, 2022 Page 7 Standards for colors and materials are intended to ensure a minimal amount of aesthetic quality. The cladding materials are commonly found throughout the city, and prevent the use of less durable materials that would deteriorate over time and become unsightly. Multiple colors are required to ensure more visual appeal than a simple, single color.  Parking and Circulation o Parking areas shall not be located between a structure and a public sidewalk within the front setback, with the exception of permitted driveways. When parking areas are located in the front yard, outside of the front setback, a landscape buffer of at least 10 feet between the sidewalk and parking area shall be provided. o All parking areas serving more than one unit shall be internally connected and shall use shared driveways. As many as four units can be developed on a single-family lot that was planned to accommodate just a single unit. One parking space is required per unit under SB 9, potentially creating the need for as many as four uncovered parking spaces on the original parcel. Arroyo Grande Municipal Code Section 16.56.030 already prohibits parking in a front setback, but makes an exception for parking spaces on a lawfully established driveway. The requirement to provide a landscape buffer is intended to prevent parking from dominating the most publicly visible area of a property. Shared driveways ar e a way to minimize the amount of paving on a property for both aesthetic and stormwater management purposes.  Utility and Service Areas o All new dwelling units must connect to City utilities in accordance with AGMC 13.12.060 o Areas for the storage of trash, recycling, and green waste receptacles shall not be visible from the public right of way. o All mechanical equipment shall be either screened or hidden from view from the public street. Requiring connection to City utilities (water and sewer) ensures that units developed under SB 9 will remain livable without relying on private water wells or septic systems, which have a finite lifespan. The standards applicable to service areas are intended to maintain neighborhood character through aesthetics. Accessory Dwelling Units ADUs are allowed with SB 9 projects; however, SB 9 states that an agency shall not be required to permit more than two units on a parcel created by an ULS. In addition, SB 9 states that the City is not required to permit an ADU on parcels that propose both a two- unit residential development and an ULS. Staff recommends that ADUs not be allowed Page 22 of 86Page 225 of 386 Planning Commission Consideration Of Development Code Amendment 21 -002 To Implement Senate Bill 9; Location – Citywide May 3, 2022 Page 8 on parcels created through an ULS. Staff also recommends restricting ADUs and JADUs to two-unit developments as allowed under SB 9. As a result of this recommendation, for each primary unit allowed, an ADU or JADU would be allowed, but no ADUs would be allowed on new parcels created through a ULS. Objective design standards may apply to ADUs as well as two-unit developments. SB 9 does not allow the City to require dedication of rights-of-way or the construction of off-site improvements as a condition of approval for an ULS. The City may impose Arroyo Grande Municipal Code Chapter 16.68 requiring the undergrounding of utilities at the time of building permit issuance. Development impact fees, such as those for fire protection, police facilities, park improvements, and traffic signalization, and connection fees for water and wastewater may be collected with building permit fees for new residential units proposed with the provisions of SB 9. Next Steps A recommendation for adoption to the Planning Commission will allow the ordinance to return to Council for introduction and adoption. ALTERNATIVES: The following alternatives are provided for the Planning Commission’s consideration: 1. Adopt the Resolution, as prepared, recommending that the City Council adopt the ordinance to implement SB 9; or 2. Adopt the Resolution, as revised by the Planning Commission, recommending that the City Council adopt the ordinance to implement SB 9; or 3. Provide other direction to staff. ADVANTAGES: A recommendation to City Council to adopt an ordinance to implement SB 9 will allow the City to regulate development pursuant to the State legislation. The objective design standards contained in the draft ordinance will ensure orderly development of SB 9 projects that are consistent with the character of existing single-family neighborhoods. DISADVANTAGES: None identified. ENVIRONMENTAL REVIEW: In compliance with the California Environmental Quality Act (CEQA), the Community Development Department has determined that the adoption of an ordinance to implement Senate Bill 9 creates a ministerial review process and therefore is exempt from the requirements of CEQA pursuant to Division 13 (commencing with Section 21000) of the Public Resources Code. PUBLIC NOTIFICATION AND COMMENTS: Page 23 of 86Page 226 of 386 Planning Commission Consideration Of Development Code Amendment 21 -002 To Implement Senate Bill 9; Location – Citywide May 3, 2022 Page 9 A notice of public hearing was published in the Tribune and posted at City Hall and on the City’s website on April 22, 2022. The meeting Agenda was posted at City Hall and on the City’s website in accordance with Government Code Section 54954.2. Attachments: 1. Resolution 2. Senate Bill 9 3. HCD SB 9 Fact Sheet 4. Draft Minutes from the April 18, 2022 Regular Meeting 5. Draft Ordinance – Urban Lot Splits 6. Draft Ordinance – Two-Unit Residential Development Page 24 of 86Page 227 of 386 ATTACHMENT 1 RESOLUTION NO. A RESOLUTION OF THE PLANNING COMMISSION OF THE CITY OF ARROYO GRANDE RECOMMENDING THE CITY COUNCIL ADOPT AN ORDINANCE APPROVING DEVELOPMENT CODE AMENDMENT NO. 21-002 TO IMPLEMENT SENATE BILL 9; LOCATION- CITYWIDE WHEREAS, on September 16, 2021, the Governor signed into law Senate Bill (SB) 9 that, among other things, added Government Code Sections 65852.21 and 66411.7 and amended Government Code Section 66452.6 allowing additional housing units on properties within residential zoning districts; and WHEREAS, SB 9 went into effect on January 1, 2022; and WHEREAS, SB 9 allows a local jurisdiction to adopt an ordinance that provides ministerial approval of 1) no more than two housing units on a lot within a single-family residential zoning district; and 2) urban lot splits; and WHEREAS, SB 9 allows a local jurisdiction to adopt objective design, development, and subdivision standards for up to two housing units and urban lot splits; and WHEREAS, the proposed amendments to the Arroyo Grande Municipal Code (AGMC) implement the requirements of SB 9 and add local regulations that within the scope of the State law; and WHEREAS, the City of Arroyo Grande has duly initiated amendments to AGMC; and WHEREAS, the Planning Commission of the City of Arroyo Grande, after giving notices thereof as required by law, held a public hearing on May 3, 2022 concerning this code amendment and carefully considered all pertinent testimony and the staff report offered in the case as presented; and NOW, THEREFORE, BE IT RESOLVED that the Planning Commission of the City of Arroyo Grande hereby recommends the City Council adopt Ordinances approving Development Code Amendment 21-002 amending Title 16 of the Arroyo Grande Municipal Code as attached hereto as Exhibit “A” and incorporated herein by this reference. On motion by Commissioner ________, seconded by Commissioner _______, and by the following roll call vote, to wit: AYES: NOES: ABSENT: Page 25 of 86Page 228 of 386 RESOLUTION NO. PAGE 2 the foregoing Resolution was adopted this 3rd day of May, 2022. Page 26 of 86Page 229 of 386 RESOLUTION NO. PAGE 3 _______________________________ GLENN MARTIN CHAIR ATTEST: _______________________________ PATRICK HOLUB SECRETARY TO THE COMMISSION AS TO CONTENT: _______________________________ BRIAN PEDROTTI COMMUNITY DEVELOPMENT DIRECTOR Page 27 of 86Page 230 of 386 RESOLUTION NO. PAGE 4 EXHIBIT ‘A’ WHEREAS, on September 16, 2021, the Governor signed into law Senate Bill (SB) 9 that, among other things, added Government Code Sections 65852.21 and 66411.7 and amended Government Code Section 66452.6 allowing additional housing units on properties within residential zoning districts; and WHEREAS, SB 9 went into effect on January 1, 2022; and WHEREAS, SB 9 allows a local jurisdiction to adopt an ordinance that provides ministerial approval of 1) no more than two housing units on a lot within a single-family residential zoning district; and 2) urban lot splits; and WHEREAS, SB 9 allows a local jurisdiction to adopt objective design, development, and subdivision standards for up to two housing units and urban lot splits; and WHEREAS, the proposed amendments to the Arroyo Grande Municipal Code (AGMC) implement the requirements of SB 9 and add local regulations that within the scope of the State law; and WHEREAS, the City of Arroyo Grande has duly initiated amendments to AGMC; and WHEREAS , the Planning Commission of the City of Arroyo Grande, after giving notices thereof as required by law, held a public hearing on May 3, 2022 concerning this code amendment and carefully considered all pertinent testimony and the staff report offered in the case as presented; and WHEREAS, on May 3, 2022, the Planning Commission of the Arroyo Grande recommended to the City Council adding Sections 16.20.180 and 16.32.060 to the Arroyo Grande Municipal Code; and WHEREAS, the City Council of the City of Arroyo Grande has, after giving notice thereof as required by law, held a public hearing on __________, 2022, concerning the addition of AGMC Sections 16.20.180 and 16.32.060; and WHEREAS, the City Council of the City of Arroyo Grande, at its regularly scheduled public meeting on __________, 2022 introduced this Ordinance to add Section 16.20.180 to Title 16, Chapter 20 and 16.32.060 to Title 16, Chapter 32 of the Arroyo Grande Municipal Code; and WHEREAS, the City Council has carefully considered all pertinent testimony and the staff report, its attachments and all supporting materials referenced therein or offered in the matter as presented at the public hearing. Page 28 of 86Page 231 of 386 RESOLUTION NO. PAGE 5 NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF ARROYO GRANDE DOES ORDAIN AS FOLLOWS: SECTION 1. The above recitals and findings are true and correct and are incorporated herein by this reference. SECTION 2. Section 16.20.180 is hereby added to Title 16, Chapter 20 of the Arroyo Grande Municipal Code to read as follows: Section 16.20.180 Parcel Maps for Urban Lot Spits A. Purpose and Scope 1. This Section implements Government Code section 66411.7 to provide an owner of property in the Single Family zoning district an additional method to subdivide the parcel for the purpose of housing development. 2. Urban lot split means the subdivision of an existing legal parcel in the Single Family zoning district to create no more than two new parcels. B. Application and Approval 1. A parcel map for an urban lot split may not be approved except in conjunction with a concurrently submitted application for building permits for two-unit residential development pursuant to Section 16.32.060. Development on the resulting parcels is limited to the residential development approved in the concurrently submitted building permit applications. 2. A parcel map for an urban lot split must be prepared by a registered civil engineer or licensed land surveyor in accordance with Government Code sections 66444 – 66450 and this Section, and submitted for approval to the City Engineer. A fee in an amount established by City Council resolution must be paid concurrently with the submission of the parcel map. 3. The City Engineer is the approval authority for parcel maps under this Section. The City Engineer shall approve a parcel map for an urban lot split if the Engineer determines that it meets all of the requirements of this Section. C. The following supplemental information is required to be submitted with a parcel map to establish compliance with the construction plans and all provisions of this Code and applicable State law: 1. A map of appropriate size and to scale showing all of the following: a. Total area (in acreage and square feet) of each proposed lot. b. Location and dimensions of existing and proposed property lines; Page 29 of 86Page 232 of 386 RESOLUTION NO. PAGE 6 c. Zoning District; d. The location and use of all existing and proposed structures; e. All required zoning setbacks for the existing and proposed lots; f. The location of all existing water, sewer, electricity, storm drain, or gas service lines, pipes, systems, or easements; g. The location of all proposed new water, sewer, storm drain, lines, pipes, or systems; h. The location of any proposed easements for access or public utilities to serve a lot created by the subdivision; i. The location of any existing trees larger than four inches in diameter measured four feet six inches above the base and any such trees proposed for removal; j. Any area of the parcel that has a slope of 25% or greater by way of contours at 5-foot intervals; l. Name and dimensions, including right-of-way and improved area, of public and private streets or public alleys adjoining the parcel; m. Curb, gutter, sidewalk, parkway, and street trees: type, location, and dimensions; n. Location of existing or proposed driveway dimensions, materials, and slope (including cross slope); and o. Location of existing or proposed pedestrian pathway access to the public right of way. 2. A statement of the owner, signed under penalty of perjury under the laws of California, that: a. The proposed urban lot split would not require or authorize demolition or alteration of any of the following types of housing: (i) Housing that is subject to a recorded covenant, ordinance, or law that restricts rents to levels affordable to persons and families of moderate, low, or very low income. (ii) Housing that is subject to any form of rent or price control through a public entity’s valid exercise of its police power. (iii) A parcel or parcels on which an owner of residential real property has exercised the owner’s rights under Section 12.75 (commencing with Section 7060) of Division 7 of Title 1 of the Government Code to withdraw Page 30 of 86Page 233 of 386 RESOLUTION NO. PAGE 7 accommodations from rent or lease within 15 years before the date that the development proponent submits an application. (iv) Housing that has been occupied by a tenant in the last three years. b. The parcel has not been established through prior exercise of an urban lot split under this Section; c. Neither the owner of the parcel being subdivided nor any person acting in concert with the owner has previously subdivided an adjacent parcel under the provisions of this Section. d. The owner intends to occupy one of the housing units located on a lot created by the parcel map as their principal residence for a minimum of three years from the date of the recording of the parcel map. e. Rental terms of any unit created by the subdivision shall not be less than 31 consecutive days, nor shall rental terms allow termination of the tenancy prior to the expiration of at least one thirty-one (31) day period of occupancy by the same tenant. f. The uses allowed on a lot created by the parcel map shall be limited to residential uses. D. Design and Improvement Requirements 1. A parcel map may subdivide an existing legal parcel to create no more than two parcels of approximately equal lot area. One parcel shall not be smaller than 40 percent of the lot area of the original parcel proposed for subdivision and neither parcel shall be smaller than 1,200 square feet.: 2. Each parcel must be served by a separate water service meter and a separate sewer connection. 3. Each parcel shall either drain a developed drainage easement or in accordance with the City’s Standard Specification and Engineering Standards. 4. Rights-of-way as required for access along all natural watercourses as necessary for flood control, maintenance, and improvement shall be dedicated. 5. The parcel must satisfy the requirements of Government Code section 66411.7(a). 6. A lot line shall not bisect or be located within 4 feet of any of the following: a. A dwelling that has been occupied by a tenant at any time during the three years before the date of the parcel map; Page 31 of 86Page 234 of 386 RESOLUTION NO. PAGE 8 b. A structure designated as a historic structure or a candidate structure under any City ordinance or included on the State Historic Resources Inventory; c. A dwelling that is subject to a recorded covenant, ordinance, or law that restricts rents to levels affordable to persons and families of moderate, low, or very low income. d. Existing easements if the resulting lot would create a developable area that would interfere with the use of the easement for its intended purpose. 7. The location and orientation of new lot lines shall meet the following standards: a. Front lot lines shall conform to the minimum public street frontage requirements of the Development Code; a flag lot, or a lot with a narrow projecting strip of land extending along a street, is not permitted. b. Each parcel shall have approximately equal lot width and lot depth, consistent with the minimum lot sizes described in subsection D, above. Lot depth shall be measured at the midpoint of the front lot line. Lot width shall be measured by a line connecting two points on opposite interior lot lines that will result in a line parallel to the front lot line. c. New lot lines must be straight lines, unless there is a conflict with existing improvements or the natural environment in which case the line may be not be straight but shall follow the appropriate course. d. Lot lines facing a street shall generally be parallel to the street. Unless the minimum public street frontage is provided, the lot line dividing the two parcels must be parallel to and not less than 50 feet from an existing front lot line, or outside the front half of the existing lot, whichever is greater. e. Interior lot lines not facing the street shall be at right angles perpendicular to the street on straight streets, or radial to the street on curved streets. f. Lot lines shall be located within appropriate physical locations such as the top of creek banks, at appropriate topographical changes (top or bottom of slopes etc.) or at locations which clearly separate existing and proposed land uses. g. Lot lines shall be contiguous with existing zoning boundaries. h. The placement of lot lines shall not result in an accessory building or accessory use on a lot without a main building or primary use on the same lot, as defined in the Development Code. Page 32 of 86Page 235 of 386 RESOLUTION NO. PAGE 9 i. Lot lines shall not render an existing structure as nonconforming in any respect (e.g., setbacks, Floor Area Ratio, parking), nor increase the nonconformity of an existing nonconforming structure. E. Access Standards 1. Each lot shall front upon or have access to a public street, or be served by an access easement serving no more than two lots. Access shall be provided in compliance with these standards: a. Vehicle access easements serving a maximum of two units shall meet the following standards: i. Easement width shall be a minimum of 10 feet and a maximum of 16 feet, unless a wider driveway is required by the California Fire Code due to distance of the structure from the easement, or as needed to meet the driveway and parking standards in the City’s standards. ii. The minimum length for a vehicle access easement is 20 feet. No maximum easement length shall be set. If easement length is more than 75 feet, a vehicle turnaround shall be provided. iii. No residential structure shall be closer than 3 feet to the easement. b. Vehicle access easements serving three to four units shall meet the following standards: i. Easement width shall be a minimum of 20 feet. ii. The minimum length for a vehicle access easement is 20 feet. No maximum easement length shall be set. If easement length is more than 75 feet, a vehicle turnaround shall be provided. iii. No residential structure shall be closer than 5 feet to the easement. c. Where a lot does not abut a public street, and where no automobile parking spaces are required or proposed for the residential development, a vehicle access easement is not required. An easement providing pedestrian access to a street from each lot shall be provided meeting the following standards: i. Easement width shall be a minimum of five feet; ii. Pedestrian access easements shall not exceed 200 feet in length. 2. Vehicle access easements shall not be located closer than 25 feet to an intersection. Page 33 of 86Page 236 of 386 RESOLUTION NO. PAGE 10 3. Access and provisions for fire protection consistent with the California Fire Code shall be provided for all structures served by an access easement. 4. Surfacing of easements, pedestrian walkways required within easements, and turnaround dimensions shall meet the requirements of the California Fire Code, the City’s Design Standards, and the parking design standards in the Development Code. 5. Lots taking access by an easement must record a shared maintenance agreement for the driveway. The agreement shall be recorded prior to or concurrently with the final map. F. Map Requirements 1. The content and form of a parcel map shall meet all the requirements of Government Code sections 66444 – 66450. 2. The parcel map shall show all easements for public utilities necessary to serve each lot created by the subdivision. 3. The parcel map shall show all easements necessary to provide each lot with access to the public or private street or alley abutting the original parcel. 4. The parcel map shall contain a declaration that: a. Each lot created by the parcel map shall be used solely for residential dwellings; b. That no more than two residential dwelling units may be permitted on each lot. As used in this subsection residential dwelling unit includes a unit created pursuant to Government Code section 65852.21, a primary dwelling unit, an accessory dwelling unit as defined in Government Code section 65852.2, or a junior accessory dwelling unit as defined in Government Code section 65852.22. c. That rental of any dwelling unit on a lot created by the parcel map shall not be less than 31 consecutive days, nor shall rental terms allow termination of the tenancy prior to the expiration of at least one 31-day period occupancy by the same tenant. G. Concurrent Processing With Other Ministerial Permits for Housing Development 1. No development, including grading or vegetation removal, shall commence on either lot, concurrent or subsequent to an urban lot split, unless it is approved with a valid building permit for the construction of a housing development and complies with all the objective development and design standards outlined for two-unit residential development or accessory dwelling units in this Code, or any Page 34 of 86Page 237 of 386 RESOLUTION NO. PAGE 11 other adopted objective design standards in effect at the time a complete application is submitted. 2. A building permit for development on an urban lot split cannot be issued until the parcel map is recorded. 3. The City Engineer shall deny an urban lot split if the building official has made a written finding, based upon a preponderance of the evidence, that the proposed housing development project would have a specific, adverse impact, as defined and determined in paragraph (2) of subdivision (d) of Section 65589.5 of the Government Code, upon public health and safety or the physical environment and for which there is no feasible method to satisfactorily mitigate or avoid the specific, adverse impact. H. Prohibition of Further Subdivision A lot created by a parcel map under this Section shall not be further subdivided. SECTION 3. Section 16.32.060 is hereby added to Title 16, Chapter 32 of the Arroyo Grande Municipal Code to read as follows: Sample Draft Ordinance – For Discussion Purposes Section 16.32.060 Two-Unit Residential Development A. Purpose and Intent. 1. It is the intent of these regulations to provide opportunities for two units on one legal parcel, consistent with state law and local regulations. In the event of an inconsistency between this Section and Government Code Section 65852.21, Government Code Section 65852.21 shall prevail. Provided that Government Code Sections 65852.21 or 66411.7 are not repealed, qualifying two-unit residential development in the single family zoning districts shall be located, developed, and used in compliance with this Section. 2. In accordance with Government Code Section 65852.21(a)(2), two-unit residential development shall not be permitted under this Section in any of the following circumstances: a. Parcels located in: i. Wetlands; ii. Either prime farmland or farmland of statewide importance, as defined pursuant to United States Department of Agriculture land inventory and monitoring criteria, as modified for California, and designated on the maps Page 35 of 86Page 238 of 386 RESOLUTION NO. PAGE 12 prepared by the Farmland Mapping and Monitoring Program of the Department of Conservation; iii. Very high fire severity zones, except if the site has adopted fire hazard mitigation measures pursuant to existing building standards or state fire mitigation measures applicable to the development; iv. A hazardous waste site, unless the site has been cleared by the State for residential use; v. Delineated earthquake fault zones, unless the development complies with applicable seismic protection building code standards; vi. Special flood hazard areas (100-year flood zones), unless the site has been subject to a FEMA Letter of Map Revision issued to the City or the site meets FEMA requirement necessary to meet minimum flood plain management criteria of the National Flood Insurance Program; vii. A regulatory flood way identified in a FEMA map, unless the development has received a no-rise certification; viii. Lands identified for conservation in an adopted natural resource protection plan, habitat for protected species, or under a conservation easement; and ix. A historic district or property designated pursuant to a local ordinance or included on the State Historic Resources Inventory. b. The proposed development would require demolition or alteration of any of the following types of housing: i. Housing that is subject to a recorded covenant, ordinance, or law that restricts rents to moderate, low, or very low incomes; ii. A unit that has been occupied by a tenant within the past three years; and iii. A rent controlled unit. c. The proposed development would result in the demolition of more than 25 percent of the existing exterior structural walls, unless the site has not been occupied by a tenant in the last three years. d. The building official finds that the proposed development would have a specific, adverse impact on public health and safety or the physical environment that cannot be Page 36 of 86Page 239 of 386 RESOLUTION NO. PAGE 13 feasibly mitigated or avoided, as defined and determined in paragraph (2) of subdivision (d) of Government Code Section 65589.5. B. Restrictions. A qualifying two-unit residential project shall be subject to the following restrictions: 1. The development and use of the dwelling units shall only be valid and permitted based on the terms established in the Section. 2. The dwelling unit(s) shall not be rented for a period of less than thirty-one (31) consecutive days, nor shall rental terms allow termination of the tenancy prior to the expiration of at least one thirty-one (31) day period of occupancy by the same tenants. C. Unit Configurations The new unit in a two-residential unit development may be permitted in the following configurations, provided that no more than two attached residential units are in any one building on a lot. For the purpose of this section, “unit” means any dwelling unit, including, but not limited to, two-unit residential development, additional residential unit, primary residential unit, accessory dwelling unit, or junior accessory dwelling unit. 1. One new unit incorporated entirely within an existing residential unit. 2. One new unit incorporated entirely within an existing accessory building, including garages. 3. One new unit attached to and increasing the size of an existing residential unit or an existing accessory building. 4. One new unit detached from and located on the same lot as an existing unit. A unit that is attached to another detached accessory building, but not another residential unit, or is attached by a breezeway or porch, is considered detached. 5. Two newly constructed attached units (duplex) or two detached residential units on a vacant lot. 6. A two-unit residential development in any of the configurations described above may be added to a newly created lot concurrently with an approval for a parcel map for an urban lot split, pursuant to AGMC Section 16.20.180, Parcel Maps for Urban Lot Splits; however, the provisions of that Chapter shall not be used to permit more than two units on a lot. Page 37 of 86Page 240 of 386 RESOLUTION NO. PAGE 14 7. Up to two accessory dwelling units pursuant to AGMC Section 16.52.150, Accessory Dwelling Units, may be proposed in addition to the two units constructed pursuant to this Section on a lot that is not the result of an urban lot split. D. Parking. 1. Pursuant to Government Code Section 65852.21(c), one off-street parking space is required per dwelling unit, unless the parcel is located within one-half mile of a high-quality transit corridor as defined in subdivision (b) of Section 21155 of the Public Resources Code or a major transit stop as defined in Section 21064.3 of the Public Resources Code or there is a car share vehicle located within one block of the parcel. 2. The location of the required parking space(s) shall not obstruct the required parking of each Dwelling Unit. 3. The parking facilities shall comply with Section 16.56.070. 4. Required parking spaces for separate dwelling units shall not be provided in a tandem configuration. 5. The required parking spaces must be covered. E. Rear and Side Setbacks. 1. No setback shall be applied to existing structures or structures constructed in the same location and to the same dimensions as an existing structure. 2. For projects not meeting the requirements of subsection 1 above, a minimum four-foot setback shall be provided from side and rear lot lines. F. Objective Zoning and Design Standards for Two-Unit Residential Developments. Government Code Section 65852.21 permits the imposition of objective zoning standards and objective design standards, provided the standards do not physically preclude the construction of up to two units of at least 800 square feet. Accordingly, the follow objective standards shall apply to two-unit residential development projects: 1. Massing and Articulation a. Maximum Unit Size: The total gross floor area of the unit(s), excluding garages, shall not exceed the floor-area ratios maximums found in Section 16.32.050 of this Title. Page 38 of 86Page 241 of 386 RESOLUTION NO. PAGE 15 b. Building Separation: detached dwelling units shall have a minimum of 10 feet of separation whether the units are on one lot or adjacent lots. c. Height: The maximum height shall be 16-feet for any structure, or portions thereof, located within the setback of the underlying zoning district. Structures, or any portion thereof, located outside of the setbacks of the underlying zoning district shall conform to the height requirements of that district. d. Rooftop decks shall be permitted in accordance with Section 16.48.180 of this Title. 2. Colors and Materials a. The primary cladding shall be stone, brick, fiber cement, composite wood or stone, wood, stucco, or other cementitious material. Plywood, such as T1-11 siding, is prohibited. b. Color schemes shall consist of one primary color and at least one secondary color, at a minimum. The roof color shall not be considered a color for purposes of this standard. 3. Parking and Circulation a. Parking shall not be located between a structure and a public sidewalk within the front setback, with the exception of permitted driveways. When parking areas are located in the front yard, outside of the front setback, a landscape buffer of at least 10 feet between the sidewalk and parking area shall be provided. b. All parking areas serving more than one unit shall be internally connected and shall use shared driveways. 4. Utility and Service Areas a. All new dwelling units must connect to City utilities in accordance with Section 13.12.060 of Title 13. b. Areas for the storage of trash, recycling, and green waste receptacles shall not be visible from the public right of way. c. All mechanical equipment shall be either screened or hidden from view from the public street. Ministerial Approval of Two-Unit Residential Development Projects. Page 39 of 86Page 242 of 386 RESOLUTION NO. PAGE 16 1. The Community Development Director or his/her designee shall ministerially review and approve a two-unit residential development application and shall not require a public hearing, provided that the submitted application is complete and demonstrates that the two-unit residential development project complies with the requirements contained in this Title 16 and qualifies under Government Code Section 65852.21(a). 2. In addition to obtaining planning approval for the two-unit residential development project, the applicant shall be required to obtain a building permit, and other applicable construction permit requirements prior to the construction of the dwelling units. SECTION 4. The adoption of this Ordinance is not considered a project, therefore is statutorily exempt from the requirements of California Environmental Quality Act (CEQA) pursuant to Division 13 (commencing with Section 21000) of the Public Resources Code. The City Clerk shall file a Notice of Exemption from CEQA review in accordance with CEQA Guidelines. SECTION 5. A summary of this Ordinance shall be published in a newspaper published and circulated in the City of Arroyo Grande at least five (5) days prior to the City Council meeting at which the proposed Ordinance is to be adopted. A certified copy of the full text of the proposed Ordinance shall be posted in the office of the City Clerk. Within fifteen (15) days after adoption of the Ordinance, the summary with the names of those City Council members voting for and against the Ordinance shall be published again, and the City Clerk shall post a certified copy of the full text of such adopted Ordinance. SECTION 6. This Ordinance shall take effect and be in full force and effect thirty (30) days after its passage. SECTION 7. If any section, subsection, sentence, clause, or phrase of this Ordinance is for any reason held to be invalid or unconstitutional by a decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this Ordinance. The City Council hereby declares that it would have passed this Ordinance and each and every section, subsection, sentence, clause, or phrase not declared invalid or unconstitutional without regard to whether any portion of the ordinance would be subsequently declared invalid or unconstitutional. On motion by Council Member ______, seconded by Council Member _______, and by the following roll call vote to wit: AYES: NOES: ABSENT: the foregoing Ordinance was adopted this ____ day of _______, 2022. Page 40 of 86Page 243 of 386 RESOLUTION NO. PAGE 17 Page 41 of 86Page 244 of 386 RESOLUTION NO. PAGE 18 ___________________________________ CARON RAY RUSSOM, MAYOR ATTEST: ___________________________________ JESSICA MATSON, CITY CLERK APPROVED AS TO CONTENT: ________________________________ WHITNEY McDONALD, CITY MANAGER APPROVED AS TO FORM: ___________________________________ TIMOTHY J. CARMEL, CITY ATTORNEY Page 42 of 86Page 245 of 386 4/21/22, 12:17 PM Bill Text - SB-9 Housing development: approvals. https://leginfo.legislature.ca.gov/faces/billTextClient.xhtml?bill_id=202120220SB9 1/8 SHARE THIS:Date Published: 09/17/2021 09:00 PM SB-9 Housing development: approvals.(2021-2022) Senate Bill No. 9 CHAPTER 162 An act to amend Section 66452.6 of, and to add Sections 65852.21 and 66411.7 to, the Government Code, relating to land use. [ Approved by Governor September 16, 2021. Filed with Secretary of State September 16, 2021. ] LEGISLATIVE COUNSEL'S DIGEST SB 9, Atkins. Housing development: approvals. The Planning and Zoning Law provides for the creation of accessory dwelling units by local ordinance, or, if a local agency has not adopted an ordinance, by ministerial approval, in accordance with specified standards and conditions. This bill, among other things, would require a proposed housing development containing no more than 2 residential units within a single-family residential zone to be considered ministerially, without discretionary review or hearing, if the proposed housing development meets certain requirements, including, but not limited to, that the proposed housing development would not require demolition or alteration of housing that is subject to a recorded covenant, ordinance, or law that restricts rents to levels affordable to persons and families of moderate, low, or very low income, that the proposed housing development does not allow for the demolition of more than 25% of the existing exterior structural walls, except as provided, and that the development is not located within a historic district, is not included on the State Historic Resources Inventory, or is not within a site that is legally designated or listed as a city or county landmark or historic property or district. The bill would set forth what a local agency can and cannot require in approving the construction of 2 residential units, including, but not limited to, authorizing a local agency to impose objective zoning standards, objective subdivision standards, and objective design standards, as defined, unless those standards would have the effect of physically precluding the construction of up to 2 units or physically precluding either of the 2 units from being at least 800 square feet in floor area, prohibiting the imposition of setback requirements under certain circumstances, and setting maximum setback requirements under all other circumstances. The Subdivision Map Act vests the authority to regulate and control the design and improvement of subdivisions in the legislative body of a local agency and sets forth procedures governing the local agency’s processing, approval, conditional approval or disapproval, and filing of tentative, final, and parcel maps, and the modification of those maps. Under the Subdivision Map Act, an approved or conditionally approved tentative map expires 24 months after its approval or conditional approval or after any additional period of time as prescribed by local ordinance, not to exceed an additional 12 months, except as provided. Home Bill Information California Law Publications Other Resources My Subscriptions My Favorites ATTACHMENT 2 Page 43 of 86Page 246 of 386 4/21/22, 12:17 PM Bill Text - SB-9 Housing development: approvals. https://leginfo.legislature.ca.gov/faces/billTextClient.xhtml?bill_id=202120220SB9 2/8 This bill, among other things, would require a local agency to ministerially approve a parcel map for an urban lot split that meets certain requirements, including, but not limited to, that the urban lot split would not require the demolition or alteration of housing that is subject to a recorded covenant, ordinance, or law that restricts rents to levels affordable to persons and families of moderate, low, or very low income, that the parcel is located within a single-family residential zone, and that the parcel is not located within a historic district, is not included on the State Historic Resources Inventory, or is not within a site that is legally designated or listed as a city or county landmark or historic property or district. The bill would set forth what a local agency can and cannot require in approving an urban lot split, including, but not limited to, authorizing a local agency to impose objective zoning standards, objective subdivision standards, and objective design standards, as defined, unless those standards would have the effect of physically precluding the construction of 2 units, as defined, on either of the resulting parcels or physically precluding either of the 2 units from being at least 800 square feet in floor area, prohibiting the imposition of setback requirements under certain circumstances, and setting maximum setback requirements under all other circumstances. The bill would require an applicant to sign an affidavit stating that they intend to occupy one of the housing units as their principal residence for a minimum of 3 years from the date of the approval of the urban lot split, unless the applicant is a community land trust or a qualified nonprofit corporation, as specified. The bill would prohibit a local agency from imposing any additional owner occupancy standards on applicants. By requiring applicants to sign affidavits, thereby expanding the crime of perjury, the bill would impose a state-mandated local program. The bill would also extend the limit on the additional period that may be provided by ordinance, as described above, from 12 months to 24 months and would make other conforming or nonsubstantive changes. The California Environmental Quality Act (CEQA) requires a lead agency, as defined, to prepare, or cause to be prepared, and certify the completion of, an environmental impact report on a project that it proposes to carry out or approve that may have a significant effect on the environment. CEQA does not apply to the approval of ministerial projects. This bill, by establishing the ministerial review processes described above, would thereby exempt the approval of projects subject to those processes from CEQA. The California Coastal Act of 1976 provides for the planning and regulation of development, under a coastal development permit process, within the coastal zone, as defined, that shall be based on various coastal resources planning and management policies set forth in the act. This bill would exempt a local agency from being required to hold public hearings for coastal development permit applications for housing developments and urban lot splits pursuant to the above provisions. By increasing the duties of local agencies with respect to land use regulations, the bill would impose a state- mandated local program. The bill would include findings that changes proposed by this bill address a matter of statewide concern rather than a municipal affair and, therefore, apply to all cities, including charter cities. The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement. This bill would provide that no reimbursement is required by this act for specified reasons. Vote: majority Appropriation: no Fiscal Committee: yes Local Program: yes THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS: SECTION 1. Section 65852.21 is added to the Government Code, to read: 65852.21. (a) A proposed housing development containing no more than two residential units within a single- family residential zone shall be considered ministerially, without discretionary review or a hearing, if the proposed housing development meets all of the following requirements: (1) The parcel subject to the proposed housing development is located within a city, the boundaries of which include some portion of either an urbanized area or urban cluster, as designated by the United States Census Bureau, or, for unincorporated areas, a legal parcel wholly within the boundaries of an urbanized area or urban cluster, as designated by the United States Census Bureau. Page 44 of 86Page 247 of 386 4/21/22, 12:17 PM Bill Text - SB-9 Housing development: approvals. https://leginfo.legislature.ca.gov/faces/billTextClient.xhtml?bill_id=202120220SB9 3/8 (2) The parcel satisfies the requirements specified in subparagraphs (B) to (K), inclusive, of paragraph (6) of subdivision (a) of Section 65913.4. (3) Notwithstanding any provision of this section or any local law, the proposed housing development would not require demolition or alteration of any of the following types of housing: (A) Housing that is subject to a recorded covenant, ordinance, or law that restricts rents to levels affordable to persons and families of moderate, low, or very low income. (B) Housing that is subject to any form of rent or price control through a public entity’s valid exercise of its police power. (C) Housing that has been occupied by a tenant in the last three years. (4) The parcel subject to the proposed housing development is not a parcel on which an owner of residential real property has exercised the owner’s rights under Chapter 12.75 (commencing with Section 7060) of Division 7 of Title 1 to withdraw accommodations from rent or lease within 15 years before the date that the development proponent submits an application. (5) The proposed housing development does not allow the demolition of more than 25 percent of the existing exterior structural walls, unless the housing development meets at least one of the following conditions: (A) If a local ordinance so allows. (B) The site has not been occupied by a tenant in the last three years. (6) The development is not located within a historic district or property included on the State Historic Resources Inventory, as defined in Section 5020.1 of the Public Resources Code, or within a site that is designated or listed as a city or county landmark or historic property or district pursuant to a city or county ordinance. (b) (1) Notwithstanding any local law and except as provided in paragraph (2), a local agency may impose objective zoning standards, objective subdivision standards, and objective design review standards that do not conflict with this section. (2) (A) The local agency shall not impose objective zoning standards, objective subdivision standards, and objective design standards that would have the effect of physically precluding the construction of up to two units or that would physically preclude either of the two units from being at least 800 square feet in floor area. (B) (i) Notwithstanding subparagraph (A), no setback shall be required for an existing structure or a structure constructed in the same location and to the same dimensions as an existing structure. (ii) Notwithstanding subparagraph (A), in all other circumstances not described in clause (i), a local agency may require a setback of up to four feet from the side and rear lot lines. (c) In addition to any conditions established in accordance with subdivision (b), a local agency may require any of the following conditions when considering an application for two residential units as provided for in this section: (1) Off-street parking of up to one space per unit, except that a local agency shall not impose parking requirements in either of the following instances: (A) The parcel is located within one-half mile walking distance of either a high-quality transit corridor, as defined in subdivision (b) of Section 21155 of the Public Resources Code, or a major transit stop, as defined in Section 21064.3 of the Public Resources Code. (B) There is a car share vehicle located within one block of the parcel. (2) For residential units connected to an onsite wastewater treatment system, a percolation test completed within the last 5 years, or, if the percolation test has been recertified, within the last 10 years. (d) Notwithstanding subdivision (a), a local agency may deny a proposed housing development project if the building official makes a written finding, based upon a preponderance of the evidence, that the proposed housing development project would have a specific, adverse impact, as defined and determined in paragraph (2) of subdivision (d) of Section 65589.5, upon public health and safety or the physical environment and for which there is no feasible method to satisfactorily mitigate or avoid the specific, adverse impact. Page 45 of 86Page 248 of 386 4/21/22, 12:17 PM Bill Text - SB-9 Housing development: approvals. https://leginfo.legislature.ca.gov/faces/billTextClient.xhtml?bill_id=202120220SB9 4/8 (e) A local agency shall require that a rental of any unit created pursuant to this section be for a term longer than 30 days. (f ) Notwithstanding Section 65852.2 or 65852.22, a local agency shall not be required to permit an accessory dwelling unit or a junior accessory dwelling unit on parcels that use both the authority contained within this section and the authority contained in Section 66411.7. (g) Notwithstanding subparagraph (B) of paragraph (2) of subdivision (b), an application shall not be rejected solely because it proposes adjacent or connected structures provided that the structures meet building code safety standards and are sufficient to allow separate conveyance. (h) Local agencies shall include units constructed pursuant to this section in the annual housing element report as required by subparagraph (I) of paragraph (2) of subdivision (a) of Section 65400. (i) For purposes of this section, all of the following apply: (1) A housing development contains two residential units if the development proposes no more than two new units or if it proposes to add one new unit to one existing unit. (2) The terms “objective zoning standards,” “objective subdivision standards,” and “objective design review standards” mean standards that involve no personal or subjective judgment by a public official and are uniformly verifiable by reference to an external and uniform benchmark or criterion available and knowable by both the development applicant or proponent and the public official prior to submittal. These standards may be embodied in alternative objective land use specifications adopted by a local agency, and may include, but are not limited to, housing overlay zones, specific plans, inclusionary zoning ordinances, and density bonus ordinances. (3) “Local agency” means a city, county, or city and county, whether general law or chartered. (j) A local agency may adopt an ordinance to implement the provisions of this section. An ordinance adopted to implement this section shall not be considered a project under Division 13 (commencing with Section 21000) of the Public Resources Code. (k) Nothing in this section shall be construed to supersede or in any way alter or lessen the effect or application of the California Coastal Act of 1976 (Division 20 (commencing with Section 30000) of the Public Resources Code), except that the local agency shall not be required to hold public hearings for coastal development permit applications for a housing development pursuant to this section. SEC. 2. Section 66411.7 is added to the Government Code, to read: 66411.7. (a) Notwithstanding any other provision of this division and any local law, a local agency shall ministerially approve, as set forth in this section, a parcel map for an urban lot split only if the local agency determines that the parcel map for the urban lot split meets all the following requirements: (1) The parcel map subdivides an existing parcel to create no more than two new parcels of approximately equal lot area provided that one parcel shall not be smaller than 40 percent of the lot area of the original parcel proposed for subdivision. (2) (A) Except as provided in subparagraph (B), both newly created parcels are no smaller than 1,200 square feet. (B) A local agency may by ordinance adopt a smaller minimum lot size subject to ministerial approval under this subdivision. (3) The parcel being subdivided meets all the following requirements: (A) The parcel is located within a single-family residential zone. (B) The parcel subject to the proposed urban lot split is located within a city, the boundaries of which include some portion of either an urbanized area or urban cluster, as designated by the United States Census Bureau, or, for unincorporated areas, a legal parcel wholly within the boundaries of an urbanized area or urban cluster, as designated by the United States Census Bureau. (C) The parcel satisfies the requirements specified in subparagraphs (B) to (K), inclusive, of paragraph (6) of subdivision (a) of Section 65913.4. Page 46 of 86Page 249 of 386 4/21/22, 12:17 PM Bill Text - SB-9 Housing development: approvals. https://leginfo.legislature.ca.gov/faces/billTextClient.xhtml?bill_id=202120220SB9 5/8 (D) The proposed urban lot split would not require demolition or alteration of any of the following types of housing: (i) Housing that is subject to a recorded covenant, ordinance, or law that restricts rents to levels affordable to persons and families of moderate, low, or very low income. (ii) Housing that is subject to any form of rent or price control through a public entity’s valid exercise of its police power. (iii) A parcel or parcels on which an owner of residential real property has exercised the owner’s rights under Chapter 12.75 (commencing with Section 7060) of Division 7 of Title 1 to withdraw accommodations from rent or lease within 15 years before the date that the development proponent submits an application. (iv) Housing that has been occupied by a tenant in the last three years. (E) The parcel is not located within a historic district or property included on the State Historic Resources Inventory, as defined in Section 5020.1 of the Public Resources Code, or within a site that is designated or listed as a city or county landmark or historic property or district pursuant to a city or county ordinance. (F) The parcel has not been established through prior exercise of an urban lot split as provided for in this section. (G) Neither the owner of the parcel being subdivided nor any person acting in concert with the owner has previously subdivided an adjacent parcel using an urban lot split as provided for in this section. (b) An application for a parcel map for an urban lot split shall be approved in accordance with the following requirements: (1) A local agency shall approve or deny an application for a parcel map for an urban lot split ministerially without discretionary review. (2) A local agency shall approve an urban lot split only if it conforms to all applicable objective requirements of the Subdivision Map Act (Division 2 (commencing with Section 66410)), except as otherwise expressly provided in this section. (3) Notwithstanding Section 66411.1, a local agency shall not impose regulations that require dedications of rights-of-way or the construction of offsite improvements for the parcels being created as a condition of issuing a parcel map for an urban lot split pursuant to this section. (c) (1) Except as provided in paragraph (2), notwithstanding any local law, a local agency may impose objective zoning standards, objective subdivision standards, and objective design review standards applicable to a parcel created by an urban lot split that do not conflict with this section. (2) A local agency shall not impose objective zoning standards, objective subdivision standards, and objective design review standards that would have the effect of physically precluding the construction of two units on either of the resulting parcels or that would result in a unit size of less than 800 square feet. (3) (A) Notwithstanding paragraph (2), no setback shall be required for an existing structure or a structure constructed in the same location and to the same dimensions as an existing structure. (B) Notwithstanding paragraph (2), in all other circumstances not described in subparagraph (A), a local agency may require a setback of up to four feet from the side and rear lot lines. (d) Notwithstanding subdivision (a), a local agency may deny an urban lot split if the building official makes a written finding, based upon a preponderance of the evidence, that the proposed housing development project would have a specific, adverse impact, as defined and determined in paragraph (2) of subdivision (d) of Section 65589.5, upon public health and safety or the physical environment and for which there is no feasible method to satisfactorily mitigate or avoid the specific, adverse impact. (e) In addition to any conditions established in accordance with this section, a local agency may require any of the following conditions when considering an application for a parcel map for an urban lot split: (1) Easements required for the provision of public services and facilities. (2) A requirement that the parcels have access to, provide access to, or adjoin the public right-of-way. Page 47 of 86Page 250 of 386 4/21/22, 12:17 PM Bill Text - SB-9 Housing development: approvals. https://leginfo.legislature.ca.gov/faces/billTextClient.xhtml?bill_id=202120220SB9 6/8 (3) Off-street parking of up to one space per unit, except that a local agency shall not impose parking requirements in either of the following instances: (A) The parcel is located within one-half mile walking distance of either a high-quality transit corridor as defined in subdivision (b) of Section 21155 of the Public Resources Code, or a major transit stop as defined in Section 21064.3 of the Public Resources Code. (B) There is a car share vehicle located within one block of the parcel. (f ) A local agency shall require that the uses allowed on a lot created by this section be limited to residential uses. (g) (1) A local agency shall require an applicant for an urban lot split to sign an affidavit stating that the applicant intends to occupy one of the housing units as their principal residence for a minimum of three years from the date of the approval of the urban lot split. (2) This subdivision shall not apply to an applicant that is a “community land trust,” as defined in clause (ii) of subparagraph (C) of paragraph (11) of subdivision (a) of Section 402.1 of the Revenue and Taxation Code, or is a “qualified nonprofit corporation” as described in Section 214.15 of the Revenue and Taxation Code. (3) A local agency shall not impose additional owner occupancy standards, other than provided for in this subdivision, on an urban lot split pursuant to this section. (h) A local agency shall require that a rental of any unit created pursuant to this section be for a term longer than 30 days. (i) A local agency shall not require, as a condition for ministerial approval of a parcel map application for the creation of an urban lot split, the correction of nonconforming zoning conditions. (j) (1) Notwithstanding any provision of Section 65852.2, 65852.21, 65852.22, 65915, or this section, a local agency shall not be required to permit more than two units on a parcel created through the exercise of the authority contained within this section. (2) For the purposes of this section, “unit” means any dwelling unit, including, but not limited to, a unit or units created pursuant to Section 65852.21, a primary dwelling, an accessory dwelling unit as defined in Section 65852.2, or a junior accessory dwelling unit as defined in Section 65852.22. (k) Notwithstanding paragraph (3) of subdivision (c), an application shall not be rejected solely because it proposes adjacent or connected structures provided that the structures meet building code safety standards and are sufficient to allow separate conveyance. (l) Local agencies shall include the number of applications for parcel maps for urban lot splits pursuant to this section in the annual housing element report as required by subparagraph (I) of paragraph (2) of subdivision (a) of Section 65400. (m) For purposes of this section, both of the following shall apply: (1) “Objective zoning standards,” “objective subdivision standards,” and “objective design review standards” mean standards that involve no personal or subjective judgment by a public official and are uniformly verifiable by reference to an external and uniform benchmark or criterion available and knowable by both the development applicant or proponent and the public official prior to submittal. These standards may be embodied in alternative objective land use specifications adopted by a local agency, and may include, but are not limited to, housing overlay zones, specific plans, inclusionary zoning ordinances, and density bonus ordinances. (2) “Local agency” means a city, county, or city and county, whether general law or chartered. (n) A local agency may adopt an ordinance to implement the provisions of this section. An ordinance adopted to implement this section shall not be considered a project under Division 13 (commencing with Section 21000) of the Public Resources Code. (o) Nothing in this section shall be construed to supersede or in any way alter or lessen the effect or application of the California Coastal Act of 1976 (Division 20 (commencing with Section 30000) of the Public Resources Code), except that the local agency shall not be required to hold public hearings for coastal development permit applications for urban lot splits pursuant to this section. Page 48 of 86Page 251 of 386 4/21/22, 12:17 PM Bill Text - SB-9 Housing development: approvals. https://leginfo.legislature.ca.gov/faces/billTextClient.xhtml?bill_id=202120220SB9 7/8 SEC. 3. Section 66452.6 of the Government Code is amended to read: 66452.6. (a) (1) An approved or conditionally approved tentative map shall expire 24 months after its approval or conditional approval, or after any additional period of time as may be prescribed by local ordinance, not to exceed an additional 24 months. However, if the subdivider is required to expend two hundred thirty-six thousand seven hundred ninety dollars ($236,790) or more to construct, improve, or finance the construction or improvement of public improvements outside the property boundaries of the tentative map, excluding improvements of public rights-of-way that abut the boundary of the property to be subdivided and that are reasonably related to the development of that property, each filing of a final map authorized by Section 66456.1 shall extend the expiration of the approved or conditionally approved tentative map by 48 months from the date of its expiration, as provided in this section, or the date of the previously filed final map, whichever is later. The extensions shall not extend the tentative map more than 10 years from its approval or conditional approval. However, a tentative map on property subject to a development agreement authorized by Article 2.5 (commencing with Section 65864) of Chapter 4 of Division 1 may be extended for the period of time provided for in the agreement, but not beyond the duration of the agreement. The number of phased final maps that may be filed shall be determined by the advisory agency at the time of the approval or conditional approval of the tentative map. (2) Commencing January 1, 2012, and each calendar year thereafter, the amount of two hundred thirty-six thousand seven hundred ninety dollars ($236,790) shall be annually increased by operation of law according to the adjustment for inflation set forth in the statewide cost index for class B construction, as determined by the State Allocation Board at its January meeting. The effective date of each annual adjustment shall be March 1. The adjusted amount shall apply to tentative and vesting tentative maps whose applications were received after the effective date of the adjustment. (3) “Public improvements,” as used in this subdivision, include traffic controls, streets, roads, highways, freeways, bridges, overcrossings, street interchanges, flood control or storm drain facilities, sewer facilities, water facilities, and lighting facilities. (b) (1) The period of time specified in subdivision (a), including any extension thereof granted pursuant to subdivision (e), shall not include any period of time during which a development moratorium, imposed after approval of the tentative map, is in existence. However, the length of the moratorium shall not exceed five years. (2) The length of time specified in paragraph (1) shall be extended for up to three years, but in no event beyond January 1, 1992, during the pendency of any lawsuit in which the subdivider asserts, and the local agency that approved or conditionally approved the tentative map denies, the existence or application of a development moratorium to the tentative map. (3) Once a development moratorium is terminated, the map shall be valid for the same period of time as was left to run on the map at the time that the moratorium was imposed. However, if the remaining time is less than 120 days, the map shall be valid for 120 days following the termination of the moratorium. (c) The period of time specified in subdivision (a), including any extension thereof granted pursuant to subdivision (e), shall not include the period of time during which a lawsuit involving the approval or conditional approval of the tentative map is or was pending in a court of competent jurisdiction, if the stay of the time period is approved by the local agency pursuant to this section. After service of the initial petition or complaint in the lawsuit upon the local agency, the subdivider may apply to the local agency for a stay pursuant to the local agency’s adopted procedures. Within 40 days after receiving the application, the local agency shall either stay the time period for up to five years or deny the requested stay. The local agency may, by ordinance, establish procedures for reviewing the requests, including, but not limited to, notice and hearing requirements, appeal procedures, and other administrative requirements. (d) The expiration of the approved or conditionally approved tentative map shall terminate all proceedings and no final map or parcel map of all or any portion of the real property included within the tentative map shall be filed with the legislative body without first processing a new tentative map. Once a timely filing is made, subsequent actions of the local agency, including, but not limited to, processing, approving, and recording, may lawfully occur after the date of expiration of the tentative map. Delivery to the county surveyor or city engineer shall be deemed a timely filing for purposes of this section. (e) Upon application of the subdivider filed before the expiration of the approved or conditionally approved tentative map, the time at which the map expires pursuant to subdivision (a) may be extended by the legislative body or by an advisory agency authorized to approve or conditionally approve tentative maps for a period or Page 49 of 86Page 252 of 386 4/21/22, 12:17 PM Bill Text - SB-9 Housing development: approvals. https://leginfo.legislature.ca.gov/faces/billTextClient.xhtml?bill_id=202120220SB9 8/8 periods not exceeding a total of six years. The period of extension specified in this subdivision shall be in addition to the period of time provided by subdivision (a). Before the expiration of an approved or conditionally approved tentative map, upon an application by the subdivider to extend that map, the map shall automatically be extended for 60 days or until the application for the extension is approved, conditionally approved, or denied, whichever occurs first. If the advisory agency denies a subdivider’s application for an extension, the subdivider may appeal to the legislative body within 15 days after the advisory agency has denied the extension. (f ) For purposes of this section, a development moratorium includes a water or sewer moratorium, or a water and sewer moratorium, as well as other actions of public agencies that regulate land use, development, or the provision of services to the land, including the public agency with the authority to approve or conditionally approve the tentative map, which thereafter prevents, prohibits, or delays the approval of a final or parcel map. A development moratorium shall also be deemed to exist for purposes of this section for any period of time during which a condition imposed by the city or county could not be satisfied because of either of the following: (1) The condition was one that, by its nature, necessitated action by the city or county, and the city or county either did not take the necessary action or by its own action or inaction was prevented or delayed in taking the necessary action before expiration of the tentative map. (2) The condition necessitates acquisition of real property or any interest in real property from a public agency, other than the city or county that approved or conditionally approved the tentative map, and that other public agency fails or refuses to convey the property interest necessary to satisfy the condition. However, nothing in this subdivision shall be construed to require any public agency to convey any interest in real property owned by it. A development moratorium specified in this paragraph shall be deemed to have been imposed either on the date of approval or conditional approval of the tentative map, if evidence was included in the public record that the public agency that owns or controls the real property or any interest therein may refuse to convey that property or interest, or on the date that the public agency that owns or controls the real property or any interest therein receives an offer by the subdivider to purchase that property or interest for fair market value, whichever is later. A development moratorium specified in this paragraph shall extend the tentative map up to the maximum period as set forth in subdivision (b), but not later than January 1, 1992, so long as the public agency that owns or controls the real property or any interest therein fails or refuses to convey the necessary property interest, regardless of the reason for the failure or refusal, except that the development moratorium shall be deemed to terminate 60 days after the public agency has officially made, and communicated to the subdivider, a written offer or commitment binding on the agency to convey the necessary property interest for a fair market value, paid in a reasonable time and manner. SEC. 4. The Legislature finds and declares that ensuring access to affordable housing is a matter of statewide concern and not a municipal affair as that term is used in Section 5 of Article XI of the California Constitution. Therefore, Sections 1 and 2 of this act adding Sections 65852.21 and 66411.7 to the Government Code and Section 3 of this act amending Section 66452.6 of the Government Code apply to all cities, including charter cities. SEC. 5. No reimbursement is required by this act pursuant to Section 6 of Article XIII B of the California Constitution because a local agency or school district has the authority to levy service charges, fees, or assessments sufficient to pay for the program or level of service mandated by this act or because costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIII B of the California Constitution. Page 50 of 86Page 253 of 386 California Department of Housing and Community Development SB 9 Fact Sheet On the Implementation of Senate Bill 9 (Chapter 162, Statutes of 2021) Housing Policy Development Division March 2022 ATTACHMENT 3 Page 51 of 86Page 254 of 386 California Department of Housing and Community Development – SB 9 Fact Sheet 1 This Fact Sheet is for informational purposes only and is not intended to implement or interpret SB 9. HCD does not have authority to enforce SB 9, although violations of SB 9 may concurrently violate other housing laws where HCD does have enforcement authority, including but not limited to the laws addressed in this document. As local jurisdictions implement SB 9, including adopting local ordinances, it is important to keep these and other housing laws in mind. The Attorney General may also take independent action to enforce SB 9. For a full list of statutes over which HCD has enforcement authority, visit HCD’s Accountability and Enforcement webpage. Executive Summary of SB 9 Senate Bill (SB) 9 (Chapter 162, Statutes of 2021) requires ministerial approval of a housing development with no more than two primary units in a single-family zone, the subdivision of a parcel in a single-family zone into two parcels, or both. SB 9 facilitates the creation of up to four housing units in the lot area typically used for one single-family home. SB 9 contains eligibility criteria addressing environmental site constraints (e.g., wetlands, wildfire risk, etc.), anti-displacement measures for renters and low-income households, and the protection of historic structures and districts. Key provisions of the law require a local agency to modify or eliminate objective development standards on a project-by-project basis if they would prevent an otherwise eligible lot from being split or prevent the construction of up to two units at least 800 square feet in size. For the purposes of this document, the terms “unit,” “housing unit,” “residential unit,” and “housing development” mean primary unit(s) unless specifically identified as an accessory dwelling unit (ADU) or junior ADU or otherwise defined. Single-Family Residential Zones Only (Reference: Gov. Code, §§ 65852.21, subd. (a); 66411.7 subd. (a)(3)(A)) The parcel that will contain the proposed housing development or that will be subject to the lot split must be located in a single-family residential zone. Parcels located in multi- family residential, commercial, agricultural, mixed-use zones, etc., are not subject to SB 9 mandates even if they allow single-family residential uses as a permitted use. While some zones are readily identifiable as single-family residential zones (e.g., R-1 “Single- Family Residential”), others may not be so obvious. Some local agencies have multiple single-family zones with subtle distinctions between them relating to minimum lot sizes or allowable uses. In communities where there may be more than one single-family residential zone, the local agency should carefully review the zone district descriptions in the zoning code and the land use designation descriptions in the Land Use Element of the General Plan. This review will enable the local agency to identify zones whose primary purpose is single-family residential uses and which are therefore subject to SB 9. Considerations such as minimum lot sizes, natural features such as hillsides, or the permissibility of keeping horses should not factor into the determination. Page 52 of 86Page 255 of 386 California Department of Housing and Community Development – SB 9 Fact Sheet 2 Residential Uses Only (Reference: Gov. Code, §§ 65852.21, subd. (a)) SB 9 concerns only proposed housing developments containing no more than two residential units (i.e., one or two). The law does not otherwise change the allowable land uses in the local agency’s single-family residential zone(s). For example, if the local agency’s single-family zone(s) does not currently allow commercial uses such as hotels or restaurants, SB 9 would not allow such uses. Ministerial Review (Reference: Gov. Code, §§ 65852.21, subd. (a); 66411.7, subds. (a), (b)(1)) An application made under SB 9 must be considered ministerially, without discretionary review or a hearing. Ministerial review means a process for development approval involving no personal judgment by the public official as to the wisdom of carrying out the project. The public official merely ensures that the proposed development meets all the applicable objective standards for the proposed action but uses no special discretion or judgment in reaching a decision. A ministerial review is nearly always a “staff-level review.” This means that a staff person at the local agency reviews the application, often using a checklist, and compares the application materials (e.g., site plan, project description, etc.) with the objective development standards, objective subdivision standards, and objective design standards. Objective Standards (Reference: Gov. Code, §§ 65852.21, subd. (b); 66411.7, subd. (c)) The local agency may apply objective development standards (e.g., front setbacks and heights), objective subdivision standards (e.g., minimum lot depths), and objective design standards (e.g., roof pitch, eave projections, façade materials, etc.) as long as they would not physically preclude either of the following: Up to Two Primary Units. The local agency must allow up to two primary units (i.e., one or two) on the subject parcel or, in the case of a lot split, up to two primary units on each of the resulting parcels. Units at least 800 square feet in size. The local agency must allow each primary unit to be at least 800 square feet in size. The terms “objective zoning standards,” “objective subdivision standards,” and “objective design review standards” mean standards that involve no personal or subjective judgment by a public official and are uniformly verifiable by reference to an external and uniform benchmark or criterion available and knowable by both the development applicant or proponent and the public official prior to submittal. Any objective standard that would physically preclude either or both of the two objectives noted above must be modified or Page 53 of 86Page 256 of 386 California Department of Housing and Community Development – SB 9 Fact Sheet 3 waived by the local agency in order to facilitate the development of the project, with the following two exceptions: Setbacks for Existing Structures. The local agency may not require a setback for an existing structure or for a structure constructed in the same location and to the same dimensions as an existing structure (i.e., a building reconstructed on the same footprint). Four-Foot Side and Rear Setbacks. SB 9 establishes an across-the-board maximum four-foot side and rear setbacks. The local agency may choose to apply a lesser setback (e.g., 0-4 feet), but it cannot apply a setback greater than four feet. The local agency cannot apply existing side and rear setbacks applicable in the single-family residential zone(s). Additionally, the four-foot side and rear setback standards are not subject to modification. (Gov. Code, §§ 65852.21, subd. (b)(2)(B); 66411.7, subdivision (c)(3).) One-Unit Development (Reference: Gov. Code, §§ 65852.21, subd. (a); 65852.21, subd. (b)(2)(A)) SB 9 requires the ministerial approval of either one or two residential units. Government Code section 65852.21 indicates that the development of just one single-family home was indeed contemplated and expected. For example, the terms “no more than two residential units” and “up to two units” appear in the first line of the housing development-related portion of SB 9 (Gov. Code, § 65852.21, subd. (a)) and in the line obligating local agencies to modify development standards to facilitate a housing development. (Gov. Code, § 65852.21, subd. (b)(2)(A).) Findings of Denial (Reference: Gov. Code, §§ 65852.21, subd. (d); 66411.7, subd. (d)) SB 9 establishes a high threshold for the denial of a proposed housing development or lot split. Specifically, a local agency’s building official must make a written finding, based upon a preponderance of the evidence, that the proposed housing development would have a specific, adverse impact, as defined in Government Code section 65589.5, subdivision (d)(2), upon public health and safety or the physical environment and for which there is no feasible method to satisfactorily mitigate or avoid the specific, adverse impact. “Specific, adverse impact” means a significant, quantifiable, direct, and unavoidable impact, based on objective, identified written public health or safety standards, policies, or conditions as they existed on the date the application was deemed complete. (Gov. Code, § 65589.5, subd. (d)(2).) Page 54 of 86Page 257 of 386 California Department of Housing and Community Development – SB 9 Fact Sheet 4 Environmental Site Constraints (Reference: Gov. Code, §§ 65852.21, subd. (a)(2) and (a)(6); 66411.7, subd. (a)(3)(C) and (a)(3)(E)) A proposed housing development or lot split is not eligible under SB 9 if the parcel contains any of the site conditions listed in Government Code section 65913.4, subdivision (a)(6)(B-K). Examples of conditions that may disqualify a project from using SB 9 include the presence of farmland, wetlands, fire hazard areas, earthquake hazard areas, flood risk areas, conservation areas, wildlife habitat areas, or conservation easements. SB 9 incorporates by reference these environmental site constraint categories that were established with the passing of the Streamlined Ministerial Approval Process (SB 35, Chapter 366, Statutes of 2017). Local agencies may consult HCD’s Streamlined Ministerial Approval Process Guidelines for additional detail on how to interpret these environmental site constraints. Additionally, a project is not eligible under SB 9 if it is located in a historic district or property included on the State Historic Resources Inventory or within a site that is designated or listed as a city or county landmark or as a historic property or district pursuant to a city or county ordinance. California Environmental Quality Act (CEQA) Reference: Gov. Code, §§ 65852.21, subd. (j); 66411.7, subd. (n)) Because the approval of a qualifying project under SB 9 is deemed a ministerial action, CEQA does not apply to the decision to grant an application for a housing development or a lot split, or both. (Pub. Resources Code, § 21080, subd. (b)(1) [CEQA does not apply to ministerial actions]; CEQA Guidelines, § 15268.) For this reason, a local agency must not require an applicant to perform environmental impact analysis under CEQA for applications made under SB 9. Additionally, if a local agency chooses to adopt a local ordinance to implement SB 9 (instead of implementing the law directly from statute), the preparation and adoption of the ordinance is not considered a project under CEQA. In other words, the preparation and adoption of the ordinance is statutorily exempt from CEQA. Anti-Displacement Measures (Reference: Gov. Code, §§ 65852.21, subd. (a)(3); 66411.7, subd. (a)(3)(D)) A site is not eligible for a proposed housing development or lot split if the project would require demolition or alteration of any of the following types of housing: (1) housing that is subject to a recorded covenant, ordinance, or law that restricts rents to levels affordable to persons and families of moderate, low, or very low income; (2) housing that is subject to any form of rent or price control through a public entity’s valid exercise of its police power; or (3) housing that has been occupied by a tenant in the last three years. Page 55 of 86Page 258 of 386 California Department of Housing and Community Development – SB 9 Fact Sheet 5 Lot Split Requirements (Reference: Gov. Code, § 66411.7) SB 9 does not require a local agency to approve a parcel map that would result in the creation of more than two lots and more than two units on a lot resulting from a lot split under Government Code section 66411.7. A local agency may choose to allow more than two units, but it is not required to under the law. A parcel may only be subdivided once under Government Code section 66411.7. This provision prevents an applicant from pursuing multiple lot splits over time for the purpose of creating more than two lots. SB 9 also does not require a local agency to approve a lot split if an adjacent lot has been subject to a lot split in the past by the same property owner or a person working in concert with that same property owner. Accessory Dwelling Units (Reference: Gov. Code, §§ 65852.21, subd. (j); 66411.7, subd. (f)) SB 9 and ADU Law (Gov. Code, §§ 65852.2 and 65858.22) are complementary. The requirements of each can be implemented in ways that result in developments with both “SB 9 Units” and ADUs. However, specific provisions of SB 9 typically overlap with State ADU Law only to a limited extent on a relatively small number of topics. Treating the provisions of these two laws as identical or substantially similar may lead a local agency to implement the laws in an overly restrictive or otherwise inaccurate way. “Units” Defined. The three types of housing units that are described in SB 9 and related ADU Law are presented below to clarify which development scenarios are (and are not) made possible by SB 9. The definitions provided are intended to be read within the context of this document and for the narrow purpose of implementing SB 9. Primary Unit. A primary unit (also called a residential dwelling unit or residential unit) is typically a single-family residence or a residential unit within a multi-family residential development. A primary unit is distinct from an ADU or a Junior ADU. Examples of primary units include a single-family residence (i.e., one primary unit), a duplex (i.e., two primary units), a four-plex (i.e., four primary units), etc. Accessory Dwelling Unit. An ADU is an attached or a detached residential dwelling unit that provides complete independent living facilities for one or more persons and is located on a lot with a proposed or existing primary residence. It includes permanent provisions for living, sleeping, eating, cooking, and sanitation on the same parcel on which the single-family or multifamily dwelling is or will be situated. Junior Accessory Dwelling Unit. A Junior ADU is a unit that is no more than 500 square feet in size and contained entirely within a single-family residence. A Junior ADU may include separate sanitation facilities or may share sanitation facilities with the existing structure. Page 56 of 86Page 259 of 386 California Department of Housing and Community Development – SB 9 Fact Sheet 6 The terms “unit,” “housing unit,” “residential unit,” and “housing development” mean primary unit(s) unless specifically identified as an ADU or Junior ADU or otherwise defined. This distinction is critical to successfully implementing SB 9 because state law applies different requirements (and provides certain benefits) to ADUs and Junior ADUs that do not apply to primary units. Number of ADUs Allowed. ADUs can be combined with primary units in a variety of ways to achieve the maximum unit counts provided for under SB 9. SB 9 allows for up to four units to be built in the same lot area typically used for a single-family home. The calculation varies slightly depending on whether a lot split is involved, but the outcomes regarding total maximum unit counts are identical. Lot Split. When a lot split occurs, the local agency must allow up to two units on each lot resulting from the lot split. In this situation, all three unit types (i.e., primary unit, ADU, and Junior ADU) count toward this two-unit limit. For example, the limit could be reached on each lot by creating two primary units, or a primary unit and an ADU, or a primary unit and a Junior ADU. By building two units on each lot, the overall maximum of four units required under SB 9 is achieved. (Gov. Code, § 66411.7, subd. (j).) Note that the local agency may choose to allow more than two units per lot if desired. No Lot Split. When a lot split has not occurred, the lot is eligible to receive ADUs and/or Junior ADUs as it ordinarily would under ADU law. Unlike when a project is proposed following a lot split, the local agency must allow, in addition to one or two primary units under SB 9, ADUs and/or JADUs under ADU Law. It is beyond the scope of this document to identify every combination of primary units, ADUs, and Junior ADUs possible under SB 9 and ADU Law. However, in no case does SB 9 require a local agency to allow more than four units on a single lot, in any combination of primary units, ADUs, and Junior ADUs. See HCD’s ADU and JADU webpage for more information and resources. Relationship to Other State Housing Laws SB 9 is one housing law among many that have been adopted to encourage the production of homes across California. The following represent some, but not necessarily all, of the housing laws that intersect with SB 9 and that may be impacted as SB 9 is implemented locally. Housing Element Law. To utilize projections based on SB 9 toward a jurisdiction’s regional housing need allocation, the housing element must: 1) include a site-specific inventory of sites where SB 9 projections are being applied, 2) include a nonvacant sites analysis demonstrating the likelihood of redevelopment and that the existing use will not constitute an impediment for additional residential use, 3) identify any governmental constraints to the use of SB 9 in the creation of units (including land use controls, fees, Page 57 of 86Page 260 of 386 California Department of Housing and Community Development – SB 9 Fact Sheet 7 and other exactions, as well as locally adopted ordinances that impact the cost and supply of residential development), and 4) include programs and policies that establish zoning and development standards early in the planning period and implement incentives to encourage and facilitate development. The element should support this analysis with local information such as local developer or owner interest to utilize zoning and incentives established through SB 9. Learn more on HCD’s Housing Elements webpage. Housing Crisis Act of 2019. An affected city or county is limited in its ability to amend its general plan, specific plans, or zoning code in a way that would improperly reduce the intensity of residential uses. (Gov. Code, § 66300, subd. (b)(1)(A).) This limitation applies to residential uses in all zones, including single-family residential zones. “Reducing the intensity of land use” includes, but is not limited to, reductions to height, density, or floor area ratio, new or increased open space or lot size requirements, new or increased setback requirements, minimum frontage requirements, or maximum lot coverage limitations, or any other action that would individually or cumulatively reduce the site’s residential development capacity. (Gov. Code, § 66300, subd. (b)(1)(A).) A local agency should proceed with caution when adopting a local ordinance that would impose unique development standards on units proposed under SB 9 (but that would not apply to other developments). Any proposed modification to an existing development standard applicable in the single-family residential zone must demonstrate that it would not result in a reduction in the intensity of the use. HCD recommends that local agencies rely on the existing objective development, subdivision, and design standards of its single- family residential zone(s) to the extent possible. Learn more about Designated Jurisdictions Prohibited from Certain Zoning-Related Actions on HCD’s website. Housing Accountability Act. Protections contained in the Housing Accountability Act (HAA) and the Permit Streaming Act (PSA) apply to housing developments pursued under SB 9. (Gov. Code, §§ 65589.5; 65905.5; 65913.10; 65940 et seq.) The definition of “housing development project” includes projects that involve no discretionary approvals and projects that include a proposal to construct a single dwelling unit. (Gov. Code, § 65905.5, subd. (b)(3).) For additional information about the HAA and PSA, see HCD’s Housing Accountability Act Technical Assistance Advisory. Rental Inclusionary Housing. Government Code section 65850, subdivision (g), authorizes local agencies to adopt an inclusionary housing ordinance that includes residential rental units affordable to lower- and moderate-income households. In certain circumstances, HCD may request the submittal of an economic feasibility study to ensure the ordinance does not unduly constrain housing production. For additional information, see HCD’s Rental Inclusionary Housing Memorandum. Page 58 of 86Page 261 of 386 1 ACTION MINUTES MEETING OF THE ARCHITECTURAL REVIEW COMMITEE April 18, 2022, 2:30 p.m. Hybrid City Hall Conference Room/Virtual Zoom Meeting Committee Members Present: Jon Couch, Kristin Juette, Warren Hoag, Bruce Berlin Committee Members Absent: Lori Mainini Hall Staff Present: Community Development Director Brian Pedrotti, Associate Planner Andrew Perez, Assistant Planner Patrick Holub Given the recent increase in COVID-19 cases in San Luis Obispo County, and in compliance with Assembly Bill (AB) 361, which allows for a deviation of teleconference rules required by the Ralph M. Brown Act, this meeting was held by teleconference. _____________________________________________________________________ 1.CALL TO ORDER Chair Hoag called the meeting to order at 2:30 pm. 2.ROLL CALL Chair Hoag performed the roll call. Committee Member Hall was absent. 3.FLAG SALUTE Chair Hoag led the flag salute. 4.AGENDA REVIEW None. 5.COMMUNITY COMMENTS AND SUGGESTIONS Chair Hoag opened the public comment period. No public comment was received. 6.WRITTEN COMMUNICATIONS Chair Hoag acknowledged the two Supplemental Memos containing public comment for Item 8.b. 7.CONSENT AGENDA 7.a Approval of Minutes (PEREZ) This item was continued to the next Regular Meeting due to a lack of quorum of Committee Members that attended the March 21, 2022 Regular Meeting. ATTACHMENT 4 Page 59 of 86Page 262 of 386 3 8.b Review of Objective Design Standards for Projects Proposed Under Senate Bill 9 (SB 9) Committee Member Couch rejoined the meeting at 2:37 pm. Acting Planning Manager Perez presented the staff report, explained the legislation and what it permits. He summarized the objective design standards proposed by staff and the reasoning behind each of them. He also answered questions from the Committee related to where parking is permitted on residential properties. Chair Hoag opened public comment. Kevin Buchanan, Arroyo Grande Planning Commissioner, advocated for taller maximum heights and larger unit sizes. He also wanted to ensure that the standards do not discourage SB 9 development. Chair Hoag closed the public comment. The Committee was not supportive of a one sizes fits all approach to the maximum units size and felt that 1,200 square feet would be too restrictive for larger lots. The Committee suggested using a sliding scale based on lot size to determine the maximum allowable unit size. The Committee was in favor of a tiered approach to the maximum height limit depending on whether the unit was located in the setback of the underlying setback for the district. The Committee was not supportive of a prohibition of rooftop decks. The Committee found the color and material standards proposed too restrictive and do not allow for creativity. The Committee suggested revising the parking standards to specify that parking in a driveway is allowed and adding a landscape buffer requirement to maintain aesthetics and neighborhood character. Moved by Bruce Berlin Seconded by Kristin Juette Recommendation to the Planning Commission to recommend adoption of the objective design standards as revised by the ARC. AYES (4): Jon Couch, Kristin Juette, Warren Hoag, and Bruce Berlin ABSENT (1): Lori Mainini Hall Passed (4 to 0) 9.DISCUSSION ITEMS 9.a Election of Chair and Vice Chair Vice Chair Berlin nominated Chair Hoag to remain Chairperson for the next year. Committee Member Juette made a motion, seconded by Vice Chair Berlin, to serve as Chairperson until the first regular meeting in March 2023. The motion passed unanimously. Chair Hoag nominated Vice Chair Berlin to remain Vice Chair for the next year. Chair Hoag made a motion, seconded by Committee Member Juette, to serve as Vice Chair until the first regular meeting in March 2023. The motion passed unanimously. Page 60 of 86Page 263 of 386 ATTACHMENT 5 Section 16.20.180 Parcel Maps for Urban Lot Spits A. Purpose and Scope 1. This Section implements Government Code section 66411.7 to provide an owner of property in the Single Family zoning district an additional method to subdivide the parcel for the purpose of housing development. 2. Urban lot split means the subdivision of an existing legal parcel in the Single Family zoning district to create no more than two new parcels. B. Application and Approval 1. A parcel map for an urban lot split may not be approved except in conjunction with a concurrently submitted application for building permits for two-unit residential development pursuant to Section 16.32.060. Development on the resulting parcels is limited to the residential development approved in the concurrently submitted building permit applications. 2. A parcel map for an urban lot split must be prepared by a registered civil engineer or licensed land surveyor in accordance with Government Code sections 66444 – 66450 and this Section, and submitted for approval to the City Engineer. A fee in an amount established by City Council resolution must be paid concurrently with the submission of the parcel map. 3. The City Engineer is the approval authority for parcel maps under this Section. The City Engineer shall approve a parcel map for an urban lot split if the Engineer determines that it meets all of the requirements of this Section. C. The following supplemental information is required to be submitted with a parcel map to establish compliance with the construction plans and all provisions of this Code and applicable State law: 1. A map of appropriate size and to scale showing all of the following: a. Total area (in acreage and square feet) of each proposed lot. b. Location and dimensions of existing and proposed property lines; c. Zoning District; d. The location and use of all existing and proposed structures; e. All required zoning setbacks for the existing and proposed lots; f. The location of all existing water, sewer, electricity, storm drain, or gas service lines, pipes, systems, or easements; g. The location of all proposed new water, sewer, storm drain, lines, pipes, or systems; h. The location of any proposed easements for access or public utilities to serve a lot created by the subdivision; Page 61 of 86Page 264 of 386 i. The location of any existing trees larger than four inches in diameter measured four feet six inches above the base and any such trees proposed for removal; j. Any area of the parcel that has a slope of 25% or greater by way of contours at 5- foot intervals; l. Name and dimensions, including right-of-way and improved area, of public and private streets or public alleys adjoining the parcel; m. Curb, gutter, sidewalk, parkway, and street trees: type, location, and dimensions; n. Location of existing or proposed driveway dimensions, materials, and slope (including cross slope); and o. Location of existing or proposed pedestrian pathway access to the public right of way. 2. A statement of the owner, signed under penalty of perjury under the laws of California, that: a. The proposed urban lot split would not require or authorize demolition or alteration of any of the following types of housing: (i) Housing that is subject to a recorded covenant, ordinance, or law that restricts rents to levels affordable to persons and families of moderate, low, or very low income. (ii) Housing that is subject to any form of rent or price control through a public entity’s valid exercise of its police power. (iii) A parcel or parcels on which an owner of residential real property has exercised the owner’s rights under Section 12.75 (commencing with Section 7060) of Division 7 of Title 1 of the Government Code to withdraw accommodations from rent or lease within 15 years before the date that the development proponent submits an application. (iv) Housing that has been occupied by a tenant in the last three years. b. The parcel has not been established through prior exercise of an urban lot split under this Section; c. Neither the owner of the parcel being subdivided nor any person acting in concert with the owner has previously subdivided an adjacent parcel under the provisions of this Section. d. The owner intends to occupy one of the housing units located on a lot created by the parcel map as their principal residence for a minimum of three years from the date of the recording of the parcel map. e. Rental terms of any unit created by the subdivision shall not be less than 31 consecutive days, nor shall rental terms allow termination of the tenancy prior to the expiration of at least one thirty-one (31) day period of occupancy by the same tenant. Page 62 of 86Page 265 of 386 f. The uses allowed on a lot created by the parcel map shall be limited to residential uses. D. Design and Improvement Requirements 1. A parcel map may subdivide an existing legal parcel to create no more than two parcels of approximately equal lot area. One parcel shall not be smaller than 40 percent of the lot area of the original parcel proposed for subdivision and neither parcel shall be smaller than 1,200 square feet.: 2. Each parcel must be served by a separate water service meter and a separate sewer connection. 3. Each parcel shall either drain a developed drainage easement or in accordance with the City’s Standard Specification and Engineering Standards. 4. Rights-of-way as required for access along all natural watercourses as necessary for flood control, maintenance, and improvement shall be dedicated. 5. The parcel must satisfy the requirements of Government Code section 66411.7(a). 6. A lot line shall not bisect or be located within 4 feet of any of the following: a. A dwelling that has been occupied by a tenant at any time during the three years before the date of the parcel map; b. A structure designated as a historic structure or a candidate structure under any City ordinance or included on the State Historic Resources Inventory; c. A dwelling that is subject to a recorded covenant, ordinance, or law that restricts rents to levels affordable to persons and families of moderate, low, or very low income. d. Existing easements if the resulting lot would create a developable area that would interfere with the use of the easement for its intended purpose. 7. The location and orientation of new lot lines shall meet the following standards: a. Front lot lines shall conform to the minimum public street frontage requirements of the Development Code; a flag lot, or a lot with a narrow projecting strip of land extending along a street, is not permitted. b. Each parcel shall have approximately equal lot width and lot depth, consistent with the minimum lot sizes described in subsection D, above. Lot depth shall be measured at the midpoint of the front lot line. Lot width shall be measured by a line connecting two points on opposite interior lot lines that will result in a line parallel to the front lot line. c. New lot lines must be straight lines, unless there is a conflict with existing improvements or the natural environment in which case the line may be not be straight but shall follow the appropriate course. d. Lot lines facing a street shall generally be parallel to the street. Unless the minimum public street frontage is provided, the lot line dividing the two parcels must be parallel Page 63 of 86Page 266 of 386 to and not less than 50 feet from an existing front lot line, or outside the front half of the existing lot, whichever is greater. e. Interior lot lines not facing the street shall be at right angles perpendicular to the street on straight streets, or radial to the street on curved streets. f. Lot lines shall be located within appropriate physical locations such as the top of creek banks, at appropriate topographical changes (top or bottom of slopes etc.) or at locations which clearly separate existing and proposed land uses. g. Lot lines shall be contiguous with existing zoning boundaries. h. The placement of lot lines shall not result in an accessory building or accessory use on a lot without a main building or primary use on the same lot, as defined in the Development Code. i. Lot lines shall not render an existing structure as nonconforming in any respect (e.g., setbacks, Floor Area Ratio, parking), nor increase the nonconformity of an existing nonconforming structure. E. Access Standards 1. Each lot shall front upon or have access to a public street, or be served by an access easement serving no more than two lots. Access shall be provided in compliance with these standards: a. Vehicle access easements serving a maximum of two units shall meet the following standards: i. Easement width shall be a minimum of 10 feet and a maximum of 16 feet, unless a wider driveway is required by the California Fire Code due to distance of the structure from the easement, or as needed to meet the driveway and parking standards in the City’s standards. ii. The minimum length for a vehicle access easement is 20 feet. No maximum easement length shall be set. If easement length is more than 75 feet, a vehicle turnaround shall be provided. iii. No residential structure shall be closer than 3 feet to the easement. b. Vehicle access easements serving three to four units shall meet the following standards: i. Easement width shall be a minimum of 20 feet. ii. The minimum length for a vehicle access easement is 20 feet. No maximum easement length shall be set. If easement length is more than 75 feet, a vehicle turnaround shall be provided. iii. No residential structure shall be closer than 5 feet to the easement. c. Where a lot does not abut a public street, and where no automobile parking spaces are required or proposed for the residential development, a vehicle access easement Page 64 of 86Page 267 of 386 is not required. An easement providing pedestrian access to a street from each lot shall be provided meeting the following standards: i. Easement width shall be a minimum of five feet; ii. Pedestrian access easements shall not exceed 200 feet in length. 2. Vehicle access easements shall not be located closer than 25 feet to an intersection. 3. Access and provisions for fire protection consistent with the California Fire Code shall be provided for all structures served by an access easement. 4. Surfacing of easements, pedestrian walkways required within easements, and turnaround dimensions shall meet the requirements of the California Fire Code, the City’s Design Standards, and the parking design standards in the Development Code. 5. Lots taking access by an easement must record a shared maintenance agreement for the driveway. The agreement shall be recorded prior to or concurrently with the final map. F. Map Requirements 1. The content and form of a parcel map shall meet all the requirements of Government Code sections 66444 – 66450. 2. The parcel map shall show all easements for public utilities necessary to serve each lot created by the subdivision. 3. The parcel map shall show all easements necessary to provide each lot with access to the public or private street or alley abutting the original parcel. 4. The parcel map shall contain a declaration that: a. Each lot created by the parcel map shall be used solely for residential dwellings; b. That no more than two residential dwelling units may be permitted on each lot. As used in this subsection residential dwelling unit includes a unit created pursuant to Government Code section 65852.21, a primary dwelling unit, an accessory dwelling unit as defined in Government Code section 65852.2, or a junior accessory dwelling unit as defined in Government Code section 65852.22. c. That rental of any dwelling unit on a lot created by the parcel map shall not be less than 31 consecutive days, nor shall rental terms allow termination of the tenancy prior to the expiration of at least one 31-day period occupancy by the same tenant. G. Concurrent Processing With Other Ministerial Permits for Housing Development 1. No development, including grading or vegetation removal, shall commence on either lot, concurrent or subsequent to an urban lot split, unless it is approved with a valid building permit for the construction of a housing development and complies with all the objective development and design standards outlined for two-unit residential development or accessory dwelling units in this Code, or any other adopted objective design standards in effect at the time a complete application is submitted. Page 65 of 86Page 268 of 386 2. A building permit for development on an urban lot split cannot be issued until the parcel map is recorded. 3. The City Engineer shall deny an urban lot split if the building official has made a written finding, based upon a preponderance of the evidence, that the proposed housing development project would have a specific, adverse impact, as defined and determined in paragraph (2) of subdivision (d) of Section 65589.5 of the Government Code, upon public health and safety or the physical environment and for which there is no feasible method to satisfactorily mitigate or avoid the specific, adverse impact. H. Prohibition of Further Subdivision A lot created by a parcel map under this Section shall not be further subdivided. Page 66 of 86Page 269 of 386 ATTACHMENT 6 Section 16.32.060 Two-Unit Residential Development A. Purpose and Intent. 1. It is the intent of these regulations to provide opportunities for two units on one legal parcel, consistent with state law and local regulations. In the event of an inconsistency between this Section and Government Code Section 65852.21, Government Code Section 65852.21 shall prevail. Provided that Government Code Sections 65852.21 or 66411.7 are not repealed, qualifying two-unit residential development in the single family zoning districts shall be located, developed, and used in compliance with this Section. 2. In accordance with Government Code Section 65852.21(a)(2), two-unit residential development shall not be permitted under this Section in any of the following circumstances: a. Parcels located in: i. Wetlands; ii. Either prime farmland or farmland of statewide importance, as defined pursuant to United States Department of Agriculture land inventory and monitoring criteria, as modified for California, and designated on the maps prepared by the Farmland Mapping and Monitoring Program of the Department of Conservation; iii. Very high fire severity zones, except if the site has adopted fire hazard mitigation measures pursuant to existing building standards or state fire mitigation measures applicable to the development; iv. A hazardous waste site, unless the site has been cleared by the State for residential use; v. Delineated earthquake fault zones, unless the development complies with applicable seismic protection building code standards; vi. Special flood hazard areas (100-year flood zones), unless the site has been subject to a FEMA Letter of Map Revision issued to the City or the site meets FEMA requirement necessary to meet minimum flood plain management criteria of the National Flood Insurance Program; vii. A regulatory flood way identified in a FEMA map, unless the development has received a no-rise certification; viii. Lands identified for conservation in an adopted natural resource protection plan, habitat for protected species, or under a conservation easement; and Page 67 of 86Page 270 of 386 ix. A historic district or property designated pursuant to a local ordinance or included on the State Historic Resources Inventory. b. The proposed development would require demolition or alteration of any of the following types of housing: i. Housing that is subject to a recorded covenant, ordinance, or law that restricts rents to moderate, low, or very low incomes; ii. A unit that has been occupied by a tenant within the past three years; and iii. A rent controlled unit. c. The proposed development would result in the demolition of more than 25 percent of the existing exterior structural walls, unless the site has not been occupied by a tenant in the last three years. d. The building official finds that the proposed development would have a specific, adverse impact on public health and safety or the physical environment that cannot be feasibly mitigated or avoided, as defined and determined in paragraph (2) of subdivision (d) of Government Code Section 65589.5. B. Restrictions. A qualifying two-unit residential project shall be subject to the following restrictions: 1. The development and use of the dwelling units shall only be valid and permitted based on the terms established in the Section. 2. The dwelling unit(s) shall not be rented for a period of less than thirty-one (31) consecutive days, nor shall rental terms allow termination of the tenancy prior to the expiration of at least one thirty-one (31) day period of occupancy by the same tenants. C. Unit Configurations The new unit in a two-residential unit development may be permitted in the following configurations, provided that no more than two attached residential units are in any one building on a lot. For the purpose of this section, “unit” means any dwelling unit, including, but not limited to, two-unit residential development, additional residential unit, primary residential unit, accessory dwelling unit, or junior accessory dwelling unit. 1. One new unit incorporated entirely within an existing residential unit. 2. One new unit incorporated entirely within an existing accessory building, including garages. Page 68 of 86Page 271 of 386 3. One new unit attached to and increasing the size of an existing residential unit or an existing accessory building. 4. One new unit detached from and located on the same lot as an existing unit. A unit that is attached to another detached accessory building, but not another residential unit, or is attached by a breezeway or porch, is considered detached. 5. Two newly constructed attached units (duplex) or two detached residential units on a vacant lot. 6. A two-unit residential development in any of the configurations described above may be added to a newly created lot concurrently with an approval for a parcel map for an urban lot split, pursuant to AGMC Section 16.20.180, Parcel Maps for Urban Lot Splits; however, the provisions of that Chapter shall not be used to permit more than two units on a lot. 7. Up to two accessory dwelling units pursuant to AGMC Section 16.52.150, Accessory Dwelling Units, may be proposed in addition to the two units constructed pursuant to this Section on a lot that is not the result of an urban lot split. D. Parking. 1. Pursuant to Government Code Section 65852.21(c), one off-street parking space is required per dwelling unit, unless the parcel is located within one-half mile of a high-quality transit corridor as defined in subdivision (b) of Section 21155 of the Public Resources Code or a major transit stop as defined in Section 21064.3 of the Public Resources Code or there is a car share vehicle located within one block of the parcel. 2. The location of the required parking space(s) shall not obstruct the required parking of each Dwelling Unit. 3. The parking facilities shall comply with Section 16.56.070. 4. Required parking spaces for separate dwelling units shall not be provided in a tandem configuration. 5. The required parking spaces must be covered. E. Rear and Side Setbacks. 1. No setback shall be applied to existing structures or structures constructed in the same location and to the same dimensions as an existing structure. 2. For projects not meeting the requirements of subsection 1 above, a minimum four- foot setback shall be provided from side and rear lot lines. F. Objective Zoning and Design Standards for Two-Unit Residential Developments. Page 69 of 86Page 272 of 386 Government Code Section 65852.21 permits the imposition of objective zoning standards and objective design standards, provided the standards do not physically preclude the construction of up to two units of at least 800 square feet. Accordingly, the follow objective standards shall apply to two-unit residential development projects: 1. Massing and Articulation a. Maximum Unit Size: The total gross floor area of the unit(s), excluding garages, shall not exceed the floor-area ratios maximums found in Section 16.32.050 of this Title. b. Building Separation: detached dwelling units shall have a minimum of 10 feet of separation whether the units are on one lot or adjacent lots. c. Height: The maximum height shall be 16-feet for any structure, or portions thereof, located within the setback of the underlying zoning district. Structures, or any portion thereof, located outside of the setbacks of the underlying zoning district shall conform to the height requirements of that district. d. Rooftop decks shall be permitted in accordance with Section 16.48.180 of this Title. 2. Colors and Materials a. The primary cladding shall be stone, brick, fiber cement, composite wood or stone, wood, stucco, or other cementitious material. Plywood, such as T1-11 siding, is prohibited. b. Color schemes shall consist of one primary color and at least one secondary color, at a minimum. The roof color shall not be considered a color for purposes of this standard. 3. Parking and Circulation a. Parking shall not be located between a structure and a public sidewalk within the front setback, with the exception of permitted driveways. When parking areas are located in the front yard, outside of the front setback, a landscape buffer of at least 10 feet between the sidewalk and parking area shall be provided. b. All parking areas serving more than one unit shall be internally connected and shall use shared driveways. 4. Utility and Service Areas a. All new dwelling units must connect to City utilities in accordance with Section 13.12.060 of Title 13. Page 70 of 86Page 273 of 386 1 ACTION MINUTES MEETING OF THE PLANNING COMMISSION May 3, 2022, 6:00 p.m. Hybrid City Council Chamber/Virtual Zoom Meeting Commission Members Present: Chair Glenn Martin, Vice Chair Frank Schiro, Commissioner Jamie Maraviglia, Commissioner Jim Guthrie, Kevin Buchanan Staff Present: Associate Planner Andrew Perez, Assistant Planner Patrick Holub, Community Development Director Brian Pedrotti Given the recent increase in COVID-19 cases in San Luis Obispo County, and in compliance with Assembly Bill (AB) 361, which allows for a deviation of teleconference rules required by the Ralph M. Brown Act, this meeting was held by teleconference. _____________________________________________________________________ 1.CALL TO ORDER Chair Martin called the Planning Commission meeting to order at 6:00pm. 2.ROLL CALL 3.FLAG SALUTE Vice Chair Schiro 4.AGENDA REVIEW None. 5.COMMUNITY COMMENTS AND SUGGESTIONS None. 6.WRITTEN COMMUNICATIONS The Commission received one supplemental memorandum regarding agenda item 9.a. 7.CONSENT AGENDA Moved by Commissioner Maraviglia Seconded by Vice Chair Schiro Commissioner Maraviglia moved and Vice Chair Schiro seconded a motion to approve the consent agenda as submitted. Page 274 of 386 2 Passed 7.a Approval of Minutes (HOLUB) Approve the Minutes of the March 1, 2022 Regular Meeting. 7.b Consideration Of Time Extension 22-001 For Conditional Use Permit No. 16-005; One Year Time Extension In Accordance With The Arroyo Grande Municipal Code; Location – 1495 El Camino Real; Applicant – Scott Pace; Representative – Greg Soto (PEREZ) It is recommended that the Planning Commission adopt a Resolution approving Time Extension 22-001. 8. PUBLIC HEARINGS 8.a Consideration Of Development Code Amendment 21-002 To Implement Senate Bill 9; Location – Citywide (PEREZ) Acting Planning Manager Perez presented the staff report and responded to Commissioner questions regarding Floor Area Ratio maximums, ADUs constructed with Urban Lot Splits, parking locations, orientation of lot lines, maximum number of units and enforcement of the prohibition on short term rentals. Chair Martin opened the public hearing. Krista Jeffries spoke about housing issues and encouraged the Commission to allow more density. Garrett Philbin spoke about missing middle housing and asked that the Commission not place any undue restrictions on SB9 developments. Lea Hensley spoke about the costs involved for processing a parcel map and mentioned that the process does not seem affordable. Hearing no further public comment, Chair Martin closed the public hearing. Moved by Chair Martin Seconded by Commissioner Guthrie Chair Martin moved and Commissioner Guthrie seconded a motion to recommend changes to the City Council in the draft language of the Ordinance including: 1) Allowing ADUs with SB9 developments to allow a maximum of six (6) units; 2) Allowing a minimum unit size of 1200 square feet; 3) Remove the requirement to provide parking; 4) Develop a method to track Urban Lot Splits to inform new property owners; 5) Remove prohibition on location and orientation of atypical lot lines; 6) Evaluate fee mitigation measures to make developments more affordable; 7) Reconsider overall height limitation. Page 275 of 386 3 Failed Moved by Chair Martin Seconded by Vice Chair Schiro Chair Martin moved and Vice Chair Schiro seconded a motion to make the recommended changes to the draft ordinance before forwarding it for consideration to the City Council. The motion passed on a 4-1 vote. Passed 9. NON-PUBLIC HEARING ITEMS 9.a Election of Chairperson and Vice Chairperson (PEREZ) Moved by Commissioner Guthrie Seconded by Vice Chair Schiro Commissioner Guthrie moved and Vice Chair Schiro moved to elect Chair Martin as the Commission's chair for the next term. The motion passed 5-0. Passed Moved by Commissioner Guthrie Seconded by Commissioner Maraviglia Commissioner Guthrie moved and Commissioner Maraviglia seconded a motion to elect Commissioner Maraviglia to serve as the Commission's Vice Chair for the next term. The motion passed 5-0. Passed 10. NOTICE OF ADMINISTRATIVE ITEMS SINCE MARCH 1, 2022 Item No. 1: Plot Plan Review 21-045; Establishment Of A Homestay In An Existing Single Family Residence; Location – 129 Allen Street; Applicant – Jobie Brigham After making the findings specified in Section 16.16.080 of the Municipal Code, the Community Development Director approved the above referenced project for the establishment of a Homestay in the Multi-Family (MF) zoning district. The deadline to appeal this project is at 5:00 pm on May 4, 2022. Item No. 2: Plot Plan Review 22-004; Establishment Of A Homestay In An Existing Single Family Residence; Location – 1503 El Camino Real; Applicant – Robert Hudson After making the findings specified in Section 16.16.080 of the Municipal Code, the Community Development Director approved the above referenced project for the establishment of a Homestay in the Office Mixed-Use (OMU) zoning district. The deadline to appeal this project is at 5:00 pm on May 4, 2022. Page 276 of 386 4 Item No. 3: Plot Plan Review 22-006; Establishment Of A Homestay In An Existing Single Family Residence; Location – 528 Ide Street; Applicant – Samantha Engleman After making the findings specified in Section 16.16.080 of the Municipal Code, the Community Development Director approved the above referenced project for the establishment of a Homestay in the Single Family (SF) zoning district. The deadline to appeal this project is at 5:00 pm on May 4, 2022. Item No. 4: Plot Plan Review 22-008; Establishment Of A Medical Services Business In An Existing Commercial Tennant Space; Location – 152 West Branch Street; Applicant – Patrick Voegele After making the findings specified in Section 16.16.080 of the Municipal Code, the Community Development Director approved the above referenced project for the establishment of a medical services business in the Village Mixed USe (WMU) zoning district. The deadline to appeal this project is at 5:00 pm on May 4, 2022. Item No. 5: Architectural Review 22-002; Exterior Alterations To An Existing Residential Structure; Location – 251 Larchmont Drive; Applicant – Kathy Sherman After making the findings specified in Section 16.16.130 of the Municipal Code, the Community Development Director approved the above referenced project for the exterior alterations to an existing residential structure in the Single Family (SF) zoning district. The deadline to appeal this project is at 5:00 pm on May 4, 2022. Item No. 6: Temporary Use Permit 22-002; South County Historical Society Annual Rummage Sale On Saturday April 2nd And Sunday April 3rd, 2022; Location – 128 Bridge Street; Applicant – Jan Scott After making the findings specified in Section 16.16.090 of the Municipal Code, the Community Development Director approved the above referenced project for the South County Historical Society to conduct their annual rummage sale on Saturday, April 2nd, 2022 from 7:00am until 2:00pm and Sunday, April 3rd, 2022 from 11:00am until 2:00pm. The deadline to appeal this project is at 5:00 pm on May 4, 2022. Item No. 7: Plot Plan Review 22-009; Establishment Of A Vacation Rental In An Existing Single Family Residence; Location – 1565 Blackberry Avenue; Applicant – Linda Drummy After making the findings specified in Section 16.16.080 of the Municipal Code, the Community Development Director approved the above referenced project for the establishment of a Vacation Rental in the Single Family (SF) zoning district. The deadline to appeal this project is at 5:00 pm on May 4, 2022. Item No. 8: Plot Plan Review 22-007; Establishment Of A Vacation Rental In An Existing Single Family Residence; Location – 506 Ide Street; Applicant – Samantha Engleman After making the findings specified in Section 16.16.080 of the Municipal Code, the Community Development Director approved the above referenced project for the establishment of a Vacation Rental in the Single Family (SF) zoning district. The deadline to appeal this project is at 5:00 pm on May 4, 2022. Item No. 9: Plot Plan Review 22-011; Establishment Of A Vacation Rental In An Existing Single Family Residence; Location – 520 South Elm Street; Applicant – Luis Quintana Page 277 of 386 5 After making the findings specified in Section 16.16.080 of the Municipal Code, the Community Development Director approved the above referenced project for the establishment of a Vacation Rental in the Single Family (SF) zoning district. The deadline to appeal this project is at 5:00 pm on May 4, 2022. Item No. 10: Architectural Review 22-001; Construction Of A New 3,667 Square Foot Single Family Residence And Attached 891 Square Foot Garages; Location – 331 Rodeo Court; Applicant – Chris Mccall; Representative – Jennifer Martin, Jm Architecture And Design After making the findings specified in Section 16.16.130 of the Municipal Code, the Community Development Director approved the above referenced project for the exterior alterations to an existing residential structure in the Planned Development – 1.3 (PD-1.3) zoning district. The deadline to appeal this project is at 5:00 pm on May 4, 2022. 11. COMMISSION COMMUNICATIONS Commissioner Maraviglia thanked Commissioner Guthrie for nominating her to serve as the Commission's Vice Chair. 12. STAFF COMMUNICATIONS Director Pedrotti informed the Commission that the City Council directed staff to bring back a permanent parklet program, that the project at 211 E Branch Street had received final architectural approval from the ARC and provided an update on the Brisco project. 13. ADJOURNMENT The Meeting adjourned at 9:14pm. _________________________ Patrick Holub Assistant Planner _________________________ Glenn Martin, Chair Page 278 of 386 RESOLUTION NO. 22-2361 A RESOLUTION OF THE PLANNING COMMISSION OF THE CITY OF ARROYO GRANDE RECOMMENDING THE CITY COUNCIL ADOPT AN ORDINANCE APPROVING DEVELOPMENT CODE AMENDMENT NO. 21-002 TO IMPLEMENT SENATE BILL 9; LOCATION- CITYWIDE WHEREAS, on September 16, 2021, the Governor signed into law Senate Bill (SB) 9 that, among other things, added Government Code Sections 65852.21 and 66411.7 and amended Government Code Section 66452.6 allowing additional housing units on properties within residential zoning districts; and WHEREAS, SB 9 went into effect on January 1, 2022; and WHEREAS, SB 9 allows a local jurisdiction to adopt an ordinance that provides ministerial approval of 1) no more than two housing units on a lot within a single-family residential zoning district; and 2) urban lot splits; and WHEREAS, SB 9 allows a local jurisdiction to adopt objective design, development, and subdivision standards for up to two housing units and urban lot splits; and WHEREAS, the proposed amendments to the Arroyo Grande Municipal Code (AGMC) implement the requirements of SB 9 and add local regulations that within the scope of the State law; and WHEREAS, the City of Arroyo Grande has duly initiated amendments to AGMC; and WHEREAS, the Planning Commission of the City of Arroyo Grande, after giving notices thereof as required by law, held a public hearing on May 3, 2022 concerning this code amendment and carefully considered all pertinent testimony and the staff report offered in the case as presented; and NOW, THEREFORE, BE IT RESOLVED that the Planning Commission of the City of Arroyo Grande hereby recommends the City Council adopt Ordinances approving Development Code Amendment 21-002 amending Title 16 of the Arroyo Grande Municipal Code as attached hereto as Exhibit “A” and incorporated herein by this reference. On motion by Commissioner Martin seconded by Commissioner Schiro, and by the following roll call vote, to wit: AYES: Martin, Schiro, Maraviglia, Buchanan NOES: Guthrie ABSENT: None ATTACHMENT 5 Page 279 of 386 RESOLUTION NO.22-2361 PAGE 2 the foregoing Resolution was adopted this 3rd day of May, 2022. Page 280 of 386 RESOLUTION NO.22-2361 PAGE 3 _______________________________ GLENN MARTIN CHAIR ATTEST: _______________________________ PATRICK HOLUB SECRETARY TO THE COMMISSION AS TO CONTENT: _______________________________ BRIAN PEDROTTI COMMUNITY DEVELOPMENT DIRECTOR Page 281 of 386 RESOLUTION NO.22-2361 PAGE 4 EXHIBIT ‘A’ WHEREAS, on September 16, 2021, the Governor signed into law Senate Bill (SB) 9 that, among other things, added Government Code Sections 65852.21 and 66411.7 and amended Government Code Section 66452.6 allowing additional housing units on properties within residential zoning districts; and WHEREAS, SB 9 went into effect on January 1, 2022; and WHEREAS, SB 9 allows a local jurisdiction to adopt an ordinance that provides ministerial approval of 1) no more than two housing units on a lot within a single-family residential zoning district; and 2) urban lot splits; and WHEREAS, SB 9 allows a local jurisdiction to adopt objective design, development, and subdivision standards for up to two housing units and urban lot splits; and WHEREAS, the proposed amendments to the Arroyo Grande Municipal Code (AGMC) implement the requirements of SB 9 and add local regulations that within the scope of the State law; and WHEREAS, the City of Arroyo Grande has duly initiated amendments to AGMC; and WHEREAS, the Planning Commission of the City of Arroyo Grande, after giving notices thereof as required by law, held a public hearing on May 3, 2022 concerning this code amendment and carefully considered all pertinent testimony and the staff report offered in the case as presented; and WHEREAS, on May 3, 2022, the Planning Commission of the Arroyo Grande recommended to the City Council adding Sections 16.20.180 and 16.32.060 to the Arroyo Grande Municipal Code; and WHEREAS , the City Council of the City of Arroyo Grande has, after giving notice thereof as required by law, held a public hearing on __________, 2022, concerning the addition of AGMC Sections 16.20.180 and 16.32.060; and WHEREAS, the City Council of the City of Arroyo Grande, at its regularly scheduled public meeting on __________, 2022 introduced this Ordinance to add Section 16.20.180 to Title 16, Chapter 20 and 16.32.060 to Title 16, Chapter 32 of the Arroyo Grande Municipal Code; and WHEREAS, the City Council has carefully considered all pertinent testimony and the staff report, its attachments and all supporting materials referenced therein or offered in the matter as presented at the public hearing. Page 282 of 386 RESOLUTION NO.22-2361 PAGE 5 NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF ARROYO GRANDE DOES ORDAIN AS FOLLOWS: SECTION 1. The above recitals and findings are true and correct and are incorporated herein by this reference. SECTION 2. Section 16.20.180 is hereby added to Title 16, Chapter 20 of the Arroyo Grande Municipal Code to read as follows: Section 16.20.180 Parcel Maps for Urban Lot Spits A. Purpose and Scope 1. This Section implements Government Code section 66411.7 to provide an owner of property in the Single Family zoning district an additional method to subdivide the parcel for the purpose of housing development. 2. Urban lot split means the subdivision of an existing legal parcel in a single-family zoning district to create no more than two new parcels. B. Application and Approval 1. A parcel map for an urban lot split may not be approved except in conjunction with a concurrently submitted application for building permits for two-unit residential development pursuant to Section 16.32.060. Development on the resulting parcels is limited to the residential development approved in the concurrently submitted building permit applications. 2. A parcel map for an urban lot split must be prepared by a registered civil engineer or licensed land surveyor in accordance with Government Code sections 66444 – 66450 and this Section, and submitted for approval to the City Engineer. A fee in an amount established by City Council resolution must be paid concurrently with the submission of the parcel map. 3. The City Engineer is the approval authority for parcel maps under this Section. The City Engineer shall approve a parcel map for an urban lot split if the Engineer determines that it meets all of the requirements of this Section. C. The following supplemental information is required to be submitted with a parcel map to establish compliance with the construction plans and all provisions of this Code and applicable State law: 1. A map of appropriate size and to scale showing all of the following: a. Total area (in acreage and square feet) of each proposed lot. b. Location and dimensions of existing and proposed property lines; c. Zoning District; Page 283 of 386 RESOLUTION NO.22-2361 PAGE 6 d. The location and use of all existing and proposed structures; e. All required zoning setbacks for the existing and proposed lots; f. The location of all existing water, sewer, electricity, storm drain, or gas service lines, pipes, systems, or easements; g. The location of all proposed new water, sewer, storm drain, lines, pipes, or systems; h. The location of any proposed easements for access or public utilities to serve a lot created by the subdivision; i. The location of any existing trees larger than four inches in diameter measured four feet six inches above the base and any such trees proposed for removal; j. Any area of the parcel that has a slope of 25% or greater by way of contours at 5-foot intervals; l. Name and dimensions, including right-of-way and improved area, of public and private streets or public alleys adjoining the parcel; m. Curb, gutter, sidewalk, parkway, and street trees: type, location, and dimensions; n. Location of existing or proposed driveway dimensions, materials, and slope (including cross slope); and o. Location of existing or proposed pedestrian pathway access to the public right of way. 2. A statement of the owner, signed under penalty of perjury under the laws of California, that: a. The proposed urban lot split would not require or authorize demolition or alteration of any of the following types of housing: (i) Housing that is subject to a recorded covenant, ordinance, or law that restricts rents to levels affordable to persons and families of moderate, low, or very low income. (ii) Housing that is subject to any form of rent or price control through a public entity’s valid exercise of its police power. (iii) A parcel or parcels on which an owner of residential real property has exercised the owner’s rights under Section 12.75 (commencing with Section 7060) of Division 7 of Title 1 of the Government Code to withdraw Page 284 of 386 RESOLUTION NO.22-2361 PAGE 7 accommodations from rent or lease within 15 years before the date that the development proponent submits an application. (iv) Housing that has been occupied by a tenant in the last three years. b. The parcel has not been established through prior exercise of an urban lot split under this Section; c. Neither the owner of the parcel being subdivided nor any person acting in concert with the owner has previously subdivided an adjacent parcel under the provisions of this Section. d. The owner intends to occupy one of the housing units located on a lot created by the parcel map as their principal residence for a minimum of three years from the date of the recording of the parcel map. e. Rental terms of any unit created by the subdivision shall not be less than 31 consecutive days, nor shall rental terms allow termination of the tenancy prior to the expiration of at least one thirty-one (31) day period of occupancy by the same tenant. f. The uses allowed on a lot created by the parcel map shall be limited to residential uses. D. Design and Improvement Requirements 1. A parcel map may subdivide an existing legal parcel to create no more than two parcels of approximately equal lot area. One parcel shall not be smaller than 40 percent of the lot area of the original parcel proposed for subdivision and neither parcel shall be smaller than 1,200 square feet.: 2. Each parcel must be served by a separate water service meter and a separate sewer connection. 3. Each parcel shall either drain a developed drainage easement or in accordance with the City’s Standard Specification and Engineering Standards. 4. Rights-of-way as required for access along all natural watercourses as necessary for flood control, maintenance, and improvement shall be dedicated. 5. The parcel must satisfy the requirements of Government Code section 66411.7(a). 6. A lot line shall not bisect or be located within 4 feet of any of the following: a. A dwelling that has been occupied by a tenant at any time during the three years before the date of the parcel map; Page 285 of 386 RESOLUTION NO.22-2361 PAGE 8 b. A structure designated as a historic structure or a candidate structure under any City ordinance or included on the State Historic Resources Inventory; c. A dwelling that is subject to a recorded covenant, ordinance, or law that restricts rents to levels affordable to persons and families of moderate, low, or very low income. d. Existing easements if the resulting lot would create a developable area that would interfere with the use of the easement for its intended purpose. 7. The location and orientation of new lot lines shall meet the following standards: a. Front lot lines shall conform to the minimum public street frontage requirements of the Development Code; a flag lot, or a lot with a narrow projecting strip of land extending along a street, is not permitted. b. Each parcel shall have approximately equal lot width and lot depth, consistent with the minimum lot sizes described in subsection D, above. Lot depth shall be measured at the midpoint of the front lot line. Lot width shall be measured by a line connecting two points on opposite interior lot lines that will result in a line parallel to the front lot line. c. New lot lines must be straight lines, unless there is a conflict with existing improvements or the natural environment in which case the line may be not be straight but shall follow the appropriate course. d. Lot lines facing a street shall generally be parallel to the street. Unless the minimum public street frontage is provided, the lot line dividing the two parcels must be parallel to and not less than 50 feet from an existing front lot line, or outside the front half of the existing lot, whichever is greater. e. Interior lot lines not facing the street shall be at right angles perpendicular to the street on straight streets, or radial to the street on curved streets. f. Lot lines shall be located within appropriate physical locations such as the top of creek banks, at appropriate topographical changes (top or bottom of slopes etc.) or at locations which clearly separate existing and proposed land uses. g. Lot lines shall be contiguous with existing zoning boundaries. h. The placement of lot lines shall not result in an accessory building or accessory use on a lot without a main building or primary use on the same lot, as defined in the Development Code. Page 286 of 386 RESOLUTION NO.22-2361 PAGE 9 i. Lot lines shall not render an existing structure as nonconforming in any respect (e.g., setbacks, Floor Area Ratio, parking), nor increase the nonconformity of an existing nonconforming structure. E. Access Standards 1. Each lot shall front upon or have access to a public street, or be served by an access easement serving no more than two lots. Access shall be provided in compliance with these standards: a. Vehicle access easements serving a maximum of two units shall meet the following standards: i. Easement width shall be a minimum of 10 feet and a maximum of 16 feet, unless a wider driveway is required by the California Fire Code due to distance of the structure from the easement, or as needed to meet the driveway and parking standards in the City’s standards. ii. The minimum length for a vehicle access easement is 20 feet. No maximum easement length shall be set. If easement length is more than 75 feet, a vehicle turnaround shall be provided. iii. No residential structure shall be closer than 3 feet to the easement. b. Vehicle access easements serving three to four units shall meet the following standards: i. Easement width shall be a minimum of 20 feet. ii. The minimum length for a vehicle access easement is 20 feet. No maximum easement length shall be set. If easement length is more than 75 feet, a vehicle turnaround shall be provided. iii. No residential structure shall be closer than 5 feet to the easement. c. Where a lot does not abut a public street, and where no automobile parking spaces are required or proposed for the residential development, a vehicle access easement is not required. An easement providing pedestrian access to a street from each lot shall be provided meeting the following standards: i. Easement width shall be a minimum of five feet; ii. Pedestrian access easements shall not exceed 200 feet in length. 2. Vehicle access easements shall not be located closer than 25 feet to an intersection. Page 287 of 386 RESOLUTION NO.22-2361 PAGE 10 3. Access and provisions for fire protection consistent with the California Fire Code shall be provided for all structures served by an access easement. 4. Surfacing of easements, pedestrian walkways required within easements, and turnaround dimensions shall meet the requirements of the California Fire Code, the City’s Design Standards, and the parking design standards in the Development Code. 5. Lots taking access by an easement must record a shared maintenance agreement for the driveway. The agreement shall be recorded prior to or concurrently with the final map. F. Map Requirements 1. The content and form of a parcel map shall meet all the requirements of Government Code sections 66444 – 66450. 2. The parcel map shall show all easements for public utilities necessary to serve each lot created by the subdivision. 3. The parcel map shall show all easements necessary to provide each lot with access to the public or private street or alley abutting the original parcel. 4. The parcel map shall contain a declaration that: a. Each lot created by the parcel map shall be used solely for residential dwellings; b. That rental of any dwelling unit on a lot created by the parcel map shall not be less than 31 consecutive days, nor shall rental terms allow termination of the tenancy prior to the expiration of at least one 31-day period occupancy by the same tenant. G. Concurrent Processing With Other Ministerial Permits for Housing Development 1. No development, including grading or vegetation removal, shall commence on either lot, concurrent or subsequent to an urban lot split, unless it is approved with a valid building permit for the construction of a housing development and complies with all the objective development and design standards outlined for two-unit residential development or accessory dwelling units in this Code, or any other adopted objective design standards in effect at the time a complete application is submitted. 2. A building permit for development on an urban lot split cannot be issued until the parcel map is recorded. 3. The City Engineer shall deny an urban lot split if the building official has made a written finding, based upon a preponderance of the evidence, that the proposed Page 288 of 386 RESOLUTION NO.22-2361 PAGE 11 housing development project would have a specific, adverse impact, as defined and determined in paragraph (2) of subdivision (d) of Section 65589.5 of the Government Code, upon public health and safety or the physical environment and for which there is no feasible method to satisfactorily mitigate or avoid the specific, adverse impact. H. Prohibition of Further Subdivision A lot created by a parcel map under this Section shall not be further subdivided. SECTION 3. Section 16.32.060 is hereby added to Title 16, Chapter 32 of the Arroyo Grande Municipal Code to read as follows: Section 16.32.060 Two-Unit Residential Development A. Purpose and Intent. 1. It is the intent of these regulations to provide opportunities for two units on one legal parcel, consistent with state law and local regulations. In the event of an inconsistency between this Section and Government Code Section 65852.21, Government Code Section 65852.21 shall prevail. Provided that Government Code Sections 65852.21 or 66411.7 are not repealed, qualifying two-unit residential development in the single family zoning districts shall be located, developed, and used in compliance with this Section. 2. In accordance with Government Code Section 65852.21(a)(2), two-unit residential development shall not be permitted under this Section in any of the following circumstances: a. Parcels located in: i. Wetlands; ii. Either prime farmland or farmland of statewide importance, as defined pursuant to United States Department of Agriculture land inventory and monitoring criteria, as modified for California, and designated on the maps prepared by the Farmland Mapping and Monitoring Program of the Department of Conservation; iii. Very high fire severity zones, except if the site has adopted fire hazard mitigation measures pursuant to existing building standards or state fire mitigation measures applicable to the development; iv. A hazardous waste site, unless the site has been cleared by the State for residential use; Page 289 of 386 RESOLUTION NO.22-2361 PAGE 12 v. Delineated earthquake fault zones, unless the development complies with applicable seismic protection building code standards; vi. Special flood hazard areas (100-year flood zones), unless the site has been subject to a FEMA Letter of Map Revision issued to the City or the site meets FEMA requirement necessary to meet minimum flood plain management criteria of the National Flood Insurance Program; vii. A regulatory flood way identified in a FEMA map, unless the development has received a no-rise certification; viii. Lands identified for conservation in an adopted natural resource protection plan, habitat for protected species, or under a conservation easement; and ix. A historic district or property designated pursuant to a local ordinance or included on the State Historic Resources Inventory. b. The proposed development would require demolition or alteration of any of the following types of housing: i. Housing that is subject to a recorded covenant, ordinance, or law that restricts rents to moderate, low, or very low incomes; ii. A unit that has been occupied by a tenant within the past three years; and iii. A rent controlled unit. c. The proposed development would result in the demolition of more than 25 percent of the existing exterior structural walls, unless the site has not been occupied by a tenant in the last three years. d. The building official finds that the proposed development would have a specific, adverse impact on public health and safety or the physical environment that cannot be feasibly mitigated or avoided, as defined and determined in paragraph (2) of subdivision (d) of Government Code Section 65589.5. B. Restrictions. A qualifying two-unit residential project shall be subject to the following restrictions: 1. The development and use of the dwelling units shall only be valid and permitted based on the terms established in the Section. Page 290 of 386 RESOLUTION NO.22-2361 PAGE 13 2. The dwelling unit(s) shall not be rented for a period of less than thirty-one (31) consecutive days, nor shall rental terms allow termination of the tenancy prior to the expiration of at least one thirty-one (31) day period of occupancy by the same tenants. C. Unit Configurations The new unit in a two-residential unit development may be permitted in the following configurations. For the purpose of this section, “unit” means any dwelling unit, including, but not limited to, two-unit residential development, additional residential unit, primary residential unit, accessory dwelling unit, or junior accessory dwelling unit. 1. One new unit incorporated entirely within an existing residential unit. 2. One new unit incorporated entirely within an existing accessory building, including garages. 3. One new unit attached to and increasing the size of an existing residential unit or an existing accessory building. 4. One new unit detached from and located on the same lot as an existing unit. A unit that is attached to another detached accessory building, but not another residential unit, or is attached by a breezeway or porch, is considered detached. 5. Two newly constructed attached units (duplex) or two detached residential units on a vacant lot. 6. A two-unit residential development in any of the configurations described above may be added to a newly created lot concurrently with an approval for a parcel map for an urban lot split, pursuant to AGMC Section 16.20.180, Parcel Maps for Urban Lot Splits. 7. Up to two accessory dwelling units pursuant to AGMC Section 16.52.150, Accessory Dwelling Units, may be proposed in addition to the two units constructed pursuant to this Section. Only one accessory dwelling unit may be added to a lot created through an Urban Lot Split. D. Parking. 1. No parking shall be required for dwelling units developed pursuant to this Section. E. Rear and Side Setbacks. Page 291 of 386 RESOLUTION NO.22-2361 PAGE 14 1. No setback shall be applied to existing structures or structures constructed in the same location and to the same dimensions as an existing structure. 2. For projects not meeting the requirements of subsection 1 above, a minimum four-foot setback shall be provided from side and rear lot lines. F. Objective Zoning and Design Standards for Two-Unit Residential Developments. Government Code Section 65852.21 permits the imposition of objective zoning standards and objective design standards. Accordingly, the follow objective standards shall apply to two-unit residential development projects: 1. Massing and Articulation a. Maximum Unit Size: The total gross floor area of the unit(s), excluding garages, shall not exceed the floor-area ratios maximums found in Section 16.32.050 of this Title. These maximums, however, shall not preclude the construction of at least two (2) 1,200 square foot units per lot. b. Building Separation: detached dwelling units shall have a minimum of 10 feet of separation whether the units are on one lot or adjacent lots. c. Height: The maximum height of a unit developed pursuant to this Section shall be 30-feet. d. Rooftop decks shall be permitted in accordance with Section 16.48.180 of this Title. 2. Colors and Materials a. The primary cladding shall be stone, brick, fiber cement, composite wood or stone, wood, stucco, or other cementitious material. Plywood, such as T1-11 siding, is prohibited. b. Color schemes shall consist of one primary color and at least one secondary color, at a minimum. The roof color shall not be considered a color for purposes of this standard. 3. Parking and Circulation a. When parking is proposed, the parking areas shall not be located between a structure and a public sidewalk within the front setback, with Page 292 of 386 RESOLUTION NO.22-2361 PAGE 15 the exception of permitted driveways. When parking areas are located in the front yard, outside of the front setback, a landscape buffer of at least 10 feet between the sidewalk and parking area shall be provided. b. All parking areas serving more than one unit shall be internally connected and shall use shared driveways. 4. Utility and Service Areas a. All new dwelling units must connect to City utilities in accordance with Section 13.12.060 of Title 13. b. Areas for the storage of trash, recycling, and green waste receptacles shall not be visible from the public right of way. c. All mechanical equipment shall be either screened or hidden from view from the public street. Ministerial Approval of Two-Unit Residential Development Projects. 1. The Community Development Director or his/her designee shall ministerially review and approve a two-unit residential development application and shall not require a public hearing, provided that the submitted application is complete and demonstrates that the two-unit residential development project complies with the requirements contained in this Title 16 and qualifies under Government Code Section 65852.21(a). 2. In addition to obtaining planning approval for the two-unit residential development project, the applicant shall be required to obtain a building permit, and other applicable construction permit requirements prior to the construction of the dwelling units. SECTION 4. The adoption of this Ordinance is not considered a project, therefore is statutorily exempt from the requirements of California Environmental Quality Act (CEQA) pursuant to Division 13 (commencing with Section 21000) of the Public Resources Code. The City Clerk shall file a Notice of Exemption from CEQA review in accordance with CEQA Guidelines. SECTION 5. A summary of this Ordinance shall be published in a newspaper published and circulated in the City of Arroyo Grande at least five (5) days prior to the City Council meeting at which the proposed Ordinance is to be adopted. A certified copy of the full text of the proposed Ordinance shall be posted in the office of the City Clerk. Within fifteen (15) days after adoption of the Ordinance, the summary with the names of those City Council members voting for and against the Ordinance shall be published again, and the City Clerk shall post a certified copy of the full text of such adopted Ordinance. Page 293 of 386 RESOLUTION NO.22-2361 PAGE 16 SECTION 6. This Ordinance shall take effect and be in full force and effect thirty (30) days after its passage. SECTION 7. If any section, subsection, sentence, clause, or phrase of this Ordinance is for any reason held to be invalid or unconstitutional by a decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this Ordinance. The City Council hereby declares that it would have passed this Ordinance and each and every section, subsection, sentence, clause, or phrase not declared invalid or unconstitutional without regard to whether any portion of the ordinance would be subsequently declared invalid or unconstitutional. On motion by Council Member ______, seconded by Council Member _______, and by the following roll call vote to wit: AYES: NOES: ABSENT: the foregoing Ordinance was adopted this ____ day of _______, 2022. Page 294 of 386 RESOLUTION NO.22-2361 PAGE 17 ___________________________________ CARON RAY RUSSOM, MAYOR ATTEST: ___________________________________ JESSICA MATSON, CITY CLERK APPROVED AS TO CONTENT: ________________________________ WHITNEY McDONALD, CITY MANAGER APPROVED AS TO FORM: ___________________________________ TIMOTHY J. CARMEL, CITY ATTORNEY Page 295 of 386 California Department of Housing and Community Development SB 9 Fact Sheet On the Implementation of Senate Bill 9 (Chapter 162, Statutes of 2021) Housing Policy Development Division March 2022 ATTACHMENT 6 Page 296 of 386 California Department of Housing and Community Development – SB 9 Fact Sheet 1 This Fact Sheet is for informational purposes only and is not intended to implement or interpret SB 9. HCD does not have authority to enforce SB 9, although violations of SB 9 may concurrently violate other housing laws where HCD does have enforcement authority, including but not limited to the laws addressed in this document. As local jurisdictions implement SB 9, including adopting local ordinances, it is important to keep these and other housing laws in mind. The Attorney General may also take independent action to enforce SB 9. For a full list of statutes over which HCD has enforcement authority, visit HCD’s Accountability and Enforcement webpage. Executive Summary of SB 9 Senate Bill (SB) 9 (Chapter 162, Statutes of 2021) requires ministerial approval of a housing development with no more than two primary units in a single-family zone, the subdivision of a parcel in a single-family zone into two parcels, or both. SB 9 facilitates the creation of up to four housing units in the lot area typically used for one single-family home. SB 9 contains eligibility criteria addressing environmental site constraints (e.g., wetlands, wildfire risk, etc.), anti-displacement measures for renters and low-income households, and the protection of historic structures and districts. Key provisions of the law require a local agency to modify or eliminate objective development standards on a project-by-project basis if they would prevent an otherwise eligible lot from being split or prevent the construction of up to two units at least 800 square feet in size. For the purposes of this document, the terms “unit,” “housing unit,” “residential unit,” and “housing development” mean primary unit(s) unless specifically identified as an accessory dwelling unit (ADU) or junior ADU or otherwise defined. Single-Family Residential Zones Only (Reference: Gov. Code, §§ 65852.21, subd. (a); 66411.7 subd. (a)(3)(A)) The parcel that will contain the proposed housing development or that will be subject to the lot split must be located in a single-family residential zone. Parcels located in multi- family residential, commercial, agricultural, mixed-use zones, etc., are not subject to SB 9 mandates even if they allow single-family residential uses as a permitted use. While some zones are readily identifiable as single-family residential zones (e.g., R-1 “Single- Family Residential”), others may not be so obvious. Some local agencies have multiple single-family zones with subtle distinctions between them relating to minimum lot sizes or allowable uses. In communities where there may be more than one single-family residential zone, the local agency should carefully review the zone district descriptions in the zoning code and the land use designation descriptions in the Land Use Element of the General Plan. This review will enable the local agency to identify zones whose primary purpose is single-family residential uses and which are therefore subject to SB 9. Considerations such as minimum lot sizes, natural features such as hillsides, or the permissibility of keeping horses should not factor into the determination. Page 297 of 386 California Department of Housing and Community Development – SB 9 Fact Sheet 2 Residential Uses Only (Reference: Gov. Code, §§ 65852.21, subd. (a)) SB 9 concerns only proposed housing developments containing no more than two residential units (i.e., one or two). The law does not otherwise change the allowable land uses in the local agency’s single-family residential zone(s). For example, if the local agency’s single-family zone(s) does not currently allow commercial uses such as hotels or restaurants, SB 9 would not allow such uses. Ministerial Review (Reference: Gov. Code, §§ 65852.21, subd. (a); 66411.7, subds. (a), (b)(1)) An application made under SB 9 must be considered ministerially, without discretionary review or a hearing. Ministerial review means a process for development approval involving no personal judgment by the public official as to the wisdom of carrying out the project. The public official merely ensures that the proposed development meets all the applicable objective standards for the proposed action but uses no special discretion or judgment in reaching a decision. A ministerial review is nearly always a “staff-level review.” This means that a staff person at the local agency reviews the application, often using a checklist, and compares the application materials (e.g., site plan, project description, etc.) with the objective development standards, objective subdivision standards, and objective design standards. Objective Standards (Reference: Gov. Code, §§ 65852.21, subd. (b); 66411.7, subd. (c)) The local agency may apply objective development standards (e.g., front setbacks and heights), objective subdivision standards (e.g., minimum lot depths), and objective design standards (e.g., roof pitch, eave projections, façade materials, etc.) as long as they would not physically preclude either of the following: Up to Two Primary Units. The local agency must allow up to two primary units (i.e., one or two) on the subject parcel or, in the case of a lot split, up to two primary units on each of the resulting parcels. Units at least 800 square feet in size. The local agency must allow each primary unit to be at least 800 square feet in size. The terms “objective zoning standards,” “objective subdivision standards,” and “objective design review standards” mean standards that involve no personal or subjective judgment by a public official and are uniformly verifiable by reference to an external and uniform benchmark or criterion available and knowable by both the development applicant or proponent and the public official prior to submittal. Any objective standard that would physically preclude either or both of the two objectives noted above must be modified or Page 298 of 386 California Department of Housing and Community Development – SB 9 Fact Sheet 3 waived by the local agency in order to facilitate the development of the project, with the following two exceptions: Setbacks for Existing Structures. The local agency may not require a setback for an existing structure or for a structure constructed in the same location and to the same dimensions as an existing structure (i.e., a building reconstructed on the same footprint). Four-Foot Side and Rear Setbacks. SB 9 establishes an across-the-board maximum four-foot side and rear setbacks. The local agency may choose to apply a lesser setback (e.g., 0-4 feet), but it cannot apply a setback greater than four feet. The local agency cannot apply existing side and rear setbacks applicable in the single-family residential zone(s). Additionally, the four-foot side and rear setback standards are not subject to modification. (Gov. Code, §§ 65852.21, subd. (b)(2)(B); 66411.7, subdivision (c)(3).) One-Unit Development (Reference: Gov. Code, §§ 65852.21, subd. (a); 65852.21, subd. (b)(2)(A)) SB 9 requires the ministerial approval of either one or two residential units. Government Code section 65852.21 indicates that the development of just one single-family home was indeed contemplated and expected. For example, the terms “no more than two residential units” and “up to two units” appear in the first line of the housing development-related portion of SB 9 (Gov. Code, § 65852.21, subd. (a)) and in the line obligating local agencies to modify development standards to facilitate a housing development. (Gov. Code, § 65852.21, subd. (b)(2)(A).) Findings of Denial (Reference: Gov. Code, §§ 65852.21, subd. (d); 66411.7, subd. (d)) SB 9 establishes a high threshold for the denial of a proposed housing development or lot split. Specifically, a local agency’s building official must make a written finding, based upon a preponderance of the evidence, that the proposed housing development would have a specific, adverse impact, as defined in Government Code section 65589.5, subdivision (d)(2), upon public health and safety or the physical environment and for which there is no feasible method to satisfactorily mitigate or avoid the specific, adverse impact. “Specific, adverse impact” means a significant, quantifiable, direct, and unavoidable impact, based on objective, identified written public health or safety standards, policies, or conditions as they existed on the date the application was deemed complete. (Gov. Code, § 65589.5, subd. (d)(2).) Page 299 of 386 California Department of Housing and Community Development – SB 9 Fact Sheet 4 Environmental Site Constraints (Reference: Gov. Code, §§ 65852.21, subd. (a)(2) and (a)(6); 66411.7, subd. (a)(3)(C) and (a)(3)(E)) A proposed housing development or lot split is not eligible under SB 9 if the parcel contains any of the site conditions listed in Government Code section 65913.4, subdivision (a)(6)(B-K). Examples of conditions that may disqualify a project from using SB 9 include the presence of farmland, wetlands, fire hazard areas, earthquake hazard areas, flood risk areas, conservation areas, wildlife habitat areas, or conservation easements. SB 9 incorporates by reference these environmental site constraint categories that were established with the passing of the Streamlined Ministerial Approval Process (SB 35, Chapter 366, Statutes of 2017). Local agencies may consult HCD’s Streamlined Ministerial Approval Process Guidelines for additional detail on how to interpret these environmental site constraints. Additionally, a project is not eligible under SB 9 if it is located in a historic district or property included on the State Historic Resources Inventory or within a site that is designated or listed as a city or county landmark or as a historic property or district pursuant to a city or county ordinance. California Environmental Quality Act (CEQA) Reference: Gov. Code, §§ 65852.21, subd. (j); 66411.7, subd. (n)) Because the approval of a qualifying project under SB 9 is deemed a ministerial action, CEQA does not apply to the decision to grant an application for a housing development or a lot split, or both. (Pub. Resources Code, § 21080, subd. (b)(1) [CEQA does not apply to ministerial actions]; CEQA Guidelines, § 15268.) For this reason, a local agency must not require an applicant to perform environmental impact analysis under CEQA for applications made under SB 9. Additionally, if a local agency chooses to adopt a local ordinance to implement SB 9 (instead of implementing the law directly from statute), the preparation and adoption of the ordinance is not considered a project under CEQA. In other words, the preparation and adoption of the ordinance is statutorily exempt from CEQA. Anti-Displacement Measures (Reference: Gov. Code, §§ 65852.21, subd. (a)(3); 66411.7, subd. (a)(3)(D)) A site is not eligible for a proposed housing development or lot split if the project would require demolition or alteration of any of the following types of housing: (1) housing that is subject to a recorded covenant, ordinance, or law that restricts rents to levels affordable to persons and families of moderate, low, or very low income; (2) housing that is subject to any form of rent or price control through a public entity’s valid exercise of its police power; or (3) housing that has been occupied by a tenant in the last three years. Page 300 of 386 California Department of Housing and Community Development – SB 9 Fact Sheet 5 Lot Split Requirements (Reference: Gov. Code, § 66411.7) SB 9 does not require a local agency to approve a parcel map that would result in the creation of more than two lots and more than two units on a lot resulting from a lot split under Government Code section 66411.7. A local agency may choose to allow more than two units, but it is not required to under the law. A parcel may only be subdivided once under Government Code section 66411.7. This provision prevents an applicant from pursuing multiple lot splits over time for the purpose of creating more than two lots. SB 9 also does not require a local agency to approve a lot split if an adjacent lot has been subject to a lot split in the past by the same property owner or a person working in concert with that same property owner. Accessory Dwelling Units (Reference: Gov. Code, §§ 65852.21, subd. (j); 66411.7, subd. (f)) SB 9 and ADU Law (Gov. Code, §§ 65852.2 and 65858.22) are complementary. The requirements of each can be implemented in ways that result in developments with both “SB 9 Units” and ADUs. However, specific provisions of SB 9 typically overlap with State ADU Law only to a limited extent on a relatively small number of topics. Treating the provisions of these two laws as identical or substantially similar may lead a local agency to implement the laws in an overly restrictive or otherwise inaccurate way. “Units” Defined. The three types of housing units that are described in SB 9 and related ADU Law are presented below to clarify which development scenarios are (and are not) made possible by SB 9. The definitions provided are intended to be read within the context of this document and for the narrow purpose of implementing SB 9. Primary Unit. A primary unit (also called a residential dwelling unit or residential unit) is typically a single-family residence or a residential unit within a multi-family residential development. A primary unit is distinct from an ADU or a Junior ADU. Examples of primary units include a single-family residence (i.e., one primary unit), a duplex (i.e., two primary units), a four-plex (i.e., four primary units), etc. Accessory Dwelling Unit. An ADU is an attached or a detached residential dwelling unit that provides complete independent living facilities for one or more persons and is located on a lot with a proposed or existing primary residence. It includes permanent provisions for living, sleeping, eating, cooking, and sanitation on the same parcel on which the single-family or multifamily dwelling is or will be situated. Junior Accessory Dwelling Unit. A Junior ADU is a unit that is no more than 500 square feet in size and contained entirely within a single-family residence. A Junior ADU may include separate sanitation facilities or may share sanitation facilities with the existing structure. Page 301 of 386 California Department of Housing and Community Development – SB 9 Fact Sheet 6 The terms “unit,” “housing unit,” “residential unit,” and “housing development” mean primary unit(s) unless specifically identified as an ADU or Junior ADU or otherwise defined. This distinction is critical to successfully implementing SB 9 because state law applies different requirements (and provides certain benefits) to ADUs and Junior ADUs that do not apply to primary units. Number of ADUs Allowed. ADUs can be combined with primary units in a variety of ways to achieve the maximum unit counts provided for under SB 9. SB 9 allows for up to four units to be built in the same lot area typically used for a single-family home. The calculation varies slightly depending on whether a lot split is involved, but the outcomes regarding total maximum unit counts are identical. Lot Split. When a lot split occurs, the local agency must allow up to two units on each lot resulting from the lot split. In this situation, all three unit types (i.e., primary unit, ADU, and Junior ADU) count toward this two-unit limit. For example, the limit could be reached on each lot by creating two primary units, or a primary unit and an ADU, or a primary unit and a Junior ADU. By building two units on each lot, the overall maximum of four units required under SB 9 is achieved. (Gov. Code, § 66411.7, subd. (j).) Note that the local agency may choose to allow more than two units per lot if desired. No Lot Split. When a lot split has not occurred, the lot is eligible to receive ADUs and/or Junior ADUs as it ordinarily would under ADU law. Unlike when a project is proposed following a lot split, the local agency must allow, in addition to one or two primary units under SB 9, ADUs and/or JADUs under ADU Law. It is beyond the scope of this document to identify every combination of primary units, ADUs, and Junior ADUs possible under SB 9 and ADU Law. However, in no case does SB 9 require a local agency to allow more than four units on a single lot, in any combination of primary units, ADUs, and Junior ADUs. See HCD’s ADU and JADU webpage for more information and resources. Relationship to Other State Housing Laws SB 9 is one housing law among many that have been adopted to encourage the production of homes across California. The following represent some, but not necessarily all, of the housing laws that intersect with SB 9 and that may be impacted as SB 9 is implemented locally. Housing Element Law. To utilize projections based on SB 9 toward a jurisdiction’s regional housing need allocation, the housing element must: 1) include a site-specific inventory of sites where SB 9 projections are being applied, 2) include a nonvacant sites analysis demonstrating the likelihood of redevelopment and that the existing use will not constitute an impediment for additional residential use, 3) identify any governmental constraints to the use of SB 9 in the creation of units (including land use controls, fees, Page 302 of 386 California Department of Housing and Community Development – SB 9 Fact Sheet 7 and other exactions, as well as locally adopted ordinances that impact the cost and supply of residential development), and 4) include programs and policies that establish zoning and development standards early in the planning period and implement incentives to encourage and facilitate development. The element should support this analysis with local information such as local developer or owner interest to utilize zoning and incentives established through SB 9. Learn more on HCD’s Housing Elements webpage. Housing Crisis Act of 2019. An affected city or county is limited in its ability to amend its general plan, specific plans, or zoning code in a way that would improperly reduce the intensity of residential uses. (Gov. Code, § 66300, subd. (b)(1)(A).) This limitation applies to residential uses in all zones, including single-family residential zones. “Reducing the intensity of land use” includes, but is not limited to, reductions to height, density, or floor area ratio, new or increased open space or lot size requirements, new or increased setback requirements, minimum frontage requirements, or maximum lot coverage limitations, or any other action that would individually or cumulatively reduce the site’s residential development capacity. (Gov. Code, § 66300, subd. (b)(1)(A).) A local agency should proceed with caution when adopting a local ordinance that would impose unique development standards on units proposed under SB 9 (but that would not apply to other developments). Any proposed modification to an existing development standard applicable in the single-family residential zone must demonstrate that it would not result in a reduction in the intensity of the use. HCD recommends that local agencies rely on the existing objective development, subdivision, and design standards of its single- family residential zone(s) to the extent possible. Learn more about Designated Jurisdictions Prohibited from Certain Zoning-Related Actions on HCD’s website. Housing Accountability Act. Protections contained in the Housing Accountability Act (HAA) and the Permit Streaming Act (PSA) apply to housing developments pursued under SB 9. (Gov. Code, §§ 65589.5; 65905.5; 65913.10; 65940 et seq.) The definition of “housing development project” includes projects that involve no discretionary approvals and projects that include a proposal to construct a single dwelling unit. (Gov. Code, § 65905.5, subd. (b)(3).) For additional information about the HAA and PSA, see HCD’s Housing Accountability Act Technical Assistance Advisory. Rental Inclusionary Housing. Government Code section 65850, subdivision (g), authorizes local agencies to adopt an inclusionary housing ordinance that includes residential rental units affordable to lower- and moderate-income households. In certain circumstances, HCD may request the submittal of an economic feasibility study to ensure the ordinance does not unduly constrain housing production. For additional information, see HCD’s Rental Inclusionary Housing Memorandum. Page 303 of 386 ATTACHMENT 7 San Luis Obispo County Important Farmland 2018 Source: California Department of Conservation Page 304 of 386 1 ACTION MINUTES MEETING OF THE ARCHITECTURAL REVIEW COMMITEE April 18, 2022, 2:30 p.m. Hybrid City Hall Conference Room/Virtual Zoom Meeting Committee Members Present: Jon Couch, Kristin Juette, Warren Hoag, Bruce Berlin Committee Members Absent: Lori Mainini Hall Staff Present: Community Development Director Brian Pedrotti, Associate Planner Andrew Perez, Assistant Planner Patrick Holub Given the recent increase in COVID-19 cases in San Luis Obispo County, and in compliance with Assembly Bill (AB) 361, which allows for a deviation of teleconference rules required by the Ralph M. Brown Act, this meeting was held by teleconference. _____________________________________________________________________ 1.CALL TO ORDER Chair Hoag called the meeting to order at 2:30 pm. 2.ROLL CALL Chair Hoag performed the roll call. Committee Member Hall was absent. 3.FLAG SALUTE Chair Hoag led the flag salute. 4.AGENDA REVIEW None. 5.COMMUNITY COMMENTS AND SUGGESTIONS Chair Hoag opened the public comment period. No public comment was received. 6.WRITTEN COMMUNICATIONS Chair Hoag acknowledged the two Supplemental Memos containing public comment for Item 8.b. 7.CONSENT AGENDA 7.a Approval of Minutes (PEREZ) This item was continued to the next Regular Meeting due to a lack of quorum of Committee Members that attended the March 21, 2022 Regular Meeting. ATTACHMENT 8 Page 305 of 386 3 8.b Review of Objective Design Standards for Projects Proposed Under Senate Bill 9 (SB 9) Committee Member Couch rejoined the meeting at 2:37 pm. Acting Planning Manager Perez presented the staff report, explained the legislation and what it permits. He summarized the objective design standards proposed by staff and the reasoning behind each of them. He also answered questions from the Committee related to where parking is permitted on residential properties. Chair Hoag opened public comment. Kevin Buchanan, Arroyo Grande Planning Commissioner, advocated for taller maximum heights and larger unit sizes. He also wanted to ensure that the standards do not discourage SB 9 development. Chair Hoag closed the public comment. The Committee was not supportive of a one sizes fits all approach to the maximum units size and felt that 1,200 square feet would be too restrictive for larger lots. The Committee suggested using a sliding scale based on lot size to determine the maximum allowable unit size. The Committee was in favor of a tiered approach to the maximum height limit depending on whether the unit was located in the setback of the underlying setback for the district. The Committee was not supportive of a prohibition of rooftop decks. The Committee found the color and material standards proposed too restrictive and do not allow for creativity. The Committee suggested revising the parking standards to specify that parking in a driveway is allowed and adding a landscape buffer requirement to maintain aesthetics and neighborhood character. Moved by Bruce Berlin Seconded by Kristin Juette Recommendation to the Planning Commission to recommend adoption of the objective design standards as revised by the ARC. AYES (4): Jon Couch, Kristin Juette, Warren Hoag, and Bruce Berlin ABSENT (1): Lori Mainini Hall Passed (4 to 0) 9.DISCUSSION ITEMS 9.a Election of Chair and Vice Chair Vice Chair Berlin nominated Chair Hoag to remain Chairperson for the next year. Committee Member Juette made a motion, seconded by Vice Chair Berlin, to serve as Chairperson until the first regular meeting in March 2023. The motion passed unanimously. Chair Hoag nominated Vice Chair Berlin to remain Vice Chair for the next year. Chair Hoag made a motion, seconded by Committee Member Juette, to serve as Vice Chair until the first regular meeting in March 2023. The motion passed unanimously. Page 306 of 386 Item 9.c. MEMORANDUM TO: City Council FROM: Nicole Valentine, Administrative Services Director SUBJECT: Consideration of 5-Year Review of Local Sales Tax DATE: May 24, 2022 SUMMARY OF ACTION: Conduct a public hearing to review and approve the continuation of the local sales tax. IMPACT ON FINANCIAL AND PERSONNEL RESOURCES: Total revenue received from FY 2016-17 to FY 2020-21 was $11.8 million and total expenditures were $8.8 million. Revenue from the local sales tax in FY 2021 -22 is projected to be approximately $2.8 million and is anticipated to grow modestly during the next five-year period. The beginning fund balance is $4.7 million. Expenditures, including carryover of unfinished projects from prior years, are estimated at $3.1 million in FY 2021 - 22, which will result in an ending fund balance of approximately $4.5 million. RECOMMENDATION: Conduct the public hearing, receive and file the 5-year report covering the period of July 2016 through June 2021, and approve continuation of the local sales tax. BACKGROUND: In November 2006, the voters of Arroyo Grande approved Measure O -06, which established a half-percent local sales tax to meet City needs identified in the City’s long- range financial plan. As a result of this voter-approved 0.5% local sales tax, the total sales tax rate in Arroyo Grande has been 7.75% since April 1, 2007, when Measure O -06 became operative. The total sales tax rates in other nearby jurisdic tions, as of April 1, 2022, are provided in Table 1 for reference: Page 307 of 386 Item 9.c. City Council Consideration of 5-Year Review of Local Sales Tax May 24, 2022 Page 2 Table 1 Sales & Use Tax Rates (Effective April 1, 2022) Advisory Measures K-06, L-06, M-06, and N-06 were placed on the ballot alongside Measure O-06 to ask voters if a portion of the revenue from the sales tax should be used to fund specific needs identified in the City's long-range financial plan. Advisory Measure K-06 (transportation improvements) asked: If the proposed sales tax measure is approved, should a portion of the proceeds be used to fund transportation improvements, including, but not limited to, upgrade of the Brisco Road/Halcyon Road – Highway 101 Interchange? This Advisory Measure passed favorably by 70.45%. City Rate County Monterey 9.25%Monterey Salinas 9.25%Monterey Carmel-by-the-Sea 9.25%Monterey Del Rey Oaks 9.25%Monterey Gonzales 8.75%Monterey Greenfield 9.50%Monterey King City 8.75%Monterey Marina 9.25%Monterey Pacific Grove 8.75%Monterey Sand City 8.75%Monterey Seaside 9.25%Monterey Soledad 9.25%Monterey Arroyo Grande 7.75%San Luis Obispo Atascadero 8.75%San Luis Obispo Grover Beach 8.75%San Luis Obispo Morro Bay 8.75%San Luis Obispo Paso Robles 8.75%San Luis Obispo Pismo Beach 7.75%San Luis Obispo San Luis Obispo 8.75%San Luis Obispo Unincorporated SLO County 7.25%San Luis Obispo Goleta 7.75%Santa Barbara Santa Barbara 8.75%Santa Barbara Santa Maria 8.75%Santa Barbara Carpinteria 9.00%Santa Barbara Guadalupe 8.75%Santa Barbara Page 308 of 386 Item 9.c. City Council Consideration of 5-Year Review of Local Sales Tax May 24, 2022 Page 3 Advisory Measure L-06 (infrastructure improvements) asked: If the proposed sales tax measure is approved, should a portion of the proceeds be used to fund maintenance and upgrade of City’s infrastructure, including, but not limited to, street maintenance and improvements, upgrade of the drainage system, and projects to prevent pollution, erosion and sedimentation in the creek system from storm water runoff? This Advisory Measure passed favorably by 68.57%. Advisory Measure M-06 (public safety equipment, staffing, facilities) asked: If the proposed sales tax measure is approved, should a portion of the proceeds be used to fund public safety expenses, including, but not limited to, expansion of the Police Station, purchase of Fire apparatus, and additional Fire Department staffing? This Advisory Measure passed favorably by 59.89%. Advisory Measure N-06 (improving City facilities/ADA compliance) asked: If the proposed sales tax measure, is approved, should a portion of the proceeds be used to fund improvements to City facilities to meet Federal Americans with Disabilities Act (ADA) requirements, including, but not limited to, upgrade of the City Hall Complex? This Advisory Measure did not pass, receiving 58.85% "No" votes. The Advisory Measures are not legally binding; however, they provide important information to the City to help establish funding priorities and the City has spent its Measure O-06 funds consistent with the advisory measures’ directions since 2007. On May 12, 2015, the City Council confirmed that “infrastructure improvements” funded through Measure O-06 revenue may also include information technology infrastructure, such as network servers, switches and enterprise-wide software. To ensure accountability, Measure O-06 required: 1) the City to publish and distribute an annual report to each household on the revenues and expenditures from the sales tax proceeds; and 2) a review and public hearing by the City Council every five years to determine whether the sales tax is necessary to remain in effect. The first 5-year review occurred on April 10, 2012, the second 5-year review occurred on April 11, 2017, and it is now time for the third review, which will address the period of July 2016 to June 2021. Page 309 of 386 Item 9.c. City Council Consideration of 5-Year Review of Local Sales Tax May 24, 2022 Page 4 ANALYSIS OF ISSUES: Local Sales Tax History Attachment 2 presents a revenue and expenditure history of all local sales tax funds received during fiscal years 2016-17 through 2020-21. Approximately $8.8 million was spent over the five-year period. The most significant percentage of funding has been used for street and park improvements, with 48% of funds dedicated to this purpose. Nearly 27% of expenditures were used in enhancing public safety services, 9% for drainage improvements, 8% for City facilities, and 8% for transportation projects. Therefore, the funds have been utilized for the purposes intended and expenditures reflect the priorities identified by the community. Local Sales Tax Projections and the Updated 5-Year Plan Attachment 3 includes a proposed updated 5-Year Plan for expenditures of local sales tax funds. The proposed 5-Year Plan continues to maintain funding for the City’s highest priorities as outlined when the Measure was proposed. Over the upcoming 5-year period, approximately $18.5 million is proposed to be allocated to multi-year projects. Some of the most significant projects and spending items are outlined in the following sections. Street and Sidewalk Improvements The 5-Year Plan maintains $942,800 - $3,641,763 annually for the Pavement Management Program and approximately $630,000 for sidewalk and other street improvements. In addition, $110,000 is identified to complete Guardrail Replacements around the City. In total, over $9.7 million is allocated over the five-year period for street and sidewalk improvements. As detailed in a staff report presented at the April 26, 2022 City Council meeting and its attached 2022 Pavement Management Plan Update, this amount Page 310 of 386 Item 9.c. City Council Consideration of 5-Year Review of Local Sales Tax May 24, 2022 Page 5 falls well short of the funding required to maintain the City’s streets at current Fair-Poor conditions. Five Cities Fire Authority Local sales tax funds have been instrumental in paying for enhancements to fire and emergency response operations prior to and following formation of the Five Cities Fire Authority (FCFA). Annually, over $2.9 million is programmed from the local sales tax fund for this purpose on an ongoing basis. Under the current terms of the FCFA Joint Powers Agreement (JPA), additional funding will be needed in order to increase staffing at the Oceano Fire Station, which provides services to the western part of Arroyo Grande, and to provide the level of service to the community called for in the FCFA’s Strategic Plan. The City utilizes local sales tax revenue to pay for 25% of its share of current costs under the JPA. Any reduction or elimination of local sales tax funds would significantly impact the City’s ability to provide critical public safety services. In addition, local sales tax funds are needed to pay for two equipment needs: 1) the City’s share of debt service costs for the replacement of a Type III Wildland Fire Engine and Ladder Truck; and 2) the replacement of the Fire Station 1 Generator estimated to cost $544,000, with San Luis Obispo County Office of Emergency Services, CA Nuclear Power Preparedness (NPP) Program grant funds paying 50% of the costs and the City’s local sales tax fund paying the remaining 50%. Police Services The 5-Year Plan includes ongoing funding for one Police Senior Officer position, the City’s required contribution for the countywide Narcotics Task Force (NTF), and a portion of the Public Safety Video Camera Capital Improvement Project. These are critical to the ongoing operations of the Police Department, and any reduction or elimination of local sales tax funds would significantly impact the City’s ability to provide critical public safety services. The funding of one Senior Officer position is an important component in the Police Department’s investigations division. Participating in the NTF allows the City to utilize staffing from other police agencies and the Sheriff’s Office when dealing with narcotics related crimes. The Public Safety Video Cameras will replace the failed public safety video system with a local vender in order to monitor City buildings and identified intersections. Additionally, the Police Firing Range contract expires in FY 2024-25 and, if this contract is not renewed, the City is responsible for lead abatement and returning the premises back to its original condition. The costs of this effort are included in the proposed Updated 5-Year Plan. Transportation Projects Approximately $2 million in transportation related projects are included in the Updated 5- Year Plan. The 5-Year Plan provided in Attachment 3 does not include local sales tax funding for the Brisco/Halcyon Intersection Project, which was previously programmed to use $1.2 million in local sales tax revenue for construction in future years. On April 26, 2022, Council received an update regarding the project and consideration of design services proposals. At that time, Council provided direction to staff to pursue a funding from the United States Department of Transportation’s Multimodal Project Discretionary Grant Page 311 of 386 Item 9.c. City Council Consideration of 5-Year Review of Local Sales Tax May 24, 2022 Page 6 program with the intent of the grant application is to fully fund the project through grants and otherwise-identified impact fee revenue. City Facilities Over the past five years, approximately $660,000 has been expended improving City facilities, in particular the Council Chambers Accessibility Project and upgrades to the Corporation Yard and Mark M. Millis Community Center. Included in the 5-Year Plan are funds to improve several City facilities, including the Elm Street Park Playground Structure update, Open Space Fuel Management, Le Point Street Parking Lot Expansion, a portion of the Financial Management Software upgrade, and various IT replacement and expansion projects. Approximately $1.7 million in City facilities-related projects are budgeted in the 5- Year Plan. Budget Development The 5-Year Capital Improvement Program and 5-Year Local Sales Tax Fund Expenditures are being reviewed at tonight’s meeting during Item 11a. Efforts are currently underway to develop the FY 2022-23 Mid-Cycle Budget, which may propose changes to the 5-Year Plan as currently presented in Attachment 3, for informational purposes. ALTERNATIVES: The following alternatives are provided for the Council’s consideration: 1. Conduct the public hearing, receive and file the 5-Year local sales tax report, and approve staff’s recommendation to maintain the local sales tax; 2. Conduct the public hearing, receive and file the 5-Year local sales tax report, do not approve staff’s recommendation to maintain the local sales tax, and direct staff to prepare a measure for voter consideration to eliminate the local sales tax at either a special election or as part of the November 2022 ballot; or 3. Provide other direction to staff. ADVANTAGES: Maintaining the local sales tax funds is critical to meeting the City’s future infrastructure maintenance, public safety and operating funding needs. DISADVANTAGES: Maintaining the existing local sales tax creates additional costs to the City’s visitors and residents. ENVIRONMENTAL REVIEW: No environmental review is required for this item. PUBLIC NOTIFICATION AND COMMENTS: The Agenda was posted at City Hall and on the City’s website in accordance with Government Code Section 54954.2. Page 312 of 386 Item 9.c. City Council Consideration of 5-Year Review of Local Sales Tax May 24, 2022 Page 7 Attachments: 1. Measure O-06 Advisory Measures 2. Local Sales Tax History FY 2016-2021 3. Local Sales Tax 5-Year Revenue and Expenditure Projections Page 313 of 386 RESOLUTION NO. 3979 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ARROYO GRANDE AUTHORIZING THE CITY MANAGER TO EXECUTE AGREEMENTS WITH THE STATE BOARD OF EQUALIZATION FOR IMPLEMENTATION OF A ,LOCAL TRANSACTIONS AND USE TAX WHEREAS, on July 25, 2006, the City Council approved Ordinance No. 579 amending the City of Arroyo Grande Municipal Code and providing for a local transactions and use tax; and WHEREAS, the State Board of EqualizaHon ("Board") administers and collects the transactions and use taxes for all applicable jurisdictions within the state; and WHEREAS, the Board will be responsible to administer and collect the transactions and use tax for the City; and WHEREAS, the Board requires that the City enter into a "Preparatory Agreement" and an Administration Agreement" prior to implementation of said taxes, and WHEREAS, the Board requires that the City Council authorize the agreements. NOW, THEREFORE BE IT RESOLVED, by the City Council of the City of Arroyo Grande that the "Preparatory Agreement" attached as Exhibit A and the "Administrative Agreement" attached as Exhibit B are hereby approved and the City Manager is hereby authorized to execute each agreement. On motion by Council Member Dickens, seconded by Council Member Amold, and by the following roll call vote, to wit: AYES: NOES: ABSENT: Council Members Dickens, Arnold, Costello, Guthrie, and Mayor Ferrara None None the foregoing Resolution was adopted this 11th day of December, 2006. ATTACHMENT 1 Page 314 of 386 RESOLUTION NO. 3'171 PAGE 2 TONY FER ATTEST: E, CITY CLERK APPROVED AS TO CONTENT: STEVEN ADAMS, CITY MANAGER APPROVED AS TO FORM: TI L, TY ATTORNEY 2 Page 315 of 386 AGREEMENT FOR PREPARATION TO ADMINISTER AND OPERATE CITY'S TRANSACTIONS AND USE TAX ORDINANCE In order to prepare to administer a transactions and use tax ordinance adopted in accordance with the provision of Part 1.6 (commencing with Section 7251) of Division 2 of the Revenue and Taxation Code, the City of Arroyo Grande, hereinafter called City, and the STATE BOARD OF EQUALIZATION, hereinafter called Board, do agree as follows: I. The Board agrees to enter into work to prepare to administer and operate a transactions and use tax in conformity with Part 1.6 of Division 2 of the Revenue and Taxation Code which has been approved by a majority of the electors of the City and whose ordinance has been adopted by the City. 2. City agrees to pay to the Board at the times and in the amounts hereinafter specified all of the Board's costs for preparatory work necessary to administer the City's transactions and use tax ordinance. The Board's costs for preparatory work include costs of developing procedures, programming for data processing, developing and adopting appropriate regulations, designing and printing forms, developing instructions for the Board's staff and for taxpayers, and other appropriate and necessary preparatory costs to administer a transactions and use tax ordinance. These costs shall include both direct and indirect costs as specified in Section 11256 of the Government Code. 3. Preparatory costs may be accounted for in a manner which conforms to the internal accounting and personnel records currently maintained by the Board. The billings for costs may be presented in summary form. Detailed records of preparatory costs will be retained for audit and verification by the City. 4. Any dispute as to the amount of preparatory costs incurred by the Board shall be referred to the State Director of Finance for resolution, and the Director's decision shall be final. 5. Preparatory costs incurred by the Board shall be billed by the Board periodically, with the final billing within a reasonable time after the operative date of the ordinance. City shall pay to the Board the amount of such costs on or before the last day of the next succeeding month following the month when the billing is received. 6. The amount to be paid by City for the Board's preparatory costs shall not exceed one hundred seventy-five thousand dollars ($175,000) (Revenue and Taxation Code Section 7272.) Page 316 of 386 7. Communications and notices may be sent by first class United States mail. Communications and notices to be sent to the Board shall be addressed to: STATE BOARD OF EQUALlZA nON P. O. BOX 942879 SACRAMENTO, CALIFORNIA 94279-0073 ATTENTION: EXECUTIVE DIRECTOR Communications and notices to be sent to City shall be addressed to: City Manager City of Arrovo Grande P.O. Box 550, Arroyo Grande, CA 93421 8. The date of this agreement is the date on which it is approved by the Department of General Services. This agreement shall continue in effect until the preparatory work necessary to administer City's transactions and use tax ordinance has been completed and the Board has received all payments due from City under the tenns of this agreement. CITY OF ARROYO GRANDE STATE BOARD OF EQUALIZATION By By Executive Director)Signature) Steven Adams Typed Name) Citv Manager Title) Rev. 11/02) 2 Page 317 of 386 AGREEMENT FOR STATE ADMINISTRATION OF CITY TRANSACTIONS AND USE TAXES The City Council of the City of Arroyo Grande has adopted, and the voters of the City of Arroyo Grande (hereafter called "City" or "District") have approved by the required majority vote, the City of Arroyo Grande Transactions and Use Tax Ordinance (hereafter called "Ordinance"), a copy of which is attached hereto. To carry out the provisions of Part 1.6 of Division 2 of the Revenue and Taxation Code and the Ordinance, the State Board of Equalization, (hereinafter called the "Board") and the City do agree as follows: ARTICLE I DEFINITIONS Unless the context requires otherwise, wherever the following terms appear in the Agreement, they shall be interpreted to mean the following: I. "District taxes" shall mean the transactions and use taxes, penalties, and interest imposed under an ordinance specifically authorized by Revenue and Taxation code Section 7285.9, and in compliance with Part 1.6, Division 2 of the Revenue and Taxation Code. 2. "City Ordinance" shall mean the City's Transactions and Use Tax Ordinance referred to above and attached hereto, Ordinance No. 579, as amended from time to time, or as deemed to be amended from time to time pursuant to Revenue and Taxation Code Section 7262.2. ARTICLE II ADMINISTRA nON AND COLLECTION OF CITY TAXES A. Administration. The Board and City agree that the Board shall perform exclusively all functions incident to the administration and operation of the City Ordinance. Page 318 of 386 B. Other Applicable Laws. City agrees that all provIsIOns of law applicable to the administration and operation of the State Sales and Use Tax Law which are not inconsistent with Part 1.6 of Division 2 of the Revenue and Taxation Code shall be applicable to the administration and operation of the City Ordinance. City agrees that money collected pursuant to the City Ordinance may be deposited into the State Treasury to the credit of the Retail Sales Tax Fund and may be drawn from that Fund for any authorized purpose, including making refunds, compensating and reimbursing the Board pursuant to Article IV of this Agreement, and transmitting to City the amount to which City is entitled. C. Transmittal of money. I. For the period during which the tax is in effect, and except as otherwise provided herein, all district taxes collected under the provisions of the City Ordinance shall be transmitted to City periodically as promptly as feasible, but not less often than twice in each calendar quarter. 2. For periods subsequent to the expiration date of the tax whether by City's self-imposed limits or by final judgment of any court of the State of California holding that City's ordinance is invalid or void, all district taxes collected under the provisions of the City Ordinance shall be transmitted to City not less than once in each calendar quarter. 3. Transmittals may be made by mail or electronic funds transfer to an account of the City designated and authorized by the City. A statement shall be furnished at least quarterly indicating the amounts withheld pursuant to Article IV of this Agreement. D. Rules. The Board shall prescribe and adopt such rules and regulations as in its judgment are necessary or desirable for the administration and operation of the City Ordinance and the distribution of the district taxes collected thereunder. E. Preference. Unless the payor instructs otherwise, and except as otherwise provided in this Agreement, the Board shall give no preference in applying money received for state sales and use taxes, state-administered local sales and use taxes, and district transactions and use taxes owed by a taxpayer, but shall apply moneys collected to the satisfaction of the claims of the State, cities, counties, cities and counties, redevelopment agencies, other districts, and City as their interests appear. Rev. 1/05 2 Page 319 of 386 F. Security. The Board agrees that any security which it hereafter requires to be furnished by taxpayers under the State Sales and Use Tax Law will be upon such terms that it also will be available for the payment of the claims of City for district taxes owing to it as its interest appears. The Board shall not be required to change the terms of any security now held by it, and City shall not participate in any security now held by the Board. G. Records of the Board. When requested by resolution of the legislative body of the City under section 7056 of the Revenue and Taxation Code, the Board agrees to permit authorized personnel of the City to examine the records of the Board, including the name, address, and account number of each seller holding a seller's permit with a registered business location in the City, pertaining to the ascertainment of transactions and use taxes collected for the City. Information obtained by the City from examination of the Board's records shall be used by the City only for purposes related to the collection of transactions and use taxes by the Board pursuant to this Agreement. H. Annexation. City agrees that the Board shall not be required to give effect to an annexation, for the purpose of collecting, allocating, and distributing District transactions and use taxes, earlier than the first day of the calendar quarter which commences not less than two months after notice to the Board. The notice shall include the name of the county or counties annexed to the extended City boundary. [n the event the City shall annex an area, the boundaries of which are not coterminous with a county or counties, the notice shall include a description of the area annexed and two maps of the City showing the area annexed and the location address of the property nearest to the extended City boundary on each side of every street or road crossing the boundary. ARTICLE III ALLOCA T[ON OF TAX A. Allocation. In the administration of the Board's contracts with all districts that impose transactions and use taxes imposed under ordinances, which comply with Part 1.6 of Division 2 of the Revenue and Taxation Code: Rev. 1105 3 Page 320 of 386 J. Any payment not identified as being in payment of liability owing to a designated district or districts may be apportioned among the districts as their interest appear, or, in the discretion of the Board, to all districts with which the Board has contracted using ratios reflected by the distribution of district taxes collected from all taxpayers. 2. All district taxes collected as a result of determinations or billings made by the Board, and all amounts refunded or credited may be distributed or charged to the respective districts in the same ratio as the taxpayer's self-declared district taxes fo'r the period for which the determination, billing, refund or credit applies. B. Vehicles, Vessels, and Aircraft. For the purpose of allocating use tax with respect to vehicles, vessels, or aircraft, the address of the registered owner appearing on the application for registration or on the certificate of ownership may be used by the Board in determining the place of use. ARTICLE IV COMPENSA nON The City agrees to pay to the Board as the Board's cost of administering the City Ordinance such amount as is provided for by law. Such amounts shall be deducted from the taxes collected by the Board for the City. ARTICLE V MISCELLANEOUS PROVISIONS A. Communications. Communications and notices may be sent by first class United States mail to the addresses listed below, or to such other addresses, as the parties may from time to time designate. A notification is complete when deposited in the mail. Rev. 1/05 4 Page 321 of 386 Communications and notices to be sent to the Board shall be addressed to: State Board of Equalization P.O. Box 942879 Sacramento, California 94279-0073 Attention: Executive Director Communication~ and notices to be sent to the City shall be addressed to: Citv of Arrovo Grande P.O. Box 550 Arrovo Grande. California 93421 Attention: Citv Manager Unless otherwise directed, transmittals of payment of District transactions and use taxes will he sent to the address above. B. Term. The date of this Agreement is the date on which it is approved by the Department of General Services. The Agreement shall take effect on April I. 2007. This Agreement shall continue until December 3 I next following the expiration date of the City Ordinance, and shall thereafter be renewed automatically from year to year until the Board completes all work necessary to the administration of the City Ordinance and has received and disbursed all payments due under that Ordinance. C. Notice of Repeal of Ordinance. City shall give the Board written notice of the repeal of the City Ordinance not less than 110 days prior to the operative date of the repeal. Rev ]/05 5 Page 322 of 386 ARTICLE VI ADMINISTRA TION OF TAXES IF THE ORDINANCE IS CHALLENGED AS BEING INVALID A. Impoundment of funds. 1. When a legal action is begun challenging the validity of the imposition of the tax, the City shall deposit in an interest-bearing escrow account, any proceeds transmitted to it under Article II. c., until a court of competent jurisdiction renders a final and non-appealable judgment that the tax is valid. 2. If the tax is determined to' be unconstitutional or otherwise invalid, the City shall transmit to the Board the moneys retained in escrow, including any accumulated interest, within ten days of the judgment of the trial court in the litigation awarding costs and fees becoming final and non- appealable. B. Costs of administration. Should a final judgment be entered in any court of the State of Cali fornia, holding that City's Ordinance is invalid or void, and requiring a rebate or refund to taxpayers of any taxes collected under the terms of this Agreement, the parties mutually agree that: I. Board may retain all payments made by City to Board to prepare to administer the City Ordinance. 2. City will pay to Board and allow Board to retain Board's cost of administering the City Ordinance in the amounts set forth in Article IV of this Agreement. 3. City will pay to Board or to the State of Cali fomi a the amount of any taxes plus interest and penalties, if any, that Board or the State of California may be required to rebate or refund to taxpayers. Rev. 1105 6 Page 323 of 386 4. City will pay to Board its costs for rebating or refunding such taxes, interest, or penalties, Board's costs shall include its additional cost for developing procedures for processing the rebates or refunds, its costs of actually making these refunds, designing and printing forms, and developing instructions for Board's staff for use in making these rebates or refunds and any other costs incurred by Board which are reasonably appropriate or necessary to make those rebates or refunds. These costs shall include Board's direct and indirect costs as specified by Section 11256 of the Government Code, 5. Costs may be accounted for in a manner, which conforms to the internal accounting, and personnel records currently maintained by the Board. The billings for such costs may be presented in summary form, Detailed records will be retained for audit and verification by City. 6. Any dispute as to the amount of costs incurred by Board in refunding taxes shall 'be referred to the State Director of Finance for resolution and the Director's decision shall be final. 7. Costs incurred by Board in connection with such refunds shall be billed by Board on or before the 25th day of the second month following the month in which the judgment of a court of the State of California holding City's Ordinance invalid or void becomes final. Thereafter Board shall bill City on or before the 25th of each month for all costs incurred by Board for the preceding calendar month. City shall pay to Board the amount of such costs on or before the last day of the succeeding month and shall pay to Board the total amount of taxes, interest, and penalties refunded or paid to taxpayers, together with Board costs incurred in making those refunds. CITY OF STATE BOARD OF EQUALIZATION By By Signature)Executive Director) Steven Adams Typed Name) Citv Manager Title) Rev 1/05 7 Page 324 of 386 OFFICIAL CERTIFICATION I, KELLY WETMORE, City Clerk of the City of Arroyo Grande, County of San Luis Obispo, State of California, do hereby certify under penalty of perjury, that the attached Resolution No. 3979 is a true, full, and correct copy of said Resolution passed and adopted at a special meeting of the City Council of the City of Arroyo Grande on the 11 th day of December 2006. WITNESS my hand and the Seal of the City of Arroyo Grande affixed this 14th day of December 2006. N--- RE, CITY CLERK Page 325 of 386 Item 2016-17 2017-18 2018-19 2019-20 2020-21 5-Year Total Castillo Del Mar Road Improvements - - 8,240 21,257 399,614 429,111 East Branch St Streetscape 2,881 9,305 10,879 11,353 - 34,418 Swinging Bridge Reinforcement 28,997 17,616 2,791 27,049 29,417 105,869 Traffic Way Bridge Improvements - - 14,841 73,687 33,173 121,702 Subtotal Transportation 31,878 26,921 36,751 133,346 462,204 691,099 Pavement Management Program 703,646 672,920 298,305 625,089 - 2,299,960 Striping and Sidewalk Improvements 27,936 143,808 103,893 133,105 138,602 547,344 Oak Park Rehabilitation Project 164,617 - - - - 164,617 Street Maintenance 196,704 242,004 - - - 438,708 Construction Management/Inspection 43,600 104,400 - - - 148,000 Alpine St Waterline & Street Imp - 6,128 - - - 6,128 Soto Complex ADA Improvements Phase II 272 - - - - 272 Soto Complex ADA Improvements Phase III - 13,056 1,513 - - 14,569 Le Point St Parking Lot 553,332 - - - - 553,332 E. Grand Ave Master Plan - 12,882 - - - 12,882 Subtotal Street/Park Improvements 1,690,107 1,195,198 403,712 758,194 138,602 4,185,812 Retention Basin Maintenance 27,700 - - - - 27,700 Vard Loomis Drainage Improvements - - - - 31,432 31,432 Retention Basin Maintenance - 28,300 - - - 28,300 Corporation Yard Stormwater Imp - 1,682 - 5,888 - 7,569 Stormwater Stream Monitoring - 8,504 8,310 10,834 9,205 36,852 Sierra/Hillcrest Drainage Design - 12,015 108,409 255 - 120,679 Open Channel Maintenance (Env & Permit)2,214 485 - - - 2,699 CMP Replacements - 725 16,486 207,930 18,500 243,641 Oak Park/El Camino Storm Drain - - 136,608 29,060 165,668 El Camino Real Drainage Pipe 67,675 - - - - 67,675 Stormwater Annual Permit & Program 12,777 12,524 8,539 13,596 8,992 56,428 Subtotal Drainage Improvements 110,366 64,235 141,744 375,110 97,188 788,643 Fire JPA 140,500 169,300 - 528,894 528,894 1,367,588 Police Senior Officer Position - 186,596 192,204 198,000 267,408 844,208 LOCAL SALES TAX FUND HISTORY CITY OF ARROYO GRANDE ATTACHMENT 2 Page 326 of 386 Item 2016-17 2017-18 2018-19 2019-20 2020-21 5-Year Total LOCAL SALES TAX FUND HISTORY CITY OF ARROYO GRANDE Narcotics Task Force - 24,600 24,600 24,600 24,600 98,400 Animal Services Building Debt Service - -- - 79,804 79,804 Subtotal Public Safety 140,500 380,496 216,804 751,494 900,706 2,390,000 City Hall Debt Service 20,000 20,000 20,000 20,004 20,004 100,008 Document Imaging 2,581 4,919 - - - 7,500 Council Chambers Accessibility Project 231,691 - - - - 231,691 Corporation Yard Upgrades 36,807 28,085 - - - 64,892 Elm Street Community Center Upgrade - 24,579 13,121 - - 37,700 Elm Park/Soto Complex Master Plan - -3,805 - - 3,805 Wireless Internet Access 5,535 - - - - 5,535 IT Firewall Replacement 26,909 - - - - 26,909 Woman's Club Barrier Removal - 34,297 11,939 - - 46,235 Fire Station Driveway Repair - 62,600 - - - 62,600 Network Storage Expansion - Police Dept.- -- - 74,012 74,012 Subtotal City Facilities 323,523 174,480 48,865 20,004 94,016 660,888 Annual Audit and Sales Tax Report 4,501 4,786 3,872 2,506 6,545 22,210 Contingency - - - 25,000 - 25,000 Subtotal Other 4,501 4,786 3,872 27,506 6,545 47,210 Total Expenses 2,300,875 1,846,116 851,747 2,065,653 1,699,261 8,763,652 Revenue 2,174,019 2,267,845 2,339,670 2,396,608 2,637,642 11,815,784 Revenue Over/(Under) Expenses (126,856) 421,729 1,487,923 330,955 938,381 Beginning Fund Balance 1,709,362 1,582,506 2,004,235 3,492,157 3,823,112 Estimated Ending Fund Balance 1,582,506 2,004,235 3,492,157 3,823,112 4,761,493 % Fund Balance of Estimated Revenues 73%88%149%160%181% Page 327 of 386 Item 2021-22 Budget 2021-22 Anticipated to Complete or Carryover 2022-23 Budget 2023-24 2024-25 2025-26 2026-27 5-Year Total Castillo Del Mar Road Improvements 78,507 78,507 - - - - - - East Branch St Streetscape 98,835 - - - - 98,835 - 98,835 Fair Oaks/Orchard Rd Intersection Imp 50,000 - - - - - - - Swinging Bridge Reinforcement 616,269 616,269 550,000 - - - - 550,000 Traffic Way Bridge Improvements 101,849 101,849 - 82,355 1,248,349 - - 1,330,704 Brisco Rd Interchange Project - - - -- - - - Subtotal Transportation 945,460 796,625 550,000 82,355 1,248,349 98,835 - 1,979,539 Pavement Management Program 1,717,837 982,315 3,641,763 1,573,900 942,800 1,250,000 1,667,800 9,076,263 Striping and Sidewalk Improvements 148,297 118,706 149,591 - 240,000 - 240,000 629,591 Bridge Preventative Maintenance Plan - - - 2,982 - - - 2,982 Bricks between 208 & 214 E Branch 65,000 65,000 - - - - - - Guardrail Replacement 55,000 55,000 55,000 55,000 - - - 110,000 Active Transportation Plan - - 14,338 14,337 - - - 28,675 Branch Mill Road Stabilization - - 40,000 - - - - 40,000 Subtotal Street/Park Improvements 1,986,134 1,221,021 3,900,692 1,646,219 1,182,800 1,250,000 1,907,800 9,887,511 Drainage and Creek Preservation Projects 53,500 - - - - - - - CMP Replacements - - - - - - 100,000 100,000 Trash Capture Devices - - - 55,800 - - - 55,800 Subtotal Drainage Improvements 53,500 - - 55,800 - - 100,000 155,800 Fire JPA 528,894 528,894 528,894 560,628 588,659 606,319 618,445 2,902,945 Fire Replacement Type III Wildland Fire Engine - - 24,000 24,000 24,000 24,000 24,000 120,000 Fire Replacement Ladder Truck - - - - - 105,400 105,400 210,800 Police Senior Officer Position 175,000 175,000 178,500 182,100 185,700 189,400 193,200 928,900 Narcotics Task Force 24,600 24,600 24,600 24,600 24,600 24,600 24,600 123,000 Public Safety Video Cameras - - - 62,500 62,500 62,500 - 187,500 Police Firing Range - - - - 120,000 - - 120,000 Animal Services Building Debt Service 53,825 53,825 60,000 60,000 60,000 60,000 60,000 300,000 Subtotal Public Safety 782,319 782,319 815,994 913,828 1,065,459 1,072,219 1,025,645 4,893,145 City Hall Debt Service 20,000 20,000 20,000 20,000 20,000 20,000 20,000 100,000 Corporation Yard Renovations 20,000 13,900 6,100 - - - - 6,100 Elm Park/Soto Complex Master Plan 46,195 -46,195 150,000 - - - 196,195 Elm St. Park Playground Structure 136,426 136,426 - - - - - - City Building Safety Improvement Project 50,000 3,263 - - - - - - Fire Station 1 Generator Replacement - 46,738 272,000 - - - - 272,000 Various Open Space Fire/Fuel Management - - 100,000 100,000 100,000 - - 300,000 Woman's Club Improvements - - 2,200 - - - - 2,200 Le Point Street Parking Lot Expansion - - 85,000 150,000 - - - 235,000 Financial Management System - - 130,000 130,000 - - - 260,000 Network Switch Replacement 22,000 22,000 24,000 - - - - 24,000 Server Replacement - - - 30,000 - - - 30,000 5-Year Revenue and Expenditure Plan CITY OF ARROYO GRANDE ATTACHMENT 3 Page 328 of 386 Item 2021-22 Budget 2021-22 Anticipated to Complete or Carryover 2022-23 Budget 2023-24 2024-25 2025-26 2026-27 5-Year Total 5-Year Revenue and Expenditure Plan CITY OF ARROYO GRANDE Email Archive - - - 10,000 - - - 10,000 Network Storage Expansion - City Hall - - - - 80,000 - - 80,000 Firewall - City Hall - - - - 40,000 - - 40,000 Server Replacement - PD - - - - 30,000 - - 30,000 Secondary Network Storage (PD In-Car/Body)- - - - 12,000 - - 12,000 Shoretel (Phones)- - - - 50,000 - - 50,000 Council Chambers Audio/Video - - - - - 25,000 - 25,000 Utility Undergrounding on East Grande Ave 75,000 - - - - - - - Fuel Management System/Dispenser Replcmnt.21,235 21,235 - - - - - - Subtotal City Facilities 390,856 263,562 685,495 590,000 332,000 45,000 20,000 1,672,495 Annual Audit and Sales Tax Report 7,500 7,500 7,500 7,500 7,500 7,500 7,500 37,500 Contingency 25,000 25,000 25,000 25,000 25,000 25,000 25,000 125,000 Subtotal Other 32,500 32,500 32,500 32,500 32,500 32,500 32,500 162,500 Total Expenses 4,190,769 3,096,027 5,984,681 3,320,702 3,861,108 2,498,554 3,085,945 18,750,990 Revenue 2,489,500 2,797,000 2,846,000 2,926,000 2,984,500 3,044,200 3,105,100 14,905,800 Revenue Over/(Under) Expenses (1,701,269) (299,027) (3,138,681) (394,702) (876,608) 545,646 19,155 Beginning Fund Balance 4,761,493 4,761,493 4,462,467 1,323,785 929,084 52,476 598,122 Estimated Ending Fund Balance 3,060,225 4,462,467 1,323,785 929,084 52,476 598,122 617,277 % Fund Balance of Estimated Revenues 123%160%47%32%2%20%20% Page 329 of 386 Item 11.a. MEMORANDUM TO: City Council FROM: Whitney McDonald, City Manager Bill Robeson, Assistant City Manager/Public Works Director Nicole Valentine, Administrative Services Director Jill McPeek, Capital Improvement Project Manager SUBJECT: Discussion and Consideration of the 5-Year Capital Improvement Program and 5-Year Local Sales Tax Fund Expenditure Program DATE: May 24, 2022 SUMMARY OF ACTION: Provide direction on the 5-year Capital Improvement Program (CIP) budget and the 5- Year Local Sales Tax Fund Expenditures Program. IMPACT ON FINANCIAL AND PERSONNEL RESOURCES: The proposed CIP budget allocates $69.9 million for projects, from various funding sources, over a 5-year period. During the future Council consideration of the FY 2022-23 Mid-Cycle Budget, it is anticipated that $10.6 million will be allocated for CIP projects, with $5.1 million of the Local Sales Tax Fund allocated for CIP projects. RECOMMENDATION: It is recommended the City Council provide direction on priorities for the CIP as well as expenditures funded by the Local Sales Tax Fund for the upcoming 5-year programs. BACKGROUND: The City’s budget provides funding for all City services, infrastructure investments and activities performed during each fiscal year. The two major components of the budget are ongoing operations and capital or one-time expenditures. Capital projects often involve a multi-year approach, with design and survey work occurring in one year, followed by construction in the following year or two. Depending on complexity, capital projects can span several years. Utilizing a five-year plan, the City can identify and fund preliminary phases of a project with the reasonable expectation that future years will fund subsequent project phases. However, identifying a project in future years does not mean it will automatically be funded in those years. During each budget cycle, all capital projects are reviewed and prioritized against then-current needs and available funding. Page 330 of 386 Item 11.a. City Council Discussion and Consideration of the 5-Year Capital Improvement Program and 5- Year Local Sales Tax Fund Expenditure Program May 24, 2022 Page 2 On May 11, 2021, the City Council reviewed the 5-Year CIP as part of the Biennial FY 2021-23 Budget process. Council expressed support for the presentation and the 5-Year CIP was formally adopted as part of the Biennial FY 2021 -23 Budget on June 8, 2021. The City is entering the second year of a two-year budget, referred to as the Mid-Cycle Update. The purpose of this Mid-Cycle Update is to: 1) update revenue projections as economic data becomes available; 2) update expenditures as more accurate costs become available; and 3) to provide adjustments for projects that have been funded through other sources, for example ARPA. After receiving input regarding the updated 5- Year CIP presented in this report, the final document will be included as part of the Mid - Cycle Update on June 14, 2022. Enterprise Funds for water and sewer are included in this report to the degree that their budgets reflect the capital improvements necessary to sustain those operations. Enterprise budgets are developed in close coordination with the ten-year water and sewer master plans and the projected revenue generation of the funds based on adopted rates. Enterprise operating budgets will be presented to the City Council with the draft operating budgets of other funds on June 14, 2022 as part of the Mid-Cycle FY 2022-23 Budget. The Local Sales Tax Fund provides for both operating and capital needs, with approximately 85% of the revenue generated by this half-percent tax allocated for capital projects. The attached 5-year revenue and expenditure plan is prepared in order to support the multi-year nature of the capital projects and also for consistency with the 5 - year forecast that is prepared for the General Fund. Like the capital program, the projects and programs currently identified in years outside of the Biennial Budget period could change and are not automatically guaranteed to be funded as proposed. Each budget cycle, the projects are prioritized against current needs and available funding. Attachment 1 provides information about each proposed project during the 5-year period. With this agenda item, staff requests input and direction from the City Council on the 5 - year Capital Improvement Program and the 5-year Local Sales Tax Expenditures Program described below. This direction will then be incorporated into the mid-cycle update for FY 2022-23 of the current Biennial Budget that is scheduled to be presented to Council for review and adoption on June 14, 2022. ANALYSIS OF ISSUES: Projects Completed in FY 2021-22 Many projects in the CIP program take more than one fiscal year to complete and each year progress is made toward completion of these projects. The following CIPs included in the current CIP program have been completed or are anticipated to be completed during the 2021-22 fiscal year. Page 331 of 386 Item 11.a. City Council Discussion and Consideration of the 5-Year Capital Improvement Program and 5- Year Local Sales Tax Fund Expenditure Program May 24, 2022 Page 3  2019 Street Repairs Project – Annual street repairs on various streets throughout the City;  Corporation Yard Roof Repairs – Roof repairs to Buildings A and B at the City’s Corporation Yard;  2021 Concrete Repairs – Annual replacement of damaged/uplifted sidewalks at various locations throughout the City;  Brick Walkway between 208 and 214 East Branch Street – Remove lifted and damaged brick walkway and replace with Village style sidewalk;  Manhole Rehabilitation – The project consisted of cleaning and coating 4 existing sewer manholes.  Castillo del Mar Extension – The project consisted of roadway extension, multi-use path, drainage improvements, waterline relocation, landscaping, street trees and lighting;  2021 Striping Refresh – The project consisted of restriping sections of various streets within the City;  2022 Pavement Management Program Update – Updates to the Pavement Management Program included inventory tracking, , work history, and budget estimates to optimize funding for improving the City’s pavement system ;  2021 Street Repairs Project – Annual street repairs on various streets throughout the City;  Storm Drain System at 251 East Grand Avenue (Chevron Station) – The project consisted of plugging and filling an existing failed CMP storm drain, installation of new storm drain pipe, site restoration, fencing, and barricade rental, and extra work due to new storm drain obstructions found while placing new pipe;  Soto Sports Complex Tennis and Pickleball Resurfacing Project – The project consisted of preparation and resurfacing of four tennis courts and four pickleball courts, and new sleeves on the tennis courts net poles. Major Projects Proposed for the 5-Year CIP Beginning FY 2022-23 A full list of all projects with proposed funding in the upcoming 5-year cycle is included as Attachment 1. Significant projects are discussed below, and an * indicates that the project is part of the Council Goals and Priorities for Fiscal Year 2022-23.  Brisco Road/US 101 Interchange* This capital project is expected to address existing congestion on B risco Road at the Highway 101 Undercrossing and the predicted growth occurring in accordance with the City’s General Plan. The Final Project Report and environmental documents for this project were approved and signed by Caltrans on April 27, 2021. This report estimates a total project cost for all phases of the project, including project approval & environmental determination, design, right of way, construction, construction support, and cost escalation of $38.2 M. This total, Page 332 of 386 Item 11.a. City Council Discussion and Consideration of the 5-Year Capital Improvement Program and 5- Year Local Sales Tax Fund Expenditure Program May 24, 2022 Page 4 however, includes not only the roundabout construction, but also an estimated $6.1 million for the proposed sound walls and the East Grand Avenue/US 101 southbound ramp. On March 26, 2019, Council directed staff to phase in, defer, or remove these two elements of the project in order to reduce the overall cost. As a result, the FY 2021-26 CIP reflected a total project cost of $32.1 million. On April 26, 2022, Council received an update regarding the project and consideration of design services proposals and provided direction to staff to pursue a funding from the United States Department of Transportation’s Multimodal Project Discretionary Grant program. In preparation of that grant application, staff proposes to seek funding for the entire project, including the proposed sound walls , the East Grand Avenue/US 101 southbound ramp and expenditures to date of $2.6M for project approval & environmental determination . Therefore, the revised 5-Year CIP presented in Attachment 1 reflects a total project cost of $35.6 million to complete the project ($38.2M total cost - $2.6M work completed = $35.6M to complete. Additionally, the revised CIP removes the previously identified local sales tax revenue allocated to the project, as the intent of the grant application is to fully fund the project through grants and otherwise-identified impact fee revenue.  Traffic Way Bridge* The Traffic Way Bridge was built in 1932 and has been evaluated for structural and functional integrity. It has been determined that the bridge is in need of replacement. The City has secured grant funding that will pay 88.53% of the project costs. Nevertheless, over $1.4 million is required from the City to pay for the remainder of the costs. The design, environmental determination, and permitting is expected to be completed in fiscal year 2023 -24, and construction is expected to begin in 2024-25.  Swinging Bridge Retrofit Project* This capital project will remove and replace the existing cables and helical anchors, reinforce the existing concrete abutments, clean and paint the existing towers, replace deteriorated wood members, replace wood planks, and tighten and/or install bolts at the suspension bridge wood connections. The projected cost of this item is $1.2 million and is currently budgeted with Local Sales Tax Funds. City staff submitted a FY23 Community Project Funding Request to Congressman S alud Carbajal’s office on April 14, 2022, seeking funding for this project from the federal government.  Active Transportation Plan* This capital project is a comprehensive collection of policies, programs, and infrastructure recommendations aiming to increase the number of people bicycling and walking in the City. By improving sustainable transportation such as walking and bicycling, the City can reduce vehicle use and place the City on a better path to achieving climate neutrality. The Active Transportation Plan takes a new Page 333 of 386 Item 11.a. City Council Discussion and Consideration of the 5-Year Capital Improvement Program and 5- Year Local Sales Tax Fund Expenditure Program May 24, 2022 Page 5 approach to implementing projects, supporting a more resilient economy, equity, and using resources more effectively. Completion of the Plan will increase the likelihood that the City may receive grant funding from other agencies to complete projects identified in the Plan. The projected cost of this item is $250,000. The City has secured grant funding that will pay approximately 88.53% of the Plan costs, with the Local Sales Tax Fund paying the remaining amount of approximately $28,675.  Stormwater Infrastructure* The proposed 5-year CIP includes $1.4 million for the continuation of replacing, rehabilitating, and maintaining the City’s stormwater infrastructure. This includes rehabilitating deteriorating Corrugated Metal Pipes (CMPs), replacing the storm drain system in the vicinity of Oak Park Boulevard and El Camino Real, replacing, enlarging and installing Trash Capture Devices, and updating the Stormwater Master Plan. Approximately $1.2 million of ARPA Funding has been allocated to these projects, with the remaining funds coming from the Local Sales Tax Fund. The proposed CIP budget does adjust two ARPA funded projects by $55,800 as shown in the table below: This shift in funding is related to the timing of projects . The Stormwater Master Plan Update will be completed in FY 2022 -23 and the results of this update will help facilitate where and when to place the Trash Capture Devices. The Trash Capture Devices will be fully funded at $214,000 with the remaining $55,800 included in the Local Sales Tax Fund Budget.  Sewer and Water Infrastructure * The proposed 5-year CIP includes $3.6 million for the continuation of replacing, rehabilitating, and maintaining the City’s water and sewer infrastructure. This includes rehabilitating deteriorating sewer manholes, rehabilitating sewer mains through trenchless lining techniques, replacing, enlarging and installing interconnect water mains, water reservoir recoating, and updating both the W ater and Sewer System Master plans. Approximately, $1.4 million of ARPA Funding has been allocated to Water and Sewer projects during FY 2022 -23 through FY 2026-27 as shown in the table below: Stormwater Infrastructure Projects Current Proposed Trash Capture Devices 214,000 158,200 Stormwater Master Plan Update/Watershed Management Plan 116,700 172,500 Stormwater GIS Layer (incorporate into the Stormwater Master Plan Update)50,000 50,000 380,700 380,700 Page 334 of 386 Item 11.a. City Council Discussion and Consideration of the 5-Year Capital Improvement Program and 5- Year Local Sales Tax Fund Expenditure Program May 24, 2022 Page 6  Phased Main Replacement Fair Oaks Avenue - South Elm Street to Alder Street* This project will replace the existing 8-inch water main from 1929 with a new 8- inch water main along Fair Oaks Avenue between South Elm Street and Alder Street. The projected cost of this project is $750,000 and will be funded by $480,250 of ARPA and $269,750 of Water Facility Funds. The proposed CIP budget adjusts three ARPA funded projects by $247,500 as shown in the table below: The Reservoir No. 4 Recoating Project is being placed on hold due to the opinion of probable cost from the City’s consultant Engineer. The current projected cost is $510,000, while the budget was originally $147,000. Staff will evaluate this project in approximately one year to see if the current bidding climate returns to greater normality. In the interim, staff will spot repair any coating issues in-house. Similarly, the Andre Drive/Los Ciervos Court Interconnect project, to help provide redundancy of the Rancho Grande pressure zone distribution system, is also being Project Number Request Title Funding Sources Budget FY 2021-22 2021-22 Anticipated to Complete or Carryover Budget FY 2022-23 FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 5-Year Total WATER PROJECTS 640-5911 Phased Mains Replacement - Cornwall Street, South Halcyon Road to El Camino Real 4965 - ARPA - - - 578,700 - - - 578,700 640-5911 Phased Mains Replacement - South Halcyon Road, Cornwall Street to Fair Oaks Avenue 4942 - Water Facility - - 269,750 - - - - 4965 - ARPA 232,750 232,750 247,500 - - - - 517,250 640-5948 Reservoir No. 4 Exterior Coating 4965 - ARPA 147,500 - - - - - - - 640-5973 Phased Main Replacement - Highway 101 Crossing Upgrade, El Camino Real to West Branch Street 4965 - ARPA - - 291,200 - - - - 291,200 640-5976 Andre Drive / Los Ciervos Court Interconnect 4965 - ARPA 100,000 - - - - - - - Total Water Projects 480,250 232,750 808,450 578,700 - - - 1,387,150 Project Number Request Title Funding Sources Budget FY 2021-22 2021-22 Anticipated to Complete or Carryover Budget FY 2022-23 FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 5-Year Total SEWER PROJECTS 612-5821 Trenchless Sewer Rehabilitation - Wood, Sandalwood, Cameron, Woodland Backyards 4965 - ARPA 267,200 267,200 - - - - - - 612-58XX Trenchless Sewer Rehabilitation - Pilgrim Way, Orchard Avenue, West Cherry Avenue and California Street 4965 - ARPA - 282,000 - - - 282,000 Total Sewer Projects 267,200 267,200 - 282,000 - - - 282,000 Grand Total, All Water & Sewer Projects 11,378,409 8,421,772 808,450 860,700 - - - 1,669,150 Water Infrastructure Projects Current Proposed Phased Main Replacement Fair Oaks - Elm to Alder 232,750 480,250 Reservoir No. 4 Exterior Coating 147,500 Andre Drive/Los Ciervos Ct. Interconnect 100,000 480,250 480,250 Page 335 of 386 Item 11.a. City Council Discussion and Consideration of the 5-Year Capital Improvement Program and 5- Year Local Sales Tax Fund Expenditure Program May 24, 2022 Page 7 placed on hold until the current bidding climate returns to normality. The current cost estimate for this project is $175,000, $75,000 higher than the previously budgeted estimate, due to the costs per square foot of materials.  Central Coast Blue* Central Coast Blue is a regional recycled water project that will purify wastewater and inject it into the groundwater basin in order to protect the basin against seawater intrusion and to provide a reliable supplemental water supply for the participating agencies. The total capital cost to the City for this project is estimated to be $12.9 million (including pre-construction and construction costs). The pre- construction costs for this project are included in the CIP budget . However, because the construction costs will be debt-financed or grant-funded and are included in the water financial plan that is supported by the adopted rates that went into effect April 19, 2022, only the pre-construction costs are included in the CIP.  Public Safety Video Cameras* This project will replace the current failed public safety video system with a system installed by a local vender in order to monitor City facilities, parks, open spaces, and certain intersections. The projected cost of this item is $5 00,000 and would be funded by the Citizens Option for Public Safety (COPS) grant program and Local Sales Tax Funds.  Financial Management Software* In order to improve staff efficiency, enhance financial transparency, and provide the community with more easily accessible financial data, staff is seeking to replace the City’s current Financial Management Software. Transition of the general ledger, payroll, human resources, utility billing, accounts payable, accounts receivables, and cashiering functions is anticipated to cost $450,000, which will be allocated between the Water, Sewer and Local Sales Tax Funds. Staff issued a Request For Proposals (RFP) for the software services on April 28, 2022, and it is anticipated that the City will select a vendor in the Fall.  Pavement Management Program* The proposed 5-year CIP includes a total of $11.5 million for maintaining the City’s public streets, alleys, and parking lots. This includes maintenance applications such as digouts, slurry seals, mill and fill, and pavement overlays t o the extent that funds are available. This program also includes providing Americans with Disabilities Act (ADA) compliant pedestrian facilities such as curb ramps when triggered by certain maintenance applications that are considered an alteration of a street (e.g., overlays). Page 336 of 386 Item 11.a. City Council Discussion and Consideration of the 5-Year Capital Improvement Program and 5- Year Local Sales Tax Fund Expenditure Program May 24, 2022 Page 8  Replace Generator at Fire Station 1 This capital project will replace the emergency generator at the City-owned fire station. The current generator is unreliable and has cost thousands of dollars in repairs. Public safety facilities are required to have back-up power for continuity of operations. The projected cost of this item is approximately $680,000, with the San Luis Obispo County Office of Emergency Services, CA Nuclear Power Preparedness (NPP) Program grant program anticipated to provide 50% of the project costs and Local Sales Tax Funds paying the remaining 50%. As shown on the chart below, the largest focus of the CIP will be related to streets. 5-Year Capital Improvement Projects by Function As summarized below, the City continues to rely on grant funding for a significant portion of its capital projects. In particular, the Federal Highway Bridge Program (HBP) will provide nearly $10.5 million and the State Transportation Improvement Program (STIP) MISCELLANEOUS PROJECTS 4% PARKS PROJECTS 1% STREETS PROJECTS 88% DRAINAGE PROJECTS 2% WATER PROJECTS 4% SEWER PROJECTS 1% Page 337 of 386 Item 11.a. City Council Discussion and Consideration of the 5-Year Capital Improvement Program and 5- Year Local Sales Tax Fund Expenditure Program May 24, 2022 Page 9 will provide $6.6 million for the rehabilitation or replacement of critical infrastructure in the City. Additionally, the Local Sales Tax Fund is the other major funding source for the CIP program, providing $13.9 million in funding over the 5-year plan and $5.1 million during the 2022-23 Budget. The Local Sales Tax Fund has $5.1 million in the FY 2022-23 Budget due to the allocation of $1.8 million in ARPA funds to Stormwater projects originally budgeted with Local Sales Tax funding, as well as lower than estimated costs for the 2021 Streets Repairs Project in FY 2021-22 by approximately $736,000. 5-Year Capital Improvement Projects Summary by Funding Source Local Sales Tax Fund As previously discussed, the City prepares a 5-year plan for the Local Sales Tax Fund. The City has been diligent in using the local sales tax funds for the four purposes originally identified: infrastructure improvements, including the street, drainage and creek systems; transportation projects; and public safety needs. In 2015, the City Council confirmed that Information Technology (IT) infrastructure is included within the list of infrastructure systems supported by the Local Sales Tax Fund. To ensure accountability, Measure O-06 required: 1) the City to publish and distribute an annual report to each household on the revenues and expenditures from the sales tax proceeds; and 2) a review and public hearing by the City Council every five years to determine whether the sales tax is necessary to remain in effect. The 5-year review and Public Hearing was presented during a companion item on the same agenda as this item is being presented on May 24, 2022 (Item 9.c). The proposed 5-year plan for the Local Sales Tax Fund is provided as Attachment 2 and was also presented as an attachment to the 5-year report included in Item 9.c. Significant expenditures not previously mentioned include:  $301,000 over five years for improvements to the City’s information technology infrastructure, including upgrade or replacements to servers, storage, and the City’s firewall.  Storm drainage improvements of $155,800 over the course of the 5-year program.  Continued funding for public safety enhancements of approximately $4.7 million over the 5-year program, including $2.9 million for services from the Five Cities Page 338 of 386 Item 11.a. City Council Discussion and Consideration of the 5-Year Capital Improvement Program and 5- Year Local Sales Tax Fund Expenditure Program May 24, 2022 Page 10 Fire Authority, $928,900 over five years for a Senior Police Officer position, as well as funding towards a wildland fire engine, ladder truck, and the police firing range.  Striping and sidewalk improvements totaling $629,591 over the 5-year program. Next Steps The proposed 5-Year CIP and 5-year Local Sales Tax Fund expenditure plans are being provided for discussion and direction from Council on any requested changes. Following this direction, the 5-year CIP will be presented to the Planning Commission for confirmation that the plan conforms with the City’s General Plan. The updated CIP will then be included in the proposed Mid-Cycle FY2022-23 Budget that will be presented for consideration and approval by the City Council on June 14, 2022. ALTERNATIVES: The following alternatives are provided for the Council’s consideration: 1. Review and provide direction on the 5-year CIP and 5-year Local Sales Tax Fund expenditure program; 2. Provide other direction to staff. ADVANTAGES: Providing direction will assist staff in developing a 5-year CIP and 5-year Local Sales Tax Fund expenditure program that is responsive to the City Council and community priorities, while maintaining economic feasibility. DISADVANTAGES: There are no disadvantages to providing information for the community, City Council, or staff regarding the CIP and Local Sales Tax Fund budget priorities. ENVIRONMENTAL REVIEW: No environmental review is required for this item. PUBLIC NOTIFICATION AND COMMENTS: The Agenda was posted at City Hall and on the City’s website in accordance with Government Code Section 54954.2. Attachments: 1. 5-Year CIP for FY 2022-23 through 2026-27 2. Local Sales Tax 5-Year Revenue and Expenditure Plan Page 339 of 386 Project Number Request Title Department Funding Sources Budget FY 2021-22 2021-22 Anticipated to Complete or Carryover Budget FY 2022-23 FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 5-Year Total MISCELLANEOUS PROJECTS 350-5450 Corporation Yard Renovations Public Works 4910 - General Fund 20,000 13,900 26,100 20,000 20,000 20,000 20,000 4930 - Sewer Fund 30,000 20,849 24,151 15,000 15,000 15,000 15,000 4940 - Water Fund 30,000 20,849 24,151 15,000 15,000 15,000 15,000 4950 - Sales Tax 20,000 13,900 6,100 280,502 350-5451 Police Station Firing Range Police Department 4950 - Sales Tax ----120,000 --120,000 350-5453 Financial Management Software Administrative Services 4930 - Sewer Fund --47,500 47,500 --- 4940 - Water Fund - - 47,500 47,500 - - - 4950 - Sales Tax - - 130,000 130,000 - - - 450,000 350-5455 City Building Safety Improvement Project Public Works 4950 - Sales Tax 50,000 3,263 ------ 350-5463 Woman's Club Improvements Recreation Services 4950 - Sales Tax --2,200 ---- 4809 - Donations 2,167 2,167 - - - - - 2,200 350-5468 Public Safety Video Cameras Police Department 4929 - COPS 80,000 -125,000 62,500 62,500 62,500 - 4950 - Sales Tax - - - 62,500 62,500 62,500 - 500,000 350-5470 Report Management System (RMS) Upgrade at PD Police Department 4929 - COPS 150,000 150,000 - - - - - - 350-5471 Utility Undergrounding on East Grande Ave Community Development 4950 - Sales Tax 75,000 ------- 350-5472 Network Switch Replacement Administrative Services 4950 - Sales Tax 22,000 22,000 24,000 ----24,000 350-5473 Replacement Generator at Station 1 FCFA 4499 - Other Gov Agencies 42,500 42,500 272,000 ---- 4910 - General Fund 46,780 46,780 4950 - Sales Tax 46,738 46,738 272,000 - - - - 544,000 350-5474 Fuel Management System/Dispenser Replacement Public Works 4910 - General Fund 21,235 21,235 - - - - - 4930 - Sewer Fund 10,940 10,940 - - - - - 4940 - Water Fund 10,940 10,940 - - - - - 4950 - Sales Tax 21,235 21,235 - - - - - - 350-5475 ADA Transition Plan Community Development 4463 - CDBG ---12,391 --- 4499 - Other Gov Agencies - - - 23,500 - - - 4910 - General Fund - - - 75,834 - - - 111,725 350-5476 City Hall Front Door ADA (CDBG)Public Works 4463 - CDBG 53,341 53,341 ------ 350-54XX Le Point Street Parking Lot Expansion Community Development 4950 - Sales Tax --85,000 150,000 ---235,000 350-54XX Short Street Plaza Community Development 4910 - General Fund --30,000 ----30,000 350-54XX Ash Street Restroom Roof Replacement Public Works 4914 - Park Improvement ---65,000 ---65,000 350-54XX Server Replacement - City Hall Administrative Services 4950 - Sales Tax ---30,000 ---30,000 350-54XX Email Archive Administrative Services 4950 - Sales Tax ---10,000 ---10,000 350-54XX Network Storage Refresh - City Hall Administrative Services 4950 - Sales Tax ----80,000 --80,000 350-54XX Shoretel (Phones)Administrative Services 4950 - Sales Tax ----50,000 --50,000 350-54XX Firewall - City Hall Administrative Services 4950 - Sales Tax ----40,000 --40,000 350-54XX Server Replacement - Police Dept. Administrative Services 4950 - Sales Tax ----30,000 --30,000 350-54XX Secondary Network Storage (PD In- Car/Body)Police Department 4950 - Sales Tax - - - - 12,000 - - 12,000 350-54XX Rate Study Update Administrative Services 4930 - Sewer Fund -----30,000 - 4940 - Water Fund - - - - - 30,000 - 60,000 350-54XX Council Chambers Audio/Video Administrative Services 4950 - Sales Tax -----25,000 -25,000 Total Miscellaneous Projects 732,876 500,637 1,115,702 766,725 507,000 260,000 50,000 2,699,427 Page 340 of 386 Project Number Request Title Department Funding Sources Budget FY 2021-22 2021-22 Anticipated to Complete or Carryover Budget FY 2022-23 FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 5-Year Total PARKS PROJECTS 350-5515 Various Park Renovations Public Works 4914 - Park Improvement 37,725 37,725 30,000 30,000 30,000 30,000 30,000 150,000 350-5540 Central Irrigation Controls Public Works 4914 - Park Improvement 10,000 10,000 5,000 5,000 ---10,000 350-5554 Soto Sports Complex ADA Bleachers Public Works 4914 - Park Improvement 5,000 5,000 10,000 5,000 5,000 5,000 5,000 30,000 350-5555 Strother Park BBQ No. 2 Repairs Public Works 4914 - Park Improvement ---8,000 ---8,000 350-5556 Recreation Services / Community Center Building Recreation Services 4950 - Sales Tax 46,195 - 46,195 150,000 - - - 196,195 350-5559 ADA Drinking Fountains Public Works 4914 - Park Improvement 12,484 12,484 - 6,000 6,000 6,000 6,000 24,000 350-5561 Soto Sports Complex Courts Resurfacing Public Works 4914 - Park Improvement 40,000 40,000 - - - - - - 350-5563 Citywide Trash/Recycle Receptacle Replacement Public Works 4914 - Park Improvement 6,000 6,000 - 6,000 6,000 6,000 6,000 24,000 350-5564 Elm St. Park Playground Structure Recreation Services 4458 - State Grant 177,952 177,952 - - - - - 4809 - Donations 21,000 21,000 - - - - - 4914 - Park Improvement 34,106 34,106 - - - - - 4950 - Sales Tax 136,426 136,426 - - - - - - 350-5565 Soto Sports Complex Fencing Repairs Public Works 4914 - Park Improvement 15,742 15,742 15,000 15,000 15,000 15,000 15,000 75,000 350-55XX Various Open Space Fire / Fuel Management Public Works 4950 - Sales Tax - - 100,000 100,000 100,000 - - 300,000 Total Parks Projects 542,630 496,435 206,195 325,000 162,000 62,000 62,000 817,195 Project Number Request Title Department Funding Sources Budget FY 2021-22 2021-22 Anticipated to Complete or Carryover Budget FY 2022-23 FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 5-Year Total STREETS PROJECTS 350-5601 Fair Oaks/Orchard Rd Intersection Imp Community Development 4950 - Sales Tax 50,000 - - - - - - - 350-5613 Bricks between 208 & 214 E Branch Public Works 4950 - Sales Tax 65,000 65,000 - - - - - - 350-5601 Fair Oaks/Orchard Avenue Intersection Improvements Community Development 4825 - Developer - - 50,000 - - - - 50,000 350-5606 Halcyon Complete Streets Community Development 4910 - General Fund 24,945 24,945 - - - - - - 350-5607 Pedestrian Crossing Enhancements Community Development 4479 - HSIP 45,000 45,000 205,000 - - - - 4482 - RSHA 100,000 100,000 - - - - - 205,000 350-5608 Bridge Street Bridge Rehabilitation Public Works 4807 - Expense Recovery 34,120 34,120 - - - - - - 350-5611 Bridge Preventive Maintenance Plan Community Development 4487 - HBP - - - 23,018 - - - 4950 - Sales Tax - - - 2,982 - - - 26,000 350-5612 Systematic Safety Analysis Report Program (SSARP)Community Development 4910 - General Fund 7,693 7,693 - - - - - - 350-5614 Bridge Street Bridge Habitat Mitigation Public Works 4487 - HBP 273,596 273,596 48,628 48,628 48,628 48,628 - 194,512 350-5620 Swinging Bridge Rehabilitation Community Development 4950 - Sales Tax 616,269 616,269 550,000 - - - - 550,000 350-5629 Guardrail Replacement Public Works 4950 - Sales Tax 55,000 55,000 55,000 55,000 - - - 110,000 350-5638 Pavement Management Program Public Works 4486 - USHA 131,000 131,000 68,900 68,900 - - - 4910 - General Fund 1,751,000 982,315 768,685 - - - - 4920 - SB1 468,072 468,072 307,200 307,200 307,200 307,200 307,200 4950 - Sales Tax 1,717,837 982,315 3,641,763 1,573,900 942,800 1,250,000 1,667,800 11,518,748 350-5642 Brisco Road / US 101 Interchange Community Development 4482 - RSHA 30,000 30,000 - - - - - 4490 - STIP - - - - - 3,312,000 3,312,000 44XX - MPDG - - - 1,848,100 2,411,100 11,068,400 11,068,400 4922 - Traffic Signalization - - - 959,000 - - - 4926 - Transportation Facility 787,468 787,468 590,000 1,031,000 - - - 35,600,000 350-5658 Sidewalk Repairs and Improvements Public Works 4950 - Sales Tax 148,297 118,706 149,591 - 240,000 - 240,000 4463 - CDBG - - 56,333 - - - - 685,924 350-5671 East Branch Streetscape Community Development 4482 - RSHA 390,000 - - - - 390,000 - 4950 - Sales Tax 98,835 - - - - 98,835 - 488,835 350-5678 Castillo Del Mar Road Improvements Public Works 4499 - Other Gov Agencies 79,054 79,054 - - - - - - 4825 - Developer 536,500 536,500 - - - - - 4950 - Sales Tax 78,507 78,507 - - - - - - 350-5679 Traffic Way Bridge Replacement Community Development 4487 - HBP 786,111 786,111 - 635,645 9,635,251 - - 4950 - Sales Tax 101,849 101,849 - 82,355 1,248,349 - - 11,601,600 350-5681 Fair Oaks/Halcyon Road Traffic Signal Update Community Development 4922 - Traffic Signalization - - 40,000 - - - - 40,000 350-56XX Active Transportation Plan Community Development 44XX - ATP --110,662 110,662 --- 4950 - Sales Tax - - 14,338 14,338 - - - 250,000 350-56XX Arroyo Grande Creek Stabilization Public Works 4950 - Sales Tax --40,000 ----40,000 Total Streets Projects 8,376,153 6,303,520 6,696,100 6,760,728 14,833,328 16,475,063 16,595,400 61,360,619 Page 341 of 386 Project Number Request Title Department Funding Sources Budget FY 2021-22 2021-22 Anticipated to Complete or Carryover Budget FY 2022-23 FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 5-Year Total DRAINAGE PROJECTS 350-5778 Drainage and Creek Preservation ProjectsCommunity Development 4950 - Sales Tax 53,500 - - - - - - - 350-5794 Corrugated Metal Pipe (CMP) Lining Public Works 4950 - Sales Tax ------100,000 4965 - ARPA - - 500,000 600,000 350-5795 Oak Park Boulevard / El Camino Real Storm Drain System Public Works 4965 - ARPA 400,000 15,430 384,570 - - - - 384,570 350-5796 Storm Water Master Plan Update / Watershed Management Plan Community Development 4965 - ARPA - - 222,500 - - - - 222,500 350-5797 Storm Drain System at 251 East Grand Avenue Public Works 4965 - ARPA 525,800 525,800 - - - - - - 350-5798 Trash Capture Devices Community Development 4950 - Sales Tax - - - 55,800 - - - - 4965 - ARPA - - - 158,200 - - - 214,000 Total Drainage Projects 979,300 541,230 1,107,070 214,000 - - 100,000 1,421,070 Project Number Request Title Department Funding Sources Budget FY 2021-22 2021-22 Anticipated to Complete or Carryover Budget FY 2022-23 FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 5-Year Total WATER PROJECTS 640-5911 Phased Mains Replacement - Cornwall Street, South Halcyon Road to El Camino Real Public Works 4965 - ARPA - - - 578,700 - - - 578,700 640-5911 Phased Mains Replacement - South Halcyon Road, Cornwall Street to Fair Oaks Avenue Public Works 4942 - Water Facility - - 269,750 - - - - 4965 - ARPA 232,750 232,750 247,500 - - - - 517,250 640-5911 Phased Mains Replacement - South Halcyon Road, Cornwall Street to Fair Oaks Avenue Public Works 4940 - Water Fund - - - - 673,500 - - 4942 - Water Facility - - - - 100,000 - - 773,500 640-5944 Water Well #11 Facilities Public Works 4943 - Water Availability 42,771 42,771 - - - - - - 640-5946 Galvanized Service Replacements Public Works 4940 - Water Fund 98,826 98,826 - - - - - - 640-5948 Reservoir No. 4 Exterior Coating Public Works 4965 - ARPA 147,500 - - - - - - - 640-5953 SCADA Software/Electronics Upgrade Public Works 4940 - Water Fund 240,100 240,100 - - - - - - 640-5973 Phased Main Replacement - Highway 101 Crossing Upgrade, El Camino Real to West Branch Street Public Works 4965 - ARPA - - 291,200 - - - - 291,200 640-5975 Central Coast Blue Public Works 4943 - Water Availability 1,531,181 1,531,181 540,971 - - - - 540,971 640-5976 Andre Drive / Los Ciervos Court Interconnect Public Works 4965 - ARPA 100,000 - - - - - - - 640-59XX Water Master Plan Update Public Works 4940 - Water Fund - - - 100,000 - - - 100,000 Total Water Projects 2,393,128 2,145,628 1,349,421 678,700 773,500 - - 2,801,621 Project Number Request Title Department Funding Sources Budget FY 2021-22 2021-22 Anticipated to Complete or Carryover Budget FY 2022-23 FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 5-Year Total SEWER PROJECTS 612-5817 Trenchless Sewer Rehabilitation - Alder Street and Cameron Court Public Works 4825 - Developer - - - - 1,185 - - 4930 - Sewer Fund - - - - 254,315 - - 255,500 612-5821 Trenchless Sewer Rehabilitation - Wood, Sandalwood, Cameron, Woodland Backyards Public Works 4965 - ARPA 267,200 267,200 - - - - - - 612-5826 Trenchless Sewer Rehabilitation - Woodland Drive and Ash Street Public Works 4825 - Developer 11,788 - - - - 4930 - Sewer Fund 120,412 - - - - 132,200 612-5849 Maintenance Hole Rehabilitation Public Works 4825 - Developer 47,254 47,254 4930 - Sewer Fund 60,000 60,000 612-5852 The Pike Sewer Line Replacement Public Works 4930 - Sewer Fund 24,977 - - - - 24,977 612-5854 Wastewater Master Plan Update Public Works 4930 - Sewer Fund - 100,000 - - - 100,000 612-58XX Trenchless Sewer Rehabilitation - Pilgrim Way, Orchard Avenue, West Cherry Avenue and California Street Public Works 4965 - ARPA - 282,000 - - - 282,000 Total Sewer Projects 374,454 374,454 157,177 382,000 255,500 - - 794,677 Grand Total, All Capital Projects 13,398,541 10,361,904 10,631,665 9,127,153 16,531,328 16,797,063 16,807,400 69,894,609 Page 342 of 386 Item 2021-22 Budget 2021-22 Anticipated to Complete or Carryover 2022-23 Budget 2023-24 2024-25 2025-26 2026-27 5-Year Total Castillo Del Mar Road Improvements 78,507 78,507 - - - - - - East Branch St Streetscape 98,835 - - - - 98,835 - 98,835 Fair Oaks/Orchard Rd Intersection Imp 50,000 - - - - - - - Swinging Bridge Reinforcement 616,269 616,269 550,000 - - - - 550,000 Traffic Way Bridge Improvements 101,849 101,849 - 82,355 1,248,349 - - 1,330,704 Brisco Rd Interchange Project - - - -- - - - Subtotal Transportation 945,460 796,625 550,000 82,355 1,248,349 98,835 - 1,979,539 Pavement Management Program 1,717,837 982,315 3,641,763 1,573,900 942,800 1,250,000 1,667,800 9,076,263 Striping and Sidewalk Improvements 148,297 118,706 149,591 - 240,000 - 240,000 629,591 Bridge Preventative Maintenance Plan - - - 2,982 - - - 2,982 Bricks between 208 & 214 E Branch 65,000 65,000 - - - - - - Guardrail Replacement 55,000 55,000 55,000 55,000 - - - 110,000 Active Transportation Plan - - 14,338 14,337 - - - 28,675 Branch Mill Road Stabilization - - 40,000 - - - - 40,000 Subtotal Street/Park Improvements 1,986,134 1,221,021 3,900,692 1,646,219 1,182,800 1,250,000 1,907,800 9,887,511 Drainage and Creek Preservation Projects 53,500 - - - - - - - CMP Replacements - - - - - - 100,000 100,000 Trash Capture Devices - - - 55,800 - - - 55,800 Subtotal Drainage Improvements 53,500 - - 55,800 - - 100,000 155,800 Fire JPA 528,894 528,894 528,894 560,628 588,659 606,319 618,445 2,902,945 Fire Replacement Type III Wildland Fire Engine - - 24,000 24,000 24,000 24,000 24,000 120,000 Fire Replacement Ladder Truck - - - - - 105,400 105,400 210,800 Police Senior Officer Position 175,000 175,000 178,500 182,100 185,700 189,400 193,200 928,900 Narcotics Task Force 24,600 24,600 24,600 24,600 24,600 24,600 24,600 123,000 Public Safety Video Cameras - - - 62,500 62,500 62,500 - 187,500 Police Firing Range - - - - 120,000 - - 120,000 Animal Services Building Debt Service 53,825 53,825 60,000 60,000 60,000 60,000 60,000 300,000 Subtotal Public Safety 782,319 782,319 815,994 913,828 1,065,459 1,072,219 1,025,645 4,893,145 City Hall Debt Service 20,000 20,000 20,000 20,000 20,000 20,000 20,000 100,000 Corporation Yard Renovations 20,000 13,900 6,100 - - - - 6,100 Elm Park/Soto Complex Master Plan 46,195 -46,195 150,000 - - - 196,195 Elm St. Park Playground Structure 136,426 136,426 - - - - - - City Building Safety Improvement Project 50,000 3,263 - - - - - - Fire Station 1 Generator Replacement - 46,738 272,000 - - - - 272,000 Various Open Space Fire/Fuel Management - - 100,000 100,000 100,000 - - 300,000 Woman's Club Improvements - - 2,200 - - - - 2,200 Le Point Street Parking Lot Expansion - - 85,000 150,000 - - - 235,000 Financial Management System - - 130,000 130,000 - - - 260,000 Network Switch Replacement 22,000 22,000 24,000 - - - - 24,000 Server Replacement - - - 30,000 - - - 30,000 5-Year Revenue and Expenditure Plan CITY OF ARROYO GRANDE ATTACHMENT 2 Page 343 of 386 Item 2021-22 Budget 2021-22 Anticipated to Complete or Carryover 2022-23 Budget 2023-24 2024-25 2025-26 2026-27 5-Year Total 5-Year Revenue and Expenditure Plan CITY OF ARROYO GRANDE Email Archive - - - 10,000 - - - 10,000 Network Storage Expansion - City Hall - - - - 80,000 - - 80,000 Firewall - City Hall - - - - 40,000 - - 40,000 Server Replacement - PD - - - - 30,000 - - 30,000 Secondary Network Storage (PD In-Car/Body)- - - - 12,000 - - 12,000 Shoretel (Phones)- - - - 50,000 - - 50,000 Council Chambers Audio/Video - - - - - 25,000 - 25,000 Utility Undergrounding on East Grande Ave 75,000 - - - - - - - Fuel Management System/Dispenser Replcmnt.21,235 21,235 - - - - - - Subtotal City Facilities 390,856 263,562 685,495 590,000 332,000 45,000 20,000 1,672,495 Annual Audit and Sales Tax Report 7,500 7,500 7,500 7,500 7,500 7,500 7,500 37,500 Contingency 25,000 25,000 25,000 25,000 25,000 25,000 25,000 125,000 Subtotal Other 32,500 32,500 32,500 32,500 32,500 32,500 32,500 162,500 Total Expenses 4,190,769 3,096,027 5,984,681 3,320,702 3,861,108 2,498,554 3,085,945 18,750,990 Revenue 2,489,500 2,797,000 2,846,000 2,926,000 2,984,500 3,044,200 3,105,100 14,905,800 Revenue Over/(Under) Expenses (1,701,269) (299,027) (3,138,681) (394,702) (876,608) 545,646 19,155 Beginning Fund Balance 4,761,493 4,761,493 4,462,467 1,323,785 929,084 52,476 598,122 Estimated Ending Fund Balance 3,060,225 4,462,467 1,323,785 929,084 52,476 598,122 617,277 % Fund Balance of Estimated Revenues 123%160%47%32%2%20%20% Page 344 of 386 Item 11.b. MEMORANDUM TO: City Council FROM: Whitney McDonald, City Manager Timothy Carmel, City Attorney Nicole Valentine, Administrative Services Director SUBJECT: Consideration of Placing a Local Transactions and Use Tax (“Sales Tax”) Measure on the November 8, 2022 Ballot DATE: May 24, 2022 SUMMARY OF ACTION: Adoption of the proposed Resolutions and Introduction of the Proposed Ordinance will enable the voters to determine through the November 8, 2022 General Municipal Election whether to enact a local transactions and use tax (“sales tax”) that would provide general revenue to the City. IMPACT ON FINANCIAL AND PERSONNEL RESOURCES: If approved by the voters, the proposed sales tax measure would generate approximately $5.6 million in additional annual revenue . As a general tax, the proceeds would be deposited into the General Fund and may be used for any lawful purpose, as designated by the City Council, including being allocated towards maintaining the City’s streets, sidewalks, and stormwater infrastructure, as well as for other underfunded City programs and services. Funding for the November 2022 General Municipal Election has been included in the Biennial Budget for Fiscal Years 2021-23 in the amount of $28,000, and is anticipated to cover costs associated with printing the ballot measure in the Sample Ballot booklet. It is recommended that the City engage the services of a consultant to support public outreach and information regarding the proposed sales tax measure in an amount not to exceed $25,000, which would be covered through existing consultant services budgets included in the adopted Biennial Budget. RECOMMENDATION: 1) Adopt the proposed Resolution ordering the submission to the qualified electors of the City a measure relating to the establishment of a local transactions and use tax (hereinafter referred to as a "sales tax") at the General Municipal Election to be held on Tuesday, November 8, 2022, as called by Resolution; 2) Introduce the proposed Ordinance adding Chapter 3.23 to Title 3 of the Arroyo Grande Municipal Code regarding a transactions and use tax; 3) Adopt the proposed Resolution setting priorities for filing a Page 345 of 386 Item 11.b. City Council Consideration of Placing a Local Transactions and Use Tax (“Sales Tax”) Measure on the November 8, 2022 Ballot May 24, 2022 Page 2 written argument regarding a City measure and directing the City Attorney to prepare an impartial analysis of the measure; 4) Adopt the proposed Resolution providing for the filing of rebuttal arguments for City measures submitted at municipal elections; and 5) Approve the argument to be submitted in favor of the measure. BACKGROUND: On May 28, 2019, the City Council discussed the City’s revenue and potential opportunities to increase revenue in the face of rising business costs. At that time, the staff report recognized the work of previous assessments of unfunded or severely underfunded needs for core City infrastructure, including pavement (roads and parking lots), sidewalks, drainage facilities, parks, and government buildings (Attachment 9). These assessments indicated that, at the time, the City needed to invest an additional $2.4 million annually to maintain existing facilities. It was also noted that this investment would still result in a decrease in the pavement condition index (PCI) of the City’s existing street infrastructure over time and that an additional $1.16 million would be needed to keep the PCI at 70 and avoid larger maintenance costs in the future. Together, these needs totaled over $3.5 million in unfunded annual infrastructure maintenance in May 2019. Following discussion on May 28, 2019, Council directed staff to seek more information about community surveys and the ballot measure process for a potential local sales tax increase. Further information was provided regarding community survey options on August 13, 2019, and Council authorized the City Manager to select a professional research firm to conduct a statistically valid voter opinion survey of Arroyo Grande voters. On January 28, 2020, Council received a presentation of the community survey results from True North Research (Attachment 8). The survey conducted by True North Research evaluated community interest in a local (City of Arroyo Grande) sales tax revenue measure. The survey consisted of a statistically valid sample of residents (541 residents were surveyed) to objectively evaluate the viability of passing a local ballot measure and to understand voter’s preferences for the funds raised. The survey found that Arroyo Grande voters, at that time, have a high opinion of the quality of life in the City and that they value the services they receive from the City. Together, according to the survey, these sentiments translated into “solid natural support (57%)” for establishing a one percent local sales tax to provide funding for general City services. In the survey, when presented with a list of services that could be funded by the sales tax measure, voters were most interested in using the money to:  Maintain local streets and repair potholes.  Repair and maintain public buildings and infrastructure including sidewalks, curbs, flood prevention infrastructure, and storm drains.  Maintain parks and recreation facilities including Soto S ports complex, courts, fields, playgrounds, and community centers. Page 346 of 386 Item 11.b. City Council Consideration of Placing a Local Transactions and Use Tax (“Sales Tax”) Measure on the November 8, 2022 Ballot May 24, 2022 Page 3  Provide fire protection and emergency medical response services, including police patrols, drug and crime prevention, fire, emergency medical, and 9-1-1 emergency response.  Maintain street, sidewalk, and pothole maintenance.  Address impacts from homelessness.  Maintain parks, recreation, childcare, and senior programs. At its June 23, 2020 meeting, the City Council received a comprehensive presentation regarding a proposed revenue measure to address the City’s future funding needs and provided direction to staff to prepare a proposed 1% (increasing from 7.75% to 8.75%) local sales tax revenue measure for the November 3, 2020 ballot (Attachment 7). On July 14, 2020, the City Council considered placing the Local Transaction and Use Tax Measure on the November 3, 2020 Ballot. Extensive Council discussion ensued and, ultimately, Council did not direct pursuit of a measure at that time, primarily due to the unknown financial impacts on the City’s residents as a result of the COVID-19 pandemic. On April 27, 2021, the City Council considered and established goals and priorities for incorporation into the upcoming Biennial Budget. The adopted goals and priories were included within the Fiscal Years 2021-23 Biennial Budget and addressed three broad categories:  Investing in the Future  Investing in City Infrastructure and Facilities  Investing in People. Within the “Investing in City Infrastructure and Facilities” category, an item was included to “identify and pursue short- and long-term funding mechanisms, such as a sales tax measure, for pavement maintenance and other infrastructure maintenance needs.” At its April 26, 2022 meeting, the City Council received a comprehensive report and presentation regarding the City’s pavement, sidewalk, and stormwater infrastructure maintenance needs and options for financing those needs, including a potential general revenue sales tax measure. (Attachment 6). As explained in the staff report, in February 2022, the City contracted with Pavement Engineering Inc. (PEI) to update the City’s Pavement Management System. The final report was received on April 21, 2022, and presented to the City Council at its April 26, 2022 meeting. The City currently maintains approximately 67.5 centerline miles of roads representing 13,922,291 square feet of pavement with a replacement value of approximately $313,566,000 as calculated by StreetSaver. The City has a comprehensive Pavement Management Plan (PMP) and, on February 14, 2017, the City Council endorsed the “Critical Point Management” methodology for the City’s Pavement Management System (PMS). The Critical Point Strategy approach selects the road segments for repair or resurfacing that are at a “critical point” of deterioration. The critical point is a point located Page 347 of 386 Item 11.b. City Council Consideration of Placing a Local Transactions and Use Tax (“Sales Tax”) Measure on the November 8, 2022 Ballot May 24, 2022 Page 4 on the pavement deterioration graph which indicates the Pavement Condition Index (PCI) value is about to drop to a level which would trigger a more expensive m aintenance or rehabilitation approach. The Critical Point Strategy is a long-range methodology that maintains and improves roadways before they slip into a PCI range that reflects costlier repairs. As reported in the 2022 Pavement Management Program Upda te, despite past efforts, the condition of the City’s streets has declined. On a pavement condition scale of 0 to 100, the City’s streets now rank an average PCI of 56, down from an average PCI of 69 in 2016. As explained in the April 26, 2022 staff report, in order to maintain an overall PCI of “Fair” (PCI range of 51 to 70), approximately $6.25 million is needed annually to maintain the City’s current pavement PCI. However, the City has historically only been able to allocate approximately $1.25 million annually to pavement maintenance from its existing revenue sources. PEI generated five (5) scenario projections of future pavement conditions in the City and the costs to obtain and maintain those conditions over the course of ten years, which were presented in the April 26, 2022 staff report as follows: Chart 1 Page 348 of 386 Item 11.b. City Council Consideration of Placing a Local Transactions and Use Tax (“Sales Tax”) Measure on the November 8, 2022 Ballot May 24, 2022 Page 5 At the current funding level of $1.25M/Yr., it is predicted the PCI of the entire system will continue to deteriorate from 56 to 35, a 21 PCI point drop over the next 10 years, and the backlog of deferred maintenance will grow from $70 million to $209 million, an increase of 197%. A PCI of 35 falls within the Poor Condition category. An example of a 35 PCI is Brighton Avenue, between Courtland and North Elm Street. Streets that have fallen into the Poor Condition Category require more expensive repair treatments such as light to heavy rehabilitation as opposed to lower cost light to heavy maintenance treatments. In addition, when repairs are deferred, they fall into a deferred maintenance backlog that creates a vicious cycle. As necessary repairs are postponed, streets start to deteriorate requiring more expensive repair treatments. The outcome of this situation was depicted in the April 26, 2022 staff report as follows: Chart 2 Funding for the City’s annual street repairs program is provided through a combination of state, regional, and local funding sources, including local sales tax revenue. In 2006, Arroyo Grande voters approved Measure O-06, creating a half percent local transactions and use tax and bringing the overall sales tax rate in Arroyo Grande to 7.75%. This half cent sales tax currently generates approximately $2.5 million annually. The revenue from this measure has been used to fund street and park improvements, public safety services, drainage improvements, City facilities, and transportation projects. To ensure Page 349 of 386 Item 11.b. City Council Consideration of Placing a Local Transactions and Use Tax (“Sales Tax”) Measure on the November 8, 2022 Ballot May 24, 2022 Page 6 accountability, Measure O-06 required: 1) the City to publish and distribute an annual report to each household on the revenues and expenditures from the sales tax proceeds; and 2) a review and public hearing by the City Council every five years to determine whether the sales tax is necessary to remain in effect. The City has completed these steps since Measure O-06 was approved and went into effect in April 2007. The most recent 5-year report covering the period of July 2016 through June 2021 and the public hearing to consider continuation of the local sales tax will be conducted at the May 24, 2022 City Council meeting (the same date as this item). Based on the identified needs and current funding sources available to the City for its pavement maintenance, it was explained in the April 26, 2022 staff report that there are no long-term options available that can overcome the condition and replacement cost of the City's streets without a new and significant source of income . Additionally, the April 26, 2022 report described ongoing and deferred maintenance needs for the City’s sidewalks and stormwater infrastructure. In 2016, City Public Works staff completed a deferred maintenance assessment that identified each sidewalk segment in need of repair and estimated a total cost of $1,346,250 to repair all sidewalk defects in the City. Since 2016, the City has been able to allocate an average of $120,000 annually to sidewalk repairs. Funding for sidewalk repairs is provided almost entirely from local sales tax revenue, with occasional funds (e.g. up to $50,000 in FY 2018-19) provided by regional State Highway Account (SHA) grant. Similarly, stormwater infrastructure repairs are not paid for through the City’s Water and Wastewater Enterprise Funds and have, instead, been funded through the CIP Budget using local sales tax revenue. The City’s existing stormwater infrastructure requires constant repair, replacement, and maintenance. According to a 2016 assessment of the City’s existing drainage facilities, $238,000 is needed annually to complete necessary improvements to avoid costly failures and areas of flooding. On average, the City has been able to allocate $100,000 to these improvements. Additionally, the City has approximately 2.57 miles of existing corrugated metal pipe (CMP) facilities, which are aging and will require lining or replacement before they fail. It is estimated that lining of the City’s existing CMPs will cost approximately $4 million. Although the City has allocated $500,000 in American Rescue Plan Act funding toward CMP lining, it is anticipated that an additional $3.5 million is needed to complete the lining. The April 26, 2022 staff report explained that revenue from a new sales tax measure will enable the City to better fund these needed improvements. Staff’s presentation provided during the April 26, 2022 discussion also included a description of the distinction between a special tax and a general revenue tax. While a general revenue measure raises revenue for general government purposes and is subject to a majority (50% +1) vote for approval, a special tax earmarks the funding for a specific or single purpose and is subject to a 2/3rds (66.66%) vote for approval. According to Page 350 of 386 Item 11.b. City Council Consideration of Placing a Local Transactions and Use Tax (“Sales Tax”) Measure on the November 8, 2022 Ballot May 24, 2022 Page 7 information provided by California City Finance, results of 2020 local sales tax measures in California included the following:  14 City Special Tax Measures – 6 passed (42.8% passage rate)  132 City General Tax Measures – 108 passed (82.8% passage rate) By comparison, Measure O-06 passed with 50.11% approval. It was noted that significant assistance from the public would be needed to advocate for passage of a special tax to meet the 2/3rds approval threshold. Additionally, staff recommended that a potential new 1% sales tax measure include the following provisions that provide accountability and transparency, consistent with the practices included in Measure O-06:  Publication of an Annual Local Sales Tax Allocation Report  Public hearing to determine ongoing necessity for the tax every 5 years Following consideration and discussion of the presentation on April 26, 2022, t he City Council provided direction to staff to prepare a proposed 1% (increasing from 7.75% to 8.75%) local sales tax revenue measure for the November 8, 2022 ballot. ANALYSIS OF ISSUES: The City Council has received information and discussed the City’s revenue and potential opportunities to increase revenue in the face of rising costs. The revenue from a new 1% local sales tax measure would be deposited into the General Fund and may be us ed for any lawful purpose, as designated by the City Council, and may be allocated towards maintaining the City’s streets, sidewalks, and stormwater infrastructure , as well as for other City programs and services. If approved, the proposed sales tax measure would generate approximately $5.6 million annually and is intended to augment the existing Measure O-06 local sales tax fund created in 2006. City staff met recently with HdL, the City’s Sales Tax Consultant, to review the October through December 2021 a ctual sales tax revenues received and to discuss projections for the remaining fiscal year. HdL provided Measure O-06 projections for FY 2021-22, which are now expected to be $2,797,000. With this updated information, City staff have included language in the proposed measure to reflect an estimated $5.6 million ($2,797,000 x 2 =$5,594,000) in additional revenue to the City if the voters approve the measure. This updated estimate is an increase of $600,000 compared to the total anticipated revenue discussed at the April 26, 2022 Council Meeting. Funding received from a new sales tax measure would allow the City to expand its increasingly underfunded Capital Improvement Projects (CIP) and public facility maintenance funds including the City’s Annual Street Repairs Program, Annual Concrete (Sidewalks) Repairs Program, and maintenance of storm water and drainage systems, as well as provide funds for other City programs and facilities. Page 351 of 386 Item 11.b. City Council Consideration of Placing a Local Transactions and Use Tax (“Sales Tax”) Measure on the November 8, 2022 Ballot May 24, 2022 Page 8 The potential additional funding for these important annual projects would result in more miles of street rehabilitation, more sidewalk repairs and more rehabilitation of aging storm drain piping. Structure of the Sales Tax Measure Following discussion at the April 26, 2022 meeting, the Council provided feedback and direction regarding a proposed 1% general sales tax measure to address the City’s future funding needs for critical City infrastructure, including maintenance and repair of streets, sidewalks, potholes, stormwater and drainage facilities, as well as other underfunded City programs and facilities. In order to place a tax measure on the November 8, 2022 ballot, a 2/3 vote of the City Council (at least 4 members) must approve the proposed Resolutions and Ordinance. Revenue and Taxation Code Section 7285.9 authorizes the City to increase a transactions and use tax for general purposes, and provides that the ordinance proposing the tax is to be approved by a two-thirds vote of all members of that governing body and the tax also has to be approved by a majority vote of the qualified voters of the City voting in an election on the issue. Likewise, for general taxes , Government Code Section 53724(b) provides that the ordinance or resolution proposing the tax has to be approved by a 2/3rd vote of the legislative body. The proposed measure includes provisions for citizen review of reported revenue and expenditures to establish accountability and transparency, which is important when structuring government operations to maintain trust and efficiency. First, consistent with Measure O-06 funds, the measure will require the City to mail to every household an annual report of prior year expenditures and proposed expenditure of the additional sales tax proceeds for the following year. Second, the City Council will be required to conduct a review and public hearing every five (5) years to determine if the sales tax is still necessary. If other funding sources became available to replace the sales tax revenue, the City Council would have the authority to reduce or eliminate the local sales tax amount. Ballot language has also been prepared to comply with the requirements of law. Elections Code Section 13119(b) and (c) provides as follows: (b) If the proposed measure imposes a tax or raises the rate of a tax, the ballot shall include in the statement of the measure to be voted on the amount of money to be raised annually and the rate and duration of the tax to be levied. Page 352 of 386 Item 11.b. City Council Consideration of Placing a Local Transactions and Use Tax (“Sales Tax”) Measure on the November 8, 2022 Ballot May 24, 2022 Page 9 (c) The statement of the measure shall be a true and impartial synopsis of the purpose of the proposed measure, and shall be in language that is neither argumentative nor likely to create prejudice for or against the measure. Accordingly, the following language has been developed for the ballot measure, which is also limited to only 75 words: To provide funding for general governmental use in Arroyo Grande, including maintenance and repair of streets, sidewalks, stormwater and drainage facilities, and for other City programs and facilities, shall an ordinance establishing a one percent sales tax be adopted, providing approximately $5,600,000 annually until ended by the City Council and requiring annual reports on revenues and expenditures, and review and public hearing by the City Council every five years on its necessity? The proposed Ordinance, Resolutions, and Ballot Argument have been prepared and are included with this report for consideration (Attachments 1-5). It is recommended the Council introduce the Ordinance, adopt the Resolutions, and approve the Ballot Argument as presented for placement on the November 8, 2022 ballot. It should be noted that, if successfully introduced, the Ordinance will be considered for adoption at the June 14, 2022 City Council meeting. ALTERNATIVES: The following alternatives are provided for the Council’s consideration: 1. Adopt the Resolutions, introduce the Ordinance, and approve the Ballot Argument pertaining to the placement of a ballot measure on the November 8, 2022 ballot; 2. Modify and adopt the Resolutions and introduce the Ordinance and/or make changes to and approve the Ballot Argument; or 3. Provide other direction to staff. ADVANTAGES: Adoption of the proposed Resolutions and Ordinance, and approval of the Ballot Argument will meet the provisions required by the California Elections, Revenue and Taxation, and Government Codes for submitting to the voters a measure relating to the establishment of a local sales tax in the City. DISADVANTAGES: There are no identified disadvantages related to proposed actions as they are required by State law in order to place a measure on the ballot. Page 353 of 386 Item 11.b. City Council Consideration of Placing a Local Transactions and Use Tax (“Sales Tax”) Measure on the November 8, 2022 Ballot May 24, 2022 Page 10 ENVIRONMENTAL REVIEW: No environmental review is required for this item. PUBLIC NOTIFICATION AND COMMENTS: The Agenda was posted at City Hall and on the City’s website in accordance with Government Code Section 54954.2. A notice regarding the placement of a measure on the November 2022 ballot will be published pursuant to the timeline prescribed by the Elections Code. Attachments: 1. Proposed Resolution – Ordering the Submission to Electors 2. Proposed Ordinance 3. Proposed Resolution – Setting Priorities for Filing Arguments 4. Proposed Resolution – Filing of Rebuttal Arguments 5. Proposed Argument in Favor of Measure 6. April 26, 2022 Staff Report and Attachments 7. June 23, 2020 Staff Report and Attachments 8. January 28, 2020 Staff Report and Attachments 9. May 28, 2019 Staff Report and Attachments Page 354 of 386 ATTACHMENT 1 RESOLUTION NO. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ARROYO GRANDE ORDERING THE SUBMISSION TO THE QUALIFIED ELECTORS OF THE CITY A MEASURE RELATING TO THE ESTABLISHMENT OF A LOCAL TRANSACTION AND USE TAX (SALES TAX) AT THE GENERAL MUNICIPAL ELECTION TO BE HELD ON TUESDAY, NOVEMBER 8, 2022, AS CALLED BY RESOLUTION NO. ___ WHEREAS, while the City of Arroyo Grande is fortunate to have a diversified source of revenues to provide enhanced public services to its residents, businesses and visitors, despite fiscal prudence over the past decade it has been significantly and adversely impacted by growth in operating costs to provide municipal services and facilities that are not matched by projected increases in current levels and types of revenues; and WHEREAS, the City continues to have unfunded or severely underfunded needs to core City infrastructure, including maintenance and repair of streets, sidewalks, potholes, stormwater and drainage facilities, as well as other underfunded City pro grams and projects; and WHEREAS, the City of Arroyo Grande is committed to securing local sources of future revenue to fund these vital general City services and provide fiscal sustainability; and WHEREAS, pursuant to California Elections Code section 9222, the City Council has authority to place measures on the ballot to be considered at a General Municipal Election and desires to place a local funding measure on the ballot at the consolidated Statewide General Election on November 8, 2022; and WHEREAS, the funding raised by this measure will allow the City to: keep up with basic repairs and maintenance to public facilities, storm drains, streets, and sidewalks and avoid more expensive repairs in the future, and provide for other needed City programs and services; and WHEREAS, pursuant to the law of the State of California, a General Municipal Election to be held in the City of Arroyo Grande (“City”) on November 8, 2022, for the election of certain officers of the City has been called per Resolution No.___; and WHEREAS, a request for consolidating the General Municipal Election with the Statewid e General Election on November 8, 2022 has been called per Resolution No.___; and WHEREAS, Revenue and Taxation Code section 7285.9 authorizes the City, subject to approval by a majority vote of the qualified voters of the City voting in an election on the issue, to levy a transactions and use tax pursuant to the Transactions and Use Tax Law at a rate of 0.125% or any multiple thereof for general purposes and projects; and Page 355 of 386 RESOLUTION NO. PAGE 2 WHEREAS, Section 2(b) of Article XIII C of the California Constitution, added by Proposition 218 effective November, 1996, requires that the measure proposing a general tax be submitted to the voters at an election consolidated with a regularly scheduled general election for members of the governing body of the local government; and WHEREAS, pursuant to California Constitution Article XIII C, section 2 and Elections Code section 10201, the City has determined to submit a measure to enact an ordinance establishing a transactions and use tax to the voters at the City’s next regular election; and WHEREAS, pursuant to Government Code Section 53724(b) and Revenue & Ta xation Code Section 7285.9, the ordinance proposing the transactions and use tax, attached to this Resolution as Exhibit A, requires approval by a two-thirds (2/3) vote of all members of the City Council and approval of the ballot measure and the ordinance by majority of the voters casting votes at the General Municipal Election on November 8, 2022; and WHEREAS, if the measure is approved, the City Council also desires to continue its practice of receiving community input on the use of additional revenues generated by the additional sales tax revenues. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Arroyo Grande as follows: SECTION 1. The City Council hereby finds and determines that the foregoing recitals are true and correct and are incorporated herein by this reference. SECTION 2. Under the provisions of the California Elections Code, the City Council, pursuant to its right and authority, does order submitted to the voters at the General Municipal Election to be held on November 8, 2022, the following question: CITY OF ARROYO GRANDE MEASURE ___ To provide funding for general governmental use in Arroyo Grande, including maintenance and repair of streets, sidewalks, stormwater and drainage facilities, and for other City programs and facilities, shall an ordinance establishing a one percent sales tax be adopted, providing approximately $5,600,000 annually until ended by the City Council and requiring annual reports on revenues and expenditures, and review and public hearing by the City Council every five years on its necessity? YES NO SECTION 3. That the full text of the measure is attached hereto as Exhibit A and Page 356 of 386 RESOLUTION NO. PAGE 3 incorporated herein, and should said measure be approved by the requisite vote, the ordinance shall be enacted. SECTION 4. All persons qualified to vote at municipal elections in the City on the day of the election herein provided for shall be qualified to vote on the measure hereby submitted at the General Municipal Election. SECTION 5. In all particulars not recited in this Resolution, the election shall be held and conducted as provided by law for holding general municipal elections in the City. SECTION 6. Notice of the time and place of holding the General Municipal Election is given and the City Clerk is authorized, instructed and directed to give further or additional notice of the election, in the time, form and manner as required by law. SECTION 7. If any section, subsection, sentence, clause, phrase or provision of this Resolution or the application thereof to any person or circumstances is held invalid or unconstitutional by any court of competent jurisdiction, such invalidity or unconstitutionality shall not affect the validity of any other provision or applications, and to this end the provisions of this Resolution are declared to be severable. The City Council hereby declares that it would have passed this Resolution and each section, subsection, sentence, clause, phrase or provision thereof, irrespective of the fact that any one or more sections, subsections, sentences, clauses, phrases or provisions thereof be declared invalid or unconstitutional. SECTION 8. This Resolution shall take effect immediately upon its adoption by a two-thirds vote of the members of the City Council. SECTION 9. The City Clerk of the City of Arroyo Grande is hereby directed to certify to the passage and adoption of this Resolution and to file a certified copy of this Resolution with the Board of Supervisors of San Luis Obispo County and the Registrar of Voters of San Luis Obispo County at least eighty-eight (88) days before the date of the election. On motion by Council Member _________, seconded by Council Member _______, and on the following roll call vote, to wit: AYES: NOES: ABSENT: The foregoing Resolution was passed and adopted this 24th day of May, 2022. Page 357 of 386 RESOLUTION NO. PAGE 4 ___________________________________ ______ CAREN RAY RUSSOM, MAYOR ATTEST: ___ ______ JESSICA MATSON, CITY CLERK APPROVED AS TO CONTENT: _________________________________ WHITNEY MCDONALD, CITY MANAGER APPROVED AS TO FORM: ___________________________________ TIMOTHY J. CARMEL, CITY ATTORNEY Page 358 of 386 RESOLUTION NO. PAGE 5 EXHIBIT A ORDINANCE NO. AN ORDINANCE OF THE CITY OF ARROYO GRANDE ADDING CHAPTER 3.23 TO TITLE 3 OF THE ARROYO GRANDE MUNICIPAL CODE RELATED TO A TRANSACTIONS AND USE TAX TO BE ADMINISTERED BY THE CALIFORNIA DEPARTMENT OF TAX AND FEE ADMINISTRATION WHEREAS, Revenue and Taxation Code section 7285.9 authorizes the City of Arroyo Grande (“City”), subject to approval by a majority vote of the qualified voters of the City voting in an election on the issue, to levy a transactions and use tax pursuant to the Transactions and Use Tax Law at a rate of 0.125% or any multiple thereof for general purposes and projects; and WHEREAS, Section 2(b) of Article XIII C of the California Constitution, added by Proposition 218 effective November, 1996, requires that the measure proposing a general tax be submitted to the voters at an election consolidated with a regularly scheduled general election for members of the governing body of the local government; and WHEREAS, pursuant to California Constitution Article XIII C, section 2 and Elections Code section 10201, the City has determined to submit a proposition to enact an ordinance establishing a transactions and use tax to the voters at the City’s next regular election; and WHEREAS, pursuant to California Elections Code section 9222, the City Council has authority to place measures on the ballot to be considered at a General Municipal Election and desires to place a local funding measure on the ballot at the statewide general election on November 8, 2022; and WHEREAS, pursuant to Government Code Section 53724(b) and Revenue & Taxation Code Section 7285.9, this ordinance proposing the transactions and use tax requires approval by a two-thirds (2/3) vote of all members of the City Council and approval of the ballot measure and the ordinance by majority of the voters casting votes at the General Municipal Election on November 8, 2022. THE PEOPLE OF THE CITY OF ARROYO GRANDE, CALIFORNIA DO HEREBY ORDAIN AS FOLLOWS: SECTION 1. Addition of Chapter 3.23. Chapter 3.23 is hereby added to Title 3 of the Arroyo Grande Municipal Code to read as follows: Chapter 3.23 - TRANSACTIONS AND USE TAX. Page 359 of 386 RESOLUTION NO. PAGE 6 3.23.010 - Short title. This chapter shall be known as the “Transactions and Use Tax” and shall be applicable in the incorporated territory of the City of Arroyo Grande (“city”). This chapter shall complement, and not replace or supersede, the city’s existing sales and use tax, as such tax is described in Chapter 3.20 and existing transaction and use tax Chapter 3.22 of Title 3 of the Arroyo Grande Municipal Code. 3.23.020 - Definitions. For the purpose of this chapter the following words terms shall have the meaning given in this section: “In the city” means and includes all territory within the city limits. “Operative Date” means the first day of the first calendar quarter commencing more than 110 days after the later of the adoption of thi s chapter and the approval by the voters of the city of a measure approving the imposition of an increased transactions and use tax; provided that, if the city shall not have entered into a contract with the California Department of Tax and Fee Administration as required by section 3.11.040 prior to such date, the operative date shall be the first day of the first calendar quarter following the execution of such a contract. 3.23.030 - Purpose. This chapter of the Arroyo Grande Municipal Code has been adopted for the following purposes, and directs that the provisions hereof be interpreted in order to accomplish those purposes: A. To impose a retail transactions and use tax in accordance with the provisions of Part 1.6 (commencing with Section 7251) of Division 2 of the Revenue and Taxation Code and Section 7285.9 of Part 1.7 of Division 2, which authorizes the city to adopt this tax. This chapter shall be operative if a majority of the electors voting on the measure vote to approve the imposition of the tax at an election called for that purpose. B. To adopt a retail transactions and use tax that incorporates provisions identical to those of the Sales and Use Tax Law of the State of California insofar as those provisions are not inconsistent with the requirements and limitations contained in Part 1.6 of Division 2 of the Revenue and Taxation Code. C. To adopt a retail transactions and use tax that imposes a tax and provides a measure therefor that can be administered and Page 360 of 386 RESOLUTION NO. PAGE 7 collected by the California Department of Tax and Fee Administration in a manner that adapts itself as fully as practicable to, and requires the least possible deviation from, the existing statutory and administrative procedures followed by the California Department of Tax and Fee Administration in administering and collecting the California State Sales and Use Taxes. D. To adopt a retail transactions and use tax that can be administered in a manner that will, to the greatest degree possible, be consistent with the provisions of Part1.6 of Division 2 of the said Revenue and Taxation Code, and thereby minimize the cost of collecting city transactions and use taxes, and at the same time minimize the burden of record keeping upon persons subject to taxation under the provisions thereof. 3.23.040 - Contract with state. Prior to the operative date, the city shall contract with the California Department of Tax and Fee Administration to perform all functions incidental to the administration and operation of this transactions and use tax ordinance. If the city has not contracted with the California Department of Tax and Fee Administration prior to the operative date, it shall nevertheless so contract and in such a case, the operative date shall be the first day of the first calendar quarter following the execution of such a contract. The city council may make any technical amendments to this chapter required by the California Department of Tax and Fee Administration, except for any changes affecting the tax rate, tax methodology, or its manner of collection. 3.23.050 - Imposition of transactions and use tax – Rate. For the privilege of selling tangible personal property at retail, a tax is hereby imposed upon all retailers in the incorporated territory of the city at the rate of one percent (1%) of the gross receipts of any retailer from the sale of all tangible personal property sold at retail in the city on and after the operative date of this chapter. 3.23.060 - Place of sale. For the purposes of this chapter, all retail sales are consummated at the place of business of the retailer, unless the tangible personal property sold is delivered by the retailer or his agent to an out-of-state destination or to a common carrier for delivery to an out-of-state destination. The gross receipts from such sales shall include delivery charges, when such charges are subject to the state sales and use tax, regardless of the place to which delivery is made. In the event a retailer has no permanent place of business in the state or has more than one place of business, the place or places at which the retail sales are Page 361 of 386 RESOLUTION NO. PAGE 8 consummated shall be determined under rules and regulations to be prescribed and adopted by the California Department of Tax and Fee Administration. 3.23.070 - Imposition of use tax – Use tax rate. An excise tax is hereby imposed on the storage, use, or other consumption in the city of tangible personal property purchased from any retailer on or after the operative date of this chapter for storage, use or other consumption in said territory at the rate of one percent (1%) of the sales price of the property subject to the tax. The sales price shall include delivery charges when such charges are subject to state sales or use tax regardless of the place to which delivery is made. 3.23.080 - Adoption of provisions of state law – Generally. Except as otherwise provided in the chapter and except insofar as they are inconsistent with the provisions of Part 1.6 of Division 2 of the Revenue and Taxation Code, all of the provisions of Part 1 (commencing with § 6001) of Division 2 of the Revenue and Taxation Code are hereby adopted and made a part of this chapter as though fully set forth herein. 3.23.090 - Adoption of provisions of state law – Limitations; Limitations on collection of use taxes. In adopting the provisions of Part 1 of Division 2 of the Revenue and Taxation Code: A. Wherever the State of California is named or referred to as the taxing agency, the name of this City shall be substituted therefore. However, the substitution shall not be made when: 1. The word “State” is used as a part of the title of the State Controller, State Treasurer, State Treasury, or the Constitution of the State of California; 2. The result of that substitution would require action to be taken by or against this city or any agency, officer, or employee thereof rather than by or against the California Department of Tax and Fee Administration, in performing the functions incident to the administration or operation of this chapter. 3. In those sections, including, but not necessarily limited to sections referring to the exterior boundaries of the State of California, where the result of the substitution would be to: Page 362 of 386 RESOLUTION NO. PAGE 9 a. Provide an exemption from this tax with respect to certain sales, storage, use or other consumption of tangible personal property which would not otherwise be exempt from this tax while such sales, storage, use or other consumption remain subject to tax by the state under the provisions of Part 1 of Division 2 of the Revenue and Taxation Code, or; b. Impose this tax with respect to certain sales, storage, use or other consumption of tangible personal property which would not be subject to tax by the state under the said provision of that code. 4. In Sections 6701, 6702 (except in the last sentence thereof), 6711, 6715, 6737, 6797 or 6828 of the Revenue and Taxation Code. B. The word “city” shall be substituted for the word “State” in the phrase “retailer engaged in business in this State” in Section 6203 and in the definition of that phrase in Section 6203. 3.23.100 - Permit not required. If a seller’s permit has been issued to a retailer under Section 6067 of the Revenue and Taxation Code, an additional transactor’s permit shall not be required by this chapter. 3.23.110 - Exemptions and exclusions. A. Measure of Tax. There shall be excluded from the measure of the transactions and use tax the amount of any sales tax or use tax imposed by the State of California or by any city, city and county, or county pursuant to the Bradley-Burns Uniform Local Sales and Use Tax Law or the amount of any state-administered transactions or use tax. B. Transactions Tax Exemptions. There are exempted from the computation of the amount of transactions tax the gross receipts from: 1. Sales of tangible personal property, other than fuel or petroleum products, to operators of aircraft to be used or consumed principally outside the county in which the sale is made and directly and exclusively in the use of such aircraft as common carriers of persons or property under the authority of the laws of this State, the United States, or any foreign government. 2. Sales of property to be used outside the city which Page 363 of 386 RESOLUTION NO. PAGE 10 is shipped to a point outside the city, pursuant to the contract of sale, by delivery to such point by the retailer or his agent, or by delivery by the retailer to a carrier for shipment to a consignee at such point. For the purposes of this paragraph, delivery to a point outside the city shall be satisfied: a. With respect to vehicles (other than commercial vehicles) subject to registration pursuant to Chapter 1 (commencing with Section 4000) of Division 3 of the Vehicle Code, aircraft licensed in compliance with Section 21411 of the Public Utilities Code, and undocumented vessels registered under Division 3.5 (commencing with Section 9840) of the Vehicle Code by registration to an out-of-city address and by a declaration under penalty of perjury, signed by the buyer, stating that such address is, in fact, his or her principal place of residence; and b. With respect to commercial vehicles, by registration to a place of business out-of-city and declaration under penalty of perjury, signed by the buyer, that the vehicle will be operated from that address. 3. The sale of tangible personal property if the seller is obligated to furnish the property for a fixed price pursuant to a contract entered into prior to the operative date. 4. A lease of tangible personal property which is a continuing sale of such property, for any period of time for which the lessor is obligated to lease the property for an amount fixed by the lease prior to the operative date. 5. For the purposes of subsections (3) and (4) of this section, the sale or lease of tangible personal property shall be deemed not to be obligated pursuant to a contract or lease for any period of time for which any party to the contract or lease has the unconditional right to terminate the contract or lease upon notice, whether or not such right is exercised. C. Use Tax Exemptions. There are exempted from the use tax imposed by this chapter, the storage, use or other consumption in this city of tangible personal property: 1. The gross receipts from the sale of which have been subject to a transactions tax under any state-administered transactions and use tax ordinance. 2. Other than fuel or petroleum products purchased by operators of aircraft and used or consumed by such operators directly Page 364 of 386 RESOLUTION NO. PAGE 11 and exclusively in the use of such aircraft as common carriers of persons or property for hire or compensation under a certificate of public convenience and necessity issued pursuant to the laws of this State, the United States, or any foreign government. This exemption is in addition to the exemptions provided in Sections 6366 and 6366.1 of the Revenue and Taxation Code of the State of California. 3. If the purchaser is obligated to purchase the property for a fixed price pursuant to a contract entered into prior to the operative date. 4. If the possession of, or the exercise of any right or power over, the tangible personal property arises under a lease which is a continuing purchase of such property for any period of time for which the lessee is obligated to lease the property for an amount fixed by a lease prior to the operative date. 5. For the purposes of subsections (3) and (4) of this section, storage, use, or other consumption, or possession of, or exercise of any right or power over, tangible personal property shall be deemed not to be obligated pursuant to a contract or lease for any period of time for which any party to the contract or lease has the unconditional right to terminate the contract or lease upon notice, whether or not such right is exercised. D. Exemption from Collection of Use Tax. Except as provided in subsection (E), a retailer engaged in business in the city shall not be required to collect use tax from the purchaser of tangible personal property, unless the retailer ships or delivers the property into the city or participates within the city in making the sale of the property, including, but not limited to, soliciting or receiving the order, either directly or indirectly, at a place of business of the retailer in the city or through any representative, agent, canvasser, solicitor, subsidiary, or person in the city under the authority of the retailer. E. Retailer Not Exempt from Collection of Use Tax. “A retailer engaged in business in the city” shall also include any retailer of any of the following: vehicles subject to registration pursuant to Chapter 1 (commencing with Section 4000) of Division 3 of the Vehicle Code, aircraft licensed in compliance with Section 21411 of the Public Utilities Code, or undocumented vessels registered under Division 3.5 (commencing with Section 9840) of the Vehicle Code. That retailer shall be required to collect use tax from any purchaser who registers or licenses the vehicle, vessel, or aircraft at an address in the city. F. Credit Against Use Tax for Transactions Tax Paid Page 365 of 386 RESOLUTION NO. PAGE 12 Elsewhere. Any person subject to use tax under this chapter may credit against that tax any transactions tax or reimbursement for transactions tax paid to a district imposing, or retailer liable for a transactions tax pursuant to Part 1.6 of Division 2 of the Revenue and Taxation Code with respect to the sale to the person of the property the storage, use or other consumption of which is subject to the use tax. 3.23.120 - Adoption of amendments to state law. All amendments subsequent to the effective date of this chapter to Part 1 of Division 2 of the Revenue and Taxation Code relating to sales and use taxes and which are not inconsistent with Part 1.6 and Part 1.7 of Division 2 of the Revenue and Taxation Code, and all amendments to Part 1.6 and Part 1.7 of Division 2 of the Revenue and Taxation Code, shall automatically become a part of this chapter, provided however, that no such amendment shall operate so as to affect the rate of tax imposed by this chapter. 3.23.130 - Enjoining collection prohibited. No injunction or writ of mandate or other legal or equitable process shall issue in any suit, action, or proceeding in any court against the State or the city, or against any officer of the State or the city, to prevent or enjoin the collection hereunder, or Parts 1.6 of Division 2 of the Revenue and Taxation Code, of any tax or any amount of tax required to be collected. 3.23.140. Annual Report. City shall annually mail to each household an annual report, which presents in summary form expenditures from the prior fiscal year from revenue generated from the Transactions and Use Tax and budgeted expenditures for the upcoming fiscal year. 3.23.150. Period Review. The City Council shall consider reduction or repeal of the Transactions and Use Tax at public hearings every five years after the effective date of this ordinance. SECTION 2. Use of Tax Proceeds. All proceeds of the tax levied and imposed hereunder shall be accounted for and paid into the City of Arroyo Grande General Fund, and may be used for any lawful purpose as designated by the City Council. SECTION 3. Effective Date. Pursuant to the California Constitution Article XIIIC(2)(b) Page 366 of 386 RESOLUTION NO. PAGE 13 and California Elections Code 9217, if approved by a majority vote of the qualified voters of the City voting on the issue at the November 8, 2022 General Municipal Election, this ordinance shall be deemed valid and binding and shall be considered adopted upon the date that the vote is declared by the City Council, and shall go into effect ten (10) days after that date. SECTION 4. Severability. If any section, sentence, clause or phrase of this ordinance is for any reason held to be invalid or unconstitutional by a decision of a court of competent jurisdiction, such decision shall not affect the validity of the remaining provisions of this Ordinance. The People of the City of Arroyo Grande hereby declare that they would have adopted this Ordinance irrespective of the invalidity of any particular portion thereof and intends that the invalid portions should be severed and the balance of the Ordinance be enforced. SECTION 5. Statutory Authority for Tax. This ordinance is adopted pursuant to Revenue and Taxation Code section 7285.9. SECTION 6. Codification. Upon adoption of this ordinance pursuant to the voter approval referenced in this ordinance, the City Clerk is hereby authorized and directed to codify this ordinance in the Arroyo Grande Municipal Code. I HEREBY CERTIFY that the foregoing ordinance was adopted by a two-thirds vote of all members of the City Council of the City of Arroyo Grande as required by Revenue and Taxation Code Section 7285.9 and Government Code Section 53724 and submitted to the voters at the meeting of the City Council held on the day of June, 2022, by the following roll call vote: AYES: NOES: ABSENT: Page 367 of 386 RESOLUTION NO. PAGE 14 _________________________________ CAREN RAY RUSSOM. MAYOR ATTEST: _________________________________ JESSICA MATSON, CITY CLERK Ordinance No. ____ was submitted to the People of the City of Arroyo Grande at the November 8, 2022 General Election. It is hereby certified that this ordinance was passed and approved by following vote of the People of the City of Arroyo Grande: YES: NO: This ordinance was thereby adopted by the voters at the November 8, 2022 General Election and shall take effect as provided by law. Page 368 of 386 ATTACHMENT 2 ORDINANCE NO. AN ORDINANCE OF THE CITY OF ARROYO GRANDE ADDING CHAPTER 3.23 TO TITLE 3 OF THE ARROYO GRANDE MUNICIPAL CODE RELATED TO A TRANSACTIONS AND USE TAX TO BE ADMINISTERED BY THE CALIFORNIA DEPARTMENT OF TAX AND FEE ADMINISTRATION WHEREAS, Revenue and Taxation Code section 7285.9 authorizes the City of Arroyo Grande (“City”), subject to approval by a majority vote of the qualified voters of the City voting in an election on the issue, to levy a transactions and use tax pursuant to the Transactions and Use Tax Law at a rate of 0.125% or any multiple thereof for general purposes and projects; and WHEREAS, Section 2(b) of Article XIII C of the California Constitution, added by Proposition 218 effective November, 1996, requires that the measure proposing a general tax be submitted to the voters at an election consolidated with a regularly scheduled general election for members of the governing body of the local government; and WHEREAS, pursuant to California Constitution Article XIII C, section 2 and Elections Code section 10201, the City has determined to submit a proposition to enact an ordinance establishing a transactions and use tax to the voters at the City’s next regular election; and WHEREAS, pursuant to California Elections Code section 9222, the City Council has authority to place measures on the ballot to be considered at a General Municipal Election and desires to place a local funding measure on the ballot at the statewide general election on November 8, 2022; and WHEREAS, pursuant to Government Code Section 53724(b) and Revenue & Taxation Code Section 7285.9, this ordinance proposing the transactions and use tax requires approval by a two-thirds (2/3) vote of all members of the City Council and approval of the ballot measure and the ordinance by majority of the voters casting votes at the General Municipal Election on November 8, 2022. THE PEOPLE OF THE CITY OF ARROYO GRANDE, CALIFORNIA DO HEREBY ORDAIN AS FOLLOWS: SECTION 1. Addition of Chapter 3.23. Chapter 3.23 is hereby added to Title 3 of the Arroyo Grande Municipal Code to read as follows: Chapter 3.23 - TRANSACTIONS AND USE TAX. 3.23.010 - Short title. Page 369 of 386 ORDINANCE NO PAGE 2 This chapter shall be known as the “Transactions and Use Tax” and shall be applicable in the incorporated territory of the City of Arroyo Grande (“city”). This chapter shall complement, and not replace or supersede, the city’s existing sales and use tax, as such tax is described in Chapter 3.20 and existing transaction and use tax Chapter 3.22 of Title 3 of the Arroyo Grande Municipal Code. 3.23.020 - Definitions. For the purpose of this chapter the following words terms shall have the meaning given in this section: “In the city” means and includes all territory within the city limits. “Operative Date” means the first day of the first calendar quarter commencing more than 110 days after the later of the adoption of this chapter and the approval by the voters of the city of a measure approving the imposition of an increased transactions and use tax; provided that, if the city shall not have entered into a contract with the California Department of Tax and Fee Administration as required by section 3.11.040 prior to such date, the operative date shall be the first day of the first calendar quarter following the execution of such a contract. 3.23.030 - Purpose. This chapter of the Arroyo Grande Municipal Code has been adopted for the following purposes, and directs that the provisions hereof be interpreted in order to accomplish those purposes: A. To impose a retail transactions and use tax in accordance with the provisions of Part 1.6 (commencing with Section 7251) of Division 2 of the Revenue and Taxation Code and Section 7285.9 of Part 1.7 of Division 2, which authorizes the city to adopt this tax. This chapter shall be operative if a majority of the electors voting on the measure vote to approve the imposition of the tax at an election called for that purpose. B. To adopt a retail transactions and use tax that incorporates provisions identical to those of the Sales and Use Tax Law of the State of California insofar as those provisions are not inconsistent with the requirements and limitations contained in Part 1.6 of Division 2 of the Revenue and Taxation Code. C. To adopt a retail transactions and use tax that imposes a tax and provides a measure therefor that can be administered and collected by the California Department of Tax and Fee Administration in a manner that adapts itself as fully as practicable to, and requires the Page 370 of 386 ORDINANCE NO PAGE 3 least possible deviation from, the existing statutory and administrative procedures followed by the California Department of Tax and Fee Administration in administering and collecting the California State Sales and Use Taxes. D. To adopt a retail transactions and use tax that can be administered in a manner that will, to the greatest degree possible, be consistent with the provisions of Part1.6 of Division 2 of the said Revenue and Taxation Code, and thereby minimize the cost of collecting city transactions and use taxes, and at the same time minimize the burden of record keeping upon persons subject to taxation under the provisions thereof. 3.23.040 - Contract with state. Prior to the operative date, the city shall contract with the California Department of Tax and Fee Administration to perform all functions incidental to the administration and operation of this transactions and use tax ordinance. If the city has not contracted with the California Department of Tax and Fee Administration prior to the operative date, it shall nevertheless so contract and in such a case, the operative date shall be the first day of the first calendar quarter following the execution of such a contract. The city council may make any technical amendments to this chapter required by the California Department of Tax and Fee Administration, except for any changes affecting the tax rate, tax methodology, or its manner of collection. 3.23.050 - Imposition of transactions and use tax – Rate. For the privilege of selling tangible personal property at retail, a tax is hereby imposed upon all retailers in the incorporated territory of the city at the rate of one percent (1%) of the gross receipts of any retailer from the sale of all tangible personal property sold at retail in the city on and after the operative date of this chapter. 3.23.060 - Place of sale. For the purposes of this chapter, all retail sales are consummated at the place of business of the retailer, unless the tangible personal property sold is delivered by the retailer or his agent to an out-of-state destination or to a common carrier for delivery to an out-of-state destination. The gross receipts from such sales shall include delivery charges, when such charges are subject to the state sales and use tax, regardless of the place to which delivery is made. In the event a retailer has no permanent place of business in the state or has more than one place of business, the place or places at which the retail sales are consummated shall be determined under rules and regulations to be Page 371 of 386 ORDINANCE NO PAGE 4 prescribed and adopted by the California Department of Tax and Fee Administration. 3.23.070 - Imposition of use tax – Use tax rate. An excise tax is hereby imposed on the storage, use, or other consumption in the city of tangible personal property purchased from any retailer on or after the operative date of this chapter for storage, use or other consumption in said territory at the rate of one percent (1%) of the sales price of the property subject to the tax. The sales price shall include delivery charges when such charges are subject to state sales or use tax regardless of the place to which delivery is made. 3.23.080 - Adoption of provisions of state law – Generally. Except as otherwise provided in the chapter and except insofar as they are inconsistent with the provisions of Part 1.6 of Division 2 of the Revenue and Taxation Code, all of the provisions of Part 1 (commencing with § 6001) of Division 2 of the Revenue and Taxation Code are hereby adopted and made a part of this chapter as though fully set forth herein. 3.23.090 - Adoption of provisions of state law – Limitations; Limitations on collection of use taxes. In adopting the provisions of Part 1 of Division 2 of the Revenue and Taxation Code: A. Wherever the State of California is named or referred to as the taxing agency, the name of this City shall be substituted therefore. However, the substitution shall not be made when: 1. The word “State” is used as a part of the title of the State Controller, State Treasurer, State Treasury, or the Constitution of the State of California; 2. The result of that substitution would require action to be taken by or against this city or any agency, officer, or employee thereof rather than by or against the California Department of Tax and Fee Administration, in performing the functions incident to the administration or operation of this chapter. 3. In those sections, including, but not necessarily limited to sections referring to the exterior boundaries of the State of California, where the result of the substitution would be to: Page 372 of 386 ORDINANCE NO PAGE 5 a. Provide an exemption from this tax with respect to certain sales, storage, use or other consumption of tangible personal property which would not otherwise be exempt from this tax while such sales, storage, use or other consumption remain subject to tax by the state under the provisions of Part 1 of Division 2 of the Revenue and Taxation Code, or; b. Impose this tax with respect to certain sales, storage, use or other consumption of tangible personal property which would not be subject to tax by the state under the said provision of that code. 4. In Sections 6701, 6702 (except in the last sentence thereof), 6711, 6715, 6737, 6797 or 6828 of the Revenue and Taxation Code. B. The word “city” shall be substituted for the word “State” in the phrase “retailer engaged in business in this State” in Section 6203 and in the definition of that phrase in Section 6203. 3.23.100 - Permit not required. If a seller’s permit has been issued to a retailer under Section 6067 of the Revenue and Taxation Code, an additional transactor’s permit shall not be required by this chapter. 3.23.110 - Exemptions and exclusions. A. Measure of Tax. There shall be excluded from the measure of the transactions and use tax the amount of any sales tax or use tax imposed by the State of California or by any city, city and county, or county pursuant to the Bradley-Burns Uniform Local Sales and Use Tax Law or the amount of any state-administered transactions or use tax. B. Transactions Tax Exemptions. There are exempted from the computation of the amount of transactions tax the gross receipts from: 1. Sales of tangible personal property, other than fuel or petroleum products, to operators of aircraft to be used or consumed principally outside the county in which the sale is made and directly and exclusively in the use of such aircraft as common carriers of persons or property under the authority of the laws of this State, the United States, or any foreign government. Page 373 of 386 ORDINANCE NO PAGE 6 2. Sales of property to be used outside the city which is shipped to a point outside the city, pursuant to the contract of sale, by delivery to such point by the retailer or his agent, or by delivery by the retailer to a carrier for shipment to a consignee at such point. For the purposes of this paragraph, delivery to a point outside the city shall be satisfied: a. With respect to vehicles (other than commercial vehicles) subject to registration pursuant to Chapter 1 (commencing with Section 4000) of Division 3 of the Vehicle Code, aircraft licensed in compliance with Section 21411 of the Public Utilities Code, and undocumented vessels registered under Division 3.5 (commencing with Section 9840) of the Vehicle Code by registration to an out-of-city address and by a declaration under penalty of perjury, signed by the buyer, stating that such address is, in fact, his or her principal place of residence; and b. With respect to commercial vehicles, by registration to a place of business out-of-city and declaration under penalty of perjury, signed by the buyer, that the vehicle will be operated from that address. 3. The sale of tangible personal property if the seller is obligated to furnish the property for a fixed price pursuant to a contract entered into prior to the operative date. 4. A lease of tangible personal property which is a continuing sale of such property, for any period of time for which the lessor is obligated to lease the property for an amount fixed by the lease prior to the operative date. 5. For the purposes of subsections (3) and (4) of this section, the sale or lease of tangible personal property shall be deemed not to be obligated pursuant to a contract or lease for any period of time for which any party to the contract or lease has the unconditional right to terminate the contract or lease upon notice, whether or not such right is exercised. C. Use Tax Exemptions. There are exempted from the use tax imposed by this chapter, the storage, use or other consumption in this city of tangible personal property: 1. The gross receipts from the sale of which have been subject to a transactions tax under any state-administered transactions and use tax ordinance. Page 374 of 386 ORDINANCE NO PAGE 7 2. Other than fuel or petroleum products purchased by operators of aircraft and used or consumed by such operators directly and exclusively in the use of such aircraft as common carriers of persons or property for hire or compensation under a certificate of public convenience and necessity issued pursuant to the laws of this State, the United States, or any foreign government. This exemption is in addition to the exemptions provided in Sections 6366 and 6366.1 of the Revenue and Taxation Code of the State of California. 3. If the purchaser is obligated to purchase the property for a fixed price pursuant to a contract entered into prior to the operative date. 4. If the possession of, or the exercise of any right or power over, the tangible personal property arises under a lease which is a continuing purchase of such property for any period of time for which the lessee is obligated to lease the property for an amount fixed by a lease prior to the operative date. 5. For the purposes of subsections (3) and (4) of this section, storage, use, or other consumption, or possession of, or exercise of any right or power over, tangible personal property shall be deemed not to be obligated pursuant to a contract or lease for any period of time for which any party to the contract or lease has the unconditional right to terminate the contract or lease upon notice, whether or not such right is exercised. D. Exemption from Collection of Use Tax. Except as provided in subsection (E), a retailer engaged in business in the city shall not be required to collect use tax from the purchaser of tangible personal property, unless the retailer ships or delivers the property into the city or participates within the city in making the sale of the property, including, but not limited to, soliciting or receiving the order, either directly or indirectly, at a place of business of the retailer in the city or through any representative, agent, canvasser, solicitor, subsidiary, or person in the city under the authority of the retailer. E. Retailer Not Exempt from Collection of Use Tax. “A retailer engaged in business in the city” shall also include any retailer of any of the following: vehicles subject to registration pursuant to Chapter 1 (commencing with Section 4000) of Division 3 of the Vehicle Code, aircraft licensed in compliance with Section 21411 of the Public Utilities Code, or undocumented vessels registered under Division 3.5 (commencing with Section 9840) of the Vehicle Cod e. That retailer shall be required to collect use tax from any purchaser who registers or licenses the vehicle, vessel, or aircraft at an address in the city. Page 375 of 386 ORDINANCE NO PAGE 8 F. Credit Against Use Tax for Transactions Tax Paid Elsewhere. Any person subject to use tax under this chapter may credit against that tax any transactions tax or reimbursement for transactions tax paid to a district imposing, or retailer liable for a transactions tax pursuant to Part 1.6 of Division 2 of the Revenue and Taxation Code with respect to the sale to the person of the property the storage, use or other consumption of which is subject to the use tax. 3.23.120 - Adoption of amendments to state law. All amendments subsequent to the effective date of this chapter to Part 1 of Division 2 of the Revenue and Taxation Code relating to sales and use taxes and which are not inconsistent with Part 1.6 and Part 1.7 of Division 2 of the Revenue and Taxation Code, and all amendments to Part 1.6 and Part 1.7 of Division 2 of the Revenue and Taxation Code, shall automatically become a part of this chapter, provided however, that no such amendment shall operate so as to affect the rate of tax imposed by this chapter. 3.23.130 - Enjoining collection prohibited. No injunction or writ of mandate or other legal or equitable process shall issue in any suit, action, or proceeding in any court against the State or the city, or against any officer of the State or the city, to prevent or enjoin the collection hereunder, or Parts 1.6 of Division 2 of the Revenue and Taxation Code, of any tax or any amount of tax required to be collected. 3.23.140. Annual Report. City shall annually mail to each household an annual report, which presents in summary form expenditures from the prior fiscal year from revenue generated from the Transactions and Use Tax and budgeted expenditures for the upcoming fiscal year. 3.23.150. Period Review. The City Council shall consider reduction or repeal of the Transactions and Use Tax at public hearings every five years after the effe ctive date of this ordinance. SECTION 2. Use of Tax Proceeds. All proceeds of the tax levied and imposed Page 376 of 386 ORDINANCE NO PAGE 9 hereunder shall be accounted for and paid into the City of Arroyo Grande General Fund, and may be used for any lawful purpose as designated by the City Council. SECTION 3. Effective Date. Pursuant to the California Constitution Article XIIIC(2)(b) and California Elections Code 9217, if approved by a majority vote of the qualified voters of the City voting on the issue at the November 8, 2022 General Municipal Election, this ordinance shall be deemed valid and binding and shall be considered adopted upon the date that the vote is declared by the City Council, and shall go into effect ten (10) days after that date. SECTION 4. Severability. If any section, sentence, clause or phrase of this ordinance is for any reason held to be invalid or unconstitutional by a decision of a court of competent jurisdiction, such decision shall not affect the validity of the remaining provisions of this Ordinance. The People of the City of Arroyo Grande hereby declare that they would have adopted this Ordinance irrespective of the invalidity of any particular portion thereof and intends that the invalid portions should be severed and the balance of the Ordinance be enforced. SECTION 5. Statutory Authority for Tax. This ordinance is adopted pursuant to Revenue and Taxation Code section 7285.9. SECTION 6. Codification. Upon adoption of this ordinance pursuant to the voter approval referenced in this ordinance, the City Clerk is hereby authorized and directed to codify this ordinance in the Arroyo Grande Municipal Code. I HEREBY CERTIFY that the foregoing ordinance was adopted by a two-thirds vote of all members of the City Council of the City of Arroyo Grande as required by Revenue and Taxation Code Section 7285.9 and Government Code Section 53724 and submitted to the voters at the meeting of the City Council held on the day of June, 2022, by the following roll call vote: AYES: NOES: ABSENT: Page 377 of 386 ORDINANCE NO PAGE 10 _________________________________ CAREN RAY RUSSOM. MAYOR ATTEST: _________________________________ JESSICA MATSON, CITY CLERK Ordinance No. ____ was submitted to the People of the City of Arroyo Grande at the November 8, 2022 General Election. It is hereby certified that this ordinance was passed and approved by following vote of the People of the City of Arroyo Grande: YES: NO: This ordinance was thereby adopted by the voters at the November 8, 2022 General Election and shall take effect as provided by law. Page 378 of 386 ATTACHMENT 3 RESOLUTION NO. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ARROYO GRANDE SETTING PRIORITIES FOR FILING WRITTEN ARGUMENTS REGARDING A CITY MEASURE AND DIRECTING THE CITY ATTORNEY TO PREPARE AN IMPARTIAL ANALYSIS WHEREAS, a General Municipal Election is to be held in the City of Arroyo Grande, California, on November 8, 2022, at which there will be submitted to the voters the following measure: CITY OF ARROYO GRANDE MEASURE ___ To provide funding for general governmental use in Arroyo Grande, including maintenance and repair of streets, sidewalks, stormwater and drainage facilities, and for other City programs and facilities, shall an ordinance establishing a one percent sales tax be adopted, providing approximately $5,600,000 annually until ended by the City Council and requiring annual reports on revenues and expenditures, and review and public hearing by the City Council every five years on its necessity? YES NO NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Arroyo Grande as follows: SECTION 1. That the City Council, being the legislative body of the City of Arroyo Grande, hereby authorizes: Caren Ray Russom, Lan George, Kristen Barneich, Jimmy Paulding, and Keith Storton, Members of that body, to file a written argument in favor of the City measure as specified above, accompanied by the printed names and signatures of the authors submitting it, in accordance with Article 4, Chapter 3, Division 9 of the Elections Code of the State of California, and to change the arguments until and including July 22, 2022, the date fixed by the City Clerk after which no arguments for or against the City measure may be submitted to the City Clerk. Page 379 of 386 RESOLUTION NO. PAGE 2 SECTION 2. That the City Council directs the City Clerk to transmit copies of the measure to the City Attorney, unless the organization or salaries of the office of the City Attorney are affected. a. The City Attorney shall prepare an impartial analysis of the measure not exceeding 500 words showing the effect of the measure on the existing law and the operation of the measure. If the measure affects the organization or salaries of the office of the City Attorney, the City Clerk shall prepare the impartial analysis. b. The analysis shall include a statement indicating that the measure was placed on the ballot by the governing body of the City. c. In the event the entire text of the measure is not printed on the ballot, nor in the voter information portion of the voter information guide, there shall be printed immediately below the impartial analysis, in no less than 10-point type, the following: “The above statement is an impartial analysis of Measure __. If you desire a copy of the measure, please call the election official’s office at 805- 473-5400 and a copy will be mailed at no cost to you.” d. The impartial analysis shall be filed by July 22, 2022, the date set by the City Clerk for the filing of primary arguments. SECTION 3. That the City Clerk shall certify to the passage and adoption of this Resolution and enter it into the book of original Resolutions. On motion by Council Member _________, seconded by Council Member _______, and on the following roll call vote, to wit: AYES: NOES: ABSENT: The foregoing Resolution was passed and adopted this 24th day of May, 2022. Page 380 of 386 RESOLUTION NO. PAGE 3 ___________________________________ ______ CAREN RAY RUSSOM, MAYOR ATTEST: ___ ______ JESSICA MATSON, CITY CLERK APPROVED AS TO CONTENT: _________________________________ WHITNEY MCDONALD, CITY MANAGER APPROVED AS TO FORM: ___________________________________ TIMOTHY J. CARMEL, CITY ATTORNEY Page 381 of 386 ATTACHMENT 4 RESOLUTION NO. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ARROYO GRANDE PROVIDING FOR THE FILING OF REBUTTAL ARGUMENTS FOR CITY MEASURES SUBMITTED AT MUNICIPAL ELECTIONS WHEREAS, Section 9282 of the Elections Code of the State of California provides for written arguments to be filed in favor of or against city measures not to exceed 300 words in length; and WHEREAS, Section 9285 of the Elections Code of the State of California authorizes the City Council by majority vote, to adopt provisions to provide for the filing of rebuttal arguments for city measures submitted at municipal elections. NOW, THEREFORE BE IT RESOLVED by the City Council of the City of Arroyo Grande as follows: SECTION 1. That pursuant to Sections 9220 and 9285 of the Ele ctions Code of the State of California, when the City Clerk has selected the arguments for and against the measure which will be printed and distributed to the voters, the City Clerk shall send a copy of an argument in favor of the measure to the authors of any argument against the measure, and a copy of an argument against the measure to the authors of any argument in favor of the measure immediately upon receiving the arguments. The author or a majority of the authors of an argument relating to a city m easure may prepare and submit a rebuttal argument not exceeding 250 words or may authorize in writing any other person or persons to prepare, submit, or sign the rebuttal argument. A rebuttal argument may not be signed by more than five. The rebuttal arguments shall be filed with the City Clerk, signed, with the printed name(s) and signature(s) of the author(s) submitting it, or if submitted on behalf of an organization, the name of the organization, and the printed name and signature of at least one of its principal officers, not more than 10 days after the final date for filing direct arguments. The rebuttal arguments shall be accompanied by the Form of Statement To Be Filed By Author(s) of Argument. Rebuttal arguments shall be printed in the same manne r as the direct arguments. Each rebuttal argument shall immediately follow the direct argument which it seeks to rebut. SECTION 2. That all previous resolutions providing for the filing of rebuttal arguments for City measures are repealed. SECTION 3. That the provisions of Section 1 shall apply only to the election to be held on November 8, 2022, and shall then be repealed. SECTION 4. That the City Clerk shall certify to the passage and adoption of this Resolution and enter it into the book of original Resolutions. Page 382 of 386 RESOLUTION NO. PAGE 2 On motion of Council Member _____________, seconded by Council Member __________, and on the following roll call vote, to wit: AYES: NOES: ABSENT: the foregoing Resolution was passed and adopted this 24th day of May, 2022. Page 383 of 386 RESOLUTION NO. PAGE 3 CAREN RAY RUSSOM, MAYOR ATTEST: _________________________________________ JESSICA MATSON , CITY CLERK APPROVED AS TO CONTENT: WHITNEY McDONALD , CITY MANAGER APPROVED AS TO FORM: TIMOTHY J. CARMEL, CITY ATTORNEY Page 384 of 386 ATTACHMENT 5 ARGUMENT IN FAVOR OF MEASURE ___ Your “YES” vote on Measure ___ will provide important funding to meet local needs. The City has maintained its current level of service by increasing the efficiency of its operations; however, it cannot keep up with rapidly increasing public improvement costs and new State mandates, and the City has reached a point where existing revenues cannot fund important projects. If passed, Measure ___ will generate approximately $5.6 million in additional annual revenue to ensure ongoing services and public improvements to benefit City residents, businesses, and visitors. Of the current 7.75% sales tax rate, our City receives only 1%. Your “YES” vote will raise the current rate to allow the City to receive 2% and thus provide for the community’s increasingly underfunded capital improvement and public facility maintenance needs, including:  Street Repairs  Concrete (Sidewalk) Repairs  Potholes  Stormwater and Drainage Maintenance And other needed City programs and facilities. Your “YES” vote will result in safer streets and sidewalks, and more rehabilitation of aging storm drains. Everyone who utilizes our infrastructure and services should contribute to these needs, including those who live outside of the City. Your “YES” vote provides the most fair and economical way to ensure this happens. Your City government will be held accountable. Citizens will receive an annual report on the tax revenue received and how it is spent. The City Council will conduct a public hearing every five years to evaluate the success and effectiveness of the tax. Measure ___ is important to meet current and future needs, maintain City infrastructure, and preserve quality of life for our community. Your City Council urges you to vote “YES” on Measure __. ______________________________ ______________________________ Caren Ray Russom, Mayor Lan George, Mayor Pro Tem ______________________________ ______________________________ Kristen Barneich, Council Member Jimmy Paulding, Council Member ______________________________ Keith Storton, Council Member Page 385 of 386 ITEM 8.g.: Attachment 6 – April 26, 2022 Staff Report and Attachments Attachment 6 is available as links: https://pub- arroyogrande.escribemeetings.com/filestream.ashx?DocumentId=2223 https://pub-arroyogrande.escribemeetings.com/filestream.ashx?DocumentId=2224 https://pub-arroyogrande.escribemeetings.com/filestream.ashx?DocumentId=2225 https://pub-arroyogrande.escribemeetings.com/filestream.ashx?DocumentId=2226 Attachment 7 – June 23, 2020 Staff Report and Attachments Attachment 7 is available as a link: https://www.arroyogrande.org/AgendaCenter/ViewFile/Item/9858?fileID=15974 Attachment 8 – January 28, 2020 Staff Report and Attachments Attachment 8 is available as a link: https://www.arroyogrande.org/AgendaCenter/ViewFile/Item/9328?fileID=15620 Attachment 9 – May 28, 2019 Staff Report and Attachments Attachment 9 is available as a link: https://www.arroyogrande.org/AgendaCenter/ViewFile/Item/8526?fileID=15218 Page 386 of 386