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CC 2022-06-14 Agenda PackageCITY COUNCIL MEETING AGENDA SUMMARY Tuesday, June 14, 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 5.AGENDA REVIEW 5.a.Closed Session Announcements The City Attorney will announce reportable actions taken, if any, from the Special Meeting of June 14, 2022: a) CONFERENCE WITH REAL PROPERTY NEGOTIATORS pursuant to Government Code Section 54956.8: Property: 400 West Branch Street Agency negotiators: Whitney McDonald, City Manager; Bill Robeson, Assistant City Manager/Public Works Director Negotiating parties: Dev Patel, on behalf of Kamla Hotels Under negotiation: Price and terms of payment 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.Mayor's Commendation Recognizing Officer Alejandro Estrada 6.d.Introduction and Oath of Office - Police Officer Raul Chavez (MARTINEZ/MATSON) 6.e.San Luis Obispo Countywide Plan to Address Homelessness Update 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. Page 2 of 673 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 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 May 1 through May 15, 2022. 8.b.Consideration of Statement of Investment Deposits (VALENTINE) Recommended Action: Receive and file the attached report listing investment deposits of the City of Arroyo Grande as of April 30, 2022, as required by Government Code Section 53646(b). 8.c.Consideration of Approval of Fiscal Year 2022-23 Appropriation Limit (VALENTINE) Recommended Action: Adopt a Resolution establishing the appropriation limit from tax proceeds for Fiscal Year 2022-23. 8.d.Approval of Minutes (MATSON) Recommended Action: Approve the minutes of the Regular City Council Meeting of May 24, 2022, as submitted. 8.e.Consideration of Adoption of an Ordinance Adding Chapter 3.23 to Title 3 of the Arroyo Grande Municipal Code Regarding a Transaction and Use Tax (“Sales Tax”) (MATSON) Recommended Action: Adopt an Ordinance adding Chapter 3.23 to Title 3 of the Arroyo Grande Municipal Code regarding a Transaction and Use Tax. 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) (McDONALD) Recommended Action: Adopt a Resolution declaring a continued local emergency related to the Coronavirus (COVID-19) pandemic and authorizing the continuance of remote teleconference meetings pursuant to Government Code Section 54953(e)(3). 8.g.Consideration of Adoption of a Resolution Approving the Arroyo Grande Tourism Business Improvement District Fiscal Year 2022-23 Budget Page 3 of 673 (McDONALD) Recommended Action: Adopt a Resolution approving the FY 2022-23 operating budget for the AGTBID. 8.h.Consideration of a Resolution to Adopt Projects to be Funded by the Road Repair and Accountability Act of 2017 (SB1) for Fiscal Year 2022-23 (ROBESON) Recommended Action: 1) Adopt a Resolution approving a list of projects to be funded by SB1 in Fiscal Year 2022- 23; and 2) Authorize the Director of Administrative Services to submit the Resolution to the California Transportation Commission (CTC). 8.i.Consideration of Approval of a Memorandum of Understanding with the Arroyo Grande Police Department and the Lucia Mar Unified School District for School Resource Officer Services, Fiscal Year 2022-23 (MARTINEZ) Recommended Action: Approve and authorize the Chief of Police to execute an agreement between the City of Arroyo Grande and the Lucia Mar Unified School District to share the cost of salary and benefits for one School Resource Officer position in Fiscal Year 2022-23. 8.j.Consideration of Approval of a Memorandum of Understanding with Lucia Mar Unified School District to Provide Free Child Care through the Bright Futures Expanded Learning Opportunities Program (BOHLKEN) Recommended Action: Approve and authorize the City Manager to execute the MOU with LMUSD for the City to provide child care free of charge to students enrolled in summer school at Ocean View Elementary and be reimbursed through the ELOP grant. 9.PUBLIC HEARINGS 9.a.Public Hearing to Consider Adoption of a Resolution Establishing Solid Waste Rates (VALENTINE) Recommended Action: 1) Conduct a public hearing and consider protests regarding the proposed solid waste rate adjustments identified in the notice of public hearing, based on the Solid Waste Rate Review; and 2) If there is no majority protest, adopt a Resolution establishing new Solid Waste rates effective June 15, 2022, January 1, 2023, and January 1, 2024. 9.b.Consideration of Adoption of Resolutions Directing the Levy of the Annual Assessments for the Parkside Village and Grace Lane Assessment Districts and Landscaping and Lighting Assessment District No. 1, Within Tract 1769, for Fiscal Year 2022-2023 (ROBESON) Recommended Action: Conduct a public hearing for the levy and collection of assessments for the Parkside Village Assessment District, Grace Lane Assessment District, and Landscaping and Lighting Assessment District No. 1 within Tract 1769; 1. Page 4 of 673 Adopt a Resolution directing the levy of the annual assessment for the Parkside Village Assessment District pursuant to the Landscaping and Lighting Act of 1972 (Streets and Highways Code Sections 22500 et. seq.) for Fiscal Year 2022-2023; 2. Adopt a Resolution directing the levy of the annual assessment for the Grace Lane Assessment District pursuant to the Landscaping and Lighting Act of 1972 (Streets and Highways Code Sections 22500 et. seq.) for Fiscal Year 2022-2023; and 3. Adopt a Resolution directing the levy of the annual assessment for the Landscaping and Lighting Assessment District No. 1 within Tract 1769, pursuant to the Landscaping and Lighting Act of 1972 (Streets and Highways Code Sections 22500 et. seq.) for Fiscal Year 2022-2023. 4. 9.c.Continued Discussion and Consideration of the 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. 10.OLD BUSINESS None. 11.NEW BUSINESS 11.a.Consideration of Proposals for Tourism Marketing Services for the Arroyo Grande Tourism Business Improvement District, Selection of a Marketing Firm, and Approval of an Agreement for Consultant Services (McDONALD) Recommended Action: 1) Review proposals received from Madison Strategies & Kassandra Maher Marketing and Verdin Marketing for AGTBID tourism marketing services; 2) Select a marketing firm; and 3) Authorize the City Manager to enter into an Agreement for Consultant Services in an amount not to exceed the approved budget amount in a form approved by the City Attorney. 11.b.Discussion and Consideration of Approval of the Fiscal Year (FY) 2022-23 Mid-Cycle Budget Update Report, the 5-Year Capital Improvement Program Budget, and the Updated Citywide Combined Salary Schedule, Including the Salary Range for a Management Analyst (McDONALD/ROBESON/VALENTINE) Recommended Action: 1) Discuss, consider, and adopt a Resolution approving the FY 2022-23 Mid-Cycle Budget Update and a Resolution approving the 5-Year Capital Improvement Program Budget; 2) Discuss, consider, and appropriate $2,150,000 of the Reserve Fund Balance toward directed expenditures; and 3) Adopt a Resolution establishing a salary range for a Management Analyst position and approving the updated Citywide Combined Salary Schedule. 12.COUNCIL COMMUNICATIONS Any Council Member may ask a question for clarification, make an announcement, or report briefly Page 5 of 673 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. 13.CLOSED SESSION None. 14.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 673 Item 6.c.Page 7 of 673 SPECIAL PRESENTATIONS: 6.d. Introduction of a New Employee – Raul Chavez, Police Officer (MARTINEZ/MATSON) Page 8 of 673 We Are Here: The confluence of urgency and opportunity San Luis Obispo Countywide Plan to Address Homelessness 2022-2027 Page 1 of 12 Item 6.e. Page 9 of 673 Vision Goal The San Luis Obispo region will reduce homelessness by ensuring that people at risk of losing housing can retain it, and those experiencing homelessness can equitably secure safe housing with appropriate supports,minimizing trauma to the individual, the community and the environment. Within 5 years, reduce the number of people experiencing homelessness countywide to 50% of the current level San Luis Obispo Countywide Plan to Address Homelessness We Are Here! Page 2 of 12 Item 6.e. Page 10 of 673 •Elaine Archer Dir of Housing Management, HASLO •Janna Nichols Executive Director, 5 Cities Homeless Coalition •Brenda Mack Lived Experience, Atascadero Resident •Anne Robin Behavioral Health Administrator •Kelsey Nocket Homeless Manager, City of SLO •John Peters Police Chief, Grover Beach •Scott Collins City Manager, Morro Bay •Susan Funk Council Member, Atascadero Chair of HSOC San Luis Obispo Countywide Plan to Address Homelessness We Are Here!Steering Committee Members Page 3 of 12 Item 6.e. Page 11 of 673 Situation Assessment San Luis Obispo Countywide Plan to Address Homelessness We Are Here! Current State Where are here How did we get here? Past Conditions We were here 2019 2022 Page 4 of 12 Item 6.e. Page 12 of 673 SLOCo Trends in Homelessness 2019-2022 Shelter & Service Capacity Expanded but Homelessness Is Growing Faster •ECHO Paso -50 new beds •ECHO Atascadero -10 new beds (60 total now) •CAPSLO –20 new Safe Parking spaces in SLO (27 total) •CAPSLO –New Medical Detox at Prado built in SLO (services pending) •County –New Kansas Ave Safe Parking in SLO (90 people) •5CHC –New Navigation Center in Grover Beach •5CHC –20 new Cabins for Change in Grover Beach •Street outreach ↑ across the county with COVID & CESH $$ •COVID Isolation trailers for homeless in 3 places •Hotel vouchers during COVID (temp) •Homelessness inflow > outflow by ~200 /year* •2018-2021: 6900 people received homeless services (2.4% of our population)* •2019 PIT Count found 1483 homeless, 1172 unsheltered (79%) •2022 PIT Count (Feb 23) data being developed •20+ open positions in County Behavioral Health •Non-Profits all experiencing staffing issues, concern about support to sustain expanded services -ECHO closed winter shelter 2 months early this year -ECHO capacity limited to 30 in Atascadero and 45 in Paso -CAPSLO support to Kansas avenue delayed San Luis Obispo Countywide Plan to Address Homelessness We Are Here! Staffing / sustainability is challenged Page 5 of 12 *Data from HMIS (Homeless Management Information System): Used by CAPSLO, ECHO, 5CHC and to collect data on people seeking services to solve or prevent homelessness. Item 6.e. Page 13 of 673 SLO County Regional Trends in Housing 2019-2022 More Vouchers and Support but Housing Market Tightens •Paso Motel 6 Conversion: 60 new units of Permanent Supportive Housing (PSH) •156 new Emergency Vouchers (Summer 2021) (600 applicants) •50 new units under construction in Pismo Beach -All units dedicated to work-force, low-income, transitional youth and the formerly homeless •New affordable units approved in SLO, Templeton, Atascadero, AG, GB over the next 5 years •50 Now at 65 Now (called “Housing NOW” moving forward) •SLO ranks as the nation’s 6th most expensive county •Ave rent from $1027 (2018) to $1800 in (2021)* •Deposit requirements ↑ 86% to $2130* •HUD Fair Market Rents ↑ 13.5% (2020 to 2021) and ↑ 46.1% since 2016* •Median rental HH spends 38% of income on housing* >50% of all rental households are at ↑ risk of homelessness •Eviction moratorium ending •Cost per unit of new affordable housing >$550k San Luis Obispo Countywide Plan to Address Homelessness We Are Here! ↑ Page 6 of 12 *Data from Rapid Rehousing Client support (provided by 5CHC) and HASLO Item 6.e. Page 14 of 673 •Year-round emergency capacity increased 73% •Total maximum capacity doubled 273 450 1483 158 225 0 200 400 600 800 1000 1200 1400 1600 1800 2000 # Observed Homeless Persons (Point in Time Count) Hard capacity (year-round)Maximum sheltering capacity, including weather- dependent SLO County Homelessness vs Shelter Capacity* 2022 2019Conducted Feb 2022San Luis Obispo Countywide Plan to Address Homelessness We Are Here!Capacity vs. Need # Homeless Despite capacity increases, on any given night, we have the capacity to shelter only 20-30% of the number of people observed as homeless in 2019 *NOTE: These numbers are best-case scenario. They assume COVID-related restrictions are lifted and added services are still funded and staffed Page 7 of 12 Item 6.e. Page 15 of 673 First Year •Sheltering Capacity •Prevention •Data Year 2-3 •Service Capacity •Regional Compact Year 4-5 •Housing Capacity •Data-driven refinements San Luis Obispo Countywide Plan to Address Homelessness We Are Here!5-Year Strategic Plan (by implementation phase) Draft Page 8 of 12 Item 6.e. Page 16 of 673 •Rapid implementation of more non-congregate sheltering/temporary housing capacity of all types -pallet shelter, cabins, tiny homes, safe parking •Seek funding to staff/expand services for mental health and substance abuse disorders; strengthen training in outreach and case management; actively engage persons with lived experience of homelessness into all phases of planning •Improve and expand HMIS and Coordinated Entry, for data-driven strategic oversight capabilities & operational guidance •Lay groundwork for a Regional Compact on homelessness. Deeper analysis quantifying needs and resources with specific housing needs of our homeless and inventory tools. Conduct focused planning efforts as needed on mental health, addiction (especially opioids), medically vulnerable individuals with complex needs, and expedited housing First 12 Months: Expand shelter/temp housing capacity and homeless prevention; improve data •Expand mental health, substance abuse disorder, and other supportive services & Permanent Supportive Housing (PSH) •Build and staff a Regional Homeless Operations Center to support navigation, reduce admin barriers and time to housing •Review and learn from rapid expansion of non-congregate sheltering capacity phase; fill in gaps, make improvements •Complete a Regional Compact on homelessness with jurisdiction-specific targets overall and for special needs populations •Expand data tracking and coordination with jail/probation/parole, hospitals, and sober living environments Year 2-3: Grow services and supportive housing capacity; formalize a data-driven Regional Compact •Complete more affordable housing projects, both traditional and non-traditional: Meet RHNA targets everywhere •Systematically work on speeding the path from homelessness to housing •Simplify the funding stream: Seek options for the County/CoC to get more grant funding and more flexibility •Solidify the gains with sustainable ongoing funding •Implement positive and negative incentives the Regional Compact Year 4-5: Grow affordable and appropriate housing; implement data-driven refinements We Are Here! 5-Year Strategic Plan Focus Points (by Phase) -Draft Page 9 of 12 Item 6.e. Page 17 of 673 COUNTY OF SAN LUIS OBISPO We Are Here! San Luis Obispo Countywide Plan to Address Homelessness Homeless Action Committee Page 10 of 12 Item 6.e. Page 18 of 673 COUNTY OF SAN LUIS OBISPO Intent: Develop Countywide Regional Collaboration that: guides rapidly-expanding shelter, service, navigation and housing capacity; improves data and outreach systems; creates, identifies and streamlines funding while generating support from citizens through communication, education and acces sible venues of action. Critical Events Objectives Key Dates 1. Open 5CHC Pallet Shelter 2. Open 2nd Safe Parking site 3. Open 40 Prado Pallet shelters 4. 5. 6. 7. 8. 9. 10. LOE 1: Expand Capacity 1.1 Open 5CHC Pallet Shelter (20) 1.2 Open second safe parking site (40) 1.3 PSSH Pismo (24) 1.4 HASLO AG site (65) 1.5 Expand Kansas Ave SF (20) 1.6 Est. Nav Center location 1.7 Build Nav Team 1.8 BUILD ADDICTION CAPACITY 1.9 BUILD LEGAL CAPACITY LOE 2: Data 2.1 Assess HMIS systems 2.2 Update user certification process 2.2.1 Individual Training 2.2.2 Inspection Processes 2.3 2.4 2.5 2.6 2.7 LOE 3: Funding 3.1 Release ARPA funding 3.2 Housing & Homeless Bonds 3.3 DSS / Planning Grant Conf 3.4 3.5 3.6 3.7 3.8 5. Communicate 5.1 Develop communication plan 5.2 Housing inventory / history 5.3 5.4 5.5 5.6 5.7 5.8 5.9 5.10 Lines of Effort LOE 1 (Main Effort): Build Shelter/Housing - Affordable and Appropriate LOE 2 (Sup Effort 1): Expand Services and Navigation LOE 3 (SE2): Improve HMIS & CES LOE 5 (SE4): Strengthen Regional Collaboration and Public Communications LOE 4 (SE3): Streamline Funding End State LOE 1: A mix of safe parking, emergency/transitional shelters, low-income, permanent supportive, and special-needs housing exist to reduce unsheltered living. LOE 2: BH, medical, financial assistance, identity-rebuilding, jail and hospital release services are robust and centralized. LOE 3: Standardized and efficient coordinated entry system employed by highly-trained and disciplined outreach workers feed an improved HMIS. LOE 5: Community leaders and citizens are better informed and willing to participate positively in addressing homeless issues. LOE 4: Synchronized planning and funding for homelessness exists across the region. 20232022 5.1 2.1 2.2 2.7 2.7.2 2.10 2.4 2.5 2.6 2.92.7.1 2.8 5.8 5.9 5.115.2 5.4 5.5 5.105.3 5.6 5.7 5.12 3.1 3.2 3.3 3.63.4 3.7 3.8 3.9 2.3 1.2.1 4.1 4.2 4.54.3 4.4 4.6 4.7 4.8 1.1 1.2 1.2.2 1.3 1.4 1.5 1.6 1.7 3.5 1 2 3 We Are Here! 1. CM Meeting March 11 2. Full HSOC March 16 3. Mayor’s Briefing Apr 15 4. BOS Brief Apr 19 5. 6. 7. 8. 9. 4. Regional Collaboration 4.1 Compact Planning Conf #1 4.2 Brief to City Managers 4.3 Compact Planning Conf #2 4.4 Brief to CMs 4.5 Brief to Mayors 4.6. 4.7 4.8 5-Year Operational Approach -Draft Page 11 of 12 Item 6.e. Page 19 of 673 COUNTY OF SAN LUIS OBISPO We Are Here! San Luis Obispo Countywide Plan to Address Homelessness Comments and Questions Page 12 of 12 Item 6.e. Page 20 of 673 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: June 14, 2022 SUMMARY OF ACTION: Review and ratify cash disbursements. IMPACT ON FINANCIAL AND PERSONNEL RESOURCES: There is a $2,001,538.76 fiscal impact that includes the following items:  Accounts Payable Checks $1,618,198.34  Payroll & Benefit Checks $383,340.42 RECOMMENDATION: Ratify the attached listing of cash disbursements for the period of May 1 through May 15, 2022. BACKGROUND: Cash disbursements are made weekly based on the submission of all required doc uments 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 21 of 673 Item 8.a. City Council Consideration of Cash Disbursement Ratification June 14, 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. May 1 – May 15, 2022 – Accounts Payable Check Register 2. May 6, 2022 – Payroll and Benefit Check Registers Page 22 of 673 CITY OF ARROYO GRANDECHECK LISTINGMAY 1 - MAY 15, 2022ATTACHMENT 1Line Check Date Check # Amount Description Acct # Vendor Name1 05/04/2022 293709 $ 228.69 UB REFUND CUSTOMER #00025264 640.0000.2301 PORSHA ASHLEY2 05/04/2022 293710 45.70 UB REFUND CUSTOMER #00028200 640.0000.2301 MARIAH AVERY3 05/04/2022 293711 46.88 UB REFUND CUSTOMER #00027191 640.0000.2301 BIANKA BUCHANAN4 05/04/2022 293712 64.71 UB REFUND CUSTOMER #00026404 640.0000.2301 LEAH GOLDEN5 05/04/2022 293713 68.06 UB REFUND CUSTOMER #00028003 640.0000.2301 VIRGINIA HARRISON6 05/04/2022 293714 83.96 UB REFUND CUSTOMER #00028433 640.0000.2301 SARA HAUGHEY7 05/04/2022 293715 95.23 UB REFUND CUSTOMER #00028085 640.0000.2301 DRAEKE LAYMAN8 05/04/2022 293716 74.38 UB REFUND CUSTOMER #00027267 640.0000.2301 JORDAN MORRISON9 05/04/2022 293717 227.23 UB REFUND CUSTOMER #00027656 640.0000.2301 TRACY MURPHY10 05/04/2022 293718 399.42 UB REFUND CUSTOMER #00003911 640.0000.2301 MARK PELL11 05/04/2022 293719 474.88 UB REFUND CUSTOMER #00027737 640.0000.2301 BRIAN SIZEMORE12 05/04/2022 293720 160.01 UB REFUND CUSTOMER #00026741 640.0000.2301 IRIS WIATER13 05/04/2022 293721 7,906.64 05/22 DELTA DENTAL PREMIUM 011.0000.2110 DELTA DENTAL14 05/04/2022 293721 2,500.77 05/22 DELTA DENTAL PREMIUM-RETIREES 010.4099.5132 DELTA DENTAL15 05/04/2022 293721 (0.98) ROUNDING DIFFERENCE 010.0000.4818 DELTA DENTAL16 05/04/2022 293722 4,020.00 PORAC MED INSURANCE: Payment 011.0000.2109 PERS - ACTIVE MED17 05/04/2022 293722 882.18 PPO PERS PLATINUM - SEIU: Payment 011.0000.2109 PERS - ACTIVE MED18 05/04/2022 293722 8,111.40 PPO PERS GOLD - MANAGEMENT: Payment 011.0000.2109 PERS - ACTIVE MED19 05/04/2022 293722 14,989.59 PPO PERS GOLD - POLICE: Payment 011.0000.2109 PERS - ACTIVE MED20 05/04/2022 293722 12,108.13 PPO PERS GOLD - SEIU: Payment 011.0000.2109 PERS - ACTIVE MED21 05/04/2022 293722 742.70 BLUE SHIELD TRIO HMO - MGMT: Payment 011.0000.2109 PERS - ACTIVE MED22 05/04/2022 293722 2,673.72 BLUE SHIELD TRIO HMO - POLICE: Payment 011.0000.2109 PERS - ACTIVE MED23 05/04/2022 293722 3,862.04 BLUE SHIELD TRIO HMO - SEIU: Payment 011.0000.2109 PERS - ACTIVE MED24 05/04/2022 293722 13,176.56 HMO-UNITED HEALTHCARE-MGMT: Payment 011.0000.2109 PERS - ACTIVE MED25 05/04/2022 293722 14,261.70 HMO UNITED HEALTHCARE-POLICE: Payment 011.0000.2109 PERS - ACTIVE MED26 05/04/2022 293722 17,982.14 HMO UNITED HEALTHCARE-SEIU: Payment 011.0000.2109 PERS - ACTIVE MED27 05/04/2022 293722 2,293.68 PERS PLATINUM-FIRE MANAGEMENT: Payment 011.0000.2109 PERS - ACTIVE MED28 05/04/2022 293722 4,058.04 PPO PERS PLATINUM - FIRE: Payment 011.0000.2109 PERS - ACTIVE MED29 05/04/2022 293722 8,816.76 PPO PERS GOLD - FIRE: Payment 011.0000.2109 PERS - ACTIVE MED30 05/04/2022 293722 9,146.08 HMO UNITED HEALTHCARE-FIRE: Payment 011.0000.2109 PERS - ACTIVE MED31 05/04/2022 293722 6,045.72 HMO-UNITED HEALTH FIRE-MGMT: Payment 011.0000.2109 PERS - ACTIVE MED32 05/04/2022 293722 6,939.71 RETIREE HEALTH INSURANCE 010.4099.5136 PERS - ACTIVE MED33 05/04/2022 293722 752.74 RETIREE HEALTH INSURANCE 220.4303.5136 PERS - ACTIVE MED34 05/04/2022 293722 98.24 ACTIVE HEALTH ADMIN FEE-FCFA 010.0000.1111 PERS - ACTIVE MED35 05/04/2022 293722 602.76 RETIREE HEALTH INSURANCE 010.0000.1111 PERS - ACTIVE MED36 05/04/2022 293722 209.75 ACTIVE HEALTH ADMIN FEE 010.4145.5131 PERS - ACTIVE MEDPage 23 of 673 CITY OF ARROYO GRANDECHECK LISTINGMAY 1 - MAY 15, 2022ATTACHMENT 1Line Check Date Check # Amount Description Acct # Vendor Name37 05/04/2022 293723 1,175.56 PERS GOLD - ELECTED: Payment 011.0000.2109 PERS - ACTIVE MED38 05/04/2022 293723 (1,175.56) PERS GOLD - ELECTED: Payment 011.0000.2109 PERS - ACTIVE MED39 05/04/2022 293723 2,015.23 UNITED HEALTH CARE-ELECTED: Payment 011.0000.2109 PERS - ACTIVE MED40 05/04/2022 293723 (2,015.23) UNITED HEALTH CARE-ELECTED: Payment 011.0000.2109 PERS - ACTIVE MED41 05/04/2022 293723 2,015.23 UNITED HEALTH CARE-ELECTED: Payment 011.0000.2109 PERS - ACTIVE MED42 05/04/2022 293723 1,175.56 PERS GOLD - ELECTED: Payment 011.0000.2109 PERS - ACTIVE MED43 05/04/2022 293724 7.98 ACTIVE HEALTH ADMIN FEE-PT NON-PERS 010.4145.5131 PERS - ACTIVE MED44 05/04/2022 293725 1,648.04 05/22 LIFE INSURANCE PREMIUM 011.0000.2113 STANDARD INSURANCE CO45 05/04/2022 293725 104.80 05/22 LIFE INSURANCE PREMIUM 011.0000.2113 STANDARD INSURANCE CO46 05/04/2022 293725 940.25 05/22 LIFE INSURANCE PREMIUM 011.0000.2113 STANDARD INSURANCE CO47 05/04/2022 293725 520.24 05/22 LIFE INSURANCE PREMIUM 011.0000.2113 STANDARD INSURANCE CO48 05/04/2022 293725 23.50 05/22 LIFE INSURANCE PREMIUM 011.0000.2113 STANDARD INSURANCE CO49 05/04/2022 293726 2,074.62 05/22 VSP PREMIUMS 011.0000.2119 VISION SERVICE PLAN50 05/04/2022 293726 645.62 05/22 VSP PREMIUMS RETIREES 010.4099.5133 VISION SERVICE PLAN51 05/04/2022 293726 (0.76) ROUNDING DIFFERENCE 010.0000.4818 VISION SERVICE PLAN52 05/04/2022 293727 686.31 SOFTBALLS FOR ADULT LEAGUE 010.4424.5257 AD STARR53 05/04/2022 293728 448.00 TAI CHI WINTER SESSION 2010.4424.5351 DIXIE D ADENIRAN54 05/04/2022 293729 24,077.20 03/22 PROFESSIONAL LEGAL SERVICES 010.4003.5304 CARMEL & NACCASHA, LLP55 05/04/2022 293729 2,905.50 03/22 LITIGATION & RELATED MATTERS 010.4003.5327 CARMEL & NACCASHA, LLP56 05/04/2022 293730 122.11 ACCT#8245100960129431 215 E BRANCH 010.4145.5401 CHARTER COMMUNICATIONS57 05/04/2022 293730 199.98 ACCT#8245100960104152 PD INTERNET 010.4201.5403 CHARTER COMMUNICATIONS58 05/04/2022 293730 1,349.00 ACCT#8245100960301246 215 E BRANCH 211.4101.5330 CHARTER COMMUNICATIONS59 05/04/2022 293730 53.37 ACCT#8245100960221923 PW TV 010.4307.5303 CHARTER COMMUNICATIONS60 05/04/2022 293731 96.00 04/22 CLOGGING CLASSES 010.4424.5351 KATHLEEN J CINOWALT61 05/04/2022 293732 503.38 SVC CALL-FORK LIFT 220.4303.5603 CROMER INC62 05/04/2022 293732 2,156.57 REPAIR FORK LIFT 220.4303.5603 CROMER INC63 05/04/2022 293733 324.80 04/22 SR FITNESS 010.4424.5351 GAYLE CUDDY64 05/04/2022 293734 400.00 03/22 UTILITY BILL MAILING 640.4710.5303 DATAPROSE LLC65 05/04/2022 293734 427.28 03/22 UTILITY BILL MAILING 640.4710.5555 DATAPROSE LLC66 05/04/2022 293734 1,359.27 03/22 UTILITY BILL MAILING 640.4710.5208 DATAPROSE LLC67 05/04/2022 293734 106.82 03/22 UTILITY BILL MAILING 612.4610.5555 DATAPROSE LLC68 05/04/2022 293735 2,337.00 01/22-03/22 DSA FEES FROM BUSINESS LICENSES 010.0000.4050 DIVIS. OF THE STATE ARCHITECT69 05/04/2022 293735 (2,103.30) LESS 90% CITY RETAINS 010.0000.2231 DIVIS. OF THE STATE ARCHITECT70 05/04/2022 293736 1,104.00 SKATE CLASS WINTER SESSION 4010.4424.5351 DOOMSDAY SKATE LLC71 05/04/2022 293737 798.00 NEEDLE ARTS 03/04-04/28 010.4424.5351 ELIZABETH FRYER72 05/04/2022 293738 1,183.00 SERGER SEWING WINTER SESSION 2010.4424.5351 MARY JO GABELPage 24 of 673 CITY OF ARROYO GRANDECHECK LISTINGMAY 1 - MAY 15, 2022ATTACHMENT 1Line Check Date Check # Amount Description Acct # Vendor Name73 05/04/2022 293739 967.50 GHD TRAFFIC REVIEW SERVICES 010.4301.5303 GHD INC74 05/04/2022 293740 30.17 SUPPLIES - NAME SIGN 010.4001.5201 GRAND AWARDS, INC75 05/04/2022 293740 14.01 SUPPLIES - NAME SIGN 010.4002.5201 GRAND AWARDS, INC76 05/04/2022 293741 41.31 05/22 EAP AETNA RESOURCES-FCFA 010.0000.1111 HEALTH AND HUMAN RESOURCE CTR77 05/04/2022 293741 165.24 05/22 EAP AETNA RESOURCES 010.4145.5147 HEALTH AND HUMAN RESOURCE CTR78 05/04/2022 293742 22,768.55 4973 GALLONS GASOLINE 010.0000.1202 JB DEWAR, INC79 05/04/2022 293743 300.00 ADULT SOFTBALL UMPIRE SCHEDULE 010.4424.5352 LARRY JUAREZ, SR80 05/04/2022 293744 182.00 ADULT BASKETBALL SCORER 13 GAM 010.4424.5352 JHADE LA PAZ81 05/04/2022 293745 756.12 SHORETEL PHONE CHARGES - CITY 010.4145.5403LEVEL 3 COMMUNICATIONS LLC82 05/04/2022 293745 756.12 SHORETEL PHONE CHARGES - CITY 010.4201.5403LEVEL 3 COMMUNICATIONS LLC83 05/04/2022 293746 80.00 04/22 YOGA IN THE PARK 010.4424.5351 NICCOLA NELSON84 05/04/2022 293747 33.98 REIMBURSE-STROTHER RIBBON CUTTING 010.4421.5255 LINDSEY OVERSTREET85 05/04/2022 293747 33.75 REIMBURSE-EGG HUNT SUPPLIES 010.4424.5252 LINDSEY OVERSTREET86 05/04/2022 293748 16,922.84 ELECTRIC-STREET LIGHTING 010.4307.5402 PACIFIC GAS & ELECTRIC CO87 05/04/2022 293749 3,920.00 QUILTING WINTER SESSION 2010.4424.5351 BARBARA ANN PORTER88 05/04/2022 293750 409.50 PURGE PROPANE FUEL LINE FOLLOWING REPAIR 010.4213.5303 SAN LUIS POWERHOUSE89 05/04/2022 293750 61.25 PURGE PROPANE FUEL LINE FOLLOWING REPAIR 010.4213.5303 SAN LUIS POWERHOUSE90 05/04/2022 293751 60.00 ADULT SOFTBALL SCORER 4 GAMES 010.4424.5352 MAIA SANCHEZ91 05/04/2022 293752 180.00 ADULT SOFTBALL SCORER- 8 GAMES 010.4424.5352 MARTINA SARMIENTO92 05/04/2022 293753 213,378.35 SEWER SERVICES COLLECTIONS 760.0000.2304 SOUTH SLO COUNTY SANIT DIST93 05/04/2022 293753 1,856.00 SEWER SERVICES COLLECTIONS 760.0000.2305 SOUTH SLO COUNTY SANIT DIST94 05/04/2022 293753 8.81 SEWER SERVICES COLLECTIONS 010.4145.5401 SOUTH SLO COUNTY SANIT DIST95 05/04/2022 293753 8.81 SEWER SERVICES COLLECTIONS 010.4145.5401 SOUTH SLO COUNTY SANIT DIST96 05/04/2022 293753 8.81 SEWER SERVICES COLLECTIONS 010.4145.5401 SOUTH SLO COUNTY SANIT DIST97 05/04/2022 293753 8.81 SEWER SERVICES COLLECTIONS 010.4145.5401 SOUTH SLO COUNTY SANIT DIST98 05/04/2022 293753 8.81 SEWER SERVICES COLLECTIONS 010.4145.5401 SOUTH SLO COUNTY SANIT DIST99 05/04/2022 293753 8.81 SEWER SERVICES COLLECTIONS 010.4145.5401 SOUTH SLO COUNTY SANIT DIST100 05/04/2022 293753 8.81 SEWER SERVICES COLLECTIONS 010.4145.5401 SOUTH SLO COUNTY SANIT DIST101 05/04/2022 293753 8.81 SEWER SERVICES COLLECTIONS 010.4145.5401 SOUTH SLO COUNTY SANIT DIST102 05/04/2022 293753 8.81 SEWER SERVICES COLLECTIONS 010.4145.5401 SOUTH SLO COUNTY SANIT DIST103 05/04/2022 293753 8.81 SEWER SERVICES COLLECTIONS 010.4145.5401 SOUTH SLO COUNTY SANIT DIST104 05/04/2022 293753 8.81 SEWER SERVICES COLLECTIONS 010.4145.5401 SOUTH SLO COUNTY SANIT DIST105 05/04/2022 293753 8.81 SEWER SERVICES COLLECTIONS 010.4145.5401 SOUTH SLO COUNTY SANIT DIST106 05/04/2022 293754 3,209.00 SCIENCE BREAK SCIENCE CAMPS 010.4424.5351 STEAMWORKS FOR KIDS107 05/04/2022 293755 64.25 TOLL & PENALTY PD-4622 010.4203.5501 THE TOLL ROADS108 05/04/2022 293756 3,864.44 POSTAGE FOR SUMMER 22 ACTIVITY 010.4421.5504 US POSTMASTERPage 25 of 673 CITY OF ARROYO GRANDECHECK LISTINGMAY 1 - MAY 15, 2022ATTACHMENT 1Line Check Date Check # Amount Description Acct # Vendor Name109 05/04/2022 293757 16,931.25 INTEREST- CITY HALL LOAN 472.4101.5802 USDA110 05/04/2022 293758 124.80 ART FOR KIDS 04/22 PUNCHCARDS 010.4424.5351 PEGGY VALKO111 05/04/2022 293758 256.00 04/12 ADULT ART PARTY: 010.4424.5351 PEGGY VALKO112 05/04/2022 293759 226.50 MANAGEMENT OF FATS, OILS & GREASE PROGRAM 612.4610.5303 WALLACE GROUP A CALIF CORP113 05/04/2022 293759 86.50 2014 SEWER SYSTEM MANAGEMENT PLAN UPDATE 612.4610.5303 WALLACE GROUP A CALIF CORP114 05/04/2022 293760 3,408.45 NCMA STAFF EXTENSION SERVICES 640.4710.5303 WATER SYSTEMS CONSULTING INC115 05/04/2022 293760 4,565.00 2021 URBAN WATER MANAGEMENT PLAN PREP 640.4710.5303 WATER SYSTEMS CONSULTING INC116 05/04/2022 293760 8,427.50 2021 URBAN WATER MANAGEMENT PLAN PREP 640.4710.5303 WATER SYSTEMS CONSULTING INC117 05/04/2022 293761 1,522.50 SANTA MARIA ADJUDICATION IMPLEMENTATION 640.4710.5575 WHITE BRENNER LLP118 05/04/2022 293762 30.00 ADULT SOFTBALL SCORER 2 GAMES 010.4424.5352 SHIRLEY WILLMOTT119 05/04/2022 293763 6,496.93 SOCCER SPRING BREAK CAMP & SAT. PWR 010.4424.5351 YOUTH EVOLUTION BASKETBALL120 05/04/2022 293763 3,845.24 BASKETBALL SPRING BREAK CAMP & WINTER 010.4424.5351 YOUTH EVOLUTION BASKETBALL121 05/10/2022 293764 42,435.69 FEDERAL WITHHOLDING: Payment 011.0000.2104 CITY OF ARROYO GRANDE122 05/10/2022 293764 49,768.84 SOCIAL SECURITY: Payment 011.0000.2105 CITY OF ARROYO GRANDE123 05/10/2022 293764 12,170.04 MEDICARE: Payment 011.0000.2105 CITY OF ARROYO GRANDE124 05/10/2022 293765 17,127.46 STATE WITHHOLDING: Payment 011.0000.2108 CA ST EMPLOYMENT DEVEL DEPT125 05/10/2022 293765 2,230.20 CASDI: Payment 011.0000.2111 CA ST EMPLOYMENT DEVEL DEPT126 05/10/2022 293766 695.52 DEPT OF CHILD SUPPORT SERVICES 011.0000.2114 CA STATE DISBURSEMENT UNIT127 05/10/2022 293767 3,504.65 DEFERRED COMPENSATION - EE %: Payment 011.0000.2117 ICMA RETIREMENT CORP128 05/10/2022 293767 11,538.65 DEFERRED COMPENSATION - EE: Payment 011.0000.2117 ICMA RETIREMENT CORP129 05/10/2022 293767 866.66 DEFERRED COMPENSATION - ER: Payment 011.0000.2117 ICMA RETIREMENT CORP130 05/10/2022 293767 275.00 ROTH - AFTER TAX: Payment 011.0000.2117 ICMA RETIREMENT CORP131 05/10/2022 293768 30,170.43 PERS RETIREMENT: Payment 011.0000.2106 PERS - RETIREMENT132 05/10/2022 293768 49,734.35 PERS RETIREMENT: Payment 011.0000.2106 PERS - RETIREMENT133 05/10/2022 293768 117.11 PERS BUYBACK - AFTER TAX: Payment 011.0000.2106 PERS - RETIREMENT134 05/10/2022 293768 1,384.30 PERS Employer Pick Up: Payment 011.0000.2106 PERS - RETIREMENT135 05/10/2022 293768 259.69 PERS BUYBACK - PRE TAX: Payment 011.0000.2106 PERS - RETIREMENT136 05/10/2022 293768 (0.04) ROUNDING DIFFERENCE 010.0000.4818 PERS - RETIREMENT137 05/10/2022 293768 (4.93) PRIOR PP CORRECTION 010.4307.5121 PERS - RETIREMENT138 05/10/2022 293769 1,351.29 PARS: Payment 011.0000.2107 US BANK OF CALIFORNIA139 05/13/2022 293770 268.00 REFUND-BUS LIC OVERPAYMENT 010.0000.4050 ALLIANCE READY MIX, INC140 05/13/2022 293771 240.91 OFFICE SUPPLIES 010.4201.5201 AMAZON CAPITAL SERVICES141 05/13/2022 293771 189.55 PEACE OFFICER MEMORIAL TABLE COVERS 010.4201.5255 AMAZON CAPITAL SERVICES142 05/13/2022 293771 57.82 ADMIN FLEET UPLIFTING 010.4201.5601 AMAZON CAPITAL SERVICES143 05/13/2022 293771 323.15 (10) CA STATE FLAGS 010.4213.5604 AMAZON CAPITAL SERVICES144 05/13/2022 293771 689.45 (5) CASES NITRILE GLOVES 010.4420.5605 AMAZON CAPITAL SERVICESPage 26 of 673 CITY OF ARROYO GRANDECHECK LISTINGMAY 1 - MAY 15, 2022ATTACHMENT 1Line Check Date Check # Amount Description Acct # Vendor Name145 05/13/2022 293771 308.18 SCHOOL YEAR SUPPLIES010.4425.5255 AMAZON CAPITAL SERVICES146 05/13/2022 293771 235.97 DEWALT MITER SAW STAND 220.4303.5273 AMAZON CAPITAL SERVICES147 05/13/2022 293771 206.96 DEWALT LEAF BLOWER 220.4303.5273 AMAZON CAPITAL SERVICES148 05/13/2022 293771 51.48 UNIFORMS- BLACK BOW TIES 010.4203.5272 AMAZON CAPITAL SERVICES149 05/13/2022 293771 43.08 TRAINING SUPPLIES 010.4204.5255 AMAZON CAPITAL SERVICES150 05/13/2022 293772 (58.00) PARK RENTAL-STROTHER 010.0000.4354 HEATHER ANDREWS151 05/13/2022 293772 108.00 PARK DEPOSIT REFUND-STROTHER 010.0000.4605 HEATHER ANDREWS152 05/13/2022 293773 100.00 PARK DEPOSIT REFUND-STROTHER 010.0000.2206 KRYSTAL APPIANO153 05/13/2022 293774 167.92 04/22 COMM MAINT 010.4204.5606APPLIED TECHNOLOGY GROUP INC154 05/13/2022 293774 167.92 05/22 COMM MAINT 010.4204.5606APPLIED TECHNOLOGY GROUP INC155 05/13/2022 293775 100.07 BLDG MAINT HATS 010.4213.5143 ARAMARK UNIFORM SERVICES156 05/13/2022 293775 100.07 AUTO SHOP HATS 010.4305.5143 ARAMARK UNIFORM SERVICES157 05/13/2022 293775 100.07 PARKS DEPT HATS 010.4420.5143 ARAMARK UNIFORM SERVICES158 05/13/2022 293775 100.07 SOTO SPORTS COMPLEX HATS 010.4430.5143 ARAMARK UNIFORM SERVICES159 05/13/2022 293775 100.07 STREETS DEPT HATS 220.4303.5143 ARAMARK UNIFORM SERVICES160 05/13/2022 293775 100.07 SEWER DEPT HATS 612.4610.5143 ARAMARK UNIFORM SERVICES161 05/13/2022 293775 104.51 WATER DEPT HATS 640.4712.5143 ARAMARK UNIFORM SERVICES162 05/13/2022 293776 7.01 BLDG MAINT UNIFORMS 010.4213.5143 ARAMARK UNIFORM SERVICES163 05/13/2022 293776 28.50 CORP YARD MATS 010.4213.5303 ARAMARK UNIFORM SERVICES164 05/13/2022 293776 3.51 AUTO SHOP UNIFORMS 010.4305.5143 ARAMARK UNIFORM SERVICES165 05/13/2022 293776 10.45 AUTO SHOP TOWELS 010.4305.5303 ARAMARK UNIFORM SERVICES166 05/13/2022 293776 13.83 PARKS DEPT UNIFORMS 010.4420.5143 ARAMARK UNIFORM SERVICES167 05/13/2022 293776 7.00 SOTO SPORTS COMPLEX UNIFORMS 010.4430.5143 ARAMARK UNIFORM SERVICES168 05/13/2022 293776 14.00 STREETS DEPT UNIFORMS 220.4303.5143 ARAMARK UNIFORM SERVICES169 05/13/2022 293776 7.01 SEWER DEPT UNIFORMS 612.4610.5143 ARAMARK UNIFORM SERVICES170 05/13/2022 293776 13.29 WATER DEPT UNIFORMS 640.4712.5143 ARAMARK UNIFORM SERVICES171 05/13/2022 293777 48.99 JACKET W/EMBLEM -GARRITY 612.4610.5143 ARAMARK UNIFORM SERVICES172 05/13/2022 293777 48.99 JACKET W/EMBLEM-KAUFMAN 640.4712.5143 ARAMARK UNIFORM SERVICES173 05/13/2022 293778 9.80 PARKS DEPT MATS/MOPHEADS 010.4213.5303 ARAMARK UNIFORM SERVICES174 05/13/2022 293779 22.49 BAN#9391033180 CITY HALL FAX 010.4145.5403 AT&T175 05/13/2022 293779 22.39 BAN#9391033186 CC MACHINE 010.4145.5403 AT&T176 05/13/2022 293779 33.11 BAN#9391033183 AGPD 010.4201.5403 AT&T177 05/13/2022 293779 242.51 BAN#9391033184 AGPD 010.4201.5403 AT&T178 05/13/2022 293779 62.14 BAN#9391033187 AGPD 010.4201.5403 AT&T179 05/13/2022 293779 43.10 BAN#9391033181 ALARM 640.4710.5403 AT&T180 05/13/2022 293780 1,698.16 REINSPECTION-FUEL PUMPS 010.4305.5303 B & T SVC STN CONTRACTORS, INCPage 27 of 673 CITY OF ARROYO GRANDECHECK LISTINGMAY 1 - MAY 15, 2022ATTACHMENT 1Line Check Date Check # Amount Description Acct # Vendor Name181 05/13/2022 293780 145.00 UST INSPECTION-YARD FUEL PUMPS 010.4305.5303 B & T SVC STN CONTRACTORS, INC182 05/13/2022 293781 168.00 PW-10-CLEAR CK ENG LIGHT & REPROGRAM PCM 640.4712.5601 BACK ON THE ROAD AUTOMOBILE183 05/13/2022 293781 1,669.43 PD-4608 REPAIR 010.4203.5601 BACK ON THE ROAD AUTOMOBILE184 05/13/2022 293782 50.00 PARK DEPOSIT REFUND-RANCHO GRANDE 010.0000.2206 NICHOLE BENESCH185 05/13/2022 293783 481.11 PATROL SUPPLIES-VEHICLE CK PRKG WARNING 010.4203.5255 BOONE PRINTING & GRAPHICS INC186 05/13/2022 293784 225.00 REC-FLEA CONTROL 010.4213.5303 BREZDEN PEST CONTROL, INC187 05/13/2022 293785 32.61 LUMBER-4X4 MOF 010.4213.5604 BRISCO MILL & LUMBER YARD188 05/13/2022 293785 60.89 LUMBER (1) 4X8X5/8 010.4213.5604 BRISCO MILL & LUMBER YARD189 05/13/2022 293785 60.89 LUMBER (1) 4X8X5/8 010.4213.5604 BRISCO MILL & LUMBER YARD190 05/13/2022 293785 81.39 RECIP BLADES, PRIMER, KILZ 010.4420.5605 BRISCO MILL & LUMBER YARD191 05/13/2022 293785 96.34 GLUE, TAPE, 16' STRAP 010.4420.5605 BRISCO MILL & LUMBER YARD192 05/13/2022 293785 90.48 BROOM, PRUNING SAW, TIEDOWNS 010.4420.5605 BRISCO MILL & LUMBER YARD193 05/13/2022 293785 98.02 SAW HORSES, CLAMPS 010.4420.5605 BRISCO MILL & LUMBER YARD194 05/13/2022 293785 110.27 LUMBER- (6) 2X4X10 DF 010.4420.5605 BRISCO MILL & LUMBER YARD195 05/13/2022 293785 72.17 PQ-56 BOLT CUTTER, FRESHENER 220.4303.5613 BRISCO MILL & LUMBER YARD196 05/13/2022 293786 2,240.00 CASH FOR GRASS 2240 SQFT 226.4306.5554 MICHAEL BUSBY197 05/13/2022 293787 300.00 EGG HUNT BOUNCE HOUSES & GENERATORS 010.4424.5252 CENTRAL COAST PARTY FACTORY198 05/13/2022 293788 50.00 PARK DEPOSIT REFUND-RANCHO GRANDE 010.0000.2206 SAMANTHA CHICKERING199 05/13/2022 293789 563.00 CASH FOR GRASS 563 SQFT 226.4306.5554CHRISTINE CLAXTON200 05/13/2022 293790 200.00 REFUND NON POTABLE WATER DEPOSIT 640.0000.2303 CML CONSTRUCTION201 05/13/2022 293791 2,908.28 (2) RUBBER TRACK FOR SKID STEER 220.4303.5603 COASTLINE EQUIPMENT(DBA)202 05/13/2022 293792 339.17 REPAIR GOPHER MACHINE 010.4430.5603 CONTRACTORS MAINT.SERVICES203 05/13/2022 293793 50.00 PARK DEPOSIT REFUND-ELM ST 010.0000.2206 SARAH CORDOVA204 05/13/2022 293794 440.00 DEPT MEMBERSHIP RENEWAL 06/22-06/23 010.4201.5503 CPCA - CA POLICE CHIEFS ASSN205 05/13/2022 293795 826.69 ELECTRIC GATE REPAIR 010.4201.5606 CREATIVE FENCE CO.206 05/13/2022 293795 676.04 REPAIR PW ROLLING GATE 010.4213.5303 CREATIVE FENCE CO.207 05/13/2022 293796 261.83 CENTRAL COAST BLUE PLAN SETS 640.4710.5201 CRISP IMAGING208 05/13/2022 293797 84.25 REPAIR CITY HALL GENERATOR 010.4213.5604 DELTA LIQUID ENERGY209 05/13/2022 293798 286.28 BOOSTER CABLE SET, HEX SOCKET 010.4305.5603 DNB INDUSTRIAL SUPPLY210 05/13/2022 293799 243.00 REFUND-CIM SUMMER WK 3 06/27-07/01 010.0000.4602 MICHAEL DOREMUS211 05/13/2022 293799 149.00 REFUND-AYSO SOCCER CAMP 010.0000.4605 MICHAEL DOREMUS212 05/13/2022 293800 50.00 PARK DEPOSIT REFUND-HERITAGE SQUARE 010.0000.2206 NOELLE DOWNING213 05/13/2022 293801 513,015.25 04/22-06/22 CITIES SHARE OF FCFA COSTS 010.4145.5313 FIVE CITIES FIRE AUTHORITY214 05/13/2022 293801 132,223.50 04/22-06/22 CITIES SHARE OF FCFA COSTS 218.4101.5313 FIVE CITIES FIRE AUTHORITY215 05/13/2022 293802 704.00 CASH FOR GRASS 704 SQFT 226.4306.5554 ROBERT FLORA216 05/13/2022 293803 50.00 PARK DEPOSIT REFUND-STROTHER 010.0000.2206 BLAIR FREITASPage 28 of 673 CITY OF ARROYO GRANDECHECK LISTINGMAY 1 - MAY 15, 2022ATTACHMENT 1Line Check Date Check # Amount Description Acct # Vendor Name217 05/13/2022 293804 3,947.40 TOUGHSAT SYSTEM 271.4202.6201 GROUND CONTROL SYSTEMS INC218 05/13/2022 293805 50.00 PARK DEPOSIT REFUND-ELM ST 010.0000.2206 TAYLOR HAENEL219 05/13/2022 293806 2,287.92 FIRE STN DOOR REPAIR010.4213.5303 HAMON OVERHEAD DOOR CO INC220 05/13/2022 293807 34.00 REFUND BUSINESS LICENSE 010.0000.4050 REDILYN HOLLADAY221 05/13/2022 293807 166.00 REFUND-HOME OCC PERMIT 010.0000.4509 REDILYN HOLLADAY222 05/13/2022 293808 99.00 REFUND-DOGGIE GOOD MANNERS 010.0000.4605 KATHLEEN JANZEN223 05/13/2022 293809 175.00 REFUND-SCIENCE CAMP 010.0000.4605 ALICIA JUDD224 05/13/2022 293810 1,720.00 CASH FOR GRASS 1720 SQFT 226.4306.5554 GEORGE KASTNER225 05/13/2022 293811 1,277.90 PROFESSIONAL FEES - MARCH 010.0000.2563 KOSMONT & ASSOCIATES INC226 05/13/2022 293811 2,220.40 PROFESSIONAL FEES - MARCH 010.0000.2563 KOSMONT & ASSOCIATES INC227 05/13/2022 293812 55.18 PARTIAL REFUND OF BLDG PERMIT 010.0000.4181 LEO'S ROOFING228 05/13/2022 293813 50.00 PARK DEPOSIT REFUND-ELM ST 010.0000.2206 CASEY LINTNER229 05/13/2022 293814 50.00 PARK DEPOSIT REFUND-STROTHER 010.0000.2206 BRANDY LOPEZ230 05/13/2022 293814 26.00 REFUND-BOUNCE HOUSE FEE 010.0000.4354 BRANDY LOPEZ231 05/13/2022 293815 127.50 11/21 ROOM USE FEES-BRANCH 010.4425.5303 LUCIA MAR UNIFIED SCHOOL DIST232 05/13/2022 293815 172.50 03/22 ROOM USE FEES OCEANVIEW 010.4425.5303 LUCIA MAR UNIFIED SCHOOL DIST233 05/13/2022 293815 172.50 03/22 ROOM USE FEES BRANCH 010.4425.5303 LUCIA MAR UNIFIED SCHOOL DIST234 05/13/2022 293815 127.50 11/21 ROOM USE FEES -OCEANVIEW 010.4425.5303 LUCIA MAR UNIFIED SCHOOL DIST235 05/13/2022 293815 22.50 11/21 ROOM USE FEES-OCEANVIEW 010.4425.5303 LUCIA MAR UNIFIED SCHOOL DIST236 05/13/2022 293816 50.00 PARK DEPOSIT REFUND-STROTHER 010.0000.2206 APRIL LUIS237 05/13/2022 293817 50.00 PARK DEPOSIT REFUND-STROTHER 010.0000.2206 JEREMY MACE238 05/13/2022 293818 96.95 REIMB-AG BAKERY EMPLOYEE RECOGNITION 010.4101.5319 JESSICA MATSON239 05/13/2022 293819 50.00 PARK DEPOSIT REFUND-RANCHO GRANDE 010.0000.2206 STACY MILLARD240 05/13/2022 293820 18.88 ADMIN FLEET UPLIFTING 010.4201.5601 MINER'S ACE HARDWARE, INC241 05/13/2022 293820 80.33 ADMIN FLEET UPLIFTING 010.4201.5601 MINER'S ACE HARDWARE, INC242 05/13/2022 293820 14.08 ADMIN FLEET UPLIFTING 010.4201.5601 MINER'S ACE HARDWARE, INC243 05/13/2022 293820 15.27 PAINTBRUSHES 010.4213.5604 MINER'S ACE HARDWARE, INC244 05/13/2022 293820 16.15 LED BULB 010.4213.5604 MINER'S ACE HARDWARE, INC245 05/13/2022 293820 25.80 (6) CHAIN COIL 010.4420.5605 MINER'S ACE HARDWARE, INC246 05/13/2022 293820 102.31 SPRAYER, PLIERS, WRENCH, SCREWS 010.4420.5605 MINER'S ACE HARDWARE, INC247 05/13/2022 293820 8.69 HANDLE 220.4303.5613 MINER'S ACE HARDWARE, INC248 05/13/2022 293820 4.95 RANGE MAINTENANCE 010.4203.5255 MINER'S ACE HARDWARE, INC249 05/13/2022 293821 100.00 PARK DEPOSIT REFUND-STROTHER 010.0000.2206 TASHA MIRELES250 05/13/2022 293822 50.00 PARK DEPOSIT REFUND-RANCHO GRANDE 010.0000.2206 JENNY MORGAN251 05/13/2022 293823 140.00 PW-5 REPAIR TO FRONT END 640.4712.5601 MULLAHEY FORD252 05/13/2022 293824 50.00 PARK DEPOSIT REFUND-HERITAGE SQUARE 010.0000.2206 HEATHER MURANPage 29 of 673 CITY OF ARROYO GRANDECHECK LISTINGMAY 1 - MAY 15, 2022ATTACHMENT 1Line Check Date Check # Amount Description Acct # Vendor Name253 05/13/2022 293825 59.56 MAINT AGREEMENT-COPIER 010.4204.5602 OFFICE1254 05/13/2022 293826 50.00 PARK DEPOSIT REFUND-ELM ST 010.0000.2206 KENDRA PAULDING255 05/13/2022 293827 119.95 05/22 WIFI HUBNER SITE 010.4201.5403PEAKWIFI LLC256 05/13/2022 293828 236.28 02/22 PKG CITATIONS PROCESSING 010.4204.5303 PHOENIX GROUP257 05/13/2022 293829 11,401.88 02/22 CWSRF APPLICATION640.5975.7501 CITY OF PISMO BEACH258 05/13/2022 293829 1,872.50 01/22 CCB EIR 640.5975.7501 CITY OF PISMO BEACH259 05/13/2022 293829 1,601.88 01/22 CWSRF APPLICATION 640.5975.7501 CITY OF PISMO BEACH260 05/13/2022 293829 1,687.78 12/21 CCB EIR 640.5975.7501 CITY OF PISMO BEACH261 05/13/2022 293829 59,213.75 12/21 CWSRF 640.5975.7501 CITY OF PISMO BEACH262 05/13/2022 293829 56,469.38 11/21 CWSRF 640.5975.7501 CITY OF PISMO BEACH263 05/13/2022 293829 30,250.63 10/21 CWSRF 640.5975.7501 CITY OF PISMO BEACH264 05/13/2022 293829 24,792.50 01/21-09/21 CCB PM SVC 640.5975.7501 CITY OF PISMO BEACH265 05/13/2022 293830 104.39 POSTAGE MACH-RED INK CARTRIDGE 010.4204.5602 PITNEY BOWES266 05/13/2022 293831 251.63 POSTAGE MACHINE LEASE 010.4204.5602 PITNEY BOWES, INC267 05/13/2022 293832 484.37 04/22 GRACE LANE LANDSCAPE MAINTENANCE 216.4460.5304 RAINSCAPE268 05/13/2022 293832 1,201.41 04/22 PARKSIDE LANDSCAPE MAINTENANCE 219.4460.5304 RAINSCAPE269 05/13/2022 293833 50.00 PARK DEPOSIT REFUND-STROTHER 010.0000.2206 CINTHYA ALCANTAR ROJAS270 05/13/2022 293834 231.58 REIMBURSEMENT-EGG HUNT SIGNAGE 010.4424.5252 THOMAS & NORMA ROSS271 05/13/2022 293835 50.00 PARK DEPOSIT REFUND-STROTHER #1 010.0000.2206 JOE ROULEAU272 05/13/2022 293836 107.75 (1) CASE BLUE SHOP TOWELS 010.4420.5605 S & L SAFETY PRODUCTS273 05/13/2022 293836 517.20 (4) CASES GLOVES 220.4303.5613 S & L SAFETY PRODUCTS274 05/13/2022 293837 675.90 LIFT STN #1 GENERATOR REPAIR 612.4610.5603 SAN LUIS POWERHOUSE275 05/13/2022 293838 50.00 PARK DEPOSIT REFUND-STROTHER 010.0000.2206 MELISSA SANCHEZ276 05/13/2022 293839 339.99 IRRIGATION NOZZLES-CITY LANDSCAPE 226.4306.5303 SITEONE LANDSCAPE SUPPLY LLC277 05/13/2022 293840 417.00 03/22 PARKING CITATION REV DIST 010.0000.4203 SLO COUNTY AUDITOR-CONTROLLER278 05/13/2022 293841 50.00 FILING FEE-SEWER LINING PROJECT 010.4002.5101 SLO COUNTY CLERK-RECORDER279 05/13/2022 293842 2,676.98 CLETS 2022 010.4204.5606 SLO COUNTY SHERIFF'S DEPT280 05/13/2022 293843 99.00 REFUND-DOGGIE GOOD MANNERS 010.0000.4605 JOY SMITH281 05/13/2022 293844 16.06 GAS SERVICES-1500 W BRANCH 010.4145.5401 SOCALGAS282 05/13/2022 293844 42.44 GAS SERVICES-111 S MASON 010.4145.5401 SOCALGAS283 05/13/2022 293844 42.43 GAS SERVICES-211 VERNON ST 010.4145.5401 SOCALGAS284 05/13/2022 293844 20.27 GAS SERVICES-215 E BRANCH 010.4145.5401 SOCALGAS285 05/13/2022 293845 621.20 UNIFORMS-GIESMANN 010.4203.5272 TEMPLETON UNIFORMS286 05/13/2022 293846 94.20 PD-4617 OIL CHG 010.4204.5601 TOM'S AUTO SERVICE287 05/13/2022 293847 900.00 CASH FOR GRASS 900 SQFT 226.4306.5554 TOM TOTH288 05/13/2022 293848 1,160.15 (5) 5 GALL RED PAINT, RE-SHEET 220.4303.5613 TRAFFIC MANAGEMENT PRODUCTSPage 30 of 673 CITY OF ARROYO GRANDECHECK LISTINGMAY 1 - MAY 15, 2022ATTACHMENT 1Line Check Date Check # Amount Description Acct # Vendor Name289 05/13/2022 293848 107.25 (2) 5 GALL DETACK 220.4303.5613 TRAFFIC MANAGEMENT PRODUCTS290 05/13/2022 293849 99.00 REFUND-DOGGIE GOOD MANNERS 010.0000.4605 CHARLES VARNI291 05/13/2022 293850 50.00 PARK DEPOSIT REFUND-STROTHER 010.0000.2206 CHANTALA VENTURA292 05/13/2022 293851 68.87 ACCT#808089883-00003 CIM CELL 010.4425.5255 VERIZON WIRELESS293 05/13/2022 293852 5,000.00 CASH FOR GRASS- 5000 SQ FT 226.4306.5554 WILDWOOD RANCH HOA294 05/13/2022 293853 200.00 WASHING MACHINE REBATE 226.4306.5554 AGNES WONG295 05/13/2022 293854 2,949.80 SOCCER-WINTER SESSION 2010.4424.5351 YOUTH EVOLUTION BASKETBALL296 05/13/2022 293855 735.00 REFUND- PPR22-016 224 MCKINLEY 010.0000.4510KEVIN ZEPEDA297 05/13/2022 293856 216.00 UNEMPLOYMENT 010.4919.5142 CA ST EMPLOYMENT DEVEL DEPT298 05/13/2022 293856 (6.00) UNEMPLOYMENT 010.4919.5142 CA ST EMPLOYMENT DEVEL DEPT299 05/13/2022 293857 313.21 ICMA RETIREE ADMIN FEE QTR 1 2022 010.4099.5136 MISSIONSQUARE RETIREMENT CORP300 05/13/2022 293857 37.68 ICMA RETIREE ADMIN FEE QTR 1 2022 220.4303.5136 MISSIONSQUARE RETIREMENT CORP301 05/13/2022 293857 6.26 ICMA RETIREE ADMIN FEE QTR 1 2022 640.4712.5136 MISSIONSQUARE RETIREMENT CORP302 05/13/2022 293857 18.76 ICMA RETIREE ADMIN FEE FCFA QTR 1 2022 010.0000.1111 MISSIONSQUARE RETIREMENT CORP $ 1,618,198.34 Page 31 of 673 ATTACHMENT 2 . General Fund 340,901.34 5101 Salaries Full time 213,869.51 Streets Fund 15,522.16 5101 Volunteer Employee Retirement - American Rescue Plan Act - 5102 Salaries Part-Time - PPT 5,633.96 Sewer Fund 9,078.13 5103 Salaries Part-Time - TPT 12,383.09 Water Fund 17,838.79 5105 Salaries OverTime 8,911.93 383,340.42 5106 Salaries Strike Team OT - 5107 Salaries Standby 1,671.80 5108 Holiday Pay 7,748.97 5109 Sick Pay 2,069.19 5110 Annual Leave Buyback - Administrative Services - 5111 Vacation Buyback - Information Services - 5112 Sick Leave Buyback - Community Development - 5113 Vacation Pay 9,145.09 Police 7,326.33 5114 Comp Pay 4,275.30 Public Works - Maintenance 651.85 5115 Annual Leave Pay 8,890.47 Public Works - Enterprise 933.75 5116 Salaries - Police FTO - Recreation - Administration - 5121 PERS Retirement 30,352.26 Recreation - Special Events - 5122 Social Security 20,157.22 Children In Motion - 5123 PARS Retirement 270.27 8,911.93 5126 State Disability Ins. 952.45 5127 Deferred Compensation 741.66 5131 Health Insurance 49,291.00 5132 Dental Insurance 3,025.50 5133 Vision Insurance 792.20 5134 Life Insurance 383.68 5135 Long Term Disability 656.94 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 155.43 5150 Bi-Lingual Pay 150.00 5151 Cell Phone Allowance 975.00 383,340.42 OVERTIME BY DEPARTMENT: Total FCFA payroll cost for this period is $196,464.14. 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 04/15/2022 - 04/28/2022 5/6/2022 BY FUND BY ACCOUNT Page 32 of 673 Item 8.b. MEMORANDUM TO: City Council FROM: Nicole Valentine, Administrative Services Director BY: Lynda Horejsi, Accounting Manager SUBJECT: Consideration of Statement of Investment Deposits DATE: June 14, 2022 SUMMARY OF ACTION: Presentation of the City’s investment deposits as of April 30, 2022. IMPACT ON FINANCIAL AND PERSONNEL RESOURCES: There is no funding impact to the City related to these reports. However, the City does receive interest revenue based on the interest rate of the investments. No or minimal future staff time is projected. RECOMMENDATION: Receive and file the attached report listing investment deposits of the City of Arroyo Grande as of April 30, 2022, as required by Government Code Section 53646(b). BACKGROUND: The Administrative Services department has historically submitted to the City Council a monthly report, providing the following information: 1. Type of investment. 2. Financial institution (bank, savings and loan, broker, etc). 3. Date of maturity. 4. Principal amount. 5. Rate of interest. 6. Current market value for all securities having a maturity of more than 12 months. 7. Relationship of the monthly report to the annual statement of investment policy. Page 33 of 673 Item 8.b. City Council Consideration of Statement of Investment Deposits June 14, 2022 Page 2 ANALYSIS OF ISSUES: This report represents the City’s investments as of April 30, 2022. It includes all investments managed by the City, the investment institution, investment type, book value, maturity date, and rate of interest. As of April 30, 2022, the investment portfolio was in compliance with all State laws and the City’s investment policy. ALTERNATIVES: The following alternatives are provided for the Council’s consideration: 1. Recommended Alternative - Approve staff’s recommendation to receive and file the attached report listing the investment deposits; 2. Do not approve staff’s recommendation; or 3. Provide other direction to staff. ADVANTAGES: Safety of principal is the foremost objective of the City. Investments are undertaken in a manner that seeks to ensure the preservation of capital in the overall portfolio. DISADVANTAGES: Some level of risk is present in any investment transaction. Losses could be incurred due to market price changes, technical cash flow complications such as the need to withdraw a non-negotiable Time Certificate of Deposit early, or even the default of an issuer. To minimize such risks, diversifications of the investment portfolio by institution and by investment instruments are being used as much as is practical and prudent. 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. Portfolio Summary: April 30, 2022 Page 34 of 673 ATTACHMENT 1City of Arroyo Grande300 E. Branch St.Arroyo Grande, CA 93420Phone: (805) 473-5400CITY OF ARROYO GRANDEPortfolio ManagementPortfolio SummaryApril 30, 2022Investments Principal ValueCurrent Market Value Interest Rate Date of PurchaseTerm Maturity Date% of PortfolioLocal Agency Investment Fund18,101,673.10$ 18,101,673.10$ 0.523%56.065%Certificates of DepositPacific Premier Bank 249,000.00 249,000.00 0.200% February 21, 2022 12 mos February 21, 2023 0.771%Ally Bank 247,000.00 247,000.00 2.150% July 22, 2019 36 mos July 11, 2022 0.765%TIAA FSB Jacksonville247,000.00 247,000.00 2.100% July 12, 2019 36 mos July 12, 2022 0.765%Sallie Mae Bank/Salt Lake 247,000.00 247,000.00 1.900% October 3, 2019 36 mos October 3, 2022 0.765%Eaglebank Bethesda Maryland 249,000.00 249,000.00 1.850% October 4, 2019 36 mos October 4, 2022 0.771%Goldman Sachs Bank USA 247,000.00 247,000.00 1.850% October 24, 2019 36 mos October 24, 2022 0.765%1st Security Bank Washington 249,000.00 249,000.00 1.700% October 4, 2019 42 mos April 4, 2023 0.771%Morgan Stanley Private Bank 247,000.00 247,000.00 2.250% July 11, 2019 45 mos July 11, 2023 0.765%Merrick Bank 249,000.00 249,000.00 1.800% October 16, 2019 48 mos October 16, 2023 0.771%BMW Bank North America 249,000.00 249,000.00 0.500% July 16, 2021 36 mos July 16, 2024 0.771%Enerbank USA 247,000.00 247,000.00 1.850% October 25, 2019 60 mos October 25, 2024 0.765%Beal Bk Plano TX 247,000.00 247,000.00 1.350% March 26, 2022 36 mos March 26, 2025 0.765%Beal Bk Las Vegas NV 247,000.00 247,000.00 1.250% March 26, 2022 36 mos March 26, 2025 0.765%Flagstar Bank 245,000.00 245,000.00 0.850% May 15, 2020 60 mos May 15, 2025 0.759%New York Community Bank 249,000.00 249,000.00 0.550% July 1, 2021 48 mos July 1, 2025 0.771%UBS Bank USA 249,000.00 249,000.00 0.900% July 21, 2021 60 mos July 21, 2026 0.771%Toyota Financial Savings Bank 248,000.00 248,000.00 0.950% July 22, 2021 60 mos July 22, 2026 0.768%Bank United NA 249,000.00 249,000.00 1.350% December 8, 2021 60 mos December 8, 2026 0.771%Capital One Bank USA 248,000.00 248,000.00 1.250% December 8, 2021 60 mos December 8, 2026 0.768%Total Certificates of Deposit4,709,000.00 4,709,000.00 14.585%Agency BondsFederal Farm Credit Bank 2,500,000.00 2,473,045.00 1.600% November 1, 2019 48 mos November 1, 2023 7.743%Federal Farm Credit Bank 1,999,314.00 1,908,064.00 0.350% December 4, 2020 42 mos May 16, 2024 6.192%Federal Farm Credit Bank 998,431.00 934,717.00 0.430% March 17, 2021 48 mos March 3, 2025 3.092%Federal Natl Mortgage Assn 1,000,000.00 922,096.00 0.500% October 20, 2020 60 mos October 20, 2025 3.097%Federal Home Loan Bank 999,500.00 919,472.00 0.800% March 17, 2021 60 mos March 10, 2026 3.096%Federal Home Loan Bank 994,396.00 970,751.00 2.400% March 17, 2021 72 mos March 29, 2027 3.080%Total Agency Bonds8,491,641.00 8,128,145.00 26.300%Treasury ObligationsU.S. Treasury Z-2026 Series 984,728.00 917,461.00 1.100% December 6, 2021 53 mos May 31, 2026 3.050%Total Agency Bonds984,728.00 917,461.00 3.050%TOTAL INVESTMENTS32,287,042.10$ 31,856,279.10$ 100.000%Page 35 of 673 Item 8.c. MEMORANDUM TO: City Council FROM: Nicole Valentine, Administrative Services Director BY: Lynda Horejsi, Accounting Manager SUBJECT: Consideration of Approval of Fiscal Year 2022-23 Appropriation Limit DATE: June 14, 2022 SUMMARY OF ACTION: Calculating the appropriation limit from tax proceeds is required annually by Propositions 4 and 111, and Government Code section 7900 et seq. Adoption of a Resolution establishing the appropriation limit from tax proceeds for Fiscal Year 2022-23 will ensure compliance with these requirements. IMPACT ON FINANCIAL AND PERSONNEL RESOURCES: There are no significant fiscal or personnel impacts associated with approval of the appropriation limit. RECOMMENDATION: Adopt a Resolution establishing the appropriation limit from tax proceeds for Fiscal Year 2022-23. BACKGROUND: Annually, the City is required to calculate the expenditure appropriati on limit from tax proceeds to determine compliance with Propositions 4 (Gann Initiative) and 111 (Spending Limitation Act of 1990), codified at Government Code section 7900 et seq. This calculation is based on the previous year’s appropriation limit ($25,284,708) multiplied by the per capita personal income percentage increase (7.55%) and multiplied again by the population percentage change (-1.31%). The State Department of Finance provides both the population change and the per capita personal income change for the previous fiscal year. ANALYSIS OF ISSUES: The City is responsible for dividing citywide revenues between tax and non -tax revenue and applying the formula to the cumulative appropriation limit. For Fiscal Year 2022-23, the appropriation limit has been calculated to be $26,838,434. Page 36 of 673 Item 8.c. City Council Consideration of Approval of Fiscal Year 2022-23 Appropriation Limit June 14, 2022 Page 2 This calculation means that the City cannot receive more than $26,838,434 in tax-based revenues in Fiscal Year 2022-23. The estimated tax-based revenues the City would receive for the Fiscal Year have been calculated to be $18,582,450, approximately $8.3 million less than the appropriation limit. Therefore, the City is in compliance with Article XIIIB of the California Constitution. It is not anticipated that revenues from a new sales tax measure, if approved by the voters, will exceed this appropriation limit. ALTERNATIVES: The following alternatives are provided for the Council’s consideration: 1. Adopt a Resolution establishing the appropriation limit for FY 202 2-23; or 2. Revise and adopt a Resolution establishing the appropriation limit for FY 2022-23; or 3. Provide other direction to staff. ADVANTAGES: Adoption of the Resolution establishing the appropriation limit for FY 2022-23 will ensure that the City is in compliance with Propositions 4 and 111. DISADVANTAGES: There are no disadvantages identified with the recommended action. 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. Attachment: 1. Proposed Resolution Page 37 of 673 ATTACHMENT 1 RESOLUTION NO. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ARROYO GRANDE ADOPTING A TAX PROCEEDS EXPENDITURE APPROPRIATION LIMIT FOR FISCAL YEAR 2022-23 WHEREAS, sections 7900 et seq. of the Government Code provide for the effective and efficient implementation of Article XIIIB of the California Constitution; and WHEREAS, Government Code sections 7901 through 7914 provide that each year, the governing body of each local jurisdiction shall, by resolution adopted at a regularly scheduled meeting, establish the annual adjustment factors to be used and the tax proceeds expenditure appropriation limit. NOW, THEREFORE BE IT RESOLVED, by the City Council of the City of Arroyo Grande as follows: 1. The California per capita income and the population of Arroyo Grande, California are recognized as the annual adjustment factors for Fiscal Year 2022-23. 2. The appropriation limit for Fiscal Year 2022-23 is hereby set at twenty-six million, eight hundred thirty- eight thousand, four hundred thirty-four dollars ($26,838,434). 3. Documentation used in the determination of the tax proceeds expenditure appropriation limit is attached hereto as Exhibit A and incorporated herein by this reference. 4. This Resolution is effective on its date of adoption. On motion of Council Member , seconded by Council Member , and on the following roll call vote, to wit: AYES: NOES: ABSENT: the foregoing Resolution was passed and adopted this 14th day of June, 2022. Page 38 of 673 RESOLUTION NO. PAGE 2 ______________________________ CAREN RAY RUSSOM, MAYOR ATTEST: JESSICA MATSON, CITY CLERK APPROVED AS TO CONTENT: ______ WHITNEY MCDONALD, CITY MANAGER APPROVED AS TO FORM: TIMOTHY J. CARMEL, CITY ATTORNEY Page 39 of 673 EXHIBIT A Appropriation limit for 2021-22 25,284,708 (A) Multiplied by the appropriation limit change factors: Per Capita Personal Income Change:7.55% = 100 Population Change: 2021 18,533 2022 18,294 -1.31% (239) == 18,294 100 Appropriation limit factor: (B x C)1.0614 (D) APPROPRIATION LIMIT FOR FISCAL YEAR 2022-23 (A x D)26,838,434$ 18,582,450$ Amount under (over) limit 8,255,984 ESTIMATED 2022-23 PROCEEDS OF TAXES SUBJECT TO APPROPRIATION LIMIT Conversion to ratio:(239) 1.31% +100 0.98694 (C)0.98694 CITY OF ARROYO GRANDE CALCULATION OF APPROPRIATION LIMIT FROM TAX PROCEEDS FOR FISCAL YEAR 2022-23 Conversion to ratio:7.55% +100 107.5500%(B)1.0755 Page 40 of 673 1 Item 8.d. ACTION MINUTES REGULAR MEETING OF THE CITY COUNCIL May 24, 2022, 6:00 p.m. Hybrid City Council Chamber/Virtual Zoom Meeting 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, Planning Manager Andrew Perez 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 Regular City Council Meeting to order at 6:00 p.m. 2. ROLL CALL City Clerk Matson took roll call. 3. MOMENT OF REFLECTION 4. FLAG SALUTE Arroyo Grande Optimist International led the flag salute. Mayor Ray Russom invited public comment. Speaking from the public was Phil Dollman. Mayor Ray Russom closed public comment. 5. AGENDA REVIEW There was Council consensus to move Item 9.b. to the end of the agenda. 5.a Closed Session Announcements Page 41 of 673 2 Item 8.d. City Attorney Carmel announced that there was no reportable action. 5.b Ordinances read in title only Moved by Mayor Ray Russom Seconded by Council Member Barneich Move that all ordinances presented at the meeting shall be read by title only and all further readings be waived. AYES (5): Mayor Ray Russom, Mayor Pro Tem George, Council Member Barneich, Council Member Paulding, and Council Member Storton Passed (5 to 0) 6. SPECIAL PRESENTATIONS 6.a Update Regarding Countywide COVID-19 Efforts City Manager McDonald provided a brief update on COVID-19 and the County "Test to Treat" services. 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 provided information regarding submittal of the application for Multi- Model Project Discretionary Grant funds for the Brisco-Halcyon Interchange Project; and 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 June 2022 as “Pride Month” Mayor Ray Russom read the Honorary Proclamation Declaring June 2022 as "Pride Month". Denise Andrade, 5 Cities Hope, accepted the proclamation. Mayor Ray Russom invited public comment. No public comments were received. No action was taken on this item. 6.d Honorary Proclamation Recognizing June 19, 2022 as "Juneteenth Day" in Arroyo Grande Mayor Ray Russom read the Honorary Proclamation Recognizing June 19, 2022 as "Juneteenth Day" in Arroyo Grande. Cheryl Vines, NAACP, accepted the proclamation. Mayor Ray Russom invited public comment. No public comments were received. No action was taken on this item. Page 42 of 673 3 Item 8.d. 6.e Honorary Proclamation Declaring June 3, 2022 as “Hunger Awareness Day” Mayor Ray Russom read the Honorary Proclamation Declaring June 3, 3033 as "Hunger Awareness Day". Branna Still, SLO Food Bank, 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 reopened public comment. Speaking from the public was Greg Steinberger. 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. There were none. Mayor Ray Russom invited public comment. Speaking from the public were Scott Kohlbush, and Garrett Philibin. No further public comments were received. Council provided comments on Items 8.e. and 8.i. Moved by Council Member Barneich Seconded by Mayor Pro Tem George Approve Consent Agenda Items 8.a. through 8.i., with the recommended courses of action. 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 attached listing of cash disbursements for the period of April 16 through April 30, 2022. 8.b Approval of Minutes Approved 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 1) Adopted a Resolution entitled: "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"; 2) Adopted a Resolution entitled: "A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ARROYO Page 43 of 673 4 Item 8.d. 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"; and 3) Adopted a Resolution entitled: "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". . 8.d Consideration of Adoption of a Resolution Declaring a Continued Local Emergency Related to the Coronavirus (COVID-19) Pandemic 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". 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 Authorized 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 Authorized 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 Cities of San Luis Obispo County, California Adopted a Resolution entitled: "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". 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 Adopted a Resolution entitled: "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" 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. Page 44 of 673 5 Item 8.d. 8.i Monthly Water Supply and Demand Update Received and filed 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) City Manager McDonald presented the staff report and Administrative Services Director Valentine responded to questions from Council. Mayor Ray Russom opened the public hearing. Speaking from the public were Gaea Powell and Annie Ashbrook. Upon hearing no further public comments, Mayor Ray Russom closed the public hearing. City Clerk Matson announced there were no written protests received. Moved by Council Member Storton Seconded by Council Member Paulding Adopt a Resolution entitled: "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". AYES (5): Mayor Ray Russom, Mayor Pro Tem George, Council Member Barneich, Council Member Paulding, and Council Member Storton Passed (5 to 0) 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 This item was heard after Item 11.b. Mayor Ray Russom called for a brief break at 8:09 p.m. The Council reconvened at 8:15 p.m. Community Development Director Pedrotti introduced the item and Planning Manager Perez presented the staff report. Mr. Pedrotti, Mr. Perez, Assistant City Manager/Public Works Director Robeson, and City Manager McDonald responded to questions from Council. Mayor Ray Russom opened the public hearing. Speaking from the public were Rachel Mann, Garrett Philbin, Krista Jeffries, and Kevin Buchanan. Upon hearing no further public comments, Mayor Ray Russom closed the public hearing. Council discussion ensued regarding revisions to the Ordinance based on City advisory body recommendations. There was Council consensus regarding the following revisions: having 4 units for smaller lots and 6 units for larger lots for urban lot splits; using Floor-Area Ratio (FAR) as the limit for maximum unit size; 2 ADUs with two-unit developments and 1 on each lot with urban lot splits; a maximum height of 16 feet within setback of underlying zone and 30 feet Page 45 of 673 6 Item 8.d. outside the zone; 1 uncovered parking space required per unit; not allowing fee waivers; and not allowing rooftop decks. Moved by Mayor Ray Russom Seconded by Council Member Barneich Continue the public hearing and introduction of the Ordinance to a date certain of June 14, 2022 AYES (5): Mayor Ray Russom, Mayor Pro Tem George, Council Member Barneich, Council Member Paulding, and Council Member Storton Passed (5 to 0) 9.c Consideration of 5-Year Review of Local Sales Tax Administrative Services Director Valentine presented the staff report and responded to questions from Council. Mayor Ray Russom opened the public hearing. Upon hearing no public comments, Mayor Ray Russom closed the public hearing. Moved by Council Member Paulding Seconded by Mayor Pro Tem George Receive and file the 5-year report covering the period of July 2016 through June 2021, and approve continuation of the local sales tax. AYES (5): Mayor Ray Russom, Mayor Pro Tem George, Council Member Barneich, Council Member Paulding, and Council Member Storton Passed (5 to 0) 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 Administrative Services Director Valentine presented the staff report and responded to questions from Council. Mayor Ray Russom invited public comment. No public comments were received. Council provided direction to staff. 11.b Consideration of Placing a Local Transactions and Use Tax (“Sales Tax”) Measure on the November 8, 2022 Ballot City Manager McDonald presented the staff report and responded to questions from Council. Page 46 of 673 7 Item 8.d. Mayor Ray Russom invited public comment. Speaking from the public were Garrett Philbin and Jim Guthrie. No further public comments were received. City Manager McDonald responded to questions from the public. City Attorney Carmel commented on suggested wording changes to the ballot question. Moved by Council Member Storton Seconded by Mayor Pro Tem George Adopt a Resolution entitled: "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. 5187". 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 Council Member Storton Seconded by Council Member Barneich Introduce an Ordinance entitled: "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". City Attorney Carmel read the full title of the Ordinance. 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 Council Member Storton Seconded by Mayor Ray Russom Adopt a Resolution entitled: "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". 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 Council Member Storton Seconded by Mayor Pro Tem George Page 47 of 673 8 Item 8.d. Adopt a Resolution entitled: "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". 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 Council Member Storton Seconded by Council Member Barneich Approve the argument to be submitted in favor of the measure as revised. AYES (5): Mayor Ray Russom, Mayor Pro Tem George, Council Member Barneich, Council Member Paulding, and Council Member Storton Passed (5 to 0) 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 PAULDING: Page 48 of 673 9 Item 8.d. 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 Mayor Pro Tem George commented on her appreciation for the SB 9 study session and thanked staff for their work on the item. 14. CLOSED SESSION None. 15. ADJOURNMENT There being no further business to come before the City Council, Mayor Ray Russom adjourned the meeting at 10:54 p.m. _________________________ Caren Ray Russom, Mayor _________________________ Jessica Matson, City Clerk Page 49 of 673 Item 8.e. MEMORANDUM TO: City Council FROM: Whitney McDonald, City Manager Timothy Carmel, City Attorney BY: Jessica Matson, Legislative & Information Services Director/City Clerk SUBJECT: Consideration of Adoption of an Ordinance Adding Chapter 3.23 to Title 3 of the Arroyo Grande Municipal Code Regarding a Transaction and Use Tax (“Sales Tax”) DATE: June 14, 2022 SUMMARY OF ACTION: The Ordinance adds Chapter 3.23 to the Arroyo Grande Municipal Code (“AGMC”) regarding a Transaction & Use Tax (“Sales Tax”). The Ordinance will become effective if the voters approve the proposed Sales Tax measure at the November 8, 2022 General Municipal Election. IMPACT ON FINANCIAL AND PERSONNEL RESOURCES: There is no financial impact from adopting the Ordinance. However, if approved by the voters, the 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 maintaining the City’s streets, sidewalks, and stormwater infrastructure, as well as for other underfunded City programs and services. RECOMMENDATION: Adopt an Ordinance adding Chapter 3.23 to Title 3 of the Arroyo Grande Municipal Code regarding a Transaction and Use Tax. 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 (Attachment 6). 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 Page 50 of 673 Item 8.e. City Council Consideration of Adoption of an Ordinance Adding Chapter 3.23 to Title 3 of the Arroyo Grande Municipal Code Regarding a Transaction and Use Tax (“Sales Tax”) June 14, 2022 Page 2 $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 p otential 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 5). 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 4). 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 3). As reported in the 2022 Pavement Management Program Update presented on April 26, 2022 , despite past efforts, the condition of the City’s streets has significantly declined. On a pavement condition scale Page 51 of 673 Item 8.e. City Council Consideration of Adoption of an Ordinance Adding Chapter 3.23 to Title 3 of the Arroyo Grande Municipal Code Regarding a Transaction and Use Tax (“Sales Tax”) June 14, 2022 Page 3 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 annu ally 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. At the April 26, 2022 meeting, 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, the 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. At its May 24, 2022 meeting, the City Council adopted Resolutions and introduced the Ordinance enabling the voters to determine at the November 8, 2022 General Municipal Election whether to enact a local transactions and use tax (“sales tax”) that would provide additional general revenue to the City (Attachment 2). ANALYSIS OF ISSUES: 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. Likewise, for general taxes, Government Code Section 53724(b) provides that the ordinance or resolution proposing the tax must be approved by a 2/3rd vote of the legislative body. The required Ordinance was introduced by a unanimous vote of the City Council on May 24, 2022, and is now ready for adoption. Pursuant to the terms of the Ordinance, it is subject to voter approval and will not be effective unless approved by a majority of voters on November 8, 2022. ALTERNATIVES: The following alternatives are provided for the Council’s consideration: 1. Adopt the Ordinance adding Chapter 3.23 to Title 3 of the Arroyo Grande Municipal Code regarding a Transaction and Use Tax; or 2. Provide other direction to staff. Page 52 of 673 Item 8.e. City Council Consideration of Adoption of an Ordinance Adding Chapter 3.23 to Title 3 of the Arroyo Grande Municipal Code Regarding a Transaction and Use Tax (“Sales Tax”) June 14, 2022 Page 4 ADVANTAGES: Adopting the Ordinance 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: No disadvantages have been identified. ENVIRONMENTAL REVIEW: Adoption of this Ordinance is exempt from environmental review as the adopt ion of this Ordinance does not qualify as a “project” pursuant to the California Environmental Quality Act, under Public Resource Code Section 21065 and CEQA Guidelines Section 15320, 15378, and 15061(b)(3), as there is no possibility that such action would cause either a direct, or reasonably foreseeable indirect, physical change in the environment . 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 Summary of the Ordinance was published in the Newspaper in accordance with Government Code Section 40806. Attachments: 1. Proposed Ordinance 2. May 24, 2022 Staff Report and Attachments 3. April 26, 2022 Staff Report and Attachments 4. June 23, 2020 Staff Report and Attachments 5. January 28, 2020 Staff Report and Attachments 6. May 28, 2019 Staff Report and Attachments Page 53 of 673 ATTACHMENT 1 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 54 of 673 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 55 of 673 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 56 of 673 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 57 of 673 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 Unit ed States, or any foreign government. Page 58 of 673 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 pursuan t 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 59 of 673 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 th e 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. Page 60 of 673 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 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. Page 61 of 673 ORDINANCE NO PAGE 9 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 14th day of June, 2022, by the following roll call vote: AYES: NOES: ABSENT: Page 62 of 673 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 63 of 673 ITEM 8.e.: Attachment 2 – May 24, 2022 Staff Report and Attachments Attachment 2 is available as links: https://pub- arroyogrande.escribemeetings.com/filestream.ashx?DocumentId=2793 https://pub-arroyogrande.escribemeetings.com/filestream.ashx?DocumentId=2794 https://pub-arroyogrande.escribemeetings.com/filestream.ashx?DocumentId=2795 https://pub-arroyogrande.escribemeetings.com/filestream.ashx?DocumentId=2796 https://pub-arroyogrande.escribemeetings.com/filestream.ashx?DocumentId=2797 https://pub-arroyogrande.escribemeetings.com/filestream.ashx?DocumentId=2798 https://pub-arroyogrande.escribemeetings.com/filestream.ashx?DocumentId=2799 https://pub-arroyogrande.escribemeetings.com/filestream.ashx?DocumentId=2800 Attachment 3 – April 26, 2022 Staff Report and Attachments Attachment 3 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 4 – June 23, 2020 Staff Report and Attachments Attachment 4 is available as a link: https://www.arroyogrande.org/AgendaCenter/ViewFile/Item/9858?fileID=15974 Attachment 5 – January 28, 2020 Staff Report and Attachments Attachment 5 is available as a link: https://www.arroyogrande.org/AgendaCenter/ViewFile/Item/9328?fileID=15620 Attachment 6 – May 28, 2019 Staff Report and Attachments Attachment 6 is available as a link: https://www.arroyogrande.org/AgendaCenter/ViewFile/Item/8526?fileID=15218 Page 64 of 673 Item 8.f. 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 COVID-19 Pandemic and Authorizing the Continuance of Remote Teleconference Meetings of the Legislative Bodies Pursuant to Government Code Section 54953(e)(3) DATE: June 14, 2022 SUMMARY OF ACTION: Adoption of the Resolution will continue the declared local emergency related to the COVID-19 pandemic and will also enable the City to continue to comply with the requirements of legislation, AB 361, to authorize the continued use of teleconferencing for meetings of the City’s legislative bodies. IMPACT ON FINANCIAL AND PERSONNEL RESOURCES: There are no direct fiscal impacts related to the proposed action; 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 and authorizing the continuance of remote teleconference meetings pursuant to Government Code Section 54953(e)(3). 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 Dire ctor of Emergency Services, proclaimed a local emergency on March 16, 2020, regarding the 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. Page 65 of 673 Item 8.f. City Council 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) June 14, 2022 Page 2 In addition, AB 361 amended Government Code Section 54953, adding a new subsection (e) that permits legislative bodies, when there is a proclaimed State of Emergency declared by the Governor pursuant to Government Code Section 8625, to make a determination to authorize meeting remotely via teleconferencing as a result of the emergency. To do so, a resolution would need to be adopted in which the legislative body finds that meeting in person would present imminent risks to the health or safety of attendees, or that State or local officials have imposed or recommended measures to promote social distancing. The City Council first adopted a Resolution making findings in accordance with AB 361 and Government Code Section 54953(e) at its September 28, 2021 meeting. The Resolution is valid for thirty (30) days after teleconferencing for the first time under the new regulations. If the State of Emergency remains active after that 30 day period, the local agency may act to renew its resolution authorizing remote teleconferenced meetings by passing another resolution which includes findings that the State of Emergency declaration remains active, the local agency has reconsidered the circumstances of the State of Emergency, and the local agency has either identified: A) ongoing, direct impacts to the ability to meet safely in-person, or B) active social distancing measures as directed by relevant State or local officials. In the past, the City has adopted separate resolutions related to the continuing emergency declaration and the continuance of remote teleconference meetings pursuant to Government Code Section 54953(e)(3). Staff has combined the two items into one resolution to eliminate the need for separate agenda items. 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 emergency related to the COVID-19 pandemic within the required 21-day time period since the ratification of the proclamation at its March 24, 2020 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 requi red of City staff to respond to the pandemic and these proclamations and orders. In addition, the Resolution will allow the City to continue conducting its public meetings via teleconference. The Resolution includes continued findings based upon a determin ation that, as a result of the proclaimed State of Emergency in California due to the COVID-19 pandemic and its continued spread in San Luis Obispo County and Arroyo Grande Page 66 of 673 Item 8.f. City Council 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) June 14, 2022 Page 3 through the Omicron, BA2 and other variants of SARS-CoV-2, which are far more transmissible than prior variants of the virus and, as even fully vaccinated individuals can spread the virus to others, holding meetings in person would present imminent risks to the health or safety of attendees. While the Resolution provides authority for the City to continue conducting public meetings remotely for the next thirty (30) days, the City has also determined to resume meetings in-person prior to the expiration of that thirty-day period, and conducted the City Council meetings beginning on March 8, 2022, as in-person meetings at Council Chambers while also retaining an option for the public, staff, and consultants to participate via Zoom. It is recommended that the proposed Resolution be adopted to continue to provide flexibility for future meetings of the City Council and its advisory bodies in the event that guidance from the State or County Health Officers changes within the next thirty (30) days. This flexibility will also allow members of the City Council or advisory bodies to attend meetings remotely if they also desire or if they are required to quarantine due to exposure to COVID-19. Based upon the foregoing, it is recommended that the City Council adopt the Resolution declaring the need to continue the emergency declaration and also au thorizing the continuance of remote teleconference meetings pursuant to Government Code Section 54953(e)(3). ALTERNATIVES: The following alternatives are provided for the Council’s consideration: 1. Adopt the Resolution declaring the need to continue the declared local emergency and authorizing the continuance of remote teleconference meetings; 2. Do not adopt the Resolution; or 3. 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. It will also satisfy the requirements of Government Code Section 54953(e)(3) and allow the City to safely continue carrying out its business in a manner that will minimize the risk of contracting COVID-19 for everyone involved. DISADVANTAGES: No disadvantages have been identified to adopting the Resolution. ENVIRONMENTAL REVIEW: No environmental review is required for this item. Page 67 of 673 Item 8.f. City Council 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) June 14, 2022 Page 4 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 68 of 673 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 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) 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, May 10, and May 24, 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, subsequently, in March 2020, in response to the COVID -19 pandemic, Governor Newsom issued Executive Orders N-25-20 and N-29-20. These orders suspended certain elements of the Brown Act and specifically allowed for legislative Page 69 of 673 RESOLUTION NO. PAGE 2 bodies as defined by the Brown Act to hold their meetings entirely electronically with no physical meeting place. On June 11, 2021, Governor Newsom issued Executive Order N - 08-21 which provided that the provisions in Executive Order N-29-20 suspending certain elements of the Brown Act would continue to apply through September 30, 2021; and WHEREAS, on September 16, 2021 Governor Newsom signed AB 361, which added subsection (e) to Government Code section 54953 of the Brown Act, and makes provision for remote teleconferencing participation in meetings by members of a legislative body, without compliance with the requirements of Government Code section 54953(b)(3), subject to the existence of certain conditions; and WHEREAS, a required condition of AB 361 is that a state of emergency is declared by the Governor pursuant to Government Code section 8625, proclaiming the existence of conditions of disaster or of extreme peril to the safety of persons and property within the State caused by conditions as described in Government Code sectio n 8558; and WHEREAS, the City Council has adopted a Resolution making findings in accordance with AB 361 and Government Code Section 54953(e) authorizing remote teleconference meetings on September 28, October 26, November 23, and December 14, 2021, and o n January 25, February 22, March 22, April 12, and May 10, 2022; 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. 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 inc ur 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 the City Director of Emergency Services’ Proclamation of Local Emergency on March 17, 2020; and related orders and directives. Page 70 of 673 RESOLUTION NO. PAGE 3 3. In accordance with the requirements of Government Code Section 54953(e)(3), the City Council of the City of Arroyo Grande hereby finds and determines that it has reconsidered the circumstances of the State of Emergency and that the State of Emergency continues to exist and to directly impact the ability to meet safely in person due to the COVID-19 pandemic, and its continued spread in San Luis Obispo County and Arroyo Grande through the Omicron,BA2 and other variants of SARS-CoV-2, which are far more transmissible than prior variants of the virus, and can be spread to others even by fully vaccinated individuals, and therefore holding meetings in person would present imminent risks to the health or safety of attendees. 4. The City Manager and legislative bodies of the City of Arroyo Grande are hereby authorized and directed to take all actions necessary to carry out the intent and purpose of this Resolution including, continuing to conduct open and public remote teleconferencing meetings in accordance with the requirements of Government Code section 54953(e) and other applicable provisions of the Brown Act. 5. This Resolution shall take effect immediately upon its adoption and shall be effective for thirty (30) days after its adoption, subject to being extended for an additional 30 day period by the City Council’s adoption of a subsequent resolution in accordance with Government Code section 54953(e)(3) to further extend the time during which the legislative bodies of the City of Arroyo may continue to teleconference without compliance with paragraph (3) of subdivision (b) of Government Code section 54953. 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 14th day of June, 2022. Page 71 of 673 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 72 of 673 Item 8.g. MEMORANDUM TO: City Council FROM: Whitney McDonald, City Manager BY: Sarah Lansburgh, Deputy City Clerk SUBJECT: Consideration of Adoption of a Resolution Approving the Arroyo Grande Tourism Business Improvement District Fiscal Year 2022-23 Budget DATE: June 14, 2022 SUMMARY OF ACTION: Approve the Fiscal Year (FY) 2022-23 operating budget for the Arroyo Grande Tourism Business Improvement District (AGTBID). IMPACT ON FINANCIAL AND PERSONNEL RESOURCES: 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. The AGTBID budget has been incorporated into the FY 2022-23 Mid-Cycle Budget Update as part of the Special Revenue Funds, Fund 240. The budget proposes $293,000 in expenditures, which is an increase of $63,500 compared to the FY 2021-22 AGTBID operating budget. RECOMMENDATION: Adopt a Resolution approving the FY 2022 -23 operating budget for the AGTBID. 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. 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. Page 73 of 673 Item 8.g. City Council Consideration of Adoption of a Resolution Approving the Arroyo Grande Tourism Business Improvement District Fiscal Year 2022-23 Budget June 14, 2022 Page 2 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. The AGTBID Advisory Board is responsible for developing an annual preliminary budget, detailing anticipated expenditures and submitting the preliminary budget to City Council for approval. At the May 23, 2022 AGTBID special meeting, the Advisory Board reviewed a preliminary budget for recommendation to the City Council. ANALYSIS OF ISSUES: The FY 2021-22 AGTBID operating budget provided $229,500 for expenditures and included funding in the following categories: AGTBID assessments have exceeded projections for FY 2021-22 despite the impacts of the COVID-19 pandemic. According to the financial update provided to the AGTBID Advisory Board on April 25, 2022, revenues are expected to exceed adopted FY 2021-22 budget by approximately $110,000, and the ending fund balance is anticipated to be $325,075. Total revenues from TBID assessments are anticipated to be $246,200. Activity Amount Amount Advertising Consultant Services 85,500.00$ 500$ Photo/Video Assets 10,000.00$ 10,000.00$ Advertising Hard Costs 64,500.00$ 10,500$ Website 6,500.00$ Sub-total Advertising 166,500$ Services & Supplies 229,500$ City - administrative 3,000.00$ Chamber - Contract admin. 42,000.00$ Supplies/Domains 2,500.00$ Vacation rental code compliance $5,000 Sub-total Services & Supplies 52,500$ Membership & Subscriptions Activity EXPENDITURES CCTC Total Expenditures Co-op/Sponsorships Sub-total Membership & Subs. Page 74 of 673 Item 8.g. City Council Consideration of Adoption of a Resolution Approving the Arroyo Grande Tourism Business Improvement District Fiscal Year 2022-23 Budget June 14, 2022 Page 3 The proposed FY 2022-23 AGTBID operating budget recommended by the Advisory Board provides a total of $293,000 for expenditures, an increase of $63,500 over the FY 2021-22 budget. The increased budget includes the following:  $18,500 to improve the Visit Arroyo Grande website;  $5,000 for photos/video assets;  $20,500 for advertising hard costs;  $14,500 for consultant services; and  $5,000 for co-op/sponsorship opportunities. It is anticipated that these additional services and expenditures will continue the momentum of Visit Arroyo Grande’s tourism marketing efforts and fund anticipated additional marketing opportunities, for the benefit of Arroyo Grande lodging businesses and the local economy. The proposed budget for FY 2022-23 is as follows: Page 75 of 673 Item 8.g. City Council Consideration of Adoption of a Resolution Approving the Arroyo Grande Tourism Business Improvement District Fiscal Year 2022-23 Budget June 14, 2022 Page 4 ALTERNATIVES: The following alternatives are provided for the Council’s consideration: 1. Adopt a Resolution approving the AGTBID FY 2022-23 operating budget; 2. Make modifications to the budget and adopt a Resolution approving the modified AGTBID operating budget for FY 2022-23; or 3. Provide other direction to staff. ADVANTAGES: Approving the AGTBID FY 2022-23 operating budget will allow the continuation of the momentum of Visit Arroyo Grande’s tourism marketing efforts, and to fund anticipated additional marketing opportunities. DISADVANTAGES: There are no disadvantages identified with adopting the Resolution to adopt the AGTBID FY 2022-23 operating Budget. 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 – AGTBID FY 2022-23 Budget Page 76 of 673 ATTACHMENT 1 RESOLUTION NO. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ARROYO GRANDE ADOPTING THE FISCAL YEAR 2022- 23 BUDGET FOR THE ARROYO GRANDE TOURISM BUSINESS IMPROVEMENT DISTRICT WHEREAS, on February 26, 2013, the City Council adopted Resolution No. 4516 establishing the Arroyo Grande Tourism Business Improvement District (“AGTBID” or “District”) Advisory Board (“Advisory Board”); and WHEREAS, on May 14, 2013, the City Council adopted Ordinance No. 651 establishing the AGTBID; and WHEREAS, the purpose of the Advisory Board is to consult with and advise the City Council on those matters dealing with the method and basis of levying assessments within the AGTBID; expenditures of revenues derived from such assessments; and programs, services, improvements, and activities intended to promote lodging establishments within the District; and WHEREAS, on March 28, 2022, the Advisory Board approved the FY 2021 -22 AGTBID Annual Report; and WHEREAS, on April 26, 2022, the City Council approved the Advisory Board’s Annual Report and adopted a Resolution of Intention to levy and collect assessments for the 2022-23 fiscal year and to set a date for a public hearing for May 24, 2022 ; and WHEREAS, on May 23, 2022, the Advisory Board reviewed and recommended approval of the FY 2022-23 AGTBID Operating Budget; and WHEREAS, on May 24, 2022, the City Council adopted a Resolution levying an annual assessment for the AGTBID for the 2022-23 fiscal year; and WHEREAS, the budget recommendations are based upon City revenue projections and will fund a work plan that meets the objectives, goals, and responsibilities of the AGTBID. 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. 2. The City Council hereby adopts the FY 2022-23 budget for the Arroyo Grande Tourism Business Improvement District attached hereto as Exhibit A. Page 77 of 673 RESOLUTION NO. PAGE 2 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 14th day of June, 2022. Page 78 of 673 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 79 of 673 RESOLUTION NO. PAGE 4 EXHIBIT A FY 2022/23 AGTBID Budget Beginning Fund Balance 325,075$ (July 2021-February 2022 TBID Assesments = $183,588) Revenue Source Amount TBID Assessments 244,000$ Interest 750 Appropriation from fund balance 48,250 Total Revenue 293,000$ Activity Amount Amount Advertising Consultant Services 100,000$ 500$ Photo/Video Assets 15,000 15,000 Advertising Hard Costs 85,000 15,500$ Website 25,000 Sub-total Advertising 225,000$ Services & Supplies 293,000$ City - administrative 3,000$ Chamber - Contract admin. 42,000 Supplies/Domains 2,500 Vacation rental code compliance 5,000 Sub-total Services & Supplies 52,500$ Ending Fund Balance 276,825$ CCTC Total Expenditures Co-op/Sponsorships Sub-total Membership & Subs. REVENUES Membership & Subscriptions Activity EXPENDITURES Page 80 of 673 Item 8.h. MEMORANDUM TO: City Council FROM: Bill Robeson, Assistant City Manager/Public Works Director Nicole Valentine, Administrative Services Director BY: Jill McPeek, Capital Improvement Project Manager SUBJECT: Consideration of a Resolution to Adopt Projects to be Funded by the Road Repair and Accountability Act of 2017 (SB1) for Fiscal Year 2022- 23 DATE: June 14, 2022 SUMMARY OF ACTION: Adopting the Resolution enables the City to be eligible for Senate Bill 1 (SB1) funding for road repair projects during Fiscal Year 2022-23. IMPACT ON FINANCIAL AND PERSONNEL RESOURCES: The City’s allocation of SB1 funding for FY 2022 -23 is projected to be $388,740. This funding will be utilized to maintain the City’s street system. With this allocation, and the City’s Gas Tax funding of $502,326 the total funding available from the State for street and road maintenance is $891,066. RECOMMENDATION: 1) Adopt a Resolution approving a list of projects to be funded by SB1 in Fiscal Year 2022-23; and 2) Authorize the Director of Administrative Services to submit the Resolution to the California Transportation Commission (CTC). BACKGROUND: On April 28, 2017, the Governor signed SB1, known as the Road Repair and Accountability Act of 2017. SB1 increases gasoline and diesel taxes and vehicle registration fees to address deferred maintenance on the State highway system and the local street and road system. These additional taxes are deposited by the State Controller into the Road Maintenance and Rehabilitation Account (RMRA). A portion of this funding is apportioned by formula to eligible cities and counties, including Arroyo Grande, pursuant to California Streets and Highways Code (SHC) Section 2032(h) and are to be Page 81 of 673 Item 8.h. City Council Consideration of a Resolution to Adopt Projects to be Funded by the Road Repair and Accountability Act of 2017 (SB1) for Fiscal Year 2022 -23 June 14, 2022 Page 2 used for basic road maintenance, rehabilitation, and critical safety projects on the local streets and roads system. Because SB1 emphasizes accountability and transparency in transportation funding, programming and use of the new funds is contingent on recipient cities and counties providing annual project reporting. Per SHC Section 2034(a)(1), prior to receiving any RMRA funding, cities and counties must submit a list of projects, adopted by Resolution, to be funded with the RMRA funds. ANALYSIS OF ISSUES: SHC Section 2030(b) provides a number of example projects and uses for RMRA funding that include, but are not limited to, the following:  Road Maintenance and Rehabilitation  Safety Projects  Railroad Grade Separations  Complete Streets Components, including active transportation purposes, pedestrian and bicycle safety projects, transit facilities, and drainage and storm water capture projects in conjunction with any other allowable project  Traffic Control Devices  Matching funds to State or federal funds for projects under this subdivision Pursuant to SHC Section 2037, a city or county may spend its apportionment of RMRA funds on transportation priorities other than those outlined in SHC Section 2030 if the city’s or county’s average Pavement Condition Index (PCI) meets or exceeds 80. The City of Arroyo Grande’s current PCI is estimated to be 56. The City maintains its 67.5 miles of streets through two mechanisms: The City’s in-house street crew that provides daily efforts to keep the condition of streets from declining, and capital projects to provide long term maintenance. Based on the SHC, the City can use its RMRA funds for either of these services. Historically, the City has utilized its RMRA funds to augment the City’s pavement management program for upcoming roadway rehabilitation projects as opposed to allocating the funds to the City’s in -house street maintenance program. This has been staff’s recommendation to Council due to uncertainties that would be created by a decline in RMRA revenues or a possible repeal of SB1. In these events, it would be less impactful to cut a specific project or a portion thereof than to reduce the City’s in-house street maintenance program that addresses constant, immediate short- and medium-term street safety issues (e.g., debris removal, potholes, skin patching, re-striping, storm water and drainage repairs, etc.). In accordance with California Streets and Highway Code (SHC) Section 2036, the City must maintain its existing commitment of local funds for street purposes to remain eligible for allocations of RMRA funds. This commitment is generally referred to as Maintenance Page 82 of 673 Item 8.h. City Council Consideration of a Resolution to Adopt Projects to be Funded by the Road Repair and Accountability Act of 2017 (SB1) for Fiscal Year 2022 -23 June 14, 2022 Page 3 of Effort (MOE). In order to receive these RMRA funds, each year the City must expend from its General Fund for street purposes an amount not less than the annual average of General Fund expenditures during fiscal years (FY) 2009 -10, FY 2010-11 and FY 2011- 12, as reported to the State Controller’s Office, pursuant to SHC Section 2151. For the City of Arroyo Grande, the amount of annual expenditures that must be spent from the General Fund for street purposes is $1,431,971. Additionally, SHC Section 2034(a)(1) details the requirement that cities and counties must comply with when submitting its list of proposed projects to the CTC to be funded with RMRA funds each fiscal year. The requirements include: 1. The proposed projects must be adopted by Resolution by the City Council at a regular public meeting 2. A description and the location of each proposed project 3. A proposed schedule for the project’s completion 4. The estimated useful life of the improvement The State has provided an estimate for the amount of FY 2022-23 RMRA funding available to the City of Arroyo Grande as $388,740. It is recommended these RMRA funds be used to augment the City’s pavement management program . As the City just recently updated its Pavement Management Program Report and its findings in April 2022, a list of streets and recommended rehabilitation has not yet been identified for the City’s next annual pavement management project. Therefore, it is recommended that the Resolution state that specific sections and limits of roadways on which treatment will be applied will be prioritized and selected during the project development phase of the project based on identified needs. ALTERNATIVES: The following alternatives are provided for the Council’s consideration: 1. Adopt a Resolution approving a list of projects to be funded by SB1 in Fiscal Year 2022-23; 2. Do not approve a Resolution approving a list of projects to be funded by SB1 in Fiscal Year 2022-23 and request further information; 3. Modify staff’s recommendation and adopt a Resolution approving a list of projects to be funded by SB1 in Fiscal Year 2022-23; or 4. Provide other direction to staff. ADVANTAGES: Submitting a list of projects to the CTC will allow the City to receive RMRA funds. The projects will help to protect the City’s investment in its roadway system and maintain the roadways before they deteriorate beyond routine maintenance. Page 83 of 673 Item 8.h. City Council Consideration of a Resolution to Adopt Projects to be Funded by the Road Repair and Accountability Act of 2017 (SB1) for Fiscal Year 2022 -23 June 14, 2022 Page 4 DISADVANTAGES: None identified 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. Attachment: 1. Proposed Resolution Page 84 of 673 ATTACHMENT 1 RESOLUTION NO. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ARROYO GRANDE ADOPTING A LIST OF PROJECTS FOR FISCAL YEAR 2022-23 FUNDED BY SENATE BILL 1: THE ROAD REPAIR AND ACCOUNTABILITY ACT OF 2017 WHEREAS, Senate Bill 1 (SB 1), the Road Repair and Accountability Act of 2017 (Chapter 5, Statutes of 2017) was passed by the California Legislature and signed into law by the Governor in April 2017 to address the significant multi-modal transportation funding shortfalls statewide; and WHEREAS, SB 1 includes accountability and transparency provisions that will ensure the residents of the City of Arroyo Grande (“City”) are aware of the projects proposed for funding in the community and which projects have been completed with such funding each fiscal year; and WHEREAS, the City must adopt by resolution a list of projects proposed to receive funding from the Road Maintenance and Rehabilitation Account (RMRA), created by SB 1, which must include a description and the location of each proposed project, a proposed schedule for the project’s completion, and the estimated useful life of the improvement; and WHEREAS, it is anticipated that the City will receive an estimated $388,740 in RMRA funding in Fiscal Year 2022-23 from SB1; and WHEREAS, this is the sixth year in which the City is receiving SB 1 funding and the funding will enable the City to continue essential road maintenance and rehabilitation projects, safety improvements, repairing and replacing aging bridges, and increasing access and mobility options for the traveling public that would not have otherwise been possible without SB 1 funding; and WHEREAS, the City has undergone a process to ensure public input into the community’s transportation priorities/the project list; and WHEREAS, the City uses its Pavement Management System and collaboration of the City’s various Departments to develop the SB 1 project list to ensure revenues are being used on the most high-priority and cost-effective projects that also meet the community’s priorities for transportation investment; and WHEREAS, the funding from SB1 will help the City maintain and rehabilitate its approximately 67.5 miles of streets/road throughout the City this year and numerous similar projects into the future; and WHEREAS, the 2021 California Statewide Local Streets and Roads Needs Assessment found that the City’s streets and roads are in an at-risk condition and this revenue will help the City to maintain the overall quality of its road system and will help to keep the City’s streets and roads from falling into a poor condition; and Page 85 of 673 RESOLUTION NO. PAGE 2 WHEREAS, the SB1 project list and overall investment in local streets and roads infrastructure with a focus on basic maintenance and safety, investing in complete streets infrastructure, and using cutting-edge technology, materials and practices, will have significant positive co-benefits statewide. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Arroyo Grande hereby: 1. Finds that the foregoing recitals are true, correct and incorporated herein by this reference. 2. Approves the following list of newly proposed projects that will be funded in-part or solely with fiscal year 2022-23 Road Maintenance and Rehabilitation Account revenues: Project Title: 2023 Annual Pavement Rehabilitation Project, PW 2023-01 Project Description: This project will resurface pavement on City streets as identified in the City's Pavement Management Program as available funding allows. Pavement Condition Index (PCI) and other factors will be used to prepare a recommendation of priority street segments to receive pavement rehabilitation. This project will also upgrade pedestrian facilities to meet accessibility requirements, if applicable, and may include bike lane striping and crosswalk enhancements. Project Location: Various City streets to be determined. Staff from various City departments reviews the pavement management data and streets recommendation list, considers public input, and makes a further recommendation to the City Council for the final approval of the scope of each annual pavement rehabilitation project. Estimated Project Schedule: Project development in Summer/Fall 2022; bidding in Winter 2022, and construction in Spring/Summer 2023. Estimated Project Useful Life: The useful life of pavement resurfacing projects varies greatly depending on the type of surface treatment utilized: a slurry seal/microsurface project has a useful life of about 10 years, whereas a hot mix asphalt overlay has a useful life of about 25 years. On motion of Council Member , seconded by Council Member , and on the following roll call vote, to wit: AYES: NOES: ABSENT: Page 86 of 673 RESOLUTION NO. PAGE 3 The foregoing Resolution was passed and adopted this 14th day of June, 2022. 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 87 of 673 Item 8.i. MEMORANDUM TO: City Council FROM: Michael T. Martinez, Chief of Police BY: Zak Ayala, Police Commander SUBJECT: Consideration of Approval of a Memorandum of Understanding with the Arroyo Grande Police Department and the Lucia Mar Unified School District for School Resource Officer Services, Fiscal Year 2022-23 DATE: June 14, 2022 SUMMARY OF ACTION: Approval of the Memorandum of Understanding (agreement) with the Lucia Mar Unified School District will authorize the continued sharing of costs for an Arroyo Grande Police Officer to provide School Resource Officer Services for the 2022/2023 school year. IMPACT ON FINANCIAL AND PERSONNEL RESOURCES: The cost of the school Resource Officer position is approximately $157,500 for Fiscal Year 2022-23. The proposed agreement shares the cost of the salary and benefits associated with the officer between the City and Lucia Mar Unified School District (LMUSD). The City will receive fifty percent (50%) of the cost from LMUSD, totaling $78,750. These funds are included as estimated revenues in the proposed Mid-Cycle Budget Update for FY 2022-23. RECOMMENDATION: Approve and authorize the Chief of Police to execute an agreement between the City of Arroyo Grande and the Lucia Mar Unified School District to share the cost of salary and benefits for one School Resource Officer position in Fiscal Year 2022-23. BACKGROUND: The Arroyo Grande Police Department has been provid ing School Resource Officer (SRO) services to the Lucia Mar Unified School District (LMUSD) since the early 1990’s. The SRO Program is a collaborative effort between the Arroyo Grande Police Department and the LMUSD with the goal of reducing crime, drug abuse, violence, and providing a safe school environment. The SRO is a full-time police officer whose primary function is to address law enforcement concerns at their respective schools. The AGPD Page 88 of 673 Item 8.i. City Council Consideration of Approval of a Memorandum of Understanding with the Arroyo Grande Police Department and the Lucia Mar Unified School District for School Resource Officer Services, Fiscal Year 2022-23 June 14, 2022 Page 2 and LMUSD work closely in selecting the SRO by identifying specific traits that are essential to working in a school environment. The SRO works closely with school officials and administrators to develop positive relationships with the community, students, parents and school officials. While the position is housed at, and primarily assigned to, Arroyo Grande High School, the SRO is responsible for responding to reque sts from Paulding Middle School, Ocean View and Harloe Elementary schools. T he SRO interacts with students from a variety of ages and backgrounds, often serving in a mentorship role. ANALYSIS OF ISSUES: The LMUSD has requested SRO services be provided for the 2022-2023 school year. The term of the agreement begins July 1, 2022, and ends June 30, 2023. This agreement is reviewed and considered annually. The SRO position has been in existence since the 1990’s and staff believes this program is extremely important to the City’s public safety services and should be maintained. Given the City’s demographics, a substantial portion of public safety iss ues are youth related. If the position were not dedicated to schools, it would require other Police Department patrol personnel to respond to a large volume of school related calls for service. The SRO historically provides advantages and efficiency of per sonal relationships and collaboration from being teamed with school administration to address safety issues in a proactive role, rather than responding after the fact. Another highlight of this program is the ability for the SRO to provide counseling to students on both a formal and informal basis. The SRO regularly interacts with students and is often viewed as a role model. The SRO provides opportunities to forge beneficial relationships with staff and students, all the while being a visible deterrent t o crime and other untoward behavior. The relationships that SRO’s establish with students are enduring beyond students’ graduation for personal and professional development. On - site law enforcement provides familiarity with the layout of the campuses and administration, as well as providing quick assistance with student safety emergencies. During the LMUSD 2021-2022 school year (specifically July 1, 2021 to May 19, 2022), the SRO responded to 310 calls for service and completed 55 police reports. The Police Department has developed guidelines for the SRO with a multifaceted approach to provide services given the many health and safety requirements set forth by the State. The LMUSD has agreed to partner with the Police Department for another year of this program supporting the need to provide this valuable resource to the students, staff and the community. Page 89 of 673 Item 8.i. City Council Consideration of Approval of a Memorandum of Understanding with the Arroyo Grande Police Department and the Lucia Mar Unified School District for School Resource Officer Services, Fiscal Year 2022-23 June 14, 2022 Page 3 ALTERNATIVES: The following alternatives are provided for the Council’s consideration: 1. Approve and authorize the Chief of Police to execute the agreement between the City of Arroyo Grande and LMUSD to share the cost of SRO salary and benefits for one SRO position in Fiscal Year 2022-23; 2. Do not approve the agreement; 3. Provide other direction to staff. ADVANTAGES: The LMUSD will help the City of Arroyo Grande continue enhanced school safety by sharing fifty percent (50%) of the cost of the salary and benefits associated with the actual officer assigned to the SRO position. DISADVANTAGES: Non-approval will result in the Police Department being unable to dedicate an officer in the City schools on a full-time basis. 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 School Resource Officer Memorandum of Understanding Page 90 of 673 SCHOOL RESOURCE OFFICER MEMORANDUM OF UNDERSTANDING A.Mission Statement The community of Arroyo Grande, the Lucia Mar Unified School District, and the Arroyo Grande Police Department are significantly impacted by demands to address incidents and situations directly or indirectly related to juveniles and the schools. The problems of juvenile delinquency, alcoholic beverage and illegal substance abuse, gang involvement, and other youth-related problems that negatively affect the community and the schools can be best addressed in a pro-active, interactive and preventive manner. Effective education requires a safe and orderly environment in which learning can occur. Consequently, the Arroyo Grande Police Department and the Lucia Mar Unified School District jointly propose to im plement the School Resource Officer (SRO) program within the Lucia Mar Unified School District for schools located within the City of Arroyo Grande. The mission of the SRO program shall be to provide appropriate law enforcement resources and a school-based approach to the development of a positive relationship among students, staff and the police, the maintenance of a safe learning environment and the prevention of juvenile delinquency, alcoholic beverage and illegal substance abuse, and gang involvement by our community's youth. In order to facilitate a proper working relationship between the school administration and the SRO, it is important to establish, maintain, and update specific guidelines and procedures to be followed by the SRO and school administrators. This Memorandum of Understanding clarifies the roles of the SRO and school administrators, their scope of authority, and the respective responsibilities of the Lucia Mar Unified School District and the Arroyo Grande Police Department in this collaboration. The success of this program relies on effective communication among the SRO, school administrators, and other key staff members of each organization. All references in this Memorandum of Understanding to responsibilities and obligations of the Lucia Mar Unified School District, the Arroyo Grande Police Department, and the City of Arroyo Grande are applicable only to schools located within the City of Arroyo Grande. Under the terms of this Memor andum of Understanding, the Lucia Mar Unified School District and the Arroyo Grande Police Department agree that the duties, responsibilities and physical presence of the SRO are not limited to the Arroyo Grande High School but include all schools in the Lucia Mar Unified School District within the City of Arroyo Grande. LMUSD-AGPD. ATTACHMENT 1 Page 91 of 673 8.Concept The SRO program shall utilize the SRO Triad concept as set forth by the NASRO National Association of School Resource Officers (NASRO) that is attached hereto and incorporated herein by reference. The SRO Triad concept generally means that the officers assigned to the SRO program are law enforcement officers, counselors and teachers. The SRO is first and foremost a law enforcement officer for the City of Arroyo Grande. The SRO shall be responsible for carrying out all duties and responsibilities of a Police Officer and shall ultimately at all times remain under the control of the Arroyo Grande Police Department and its policies and procedures. The SRO will comply with the policies and procedures of the Lucia Mar Unified School District to the extent that such policies and regulations do not conflict with those of the Arroyo Grande Police Department or the City of Arroyo Grande, are not in conflict with other tenns in this Memorandum of Understanding, and are not in conflict with federal, state, or local laws. The SRO is an enforcement officer in CRIMINAL matters only. The SRO shall not enforce any school or classroom rules. The SRO is not a school disciplinarian and should not ass ume -this role. The SRO shall not involve themse lves in administrative matters of Lucia Mar Unified School District that do not relate to the duties and responsibilities of the SRO. The SRO is not a formal counselor and will not act as such; however, the SRO may be used as a resource to assist students, parents, school staff and all persons involved with the Lucia Mar Unified School District. The SRO may also be used as a teacher and can instruct in a variety of subjects ranging from alcoholic beverage and illegal substance abuse to citizenship and community responsibilities. The SRO may use teaching to build rapport between the students and the staff. C.Description of General Duties 1.The SRO is a sworn Arroyo Grande Police Officer assigned to provide the law enforcement expertise and resources to assist school staff in maintaining safety and order within the assigned school(s) and in the prevention and control of crime, juvenile delinquency, truancy and disorder on school campuses and in the immediate area of the school campuses if students may reasonably be involved through the enforcement of applicable state statutes and Municipal Codes as appropriate. 2.The SRO will conduct or assist in the investigation of incidents on school campuses. 3.The SRO may assist in the coordination of the efforts of other law enforcement agencies on the school campuses. 4.The SRO will be considered an active member of the administrative team in his/her assigned school(s). LMUSD-AGPD 2 Page 92 of 673 Page 93 of 673 Page 94 of 673 Page 95 of 673 Page 96 of 673 Page 97 of 673 Page 98 of 673 The Lucia Mar Unified School District shall be responsible for fifty percent (50%) of the cost of the salary and benefits associated with the actual officer assigned to the SRO position. Such cost shall include salary; retirement; Social Security; medical, dental and vision insurance; Workers' Compensation; uniform allowance; life insurance, employee assistance plan, bilingual, and educational incentive pay, if applicable; and all additional costs that are or may become applicable for the assigned SRO due to the existing Memorandum of Understanding between the City of Arroyo Grande and the Arroyo Grande Police Officers Association, changes that may be negotiated in the Memorandum of Understanding between the City of Arroyo Grande and the Arroyo Grande Police Officers Association or a change in the assigned SRO during the term of this Memorandum of Understanding between the Lucia Mar Unified School District and the Arroyo Grande Police Department. The Arroyo Grande Police Department shall be responsible for the remaining fifty percent (50%) of those same costs. The Lucia Mar Unified School District shall transmit one-half (1/2) of its share of the program costs in one payment to the City of Arroyo Grande invoiced in September of the annual term of the Memorandum of Understanding and the remaining one-half (1/2) of its share of the program costs in another payment to the City of Arroyo Grande invoiced in February of the annual term of the Memorandum of Understanding. Both payments shall be due in full no later than 30 days after invoice. It is the expectation of the Lucia Mar Unified School District that the SRO shall not accrue overtime for school-related duties and responsibilities. In addition, if the presence of the SRO at a school-related special event outside normal school hours is reasonably appropriate, the SRO should adjust his/her work schedule to eliminate any potential overtime expense associated with the special event. Any overtime expense for the SRO that cannot be eliminated shall be the responsibility of the Arroyo Grande Police Department. Lucia Mar Unified School District shall provide a district cell phone for the SRO assigned to Arroyo Grande High School. M.Termination This Memorandum of Understanding may be terminated without cause either by the Arroyo Grande Police Department or the Lucia Mar Unified School District upon ninety (90)days written notice. Upon termination, any funds provided the Lucia Mar Unified School District shall be pro-rated and returned as appropriate to the Lucia Mar Unified School District. AGPD-LMUSD 9 Page 99 of 673 Page 100 of 673 The Standards and Best Practices presented here are separated into two classifications: Mandatory (M) and Recommended (R) to identify the importance of each Standard and Best Practice. Mo Canady NASRO Executive Director : mo.canady@nasro.org : (205) 739-6060 © 2018 BY THE NATIONAL ASSOCIATION OF SCHOOL RESOURCE OFFICERS, INC., (NASRO). ALL RIGHTS RESERVED. THIS DOCUMENT MAY NOT BE REPRODUCED OR DISTRIBUTED IN ANY FORM OR BY ANY MEANS WITHOUT THE EXPRESSED WRITTEN PERMISSION OF NASRO. EXHIBIT A Page 101 of 673 © 2018 BY THE NATIONAL ASSOCIATION OF SCHOOL RESOURCE OFFICERS, INC., (NASRO). ALL RIGHTS RESERVED. THIS DOCUMENT MAY NOT BE REPRODUCED OR DISTRIBUTED IN ANY FORM OR BY ANY MEANS WITHOUT THE EXPRESSED WRITTEN PERMISSION OF NASRO. 2 Forward 1.0 PURPOSE OF THE STANDARDS 1.1 General This publication represents a standard for domestic and international agencies and departments. This Standards and Best Practices for the School Resource Officer Programs was developed and is maintained by the National Association of School Resource Officers, Inc., (NASRO) a section 501(c)(3) IRC membership association established pursuant to Chapter 617 of the laws of the State of Florida. 1.2 Applicability This document contains professional standards and recommended best practices for law enforcement agencies both within and outside of the United States, regardless of size or level of government (federal/national, state/provincial or local). NASRO has adopted this Standards and Best Practices for the School Resource Officer Programs and supports the need for the standards to be used as a guide for new and existing SRO units and for the best practices to be reviewed and adopted by all law enforcement, school safety agencies and school boards, as recommended. NASRO has adopted these standards and best practices as the bases for future law enforcement certification or accreditation and supports the need for the standards to be used as a guide for all SRO law enforcement administrations and operations. 1.3 Intent These standards and best practices are intended to provide a foundation of safe operating practices in the performance of the unit’s mission and were formulated based on what has been identified as the two highest priorities of school-based law enforcement programs: 1. Safety first in all aspects of the operation. 2. Provide excellence in SRO services in support of the agency’s mission. 1.4 Scope The scope of this document is intended to encompass all aspects of SRO law enforcement and has been divided in four (4) major sections: Administration, Selection, Training and Collaboration. The subsections are intended to encompass the primary aspects of SRO law enforcement unit administration and operations. Page 102 of 673 © 2018 BY THE NATIONAL ASSOCIATION OF SCHOOL RESOURCE OFFICERS, INC., (NASRO). ALL RIGHTS RESERVED. THIS DOCUMENT MAY NOT BE REPRODUCED OR DISTRIBUTED IN ANY FORM OR BY ANY MEANS WITHOUT THE EXPRESSED WRITTEN PERMISSION OF NASRO. 3 2.0 THE MAJOR BENEFITS OF ADOPTING THESE STANDARDS Agencies are strongly encouraged to adopt and implement the standards and best practices outlined in this publication. They have been designed as industry standards intended to foster a universal application of best practices throughout the SRO law enforcement community. Although adoption and implementation of these standards and best practices is strictly voluntary, agencies that choose to adhere to them set themselves apart from others, becoming exemplars of SRO safety and operational excellence. 2.1 Safe, Effective and Cost-Efficient SRO Law Enforcement Operations Compliance with these standards and best practices provides agencies with a foundation upon which a culture of safe operating practices may be formulated and establishes a mark of excellence to further develop and enhance the SRO unit’s professionalism, efficiency, and overall effectiveness. 2.2 Greater Accountability with the Agency These standards and best practices provide the respective agency chief, sheriff, or department head sound training principles, personnel qualification requirements, clearly defined lines of authority, and examples of accepted industry standards that support informed decision-making and resource allocation. 2.3 Controlled Liability Insurance Costs Compliance with these standards and best practices may allow for agencies to more easily purchase SRO law enforcement and liability insurance, increase the limit of their insurance coverage, and, in many cases, lower their insurance premiums and/or gain other financial incentives. 2.4 Stronger Support from Government Officials and the Community By complying with these standards and best practices, agencies establish credibility as professional operations, which provide safe, cost-effective, and essential SRO support to law enforcement operations in a variety of missions. Page 103 of 673 © 2018 BY THE NATIONAL ASSOCIATION OF SCHOOL RESOURCE OFFICERS, INC., (NASRO). ALL RIGHTS RESERVED. THIS DOCUMENT MAY NOT BE REPRODUCED OR DISTRIBUTED IN ANY FORM OR BY ANY MEANS WITHOUT THE EXPRESSED WRITTEN PERMISSION OF NASRO. 4 TABLE OF CONTENTS Section Page Section 1 Administration 5-8 01.01.00 Definition 5 01.01.02 Purpose 5 01.01.03 Knowledge and Support 5 01.01.04 Memorandum of Understanding 6-8 Section 2 Selection 9-10 02.01.00 Selection Process 9 02.01.02 Experience 9 02.01.03 Number of SROs Selected 9 02.01.04 School Climate 10 02.01.05 Willingness in Developing Youth 10 02.01.06 Communication Skills 10 02.01.07 Probationary Period 10 Section 3 Training 11-13 03.01.00 Training Standards 11 03.01.01 Importance 11 03.02.01 Basic SRO Course 12 03.02.02 The TRIAD Approach 12 03.02.03 School Administration Policies & Procedures 12 03.03.00 Advanced SRO Course 13 03.04.00 Single Officer Rapid Deployment 13 Section 4 Collaboration 14-15 04.01.01 Definition 14 04.01.02 Defining Role of School Admin. and the SRO 14 04.01.03 The Administration’s Role in SRO Selection 15 04.01.04 The Administration’s Role in SRO Evaluation 15 04.01.05 The Administration’s Role during the SRO Probationary Period 15 Limitation of Liability The National Association of School Resources Officers, Inc., makes no warranty, expressed or implied, for the benefit of any person or entity with regard to any aspect of the standards and best practices contained herein. These standards were adopted for the sole purpose of developing best practices by law enforcement agencies, SRO units or division, school safety organizations, and school boards throughout the U.S., and various foreign countries to obtain and maintain certification, there being no intended third-party beneficiaries hereof, expressed or implied. Nothing herein shall be construed so as to create any right, use, property interest, or entitlement on the part of any applicant agency or third party. These standards shall in no way be construed to be an individual act of any director, employee, agency, member, individual, or a legal entity associated with NASRO or otherwise be construed so as to create any liability in an individual or official capacity on the part of any NASRO, director, employee, agency, member, individual, or legal entity associated with NASRO. Page 104 of 673 © 2018 BY THE NATIONAL ASSOCIATION OF SCHOOL RESOURCE OFFICERS, INC., (NASRO). ALL RIGHTS RESERVED. THIS DOCUMENT MAY NOT BE REPRODUCED OR DISTRIBUTED IN ANY FORM OR BY ANY MEANS WITHOUT THE EXPRESSED WRITTEN PERMISSION OF NASRO. 5 SECTION ONE | ADMINISTRATION 01.01.00 Administrative Standards Compliance 01.01.01 Definition A school resource officer (SRO) is a full-time law enforcement officer with sworn law enforcement authority, trained in school -based policing and crisis response, assigned by the employing law enforcement agency to work with the school using community-oriented policing concepts. (M) 01.01.02 Purpose The purpose of a successful SRO program is to “bridge the gap” between law enforcement and youth. This purpose is best accomplished by using the TRIAD model: Law Enforcement (LEO), Teacher (Guest Speaker), and Informal Counselor (Mentor). Each element of the TRIAD will be further explained throughout this document. (R) 01.01.03 Knowledge and Support from Agency Administration For the SRO program to be successful, the law enforcement agency head and the superintendent of the school district must understand and fully support the SRO program, including an understanding of the standards and best practices put forth in this document. (M) Page 105 of 673 © 2018 BY THE NATIONAL ASSOCIATION OF SCHOOL RESOURCE OFFICERS, INC., (NASRO). ALL RIGHTS RESERVED. THIS DOCUMENT MAY NOT BE REPRODUCED OR DISTRIBUTED IN ANY FORM OR BY ANY MEANS WITHOUT THE EXPRESSED WRITTEN PERMISSION OF NASRO. 6 01.01.04 Memorandum of Understanding A Memorandum of Understanding (MOU) or a similar contractual document should be established between the operating law enforcement agency and the school district. This document will assist in developing program goals and evaluating the program to assess the success in meeting identified goals. Example MOU topics include but are not limited to:  Defining the roles and responsibilities of formal school discipline (M) o SROs should not be administering formal school discipline such as detentions, suspensions, or expulsions. These decisions are the sole responsibility of the school personnel.  SROs act in accordance with the recommended TRIAD roles (R) o As a law enforcement officer, the SRO shall abide by federal, state, and local laws. o As an informal counselor/mentor, the SRO may address school violations in an effort to positively impact student behavior and character and may refer students to school personnel as necessary. o As a teacher/classroom presenter, the SRO may address school-related education law to positively impact student behavior and character to mitigate more serious behaviors.  Defining roles and expectations pertaining to decision to arrest (M) o According to federal law, the responsibility and decision to arrest lies solely with the SRO, respective to state law, local ordinances, and the SRO’s departmental standard operating procedures or standing order. o The SRO’s continual collaboration with school personnel and his or her understanding of each student’s needs may impact the decision to arrest but the responsibility is that of the SRO alone.  Chain of Command (M) o The SRO shall abide by the law enforcement agency’s policies pertaining to the chain of command. Page 106 of 673 © 2018 BY THE NATIONAL ASSOCIATION OF SCHOOL RESOURCE OFFICERS, INC., (NASRO). ALL RIGHTS RESERVED. THIS DOCUMENT MAY NOT BE REPRODUCED OR DISTRIBUTED IN ANY FORM OR BY ANY MEANS WITHOUT THE EXPRESSED WRITTEN PERMISSION OF NASRO. 7  Uniform Use (M) o SROs must be clearly identified as law enforcement. The uniform apparel and law enforcement equipment shall be defined by the agency policy. If a “soft” uniform is agreed upon, the uniform should not detract from clearly identifying the SRO as law enforcement.  Weapons Storage (M) o Normal duty gear is to be defined by the SRO’s agency policies. o In the event additional weapons or gear is to be utilized, the storage of these items shall be defined by the law enforcement agency  Use of Less Lethal Tools (R) o The SRO should abide by agency policies pertaining to the use of less lethal devices. o If there is a desired deviation from the policies, the cost, storage, and use must be agreed upon.  Sharing of Information (M) o SROs and school personnel shall share information in accordance with their respective state laws. o Access and use of school camera footage, body- worn cameras, student database information, and any other information sharing practices should be defined by the MOU.  Documentation and Reporting Requirements (M) o The SRO shall be under the immediate supervision and direction of his or her law enforcement agency. o The agency policies shall identify the documentation and reporting procedures to be used. o Any documentation requested by the school personnel shall be addressed by the MOU or similar contractual document.  Expenses (M) o The salary (including overtime), benefits, and equipment costs should be established in the MOU and/or in an agreed upon contract between the law enforcement agency and the school district. Page 107 of 673 © 2018 BY THE NATIONAL ASSOCIATION OF SCHOOL RESOURCE OFFICERS, INC., (NASRO). ALL RIGHTS RESERVED. THIS DOCUMENT MAY NOT BE REPRODUCED OR DISTRIBUTED IN ANY FORM OR BY ANY MEANS WITHOUT THE EXPRESSED WRITTEN PERMISSION OF NASRO. 8  Office Space and Office Supplies (R) o A clearly defined location should be established for the SRO to conduct school and law enforcement business. o Due to the nature of law enforcement related to juveniles, a dedicated location with a closable door should be available. o Access to office supplies such as paper, a printer, computer, etc. should be addressed in the MOU.  Hours on Campus (M) o Clearly defined expectations of the hours the SRO shall spend on campus should be agreed upon by the operating law enforcement agency and the school district. o Due to the nature of law enforcement, there may be a need for the SRO to be out of the building(s) for a period of time. o This should be understood and agreed upon by all parties involved.  Day-to-Day Duties (M) o As formerly described, the SRO shall utilize the TRIAD model: Law Enforcement (LEO), Teacher (Guest Speaker) and Informal Counselor (Mentor). o Quality law enforcement practices should be assumed and agreed upon. o The SRO should not be assigned to specific locations or duties on a daily basis, but rather be available to assist teachers, administrators, and students when requested and as consistent with their roles as a law enforcement officer, informal counselor/mentor, and teacher/classroom presenter. o The expectations of the SRO’s daily duties must be agreed upon by the law enforcement agency and the school district.  Extracurricular Activities (R) o There is a demonstrated benefit to the SRO’s involvement in extracurricular activities. o Expectations of attendance and compensation should be agreed upon by the law enforcement agency and the school district. Page 108 of 673 © 2018 BY THE NATIONAL ASSOCIATION OF SCHOOL RESOURCE OFFICERS, INC., (NASRO). ALL RIGHTS RESERVED. THIS DOCUMENT MAY NOT BE REPRODUCED OR DISTRIBUTED IN ANY FORM OR BY ANY MEANS WITHOUT THE EXPRESSED WRITTEN PERMISSION OF NASRO. 9 SECTION TWO | SELECTION 02.01.00 The SRO Selection Process Compliance 02.01.01 The SRO Selection Process  There shall be a clearly defined process of selection for the SRO to be employed.  This selection process shall be agreed upon between the agency and the school administration.  The school administration shall be involved in the selection process, including but not limited to, the interviews of SRO candidates. (M) 02.01.02 Experience  It is recommended that the officer selected have at least three (3) years of law enforcement experience.  This level of experience will help the officer obtain credibility among the school faculty, students, and parents.  This level of experience will also allow the SRO to have a greater understanding of the local agency’s policies and procedures. (R) 02.01.03 Number of SROs Selected  It is recommended that each school have at least one (1) SRO on campus.  It is recommended that the determination of the number of SROs needed for each school be based on but not limited to: o School enrollment o Discipline history o Number of campus buildings o Campus acreage o Calls for service o Location in the community o Number of non-sworn safety personnel in the building (R) Page 109 of 673 © 2018 BY THE NATIONAL ASSOCIATION OF SCHOOL RESOURCE OFFICERS, INC., (NASRO). ALL RIGHTS RESERVED. THIS DOCUMENT MAY NOT BE REPRODUCED OR DISTRIBUTED IN ANY FORM OR BY ANY MEANS WITHOUT THE EXPRESSED WRITTEN PERMISSION OF NASRO. 10 02.01.04 School Climate  Several factors pertaining to school climate should be considered when considering the best SRO fit: o Student enrollment o School discipline history o Cultural and minority representation o Special Education programs o English as a Second Language programs (R) 02.01.05 Willingness in Developing Youth  Effective SROs have a willingness to engage with youth.  This can be demonstrated in the candidate’s previous participation in youth or community policing programs. (M) 02.01.06 Communication Skills  Must have excellent verbal and written communication skills. (M) 02.01.07 Probationary Period  The selected SRO should have a probationary period agreed upon by the operating law enforcement agency and the school district to allow all parties to best determine if the selected officer is a proper fit for the school community. (R) Page 110 of 673 © 2018 BY THE NATIONAL ASSOCIATION OF SCHOOL RESOURCE OFFICERS, INC., (NASRO). ALL RIGHTS RESERVED. THIS DOCUMENT MAY NOT BE REPRODUCED OR DISTRIBUTED IN ANY FORM OR BY ANY MEANS WITHOUT THE EXPRESSED WRITTEN PERMISSION OF NASRO. 11 SECTION THREE | TRAINING 03.01.00 Training Standards Compliance 03.01.01 Importance  The SRO must be specially trained in school-based policing, as the duties and responsibilities of an SRO are inherently different than that of other law enforcement specialties.  At a minimum, the SRO should attend annual training related to school safety topics. These topics may include, but are not limited to: o Crisis Planning o Active Threat Response o Adolescent Mental Health  Such trainings enhance and maintain the relevancy of the SRO’s skill set.  It is recommended that a school administrator also attend with his or her SRO to support ongoing collaboration.  Some opportunities for these training programs include SRO conferences such those offered by the National Association of School Resource Officers and its affiliated state associations. (M) 03.02.00 The Basic SRO Training Course Compliance 03.02.01 Basic SRO Course  The SRO should complete a foundational school- based policing course, such as the NASRO Basic SRO Course, prior to being assigned.  If it is not practical for the new SRO to complete a foundational school-based policing course prior to the assignment, the new SRO shall complete a foundational school-based policing course within one (1) year of beginning the assignment. (M) Page 111 of 673 © 2018 BY THE NATIONAL ASSOCIATION OF SCHOOL RESOURCE OFFICERS, INC., (NASRO). ALL RIGHTS RESERVED. THIS DOCUMENT MAY NOT BE REPRODUCED OR DISTRIBUTED IN ANY FORM OR BY ANY MEANS WITHOUT THE EXPRESSED WRITTEN PERMISSION OF NASRO. 12 03.02.02 The TRIAD Approach  SROs must be trained to utilize a TRIAD approach to school-based policing.  This concept includes understanding and applying the principles of each TRIAD component: Law Enforcement (LEO), Teacher (Guest Speaker) and Informal Counselor (Mentor).  The specifics of each component include but are not limited to: o To be an effective law enforcement officer (LEO) in a school environment, the SRO should have a working knowledge of:  Constitutional and state law  Armed response  Crime prevention and mitigation  Interview and interrogation  Investigations  Crime Prevention Through Environmental School Design  Patrol operations (high visibility)  Advocacy within the juvenile justice system  Mandatory reporting o To be an effective teacher/guest speaker, the SRO should be capable of delivering law- related education lessons on topics such as:  Crime prevention  Social media  School safety  Victimization  Laws pertaining to students  Safe traffic stops  Driver safety  Decision making  Other topics requested by staff/parents o To be an effective informal counselor/mentor, the SRO should be properly trained in:  Mentoring  Crime prevention  Empowering youth  Resiliency and overall wellness  Adolescent brain development  Social and emotional development  Recognizing and supporting diversity  Improving youth decision-making skills  Trauma-informed practices (M) Page 112 of 673 © 2018 BY THE NATIONAL ASSOCIATION OF SCHOOL RESOURCE OFFICERS, INC., (NASRO). ALL RIGHTS RESERVED. THIS DOCUMENT MAY NOT BE REPRODUCED OR DISTRIBUTED IN ANY FORM OR BY ANY MEANS WITHOUT THE EXPRESSED WRITTEN PERMISSION OF NASRO. 13 03.02.03 School Administration Policies & Procedures  Additional school-related training topics in support of an effective SRO program should be ongoing.  Examples of these include but are not limited to: o Structure of the school’s discipline policy. o Family Educational Rights and Privacy Act (FERPA) and other school-related law issues. o Working with special needs students and the special education department within the school. o A school-utilized behavioral intervention program. (R) 03.03.00 The Advanced SRO Training Course Compliance 03.03.01 Advanced SRO Course  It is recommended that the SRO successfully complete an advanced level school-based policing course approximately one (1) year after successful completion of the basic foundational course.  This course will build on and further expand the SRO’s foundational knowledge and skills. (R) 03.04.00 Single Officer Rapid Deployment Training Compliance 03.04.01 Single Officer Rapid Deployment Training  The SRO should successfully complete bi-annual training for single officer rapid deployment.  This training should provide appropriate methods for the SRO to be able to respond to active assailants or threats in the school. (R) Page 113 of 673 © 2018 BY THE NATIONAL ASSOCIATION OF SCHOOL RESOURCE OFFICERS, INC., (NASRO). ALL RIGHTS RESERVED. THIS DOCUMENT MAY NOT BE REPRODUCED OR DISTRIBUTED IN ANY FORM OR BY ANY MEANS WITHOUT THE EXPRESSED WRITTEN PERMISSION OF NASRO. 14 SECTION FOUR | COLLABORATION 04.01.00 Collaboration Between Law Enforcement and the School Community Compliance 04.01.01 Definition  A successful SRO program must have a strong collaboration between the law enforcement agency and the school community.  Although various elements of the job are defined by each party, it is important that these elements are clearly defined and communicated. (M) 04.01.02 Defining Roles of the School Administrator and the SRO  It is recommended that each party establish the role of the school administrator and the SRO in this partnership to ensure that all district policies, department policies, local laws, state laws, and federal laws are followed.  It is recommended that a school administrator who will be partnering with the SRO also complete Basic and other school-based policing courses with the SRO. o This strengthens the collaboration and the understanding of this partnership in support of an effective SRO program.  Effective partnerships can be supported through but are not limited to the following methods: o The MOU and its annual review for program improvements and updates. o Shared trainings to best understand school and law practices, policies and programs. o Regular meetings to review existing and potential school-related issues. o Teachers correctly following the school’s chain of command and the SRO correctly following agency’s chain of command. o Established sharing of information on policies and procedures. o Regular review of CPTED at the school. o Crisis management planning and practice. o Community education in school-related law concerns of parents. (R) Page 114 of 673 © 2018 BY THE NATIONAL ASSOCIATION OF SCHOOL RESOURCE OFFICERS, INC., (NASRO). ALL RIGHTS RESERVED. THIS DOCUMENT MAY NOT BE REPRODUCED OR DISTRIBUTED IN ANY FORM OR BY ANY MEANS WITHOUT THE EXPRESSED WRITTEN PERMISSION OF NASRO. 15 04.01.03 The Administration’s Role in SRO Selection  The selection process of the SRO must include both the law enforcement agency and the school administration.  Factors of selection should include, but are not limited to: o School enrollment o Discipline history o Number of campus buildings o Campus acreage o Calls for service o Location in the community o Number of non-sworn safety personnel in the building 04.01.04 The Administration’s Role in SRO Evaluation  The effectiveness of the individual SRO must be based on the established performance goals agreed upon by the law enforcement agency and the school district.  An evaluation tool specific to the position of the SRO must be developed and utilized. o This will include evaluating the relationship between the SRO and the school administration and the effectiveness of the SRO related to the training and expectations. o This tool should include language specific to the law enforcement agency’s expectations as well as the school district’s expectations. (M) 04.01.05 The Administration’s Role During the SRO Probationary Period  The school administration shall participate in the probationary review of the selected SRO as agreed upon by the agency and the school district to allow all parties to best determine if the selected officer is a proper fit for the school community. (M) Page 115 of 673 Item 8.j. MEMORANDUM TO: City Council FROM: Sheridan Bohlken, Recreation Services Director SUBJECT: Consideration of Approval of a Memorandum of Understanding with Lucia Mar Unified School District to Provide Free Child Care through the Bright Futures Expanded Learning Opportunities Program DATE: June 14, 2022 SUMMARY OF ACTION: Approval of the Memorandum of Understanding (MOU) with the Lucia Mar Unified School District (LMUSD) (Attachment 1) will provide a mechanism to offer free child care to families during “expanded learning opportunities” during the 2022 summer break. By doing so, the City will be reimbursed through the Bright Futures Expanded Learning Opportunities Program (ELOP) grant to provide child care at Ocean View Elementary School. While this grant has the potential to continue for the 2022-23 school year for before school, after school, and/or other school breaks and expand to Branch Elementary School, this MOU addresses the first phase of the program to be offered to students enrolled in summer school at Ocean View Elementary. IMPACT ON FINANCIAL AND PERSONNEL RESOURCES: The components of the MOU for the ELOP have taken several months to define in parameters that meet both the requirements of the grant and child care programming offered by the City. Staff has met with LMUSD representatives and researched how to meet these requirements (approximately 15 hours), evaluating costs, staffing and facility availability. As presented, the partnership offers a $50 reimbursement to the City per day per student with a minimum payment for 50 students (regardless of enrollment), in addition to a one-time $1,000 partner provider fee. Additionally, materials, guest speakers and other supplies will be reimbursed through ELOP. The proposed Mid-Cycle Budget Update for Fiscal Year 2022-23 includes an estimated $126,000 in total revenue and expenditures for the summer program. RECOMMENDATION: Approve and authorize the City Manager to execute the MOU with LMUSD for the City to provide child care free of charge to students enrolled in summer school at Ocean View Elementary and be reimbursed through the ELOP grant. Page 116 of 673 Item 8.j. City Council Consideration of Approval of a Memorandum of Understanding with Lucia Mar Unified School District to Provide Free Child Care through the Bright Futures Expanded Learning Opportunities Program June 14, 2022 Page 2 BACKGROUND: The Expanded Learning Opportunities Program (ELOP) provides state grant funding (Assembly Bill [AB] 130, Chapter 44, Statutes of 2021, as amended by AB 167, Chapter 252, Statutes of 2021) for afterschool and summer school enrichment programs for kindergarten (including transitional kindergarten) through sixth grade s. Statewide, educational agencies are receiving $1.75 billion dollars in Fiscal Year 2021-22 with an anticipated growth to $5 billion dollars within the next 3-5 years. It is the intent of the Legislature that expanded learning programs funded through the ELOP are student-centered, results driven, include community partners, and complement, but do not replicate, learning activities in the regular school day and school year. “Expanded learning” refers to before school, after school, summer, or intersession learning programs that focus on developing the academic, social, emotional, and physical needs and interests of pupils through hands-on, engaging learning experiences. ANALYSIS OF ISSUES: LMUSD has received funding allocations for the ELOP and began conversation with City’s Recreation Services Department in January, 2022 to provide services fulfilling the grant requirements. As the City is a child care provider at two LMUSD elementary school sites, partnership with the City was requested to provide ELOP programming first at Ocean View Elementary during the summer of 2022. As this program is intended to continue forward at all elementary schools in the LMUSD for the 2022-2023 school year, planning is currently underway and a separate MOU will be brought forward at a future date for the program to be offered at both Ocean View and Branch Elementary schools. For the summer program, meetings were held between City and LMUSD staff to discuss grant requirements, steps towards program implementation, cost of services and program needs. Rates of reimbursement have been calculated for the cost of services and have been determined to be $50 per day per student for the first phase of the program in summer 2022. For summer programming, hours of operation will be from 12:30pm -6pm, Monday through Thursday. While the ELOP will only be available to students attending summer school, the City will be offering a regularly scheduled day camp program at Ocean View Elementary school, Monday-Friday, 7am-6pm, open for registration to any child in TK through 6th grade. Through conversation with LMUSD on how to operate the ELOP (Attachment 2) and how partnering with the City would be best, the school district has agreed to provide materials, support and facilities. The proposed MOU with LMUSD for ELOP requires that the City: 1. Plan and provide activities that are developmentally age appropriate, including literacy activities from after school until 6pm; 2. Provide proof that all staff are No Child Left Behind (NCLB) certified; Page 117 of 673 Item 8.j. City Council Consideration of Approval of a Memorandum of Understanding with Lucia Mar Unified School District to Provide Free Child Care through the Bright Futures Expanded Learning Opportunities Program June 14, 2022 Page 2 3. Keep premises clean and put away all equipment and supplies; 4. Allow parents and staff of LMUSD to visit the site with prior approval; 5. Bill LMUSD bi-monthly with supporting attendance records for reimbursement; 6. Provide LMUSD any information pertaining to ELOP/Bright Futures that is requested; 7. Maintain ratios of staff to students of 1:20. In addition and in turn, LMUSD will: 1. Provide curriculum upon request; 2. Offer the No Child Left Behind curriculum support for any City staff who may not have 60 college units or an AA degree; 3. Agree to make appropriate and adequate facilities available to the City to run the program; 4. Agree to provide the names of and other pertinent information of the students attending the program; 5. Provide supper for the students attending the afterschool program; 6. Pay $1,000 to the City as a partner provider fee; 7. Reimburse City $50 per day for a minimum of 50 students and maximum of 120 students for 21 days equating of a range from $52,500 -$126,000, depending upon enrollment. ALTERNATIVES: The following alternatives are provided for the Council’s consideration: 1. Approve the proposed MOU with LMUSC to provide services for the ELOP and authorize the City Manager to execute agreement; 2. Do not approve the proposed MOU with LMUSD; or 3. Provide other direction to staff. ADVANTAGES: The following advantages are provided for the Council’s consideration: 1. Providing child care free of cost through ELOP for local families will greatly benefit children and families; 2. Partnering with LMUSD will further strengthen the growth of the City’s youth and bolster their education through efforts involving literacy; and 3. Creating a viable pathway for families to access free quality child care so that they may be able to work will assist with children’s overall success in school and life, and will strengthen family units in the Arroyo Grande community now and into the future. Page 118 of 673 Item 8.j. City Council Consideration of Approval of a Memorandum of Understanding with Lucia Mar Unified School District to Provide Free Child Care through the Bright Futures Expanded Learning Opportunities Program June 14, 2022 Page 2 DISADVANTAGES: As this grant program addresses one of the challenges facing the child care sector in Arroyo Grande and provides free child care to local families with children in Transitional Kindergarten through 6th grade, there are no disadvantages known 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 MOU Between the City of Arroyo Grande and Lucia Mar Unified School District for the Bright Futures After-School Summer Learning Program 2.Expanded Learning Opportunities Program Plan Guide Consideration of Approval of a Memorandum of Understanding with Lucia Mar Unified School District to Provide Free Child Care through the Bright Futures Expanded Learning Opportunities Progra Page 119 of 673 LUCIA MAR UNIFIED SCHOOL DISTRICT Arroyo Grande Nipomo Grover Beach LUCIA MAR UNIFIED SCHOOL DISTRICT 602 Orchard Street, Arroyo Grande, CA 93420 Tel 805.474.3000 x1095 I Fax 805.473.4397 Ocean View Pismo Beach MEMORANDUM OF UNDERSTANDING CITY OF ARROYO GRANDE RECREATION SERVICES DEPARTMENT AT OCEAN VIEW ELEMENTARY SCHOOL BRIGHT FUTURES AFTER-SCHOOL SUMMER LEARNING PROGRAM, FY-2021-2022 Section A: Services to Be Performed by City of AJToyo Grande Recreation Services Department (AGRSD) AGRSD will: 1)Plan, provide, and/or facilitate activities and classes for the Bright Futures Summer School After School Leaming Program at OCEAN VIEW ELEMENTARY SCHOOL for the period of June 21, 2022 -July 28, 2022. These activities shall be developmentally age appropriate and shall include, but not limited to the following components; distributing daily snacks, academic enrichment, literacy activities daily from immediately after school until 6:00 pm as outlined in the Expanded Leaming Opportunity Program (ELOP) grant. 2)The AGRSD Supervisor will provide LMUSD Bright Futures Summer School After School Leaming Program Coordinator proof that their staff is No Child Left Behind (NCLB) certified. The supervisor may provide transcripts for each staff member that has 60 or more college units or an AA degree. If any staff member does not have 60 or more college units or AA degree, that staff member may take the NCLB test offered by LMUSD. For any staff member who does not pass the NC:LB test, they may retake the section that they missed. 3)Keep the premises clean and shall put all equipment and supplies away. All rooms and areas used by AGRSD will be left neat and orderly. The AGRSD will only use supplies designated for after school use. 4)Parents and staff members may visit the program at any time with prior approval. A pre-scheduled appointment is necessary if the parent or staff member would like a conference with the program leaders or if the visit is for an extended amount of time. 5)Bill LMUSD bi-monthly for staff members' actual program work hours and the invoice is to include supporting documentation for sick leave and hourly payroll to be reimbursed. 6)Provide LMUSD with any information pertaining to students enrolled in Bright Futures Summer School After School Leaming Program that is requested. ATTACHMENT 1 Page 120 of 673 Section B: Obligati on s of L uc ia Mar U nified School District (L MU SD) LMUSD will: 1) Provide curriculum upon request. 2) Offer the NCLB support for any AGPR staff member who does not have 60 college units or AA degree. Staff members may retake any sections they have not passed. 3) Agrees to make appropriate and adequate facilities available to AGRSD to run the Bright Futures Summer School After School Leaming Program. 5) Agrees to provide AGRSD the names and other pertinent information of the students attending the Bright Futures Summer School After School Leaming Program. 6) Provide supper for the students attending the Bright Futures Summer School After School Leaming Program. 7) Should LMUSD confirm individual support is required for a student or students, LMUSD is responsible for training and payment of individual support staff at a rate. 8) Pay $ 1000 to AGRSD for a partner provider fee . Section C : Comp ensation LMUSD and AGRSD agree that a program of the highest quality is desirable to provide academic and social growth for all participant students. Therefore, a curriculum will be jointly implemented to address the diverse needs of the students. 1. LMUSD will pay the agency fee for students that are attending Bright Futures Summer School After School Leaming Program. LMUSD will guarantee payment to AGRSD for a minimum of 50 students at $50 per student per day regardless of emollment. For each student that is emolled after the minimum guarantee an additional $50 per student per day will be paid. Section D: B illing Rates 1. LMUSD will pay a minimum of $50.00 per student for 50 students for 21 days = $52,500 and a maximum of $50 per student for 120 students for 21 days = $126,000. Section E: Termination of MOU Should the Expanded Leaming Opportunity Program (ELOP) grant be reduced or eliminated, LMUSD may eliminate, reduce or renegotiate this contract with 30 days written notice to AGRSD. LMUSD and the AGRSD share a goal of the highest quality program for participant students. To that end, periodic reviews will be conducted by the Bright Futures Summer School After School Leaming Program Director and school site personnel including the Principal and / or Bright Futures Summer School After School Leaming Program Coordinator. Any concerns will be identified promptly in writing using an evaluative checklist and narrative observation form to the Executive Director of AGRSD. AGRSD will have 30 calendar 2 Page 121 of 673 days in which to improve. Improvement will be measured by weekly visitations during the improvement period by the Bright Futures Summer School After School Leaming Program Director and school site Principal and Bright Futures Summer School After School Leaming Program Coordinator. The LMUSD Assistant Superintendent of Instruction or his/her designee shall be the sole determiner of adequate program quality. LMUSD reserves the right to terminate the recreation program provided by AGRSD at any time it determines the quality of the program is not meeting the needs of the students after having followed this process. JimEmpe� Assistant Superintendent, Business Services Lucia Mar Unified School District Whitney McDonald City Manager City of Arroyo Grande v; kt [-iot-'Z--' Dae Date LMUSD _Board J>f1Edu� tion Approved: lJ._111 0. 12-,Z,,,,r I 3 Page 122 of 673 ATTACHMENT 2Page 123 of 673 Page 124 of 673 Page 125 of 673 Page 126 of 673 Page 127 of 673 Page 128 of 673 Page 129 of 673 Item 9.a. MEMORANDUM TO: City Council FROM: Nicole Valentine, Administrative Services Director SUBJECT: Public Hearing to Consider Adoption of a Resolution Establishing Solid Waste Rates DATE: June 14, 2022 SUMMARY OF ACTION: Conduct a public hearing, consider protests regarding the proposed solid waste rate adjustment set forth in the notice of public hearing provided to solid waste rate customers based on the Solid Waste Rate Review, and if there is no majority protest, adopt a Resolution establishing solid waste rates for June 15, 2022, January 1, 2023, and January 1, 2024. IMPACT ON FINANCIAL AND PERSONNEL RESOURCES: There is no impact on staff resources related to the proposed action. There will be a minor increase in franchise fee revenue from the increase and a minor increase to the City’s cost for solid waste collection. If the proposed multi -year rate setting approach is approved, future personnel resources will not be required to prepare interim year reviews, thus providing an operational efficiency. Pursuant to the City’s existing Franchise Agreement with South County Sanitary Service (SCSS), the costs of consultant services to review SCSS’s rate adjustment request are paid by SCSS. RECOMMENDATION: 1) Conduct a public hearing and consider protests regarding the proposed solid waste rate adjustments identified in the notice of public hearing, based on the Solid Waste Rate Review; and 2) If there is no majority protest, adopt a Resolution establishing new Solid Waste rates effective June 15, 2022, January 1, 2023, and January 1, 2024. BACKGROUND: The City has had a Franchise Agreement with SCSS, a subsidiary of W aste Connections, for collection, diversion and disposal of solid waste in the City since 1997. On June 10, 2008, a new Solid Waste Collection Franchise Agreement with SCSS was approved and the Franchise Agreement was subsequently amended twice in 2016. The Franchise Agreement was amended a third time in April 2022 to address necessary changes and requirements associated with Senate Bill (SB) 1383. Through the terms of the Franchise Page 130 of 673 Item 9.a. City Council Public Hearing to Consider Adoption of a Resolution Establishing Solid Waste Rates June 14, 2022 Page 2 Agreement, SCSS is entitled to compensation for its “labor, equipment, mate rials and supplies, taxes, insurance, bonds, overhead, transfer and transport, processing, division, disposal, provide and all other things necessary to perform all of the services required by [the] Agreement.” This compensation is received through the rates and charges paid by the City’s customers, which are presented to the City through rate review applications and reviewed by the City Council through the Proposition 218 process. Per the Franchise Agreement, rates are reviewed in accordance with the “City of San Luis Obispo Rate Setting Process and Methodology Manual for Integrated Solid Waste Management Rates” (Manual). The Franchise Agreement allows for a base rate adjustment every three years and interim rate increases in the other two years. In interim rate periods, the operator is limited to increases resulting from inflation, tipping fee adjustments, and franchise or regulatory fee increases. During base rate years, the operator is able to request adjustments due to changes in other operational cost s as set forth in the Manual. The following table summarizes the SCSS rate review history beginning in 2005 (based on the year of the application (which is typically the implementation year): Page 131 of 673 Item 9.a. City Council Public Hearing to Consider Adoption of a Resolution Establishing Solid Waste Rates June 14, 2022 Page 3 The City received an initial rate adjustment request from SCSS on October 20, 2021, and a revised draft application on February 18, 2022, that included a base year rate increase request of 24.65%. Along with the Cities of Grover Beach and Pismo Beach, and the Oceano Community Services District, the City jointly contracted with consultant William C. Statler to prepare a review of the rate increase request to determine if it complies with the provisions of the Manual. The Manual ensures that the hauler’s rates are justifiable and supportable, and reflect the cost of providing the service; it also ensures that there is ongoing review and rate stability, and that the rate setting process is easy to administer and implement. W ith the assistance of Mr. Statler, the City completes a formal and thorough review of the financial and operating data to protect the City’s ratepayers. The process is designed to prevent large, unexpected fluctuations in rates anticipated from funding a broadening scope of integrated waste management services. After careful review of the rate adjustment requests from SCSS and relevant supporting documentation, Mr. Statler completed a comprehensive report (Report) evaluating the request and suggesting that a 22.19% increase is justifiable in 2022. The key drivers behind the proposed 22.19% rate increase for 2022 can be summarized as follows:  8.05% for truck depreciation  7.71% for investments in food and green waste recycling  2.41% for insurance  1.06% for increase in gas and oil  2.96% for all other cost increase including labor, ongoing maintenance, and other pass-through costs In addition, SCSS proposes to include the next two interim rate adjustments in its request at this time. These rates are proposed to increase each of the next two years to address the following factors: 1. Changes in the Consumer Price Index (CPI) for “controllable” operating costs. The Manual states that the annual change in CPI will be based on the published Bureau of Labor Statistics in their Monthly review. 2. Changes in “pass-through costs” (primarily landfill tipping fees, which are set by the County Board of Supervisors and are not controlled by SCSS). On April 12, 2022, the City Council reviewed the Solid Waste Rate Review report completed by Mr. Statler (Attachment 2) and received a presentation from Mr. Statler. The staff report from the April 12, 2022 meeting is provided as Attachment 3. As explained during the April 12, 2022 presentation, Mr. Statler’s report includes a discussion of Delayed Rate Implementation increases on page 3, which describes a proposal to allow SCSS to recoup increased costs that have been incurred during delays in the consideration of the rate review application. The City has not previously approved delayed implementation rates. However, the Manual does provide for this possibility if Page 132 of 673 Item 9.a. City Council Public Hearing to Consider Adoption of a Resolution Establishing Solid Waste Rates June 14, 2022 Page 4 there is a delay in implementation of a rate increase of more than 120 days after application if it is “no fault of the franchise hauler.” Given the initial October 20, 2021 submittal date, this would indicate rate approval may have been necessary by March 1. Two of the factors that mitigate this 120-day period are identified in Mr. Statler’s report as follows: 1. When the 120-day period was set, the understanding at the time was that the Proposition 218 45-day notice and protest requirements did not apply to appro val of private company solid waste rates. 2. Review was delayed pending consideration of rate increases by the San Luis Obispo Integrated W aste Management Authority (IWMA) and their possible impact on SCSS’s rates. These new rates were not adopted by the IWMA until March 9, 2022, and will be implemented starting July 1, 2022. SCSS is authorized to bill this fee to the rate payers benefiting from these additional services in compliance with Proposition 218. In accounting for these factors, Mr. Statler and staff recommend that delayed rate implementation apply for the period between May 1, 2022, and the City Council’s approval of the rate adjustments, anticipated to be considered on June 14, 2022, as discussed further below. While delays in completion of the ana lysis of the rate review application were “no fault” of SCSS, they were not the fault of the City either. SCSS argued that the delayed rate implementation start period should begin March 1, 2022, 132 days after the original rate review application submittal date of October 20, 2021. The proposed temporary Delayed Rate Implementation increase is shown in the table below: Please note that the Delayed Rate Implementation increase ends December 31, 2022. Beginning January 1, 2023, rates will lower to an in crease of 22.19%, plus any changes related to CPI for “controllable” operating costs and changes in “pass-through costs.” The April 12, 2022 staff report also described language in Section 8.3 of the Franchise Agreement that provides that if the rate increase request compared with the rate in effect at the date of the Franchise Agreement exceeds the cumulative cost of living increase from that same date, the City has the option of terminating the Franchise Agreement at any time within nine months following approval of the requested rate increase. The “trigger” calculation does not limit the amount of increase that SCSS can request; it simply incentivizes SCSS to keep its requested increases below the cumulative increase in CPI to avoid the City opting to terminate the Franchise Agreement. SCSS’s request exceeded the “trigger” by 26.89%. However, staff recommended against pursuing the termination (“trigger”) option as, based on a detailed review of costs as presented in Attachment 2, Effective Date New Rate % March 1 Delay Rate Implementation May 1 Delay Rate Implementation Mr. Statler & Staff Recommendation SCSS Recommendation 15-Jun 22.19%11.95%5.12%27.31%34.14% Page 133 of 673 Item 9.a. City Council Public Hearing to Consider Adoption of a Resolution Establishing Solid Waste Rates June 14, 2022 Page 5 the costs are reasonable and rates have been calculated in accordance with the Manual. Finally, the requirements of Senate Bill 1383 have created significant new regulatory requirements, burdens, and costs for the City, its solid waste partners such as the IWMA, and SCSS. Franchise Agreement amendments approved in April will require SCSS to help the City meet certain SB 1383 requirements, and termination of the Franchise Agreement with SCSS at this time would create significant disruption in the efforts to comply with the new State regulations. On April 12, 2022, the City Council set the Public Hearing for June 14, 2022, to consider adjusting the Solid Waste rates for June 15, 2022, January 1, 2023, and January 1, 2024. Additionally, Council directed that the Proposition 218 hearing notice be provided including a Delayed Rate Implementation increase beginning in May 1, 2022. Consistent with the Franchise Agreement, SCSS mailed the required Proposition 218 Notice to affected customers and property owners, as shown in Attachments 4 and 5. ANALYSIS OF ISSUES: The Report proposes Solid Waste rate increases of 22.19%, plus a delayed rate implementation of 5.12%, totaling 27.31% on June 15, 2022. The Delayed Rate Implementation increase is proposed to end December 31, 2022. Beginning January 1, 2023, rates will lower to an increase representing 22.19%, plus any changes related to CPI for “controllable” operating costs and plus any changes in “pass-through costs.” On January 1, 2024, rates will be the January 1, 2023 rates, plus any changes related to CPI for “controllable” operating costs and plus any changes in “pass-through costs.” In summary, single family residential customers will see the following increases, if approved: In addition, the IWMA’s increased fees adopted on March 9, 2022, will also be passed through to customers. As explained in the April 12, 2022 staff report, the IWMA has taken the lead in implementing SB 1383 on behalf of its member agencies. Following the County’s exit from the IWMA, it became necessary for the IWMA to reevaluate its fees in light of the anticipated loss of revenue from the customers within the unincorporated areas of the County. This reevaluation resulted in a delay in adoption of revised fees, which are levied on the haulers and ultimately passed through to customers. At its March 9, 2022 IWMA Board of Directors meeting, the Board adopted revised fees establishing a solid waste management fee of 5.4% of gross hauler receipts. This revised fee alters the structure previously used by the IWMA, which had included the following: (1) 2% of the Single Family Residential Current Rate May 1 retroactivity, 27.31% New Rate 32-gallon Container 19.46$ 24.78$ 64-gallon Container 25.29$ 32.19$ 96-gallon Container $ 31.13 39.63$ Page 134 of 673 Item 9.a. City Council Public Hearing to Consider Adoption of a Resolution Establishing Solid Waste Rates June 14, 2022 Page 6 gross revenue collected from commercial customers; and (2) the solid waste management fee of $0.30 per month for residential accounts charged less than $50 per month and a 2% fee for residential accounts paying more than $50 a month . The new fee no longer charges different fees related to commercial and residential accounts and instead charges an overall fee equivalent to 5.4% of the hauler’s gross receipts, calculated based on the gross receipts amounts used to determine the hauler’s franchise fee obligations to its franchisors. The proposed IWMA fee with the temporary Delayed Rate Implementation increase is shown in the table below: If there is no majority protest, the proposed rate increase will be implemented starting July 1, 2022. SCSS is authorized to bill this fee to the rate payers benefiting from these additional services in compliance with Proposition 218. With the proposed increase, solid waste rates for Arroyo Grande are among the lowest in the Central Coast area for single family residential services, as shown in the following table: Single Family Residential Current Rate May 1 retroactivity, 5.4% New Rate 32-gallon Container 0.30$ 1.34$ 64-gallon Container 0.30$ 1.74$ 96-gallon Container $ 0.30 2.14$ IWMA Fee Page 135 of 673 Item 9.a. City Council Public Hearing to Consider Adoption of a Resolution Establishing Solid Waste Rates June 14, 2022 Page 7 Proposition 218 Process The City’s practice is to apply the provisions of Proposition 218 to solid waste rates and to require that all property owners and tenant customers receiving solid waste collection services receive written notice by mail at least 45 days prior to the City Council consideration of approving solid waste rate adjustments. The notice must include the amount of the fee, the basis on which the fee was calculated and the date, time and place of the public hearing and must clearly advise of the right to protest the fee increase. Proposition 218 notices for the contemplated rate adjustments wer e mailed by April 29, 2022. A copy of the mailed notice is provided in Attachments 4 and 5. If written protests to the proposed rate increase are received from a majority of affected parcels, the City Council may not adopt the proposed rates. There are currently 8,807 parcels in Arroyo Grande receiving solid waste collection services. Therefore, 4,404 protests would represent a majority. According to State law, one written protest per parcel will be counted toward reaching a majority. The protest must be submitted in writing, signed by the property owner or the authorized representative of the property owner , or the tenant customer. At the time this report was prepared, there were 11 protest letters received. Protests have been accepted via email as well as by mail, and will be accepted up to the close of the public hearing. At that time, the total protests received will be counted and, if no majority protest has occurred, Council may adopt the proposed Resolution setting forth the solid waste rates that will go into effect on June 15, 2022. ALTERNATIVES: The following alternatives are provided for the Council’s consideration: 1. Conduct a public hearing and consider protests regarding the proposed solid waste rate adjustments identified in the notice of public hearing, based on the Solid Waste Rate Review; and 2) if there is no majority protest, adopt a Resolution establishing new Solid Waste rates effective June 15, 2022, January 1, 2023, and January 1, 2024; or 2. Provide other direction to staff. ADVANTAGES: Approval of the rate increase is consistent with the terms of the existing rate setting methodology set forth in the Franchise Agreement and the quality of service provided by SCSS has been good. Therefore, the recommended action will enable continuat ion of uninterrupted solid waste collection and recycling services at a reasonable cost. DISADVANTAGES: Customers will experience higher solid waste collection and recycling costs. ENVIRONMENTAL REVIEW: No environmental review is required for this item. Page 136 of 673 Item 9.a. City Council Public Hearing to Consider Adoption of a Resolution Establishing Solid Waste Rates June 14, 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. Proposition 218 notices for the proposed rate adjustments were mailed by April 29, 2022. On Friday, June 3, 2022 the public hearing notice was published in The Tribune and on the City’s website. Of the eleven protest letters received as of June 8, 2022 (Attachment 6), one protest letter provided information about opposing the 5.12% delayed rate implementation increase. One protest letter provided information about opposing the increase due to the fact that there are no other garbage service options. One protest letter provided information about opposing the increase related to timing, as well as the percentage amount of each of the rate increases. The remaining 8 simply stated that they would like to protest the increase. Attachments: 1. Proposed Resolution 2. Solid Waste Rate Review 3. April 12, 2022 Staff Report 4. Proposition 218 Public Notice – Residential 5. Proposition 218 Public Notice – Commercial 6. Written Public Comment Page 137 of 673 ATTACHMENT 1 RESOLUTION NO. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ARROYO GRANDE ESTABLISHING INTEGRATED SOLID WASTE COLLECTION SERVICE RATES FOR JUNE 15, 2022, JANUARY 1, 2023 AND JANUARY 1, 2024 WHEREAS, the City of Arroyo Grande (“City”) establishes rates and charges for solid waste, recycling and green waste collection services, pursuant to Public Resources Code Section 40059 (a) and Arroyo Grande Municipal Code §§ 8.32.100 and 8.32.210; and WHEREAS, the City and South County Sanitary Service, Inc. (“SCSS”) entered into a Franchise Agreement for collection, diversion and disposal of solid waste , dated November 12, 1997 (“Prior Solid Waste Agreement”); and WHEREAS, the City and SCSS entered into a subsequent amendment, modifying certain provisions of the Prior Solid Waste Agreement, dated March 23, 1999, requiring collection, diversion and disposal of green waste; and WHEREAS, the City and SCSS also entered into a Recycling Services Franchise Agreement, dated August 24, 1999; and WHEREAS, the City and SCSS further entered into an Amended and Restated Solid Waste Collection Franchise Agreement, dated June 10, 2008, which amended and restated the Prior Solid Waste Agreement and incorporated, amended and restated the Prior Recycling Agreement; and WHEREAS, the City and SCSS also entered into a First Amendment to the Amended and Restated Solid Waste Collection Agreement, dated March 22, 2016, which excluded tipping fee increases for landfill improvements, when calculating whether the SCSS rates charged to customers are greater than the cumulative cost of living increase; and WHEREAS, the City and SCSS also entered into a Second Amendment to the Amended and Restated Solid Waste Collection Agreement, dated July 26, 2016, which amended the franchise agreement to extend the contract by 20 years, beginning with the first day of the operation of a new Kompogas organic processing facility; and WHEREAS, SCSS has submitted a rate increase application (the “application”) in accordance with the Amended and Restated Solid Waste Collection Franchise Agreement ; and WHEREAS, the application has been comprehensively reviewed in accordance with the City’s rate- setting policies; and WHEREAS, the rate increase request compared with the rate in effect at the date of the agreement exceeds the cumulative cost of living increase from that same date, giving the City the option of terminating the Amended and Restated Solid Waste Collection Franchise Agreement at any time within nine months following approval of the requested rate increase ("the trigger option"); and WHEREAS, based on a detailed review of costs, which concludes costs are reasonable and that rates have been calculated in accordance with the required rate setting manual, combined with the Page 138 of 673 ATTACHMENT 1 fact that rates for Arroyo Grande are among the lowest in the Central Coast area for single family residential services, during this fee increase period only, and in this unique circumstance caused in part by new State regulations, the City will not pursue the "trigger" option per Section 8. 3 of the City's Amended and Restated Solid Waste Collection Franchise Agreement with South County Sanitary Services. WHEREAS, notices of the proposed rate increase were sent to property owners and tenants in accordance with the requirements of Proposition 218 and a public hearing was held on June 14, 2022 to consider protests against the proposed rate increase; and WHEREAS, it was determined at the conclusion of the public hearing that a majority protest to the proposed rate increase did not exist. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Arroyo Grande as follows: 1. The above recitals are true and correct and incorporated herein by their r eference. 2. The application for a rate increase is hereby approved and the integrated solid waste, recycling and green waste collection service rates set forth in Exhibit “A” attached hereto and incorporated herein shall become effective on June 15, 2022. 3. Solid waste rates shall increase as f ollows on January 1, 2023 and January 1, 2024: a. Increase, if any, in the Consumer Price Index (CPI) for Bureau of Labor Statistics’ Consumer Price Index for Urban Consumers based on the All U.S. City Average, Bureau of Labor Statistics for the month of June 2022 for January 1, 2023 and June 2023 for January 1, 2024. b. Increase of 0.79% for 2023 and 0.77% for 2024 for increase in the cost of landfill disposal. 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 14th day of June, 2022. Page 139 of 673 ATTACHMENT 1 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 140 of 673 ATTACHMENT 1 EXHIBIT A SOUTH COUNTY SANITARY SERVICE RATE INCREASE EFFECTIVE JUNE 15, 2022 CITY OF ARROYO GRANDE Service Description Pickups Per Week Current Monthly Rate Effective 1/1/2021 Proposed Rate Adjustment Proposed Monthly Rate Effective 6/15/2022 RESIDENTIAL: 32 Gallon Waste Wheeler 1 $19.46 $5.32 $24.78 64 Gallon Waste Wheeler 1 $25.29 $6.91 $32.19 96 Gallon Waste Wheeler 1 $31.13 $8.50 $39.63 TWO-64 Gallon Waste Wheelers 1 $36.98 $10.10 $47.08 ONE 64 & ONE 96 Gallon 1 $42.84 $11.70 $54.54 TWO-96 Gallon Waste Wheelers 1 $48.67 $13.29 $61.96 Residential customers must use the waste wheelers provided by the garbage company. This solid service fee for residential trash collections (container with black or gray lid) includes once a week pick-up of one greenwaste/organics container (green lid), and one recycling container (blue lid). MISCELLANEOUS CHARGES - ALL CUSTOMERS: Overstacked Garbage & extra bags Minimum/unit each $5.51 $1.51 $7.02 Overstacked Greenwaste & extra bags Minimum/unit each $2.77 $0.76 $3.53 Overstacked Blue Bin & extra bags Minimum/unit each $1.55 $0.42 $1.97 In yard service (per can or commodity) IN ADDITION TO STANDARD GARBAGE RATES per month $13.76 $3.76 $17.51 Monthly charge for additional 96-gallon green waste service per month $3.80 $1.04 $4.84 Extended Vacation Service per month $15.78 $4.31 $20.09 Vacant Rate per month $15.78 $4.31 $20.09 Waste wheeler cleaning each time $20.52 $5.61 $26.13 Trip charge each time $33.07 $9.03 $42.10 Non-payment downsize service each time $33.07 $9.03 $42.10 Non-payment redeliver waste wheeler each time $33.07 $9.03 $42.10 Non-payment reconnect service each time $33.07 $9.03 $42.10 Small item pickup (TV, toilet) each $32.27 $8.81 $41.08 Appliance pickup-residential each $45.51 $12.43 $57.94 Garbage extras on your scheduled pickup day per yard $11.62 $3.17 $14.79 Garbage extras -NOT ON YOUR SCHEDULED PICKUP DAY per yard $31.25 $8.54 $39.79 Re-deliver bin on stopped acct each time $39.44 $10.77 $50.21 Stand by time per hour $66.60 $18.19 $84.79 Tax Lien Cert. Mail Fee $4.05 $1.11 $5.16 Page 141 of 673 ATTACHMENT 1 City Clean Up $11.28 $3.08 $14.36 Extra bin cleaning $61.55 $16.81 $78.36 Damage/Destruction of bins or waste wheelers by quote only Larger than residential appliance or glass, glass doors, or plate glass by quote only Short Term Dumpsters: Delivery & Pickup-Bin $39.46 $10.78 $50.24 Delivery & Pickup-Waste Wheeler $13.76 $3.76 $17.52 Rental Per Day $2.92 $0.80 $3.72 Empties Per Yard $31.25 $8.54 $39.79 Mattress: Twin Each $17.91 $4.89 $22.80 Double Each $17.91 $4.89 $22.80 Queen Each $17.91 $4.89 $22.80 King Each $17.91 $4.89 $22.80 ADDITIONAL INFORMATION ALL CUSTOMERS: 1. Customers requesting Temporary Bins or Roll-off Box Service can call the office for current rates 2. Polystyrene (Styrofoam, Plastic #6) is not collected for recycling and should be thrown away as trash. Please bag Styrofoam packing peanuts before placing in trash container. 3. It is encouraged to bag your trash in the garbage container but do not bag your recyclables or green waste in their respective containers and keep it loose. 4. Recycling, Greenwaste/Organics and Garbage containers should spaced 3 feet apart away from any obstacles (i.e mailboxes, cars, etc) before 6:00am on collection service day. 5. The fee schedule above only includes the Garbage Company rates and does not include IWMA fees, which are separately noted on the billings. 6. Late Fees are imposed for residential customers over 30 days delinquent. The fee is 1.5% per month of the outstanding charge, with a minimum fee of $5.00. No prior notice is required, as this late fee policy is stated at the bottom of every bill. 7. Customers can be responsible for contamination fees Any additional recycling, including greenwaste/organic services are charged out at 50% of the garbage rate. Page 142 of 673 ATTACHMENT 1 SOUTH COUNTY SANITARY SERVICE RATE INCREASE EFFECTIVE JUNE 15, 2022 CITY OF ARROYO GRANDE Service Description Pickups Per Week Current Monthly Rate Effective 1/1/2021 Proposed Rate Adjustment Proposed Monthly Rate Effective 6/15/2022 APARTMENTS, TRIPLEX, DUPLEX Rates are the same as commercial rates (below). COMMERCIAL DUMPSTERS - ALL AREAS: 1 yd dumpster 1 $96.13 $26.26 $122.39 1 yd dumpster 2 $140.24 $38.31 $178.55 1 yd dumpster 3 $184.40 $50.37 $234.77 1 yd dumpster 4 $236.32 $64.55 $300.87 1 yd dumpster 5 $277.84 $75.89 $353.73 1 yd dumpster 6 $329.80 $90.09 $419.89 1 yd dumpster 7 $400.86 $109.50 $510.36 1.5 yd dumpster 1 $109.10 $29.80 $138.90 1.5 yd dumpster 2 $168.81 $46.11 $214.92 1.5 yd dumpster 3 $238.96 $65.27 $304.23 1.5 yd dumpster 4 $311.63 $85.12 $396.75 1.5 yd dumpster 5 $379.18 $103.58 $482.76 1.5 yd dumpster 6 $428.52 $117.05 $545.57 1.5 yd dumpster 7 $501.77 $137.06 $638.83 2 yd dumpster 1 $122.10 $33.35 $155.45 2 yd dumpster 2 $205.17 $56.04 $261.21 2 yd dumpster 3 $290.89 $79.46 $370.35 2 yd dumpster 4 $384.34 $104.99 $489.33 2 yd dumpster 5 $475.25 $129.82 $605.07 2 yd dumpster 6 $532.40 $145.43 $677.83 2 yd dumpster 7 $619.02 $169.09 $788.11 3 yd dumpster 1 $145.41 $39.72 $185.13 3 yd dumpster 2 $275.28 $75.19 $350.47 3 yd dumpster 3 $384.34 $104.99 $489.33 3 yd dumpster 4 $501.19 $136.90 $638.09 3 yd dumpster 5 $594.70 $162.45 $757.15 3 yd dumpster 6 $708.98 $193.66 $902.64 3 yd dumpster 7 $905.52 $247.35 $1,152.87 4 yd dumpster 1 $181.81 $49.66 $231.47 4 yd dumpster 2 $322.02 $87.96 $409.98 4 yd dumpster 3 $462.25 $126.27 $588.52 4 yd dumpster 4 $594.70 $162.45 $757.15 4 yd dumpster 5 $734.95 $200.76 $935.71 4 yd dumpster 6 $872.60 $238.36 $1,110.96 4 yd dumpster 7 $1,111.28 $303.55 $1,414.83 6 yd dumpster 1 $272.72 $74.50 $347.22 6 yd dumpster 2 $483.05 $131.95 $615.00 6 yd dumpster 3 $693.36 $189.40 $882.76 6 yd dumpster 4 $892.08 $243.68 $1,135.76 6 yd dumpster 5 $1,102.41 $301.13 $1,403.54 Page 143 of 673 ATTACHMENT 1 6 yd dumpster 6 $1,308.92 $357.54 $1,666.46 6 yd dumpster 7 $1,666.92 $455.33 $2,122.25 8 yd dumpster 1 $363.61 $99.32 $462.93 8 yd dumpster 2 $644.05 $175.93 $819.98 8 yd dumpster 3 $924.49 $252.53 $1,177.02 8 yd dumpster 4 $1,189.43 $324.90 $1,514.33 8 yd dumpster 5 $1,469.91 $401.52 $1,871.43 8 yd dumpster 6 $1,745.22 $476.72 $2,221.94 8 yd dumpster 7 $2,222.57 $607.11 $2,829.68 The rates shown above include the monthly container rental fee and a semi-annual dumpster cleaning. COMMERCIAL GARBAGE CANS - ALL AREAS: 32 Gallon Waste Wheeler 1 $23.37 $6.38 $29.75 32 Gallon Waste Wheeler 2 $49.34 $13.48 $62.82 32 Gallon Waste Wheeler 3 $57.15 $15.61 $72.76 32 Gallon Waste Wheeler 4 $72.69 $19.86 $92.55 64 Gallon Waste Wheeler 1 $49.34 $13.48 $62.82 64 Gallon Waste Wheeler 2 $65.57 $17.91 $83.48 64 Gallon Waste Wheeler 7 $195.92 $53.52 $249.44 96 Gallon Waste Wheeler 1 $57.15 $15.61 $72.76 96 Gallon Waste Wheeler 2 $96.13 $26.26 $122.39 96 Gallon Waste Wheeler 3 $121.02 $33.06 $154.08 96 Gallon Waste Wheeler 4 $146.21 $39.94 $186.15 96 Gallon Waste Wheeler 5 $164.63 $44.97 $209.60 96 Gallon Waste Wheeler 7 $224.61 $61.35 $285.96 COMMERCIAL - OTHER CHARGES: Rates for all commercial customers include recycling or greenwaste/organics pickup once per week, included with the garbage service rate. Customers can choose from a 64 or 96 gallon blue commingled recycle waste wheeler or a 32 or 64 gallon organics waste wheeler included with the garbage service rate (96 gallon waste wheelers can only be used with green waste due to weight). If you need a bin for recycling there is a charge (see below). If you need more frequent recycling, including organics/greenwaste service, it can be provided at a 50% discount from the garbage service rates for the specified level of service required. MISCELLANEOUS CHARGES - ALL CUSTOMERS: Overstacked Garbage & extra bags Minimum/unit each $5.51 $1.51 $7.02 Overstacked Greenwaste & extra bags Minimum/unit each $2.77 $0.76 $3.53 Overstacked Blue Bin & extra bags Minimum/unit each $2.91 $0.79 $3.70 Xtra Recycle 32, 64, or 96 waste wheelers per month $1.55 $0.42 $1.97 In yard service (per can or commodity) IN ADDITION TO STANDARD GARBAGE RATES per month $13.76 $3.76 $17.52 Monthly charge for additional 96-gallon green waste service per month $3.80 $1.04 $4.84 Extended Vacation Service per month $12.82 $3.50 $16.32 Vacant Rate per month $15.79 $4.31 $20.10 Waste wheeler cleaning each time $20.52 $5.61 $26.13 Trip charge each time $13.76 $3.76 $17.52 Non-payment downsize service each time $13.76 $3.76 $17.52 Page 144 of 673 Non-payment redeliver waste wheeler each time $13.76 $3.76 $17.52 Non-payment reconnect service each time $33.07 $9.03 $42.10 Small item pickup (TV, toilet) each $32.27 $8.81 $41.08 Appliance pickup-residential each $45.51 $12.43 $57.94 Lock Charge $7.66 $2.09 $9.75 Garbage extras on your scheduled pickup day per yard $11.62 $3.17 $14.79 Garbage extras -NOT ON YOUR SCHEDULED PICKUP DAY per yard $31.25 $8.54 $39.79 Commercial Waste Wheeler rent per month $4.26 $1.16 $5.42 Re-deliver bin on stopped acct each time $39.44 $10.77 $50.21 Large Compactor (> 4 yards) per yard $16.90 $4.62 $21.52 Small Compactors (4 yards & below) assume 3 to 1 compaction 3 times the garbage rate Sunday Service (in additional to garbage service level) per month $68.87 $18.81 $87.68 Recycle bin rental per month $7.66 $2.09 $9.75 Stand by time per hour $66.28 $18.10 $84.38 Extra bin cleaning $61.55 $16.81 $78.36 Larger than residential appliance by quote only Damage/Destruction of bins or waste wheelers by quote only Short Term Dumpsters: Delivery & Pickup-Bin $39.46 $10.78 $50.24 Delivery & Pickup-Waste Wheeler $13.76 $3.76 $17.52 Rental Per Day $2.92 $0.80 $3.72 Empties Per Yard $31.25 $8.54 $39.79 Mattress: Twin Each $17.91 $4.89 $22.80 Double Each $17.91 $4.89 $22.80 Queen Each $17.91 $4.89 $22.80 King Each $17.91 $4.89 $22.80 ADDITIONAL INFORMATION ALL CUSTOMERS: Page 145 of 673 RESOLUTION NO. PAGE 9 1. Customers requesting Temporary Bins or Roll-off Box Service can call the office for current rates 2. Polystyrene (Styrofoam, Plastic #6) is not collected for recycling and should be thrown away as trash. Please bag Styrofoam packing peanuts before placing in trash container. 3. It is encouraged to bag your trash in the garbage container but do not bag your recyclables or green waste in their respective containers and keep it loose. 4. Recycling, Greenwaste/Organics and Garbage containers should spaced 3 feet apart away from any obstacles (i.e mailboxes, cars, etc) before 6:00am on collection service day. 5. The fee schedule above only includes the Garbage Company rates and does not include IWMA fees, which are separately noted on the billings. 6. Late Fees are imposed for residential customers over 30 days delinquent. The fee is 1.5% per month of the outstanding charge, with a minimum fee of $5.00. No prior notice is required, as this late fee policy is stated at the bottom 7. Customers can be responsible for contamination fees Any additional recycling, including greenwaste/organic services are charged out at 50% of the garbage rate. Page 146 of 673 South County Sanitary Service SOLID WASTE RATE REVIEW For the Communities of Arroyo Grande Grover Beach Oceano Pismo Beach March 2022 ATTACHMENT 2 Page 147 of 673 South County Sanitary Service Solid Waste Rate Review March 2022 TABLE OF CONTENTS Report Purpose 1 Summary of Findings and Recommendations 1 Findings 2 Rate Recommendations 4 Rate Summary for Single Family Residential Customers 4 Background 4 Rate Review Workscope 6 Revenue and Rate-Setting Objectives 7 Financial Overview 7 Costs by Type 7 Revenues by Source 7 Service Accounts by Type 8 Rate-Setting Process 8 Base Year and Interim Year Reviews 8 Rate Increase History 9 Rate-Setting Methodology 10 Are the Costs Reasonable? 10 Detailed Cost Review 10 Trends in External Cost Drivers 14 Rates in Comparable Communities 14 What Is a Reasonable Return on These Costs? 16 Preparing the Rate Request Application 17 Proposed Rate Summary 17 Implementation 17 Rate Differences Between Communities 18 Cost Accounting Issues 18 Cost of Living Tigger Option 20 Coordination with Other Agencies 22 Summary 22 APPENDIX A. Base Year Rate Request Application from South County Sanitary Service B. HZI Greenwaste Digester Cost Analysis Page 148 of 673 - 1 - South County Sanitary Service SOLID WASTE RATE REVIEW For the Communities of Arroyo Grande, Grover Beach, Oceano and Pismo Beach REPORT PURPOSE On October 20, 2021, South County Sanitary Service (SCSS) submitted a Base Year rate increase application to be effective January 1, 2022 to the Cities of Arroyo Grande, Grover Beach and Pismo Beach and the Oceano Community Services District (CSD). However, due to complexity, concerns with pending rate increases by the Integrated Waste Management Authority (IWMA) and significant subsequent reviews and information exchanges, a revised application was submitted on February 18, 2022. The final application is the focus of this report in reviewing the SCSS rate increase request in accordance with adopted Franchise Agreement provisions regarding rate increase applications and to make rate recommendations to these four agencies as appropriate. SUMMARY OF FINDINGS AND RECOMMENDATIONS In its final application, SCSS is requesting a rate increase of 22.19% in the cities of Cities of Arroyo Grande, Grover Beach and Pismo Beach; and 21.03% for the Oceano CSD (the difference is due to a 5% franchise fee rate in the Oceano CSD versus 10% in the other agencies). This compares with an initial rate request of 24.65% for three agencies (and 23.35% in the Oceano CSD). As discussed in greater detail below, all of the concerns that surfaced in the iterations and further analysis that followed in addressing issues with proposed costs for 2022 have been resolved. There are two key differences between the initial and revised application: 124 Cerro Romauldo Avenue San Luis Obispo, CA 93405 805.544.5838 ◼ Cell: 805.459.6326 bstatler@pacbell.net www.bstatler.com William C. Statler Fiscal Policy ◼ Financial Planning ◼ Analysis ◼ Training ◼ Organizational Review . . . . . . . . . Joint Agency Review SCSS provides similar services to each of these agencies under formally approved franchise agreements that regulate rates and establish procedures for considering rate increases. Because the financial information for SCSS is closely related for these four agencies, this report jointly reviews rate requests and provides recommendations for each of them. Page 149 of 673 Solid Waste Rate Review - 2 - • Greenwaste processing costs have been reclassified as “pass-through” costs: while costs may be recovered, no profit is allowed on them. • IWMA fees have been excluded from the fee analysis. These are approved by a separate agency and will be charged separately on customer bills. Key cost drivers in this review include the following, which account for almost 90% of the cost increases since 2020 (last audited financial statements): Findings • Complete Application. With its revised application, SCSS has fully provided the supporting documentation required for rate requests under the Franchise Agreements in Arroyo Grande, Oceano, Pismo Beach and Grover Beach. The revised application (Appendix A) has been correctly prepared. • High Level of Service at a Reasonable Cost. SCSS provides a broad level of high-quality services to these four agencies—including garbage, recycling and green waste collection and disposal as well as hauler-provided “waste wheeler” containers for all three services—at very competitive rates compared with many other communities. In fact, even with the recommended rate increase, rates in these four agencies will be among the lowest of those surveyed. In short, South County communities have the best of both worlds: high quality services at a low cost (compared with other communities). • “Trigger Option.” As discussed in greater detail below, the rate increase exceeds the cost of living threshold that “triggers” the option of terminating the Franchise Agreements within nine months after rate approval. • Need for Updated Rate-Setting Methodology. The rate-setting process is based on the City of San Luis Obispo’s Rate Setting Process and Methodology Manual for Integrated Solid Waste Management Rates (Rate Manual) adopted in 1994. In short, with very minor modifications, this approach has been in place for almost 30 years. Because of several complex issues that surfaced in the 2019 rate review that had not been encountered in the past in using this rate-setting methodology (most notably corporate overhead, greenwaste and materials recovery facility (MRF) costs as well as rate structure concerns), I recommended updating the Rate Manual before the next Base Year review. This has not occurred, and accordingly, this review is based on the current methodology. 2022 Cost Increase from 2020 Amount % of Total Rate Impact* Depreciation 998,708 36%8.05% Greenwaste 956,783 35%7.71% Insurance 298,612 11%2.41% Gas and Oil 131,422 5%1.06% Total Key Drivers 2,385,525 87%19.23% Other Costs 367,275 13%2.96% Total $2,752,800 100%22.19% Page 150 of 673 Solid Waste Rate Review - 3 - However, the need for an update is even greater now: along with the 2019 concerns, new issues have surfaced in this review. As discussed in greater detail below, these include depreciation amortization period, interim rate reviews, cost allocation methodologies, accounting for disposal costs, timeframe for submitting and reviewing applications and trigger option. • Delayed Rate Implementation. In the past, there has been no consideration of delayed rate implementation. However, the Rate Manual does provide for this if there is a delay of more than 120 days after application if it is “no fault of the franchise hauler.” Given the initial October 20, 2021 submittal date, this would indicate rate approval by March 1. However, there are three factors that mitigate this 120-day period: 1. When the 120-day period was set, the understanding at the time was that Proposition 218 45-day notice and protest requirements did not apply to approval of private company solid waste rates. However, since then many agencies have determined that these provisions are applicable to approval of rates by companies like SCSS. This alone conceptually adds 45 days to the review process. 2. Review was delayed pending consideration of rate increases by the IWMA and their possible impact on SCSS rates. These new rates were not adopted by the IWMA until March 9, 2022. Moreover, it was subsequently determined that since these rates are set by the IWMA – and not the franchising agencies – that they did not affect agency rate-setting. (As noted above, this resulted in a revised application from SCSS on February 18, 2022). 3. While SCSS has been very responsive in following-up on requests for supporting data, the scope and complexity of the 2022 application has been significantly greater, and subsequently taken longer, than envisioned in the Rate Manual. In accounting for these factors, I recommend that delayed rate implementation apply for any rates with a May 1, 2022 effective date. In short, while these delays were “no fault” of SCSS, they were not the fault of the agencies, either. That said, SCSS believes the delayed rate implementation start period should be March 1, 2022. Where delayed rate implementation is applicable, the following temporary rate increases would be required depending on whether the delayed rate implementation start period is March 1 or May 1. (Note: The added rate increase goes up for each month of delay to be recovered while the amortization period is shortened.) Under either start date, rates would be reset in January 2023 to the “core rate” for the Interim Year adjustment. About Proposition 218 Notices Not all agencies prepare and issue “Proposition 218” notices for private sector solid waste rate increases. However, for those that do, the notice sets the maximum amount that rates can be increased at the public hearing: rates can be approved at lesser amounts without re-noticing. However, agencies cannot adopt higher rates – even if they only apply to a few customers – without another 45-day re-noticing. As such, it is recommended that the notices reflect the rates requested by SCSS. Page 151 of 673 Solid Waste Rate Review - 4 - Temporary Delayed Implementation Rate Increase* It should be noted that while the report recommends a May 1 start date for delayed rate implementation, a reasonable case could be made for an even later start date (such as June 1 or July 1) based on the mitigation factors discussed above. Lastly, several of these review timeframe factors are not unique to the 2022 review. Accordingly, the application submittal and review schedule should be considered in the Rate Manual update. Rate Recommendations It is recommended that cities of Arroyo Grande, Grover Beach and Pismo Beach adopt rate increases of 22.19%; and 21.03% in the Oceano CSD. As discussed below, this rate increase significantly exceeds the cost of living threshold that triggers the option of terminating the Franchise Agreements within nine months after rate approval. However, it is important to note that this “trigger” calculation does not limit the allowable rate increase that SCSS may request (or limit the amount that agencies may approve) under the methodology set forth in the Franchise Agreements. Cost of Living “Trigger” Option. Along with establishing the rate review methodology, Section 8.3 of the Franchise Agreements provides that if the rate increase request compared with the rate in effect at the date of the agreement exceeds the cumulative cost of living increase from that same date, each agency has the option of terminating the agreement at any time within nine months following approval of the requested rate increase (assuming it was submitted in accordance with the rate-setting methodology). This provision was subsequently amended in 2016 allowing for an added increase based on landfill rate increases (“weighted” for their proportion of total costs). It is important to note that other than a waiver for greenwaste cost increases in 2011, no other adjustments (including other pass-through costs) are allowed under the Franchise Agreements. As detailed later in this report, the calculated threshold limit is significantly less than the proposed rate increase. Effective Date March 1 May 1 March 1 May 1 May 1 5.26%0.00%5.55%0.00% June 1 9.01%2.63%9.51%3.17% July 1 14.02%7.01%14.80%7.40% August 1 21.03%12.62%22.19%13.32% September 1 31.55%21.03%33.29%22.19% * Ends December 31, 2022 Start Period Oceano CSD Other Agencies Page 152 of 673 Solid Waste Rate Review - 5 - Rate Summary for Single Family Residential Customers Table 1 summarizes the proposed monthly rates for single family residential (SFR) customers. As reflected in this summary, given the significant cost drivers facing SCSS, the increases will be modest under the proposed rate increase. For example, for collection of a 32-gallon garbage container (the most common SFR service level) as well as separate waste wheelers for recycling and green waste, the proposed monthly rate will increase by about $3.80 on average for the four agencies. BACKGROUND On October 20, 2021, SCSS submitted a Base Year rate increase to be effective January 1, 2022. As noted above, due to several complex issues, a revised application was submitted on February 18, 2022. This application was prepared in accordance with the rate review process and methodology formally set forth in its Franchise Agreements with Arroyo Grande, Grover Beach, Oceano and Pismo Beach. In establishing a rate-setting process and methodology, each of these Franchise Agreements specifically reference the City of San Luis Obispo’s Rate Setting Process and Methodology Manual for Integrated Solid Waste Management Rates. This comprehensive approach to rate reviews was adopted by San Luis Obispo in 1994 and establishes detailed procedures for requesting rate increases and the required supporting documentation to do so. It also sets cost accounting standards and allowable operating profit ratios. As noted above, the financial information for Arroyo Grande, Grover Beach, Oceano and Pismo Beach is closely related. For this reason, these four agencies jointly contracted with William C. Statler (who has extensive experience in evaluating rate requests in accordance with the adopted methodology) on October 6, 2022 to evaluate SCSS’s rate increase application. This is the seventh Base Year analysis performed under this rate-setting methodology. The first was prepared in September 2001; second in August 2004; the third in August 2007; the fourth in December 2012; September 2015; and the last one in April 2019. As discussed below, several Interim Year rate reviews have prepared since then. Table 1. Single Family Residential Rates 32 64 96 Current Arroyo Grande $19.46 $25.29 $31.13 Grover Beach 17.65 23.85 30.03 Oceano 14.98 21.56 42.19 Pismo Beach 17.31 34.63 51.94 Proposed Arroyo Grande 23.78 30.90 38.04 Grover Beach 21.57 29.14 36.69 Oceano 18.13 26.09 51.06 Pismo Beach 21.15 42.32 63.47 Increase: Proposed Rates Arroyo Grande 4.32 5.61 6.91 Grover Beach 3.92 5.29 6.66 Oceano 3.15 4.53 8.87 Pismo Beach 3.84 7.69 11.53 Container Size (Gallons) Page 153 of 673 Solid Waste Rate Review - 6 - Franchise Agreement Summary Historically, each agency has had its own approach to determining service levels and adopted differing Franchise Agreements accordingly. While these became similar beginning in 1999, in 2008 the Cities of Arroyo Grande, Grover Beach and Pismo Beach adopted renewed franchise agreements, followed by the Oceano Community Service District in Summer 2010, which are the same in all key provisions: • Each agency contracts with SCSS for garbage, green/food waste and recycling; and SCSS provides the container (waste wheelers) for each service. • As noted above, each agency has adopted the same rate-setting methodology, including the option of terminating the agreement within nine months following approval of the requested rate increase if it exceeds the cost of living threshold. • Arroyo Grande, Grover Beach and Pismo Beach have adopted franchise fees of 10%; the Oceano CSD reduced its rate to 5% in February 2020. Each of these agreements were similarly amended in 2016 to: • Extend the term of the agreement for 20 years in recognizing the amortization of extensive investments in food and green waste processing. • Revise the cost of living threshold “trigger” to include prorated landfill cost increases. RATE REVIEW WORKSCOPE This report addresses four basic questions: • Should SCSS be granted a rate increase? And if so, how much? • How much does it cost to provide required service levels? • Are these costs reasonable? • And if so, what is a reasonable level of return on these costs? The following documents were closely reviewed in answering these questions: • Franchise Agreements and any Amendments for each agency • Independently audited financial statements for SCSS for 2019 and 2020. • City of San Luis Obispo’s Rate Setting Process and Methodology Manual for Integrated Solid Waste Management Rates (Rate Manual) • SCSS rate increase application and supporting documentation • Follow-up interviews, correspondence and briefings with agency and SCSS staff • Rate surveys of Central Coast communities Table 2. Franchise Agreement Effective Dates Agency Agreement Amendments Arroyo Grande June 10, 2008 March 22, 2016 July 26, 2016 Grover Beach July 7, 2008 June 20, 2016 Oceano July 14, 2010 July 29, 2016 Pismo Beach June 3, 2008 August 3, 2016 Page 154 of 673 Solid Waste Rate Review - 7 - REVENUE AND RATE SETTING OBJECTIVES In considering SCSS’s rate increase request, it is important to note the revenue and rate setting objectives for solid waste services as set forth in the Franchise Agreements via the Rate Manual. Revenues. These should be set at levels that: • Are fair to customers and the hauler. • Are justifiable and supportable. • Ensure revenue adequacy. • Provide for ongoing review and rate stability. • Are clear and straightforward for the agency and hauler to administer. Rate Structure. Almost any rate structure can meet the revenue principles outlined above and generate the same amount of total revenue. Moreover, almost all rate structures will result in similar costs for the average customer: what different rate structures tell us is how costs will be distributed among non-average customers. The following summarizes adopted rate structure principles for solid waste services: • Promote source reduction, maximum diversion and recycling. • Provide equity and fairness within classes of customers (similar customers should be treated similarly). • Be environmentally sound. • Be easy for customers to understand. FINANCIAL OVERVIEW While detailed financial and service information is provided in the SCSS rate request application (Appendix A), the following summarizes costs, revenues and account information based its proposal for 2022 for all areas serviced by SCSS. Costs by Type. Total proposed costs for 2022 (after deducting for non-allowable and limited costs as discussed later in this report) are 17.3 million. As reflected in Table 3, five cost areas accounted for 85% of total costs: • Direct labor for collection: 23% • Disposal: landfill, recycling and greenwaste: 27% • Vehicle operations and maintenance (including depreciation): 19% • Franchise fees: 8% • Insurance: 8% Page 155 of 673 Solid Waste Rate Review - 8 - Revenues by Source. Total revenues (without proposed rate increases) are $15.2 million. As reflected in Table 4, 58% of SCSS’s revenues come from single-family residential (SFR) accounts. Services to multi-family residential and non-residential customers account for 42% of their revenues, with less than 1% from other revenues. This significant gap between revenues and expenses (plus allowable profit) drives the proposed rate increase. Service Accounts by Type. While single-family residences account for 58% of revenues, they represent 92% of total accounts (Table 5). This reflects the fact that per account, multi-family and non-residential customers generate more solid waste than single-family residential customers (and thus more revenue per account). RATE-SETTING PROCESS Under the Rate Manual, the rate-setting process follows a three-year cycle: • Base Year. The first year of the cycle—the Base Year—requires a comprehensive, detailed analysis of revenues, expenses and operating data. This information is evaluated in the context of agreed upon factors in the franchise agreements in determining fair and reasonable rates. As noted above, the last Base Year analysis for SCSS under this approach was prepared in April 2019. • Two Interim Years. In both the second and third years, SCSS is eligible for Interim Year rate adjustments that address three key change factors: changes in the consumer price index (CPI- U) for “controllable” operating costs; changes in “pass-through costs” (primarily landfill tipping fees, which SCSS does not control: they are set by the County Board of Supervisors); and an adjustment to cover increased franchise fees. The first two adjustment factors are “weighted” by the proportionate share that these costs Page 156 of 673 Solid Waste Rate Review - 9 - represent of total costs (excluding franchise fees). For example, in the current Base Year analysis for recommended 2019 rates, controllable costs account for about 75% of total costs, with landfill disposal costs accounting for about 25%. The rate review for the two Interim Years requires less information and preparation time than the Base Year review, while still providing fair and reasonable rate adjustments. Rate Increase History The following summarizes the SCSS rate review history beginning with 2005 (last eighteen years) based on the year of the application (which is typically the implementation year). Table 6. SFR Rate History: 2005 to 2022 (Last 18 Years) 1. From 2004 to 2011, the franchise fee rate in Pismo Beach was 6% compared with 10% in the other three agencies, and as such, its rate increase was slightly less. In July 2011, Pismo Beach adopted a Year Review Type Arroyo Grande Grover Beach Oceano Pismo Beach (1) 2005 Base Year 5.60%5.60%5.60%5.30% 2006 Interim Year 3.09%3.09%3.09%2.95% 2007 Interim Year 3.76%3.76%3.76%3.60% 2008 Base Year 3.00%3.00%3.00%2.90% 2009 Interim Year 0.00%0.00%0.00%0.00% 2010 Interim Year (2) 0.00%0.00%0.00%0.00% 2011 Interim Year 0.00%0.00%0.00%0.00% 2012 Interim Year (2) 5.15%5.15%5.15%5.15% 2013 Base Year 3.20%3.20%3.20%3.20% 2014 Interim Year 2.05%2.05%2.05%2.05% 2015 Interim Year 0.00%0.00%0.00%0.00% 2016 Base Year 3.25%3.25%3.25%3.25% 2017 Interim Year 1.10%1.10%1.10%1.10% 2018 Interim Year 1.60%1.60%1.60%1.60% 2019 Base Year 10.06%10.06%10.06%10.06% 2020 Interim Year 1.70%1.70%1.70%1.70% 2020 Franchise Fee Rdctn (3) -5.00% 2021 Interim Year 0.70%0.70%0.70%0.70% 2022 Base Year (4) 22.19%22.19%21.03%22.19% Proposed Interim Year Rates Consistent with past practice, SCSS has proposed an interim year approach that is slightly different from the Rate Manual methodology. In the interest of a more straightforward, streamlined process, SCSS proposes simply adjusting rates by changes in the CPI-U in 2023 and 2024. As noted in the past, the concept is consistent with the Rate Manual approach, but is simpler and allows for multi-year rate setting. Accordingly, it is recommended that four agencies continue using this approach. Given the that interim review methodology set forth in the Rate Manual has not been used for several years, this is another area the update should consider. Page 157 of 673 Solid Waste Rate Review - 10 - 10% franchise fee, bringing it in alignment with the other three agencies (as well as most other agencies in San Luis Obispo County). In implementing the 10% rate in 2011, Pismo Beach adopted an added 3.9% increase beyond the interim year rate increase of 5.15% requested by SCSS. 2. SCSS did not request a rate increase in 2010 (which would have been the “normal” cycle to do so), and accordingly, did not submit a Base Year rate application. However, SCSS did submit a rate request in 2011 using an Interim Year methodology. The reasonableness of using the resulting “hybrid” approach was discussed in detail in the 2011 Interim Year report, which concluded that this approach was reasonable given the circumstances. 3. In February 2020, the Oceano CSD reduced its franchise fee from 10% to 5%, reducing rates by 5%. 4. Proposed rate increase. 5. As noted above, this chart reflects SFR rate increases. SCSS began charging for commercial recycle containers. These rates were set at 50% of the garbage rates at that time. Assuming the proposed rate increases are approved, this will result in an average annual rate increase of 3.6% over the last eighteen years. While there have been notable peaks in 2019 and 2022, largely due to regulatory and external market changes for recyclables, this reflects a high level of rate stability and price containment for SCSS customers. RATE SETTING METHODOLOGY Are the Costs Reasonable? The first step in the rate review process is to determine if costs are reasonable. There are three analytical techniques that can be used in assessing this: • Detailed review of costs and service responsibilities over time. • Evaluation of external cost factors, such as general increases in the cost of living (as measured by the consumer price index). • Comparisons of rates with other communities. Each of these was considered in preparing this report, summarized as follows. Detailed Cost Review In its rate application (Appendix A), SCSS provides detailed financial data for five years: • Audited results for the two prior years (2019 and 2020). • Estimated results for 2021. • Projected costs for the Base Year (2022). • Estimated costs for the following year (2023). Page 158 of 673 Solid Waste Rate Review - 11 - Additionally, for virtually all line items, SCSS provided supplemental detail upon request to support cost increases from 2020 to 2022. Table 7 below provides actual costs for 2020 (most recent audit results) compared with requested and recommended cost projections for 2022. While there are significant cost increases in several categories, they are reasonable given the cost drivers facing SCSS. The Short Story. The key drivers behind the proposed rate increases for 2022 can be summarized by four cost factors over the past two years: • Truck depreciation. • Food and green waste recycling. • Insurance • Gas and oil All other cost increases including labor, ongoing maintenance, disposal costs at the landfill and MRF, account for less than 3% of the rate increase. Table 7. Detail Cost Review: 2020 Compared with 2022 2020 Actual Amount Change Direct Labor 3,614,140 3,922,681 308,541 Administrative Costs Corporate Overhead 356,299 378,184 21,885 Office Salaries 768,706 835,736 67,030 Other Expenses - Depreciation 535,997 1,534,705 998,708 Gas and Oil 821,425 952,847 131,422 Insurance Medical 674,318 779,174 104,856 General Liability 388,530 582,286 193,756 Office Expense 229,923 268,409 38,486 Operating Supplies 83,727 77,820 (5,907) Outside Services 270,687 211,251 (59,436) Permits 67,486 97,290 29,804 Tires 127,834 151,673 23,839 Truck Repairs 642,080 606,106 (35,974) Other Costs 323,681 353,209 29,528 Total Allowable Costs 8,904,833 10,751,371 1,846,538 Pass-Through Costs Disposal Costs Landfill 1,701,768 1,805,407 103,639 MRF 1,223,081 1,143,280 (79,801) Greenwaste 824,872 1,781,655 956,783 Franchise Fees 1,629,121 1,454,123 (174,998) Facility Rent, Related Party 170,111 181,814 11,703 Interest, Related Party 133,282 213,214 79,932 Transportation, Related Party 34,271 43,275 9,004 Total Pass-Through Costs 5,716,506 6,622,768 906,262 Total Costs $14,621,339 $17,374,139 $2,752,800 2022 Proposed Page 159 of 673 Solid Waste Rate Review - 12 - These costs are organized by costs where SCSS is allowed a profit (“Allowable”) and those where it can recover the cost but not earn a profit on them (“Pass-Through”). The following describes the basis for each for the significant changes. Allowable Costs • Direct Labor. This reflects a two-year increase of 8.5%, or about 4.2% per year. Given the tight labor market and current increases in CPI, this increase for retention and attraction is reasonable. • Office Salaries. This also reflect annual increases of about 4% per year. Again, given the tight labor market and current increases in CPI, this increase for retention and attraction is reasonable. • Depreciation. The 2019 Base Year report noted that as fully depreciated trucks were replaced, significant continuing higher depreciation costs were expected in the future due to two factors: annual depreciation costs on fully depreciated trucks would go from zero to about $60,000 each; and the cost basis for new trucks would be significantly higher than in the past. Given replacements during 2021 and those proposed in 2022, the increased cost is reasonable. Combined with a possible change in amortization schedule as noted in the sidebar, planned replacements should result in stabilized costs in the future. • Gas and Oil. These costs are projected to increase by about 7.5% annually. Given the volatility (both up and down) of diesel and CNG costs (especially recent cost spikes), this is a reasonable assumption for 2022 costs. • Insurance: Health Care and Liability. These costs are projected to increase significantly by about 12.5% annually (7.5% for health care and 22.5% for liability insurance). Given increases in health care costs and current liability insurance market, these are reasonable assumptions for 2022 costs. • All Other Allowable Costs. While there are ups and downs in the other individual line items, in total these reflect modest annual increases of about 2%. Pass-Through Costs • Disposal Costs: Landfill. No rate increases are reflected in the rate application ($41.00 per ton). The modest two-year increase reflects increased tonnage. Truck Amortization The Rate Manual calls for depreciating trucks over seven years. While this made sense in 1994, manufacturing improvements since then have resulted in longer lives, with ten years becoming the industry standard. As noted above, this change should be considered as part of the Rate Manual update. Page 160 of 673 Solid Waste Rate Review - 13 - • Disposal Costs: Recycling (Related Party). This cost category reflects a decrease in the tonnage rate from $96.00 to $84.59. • Disposal Costs: Greenwaste. After depreciation, this is the largest cost increase from 2020. These costs are incurred under an on-site agreement with HZI and reflect costs to build (via depreciation), operate and maintain the anaerobic digestion plant. The purpose of this plant is to process local food and greenwaste in meeting California regulation SB 1383. Key drivers include higher costs than initially projected for construction; ongoing operations and maintenance due to feedstock challenges; and local outbound material. The following further describes these challenges; and a cost summary is provided in Appendix B. Construction and startup The construction of the anaerobic digester plan in San Luis Obispo was one of the first high solids digesters in the United States and the 99th overall renewable gas anaerobic plant built globally by HZI. The construction of the anerobic digester in California posed unique challenges but was constructed safely and without any environmental incidents. Given the “first-of- the-kind” nature of the project in California, the actual cost to construct the anaerobic digestion plant exceeded the original budget originally set in 2014. The cost increases were mainly driven by labor availability, prevailing wage, civil and underground cost increases, and equipment and material escalations. Operation and maintenance. The anaerobic digestion plant exceeds 95% availability (uptime) to process waste while producing renewable green electricity. To ensure the plant is reliably available to process local community waste, the operations and maintenance cost of the anaerobic digestion exceeds the original annual budget due to several factors: 1. The quantity of entrained inorganic material (such as sand and metal) entrained in the waste increases the wear and tear on the mechanical components of the plant, which inherently increases the number of staff required to operate and maintain the facility. 2. The lower than anticipated quantity of food was also increases the wear and tear on the equipment, which has mainly been driven need to continue to educate the community on organics recycling and the impacts of COVID on commercial businesses (most notably restaurants). 3. Plant labor costs have increased due to the requirements of processing the waste, maintaining the equipment, competitive labor market and inflationary costs in San Luis Obispo County and more broadly in California. Plant administrative costs such as insurance, legal and taxes continue to increase greater than was historically budgeted. Local Benefits It should be noted that that while costs have increased, HZI and SCSS believe there are substantial local benefits to the greenwaste operation, including: • Powering over 600 homes with 6.2 million kWh per year of renewable electricity. • Diverting 72 million pounds of organics from landfills per year • Reducing greenhouse gas emissions by 5,300 metric tons per year. Page 161 of 673 Solid Waste Rate Review - 14 - In summary, key operation and maintenance cost increases reflect continual sand removal; increased equipment replacement and maintenance; increased labor hours and rates; and management of backend compost. Depreciation. Plant depreciation expenses reflect the higher construction costs discussed above in addressing waste profile challenges such as sand and low food waste content. Lower Natural Gas Production (Revenue). Due to the amount of inorganic material (like sand) and the lower than anticipated food waste content, the overall natural gas production is lower than planned. This directly limits the amount of overall natural gas production potential of the digester and ultimately electricity sales. In the past, greenwaste contract costs have been considered “allowable” costs. However, as disposal costs, they are more like landfill and recycling costs, which are treated as “pass- through” costs that can be recovered but profit is not allowed on them. Accordingly, this is considered a pass-through cost in this rate review. However, this another area that should be reviewed as part of the rate manual update. • Franchise Fees. This reflects the removal of IWMA fees from the cost base. • Interest (Related Party). Interest is an allowable cost under the Rate Manual. In this case, interest costs are assessed internally by Waste Connections based on a methodology that takes into account its corporate costs of borrowing and financed assets. Accordingly, this is treated as a “pass-through” cost. SCSS’s auditors have previously provided a written opinion on the reasonableness of the cost methodology; and I have reviewed the calculations underlying the projected costs in accordance with this methodology. Given the increase in financed assets as reflected in depreciation costs, I believe the projected interest costs for 2022 are reasonable. Trends in External Cost Drivers The most common external “benchmark” for evaluating cost trends is the consumer price index. Over the past two calendar years (2020 and 2021), the U.S. CPI-U increased by 8.5% (about 4.2% annually). Excluding the cost drivers discussed above, all other costs over the past two years increased by 4.1% (about 2% annually). Rates in Comparable Communities Lastly, reasonableness of rates (and underlying costs) can also be evaluated by comparing rates with comparable communities. However, survey results between “comparable” communities need to be carefully weighed because every community is different. Nonetheless, surveys are useful assessment tools—but they are not perfect and they should not drive rate increases. Typical reasons why solid waste rates may be different include: • Franchise fees and AB 939 fee surcharges • Landfill costs (tipping fees) Page 162 of 673 Solid Waste Rate Review - 15 - • Service levels (frequency, quality) • Labor market • Operator efficiency and effectiveness • Voluntary versus mandatory service • Direct services provided to the franchising agency at no cost, such as free trash container pick-up at city facilities, on streets and in parks • Percentage of non-residential customers, and how costs and rates are allocated between customer types • Revenue collection procedures: Does the hauler or the franchising agency bill for service? And what are the procedures for collecting delinquent accounts? • Services included in the base fee (recycling, green waste, containers, pick-up away from curb) • Different rates structures • Land use and density (lower densities will typically result in higher service costs) • Mix of residential and non-residential accounts With these caveats, the following summarizes single family residential rates for other cities in the Central Coast area compared with the proposed rates for SCSS. As reflected below, even with the recommended or proposed rate increases, Arroyo Grande, Grover Beach, Oceano and Pismo Beach will have among the lowest rates of the agencies surveyed. Table 8. Single Family Residential Rate Survey Single Family Residential Monthly Trash Rates 30-40 60-70 90-101 Atascadero $28.55 $44.50 $55.77 Morro Bay 22.88 45.76 68.64 Paso Robles 30.90 51.12 57.25 San Luis Obispo*22.51 45.03 67.56 Santa Maria na 30.69 34.81 San Miguel 28.23 44.48 61.06 Templeton 31.40 45.01 44.48 Proposed: South County Sanitation Service Area Arroyo Grande 23.78 30.90 38.04 Grover Beach 21.57 29.14 36.69 Oceano CSD 18.13 26.09 51.06 Pismo Beach 21.15 42.32 63.47 * Proposed 2022 rates scheduled for review in April 2022 Container Size (Gallons) Page 163 of 673 Solid Waste Rate Review - 16 - Summary: Are the costs reasonable? Based on the results of the three separate cost-review techniques—trend review, external factor analysis and rate comparisons—the proposed cost assumptions for 2022 are reasonable. What Is a Reasonable Return on these Costs? After assessing if costs are reasonable, the next step is to determine a reasonable rate of return on these costs. The rate-setting method formally adopted by Arroyo Grande, Grover Beach, Oceano and Pismo Beach in their Franchise Agreements with SCSS includes clear criteria for making this assessment. It begins by organizing costs into three main categories, which will be treated differently in determining a reasonable “operating profit ratio:” Allowable Costs (Operations and Maintenance): Reasonable Operating Profit Allowed • Direct collection labor • Fuel • Vehicle maintenance and repairs • Depreciation • Insurance • Billing and collection Pass-Through Costs: Can be Recovered but No Profit Allowed • Disposal costs (landfill, recycling, greenwaste) • Franchise fees • Payments to affiliated companies (such as facility rent, interest and trucking charges) Excluded and Limited Costs: No Revenues Allowed • Charitable and political contributions • Non-IRS approved profit-sharing plans • Entertainment • Fines and penalties • Income taxes • Limits on corporate overhead After organizing costs into these three categories, determining “operating profit ratios” and overall revenue requirements is straightforward: • The target is an 8% operating profit ratio on “allowable costs.” • Pass-through costs may be fully recovered through rates but no profit is allowed on these costs. • No revenues are allowed for any excluded or limited costs. In the case of SCSS, about 60% of their costs are subject to the 8% operating profit ratio; and 40% are pass-through costs that may be fully recovered from rates but no profit is allowed. No recovery is allowed for excluded costs. The overall operating profit ratio after allowable and pass-through costs is 5%. Page 164 of 673 Solid Waste Rate Review - 17 - Preparing the Rate Request Application Detailed “spreadsheet” templates for preparing the rate request application—including assembling the required information and making the needed calculations—are provided in the Rate Manual. SCSS has prepared their rate increase application in accordance with these requirements (Appendix A); and the financial information provided in the application for 2019 and 2020 ties to its audited financial statements. Proposed Rate Summary The following summarizes the calculations that support the requested and recommended rate increases: Table 9. Proposed Rate Increase Summary As reflected in this summary, all the rate-setting factors are the same for all four agencies are the same except for the franchise fee adjustment (which reflects that higher franchise fees will be required with the rate increase): 5% for the Oceano CSD and 10% for the other three agencies. Implementation The following summarizes key implementation concepts in the adopted rate-setting model: • The “8%” operating profit ratio is a target; in the interest of rate stability, adjustments are only made if the calculated operating profit ratio falls outside of 10% to 6%. • On the other hand, if past ratios have been stronger than this target, then the revenue base is re-set in the Base Year review. Oceano Others Allowable Costs 10,751,371 10,751,371 Allowable Profit (8% Operating Ratio)934,901 934,901 Pass-Through Costs Disposal Landfill 1,805,407 1,805,407 MRF (Recycling)1,143,280 1,143,280 Greenwaste 1,781,655 1,781,655 Franchise Fees 1,454,123 1,454,123 Related Party Costs 438,303 438,303 Total Pass-Through Costs 6,622,768 6,622,768 Allowed Revenue Requirements 18,309,041 18,309,041 Revenue without Rate Increase 15,260,678 15,260,678 Revenue Requirement: Shortfall (Surplus)3,048,363 3,048,363 Rate Base Revenue 18,309,041 18,309,041 Percent Change in Revenue Requirement 19.98%19.98% Allowed Revenue Increase *21.03%22.19% * Adjusted for 5% franchise fee in Oceano and 10% in others Page 165 of 673 Solid Waste Rate Review - 18 - • Special rate increases for extraordinary circumstances may be considered. The result of this process is a proposed rate increase of 22.19% (21.03% in the Oceano CSD). RATE DIFFERENCES BETWEEN COMMUNITIES If costs for Arroyo Grande, Grover Beach, Oceano and Pismo Beach are so similar, why are the residential rates so different? The short answer: history and different approaches to rate structure philosophies. History Until 1999, service levels under the Franchise Agreements with SCSS between these four agencies were significantly different. The rates in place at that time became the basis for subsequent rate reviews. Rate Structure Principles Most significantly, each agency has adopted different rate structure principles to recover similar costs. For example, Pismo Beach has adopted a rate structure for its residential customers that more closely reflects a “pay-as-you-throw” philosophy under which the “per gallon” costs for 32, 64 and 96 gallon containers are the same (for example, a 64-gallon container costs twice as much as a 32-gallon one.) This results in lower monthly costs for 32-gallon customers and relatively higher rates for 64 and 96-gallon customers. On the other hand, Arroyo Grande has adopted rates that do not have as much difference between container sizes (but still offer an incentive for smaller containers over larger ones), recognizing collection economies of scale for larger versus smaller containers. In this case, 32- gallon containers in Arroyo Grande are more expensive than in Pismo Beach, but 64-gallon containers are less. Both rate structures have their strong points: in the case of Pismo Beach, rates are more reflective of disposal costs, whereas in Arroyo Grande they are more reflective of collection costs. But the important point is that the revenue generating capability is the same even though the rates are different. Multi-Family and Non-Residential Rates Lastly, multi-family and non-residential rates (which account for about 40% of SCSS revenues) are similar in all four agencies: it is only in single family residential rates that there are significant differences between communities. COST ACCOUNTING ISSUES As noted above, SCSS’s financial operations for Arroyo Grande, Grover Beach, Oceano and Pismo Beach are closely related. Keeping costs and revenues segregated is further complicated Page 166 of 673 Solid Waste Rate Review - 19 - by the fact that SCSS is a subsidiary of Waste Connections US (which acquired the parent company in April 2002), which shares ownership with the following local companies: • San Luis Garbage Company • Mission Country Disposal • Morro Bay Garbage Service • Coastal Roll-Off Service • Cold Canyon Land Fill • Cold Canyon Processing Facility Additionally, within the South County, SCSS’s service area includes: • City of Arroyo Grande • City of Grover Beach • City of Pismo Beach • Oceano Community Services District • Nipomo Community Services District • Avila Beach Community Services District • Other unincorporated areas in the South County such as rural Arroyo Grande Cost Accounting System Audited financial statements are prepared for each company within Waste Connections’ central coast operations by an independent certified public accountant; and SCSS’s auditors have consistently issued “clean opinions” on its financial operations. However, only direct labor hours for collection (and related compensation), liability insurance, franchise fees and revenues are directly accounted for each company (like SCSS); and then within each agency serviced by it. As summarized below for major cost categories, all other costs are allocated between companies based on apportionments using generally accepted accounting principles: Table 10. Cost Allocation Bases Allocation Basis Major Cost Categories Customer counts • Region and division overhead • Office salaries • Office expense • Legal and accounting Direct labor hours • Truck depreciation • Truck repairs and tires • Mechanic labor • Gas and oil Tonnage Disposal costs • Landfill • MRF/recycling • Greenwaste Page 167 of 673 Solid Waste Rate Review - 20 - Revenue • Corporate overhead (adjusted for Rate Manual limitations) • Bad debt expense • Other taxes Containers • Container depreciation • Container labor • Container repairs Gallons • Diesel fuel These allocation bases seem reasonable. However, they are subject to periodic change as determined by Waste Connections. Since these apportionments are a key basis for rate setting, the bases of allocation for each cost category (including allocations of regional and district overhead and accounting for direct costs) should be established in an updated Rate Manual. COST OF LIVING “TRIGGER OPTION” As noted above, Section 8.3 of the Franchise Agreements provides that if the rate increase request compared with the rate in effect at the date of the agreement exceeds the cumulative cost of living increase from that same date, each agency has the option of terminating the agreement at any time within nine months following approval of the requested rate increase. While this provision does not directly limit rate increase requests by SCSS to an amount that may be less than that allowed under the rate-setting methodology, subjecting the Franchise Agreement to possible termination if the rate request is greater than the cost of living threshold provides a strong incentive for SCSS to do so, if possible. Calculation of the Cost of Living Threshold As recommended in the 2013 Interim Year rate review for consistency and clarity, the CPI-U rate increases used in calculating Interim Year increases and the “trigger” threshold are based on changes from June to June (given application submittal targets, this was the most recent date that would consistently be available). Along with the adjustment for the “weighted” greenwaste rate increase in 2012 of 1.7% previously approved, the 2016 Franchise Agreement amendments provided for adjustments to the threshold “trigger” of landfill rate increases, weighted by the ratio of landfill costs to total costs (assumed at 25% based on recent trends). • Table 11(a) provides the threshold calculation compared with actual rate increases and those recommended for 2022. • Table 11(b) provides landfill rates since 2008. As reflected in Table 11(a), the cumulative changes in the cost of living (with adjustments for greenwaste and landfill cost increases) is 34.87%. This compares with cumulative rate increases, including those recommended of 22.19% for 2022 (21.03% for Oceano CSD) of 61.76%. This would result in exceeding the “trigger” by 26.89%. Page 168 of 673 Solid Waste Rate Review - 21 - Table 11(a). Trigger Threshold Calculation Table 11(b). Landfill Rates Per Ton Increase Prorated @ Year Actual Amount Percent 25% 2008 29.25 - 0.00% 0.00% 2009 29.25 - 0.00% 0.00% 2010 29.25 - 0.00% 0.00% 2011 34.25 5.00 17.09% 4.27% 2012 34.25 - 0.00% 0.00% 2013 34.25 - 0.00% 0.00% 2014 36.50 2.25 6.57% 1.64% 2015 38.75 2.25 6.16% 1.54% 2016 41.00 2.25 5.81% 1.45% 2017 41.00 - 0.00% 0.00% 2018 41.00 - 0.00% 0.00% 2019 41.00 - 0.00% 0.00% 2020 41.00 - 0.00% 0.00% 2021 41.00 - 0.00% 0.00% 2022 41.00 - 0.00% 0.00% Note: Under long-term rate increases approved by the County, Cold Canyon Landfill was eligible for annual rate increases of $2.25 per ton from 2017 to 2022, with a resulting rate of $54.50 by 2022, However, it chose not to do so. Rate Rate June Index Amount Percent Greenwaste Landfill (1)Threshold Year Increase (2) 2009 215.693 2010 217.965 2.272 1.05%4.27%5.33%2011 0.00% 2011 225.722 7.757 3.56%1.70%0.00%5.26%2012 5.15% 2012 229.478 3.756 1.66%0.00%1.66%2013 3.20% 2013 233.504 4.026 1.75%1.64%3.40%2014 2.05% 2014 238.343 4.839 2.07%1.54%3.61%2015 0.00% 2015 238.638 0.295 0.12%1.45%1.58%2016 3.25% 2016 241.018 2.380 1.00%0.00%1.00%2017 1.10% 2017 244.955 3.937 1.61%0.00%1.61%2018 1.61% 2018 251.989 7.034 2.79%0.00%2.79%2019 10.06% 2019 256.143 4.154 1.62%0.00%1.62%2020 1.70% 2020 257.797 1.654 0.64%0.00%0.64%2021 0.70% 2021 271.696 13.899 5.12%0.00%5.12%2022 22.19% Cumulative Total 56.003 25.96%1.70%8.91%34.87%61.76% Requested Rate Increase Above Trigger Threshold 26.89% 1. Landfill rate increases prorated at 25% of total costs 2. Recommended rate for 2022, except for Oceano (21.03%) US CPI-U Increase Allowed Adjustments Page 169 of 673 Solid Waste Rate Review - 22 - However, it is important to note that this “trigger” calculation does not limit the allowable rate increase that may be requested under the methodology set forth in the Franchise Agreements or approved by the agencies. Accordingly, if the proposed rate increases are approved, I recommend that the agencies consider (as they did in as part of the 2019 Base Year review) adopting findings that they will not pursue the “trigger” option. Rate Manual Update. The merit of continuing with the “trigger option” is another area that should be considered with the Rate Manual update. COORDINATION WITH OTHER AGENCIES SCSS has submitted similar rate requests to the three other agencies that regulate rates and services in the other South County areas that it serves: County of San Luis Obispo, Avila Beach Community Services District and the Nipomo Community Services District. These agencies are likely to act on the requested rate increases within the same time frame as the four agencies covered in this report. Waste Connections (as San Luis Garbage Company) has also submitted a rate increase application to the City of San Luis Obispo of 17.75%, which is scheduled for Council review on April 19, 2022. As Mission County Disposal, it has also submitted initial rate applications for Los Osos and the north coastal areas of about 40%. SUMMARY Based on the rate-setting policies and procedures formally adopted by Arroyo Grande, Grover Beach, Oceano and Pismo Beach in their Franchise Agreements, this report concludes that: • SCSS has submitted the required documentation required under its Franchise Agreements with the four agencies. • This results in a recommended rate increase of 22.19% in the cities of Arroyo Grande, Grover Beach and Pismo Beach; and 21.03% in the Oceano CSD. ATTACHMENTS Appendix A: Base Year Rate Request Application from South County Sanitary Service Appendix B: HZI Greenwaste Digester Cost Analysis Page 170 of 673 Appendix A BASE YEAR RATE REQUEST APPLICATION 1. Base Year Application Summary • City of Pismo Beach • City of Arroyo Grande • City of Grover Beach • Oceano Community Services District 2. Supporting Schedules • Financial Information: Cost and Revenue Requirements Summary • Revenue Offset Summary • Cost Summary for Base Year • Base Year Revenue Offset Summary • Operating Information • Rate Survey Page 171 of 673 South County Sanitary Service 2022 Base Year Rate Adjustment Application Summary CITY OF PISMO BEACH Requested Increase Digester Expense 6.2% Capital Purchases 5.9% Market Rate Wage Adjustment 5.6% Commingle Processing Fee 1.9% Other 2.6% 1. Rate Increase Requested 22.19% Rate Schedule Current Increased Adjustment New Rate Schedule Rate Rate (a) Rate Single Family Residential 2. Economy Service (1 - can curb) $17.31 $3.84 $21.15 4. Standard Service (2- can curb) $34.63 $7.69 $42.32 5. Premium Service (3 - can curb) $51.94 $11.53 $63.47 (a) Calculated rates are rounded up to the nearest $0.01. 6.Multiunit Residential and Non-residential Rate increases of 22.19% will be applied to all rates in each structure with each rate rounded to the nearest $0.01 Certification To the best of my knowledge, the data and information in this application is complete, accurate, and consistent with the instructions provided by the Rate Setting Manual. Name:Jeff Clarin Title:District Manager Signature: Date:10/20/21 Revised 2/18/22 Fiscal Year: 1-1-2022 to 12-31-2022 Pg. 1 of 6 Page 172 of 673 South County Sanitary Service 2022 Base Year Rate Adjustment Application Summary CITY OF ARROYO GRANDE Requested Increase Digester Expense 6.2% Capital Purchases 5.9% Market Rate Wage Adjustment 5.6% Commingle Processing Fee 1.9% Other 2.6% 1. Rate Increase Requested 22.19% Rate Schedule Current Increased Adjustment New Rate Schedule Rate Rate (a) Rate Single Family Residential 2. Economy Service (1 - can curb) 19.46$ $4.32 $23.78 4. Standard Service (2- can curb) 25.29$ $5.61 $30.90 5. Premium Service (3 - can curb) 31.13$ $6.91 $38.04 (a) Calculated rates are rounded up to the nearest $0.01. 6.Multiunit Residential and Non-residential Rate increases of 22.19% will be applied to all rates in each structure with each rate rounded to the nearest $0.01 Certification To the best of my knowledge, the data and information in this application is complete, accurate, and consistent with the instructions provided by the Rate Setting Manual. Name:Jeff Clarin Title:District Manager Signature: Date:10/20/21 Revised 2/18/22 Fiscal Year: 1-1-2022 to 12-31-2022 Pg. 1 of 6 Page 173 of 673 South County Sanitary Service 2022 Base Year Rate Adjustment Application Summary CITY OF GROVER BEACH Requested Increase Digester Expense 6.2% Capital Purchases 5.9% Market Rate Wage Adjustment 5.6% Commingle Processing Fee 1.9% Other 2.6% 1. Rate Increase Requested 22.19% Rate Schedule Current Increased Adjustment New Rate Schedule Rate Rate (a) Rate Single Family Residential 2. Economy Service (1 - can curb) 17.65$ $3.92 $21.57 4. Standard Service (2- can curb) 23.85$ $5.29 $29.14 5. Premium Service (3 - can curb) 30.03$ $6.66 $36.69 (a) Calculated rates are rounded up to the nearest $0.01. 6.Multiunit Residential and Non-residential Rate increases of 22.19% will be applied to all rates in each structure with each rate rounded to the nearest $0.01 Certification To the best of my knowledge, the data and information in this application is complete, accurate, and consistent with the instructions provided by the Rate Setting Manual. Name:Jeff Clarin Title:District Manager Signature: Date:10/20/21 Revised 2/18/22 Fiscal Year: 1-1-2022 to 12-31-2022 Pg. 1 of 6 Page 174 of 673 South County Sanitary Service 2022 Base Year Rate Adjustment Application Summary OCEANO COMMUNITY SERVICE DISTRICT Requested Increase Digester Expense 6.2% Capital Purchases 5.9% Market Rate Wage Adjustment 5.6% Commingle Processing Fee 1.9% Other 1.4% 1. Rate Increase Requested 21.03% Rate Schedule Current Increased Adjustment New Rate Schedule Rate Rate (a) Rate Single Family Residential 2. Economy Service (1 - can curb) 14.98$ $3.15 $18.13 4. Standard Service (2- can curb) 21.56$ $4.53 $26.09 5. Premium Service (3 - can curb) 42.19$ $8.87 $51.06 (a) Calculated rates are rounded up to the nearest $0.01. 6.Multiunit Residential and Non-residential Rate increases of 21.03% will be applied to all rates in each structure with each rate rounded to the nearest $0.01 Certification To the best of my knowledge, the data and information in this application is complete, accurate, and consistent with the instructions provided by the Rate Setting Manual. Name:Jeff Clarin Title:District Manager Signature: Date:10/20/21 Revised 2/18/22 Fiscal Year: 1-1-2022 to 12-31-2022 Pg. 1 of 6 Page 175 of 673 South County Sanitary Service 2022 Base Year Rate Adjustment Application Current Financial Information Base Year 2019 2020 2021 2022 2023 (from Pg. 4) 6. Direct Labor $3,258,214 $3,614,140 $3,638,218 $3,922,681 $4,040,361 7. Corporate Overhead $350,343 $356,299 $359,149 $378,184 $389,529 8. Office Salaries $688,788 $768,706 $758,312 $835,736 $859,332 9. Other General and Admin Costs $4,482,056 $4,990,560 $5,899,433 $5,614,771 $7,809,122 10 Total Allowable Costs $8,779,401 $9,729,705 $10,655,112 $10,751,372 $13,098,345 11. Operating Ratio 97.3% 98.2% 103.6% 92.0% 92.0% 12.Allowable Operating Profit $245,196 $179,075 ($366,502) $934,902 $1,138,986 13. Tipping Fees $2,754,458 $2,924,849 $3,012,594 $4,730,341 $2,978,173 14. Franchise Fees $1,482,198 $1,629,121 $1,652,070 $1,454,123 $1,497,747 15. AB939 Fees $0 $0 $0 $0 $0 16. Payments to Affiliated Companies* $281,020 $337,664 $377,981 $438,302 $477,779 17. Total Pass Through Costs $4,517,676 $4,891,634 $5,042,645 $6,622,767 $4,953,699 * Affiliate Payments include interest, lease payments, and transportation 18. Revenue Requirement $13,542,273 $14,800,414 $15,331,255 $18,309,041 $19,191,030 19. Total Revenue Offsets $13,542,273 $14,800,414 $15,331,255 $15,260,678 $15,413,625 (from Page 3) 20. Net Shortfall (Surplus)$3,048,363 21. Total Residential and Non-residential Revenue without increase Oceano Nipomo in Base Year (pg.5, line 76) $15,260,678 $15,260,678 $15,260,678 22. Percent Change in Residential and Non-residential Revenue Requirement 19.98% 19.98% 19.14% 23. Franchise Fee Adjustment Factor (1 - 6 percent) 90.000% 95.000% 90.000% 22.19% 21.03% 21.27% Limitation due to cumlative increases 24. Percent Change in Existing Rates 22.19% 21.03% 21.27% Fiscal Year: 1-1-2022 to 12-31-2022 Pg. 2 of 6 Section III-Pass Through Costs Historical Projected Section I-Allowable Costs Section II-Allowable Operating Profit Section III-Pass Through Costs Section III-Pass Through Costs Page 176 of 673 South County Sanitary Service 2022 Base Year Rate Adjustment Application Revenue Offset Summary Current Base Year 2019 2020 2021 2022 2023 Residential Revenue (without increase in Base Yr.) 28. Single Family Residential $7,924,043 $8,627,550 $8,780,617 $8,769,933 $8,857,632 Multiunit Residential Dumpster 29. Number of Accounts 30. Revenues 31. Less Allowance for Uncollectible Resi Accounts $0 $0 $0 $0 $0 32.Total Residential Revenue $7,924,043 $8,627,550 $8,780,617 $8,769,933 $8,857,632 Non-residential Revenue (without increase in Base Yr.) Account Type Non-residential Can 33. Number of Accounts 11 11 12 34. Revenues $5,513 $5,568 $5,624 Non-residential Wastewheeler 35. Number of Accounts 503 508 513 36. Revenues $544,220 $549,662 $555,159 Non-residential Dumpster 37. Number of Accounts 1,576 1,592 1,608 38. Revenues $5,613,237 $6,171,381 $5,983,795 $5,917,531 $5,976,706 39. Less: Allowance for Uncollectible Non-resid $0 $0 $0 $0 $0 40.Total Non-residential Revenue $5,613,237 $6,171,381 $6,533,528 $6,472,761 $6,537,488 45.Interest on Investments $0 $0 $0 $0 $0 46.Other Income $4,993 $1,483 $17,111 $17,984 $18,505 47.Total Revenue Offsets $13,542,273 $14,800,414 $15,331,255 $15,260,678 $15,413,625 Fiscal Year: 1-1-2022 to 12-31-2022 Pg. 3 of 6 Section VII - Revenue Offsets Historical Projected Page 177 of 673 South County Sanitary Service 2022 Base Year Rate Adjustment Application Cost Summary for Base Year Description of Cost BASE YEAR 2019 2020 2021 2022 2023 Labor $3,020,612 $3,353,557 $3,377,752 $3,642,382 $3,751,654 Payroll Taxes $237,602 $260,583 $260,466 $280,299 $288,708 48.Total Direct Labor $3,258,214 $3,614,140 $3,638,218 $3,922,681 $4,040,361 49. Corporate Overhead $370,263 $387,844 $460,472 $484,877 $499,423 Less limitation (enter as negative) ($19,920) ($31,545) ($101,323)($106,693) ($109,894) Total Corporate Overhead $350,343 $356,299 $359,149 $378,184 $389,529 Office Salaries $642,368 $722,755 $701,402 $773,471 $795,199 Payroll Taxes - Office $46,420 $45,951 $56,910 $62,265 $64,133 50.Total Office Salaries $688,788 $768,706 $758,312 $835,736 $859,332 Bad Debt $12,541 $12,182 $15,064 $15,064 $15,064 Allocated expenses $0 $0 $0 $0 $0 Bonds expense $6,877 $5,221 $5,153 $5,426 $5,589 Depreciation $406,756 $535,997 $1,129,264 $1,534,705 $1,827,206 Drive Cam fees $21,242 $19,353 $20,599 $21,690 $22,341 Dues and Subscriptions $20,483 $5,793 $19,974 $21,033 $21,664 Facilities $59,584 $43,035 $29,218 $30,766 $31,689 Gas and oil $914,400 $821,425 $947,541 $952,847 $980,712 Insurance $860,855 $1,062,848 $1,225,897 $1,361,460 $1,402,304 Laundry (Uniforms) $33,527 $29,461 $29,837 $31,418 $32,361 Legal and Accounting $43,392 $46,291 $51,310 $53,890 $55,428 Miscellaneous and Other $7,943 $5,614 $5,144 $5,416 $5,579 Office Expense $211,414 $229,923 $254,048 $268,409 $276,461 Operating Supplies $59,319 $83,727 $73,903 $77,820 $80,155 Other Taxes $37,649 $40,287 $39,285 $41,236 $42,399 Outside Services $1,128,991 $1,244,791 $1,231,253 $328,750 $2,120,266 Public Relations and Promotion $5,119 $8,013 $7,639 $7,654 $7,663 Postage $21,635 $8,711 $12,894 $13,578 $13,985 Permits $60,344 $67,486 $92,393 $97,290 $100,208 Relocation $18,530 $30,701 $22,040 $22,040 $22,040 Rent $3,000 $2,250 $11,023 $12,497 $12,872 Telephone $13,294 $36,444 $36,121 $38,035 $39,176 Tires $100,399 $127,834 $144,039 $151,673 $156,223 Travel $27,991 $8,712 $12,431 $13,091 $13,483 Truck Repairs $389,414 $492,848 $464,015 $488,608 $503,266 Utilities $17,357 $21,613 $19,349 $20,375 $20,986 51.Total Other Gen/Admin Costs $4,482,056 $4,990,560 $5,899,433 $5,614,771 $7,809,122 52.Total Tipping Fees $2,754,458 $2,924,849 $3,012,594 $4,730,341 $2,978,173 53.Total Franchise Fee 1,482,198.00 $1,629,121 $1,652,070 $1,454,123 1,497,747.16 54.Total AB 939/Regulatory Fees $0 $0 $0 $0 $0 55.Total Lease Pmt to Affil Co.'s $142,332 $170,111 $172,663 $181,814 $187,268 55a.Interest Expense (to affiliate)$87,922 $133,282 $162,043 $213,214 $247,236 55b.Total Transportation to Affil Co.'s $50,766 $34,271 $43,275 $43,275 $43,275 56.Total Cost $13,297,077 $14,621,339 $15,697,757 $17,374,139 $18,052,043 Fiscal Year: 1-1-2022 to 12-31-2022 Pg. 4 of 6 Page 178 of 673 South County Sanitary Service 2022 Base Year Rate Adjustment Application Base Year Revenue Offset Summary For Information Purposes Only Description of Revenue Overall Franchise Refuse Collection Non-franchise Total Total Arroyo Pismo Grover Unincorporated Total Residential Revenue (without increase in Base Year) 57. Single Family Residential $8,769,933 $8,769,933 $1,826,861 $1,185,972 $1,173,008 $4,584,092 Multiunit Residential Dumpster 58. Number of Accounts 0 0 59. Revenues $0 $0 60. Less Allowance for Uncollectable $0 $0 61.Total Residential Revenue $8,769,933 $8,769,933 $1,826,861 $1,185,972 $1,173,008 $4,584,092 $0 Non-residential Revenue (without increase in Base Year) Account Type 0.34% 0.35% 33.05% 15.36% 0.00% 0.00% Non-residential Can 62. Number of Accounts 11 11 5 1 4 2 63. Revenues $5,568 $5,568 $1,416 $280 $1,033 $2,840 Non-residential Wastewheeler 3.4%0.0% 64. Number of Accounts 503 503 139 136 98 131 65. Revenues $549,662 $549,662 149,429 195,948 84,569 119,716 Non-residential Dumpster 96% 17% 38% 3% 66. Number of Accounts 1,576 1576 402 229 321 625 0 67. Revenues $5,917,531 $5,917,531 $1,577,642 $1,333,364 $828,238 $2,178,286 68. Less: Allowance for Uncollectible Non-residential Accounts $0 $0 69.Total Non-residential Revenue $6,472,761 $6,472,761 $1,728,486 $1,529,592 $913,840 $2,300,842 $0 74.Interest on Investments $0 $0 $0 $0 $0 $0 $0 75.Other Income $17,984 $0 $0 $0 $0 $0 $17,984 76.Total Revenue Offsets $15,260,678 $15,242,694 $3,555,347 $2,715,564 $2,086,848 $6,884,935 $17,984 Fiscal Year: 1-1-2022 to 12-31-2022 Pg. 5 of 6 Section VII-Revenue Offsets Page 179 of 673 South County Sanitary Service 2022 Base Year Rate Adjustment Application Operating Information Percent Percent Percent Base Year Percent 2019 Change 2020 Change 2021 Change 2022 Change 2023 Residential Accounts 77. Arroyo Grande 5,827 1.1% 5,890 0.6% 5,924 1.0% 5,983 1.0% 6,043 Grover Beach 4,216 0.4% 4,233 0.4% 4,249 1.0% 4,291 1.0% 4,334 Pismo Beach 3,816 0.1% 3,819 0.2% 3,828 1.0% 3,866 1.0% 3,905 Oceano CSD 1,863 0.4% 1,870 1.6% 1,899 1.0% 1,918 1.0% 1,937 Nipomo CSD 4,066 0.8% 4,097 0.9% 4,135 1.0% 4,176 1.0% 4,218 County 6,881 2.2% 7,034 1.4% 7,130 1.0% 7,201 1.0% 7,273 26,669 1.0% 26,943 0.8% 27,165 1.0% 27,437 1.0% 27,711 78. Routes-Garbage 7 26.5% 9 -13.9% 8 0.0% 8 0.0% 8 79. Routes-Recycling 6 26.5% 8 -13.9% 7 0.0% 7 0.0% 7 80. Direct Labor Hours 28,522 26.5% 36,082 -13.9% 31,059 0.0% 31,059 0.0% 31,059 Non-residential Garbage Accounts 80. Arroyo Grande 490 0.2% 491 0.6% 494 1.0% 499 1.0% 504 Grover Beach 438 0.7% 441 0.5% 443 1.0% 447 1.0% 452 Pismo Beach 386 1.8% 393 -0.5% 391 1.0% 395 1.0% 399 Oceano CSD 190 0.5% 191 0.5% 192 1.0% 194 1.0% 196 Nipomo CSD 214 -2.3% 209 0.0% 209 1.0% 211 1.0% 213 County 508 -5.9% 478 2.5% 490 1.0% 495 1.0% 500 2,226 -1.0% 2,203 0.7% 2,219 1.0% 2,241 1.0% 2,264 81. Routes-garbage 8 26.5% 10 -13.9% 8 0.0% 8 0.0% 8 Routes-recycling 3 26.5% 4 -13.9% 4 0.0% 4 0.0% 4 82. Direct Labor Hours 22,871 26.5% 28,933 -13.9% 24,905 0.0% 24,905 0.0% 24,905 Recyclable Materials - All areas-Commingled Recycling (in tons) Accounts 83. Tons Collected 13,275 -4.0% 12,740 3.0% 13,123 3.0% 13,516 1.0% 13,651 Recyclable Materials - All areas-Greenwaste Recycling Routes 5 26.5% 7 -13.9% 6 0.0% 6 0.0% 6 Tons Collected 13,631 -0.9% 13,511 3.0% 13,916 3.0% 14,334 1.0% 14,477 Direct Labor Hours 10,934 26.5% 13,833 -13.9% 11,907 0.0% 11,907 0.0% 11,907 Garbage Tons Collected 43,020 -3.5% 41,507 3.0% 42,752 3.0% 44,034 1.0%44,475 Fiscal Year: 1-1-2022 to 12-31-2022 Pg. 6 of 6 Historical Current Projected Section IX-Operating Data Page 180 of 673 Rate Comparisons for Garbage Service Service Size Pismo Beach 1 South County Urban 1 Arroyo Grande 1 Atascadero Templeton San Miguel Paso Robles2 City of Santa Maria 3,4 Santa Barbara County (Northern)4 City of Santa Barbara 20 Gallon 35 Gallon 17.31$ 25.60$ 19.46$ 28.55$ 31.40$ 28.33$ 30.90$ 25.84$ 45.30$ 65 Gallon 34.63$ 34.04$ 25.29$ 44.50$ 45.01$ 44.48$ 51.12$ 30.69 27.89$ 56.15$ 95 Gallon 51.94$ 47.46$ 31.13$ 55.77$ 45.95$ 61.06$ 57.25$ 34.81 29.86$ 67.00$ 2 yard (1X WK)120.91$ 129.25$ 122.10$ 146.79$ 129.54$ 103.98$ 168.68$ 166.72 167.72$ 248.79$ Notes: 1 Scheduled increases in 1/1/2022 2 Paso Robles does 40 gallon cart pricing 3 65 gallon Scheduled to increase to $32.70 in 1/1/22 and $34.71 in 7/1/22, and 95 gallon Scheduled to increase to $38.07 in 1/1/22 and $41.34 in 7/1/22 4 Weekly Trash pick-up but every other week recycling and green waste pick-up. Page 181 of 673 HZI Cost Increase SummaryAppendix BOriginalCost Category Plan 2021 2022 Amount%Comment Staffing and Administrative Cost 1,090$ 1,592$ 1,706$ 616$ 57%Staff operation requirements increased from 3 to 6 team members due to feedstock profile, increased maintenance, equipment change out and operational demands. Additionally salary increases have been necessary to meet CA labor market demands. Administratively pollution insurance was added and audit and legal fees were increased to meet reporting requirements.O&M Expense495$ 1,747$ 1,439$ 944$ 191%Increased cost due to CHP maintenance increases related to gas cycling, dosing feeder erosion, screw feeder premature erosion, shredder blade erosion and damage due to contamination, digestate pump rebuild frequency due to sand, premature wear and replacement of the decanter, and continued vacuum truck clean out of the sand build-up. Added +250K/year for management of backend products and front end peak loading;Capital Expense1,487$ 1,945$ 1,946$ 459$ 31%Added Capital cost includes Feed Bunker Wall extension, Speed Screen, Fat, Oils, and Grease system, and redundant pumps related to decreased food waste and sand issues in the CA environmentTotal Cost 3,072$ 5,284$ 5,091$ 2,019$ - Total Service Fee1,749$ 1,779$ 3,861$ 2,082$ 119%Increase requested equates closely to cost increase seen since original plan of monthly service feesChange(1,323)$ (3,505)$ (1,230)$ 63$ VariancePage 182 of 673 ITEM 9.a.: Attachment 3 – April 12, 2022 Staff Report and Attachments Attachment 3 is available as a link: https://pub-arroyogrande.escribemeetings.com/filestream.ashx?DocumentId=2021 https://pub-arroyogrande.escribemeetings.com/filestream.ashx?DocumentId=2022 https://pub-arroyogrande.escribemeetings.com/filestream.ashx?DocumentId=2023 https://pub-arroyogrande.escribemeetings.com/filestream.ashx?DocumentId=2024 https://pub-arroyogrande.escribemeetings.com/filestream.ashx?DocumentId=2025 https://pub-arroyogrande.escribemeetings.com/filestream.ashx?DocumentId=2026 Page 183 of 673 !"#$%&’"(’)*+,$%’-&./$01’2&1./3$01’)/"4"5&3’6",$3’7.5#&’2.#&’80%/&.5&’!)/"4&/#9’:;0&/5’.03’<&0.0#5’=’>*5#"?&/5@’!"#$%!&’($)*!$%!$&(*&+*+!(’!$&,’-.!/’0!(#1(!(#*!2$(/!’,!3--’/’!4-1&+*!5(#*!62$(/78!9$::!#’:+!1!;0<:$)!#*1-$&=!-*=1-+$&=!-1(*!$&)-*1%*%!5(#*!6>-’;’%*+!?1(*!@&)-*1%*78!;-’;’%*+!</!A’0(#!2’0&(/!A1&$(1-/!A*-B$)*!5(#*!641-<1=*!2’.;1&/78!,’-!;-’;*-($*%!1&+!)0%(’.*-%!-*)*$B$&=!%’:$+!91%(*C!-*)/):$&=C!1&+!=-**&!91%(*!%*-B$)*%!9$(#$&!(#*!2$(/D!"#*!>-’;’%*+!?1(*!@&)-*1%*!9$::!<*!)’&%$+*-*+!</!(#*!2’0&)$:!1(!(#*!+1(*C!($.*C!1&+!:’)1($’&!%;*)$,$*+!<*:’9D!2’&%$%(*&(!9$(#!(#*!-*E0$-*.*&(%!’,!>-’;’%$($’&!FGHC!(#$%!&’($)*!1:%’!;-’B$+*%!/’0!9$(#!(#*!,’::’9$&=!$&,’-.1($’&I!! !•!"#*!J1(*C!"$.*C!1&+!>:1)*!’,!(#*!>0<:$)!K*1-$&=L!•!"#*!?*1%’&!,’-!(#*!>-’;’%*+!?1(*!@&)-*1%*L!1&+!•!"#*!M1%$%!,’-!(#*!>-’;’%*+!?1(*!@&)-*1%*L!1&+!!•!"#*!N1O’-$(/!>-’(*%(!>-’)*+0-*%D!!!:<8>A’:B’)CDE8>’-AF28!G!!"#$!%&’()*!+$,-)./!01-!2#$!%-1314$5!6,2$!7.*-$,4$!8)2#).!2#$!9)2:!();)24!8)((!’$!#$(5!1.<!!=,2$<!P0&*!GQC!FRFF! 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185 of 673 This notice is intended to inform you that the City of Arroyo Grande (the “City”) will hold a public hearing regarding rate increases (the “Proposed Rate Increase”) proposed by South County Sanitary Service (the “Garbage Company”) for properties and customers receiving solid waste, recycling, and green waste services within the City. The Proposed Rate Increase will be considered by the Council at the date, time, and location specified below. Consistent with the requirements of Proposition 218, this notice also provides you with the following information: •The Date, Time, and Place of the Public Hearing; •The Reason for the Proposed Rate Increase; and •The Basis for the Proposed Rate Increase; and •The Majority Protest Procedures. June 14, 2022 6:00 pm Arroyo Grande City Council Chambers, 215 East Branch St. Arroyo Grande, CA The Proposed Rate Increase is 22.19 percent for solid waste, recycling, and green waste/organics collection services. In addition, there will be a temporary 5.12 percent increase to recover revenue lost due to this rate increase being delayed from May 1, 2022 to June 15, 2022. This recovery component will expire January 1, 2023. The increase is necessary for the Garbage Company to continue to provide safe, environmentally sound, and reliable solid waste, recycling, green waste/organics collection, transportation and disposal/processing services to the citizens of the City. Several factors contributed to this rate increase including, but not limited to: increased costs associated with the purchase and operation of collection vehicles, fuel costs, labor costs, and increased costs associated with the organics digester facility. The organics digester facility is required by California Senate Bill 1383 (SB 1383), and previously approved California Assembly Bill 1826 (AB 1826). SB 1383 is a recent state law passed with the goal of reducing methane. Methane is a potent greenhouse gas, with more than 80 times the warming power of carbon dioxide, and is a major component of decomposing organic waste. In response to the harmful effects of methane gas, Cal Recycle (a branch of the California Environmental Protection Agency) adopted regulations implementing SB 1383 in the fall of 2020. Key components of SB 1383 include implementing organic waste collection programs (including food waste), monitoring organics carts for contamination, and reporting data. ATTACHMENT 5 Page 186 of 673 AB 1826 requires local jurisdictions to develop a program to divert organic waste from landfills to an authorized composting facility like an anaerobic digester. The Proposed Rate Increase of 22.19 percent is based on the following cost increases incurred by the Garbage Company: 1. 5.88 percent of the Proposed Rate Increase is for capital investment costs of new collection vehicles, replacement containers and additional containers to meet the demands of SB 1383 compliance. 2. 6.20 percent of the Proposed Rate Increase is for increased capital equipment investments and escalating operating expenses related to the Anaerobic Digester. 3. 5.63 percent of the Proposed Rate Increase is for market wage adjustments to attract and retain safe, quality employees. 4. 1.88 percent of the Proposed Rate Increase is for increases the commingle processing fee 5. 2.60 percent of the Proposed Rate Increase is for increases in other operational expenses The additional temporary 5.12 percent recovery rate increase is for the delayed rate implementat ion that was no fault of the Garbage Company. The total rate increase implemented June 15, 2022 will be 27.32 percent. The temporary 5.12 percent recovery rate increase will expire January 1, 2023, net of any Consumer Price Index adjustment as discussed next. In addition, commencing on January 1, 2023 and January 1, 2024, rates shall be increased based on the following: 1. Increases, if any, in the Consumer Price Index (CPI) for Bureau of Labor Statistics’ Consumer Price Index for Urban Consumers based on the All U.S. City Average, Bureau of Labor Statistics for the month of June 2022 for January 1, 2023 and June 2023 for January 1, 2024. The January 1, 2023 CPI rate adjustment will be applied after the 5.12 percent recovery rate increase is removed. At the March 9, 2022 San Luis Obispo County Integrated Waste Management Authority (IWMA) Board Meeting, a 5.4% solid waste management fee was adopted to account for operational and capital cost increases due largely to tasks associated with the implementation of SB 1383. These include the following tasks that will be delegated by the City to the IWMA: education and outreach monitoring, inspection, and record keeping programs; establishing, administering, and implementing the edible food recovery requirements; monitoring and education, including, but not limited to, monitoring compliance through route reviews and evaluations, determining the applicability of waivers , and issuing educational notices where necessary and/or appropriate; and required reporting to CalRecycle. The adopted fee will be effective on July 1, 2022. The City has authorized the Garbage Company to bill this additional fee on behalf of the IWMA. The IWMA is a Joint Powers Authority formed to plan and implement regional solid waste and hazardous waste programs mandated by State law. The Joint Powers Agreement between the City of Arroyo Grande and the IWMA can be made available by the City upon request or on the IWMA website at www.iwma.com. A copy of the 2022 Base Year Rate Adjustment Application, which provides additional information on the proposed rate increases, is available at the City Clerk’s office located at 300 East Branch St., Arroyo Grande, California. Page 187 of 673 Pursuant to Section 6 of Art icle XIII D of the California Constitution, the following persons may submit a written protest against the Proposed Rate Increase to the City Clerk before the close of the Public Hearing referenced above. ▪ An owner(s) of property (parcel(s)) receiving solid waste, recycling, and green waste services within the City limits. If the person(s) signing the protest, as an owner, is not shown on the last equalized assessment roll as the owner of the parcel(s) then the protest must contain or be accompanied by written evidence that such person signing the protest is the owner of the parcel(s) receiving services; or ▪ A tenant(s) whose name appears on the Garbage Company’s records as the customer of record for the corresponding parcel receiving solid waste, recycling, and green waste services within the City limits (tenant-customer). A valid written protest must contain a statement that you protest the Proposed Rate Increase, the address or Assessor’s Parcel Number (APN) of the parcel or parcels which receive solid waste, recycling, and green waste services, and a signature by either the owner or the tenant -customer of the parcel or parcels. One written protest per parcel shall be counted in calculating a majority protest to the Proposed Rate Increase subject to the requirements of Section 6 of Article XIII D of the California Constitution. Written protests will not be accepted by e-mail or by facsimile. Verbal protests will not be counted in determining the existence of a majority protest. To be counted, a protest must be received in writing by the City Clerk before the close of the Public Hearing referenced above. Written protests regarding the solid waste rate increase may be mailed to: Written protests may also be personally delivered to the City Clerk located at 300 East Branch Street, Arroyo Grande, California. If valid written protests are presented by a majority of owners and/or tenants -customers of parcels receiving solid waste, recycling, and green waste services within the City limits, then the City will not adjust/increase the rates for the services. Page 188 of 673 SOUTH COUNTY SANITARY SERVICE RATE INCREASE EFFECTIVE JUNE 15, 2022 CITY OF ARROYO GRANDE Service Description Pickups Per Week Current Monthly Rate Effective 1/1/2021 Proposed Rate Adjustment Proposed Monthly Rate Effective 6/15/2022 APARTMENTS, TRIPLEX, DUPLEX Rates are the same as commercial rates (below). COMMERCIAL DUMPSTERS - ALL AREAS: 1 yd dumpster 1 $96.13 $26.26 $122.39 1 yd dumpster 2 $140.24 $38.31 $178.55 1 yd dumpster 3 $184.40 $50.37 $234.77 1 yd dumpster 4 $236.32 $64.55 $300.87 1 yd dumpster 5 $277.84 $75.89 $353.73 1 yd dumpster 6 $329.80 $90.09 $419.89 1 yd dumpster 7 $400.86 $109.50 $510.36 1.5 yd dumpster 1 $109.10 $29.80 $138.90 1.5 yd dumpster 2 $168.81 $46.11 $214.92 1.5 yd dumpster 3 $238.96 $65.27 $304.23 1.5 yd dumpster 4 $311.63 $85.12 $396.75 1.5 yd dumpster 5 $379.18 $103.58 $482.76 1.5 yd dumpster 6 $428.52 $117.05 $545.57 1.5 yd dumpster 7 $501.77 $137.06 $638.83 2 yd dumpster 1 $122.10 $33.35 $155.45 2 yd dumpster 2 $205.17 $56.04 $261.21 2 yd dumpster 3 $290.89 $79.46 $370.35 2 yd dumpster 4 $384.34 $104.99 $489.33 2 yd dumpster 5 $475.25 $129.82 $605.07 2 yd dumpster 6 $532.40 $145.43 $677.83 2 yd dumpster 7 $619.02 $169.09 $788.11 3 yd dumpster 1 $145.41 $39.72 $185.13 3 yd dumpster 2 $275.28 $75.19 $350.47 3 yd dumpster 3 $384.34 $104.99 $489.33 3 yd dumpster 4 $501.19 $136.90 $638.09 3 yd dumpster 5 $594.70 $162.45 $757.15 3 yd dumpster 6 $708.98 $193.66 $902.64 3 yd dumpster 7 $905.52 $247.35 $1,152.87 Page 189 of 673 Service Description Pickups Per Week Current Monthly Rate Effective 1/1/2021 Proposed Rate Adjustment Proposed Monthly Rate Effective 6/15/2022 4 yd dumpster 1 $181.81 $49.66 $231.47 4 yd dumpster 2 $322.02 $87.96 $409.98 4 yd dumpster 3 $462.25 $126.27 $588.52 4 yd dumpster 4 $594.70 $162.45 $757.15 4 yd dumpster 5 $734.95 $200.76 $935.71 4 yd dumpster 6 $872.60 $238.36 $1,110.96 4 yd dumpster 7 $1,111.28 $303.55 $1,414.83 6 yd dumpster 1 $272.72 $74.50 $347.22 6 yd dumpster 2 $483.05 $131.95 $615.00 6 yd dumpster 3 $693.36 $189.40 $882.76 6 yd dumpster 4 $892.08 $243.68 $1,135.76 6 yd dumpster 5 $1,102.41 $301.13 $1,403.54 6 yd dumpster 6 $1,308.92 $357.54 $1,666.46 6 yd dumpster 7 $1,666.92 $455.33 $2,122.25 8 yd dumpster 1 $363.61 $99.32 $462.93 8 yd dumpster 2 $644.05 $175.93 $819.98 8 yd dumpster 3 $924.49 $252.53 $1,177.02 8 yd dumpster 4 $1,189.43 $324.90 $1,514.33 8 yd dumpster 5 $1,469.91 $401.52 $1,871.43 8 yd dumpster 6 $1,745.22 $476.72 $2,221.94 8 yd dumpster 7 $2,222.57 $607.11 $2,829.68 The rates shown above include the monthly container rental fee and a semi-annual dumpster cleaning. COMMERCIAL GARBAGE CANS - ALL AREAS: 32 Gallon Waste Wheeler 1 $23.37 $6.38 $29.75 32 Gallon Waste Wheeler 2 $49.34 $13.48 $62.82 32 Gallon Waste Wheeler 3 $57.15 $15.61 $72.76 32 Gallon Waste Wheeler 4 $72.69 $19.86 $92.55 64 Gallon Waste Wheeler 1 $49.34 $13.48 $62.82 64 Gallon Waste Wheeler 2 $65.57 $17.91 $83.48 64 Gallon Waste Wheeler 7 $195.92 $53.52 $249.44 96 Gallon Waste Wheeler 1 $57.15 $15.61 $72.76 96 Gallon Waste Wheeler 2 $96.13 $26.26 $122.39 96 Gallon Waste Wheeler 3 $121.02 $33.06 $154.08 96 Gallon Waste Wheeler 4 $146.21 $39.94 $186.15 96 Gallon Waste Wheeler 5 $164.63 $44.97 $209.60 96 Gallon Waste Wheeler 7 $224.61 $61.35 $285.96 Page 190 of 673 Service Description Pickups Per Week Current Monthly Rate Effective 1/1/2021 Proposed Rate Adjustment Proposed Monthly Rate Effective 6/15/2022 COMMERCIAL - OTHER CHARGES: Rates for all commercial customers include recycling or greenwaste/organics pickup once per week, included with the garbage service rate. Customers can choose from a 64 or 96 gallon blue commingled recycle waste wheeler or a 32 or 64 gallon organics waste wheeler included with the garbage service rate (96 gallon waste wheelers can only be used with green waste due to weight). If you need a bin for recycling there is a charge (see below). If you need more frequent recycling, including organics/greenwaste service, it can be provided at a 50% discount from the garbage service rates for the specified level of service required. MISCELLANEOUS CHARGES - ALL CUSTOMERS: Overstacked Garbage & extra bags Minimum/unit each $5.51 $1.51 $7.02 Overstacked Greenwaste & extra bags Minimum/unit each $2.77 $0.76 $3.53 Overstacked Blue Bin & extra bags Minimum/unit each $2.91 $0.79 $3.70 Xtra Recycle 32, 64, or 96 waste wheelers per month $1.55 $0.42 $1.97 In yard service (per can or commodity) IN ADDITION TO STANDARD GARBAGE RATES per month $13.76 $3.76 $17.52 Monthly charge for additional 96-gallon green waste service per month $3.80 $1.04 $4.84 Extended Vacation Service per month $12.82 $3.50 $16.32 Vacant Rate per month $15.79 $4.31 $20.10 Waste wheeler cleaning each time $20.52 $5.61 $26.13 Trip charge each time $13.76 $3.76 $17.52 Non-payment downsize service each time $13.76 $3.76 $17.52 Non-payment redeliver waste wheeler each time $13.76 $3.76 $17.52 Non-payment reconnect service each time $33.07 $9.03 $42.10 Small item pickup (TV, toilet) each $32.27 $8.81 $41.08 Appliance pickup-residential each $45.51 $12.43 $57.94 Lock Charge $7.66 $2.09 $9.75 Garbage extras on your scheduled pickup day per yard $11.62 $3.17 $14.79 Garbage extras -NOT ON YOUR SCHEDULED PICKUP DAY per yard $31.25 $8.54 $39.79 Commercial Waste Wheeler rent per month $4.26 $1.16 $5.42 Page 191 of 673 Service Description Pickups Per Week Current Monthly Rate Effective 1/1/2021 Proposed Rate Adjustment Proposed Monthly Rate Effective 6/15/2022 Re-deliver bin on stopped acct each time $39.44 $10.77 $50.21 Large Compactor (> 4 yards) per yard $16.90 $4.62 $21.52 Small Compactors (4 yards & below) assume 3 to 1 compaction 3 times the garbage rate Sunday Service (in additional to garbage service level) per month $68.87 $18.81 $87.68 Recycle bin rental per month $7.66 $2.09 $9.75 Stand by time per hour $66.28 $18.10 $84.38 Extra bin cleaning $61.55 $16.81 $78.36 Larger than residential appliance by quote only Damage/Destruction of bins or waste wheelers by quote only Short Term Dumpsters: Delivery & Pickup-Bin $39.46 $10.78 $50.24 Delivery & Pickup-Waste Wheeler $13.76 $3.76 $17.52 Rental Per Day $2.92 $0.80 $3.72 Empties Per Yard $31.25 $8.54 $39.79 Mattress: Twin Each $17.91 $4.89 $22.80 Double Each $17.91 $4.89 $22.80 Queen Each $17.91 $4.89 $22.80 King Each $17.91 $4.89 $22.80 ADDITIONAL INFORMATION ALL CUSTOMERS: 1. Customers requesting Temporary Bins or Roll-off Box Service can call the office for current rates 2. Polystyrene (Styrofoam, Plastic #6) is not collected for recycling and should be thrown away as trash. Please bag Styrofoam packing peanuts before placing in trash container. 3. It is encouraged to bag your trash in the garbage container but do not bag your recyclables or green waste in their respective containers and keep it loose. 4. Recycling, Greenwaste/Organics and Garbage containers should spaced 3 feet apart away from any obstacles (i.e mailboxes, cars, etc) before 6:00am on collection service day. 5. The fee schedule above only includes the Garbage Company rates an d does not include IWMA fees, which are separately noted on the billings. 6. Late Fees are imposed for residential customers over 30 days delinquent. The fee is 1.5% per month of the outstanding charge, with a minimum fee of $5.00. No prior notice is required, as this late fee policy is stated at the bottom of every bill. 7. Customers can be responsible for contamination fees Any additional recycling, including greenwaste/organic services are charged out at 50% of the garbage rate. Page 192 of 673 The Garbage Company 4388 Old Santa Fe Road San Luis Obispo, CA 93401 Standard US Postage PAID Santa Barbara, CA Permit No. 800 Page 193 of 673 ATTACHMENT 6 Page 194 of 673 Page 195 of 673 Page 196 of 673 Page 197 of 673 Page 198 of 673 Page 199 of 673 Page 200 of 673 Page 201 of 673 Page 202 of 673 Page 203 of 673 Page 204 of 673 Page 205 of 673 Item 9.b. MEMORANDUM TO: City Council FROM: Bill Robeson, Assistant City Manager/Public Works Director SUBJECT: Consideration of Adoption of Resolutions Directing the Levy of the Annual Assessments for the Parkside Village and Grace Lane Assessment Districts and Landscaping and Lighting Assessment District No. 1, Within Tract 1769, for Fiscal Year 2022-2023 DATE: June 14, 2022 SUMMARY OF ACTION: Adoption of the associated Resolutions will direct the levy and collection of assessment fees for maintenance and landscaping for the Parkside Village and Grace Lane Assessment Districts and the Landscaping District No. 1 within Tract 1769. No changes to the assessment amounts are proposed nor are any new improvements or substantial changes in existing improvements proposed for Fiscal Year 2022-23. IMPACT ON FINANCIAL AND PERSONNEL RESOURCES: By adopting the Resolutions, $56,298 will be collected for Fiscal Year 2022-23 for the three assessment districts to provide landscaping and other specified maintenance. The assessments are placed on the affected property owner’s property tax bill each year. RECOMMENDATION: 1) Conduct a public hearing for the levy and collection of assessments for the Parkside Village Assessment District, Grace Lane Assessment District, and Landscaping and Lighting Assessment District No. 1 within Tract 1769; 2) Adopt a Resolution directing the levy of the annual assessment for the Parkside Village Assessment District pursuant to the Landscaping and Lighting Act of 1972 (Streets and Highways Code Sections 22500 et. seq.) for Fiscal Year 2022-2023; 3) Adopt a Resolution directing the levy of the annual assessment for the Grace Lane Assessment District pursuant to the Landscaping and Lighting Act of 1972 (Streets and Highways Code Sections 22500 et. seq.) for Fiscal Year 2022 -2023; and 4) Adopt a Resolution directing the levy of the annual assessment for the Landscaping and Lighting Assessment District No. 1 within Tract 1769, pursuant to the Landscaping and Lighting Act of 1972 (Streets and Highways Code Sections 22500 et. seq.) for Fiscal Year 2022-2023. Page 206 of 673 Item 9.b. City Council Consideration of Adoption of Resolutions Directing the Levy of the Annual Assessments for the Parkside Village and Grace Lane Assessment Districts and Landscaping and Lighting Assessment District No. 1, Within Tract 1769, for Fiscal Year 2022-2023 June 14, 2022 Page 2 BACKGROUND: At the May 10, 2022 City Council meeting, Council approved the Engineer’s Reports and adopted Resolution Nos. 5182, 5183, and 5184 declaring its intention to levy and collect assessments for the Parkside Village Assessment District, Grace Lane Assessment District, and Landscaping and Lighting Assessment District No. 1 within Tract No. 1769, and setting a public hearing for June 14, 2022, at 6:00 P.M.  For the Parkside Village Assessment District, the proposed annual assessments are $446 or $734 per parcel for a total of $43,966 annually.  For the Grace Lane Assessment District, the proposed annual assessments are $460 for 19 parcels and $148 for 4 parcels ($8,740 + $592) for an annual total of $9,332.  For the Landscaping and Lighting Assessment District No. 1, within Tract 1769, the total proposed annual assessment is $100 per parcel for an annual total of $3,000. ANALYSIS OF ISSUES: The California Streets and Highways Code Sections 22500 et seq., (California Landscape and Lighting Act of 1972) (Act), establishes one of the processes by which local governmental agencies form assessment districts for the purpose of financing the costs and expenses of landscaping and lighting public areas. The final process includes a public hearing, which affords all interested parties the opportunity to hear and be heard. At the conclusion of the public hearing, the City Council may adopt Resolutions (Attachments 1, 2, and 3) confirming the assessments, which constitute the levy of the assessments for the 2022-23 fiscal year. Upon fulfillment of these requirements, the City must submit the Resolutions to the County of San Luis Obispo for inclusion of the assessments on the Fiscal Year 2022-23 property tax roll. The fees collected for each assessment district fund items such as monthly landscape maintenance, annual fire suppression/fuel reduction, savings for anticipated drainage structure maintenance /improvements, and general landscaping cleanup projects, as needed. Section 4 of each associated Engineer’s Report provides a description of improvements (Attachment 4). ALTERNATIVES: The following alternatives are provided for the Council’s considerat ion: 1. Adopt Resolutions approving the levy to collect the annual assessments for the Parkside Village Assessment District, Grace Lane Assessment District and Landscaping and Lighting Assessment District No. 1 within Tract 1769 for Fiscal Year 2022-23; or Page 207 of 673 Item 9.b. City Council Consideration of Adoption of Resolutions Directing the Levy of the Annual Assessments for the Parkside Village and Grace Lane Assessment Districts and Landscaping and Lighting Assessment District No. 1, Within Tract 1769, for Fiscal Year 2022-2023 June 14, 2022 Page 3 2. Modify and adopt the Resolutions; or 3. Provide staff other direction. ADVANTAGES: Adoption of the Resolutions will be in compliance with the Act and allow the City to move forward with the process to collect assessments and perform the work identified in the Engineer’s Report for each assessment district. DISADVANTAGES: No disadvantages for the proposed actions have been identified for this fiscal year. ENVIRONMENTAL REVIEW: No environmental review is required for this item. PUBLIC NOTIFICATION AND COMMENTS: The Resolutions adopted by the City Council on June 14, 2022, declaring its intention to levy and collect annual assessments for all three (3) Assessment Districts in Fiscal Year 2022-23 were published in The Tribune on Friday, June 3, 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 Resolution – Parkside Village 2. Proposed Resolution – Grace Lane 3. Proposed Resolution – District 1, Tract 1769 4. May 10, 2022 Staff Report and Attachments Page 208 of 673 ATTACHMENT 1 RESOLUTION NO. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ARROYO GRANDE DIRECTING THE LEVY OF THE ANNUAL ASSESSMENTS RELATED TO THE PARKSIDE VILLAGE ASSESSMENT DISTRICT PURSUANT TO THE LANDSCAPING AND LIGHTING ACT OF 1972 (STREETS AND HIGHWAYS CODE SECTIONS 22500 ET. SEQ.) FOR FISCAL YEAR 2022-2023 WHEREAS, on November 8, 2005, the City Council of the City of Arroyo Grande adopted Resolution No. 3888 ordering the formation of the Parkside Village Assessment District under Part 2 of Division 15 of the California Streets and Highways Code 22500- 22679 (Landscape and Lighting Act of 1972), which allows local governmental agencies to form assessment districts for the purpose of financing the costs and expenses of landscaping and lighting public areas; and WHEREAS, the City Council, at its meeting of May 10, 2022, approved Resolution No. 5182 approving the Engineer’s Report and declaring its intention to levy and collect annual assessments for the Parkside Village Assessme nt District for Fiscal Year 2022- 2023 and set a public hearing for June 14, 2022 for the Parkside Village Assessment District; and WHEREAS, a public hearing to levy the annual assessment of the Parkside Village Assessment District was held June 14, 2022 at the City Council Chambers, 215 E. Branch Street, Arroyo Grande, California, 93420 and the City Council took public testimony from all interested persons as to the levy of the annual assessment for the Parkside Village Assessment District; and WHEREAS, pursuant to Streets and Highways Code Section 22130, the City Council is authorized to levy this assessment; and WHEREAS, pursuant to Streets and Highways Code Section 22646, the assessments herein confirmed by the City Council shall be collected on the secured property tax roll and collected at the same time and in the same manner as County taxes are collected. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Arroyo Grande, as follows: 1. The foregoing recitals are true and correct and are incorporated herein. 2. The annual levy for the maintenance of Parkside Village Assessment District, located as shown in the approved Engineer’s Report for the Parkside Village Assessment District is hereby ordered and the assessment of $446 or $734 per Page 209 of 673 RESOLUTION NO. PAGE 2 parcel for the Fiscal Year 2022-2023 as indicated on Exhibit “A” attached hereto and incorporated herein by this reference, is hereby confirmed. 3. Adoption of this Resolution shall constitute the levy of an assessment for Fiscal Year 2022-2023 and the City Clerk shall file the diagram and asse ssments with the County of San Luis Obispo Auditor. 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 14th day of June, 2022. Page 210 of 673 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 211 of 673 Exhibit A SAN LUIS OBISPO COUNTY TAX SYSTEM TRACT 2310 ASSESSMENTS FOR TAX ROLL YEAR 2022-23 FUND ASSESSMENT # CHARGE FUND ASSESSMENT # CHARGE 1893 077255002 $ 446.00 1893 077255038 $ 734.00 1893 077255003 $ 446.00 1893 077255039 $ 734.00 1893 077255004 $ 446.00 1893 077255040 $ 734.00 1893 077255005 $ 446.00 1893 077255041 $ 734.00 1893 077255006 $ 446.00 1893 077255042 $ 734.00 1893 077255007 $ 446.00 1893 077255043 $ 734.00 1893 077255008 $ 446.00 1893 077255044 $ 734.00 1893 077255009 $ 446.00 1893 077255045 $ 734.00 1893 077255010 $ 446.00 1893 077255046 $ 734.00 1893 077255011 $ 446.00 1893 077255047 $ 734.00 1893 077255012 $ 446.00 1893 077255048 $ 734.00 1893 077255013 $ 446.00 1893 077255049 $ 734.00 1893 077255014 $ 446.00 1893 077255050 $ 734.00 1893 077255015 $ 734.00 1893 077255051 $ 734.00 1893 077255016 $ 734.00 1893 077255052 $ 734.00 1893 077255017 $ 734.00 1893 077255053 $ 734.00 1893 077255018 $ 734.00 1893 077255054 $ 734.00 1893 077255019 $ 734.00 1893 077255055 $ 734.00 1893 077255020 $ 734.00 1893 077255056 $ 734.00 1893 077255021 $ 734.00 1893 077255057 $ 734.00 1893 077255022 $ 734.00 1893 077255058 $ 734.00 1893 077255023 $ 734.00 1893 077255059 $ 734.00 1893 077255024 $ 734.00 1893 077255060 $ 734.00 1893 077255027 $ 734.00 1893 077255061 $ 734.00 1893 077255028 $ 734.00 1893 077255062 $ 734.00 1893 077255029 $ 734.00 1893 077255063 $ 734.00 1893 077255030 $ 734.00 1893 077255064 $ 734.00 1893 077255031 $ 734.00 1893 077255065 $ 734.00 1893 077255032 $ 734.00 1893 077255066 $ 734.00 1893 077255033 $ 734.00 1893 077255067 $ 734.00 1893 077255034 $ 734.00 1893 077255068 $ 734.00 1893 077255035 $ 734.00 1893 077255036 $ 734.00 TOTAL $ 43,966.00 1893 077255037 $ 734.00 Page 212 of 673 ATTACHMENT 2 RESOLUTION NO. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ARROYO GRANDE DIRECTING THE LEVY OF THE ANNUAL ASSESSMENTS RELATED TO THE GRACE LANE ASSESSMENT DISTRICT PURSUANT TO THE LANDSCAPING AND LIGHTING ACT OF 1972 (STREETS AND HIGHWAYS CODE SECTIONS 22500 ET. SEQ.) FOR FISCAL YEAR 2022-2023 WHEREAS, on November 28, 2006, the City Council of the City of Arroyo Grande adopted Resolution No. 3976 ordering the formation of the Grace Lane Assessment District under Part 2 of Division 15 of the California Streets and Highways Code 22500- 22679 (Landscape and Lighting Act of 1972), which allows local governmental agencies to form assessment districts for the purpose of financing the costs and expenses of landscaping and lighting public areas; and WHEREAS, the City Council, at its meeting of May 10, 2022, approved Resolution No. 5183 approving the Engineer’s Report and declaring its intention to levy and collect annual assessments for the Grace Lane Assessment District for Fiscal Year 2022-2023 and set a public hearing for June 14, 2022 for the Grace Lane Assessment District; and WHEREAS, a public hearing to levy the annual assessment of the Parkside Village Assessment District was held June 14, 2022 at the City Council Chambers, 215 E. Branch Street, Arroyo Grande, California, 93420 and the City Council took public testimony from all interested persons as to the levy of the annual assessment for the Parkside Village Assessment District; and WHEREAS, pursuant to Streets and Highways Code Section 22130, the Ci ty Council is authorized to levy this assessment; and WHEREAS, pursuant to Streets and Highways Code Section 22646, the assessments herein confirmed by the City Council shall be collected on the secured property tax roll and collected at the same time and in the same manner as County taxes are collected. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Arroyo Grande, as follows: 1. The foregoing recitals are true and correct and are incorporated herein. 2. The annual levy for the maintenance of Grace Lane Assessment District, located as shown in the approved Engineer’s Report for the Grace Lane Assessment District is hereby ordered and the assessment of $460 or $608 per parcel for the Fiscal Year 2022-2023 as indicated on Exhibit “A” attached hereto and incorporated herein by this reference, is hereby confirmed. Page 213 of 673 RESOLUTION NO. PAGE 2 3. Adoption of this Resolution shall constitute the levy of an assessment for Fiscal Year 2022-2023 and the City Clerk shall file the diagram and assessments with the County of San Luis Obispo Auditor. 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 14th day of June, 2022. Page 214 of 673 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 215 of 673 Exhibit A SAN LUIS OBISPO COUNTY TAX SYSTEM TRACT 2236 ASSESSMENTS FOR TAX ROLL YEAR 2022-23 FUND ASSESSMENT # CHARGE 1895 007019002 $ 460.00 1895 007019003 $ 460.00 1895 007019004 $ 460.00 1895 007019005 $ 460.00 1895 007019006 $ 460.00 1895 007019007 $ 460.00 1895 007019008 $ 460.00 1895 007019035 $ 460.00 1895 007019036 $ 460.00 1895 007019037 $ 460.00 1895 007019012 $ 460.00 1895 007019014 $ 460.00 1895 007019015 $ 460.00 1895 007019016 $ 460.00 1895 007019017 $ 460.00 1895 007019034 $ 608.00 1895 007019033 $ 608.00 1895 007019025 $ 608.00 1895 007019030 $ 608.00 TOTAL $ 9,332.00 Page 216 of 673 ATTACHMENT 3 RESOLUTION NO. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ARROYO GRANDE DIRECTING THE LEVY OF THE ANNUAL ASSESSMENTS RELATED TO THE ARROYO GRANDE LANDSCAPING AND LIGHTING ASSESSMENT DISTRICT NO. 1, WITHIN TRACT 1769, PURSUANT TO THE LANDSCAPING AND LIGHTING ACT OF 1972 (STREETS AND HIGHWAYS CODE SECTIONS 22500 ET. SEQ.) FOR FISCAL YEAR 2022-2023 WHEREAS, on June 9, 1992, the City Council of the City of Arroyo Grande adopted Resolution No. 2932 ordering the formation of the Arroyo Grande Landscaping and Lighting Assessment District No. 1 (“District”), within Tract 1769 under Part 2 of Division 15 of the California Streets and Highways Code 22500-22679 (Landscape and Lighting Act of 1972), which allows local governmental agencies to form assessment dist ricts for the purpose of financing the costs and expenses of landscaping and lighting public areas; and WHEREAS, the City Council, at its meeting of May 10, 2022, approved Resolution No. 5184 approving the Engineer’s Report and declaring its intention to levy and collect annual assessments for the District for Fiscal Year 2022-2023 and set a public hearing for June 14, 2022 for the District; and WHEREAS, a public hearing to levy the annual assessment of the Parkside Village Assessment District was held June 14, 2022 at the City Council Chambers, 215 E. Branch Street, Arroyo Grande, California, 93420 and the City Council took public testimony from all interested persons as to the levy of the annual assessment for the Parkside Village Assessment District; and WHEREAS, pursuant to Streets and Highways Code Section 22130, the City Council is authorized to levy this assessment; and WHEREAS, pursuant to Streets and Highways Code Section 22646, the assessments herein confirmed by the City Council shall be collected on the secured tax roll and collected at the same time and in the same manner as County taxes are collected. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Arroyo Grande, as follows: 1. The foregoing recitals are true and correct and are incorporated herein. 2. The annual levy for the maintenance of District, located as shown in the approved Engineer’s Report for the District is hereby ordered and the assessment of $3,000 to be equally distributed per assessable parcel for the Page 217 of 673 RESOLUTION NO. PAGE 2 Fiscal Year 2022-2023 as indicated on Exhibit “A” attached hereto and incorporated herein by this reference, is hereby confirmed. 3. Adoption of this Resolution shall constitute the levy of an assessment for Fiscal Year 2022-2023 and the City Clerk shall file the diagram and assessments with the County of San Luis Obispo Auditor. 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 14th day of June, 2022. Page 218 of 673 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 219 of 673 Exhibit A SAN LUIS OBISPO COUNTY TAX SYSTEM TRACT 1769 ASSESSMENTS FOR TAX ROLL YEAR 2022-23 FUND ASSESSMENT # CHARGE 1765 077253001 $ 100.00 1765 077253002 $ 100.00 1765 077253003 $ 100.00 1765 077253004 $ 100.00 1765 077253005 $ 100.00 1765 077253006 $ 100.00 1765 077253007 $ 100.00 1765 077253008 $ 100.00 1765 077253009 $ 100.00 1765 077253010 $ 100.00 1765 077253011 $ 100.00 1765 077253012 $ 100.00 1765 077253013 $ 100.00 1765 077253014 $ 100.00 1765 077253015 $ 100.00 1765 077253016 $ 100.00 1765 077253017 $ 100.00 1765 077253018 $ 100.00 1765 077253019 $ 100.00 1765 077253020 $ 100.00 1765 077253021 $ 100.00 1765 077253022 $ 100.00 1765 077253023 $ 100.00 1765 077253024 $ 100.00 1765 077253025 $ 100.00 1765 077253026 $ 100.00 1765 077253027 $ 100.00 1765 077253028 $ 100.00 1765 077253029 $ 100.00 1765 077253030 $ 100.00 TOTAL $ 3,000.00 Page 220 of 673 ITEM 9.b.: Attachment 4 – May 10, 2022 Staff Report and Attachments Attachment 4 is available as a link: https://pub-arroyogrande.escribemeetings.com/filestream.ashx?DocumentId=2542 https://pub-arroyogrande.escribemeetings.com/filestream.ashx?DocumentId=2543 https://pub-arroyogrande.escribemeetings.com/filestream.ashx?DocumentId=2544 https://pub-arroyogrande.escribemeetings.com/filestream.ashx?DocumentId=2545 https://pub-arroyogrande.escribemeetings.com/filestream.ashx?DocumentId=2546 https://pub-arroyogrande.escribemeetings.com/filestream.ashx?DocumentId=2547 https://pub-arroyogrande.escribemeetings.com/filestream.ashx?DocumentId=2548 Page 221 of 673 Item 9.c. MEMORANDUM TO: City Council FROM: Brian Pedrotti, Community Development Director BY: Andrew Perez, Planning Manager SUBJECT: Continued Discussion and Consideration of the 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: June 14, 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). SB 9 can be broken into two primary components: 1) provisions that allow subdivisions of a single-family zoned lot into two lots; and 2) provisions that allow construction of two units on a single-family zoned property (“two-unit development”). Lot splits proposed under the provisions of SB 9 are referred to as Urban Lot Splits (ULS). These provisions can be used in concert, so that an applicant could subdivide an existing parcel and build two units on each parcel. 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 222 of 673 Item 9.c. City Council Continued Discussion and Consideration of the 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 June 14, 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 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). The changes proposed by the Commission included allowances for more units and larger units, a more permissive height limit, an elimination of parking requirements, and allowance for accessory dwelling units (ADUs) on lots created through SB 9. City Council Introduction of the draft Ordinance was considered by the Council at a public hearing on May 24, 2022 (Attachment 6). While Council expressed appreciation for the Planning Commission’s recommendations meant to encourage SB 9 development, Council also expressed concerns with potential impacts related to privacy, parking, and increased density in certain neighborhoods. As a result, Council requested certain changes to the proposed Ordinance to address these concerns, including revisions to the number of units allowed by the Ordinance, maximum size, height restrictions, parking requirements, and a prohibition of rooftop decks, which are discussed in more detail below. Page 223 of 673 Item 9.c. City Council Continued Discussion and Consideration of the 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 June 14, 2022 Page 3 ANALYSIS OF ISSUES: Number of Units SB 9 requires agencies to ministerially approve housing developments consisting of two residential units within a single-family residential zone, if developed pursuant to the provisions of the legislation. 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. 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 that proposes both an ULS and two- unit development. The draft Ordinance provided to the City Council on March 22, 2022 recommended a four unit maximum for parcels that were created through an ULS; a two- unit development and up to two ADUs or JADUs. The recommendation from the Planning Commission, on the other hand, would allow either an ADU or JADU on lots created through a ULS, in addition to a two-unit development, resulting in as many as six (6) units on the original single family lot (three units total on each ULS lot). This would increase the maximum number of units allowed between the two lots from four units, the minimum required by SB 9, to six units. During the discussion on May 24, 2022, Council agreed that, in certain circumstances, a six unit maximum is appropriate but should be limited to parcels of a certain size. Staff recommends minimum lot sizes of 10,000 square feet, after subdivision via ULS, for development of up to six units. Using Floor-Area Ratio (FAR) as the limiting factor for size of the units, a 10,000 square foot lot could be developed with two 2,125 square foot primary dwellings and a 750 square foot ADU. A minimum lot size of 10,000 square feet means the original parcel to be subdivided would need to be at least 20,000 square feet, making all parcels in the Residential Estate, Residential Hillside, and Residential Rural zones, and select parcels in the Residential Suburban zone, eligible to develop up to six units after an ULS. Objective Design Standards The legislation allows the City to adopt objective development standards for SB 9 projects. In addition to the mandatory development standards regarding four-foot side and rear yard setbacks and allowances for construction of attached units, the draft Ordinance provided to Council on March 22, 2022, included objective design standards to regulate size, height, building separation, and aesthetics. After receiving feedback from the ARC, Planning Commission, and Council, the draft Ordinance has been revised to use established FAR maximums as the limiting factor for unit size. Relying on the established FAR limits ensures SB 9 units will be consistent with the pattern of development anticipated by the Municipal Code in regards to size. Existing FAR maximums found in AGMC 16.32.050 are summarized in Table 1. Page 224 of 673 Item 9.c. City Council Continued Discussion and Consideration of the 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 June 14, 2022 Page 4 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 SB 9 establishes that city-imposed design standards may not preclude the construction of at least two units of at least 800 square feet each. Therefore, the proposed Ordinance provided in Attachment 1 provides that the FAR limits listed in Table 1 may be exceeded if they would not allow two 800 square-foot units. Height At the study session held on March 22, 2022, Council was undecided about whether a 16-foot height limit would be appropriate. To provide flexibility, the ARC recommended a height standard that 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 this proposed height standard overly restrictive and, therefore, recommended a height limit of 30 feet, consistent with the height limit of all single-family zones. Council discussed the topic of height limits for these projects on May 24, 2022, and expressed concern that the combination of the reduced side and rear setbacks allowed by SB 9 and a 30 -foot height limit is likely to result in development that is incompatible with existing neighborhoods. Council directed staff to revert to the flexible height limitation that was suppor ted by the ARC. The flexible height standard limits building height to 16 feet when it is located within the setback of the underlying zoning district, and up to 30 feet in areas outside the underlying setbacks. In addition, the proposed Ordinance provided in Attachment 1 prohibits rooftop decks on SB 9 projects, as directed by Council. Parking 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. Planning Commission discussed the issue of parking and was in favor of eliminating the covered parking requirement for SB 9 units because of the additional costs and land assoc iated with a garage or carport. The Planning Commission recommendation to Council included removing parking requirements from the draft ordinance as another way to incentivize SB 9 development. Council agreed with Planning Commission that a requirement for covered parking may be a barrier to development, but determined that parking should still be required for SB 9 units. As a result, Council directed staff to revise the parking requirement Page 225 of 673 Item 9.c. City Council Continued Discussion and Consideration of the 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 June 14, 2022 Page 5 to one uncovered parking space for each unit. The proposed Ordinance provided in Attachment 1 includes this requirement. Next Steps The proposed Ordinance has been revised consistent with the direction provided by the City Council on May 24, 2022, and is now ready for i ntroduction. Adoption of the Ordinance is proposed to occur at the next Council meeting on June 28, 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: 1. Introduce the attached Ordinance approving Development Code Amendment 2 1- 002; 2. Modify as appropriate and introduce the modified 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 potentially significant development under SB 9 and help achieve progress towards meeting the housing goals established in the City’s Housing Element. DISADVANTAGES: The reduced setbacks and development 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 21000) 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. Council continued the introduction hearing to June Page 226 of 673 Item 9.c. City Council Continued Discussion and Consideration of the 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 June 14, 2022 Page 6 14, 2022, therefore a Notice of Continuance was published on May 31, 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. Staff Report and Draft Minutes from May 24, 2022 City Council meeting Page 227 of 673 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 (DEVELOPMENT CODE AMENDMENT 2-1-002) WHEREAS, on September 16, 2021, Governor Gavin Ne wsom 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 Arroy o 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 Reg ulations 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 Page 228 of 673 ORDINANCE NO. PAGE 2 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 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 pertinent testimony and the staff report, its attachments and all supporting materials referenced therein or offered in the matter as presented at the pub lic 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 Sp lits A. Purpose and Scope 1. This Section implements Government Code section 66411.7 to provide an owner of property in a 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. Developme nt 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. Page 229 of 673 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 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; k. Name and dimensions, including right-of-way and improved area, of public and private streets or public alleys adjoining the parcel; l. Curb, gutter, sidewalk, parkway, and street trees: type, location, and dimensions; m. Location of existing or proposed driveway dimensions, materials, and slope (including cross slope); and n. 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 230 of 673 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 wit hdraw 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 ex ercise 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 in 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 limi ted 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 to a developed drainage easement or in accordance with the City’s Standard Specification and Engineering Standards. Page 231 of 673 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, o r 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 pur pose. 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 .1, above. Lot depth shall be measured at the midpoint of the front lo t 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 Page 232 of 673 ORDINANCE NO. PAGE 6 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, o r 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; Page 233 of 673 ORDINANCE NO. PAGE 7 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 rental of any dwelling unit on a lot created by the parcel map shall not be less than 31 consecutive days, nor shall rent al 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 234 of 673 ORDINANCE NO. PAGE 8 2. A building permit for development on an urban lot split c annot 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 1. 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 Californ ia, and designated on the maps prepared by the Farmland Mapping and Monitoring Program of the Department of Conservation; Page 235 of 673 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 developme nt 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. Page 236 of 673 ORDINANCE NO. PAGE 10 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. 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 i s 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 comply with other applicable construction permit requirements prior to the construction of the dwelling units. D. 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. Page 237 of 673 ORDINANCE NO. PAGE 11 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 A GMC Section 16.52.150, Accessory Dwelling Units, may be proposed in addition to the two units constructed pursuant to this Section. One accessory dwelling unit may be added to a lot created through an Urban Lot Split , but only if the resulting lot is larger than 10,000 square feet in size. E. Parking. 1. No parking shall be required for dwelling units developed pursuant to this Section. 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. All required parking spaces, driveways, and maneuvering areas shall be paved and permanently maintained with asphalt or concrete to applicable requirements. F. 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 . G. 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 Page 238 of 673 ORDINANCE NO. PAGE 12 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. The maximum height of a unit developed pursuant to this Section 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 the design standards established by Subsection D of Section 16.48.180 of this Title are not allowed. 2. Colors and Materials. a. The primary cladding shall be stone, brick, fiber cement, co mposite 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 col or 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 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 239 of 673 ORDINANCE NO. PAGE 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. SECTION 4. The adoption of this Ordinance is not considered a project, therefore is statutorily exempt from the requirements of California Environmental Quali ty 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 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 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 240 of 673 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 241 of 673 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 242 of 673 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 243 of 673 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 244 of 673 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 245 of 673 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 246 of 673 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 247 of 673 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 248 of 673 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 249 of 673 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 250 of 673 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 251 of 673 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 252 of 673 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 253 of 673 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 254 of 673 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 255 of 673 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 256 of 673 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 257 of 673 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 258 of 673 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 259 of 673 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 260 of 673 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 261 of 673 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 262 of 673 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 263 of 673 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 264 of 673 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 265 of 673 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 266 of 673 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 267 of 673 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 268 of 673 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 269 of 673 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 270 of 673 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 271 of 673 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 272 of 673 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 273 of 673 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 274 of 673 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 275 of 673 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 276 of 673 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 277 of 673 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 278 of 673 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 279 of 673 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 280 of 673 RESOLUTION NO. PAGE 2 the foregoing Resolution was adopted this 3rd day of May, 2022. Page 26 of 86Page 281 of 673 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 282 of 673 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 283 of 673 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 284 of 673 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 285 of 673 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 286 of 673 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 287 of 673 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 288 of 673 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 289 of 673 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 290 of 673 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 291 of 673 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 292 of 673 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 293 of 673 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 294 of 673 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 295 of 673 RESOLUTION NO. PAGE 17 Page 41 of 86Page 296 of 673 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 297 of 673 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 298 of 673 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 299 of 673 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 300 of 673 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 301 of 673 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 302 of 673 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 303 of 673 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 304 of 673 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 305 of 673 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 306 of 673 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 307 of 673 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 308 of 673 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 309 of 673 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 310 of 673 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 311 of 673 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 312 of 673 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 313 of 673 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 314 of 673 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 315 of 673 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 316 of 673 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 317 of 673 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 318 of 673 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 319 of 673 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 320 of 673 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 321 of 673 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 322 of 673 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 323 of 673 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 324 of 673 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 325 of 673 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 326 of 673 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 327 of 673 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 328 of 673 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 329 of 673 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 330 of 673 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 331 of 673 RESOLUTION NO.22-2361 PAGE 2 the foregoing Resolution was adopted this 3rd day of May, 2022. Page 332 of 673 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 333 of 673 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 334 of 673 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 335 of 673 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 336 of 673 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 337 of 673 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 338 of 673 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 339 of 673 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 340 of 673 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 341 of 673 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 342 of 673 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 343 of 673 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 344 of 673 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 345 of 673 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 346 of 673 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 347 of 673 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 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 172 of 416 ATTACHMENT 6 Page 348 of 673 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 173 of 416Page 349 of 673 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 174 of 416Page 350 of 673 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 175 of 416Page 351 of 673 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 176 of 416Page 352 of 673 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 177 of 416Page 353 of 673 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 178 of 416Page 354 of 673 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 179 of 416Page 355 of 673 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 180 of 416Page 356 of 673 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 181 of 416Page 357 of 673 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 182 of 416Page 358 of 673 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 183 of 416Page 359 of 673 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 184 of 416Page 360 of 673 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 185 of 416Page 361 of 673 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 186 of 416Page 362 of 673 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 187 of 416Page 363 of 673 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 188 of 416Page 364 of 673 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 189 of 416Page 365 of 673 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 190 of 416Page 366 of 673 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 191 of 416Page 367 of 673 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 192 of 416Page 368 of 673 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 193 of 416Page 369 of 673 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 194 of 416Page 370 of 673 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 195 of 416Page 371 of 673 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 196 of 416Page 372 of 673 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 197 of 416Page 373 of 673 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 198 of 416Page 374 of 673 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 199 of 416Page 375 of 673 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 200 of 416Page 376 of 673 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 201 of 416Page 377 of 673 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 202 of 416Page 378 of 673 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 203 of 416Page 379 of 673 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 204 of 416Page 380 of 673 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 205 of 416Page 381 of 673 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 206 of 416Page 382 of 673 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 207 of 416Page 383 of 673 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 208 of 416Page 384 of 673 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 209 of 416Page 385 of 673 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 210 of 416Page 386 of 673 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 211 of 416Page 387 of 673 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 212 of 416Page 388 of 673 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 213 of 416Page 389 of 673 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 214 of 416Page 390 of 673 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 215 of 416Page 391 of 673 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 216 of 416Page 392 of 673 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 217 of 416Page 393 of 673 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 218 of 416Page 394 of 673 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 219 of 416Page 395 of 673 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 220 of 416Page 396 of 673 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 221 of 416Page 397 of 673 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 222 of 416Page 398 of 673 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 223 of 416Page 399 of 673 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 224 of 416Page 400 of 673 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 225 of 416Page 401 of 673 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 226 of 416Page 402 of 673 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 227 of 416Page 403 of 673 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 228 of 416Page 404 of 673 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 229 of 416Page 405 of 673 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 230 of 416Page 406 of 673 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 231 of 416Page 407 of 673 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 232 of 416Page 408 of 673 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 233 of 416Page 409 of 673 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 234 of 416Page 410 of 673 RESOLUTION NO. PAGE 2 the foregoing Resolution was adopted this 3rd day of May, 2022. Page 26 of 86Page 235 of 416Page 411 of 673 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 236 of 416Page 412 of 673 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 237 of 416Page 413 of 673 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 238 of 416Page 414 of 673 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 239 of 416Page 415 of 673 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 240 of 416Page 416 of 673 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 241 of 416Page 417 of 673 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 242 of 416Page 418 of 673 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 243 of 416Page 419 of 673 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 244 of 416Page 420 of 673 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 245 of 416Page 421 of 673 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 246 of 416Page 422 of 673 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 247 of 416Page 423 of 673 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 248 of 416Page 424 of 673 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 249 of 416Page 425 of 673 RESOLUTION NO. PAGE 17 Page 41 of 86Page 250 of 416Page 426 of 673 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 251 of 416Page 427 of 673 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 252 of 416Page 428 of 673 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 253 of 416Page 429 of 673 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 254 of 416Page 430 of 673 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 255 of 416Page 431 of 673 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 256 of 416Page 432 of 673 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 257 of 416Page 433 of 673 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 258 of 416Page 434 of 673 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 259 of 416Page 435 of 673 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 260 of 416Page 436 of 673 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 261 of 416Page 437 of 673 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 262 of 416Page 438 of 673 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 263 of 416Page 439 of 673 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 264 of 416Page 440 of 673 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 265 of 416Page 441 of 673 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 266 of 416Page 442 of 673 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 267 of 416Page 443 of 673 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 268 of 416Page 444 of 673 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 269 of 416Page 445 of 673 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 270 of 416Page 446 of 673 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 271 of 416Page 447 of 673 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 272 of 416Page 448 of 673 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 273 of 416Page 449 of 673 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 274 of 416Page 450 of 673 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 275 of 416Page 451 of 673 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 276 of 416Page 452 of 673 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 277 of 416Page 453 of 673 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 278 of 416Page 454 of 673 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 279 of 416Page 455 of 673 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 280 of 416Page 456 of 673 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 281 of 416Page 457 of 673 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 282 of 416Page 458 of 673 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 283 of 416Page 459 of 673 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 284 of 416Page 460 of 673 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 285 of 416Page 461 of 673 RESOLUTION NO.22-2361 PAGE 2 the foregoing Resolution was adopted this 3rd day of May, 2022. Page 286 of 416Page 462 of 673 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 287 of 416Page 463 of 673 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 288 of 416Page 464 of 673 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 289 of 416Page 465 of 673 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 290 of 416Page 466 of 673 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 291 of 416Page 467 of 673 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 292 of 416Page 468 of 673 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 293 of 416Page 469 of 673 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 294 of 416Page 470 of 673 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 295 of 416Page 471 of 673 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 296 of 416Page 472 of 673 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 297 of 416Page 473 of 673 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 298 of 416Page 474 of 673 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 299 of 416Page 475 of 673 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 300 of 416Page 476 of 673 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 301 of 416Page 477 of 673 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 302 of 416Page 478 of 673 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 303 of 416Page 479 of 673 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 304 of 416Page 480 of 673 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 305 of 416Page 481 of 673 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 306 of 416Page 482 of 673 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 307 of 416Page 483 of 673 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 308 of 416Page 484 of 673 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 309 of 416Page 485 of 673 ATTACHMENT 7 San Luis Obispo County Important Farmland 2018 Source: California Department of Conservation Page 310 of 416Page 486 of 673 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 311 of 416Page 487 of 673 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 312 of 416Page 488 of 673 MEMORANDUM TO: City Council FROM: Andrew Perez, Planning Manager SUBJECT: Supplemental Information Agenda Item 9.b – May 24, 2022 City Council Meeting 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 This supplemental memo contains revisions, shown in redline, to the draft ordinance made after the publication of the agenda. cc: City Manager Assistant City Manager/Public Works Director Community Development Director City Attorney City Clerk City Website (or public review binder) Page 313 of 416Page 489 of 673 ORDINANCE NO. PAGE 2 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 314 of 416Page 490 of 673 ORDINANCE NO. PAGE 3 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 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. 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 single-family zoning districts 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. Page 315 of 416Page 491 of 673 ORDINANCE NO. PAGE 4 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; 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 316 of 416Page 492 of 673 ORDINANCE NO. PAGE 5 (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 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. Page 317 of 416Page 493 of 673 ORDINANCE NO. PAGE 6 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 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. Page 318 of 416Page 494 of 673 ORDINANCE NO. PAGE 7 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 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. Page 319 of 416Page 495 of 673 ORDINANCE NO. PAGE 8 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 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. Page 320 of 416Page 496 of 673 ORDINANCE NO. PAGE 9 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: 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; Page 321 of 416Page 497 of 673 ORDINANCE NO. PAGE 10 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. 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 322 of 416Page 498 of 673 ORDINANCE NO. PAGE 11 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 323 of 416Page 499 of 673 ORDINANCE NO. PAGE 12 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 the design standards established by Subsection D of 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 the exception of permitted driveways. When parking areas are located in the front yard, Page 324 of 416Page 500 of 673 ORDINANCE NO. PAGE 13 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 325 of 416Page 501 of 673 ORDINANCE NO. PAGE 14 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 326 of 416Page 502 of 673 ORDINANCE NO. PAGE 15 ___________________________________ 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 327 of 416Page 503 of 673 MEMORANDUM TO: City Council FROM: Jessica Matson, Legislative & Information Services Director/City Clerk SUBJECT: Supplemental Information Agenda Item 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 DATE: May 24, 2022 Attached is correspondence received before 4 p.m. for the above referenced item. cc: City Manager Assistant City Manager/Public Works Director Community Development Director City Attorney City Clerk City Website (or public review binder) Page 328 of 416Page 504 of 673 From:Jim Guthrie To:Caren Ray Russom; Jimmy Paulding; Kristen Barneich; Lan George; Keith Storton Cc:Jessica Matson; Brian Pedrotti Subject:SB9 Date:Sunday, May 22, 2022 5:30:28 PM Mayor and Council Members: You probably know that I was the no vote at Planning Commission on the recommendations for implementation of SB9. My primary concern was eliminating any required parking. SB9’s one space per unit is already a 50% reduction from our current standards. While it’s possible that residents of these units would not have any autos, I think it’s a fair bet that 99% of them would still need or want a car. While I understand my collages desire to make these units as buildable as possible the 6 cars possible in just one of these developments could take up the remaining street parking on a number of streets in our single-family zoned neighborhoods. An alternative would be to allow parking (but no structure) in the 10-foot buffer area behind the sidewalk. This would cut the parking foot print in half by eliminating the need for an approved drive way to access the parking space on site. There are many neighborhoods where most driveways already have a full driveway due to the inaccessibility of the garage. While I think most of these lot splits will be used to add a single additional single-family home for sale (not even a duplex) allowing the ADU as a possible 3rd unit increases the opportunity develop small scale rental units to meet the “missing middle” aspiration of SB9. Jim Guthrie Page 329 of 416Page 505 of 673 From:Janie L To:public comment Subject:SB9 Accept "As is" PLEASE Date:Tuesday, May 24, 2022 2:51:52 PM "Dear City Staff and Council Members, Elderly are being thrown out of their homes, some cannot find parking for their RV’s. Young people cannot afford to live here. There are homeless students in the colleges. Large lower income families with children have no place to live if income is not high enough to meet rising expenses. Often not enough homeless shelter beds and many fear living there. I personally know of people leaving here, some have lived their lives and some want to come and live here for elderly family members. If we don’t preserve “Diversity, Equity, and Inclusion, as well as honoring the Regional Housing and Infrastructure Compact as already agreed upon in 2019” , then we are self- absorbed and not representative of “All”. If SB9 is not accepted “As Is”, we are not only selfish and uncaring but w/o workers who cannot afford to live here. This then becomes quite a mess for all who need helpers, handymen and employees-- not to mention the homeless situation and need for Mental Health Services where most people focus upon, thinking they are the “only” problem. In Santa Cruz there were actually people trained in certain housing units to help these people along, but where we our areas is being overtaken by rich retirees, they are being taken over by the Silicon Valley and many are moving out. Not knowing the situation here and always taking my kids to Spooners Cove and our Village for years, I moved here for that very same reason. . But yes, our entire state is in a shambles and we need to do more. This is indeed a different world, but cannot put our heads in the sand. There are a lot of “rumors” going on bribes are being accepted by large construction companies and some have been pardoned from granting housing to those in need as was originally established for lesser payments. I am new here and do not “yet” know the details or truth in all these matters, but am learning and just pray there is some decency amongst all individuals and parties showing “how” to come together and make this a better place for those in horrific need as well as lower income individuals who can continue to work here. I might add this is a medically underserved area which I used to designate back east. Physicians out of medical school also cannot afford to live here. This is another issue that needs to be addressed separately but it just demonstrates the diversity of affordable living. It would also help if the City could help us convert our garages to make studio homes for retirees like ourselves, etc. in larger numbers. But for now, please Accept SB9 “As Is” and thank you. I have been helping as many people as I can but this issue is way larger than individual needs. I might add I have friends from both parties and all my friends want to see something done. Many are concerned their neighborhoods will be hit with housing and values go down. But with all the thefts and homelessness that is already happening. That is why I think it would be great if many of us started conversions in addition to supporting this legislation. Problem is I cannot afford it but could take the income and give back to whoever helps me government wise do such a thing. We ALL have to do something. Thanks you. Your positions are not easy. Page 330 of 416Page 506 of 673 Sincerely, Jane (Janie) Leikind Arroyo Grande CA 93420 Page 331 of 416Page 507 of 673 From:Katipoo B To:public comment Subject:SB9 Date:Tuesday, May 24, 2022 11:32:42 AM Dear City Staff and Council Members, I'm worried about how expensive housing has become in our community. Staff and commissions have put some real thought into the proposals for SB9 and I strongly urge you to accept it as-is. We can preserve our neighborhoods and create the housing we need if we work with state laws, instead of against them. Getting these homes built is a major part of your city council's goal of Diversity, Equity, and Inclusion, as well as honoring the Regional Housing and Infrastructure Compact all the cities and the County Board agreed to in 2019. Please approve the proposed ordinance!" PLEASE! I spend Over 60% of my takehome income on rent - only to live in a total dump, but there's absolutely No Opportunity to Move - unless I move out of the area...I don't think my employer would like that very much. FYI - I make $56k annually Before taxes. Kate Brennan Page 332 of 416Page 508 of 673 From:RL Mann To:public comment Subject:Yes to approve revised SB9 ordinance Date:Tuesday, May 24, 2022 12:53:25 PM Dear Councilmembers, The SB9 ordinance before you is much improved from the first draft we read a few months ago. I am particularly glad to see it extended to all six zonings that were formerly restricted to a detached single-unit home. And I'm glad to see height limit parity. It's a good thing when neighbors like those of my friend Alice up on Hillcrest Drive have the flexibility to create housing for extended family and new neighbors in their own back, side, or front yard. It's a good thing to allow more energy-, water-, and cost-efficient construction like duplexes. It's a good thing for the environment to build homes in and up, rather than out and away. It saves farmland and greenspace and reduces car trips. And it's a good thing financially for cities to allow a few more people in to share the cost of services, rather than continually raising taxes on the folks already here. I urge you to have confidence and courage, and to vote to approve this ordinance as presented. Sincerely, Rachel Mann Grover Beach Page 333 of 416Page 509 of 673 From: To:public comment Subject:Housing SB9 Date:Tuesday, May 24, 2022 11:57:53 AM Dear City Staff and Council Members, I'm worried about how expensive housing has become in our community. Staff and commissions have put some real thought into the proposals for SB9 and I strongly urge you to accept it as-is. We can preserve our neighborhoods and create the housing we need if we work with state laws, instead of against them. Getting these homes built is a major part of your city council's goal of Diversity, Equity, and Inclusion, as well as honoring the Regional Housing and Infrastructure Compact all the cities and the County Board agreed to in 2019. Please approve the proposed ordinance! Victoria Ramos Page 334 of 416Page 510 of 673 1 ACTION MINUTES REGULAR MEETING OF THE CITY COUNCIL May 24, 2022, 6:00 p.m. Hybrid City Council Chamber/Virtual Zoom Meeting 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 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 Regular City Council Meeting to order at 6:00 p.m. 2. ROLL CALL City Clerk Matson performed roll call. 3. MOMENT OF REFLECTION 4. FLAG SALUTE Arroyo Grande Optimist International led the flag salute. 5. AGENDA REVIEW There was Council consensus to move Item 9.b. to the end of the agenda. 5.a Closed Session Announcements City Attorney Carmel announced that there was no reportable action. 5.b Ordinances read in title only Page 511 of 673 2 Moved by Mayor Ray Russom Seconded by Council Member Barneich Move that all ordinances presented at the meeting shall be read by title only and all further readings be waived. AYES (5): Mayor Ray Russom, Mayor Pro Tem George, Council Member Barneich, Council Member Paulding, and Council Member Storton Passed (5 to 0) 6. SPECIAL PRESENTATIONS 6.a Update Regarding Countywide COVID-19 Efforts City Manager McDonald provided a brief update on COVID-19 and the County "Test to Treat" services. 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 provided information regarding submittal of the application for Multi- Model Project Discretionary Grant for the Brisco Halcyon Interchange Project; and 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 June 2022 as “Pride Month” Mayor Ray Russom read the Honorary Proclamation Declaring June 2022 as "Pride Month". Denise Andrade, 5 Cities Hope, accepted the proclamation. Mayor Ray Russom invited public comment. No public comments were received. No action was taken on this item. 6.d Honorary Proclamation Recognizing June 19, 2022 as "Juneteenth Day" in Arroyo Grande Mayor Ray Russom read the Honorary Proclamation Recognizing June 19, 2022 as "Juneteenth Day" in Arroyo Grande. Cheryl Vines, NAACP, accepted the proclamation. Mayor Ray Russom invited public comment. No public comments were received. No action was taken on this item. 6.e Honorary Proclamation Declaring June 3, 2022 as “Hunger Awareness Day” Mayor Ray Russom read the Honorary Proclamation Declaring June 3, 3033 as "Hunger Awareness Day". Branna Still, SLO Food Bank, accepted the proclamation. Page 512 of 673 3 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 were Phil Dollman, and Greg Steinberger. 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. There were none. Mayor Ray Russom invited public comment. Speaking from the public were Scott Kohlbush, and Garrett Philibin. No further public comments were received. Council provided comments on Items 8.e. and 8.i. Moved by Council Member Barneich Seconded by Mayor Pro Tem George Approve Consent Agenda Items 8.a. through 8.i., with the recommended courses of action. 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 attached listing of cash disbursements for the period of April 16 through April 30, 2022. 8.b Approval of Minutes Approved 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 1) Adopted a Resolution entitled: "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"; 2) Adopted a Resolution entitled: "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"; and 3) Adopted a Resolution entitled: "A RESOLUTION OF THE CITY COUNCIL OF THE Page 513 of 673 4 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". . 8.d Consideration of Adoption of a Resolution Declaring a Continued Local Emergency Related to the Coronavirus (COVID-19) Pandemic 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". 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 Authorized 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 Authorized 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 Cities of San Luis Obispo County, California Adopted a Resolution entitled: "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". 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 Adopted a Resolution entitled: "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" 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 Received and filed the monthly Water Supply and Demand Report. 9. PUBLIC HEARINGS Page 514 of 673 5 9.a Public Hearing to Consider a Resolution Levying an Annual Assessment for the Arroyo Grande Tourism Business Improvement District (AGTBID) City Manager McDonald presented the staff report and Administrative Services Director Valentine responded to questions from Council. Mayor Ray Russom opened the public hearing. Speaking from the public were Gaea Powell, and Annie Ashbrook. Upon hearing no further public comments, Mayor Ray Russom closed the public hearing. Moved by Council Member Storton Seconded by Council Member Paulding 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 entitled: "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". AYES (5): Mayor Ray Russom, Mayor Pro Tem George, Council Member Barneich, Council Member Paulding, and Council Member Storton Passed (5 to 0) 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 This item was heard after Item 11.b. Mayor Ray Russom called for a brief break at 8:09 p.m. The Council reconvened at 8:15 p.m. Community Development Director Pedrotti presented the staff report and responded to questions from Council. Mayor Ray Russom opened the public hearing. Speaking from the public were Rachel Mann, Garrett Philbin, Krista Bandy, and Kevin Buchanan. Upon hearing no further public comments, Mayor Ray Russom closed the public hearing. Moved by Mayor Ray Russom Seconded by Council Member Barneich Continue the item to a date certain of June 14, 2022. AYES (5): Mayor Ray Russom, Mayor Pro Tem George, Council Member Barneich, Council Member Paulding, and Council Member Storton Passed (5 to 0) Page 515 of 673 6 9.c Consideration of 5-Year Review of Local Sales Tax Administrative Services Director Valentine presented the staff report and responded to questions from Council. Mayor Ray Russom opened the public hearing. Upon hearing no public comments, Mayor Ray Russom closed the public hearing. Moved by Council Member Paulding Seconded by Mayor Pro Tem George 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. AYES (5): Mayor Ray Russom, Mayor Pro Tem George, Council Member Barneich, Council Member Paulding, and Council Member Storton Passed (5 to 0) 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 Administrative Services Director Valentine presented the staff report and responded to questions from Council. Mayor Ray Russom invited public comment. No public comments were received. No action was taken on this item. 11.b Consideration of Placing a Local Transactions and Use Tax (“Sales Tax”) Measure on the November 8, 2022 Ballot City Manager McDonald presented the staff report and responded to questions from Council. Mayor Ray Russom invited public comment. Speaking from the public were Garrett Philbin, and Jim Guthrie. No further public comments were received. Moved by Council Member Storton Seconded by Mayor Pro Tem George Adopt a Resolution entitled: "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. 5187". Page 516 of 673 7 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 Council Member Storton Seconded by Council Member Barneich Introduce an Ordinance entitled: "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". City Attorney Carmel read the full title of the Ordinance. 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 Council Member Storton Seconded by Mayor Ray Russom Adopt a Resolution entitled: "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". 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 Council Member Storton Seconded by Mayor Pro Tem George Adopt a Resolution entitled: "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". 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 Council Member Storton Seconded by Council Member Barneich Approve the revised argument to be submitted in favor of the measure. Page 517 of 673 8 AYES (5): Mayor Ray Russom, Mayor Pro Tem George, Council Member Barneich, Council Member Paulding, and Council Member Storton Passed (5 to 0) 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 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) Page 518 of 673 9 3. Integrated Waste Management Authority Board (IWMA) 4. South County Chambers of Commerce Governmental Affairs Committee 5. Other 13. COUNCIL COMMUNICATIONS Mayor Pro Tem George commented on her appreciation for the SB 9 study session and thanked staff for their work on the item. 14. CLOSED SESSION None. 15. ADJOURNMENT There being no further business to come before the City Council, Mayor Ray Russom adjourned the meeting at 10:54 p.m. _________________________ Caren Ray Russom, Mayor _________________________ Jessica Matson, City Clerk Page 519 of 673 Item 11.a. MEMORANDUM TO: City Council FROM: Whitney McDonald, City Manager BY: Sarah Lansburgh, Deputy City Clerk SUBJECT: Consideration of Proposals for Tourism Marketing Services for the Arroyo Grande Tourism Business Improvement District, Selection of a Marketing Firm, and Approval of an Agreement for Consultant Services DATE: June 14, 2022 SUMMARY OF ACTION: Review and selection of a marketing firm and approval of an agreement for tourism marketing services for the Arroyo Grande Tourism Business Improvement District (AGTBID). IMPACT ON FINANCIAL AND PERSONNEL RESOURCES: The proposed Fiscal Year 2022-23 operating budget for the AGTBID includes $225,000 for tourism marking services. The cost of the agreement with the selected consultant will be for an amount not to exceed the approved budget amount and will be paid from the Fiscal Year 2022-23 AGTBID budget. The AGTBID currently has a beginning fund balance of $325,075. The agreement will continue to be managed by the South County Chambers of Commerce (SCCC). There will be minimal impact on City staff related to processing payments for tourism marketing services provided through the agreement. RECOMMENDATION: 1) Review proposals received from Madison Strategies & Kassandra Maher Marketing and Verdin Marketing for AGTBID tourism marketing services; 2) Select a marketing firm; and 3) Authorize the City Manager to enter into an Agreement for Consultant Servi ces in an amount not to exceed the approved budget amount in a form approved by the City Attorney. 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 Page 520 of 673 Item 11.a. City Council Consideration of Proposals for Tourism Marketing Services for the Arroyo Grande Tourism Business Improvement District, Selection of a Marketing Firm, and Approval of an Agreement for Consultant Services June 14, 2022 Page 2 Municipal Code (AGMC) in Title 3, Chapter 3.46. 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. The AGTBID budget allocates a certain amount of funding toward marketing acti vities, or the development of marketing activities. The City has contracted with a professional firm for print, web, social media and email marketing since inception of the AGTBID. 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 (Attachment 3). Since that time, a tourism website, rebranding of Visit Arroyo Gran de, 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. The costs of the current contract are not to exceed $166,500, the amount previously budgeted for tourism marketing services through the annual operating TBID budget. At the March 28, 2022 AGTBID Board special meeting, the AGTBID Advisory Board reviewed and approved 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 closed May 13, 2022, at 5:00 p.m. Additionally, the South County Chambers of Commerce distributed the RFP to local marketing firms as well as some state and national firms. This outreach was executed through eblast (group email), social media, boosted social media posts, and direct emails. Five firms submitted proposals: ShuBu Creative (Colorado), WeUsThem (Nova Scotia, Canada), Goodsides (California), Madison Strategies & Kassandra Maher Marketing (Washington), and Verdin Marketing (California). At the AGTBID Board special meeting on May 23, 2022, the Advisory Board reviewed the proposals and selected two firms for further consideration: (1) Madison Strategies & Kassandra Maher Marketing and (2) Verdin Marketing. The Board agreed to invite the two firms to a special Board meeting on May 31, 2022 to make a 10 - to 15-minute presentation via Zoom. At the May 31, 2022 AGTBID Board special meeting, the AGTBID Advisory Board received presentations from Madison Strategies & Kassandra Maher Marketing and Verdin Marketing. At the conclusion of the meeting, the Advisory Board recommended that the City Council consider and select one of the two firms, Madison Strategies & Massandra Maher Marketing and Verdin Marketing, as the AGTBID tourism marketing Page 521 of 673 Item 11.a. City Council Consideration of Proposals for Tourism Marketing Services for the Arroyo Grande Tourism Business Improvement District, Selection of a Marketing Firm, and Approval of an Agreement for Consultant Services June 14, 2022 Page 3 services consultant. The Advisory Board did not reach a determination on which firm to recommend to the City Council. ANALYSIS OF ISSUES The proposed agreement for tourism marketing services would be for a one -year period with the City’s option to extend the agreement for a second and third year upon mutual consent of the parties. Representatives from Madison Strategies & Kassandra Maher Marketing and Verdin Marketing will provide a brief presentation of their proposals and be available to answer questions from the Council. It is recommended that the City Council consider the presentations and proposals, discus s and select a firm, and authorize the City Manager to execute an agreement with the selected firm in a form approved by the City Attorney and in amount not to exceed the amount budgeted for the services in the approved AGTBID operating budget. At the time that the RFP was published, it was anticipated that the costs for the tourism marketing services would not exceed the previously-budgeted amount of $166,500. However, the current proposed operating budget for Fiscal Year 2022-23 would increase funding and the scope of services for the tourism marketing consultant to $225,000. As a result, the two firms presented for consideration, Madison Strategies & Kassandra Maher Marketing and Verdin Marketing, have provided updated cost estimates and scopes of work consistent with the proposed Fiscal Year 2022-23 budget. It is recommended that the consultant services agreement allow for payment for services not to exceed the approved budget amount to account for the increased services requested by the AGTBID Advisory Board in the Fiscal Year 2022-23 budget. Because the proposed Fiscal Year 2022-23 Budget proposes to use a portion of fund balance to pay for the overall operating budget, it is possible that, in future years, the tourism marketing consultant services will be reduced to account for reductions in funding. Additionally, some tasks included in the proposals and approved budget will likely be completed and no longer necessitate the higher not-to-exceed amount. The consultant services agreement would include terms to address this possibility. ALTERNATIVES: The following alternatives are provided for the Council’s consideration: 1. Review proposals from Madison Strategies & Kassandra Maher Marketing and Verdin Marketing, select a firm, and authorize the City Manager to execute an agreement in a form approved by the City Attorney in an amount not to exceed the amount approved in the AGTBID operating budget for the services; or 2. Review proposals from Madison Strategies & Kassandra Maher Marketing and Verdin Marketing, select a firm, and authorize the City Manager to execute an agreement in a form approved by the City Attorney in a different amount than the approved budget; Page 522 of 673 Item 11.a. City Council Consideration of Proposals for Tourism Marketing Services for the Arroyo Grande Tourism Business Improvement District, Selection of a Marketing Firm, and Approval of an Agreement for Consultant Services June 14, 2022 Page 4 3. Review proposals from Madison Strategies & Kassandra Maher Marketing and Verdin Marketing, select a firm, and direct that staff return with a Consultant Services Agreement for approval at a future City Council meeting; 4. Review proposals from Madison Strategies & Kassandra Maher Marketing and Verdin Marketing, do not select a firm, and provide further direction to staff; 5. Provide other direction to staff. ADVANTAGES: The selection of a marketing firm will enable to AGTBID to continue moving forward in the process for improving upon the current tourism marketing program . This in turn will help increase local hotel stays, accomplish the goals of the AGTBID, improve the local economy, and demonstrate results to the lodging businesses. DISADVANTAGES: There are no disadvantages identified by selecting a marketing firm and entering into an agreement for consultant services for the AGTBID. 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. Proposal Quick Preview – Madison Strategies & Kassandra Maher Marketing 2. Proposal Quick Preview – Verdin Marketing 3. Current Agreement with Verdin Marketing, Inc. Page 523 of 673 Marketing & Communications Proposal Prepared For: From: Attract tourists and increase lodging and daily average room rates May 15, 2022 The City of Arroyo Grande Tourism Business Improvement District Madison Strategies, LLC Kassandra Maher Marketing 333 Five Cities Drive Pismo Beach, CA 93449 ATTACHMENT 1 Page 524 of 673 About Us As millennial Cal Poly alumni, we are deeply connected to SLO County, and our education background affords us highly specific training, experience, and relationships. Our experienced team will inject vitality and vibrancy into the City of Arroyo Grande’s marketing and communications, bringing new tourists to stay for the very first time, and welcoming returning guests home. Page 525 of 673 South County Chambers of Commerce Attn: Nicole Moore PO Box 672 Arroyo Grande, CA 93421 RE: RFP AGTBID May 12, 2022 Dear Ms. Moore, Thank you for your Request for Proposals for the City of Arroyo Grande’s marketing, communications, website management, and social media services. We are Corinne Madison and Kassandra Maher, partnering together for your project from Madison Strategies, LLC and Kassandra Maher Marketing. As millennial Cal Poly alumni, we are deeply connected to SLO County, and our education background affords us highly specific training, experience, and relationships. Our team will inject vitality and vibrancy into the City of Arroyo Grande’s marketing and communications, bringing new tourists to stay for the very first time, and welcoming home returning guests. Corinne and Kassandra both studied at Cal Poly in communications fields. We are passionate alumni, and extremely vocal evangelists for the beauty, serenity, fun, and magic of the Central Coast. Each of us have made many return trips to SLO County over the years with friends, family, partners, and for professional events. We are personally familiar with seeking a hotel and rental properties in the area for various occasions. As owners of boutique marketing agencies, we will be deeply and personally involved in all aspects of your project. We bring a strategic eye that is backed by years of formal training and relevant work experience. Corinne and Kassandra have each worked in directly related fields for 7+ years, and continue to stay up-to-date on the latest trends and marketing concepts.. You can be confident that we are on the forefront of current and future technologies, and we never get bogged down with old-fashioned, stale ideas. We have a vast network that we lean on to find the best possible talent for each project, including locally subcontracted agents in the SLO area. We believe the City of Arroyo Grande will be best served by choosing us as your marketing team because we offer a fresh eye from the perspective of a small, young agency. Corinne and Kassandra are extremely comfortable with proven marketing methods, but our true advantage is that we are bold, early adopters, confidently pushing the envelope when it comes to new opportunities and creative solutions. There are emerging technologies and demographics that we can leverage to drive new interest to the city and increase tourism. Our team will explore these opportunities to revitalize the City of Arroyo Grande’s marketing strategy on all fronts, resulting in increased tourism and occupancy at your 61+ lodging properties. Thank you for your time. We look forward to hearing from you! All the best, Corinne Madison Kassandra Maher Madison Strategies, LLC Kassandra Maher Marketing Page 526 of 673 Dedicated customer service, open availability, and personal commitment A fresh perspective on marketing and advertising ideas that are sure to make the City stand out Strong familiarity with current technologies and experience capitalizing on future innovations and opportunities Personal knowledge and appreciation of the County, with a broad network of local creative professionals that can capture the unique flavor of Arroyo Grande Executive Summary Madison Strategies, LLC & Kassandra Maher Marketing for the City of Arroyo Grande It’s no secret that the City of Arroyo Grande is a beautiful place to visit on the California Central Coast, full of character and charm. As your city and your needs continue to grow, the need for a better approach to your tourism marketing and communications strategy has become clear. Madison Strategies & Kassandra Maher Marketing empower your team to attract more tourists to the area in order to increase occupancy and average daily room rates. Madison Strategies & Kassandra Maher Marketing deliver: Comprehensive Roadmap - Detailed action plans focused on specific strategies to increase tourism and occupancy at the City of Arroyo Grande’s 61+ lodging properties, with the result of higher room rates and tourism profit Trackable Metrics - Monthly reports with analysis of progress and suggested adjustments to reach targets and goals Customer-Centered Design - Innovative, aesthetic design and functional, user-friendly interfaces that encourage and enable guests to book travel easily We are extremely comfortable with proven marketing methods, but our true advantage is that we are bold, early adopters, confidently pushing the envelope when it comes to new opportunities and creative solutions. You can rest assured that we are on the forefront of current and future technologies, and we never get bogged down with old-fashioned, stale ideas. In partnering with Madison Strategies & Kassandra Maher Marketing, the City of Arroyo Grande can expect: We look forward to the opportunity to serve you and grow our partnership in the future. Division of Work and Responsibilities As a team of two, we will divide the management of the City’s project between us partners. While we have many talents between the two of us, we recognize when it’s time to bring in the big guns and hire subcontractors for additional work. Therefore, we may work with other independent contractors such as videographers and photographers to provide the City with the highest quality of work. Per our conversation with Ms. Moore, the City will be notified and must approve beforehand of any subcontracting agreements. For detailed information on our experiences, our resumes below and previous work experience have been included in this package. The budget and breakdown of project schedule and deliverables encompasses more details on estimated time required to complete the project and the disclosure of billable rates for each task. Page 527 of 673 Firm Experience Redesigned the bakery website for easier ordering and a better customer experience Average open rate of marketing emails of 46.4%, well above the standard open rate of 21% Generate sales using email marketing when business did not have a storefront or pop-up location Organic Facebook rage reach increased by 374% Facebook page likes increased 485% Organic Instagram page reach increased 337% Instagram page likes increased 115% Madison Strategies, LLC has worked with several small businesses and organizations in both California and Washington. Our work has focused primarily on developing creative marketing strategies so they can grow their followings and sales. The Cow Path Bakery in Othello, Washington is a current client that recently opened up a brick-and-mortar location on the city’s Main Street. The bakery began working with Madison Strategies in January 2021 while selling delicious baked goods at various “pop-up” locations and through online orders and social media. Our firm provides website management, search engine optimization (SEO), email marketing, general marketing, and social media management services to the client. Since 2021, our firm has achieved the following: Additionally, Madison Strategies planned the Grand Opening of the bakery’s new storefront, which included a ribbon cutting ceremony, remarks from both the Mayor and the Chamber of Commerce, and media coverage from at least three local outlets. During the two-week period encompassing the bakery’s soft opening and grand opening, the bakery’s social media platforms grew exponentially: #01 Page 528 of 673 May 13, 2022 City of Arroyo Grande Proposal for Marketing, Communications, Website Management & Social Media Services ATTACHMENT 2 Page 529 of 673 Table of Contents Executive Summary 3 Let’s Talk About You 4 Proposed Scope of Work & Budget 11 Our Work 15 Our Team 23 We are Obsessed with integrity We are devoted to our work and maintain a high level of transparency with our clients Passionate about strategy We are dedicated to understanding your goals, reaching your audiences and delivering the best marketing support Building our brand for 18 years We have cultivated a stellar reputation through years of service A tight-knit team We are small but mighty—we have the agility to completely focus on you and your needs Page 530 of 673 It has been a pleasure to partner with Visit Arroyo Grande to develop a brand that represents the personality and special touches of the destination. Roaming roosters. The historic swinging bridge. Welcoming faces at every corner. All these things and more align to tell the story of the authentically friendly AG. This connection is near and dear to us; two of our principals reside in this one-of-a-kind town, and the opportunity to personify the brand identity has been extremely fulfilling. After doing a deep dive on our current strategy, we are perfectly poised to leverage our previous work to evolve the Visit Arroyo Grande brand with new and exciting opportunities. Our team is deeply rooted in the California destination marketing ecosystem while keeping our fingers on the pulse of national and global trends. We are actively involved with SLO CAL, the Central Coast Tourism Council and Visit California. Our award-winning, metric-driven work for Visit Arroyo Grande and other destinations includes cities, counties and regions. We are especially skilled at working with lesser known areas and pulling out the special qualities that drive visitors. At Verdin, it’s always personal and hands-on. We strive to introduce fresh concepts and actively manage owned, earned and paid channels. Staying at the forefront of technology and emerging media to ensure we are offering our the best solutions to our clients is important to us. Our mission is to help build strong communities through strategy, consensus and storytelling. We look forward to the opportunity to continue to put that mission to work for Visit Arroyo Grande. Mary Verdin President & Chief Strategy Officer mary@verdinmarketing.com | (805) 541-9005 3580 Sacramento Dr #110, San Luis Obispo, CA 93401 DBE Firm No. 42625 | CSDA Members Finding new opportunities to expand awareness of Arroyo Grande as a destination for quality time, genuine character and Central Coast exploration. 3 ●SuitabilityoftheProposal–theproposedsolutionmeetstheneedsandcriter iapresentedin the RFP. ●Proposal Presentation – The information is communicated in a clear, logical manner and is well organized. The document should be standard (81⁄2” x 11”) letter-sized paper. An executive summary of the proposal being submitted. Describe the firm’s experience, especially as related to completing similar projects as being discussed in this RFP. ●Explain what tools your agency has available for online media monitoring, reporting and analysis, and brand/reputation monitoring; ●A description of how agency stays at the forefront of technology and emerging media. Page 531 of 673 Opportunities Let’s Talk About You 4Page 532 of 673 What we have accomplished together Where we started Since 2018, Verdin has worked alongside the Visit Arroyo Grande team to paint the picture of this Central Coast town steeped in California history and teeming with unique experiences for visitors and locals alike. With the goals of positioning AG as a travel destination, reaching new visitors and increasing overnight stays, our team began by building a strategic plan and creating a warm, charming and inviting brand identity. 5 “The professionalism, enthusiasm, and attention to detail of the Verdin is amazing!” Jocelyn Brennen Former President | CEO, South County Chambers of Commerce Jocelyn@thehrmcorp.com ●What we have accomplished - reminders of success Verdin’s team has worked to develop dynamic, creative campaigns that capture Arroyo Grande’s unique charm and entice people to experience it for themselves. The work we did started with a rebrand and marketing strategy and the execution included PR outreach, e-newsletter development and social media management. Before Page 533 of 673 FIRST AMENDMENT TO CONSULTANT SERVICES AGREEMENT This First Amendment ("First Amendment") to Consultant Services Agreement CSA") by and between the CITY OF ARROYO GRANDE ("City") and VERDIN MARKETING ("Consultant") is made and entered into this 12th day of May 2020. WHEREAS, the parties entered into a CSA dated June 12, 2018, for tourism marketing services for the Arroyo Grande Tourism Business Improvement District AGTBID); and WHEREAS, on May 29, 2019, pursuant to Section 1 of the CSA, the City extended the term of the.CSA for one (1) additional year; and WHEREAS, the current CSA expires on June 30, 2020; and WHEREAS,-the.parties desire to modify the CSA as set forth herein. NOW THEREFORE, for valuable consideration the receipt and sufficiency of which is acknowledged, the parties agree as follows: 1. Section 1 ("TERM") of the Agreement shall be modified in its entirety to read as follows: This Agreement shall be extended and remain and continue in effect until June 30, 2022, unless sooner terminated pursuant to the provisions of this Agreement. 2. Section 5 ("PAYMENT") of the Agreement shall be modified in its entirety to read as follows: Consultant shall be paidfor actual work performed in accordance with Consultant's Proposal. However, the total compensation paid to Consultant shall not exceed $166;500.per-year. Consultant will invoice City no more than monthly. Invoice shall be sent to the Chamber of Commerce Executive Director. Each invoice will reference job orders, components, specific services, media costs, production costs, fees and material expense and sales tax where applicable. City shall mail payment to Consultant for the net amount of uncontested invoices no later than thirty (30) days after receipt of each invoice by the City. Any past due balances under this Agreement shall bear interest at the rate of 1.5 percent per month (18.0 percentage rate) on unpaid balances. 3. Except as modified herein, all other terms and conditions set forth in the CSA, as amended, shall remain unchanged. ATTACHMENT 3 Page 534 of 673 VERDIN MARKETING AMENDMENT NO. 1 PAGE 2 IN WITNESS WHEREOF, CITY and CONSULTANT have executed this First Amendment the day and year first above written. CITY OF ARROYO GRANDE: VERDIN MARKETING: ti CAREN -t;' -USSOM, MAYOR MARY V .N, PRESIDENT ATTEST: wi.(11WO-LIZ--- KELLY ET ORE, CITY CLERK APP AS TO FORM: ZIA/'-%- TIMOTHY J. CARMEL, CITY ATTORNEY Page 535 of 673 CITY OF I'vcogoVO R o= A CITY OF RROY° GRANDEw il' '° " CALIFORNIA May 29, 2019 Mary Verdin Verdin Marketing 3580 Sacramento Dr., Suite 110 San Luis Obispo, CA 93401 Re: Mutual Consent to Extend Agreement Term Dear Mary, In follow-up to our correspondence regarding the Agreement for Contractor Services between Verdin Marketing and the City of Arroyo Grande, entered into as of June 12, 2018 and effective July 1, 2018,this serves to confirm that the parties mutually agree to extend the term of the Agreement for one (1) year, pursuant to Section 1 of the Agreement. Except to the extent necessary to give effect to the extension,the Agreement will otherwise remain unchanged and in full force and effect. Sincerely, Jessica Matson Deputy City Clerk ACKNOWLEDGEMENT: CITY OF ARROYO GRANDE: VERDIN MARKETING: Wegifia\ James Al1111.1111. ity Manager Mary din, President CITY MANAGER'S OFFICE • 300 E. Branch Street •Arroyo Grande, California 93420 Phone: (805) 473-5400 • FAX: (805) 473-0386 • E-mail: agcity@arroyogrande.org • Website: www.arroyogrande.org Page 536 of 673 AGREEMENT FOR CONSULTANT SERVICES THIS AGREEMENT, is made and effective as of June 12, 2018, between Verdin Marketing ("Consultant"), and the CITY OF ARROYO GRANDE, a Municipal Corporation City"). In consideration of the mutual covenants and conditions set forth herein, the parties agree as follows: 1. TERM This Agreement shall commence on July 1, 2018 and shall remain and continue in effect until June 30, 2019, unless sooner terminated pursuant to the provisions of this Agreement. The City shall have the sole option to extend this Agreement for one (1) one (1) year option. If the City elects to exercise this option, it shall give written notice not later than three (3) months prior to the initial termination date. The terms and conditions of this Agreement shall be applicable during said extension option unless the parties mutually agree in writing upon any changes. 2. SERVICES Consultant shall perform the tasks described and comply with all terms and provisions set forth in Exhibit "A", attached hereto and incorporated herein by this reference. 3. PERFORMANCE Consultant shall at all times faithfully, competently and to the best of his/her ability, experience and talent, perform all tasks described herein. Consultant shall employ, at a minimum generally accepted standards and practices utilized by persons engaged in providing similar services as are required of Consultant hereunder in meeting its obligations under this Agreement. 4. AGREEMENT ADMINISTRATION City Manager shall represent City in all matters pertaining to the administration of this Agreement. Mary Verdin, Verdin President, shall represent Consultant in all matters pertaining to the administration of this Agreement. 5. PAYMENT The City agrees to pay the Consultant in accordance with the payment rates and terms set forth in Exhibit "B", attached hereto and incorporated herein by this reference. Page 1 Page 537 of 673 6. SUSPENSION OR TERMINATION OF AGREEMENT WITHOUT CAUSE a) The City may at any time, for any reason, with or without cause, suspend or terminate this Agreement, or any portion hereof, by serving upon the Consultant at least ten (10) days prior written notice. Upon receipt of said notice, the Consultant shall immediately cease all work under this Agreement, unless the notice provides otherwise. If the City suspends or terminates a portion of this Agreement such suspension or termination shall not make void or invalidate the remainder of this Agreement. b) In the event this Agreement is terminated pursuant to this Section, the City shall pay to Consultant the actual value of the work performed up to the time of termination, provided that the work performed is of value to the City. Upon termination of the Agreement pursuant to this Section, the Consultant will submit an invoice to the City pursuant to Section 5. 7. TERMINATION ON OCCURRENCE OF STATED EVENTS This Agreement shall terminate automatically on the occurrence of any of the following events: a) Bankruptcy or insolvency of any party; b) Sale of Consultant's business; or c) Assignment of this Agreement by Consultant without the consent of City. d) End of the Agreement term specified in Section 1. 8. DEFAULT OF CONSULTANT a) The Consultant's failure to comply with the provisions of this Agreement shall constitute a default. In the event that Consultant is in default for cause under the terms of this Agreement, City shall have no obligation or duty to continue compensating Consultant for any work performed after the date of default and can terminate this Agreement immediately by written notice to the Consultant. If such failure by the Consultant to make progress in the performance of work hereunder arises out of causes beyond the Consultant's control, and without fault or negligence of the Consultant, it shall not be considered a default. b) If the City Manager or his/her delegate determines that the Consultant is in default in the performance of any of the terms or conditions of this Agreement, he/she shall cause to be served upon the Consultant a written notice of the default. The Consultant shall have ten (10) days after service upon it of said notice in which to cure the default by rendering a satisfactory performance. In the event that the Consultant fails to cure its default within such period of time, the City shall have the right, notwithstanding any other provision of this Agreement to terminate this Agreement without further notice and without prejudice to any other remedy to which it may be entitled at law, in equity or under this Agreement. Page 2 Page 538 of 673 9. LAWS TO BE OBSERVED. Consultant shall: a) Procure all permits and licenses, pay all charges and fees, and give all notices which may be necessary and incidental to the due and lawful prosecution of the services to be performed by Consultant under this Agreement; b) Keep itself fully informed of all existing and proposed federal, state and local laws, ordinances, regulations, orders, and decrees which may affect those engaged or employed under this Agreement, any materials used in Consultant's performance under this Agreement, or the conduct of the services under this Agreement; c) At all times observe and comply with, and cause all of its employees to observe and comply with all of said laws, ordinances, regulations, orders, and decrees mentioned above; d) Immediately report to the City's Contract Manager in writing any discrepancy or inconsistency it discovers in said laws, ordinances, regulations, orders, and decrees mentioned above in relation to any plans, drawings, specifications, or provisions of this Agreement. e) The City, and its officers, agents and employees, shall not be liable at law or in equity occasioned by failure of the Consultant to comply with this Section. 10. OWNERSHIP OF DOCUMENTS a) Consultant shall maintain complete and accurate records with respect to sales, costs, expenses, receipts, and other such information required by City that relate to the performance of services under this Agreement. Consultant shall maintain adequate records of services provided in sufficient detail to permit an evaluation of services. All such records shall be maintained in accordance with generally accepted accounting principles and shall be clearly identified and readily accessible. Consultant shall provide free access to the representatives of City or its designees at reasonable times to such books and records; shall give City the right to examine and audit said books and records; shall permit City to make transcripts therefrom as necessary; and shall allow inspection of all work, data, documents, proceedings, and activities related to this Agreement. Such records, together with supporting documents, shall be maintained for a period of three (3) years after receipt of final payment. b) Upon completion of, or in the event of termination or suspension of this Agreement, all original documents, designs, drawings, maps, models, computer files, surveys, notes, and other documents prepared in the course of providing the services to be performed pursuant to this Agreement shall become the sole property of the City and may be used, reused, or otherwise disposed of by the City without the permission of the Consultant. With respect to computer files, Consultant shall make available to the City, at the Consultant's office and upon reasonable written request by the City, the necessary Page 3 Page 539 of 673 computer software and hardware for purposes of accessing, compiling, transferring, and printing computer files. 11. INDEMNIFICATION a) Indemnification for Professional Liability. When the law establishes a professional standard of care for Consultant's Services, to the fullest extent permitted by law, Consultant shall indemnify, protect, defend and hold harmless City and any and all of its officials, employees and agents ("Indemnified Parties") from and against any and all losses, liabilities, damages, costs and expenses, including attorney's fees and costs to the extent same are caused in whole or in part by any negligent or wrongful act, error or omission of Consultant, its officers, agents, employees or subContractors or any entity or individual that Consultant shall bear the legal liability thereof) in the performance of professional services under this agreement. b) Indemnification for Other Than Professional Liability. Other than in the performance of professional services and to the full extent permitted by law, Consultant shall indemnify, defend and hold harmless City, and any and all of its employees, officials and agents from and against any liability (including liability for claims, suits, actions, arbitration proceedings, administrative proceedings, regulatory proceedings, losses, expenses or costs of any kind, whether actual, alleged or threatened, including attorneys fees and costs, court costs, interest, defense costs, and expert witness fees), where the same arise out of, are a consequence of, or are in any way attributable to, in whole or in part, the performance of this Agreement by Consultant or by any individual or entity for which Consultant is legally liable, including but not limited to officers, agents, employees or subContractors of Consultant. c) General Indemnification Provisions. Consultant agrees to obtain executed indemnity agreements with provisions identical to those set forth here in this section from each and every subContractor or any other person or entity involved by, for, with or on behalf of Consultant in the performance of this agreement. In the event Consultant fails to obtain such indemnity obligations from others as required here, Consultant agrees to be fully responsible according to the terms of this section. Failure of City to monitor compliance with these requirements imposes no additional obligations on City and will in no way act as a waiver of any rights hereunder. This obligation to indemnify and defend City as set forth here is binding on the successors, assigns or heirs of Consultant and shall survive the termination of this agreement or this section. 12. INSURANCE Consultant shall maintain prior to the beginning of and for the duration of this Agreement insurance coverage as specified in Exhibit "C" attached hereto and incorporated herein as though set forth in full. Page 4 Page 540 of 673 13. INDEPENDENT CONSULTANT a) Consultant is and shall at all times remain as to the City a wholly independent Consultant. The personnel performing the services under this Agreement on behalf of Consultant shall at all times be under Consultant's exclusive direction and control. Neither City nor any of its officers, employees, or agents shall have control over the conduct of Consultant or any of Consultant's officers, employees, or agents, except as set forth in this Agreement. Consultant shall not at any time or in any manner represent that it or any of its officers, employees, or agents are in any manner officers, employees, or agents of the City. Consultant shall not incur or have the power to incur any debt, obligation, or liability whatever against City, or bind City in any manner. b) No employee benefits shall be available to Consultant in connection with performance of this Agreement. Except for the fees paid to Consultant as provided in the Agreement, City shall not pay salaries, wages, or other compensation to Consultant for performing services hereunder for City. City shall not be liable for compensation or indemnification to Consultant for injury or sickness arising out of performing services hereunder. 14. UNDUE INFLUENCE Consultant declares and warrants that no undue influence or pressure was or is used against or in concert with any officer or employee of the City of Arroyo Grande in connection with the award, terms or implementation of this Agreement, including any method of coercion, confidential financial arrangement, or financial inducement. No officer or employee of the City of Arroyo Grande will receive compensation, directly or indirectly, from Consultant, or from any officer, employee or agent of Consultant, in connection with the award of this Agreement or any work to be conducted as a result of this Agreement. Violation of this Section shall be a material breach of this Agreement entitling the City to any and all remedies at law or in equity. 15. NO BENEFIT TO ARISE TO LOCAL EMPLOYEES No member, officer, or employee of City, or their designees or agents, and no public official who exercises authority over or responsibilities with respect to the project during his/her tenure or for one year thereafter, shall have any interest, direct or indirect, in any agreement or sub-agreement, or the proceeds thereof, for work to be performed in connection with the project performed under this Agreement. 16. RELEASE OF INFORMATION/CONFLICTS OF INTEREST a) All information gained by Consultant in performance of this Agreement shall be considered confidential and shall not be released by Consultant without City's prior written authorization. Consultant, its officers, employees, agents, or subContractors, shall not without written authorization from the City Manager or unless requested by the City Page 5 Page 541 of 673 Attorney, voluntarily provide declarations, letters of support, testimony at depositions, response to interrogatories, or other information concerning the work performed under this Agreement or relating to any project or property located within the City. Response to a subpoena or court order shall not be considered "voluntary" provided Consultant gives City notice of such court order or subpoena. b) Consultant shall promptly notify City should Consultant, its officers, employees, agents, or subContractors be served with any summons, complaint, subpoena, notice of deposition, request for documents, interrogatories, request for admissions, or other discovery request, court order, or subpoena from any person or party regarding this Agreement and the work performed thereunder or with respect to any project or property located within the City. City retains the right, but has no obligation, to represent Consultant and/or be present at any deposition, hearing, or similar proceeding. Consultant agrees to cooperate fully with City and to provide the opportunity to review any response to discovery requests provided by Consultant. However, City's right to review any such response does not imply or mean the right by City to control, direct, or rewrite said response. 17. NOTICES Any notice which either party may desire to give to the other party under this Agreement must be in writing and may be given either by (i) personal service, (ii) delivery by a reputable document delivery service, such as but not limited to, Federal Express, which provides a receipt showing date and time of delivery, or (iii) mailing in the United States Mail, certified mail, postage prepaid, return receipt requested, addressed to the address of the party as set forth below or at any other address as that party may later designate by notice: To City: City of Arroyo Grande Jim Bergman 300 E. Branch Street Arroyo Grande, CA 93420 To Consultant: Verdin Marketing Mary Verdin 3580 Sacramento Dr., Suite 110 San Luis Obispo, CA 93401 18. ASSIGNMENT The Consultant shall not assign the performance of this Agreement, nor any part thereof, without the prior written consent of the City. Page 6 Page 542 of 673 19. GOVERNING LAW The City and Consultant understand and agree that the laws of the State of California shall govern the rights, obligations, duties, and liabilities of the parties to this Agreement and also govern the interpretation of this Agreement. Any litigation concerning this Agreement shall take place in the superior or federal district court with jurisdiction over the City of Arroyo Grande. 20. ENTIRE AGREEMENT This Agreement contains the entire understanding between the parties relating to the obligations of the parties described in this Agreement. All prior or contemporaneous agreements, understandings, representations, and statements, or written, are merged into this Agreement and shall be of no further force or effect. Each party is entering into this Agreement based solely upon the representations set forth herein and upon each party's own independent investigation of any and all facts such party deems material. 21. TIME City and Consultant agree that time is of the essence in this Agreement. 22. CONTENTS OF REQUEST FOR PROPOSAL AND PROPOSAL Consultant is bound by the contents of the City's Request for Proposal, Exhibit"0", attached hereto and incorporated herein by this reference, and the contents of the proposal submitted by the Consultant, Exhibit "A", attached hereto and incorporated herein by this reference. In the event of conflict, the requirements of City's Request for Proposals and this Agreement shall take precedence over those contained in the Consultant's proposals. 23. CONSTRUCTION The parties agree that each has had an opportunity to have their counsel review this Agreement and that any rule of construction to the effect that ambiguities are to be resolved against the drafting party shall not apply in the interpretation of this Agreement or any amendments or exhibits thereto. The captions of the sections are for convenience and reference only, and are not intended to be construed to define or limit the provisions to which they relate. 24. AMENDMENTS Amendments to this Agreement shall be in writing and shall be made only with the mutual written consent of all of the parties to this Agreement. Page 7 Page 543 of 673 25. AUTHORITY TO EXECUTE THIS AGREEMENT The person or persons executing this Agreement on behalf of Consultant warrants and represents that he/she has the authority to execute this Agreement on behalf of the Consultant and has the authority to bind Consultant to the performance of its obligations hereunder. Page 8 Page 544 of 673 IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed the day and year first above written. CITY OF ARROYO GRANDE CONSULTANT illk r- 1 \ i . By: d"i By: ti AI 11,:.,x, . 4N/ Ja -' an, City Manager Its: fitriht(A,Ovvk Attest: Title) A-Lthiakt- Kelly -tm e, City Clerk Approved As To Form: H ther K. Whitham, City Attorney Page 9 Page 545 of 673 EXHIBIT A CONSULTANT'S PROPOSAL Page 10 Page 546 of 673 PROPOSAL FOR MARKETING, COMMUNICATIONS, WEBSITE MANAGEMENT AND SOCIAL MEDIA PRESENTED TO THE CITY OF ARROYO GRANDE, CA April 30, 2018 Page 547 of 673 THE CITY OF ARROYO GRANDE, CA2 TABLE OF CONTENTS Intro Letter 3 Let’s Talk About You 4 Proposed Budget 13 What We Do 15 Our Process 19 Case Studies 23 Work Samples 28 Who We Are 38 HELLO WE ARE A BAND OF SPIRITED STORYTELLERS IN SEARCH OF BRANDS WITH PERSONALITY AND POTENTIAL. We’d love to work with you. Page 548 of 673 3© 2018 by Verdin COOKIE CUTTER STRATEGIES DON’T DIFFERENTIATE DESTINATIONS. Destination marketing is all about the right message to the right person at the right time. And that happens through customized strategy and dedicated effort. At Verdin, we thrive on the challenge of identifying the unique and essential elements of a destination, and sharing them in a way that meets the desires of its target audiences. Based on the Central Coast of California, Verdin is a full-service marketing agency established in 2003 that has grown to a national-award winning firm of 14 employees with clients throughout the state of California. As founder and president of the firm, I personally have more than 27 years’ experience in marketing and communications. We’re a crackerjack team that’s dedicated to elevating clients to the next level. Verdin is active with Visit California, Central Coast Tourism Council, Visit San Luis Obispo County, the Public Relations Society of America and the American Institute of Graphic Arts. We value the process of learning and exploring new ideas, and of giving back however we can. We’re also DBE (Disadvantaged Business Enterprise) certified through the Department of Transportation. Tourism is one of our two key industries, and we love tracking the twists, turns and trends of destination marketing. On page 22, you’ll find the proprietary approach that helps us develop tailored strategies for our destination clients. We would love to be your branding partner, working with you to tell the unique story of Arroyo Grande. Thank you for this opportunity. Sincerely, Mary Verdin President & Chief Strategy Officer mary@verdinmarketing.com Verdin Marketing Ink Co. DBE Firm No. 42625 3580 Sacramento Dr. #110 San Luis Obispo, CA 93401 805) 541-9005 VERD i J Page 549 of 673 LET’S TALK ABOUT YOU Page 550 of 673 5© 2018 by Verdin YOUR STORY IS WAITING TO BE TOLD YOUR STORY IS WAITING TO BE TOLD Arroyo Grande is a special place, with a story and a vibe all its own. YOUR STORY IS WAITING TO BE TOLD Page 551 of 673 6 THE CITY OF ARROYO GRANDE, CA Visiting Arroyo Grande doesn’t feel like being in a stock photo. That’s why you seek creative updates that better tell your story. You need a marketing partner who thoroughly understands your destination and what you offer – so that your website, advertising and outreach strategies are striking, memorable and authentic. That’s how you’ll increase tourism, lodging occupancy and average daily room rates. Verdin is a marketing partner that combines global travel trends with firsthand local knowledge. Two of our three partners live in Arroyo Grande, and all of us on the Verdin team have experienced the magic of strolling through the Arroyo Grande Village on a brisk evening, visiting history through museums and antique shops, and driving through agriculture and vineyards that feel like a storybook. Ready to increase tourism to Arroyo Grande? Read on to learn how we can develop a comprehensive marketing program that will communicate your points of differentiation in real and innovative ways. Page 552 of 673 7© 2018 by Verdin Effective public relations is an integral part of any successful marketing mission. However, as news and information consumption shifts from the page to the pocket, the power of influence has shifted from large, established media organizations to savvy individuals and micro-media outlets. While traditional media outlets maintain their sway over segments within the key 35- to 54-year-old demographic, younger and more urban audiences of all ages now cite social media and digital tastemakers as strongly impacting decisions on what to buy, wear, say and do. Using an integrative approach to public relations, we can maximize client visibility by creating a cohesive brand messaging across its traditional media relations efforts and its ever-evolving digital strategies. PUBLIC RELATIONS OPPORTUNITIES INITIAL OPPORTUNITIES FOR ARROYO GRANDE Identify traditional media and digital influencers from both local, drive markets and regional target markets covering topics that align with your personas’ interests and behaviors. Look for opportunities with Visit California, CCTC and Visit SLO CAL for opportunities to collaborate on pitches to national travel outlets. Engage in proactive media relations by distributing press releases and pitches with creative and strategic story angles that differentiate the Arroyo Grande experience. Coordinate both individual media visits and group familiarization tours FAMs) to introduce travel writers to the unique offerings of Arroyo Grande through personalized itineraries. Invite target bloggers and local media to attend and experience events for live coverage. Provide Facebook Live feeds and video footage for those unable to attend to expand coverage. Be prepared with a strong reactive media relations plan so that you can evaluate incoming media requests and respond to partner opportunities. Page 553 of 673 8 THE CITY OF ARROYO GRANDE, CA SOCIAL MEDIA OPPORTUNITIES INITIAL OPPORTUNITIES FOR ARROYO GRANDE Tell stories with testimonials from the perspective of the locals and visitors who have to tell the unique story and clearly state the vision of Arroyo Grande. Use video to tell the stories. Because video shared emotion so well, use it frequently. Film in locations in Arroyo Grande that are lesser known to show the unique personality that separates it from neighboring communities as well as the better known spots like the downtown shops and the Strawberry Festival to keep things familiar. Share local stories on the blog that relate to the welcoming and historical side of Arroyo Grande. Share local news coverage when media covers Arroyo Grande, its residents and locally owned businesses. Create custom memes with quotes and surprising historical facts. Expand on tagline with hashtags on Instagram. Use contests and giveaways to promote events, grow the brand and gather photos assets. Select two social media platforms and execute them well. Shows faces of a diverse group of people who are represent the target audience you want to reach. AND WHILE WE’RE AT IT – HERE ARE OUR RECOMMENDATIONS FOR ENHANCING YOUR EMAIL MARKETING. Integrate e-blasts and e-newsletters with your website and blog. Send triggered emails, which are sent out based on audience behaviors. Separate and manage lists for targeting so that you can hand-pick which audiences receive which information from you. Provide special access to deals and offers via email. Make people glad they signed up! Enable registration for events and tours, so that people can easily navigate to sign up straight from the email they receive. Promote activities based on interests. A robust social media strategy adds a dimension of authenticity to your marketing campaigns. Our social media strategy will complement and support the overall marketing strategy and will be built upon a thorough understanding of your brand and its strengths, weaknesses, pain points, audiences and goals. This strategy will help you connect and engage with your audience on each platform to build valuable relationships, create brand ambassadors and tell the story of your unique destination. Page 554 of 673 9© 2018 by Verdin ADVERTISING & MEDIA BUYING OPPORTUNITIES DIGITAL RESEARCH & CAPABILITIES Verdin meets with the media on a regular basis, and our clients reap the benefits of this relationship and knowledge. We evaluate media options based on objective data and research, and can assess reach, frequency and gross rating points to determine the best value for our clients’ budgets. As the digital advertising world expands, Verdin keeps on top of all channels and can determine which technologies are best to meet a client’s goals. Regular research, study, conferences and collaboration with technology partners gives our clients access to the most sophisticated digital strategies available. Our knowledge allows us to quickly assess options and make strategic recommendations. Additionally, Verdin is proud to offer clients in- house digital media buying. Lower costs, enhanced supervision, pinpointed strategies and improved results are just a few of the many benefits of bringing this capability in house. Our complete array of digital buying services includes display and video advertising, retargeting, behavioral targeting, geo fencing, SEO, native and social advertising. NEGOTIATING AND PLACEMENT EXPERIENCE Verdin brings media buying power to clients. Cumulatively, we represent large media spending and are able to negotiate discounts and added-value based on agency volume. We are educated buyers who understand the media platforms’ specifics and will provide strategic creative to most successfully enhance each platform. Most clients who have purchased media directly find they get more exposure and better results for the same budget using our services. Many clients appreciate that Verdin’s media buying service includes reconciliation of media invoices. Each month, all media invoices are reviewed and compared to what was ordered to ensure accuracy. When inconsistencies are found, Verdin will contact the media and secure the appropriate solution, by either an adjustment on the invoice or “makegoods” on the advertising that was missed or ran incorrectly. BEYOND TARGET AUDIENCES The Internet’s ability to gather research on consumers has evolved the way we think about target audiences. At Verdin, we create personas, which are in-depth composites of key segments of the potential visitor market. Lifestyles, behaviors and passions are key common denominators in persona groups. Research shows that these common denominators are more dependable rather than simple age ranges, as behaviors and passions stay with individuals regardless of where they fall in more traditional age groups. We keep these personas at the forefront of all efforts as we strategize campaign ideas and work with our clients to roll out integrated advertising campaigns. Page 555 of 673 10 THE CITY OF ARROYO GRANDE, CA INITIAL OPPORTUNITIES FOR ARROYO GRANDE Compliment traditional media platforms with digital and social media. As the media landscape becomes highly personalized and continually fragmented, an understanding of the intricacies of media buying and research is required to effectively reach the highest percentage of potential customers. The most successful advertising campaigns have significant crossover of media types and platforms, using digital and social media to complement traditional media. Determine media mix percentages. Traditional media continues to demand a higher percentage of budgets than digital media to meet the same number of impressions. Based on customer feedback, a robust media plan should prioritize the most desirable target personas and match the media placement to their hobbies and lifestyles. Generally, tourism and tourism-related industries use approximately 60% of the total yearly budget on traditional media and 40% on digital, but this can vary dramatically if significantly older or younger customers are desired. With more information gathered through meeting with you and understanding your goals, we will recommend a strategic mix for Arroyo Grande. Leverage partnerships. Verdin has well-established partnerships with media throughout California, as well key players in the national and international market, and see this as a potential opportunity for Arroyo Grande. We have had tremendous success integrating strategies with partners such as the Central Coast Tourism Council, Visit California and Brand USA. We are always on the lookout for opportunities for our clients to create strategic partnerships with vendors. Page 556 of 673 11© 2018 by Verdin WEBSITE OPPORTUNITIES These are exciting times! Through a beautiful and effective website to support outreach efforts, Arroyo Grande has the potential to reach more travelers than ever before. Your ultimate goal is to increase lodging occupancy in Arroyo Grande, and that hinges on the strength of your website. Digital communications sends visitors to your site, which then has tremendous opportunity to confirm the desire to visit. Specific website features and content strongly influence this decision-making process. After an initial review of your site, here are a few important features we recommend. INITIAL OPPORTUNITIES FOR ARROYO GRANDE DESIGN AND CONTENT Make it visually compelling. The first few seconds are critically important during a website visit. Initially, a visitor just scans the site, so only a good design can grab attention and lead him or her to important information on the website. Provide focused content. People visit websites for information, so provide content that is well-organized and focused on what your users are looking for. Update frequently. Continually refresh content on your site to keep users returning and to stay relevant in search engine results. We see you’re interested in adding a blog, which is an excellent way to keep fresh content coming. Add an email signup, just like you suggested in your RFP. Page 557 of 673 12 THE CITY OF ARROYO GRANDE, CA PHOTOS, VIDEOS AND MAPS Show, don’t tell. Video and photos can quickly tell a complete story of what a traveler can expect when visiting your destination. Remember that people are looking for experiences, both emotional and experiential, when planning travel. Make it mobile and tablet friendly. More and more, people are relying on mobile devices to access the internet. Make sure your website appearance and loading times accommodate the limitations of mobile devices. Include weather updates or live video streaming on homepage to highlight the key selling point of your beautiful year-round weather. Interactive maps are also a welcome addition as a lot of people will be interested in them. WEB ANALYTICS AND SEARCH ENGINE RESULTS Currently, your site ranks seventh when using the exact search terms “visit Arroyo Grande” in Google, and doesn’t even make the first page in a search for “Arroyo Grande California.” Measure your website and website traffic performance using one of many available tools. Information from these tools will give great insights which you can use to optimize your website, web traffic and ultimately your tourism business lead generation. Implement a strong SEO strategy. Search engines like Google use an algorithm to calculate how useful your site is to visitors for the specific search terms they enter. Good SEO can repeatedly bring visitors to your site. When set up correctly, SEO provides the best return on investment and is the most cost effective action you can take to bring traffic to your site. INITIAL OPPORTUNITIES FOR ARROYO GRANDE Page 558 of 673 13© 2018 by Verdin 13 THE CITY OF ARROYO GRANDE, CA PROPOSED BUDGET In these discovery and planning phases, Verdin will explore what makes Arroyo Grande a special destination for visitors, along with ensuring we understand your current challenges and goals to create an effective marketing strategy. These phases will last one month, depending on schedules and meetings, and are proposed to include the following: An intake session with the key stakeholders to gain insight and perspectives Creative brief development Marketing and communications plan development, including: Development of personas to represent target audiences Positioning statement Brand map Key message points and strategy PR strategy and calendar Social media strategy and initial content calendar Advertising strategy and campaign concept development PHASE I: Explore & Envision $6,500 Billable hourly rates that this budget is based on: Principal/Strategic: $168 VP/Account Supervision: $145 Art Direction: $145 Account Management: $138 PR Strategy: $138 Social Media Strategy: $128 Copywriting: $128 Graphic Design: $128 Account Support/Production: $118 Clerical: $95 Travel: $68 Page 559 of 673 14 THE CITY OF ARROYO GRANDE, CA In these phases, the implementation of the Marketing and Communications Plan will take place. Please note that the scope of this phase will need to be clearly defined following the approval of the Marketing Strategy. The scope can be specially tailored to budget limitations to deliver the best results. These phases could include the following, anticipating a 11-month period (to follow Explore and Envision Phases): Ongoing account management, meetings and reporting Creative development, including: Reactive creative Photo or video asset development Public relations management and coordination Website updates E-Newsletter management Social media management Contest prize coordination Media planning Advertising costs of $80,000 Contingency budget for co-op possibilities with Visit SLO CAL and the Central Coast Tourism Council PHASE II: Execute & Enhance $188,500 TOTAL $195,000 18,000 28,000 4,000 2,500 15,000 3,000 6,600 18,400 2,000 6,000 80,000 5,000 Page 560 of 673 WHAT WE DO Page 561 of 673 THE CITY OF ARROYO GRANDE, CA16 MARKETING & BRAND MANAGEMENT Marketing Plans Strategic Planning Strategic Communications Corporate Identity & Branding Image Perception Assessment Customer Relationship Management ADVERTISING Print, Broadcast and Digital Creative Development Media Strategies Media Buying PUBLIC RELATIONS SERVICES Public Relations Strategies Programs Press Release & Story Generation Online Release Distribution White Paper Development & Publication Cause-related Marketing Internal Communications Trade Show Booth Management Crisis Communications WEBSITE DEVELOPMENT Site Plan Writing, Design & Programming Search Engine Optimization Ongoing Maintenance SOCIAL MEDIA & ONLINE MARKETING Social Media Strategies Management Search Engine Marketing Blogging & Podcasts Mobile Marketing OUR SERVICES VERDIN BY THE NUMBERS 14 years in business 14 person team (and occasionally a dog or two) 3¼ gallons of coffee consumed per day plus an un-quantified amount of cold brew from our fridge) 2 Key Industries: Tourism and Nonprofits 3 Core Values: Relationships Matter; Passion & Purpose; Integrity. Period. Page 562 of 673 17© 2018 by Verdin You know the impact of good PR. In today’s over-saturated media landscape, stories often struggle to break though. At Verdin, we provide a strategic and comprehensive branding and media relations program with creative and proactive story development that’s as unique as you are. Our team delivers results at the local and national level, built from our trusted relationships with members of the media. We look forward to the possibility of working with you to achieve the results you seek. Our PR Services that could support the City of Arroyo Grande: Compelling brand storylines Creative press release writing Targeted and optimized press release distribution Traditional media outreach Event media coordination Ongoing media visibility Press tours Reputation management and crisis communications Media monitoring and reporting PRSA AWARDS ADDY AWARDS PUBLIC RELATIONS OU Page 563 of 673 18 THE CITY OF ARROYO GRANDE, CA PRSA AWARDS MARCOM AWARDS SOCIAL MEDIA MEDIA BUYING SERVICES Our Social Media Services that could support the City of Arroyo Grande: Social media audit Competitive analysis Custom social media marketing strategies Tailored social media content calendars Online brand management and monitoring Implementation guidelines Online video marketing campaigns Social account design and development One-on-one consultations In-house training Reporting and analysis Our Advertising and Media Services that could support the City of Arroyo Grande: Campaign concepting and strategy Creative development of digital print and video advertising Custom strategic media plans Negotiation of competitive ad rates Ad placement Reconciliation of media invoices Analysis of metrics and result reports Research into ongoing new media opportunities Verdin harnesses the power of social media to help clients reach their specific businesses goals. Our social media marketing encompasses strategic communications and innovative approaches to help increase message awareness, loyalty, supporter base and behavior change. We offer a range of services from content recommendations to overall strategy and complete management and monitoring of your organization’s pages. Verdin’s customized social strategies help clients reach their goals and maximize their online presence. As the media landscape becomes highly personalized and fragmented, an understanding of the intricacies of media buying and research is required to reach the highest percentage of community engagement. The most successful campaigns have significant crossover of media types and platforms, using digital and social media to complement traditional media. We are an objective third party that does not benefit from the purchase of one medium over another, so our client’s best interest is always driving decisions, and we have the big picture of all media being placed. We assign and monitor metrics and create client reports to measure success based on these metrics. ADDY AWARDS Page 564 of 673 OUR PROCESS Page 565 of 673 COMMUNICATIONS PROCESS The Verdin 360 is our proprietary process for withdrawing the qualities that create communication success for a destination. It’s a tried and true approach, but the results looks different for every client. For example, see pages 37–38 to see examples of creative developed for beach towns 15 minutes apart that reached different audiences in very different ways. 1. Explore DISCOVER WHERE YOU ARE NOW. We research and analyze the current perception of your brand, competitors’ brands, and the overall industry landscape. We identify the benefits that make you stand out. 2. Envision PLAN WHERE YOU WANT TO BE AND HOW TO GET THERE. We set goals and define metrics to forge a path forward. Through the information gathered in the Explore phase, we develop a campaign customized to your goals. 3. Execute BRING THE PLAN TO LIFE. We implement the campaign and give your brand a consistent voice through visuals and messaging. All communications will be created within your brand guidelines. 4. Evaluate MEASURE PERFORMANCE AND ADJUST AS NEEDED. We perform ongoing monitoring to track metrics and make adjustments to reach goals. 5. Enhance RECOGNIZE SUCCESS AND LEVERAGE FOR GROWTH. We analyze campaign results, assess goals, and adapt the plan as needed. We constantly refine our strategies to stay on top of current trends. 20 THE CITY OF ARROYO GRANDE, CA Page 566 of 673 21© 2018 by Verdin Brand Attributes What are your unique physical characteristics? Functional Benefits What do these characteristics do for the target audience? Emotional Benefits How will the target audience feel when they interact with visit Arroyo Grande brand? BRAND MAP Verdin’s Brand Map guides all communication efforts moving forward to ensure a consistent, effective brand and message. Our Brand Map will incorporate and evolve the brand elements already established for Arroyo Grande, guiding the development of assets that will work together to support your destination’s position as a whole. BRAND POSITIONING STATEMENT A concise statement that captures the uniqueness of the brand in the hearts and minds of the target audience, used for internal guidance of all marketing efforts. Brand Reputation Current reputation and perception of your brand among consumers. Brand Promise The emotional component of your brand; its promise! BRAND EXPLANATION (INTERNAL STRATEGIC CHOICES) BRAND EXPERIENCE (EXTERNAL CONSUMER COMMUNICATIONS) Bring your brand to life through different elements that make up the brand experience (visuals, sounds, scents, etc.). Determine what we want our audiences to do/feel/say after exposure to our messages. Page 567 of 673 22 THE CITY OF ARROYO GRANDE, CA SAMPLE REPORTING t (805) 541-9005 f (805) 541-9007 3580 Sacramento Drive #110, San Luis Obispo, CA 93401 VERDINMARKETING.COM DEMOGRAPHICS W E B A N A L Y T I C S 2 0 1 8 v . 2 0 1 7 WEBSITE TRAFFIC Users: 14,792 v. 7,059 New Users: 14,268 v. 6,928 Sessions: 16,792 v. 7,859 Mobile Views: 13,554 Desktop Views: 1,300 PPV (Page Per Visit): 2.22 20%) TOS (Time on Site): 0:30 (-61.43) ACQUISITION Social: 6,095 v. 1,180 Direct: 4,473 v. 2,971 Organic: 2,339 v. 1,516 Other: 1,348 v. 883 Referral: 538 v. 527 PAGE VIEWS Homepage: 25,163 Places to Stay: 1,618 Events: 1,207 Things to do: 967 GEOGRAPHIC REFERRALS Los Angeles: 6,065 Riverside: 372 San Diego: 370 Santa Ana: 352 Rancho Cucamonga: 253 TOP REFERRING URLS Facebook: 6,059 justjared.com: 32 visitcalifornia.com: 27 centralcoast-tourism.com: 25 track.stumblemail.net: 20 SUMMARY This section would summarize the monthly results from a destination’s website including explanations and notations of trends and other details. Below are sample stats and demographics for reference. SAMPLE STAT SUMMARY REPORT CLIENT Date This report would begin with a summary of the results including explanations and notations of trends and other details. Below are sample channels, platforms and stats for reference. DIGITAL CHANNEL CREATIVE IMPRESSIONS VIEWS CLICKS CTR Facebook :15 sec - General 398,052 17,823 @ 50% 8,316 2.73% Digital Video :15 sec - Brand 128,955 46% comp. rate 138 0.11% AdWords N/A 54,730 N/A 1,911 3.49% Travel Spike Brand video and Native 168,795 3,667 954 0.58% Trip Advisor Millennial video & static 289,389 N/A 627 0.15% TOTAL LEISURE DIGITAL - IMPRESSIONS: 1,039,921 CLICKS: 11,946 AVG CTR: 1.41% PRINT & OUTDOOR PUB / PLATFORM READERSHIP / REACH LEADS Airport Billboard 300,000 N/A Travel 50 & Beyond Winter 115,900 227 Yosemite National Park Previous Print 105 TOTAL PRINT/OUTDOOR - IMPRESSIONS: 315,900 LEADS: 332 GRAND TOTAL IMPRESSIONS: 1,355,821 CLICKS TO WEBSITE: 11,946 LEADS: 332 Regular research, study, conferences and collaboration with technology partners keeps Verdin on the forefront of technology and emerging media. Our in-house digital media buying capabilities mean our clients have access to the most sophisticated digital strategies available, and we have constant access to metrics that tell us how the work is performing. Our Media & Research Strategist tracks the performance of all online media in a live portal that enables us to assess campaign performance, provide detailed reports to clients, and make recommendations and adjustments on a day-by-day basis if needed. During the execute and enhance phase, monthly reporting is essential to ensure that our efforts are effective. Below is a sample report. 1 ·.1111 1 Page 568 of 673 CASE STUDIES Page 569 of 673 24 THE CITY OF ARROYO GRANDE, CA VENTURA COUNTY COAST MARCOM PLATINUM Brian Tucker | btucker@visitvvcoast.com | (805) 644-2500 Page 570 of 673 25© 2018 by Verdin How do you market four diverse locations as one experience? Conversely, how do you give equal attention to all participating locations in a collaborative tourism effort? Ventura County Coast was lacking nothing in regards to natural beauty and desirability, but was in need of careful strategy to position the right balance of diversity and cohesiveness. Our branding and messaging showcases this location as the treasure that it is, while communicating that its four distinct communities complement one another to create one enriching experience. Goal: to increase visitors to Ventura, Oxnard, Camarillo and Port Hueneme. OBJECTIVES Create a new brand to position Ventura County Coast as a desirable, adventurous, and affordable travel destination. Equally represent the four cities that compromise the association. APPROACH Worked with VCLA’s public relations agency to develop a cohesive strategy for all marketing communications. Developed a new logo balancing all that Ventura County Coast represents. Created brand guidelines and a color palette that reflects the region’s experience. Crafted a new positioning statement that clearly and succinctly presents the area. Implemented the new brand in all marketing touch points, including a brand new website. Created marketing messaging for both a leisure audience and B2B audience in “The Whole Point” ad campaign. Developed library of new photography and video reflective of three identified target personas. RESULTS Marcom Platinum award for the new Ventura County Coast brand (highest honor in competition) and American Advertising silver award for first advertising campaign. Incredible success in digital advertising for both leisure and meeting campaigns since launching. Numbers from a recent report: Facebook video ads garnered 377,837 impressions and saw a CTR of 3.00%, which is far above the industry standard. Actions on video (including shares, clicks and comments) totaled 51,906. Digital video ads saw 3,915,329 impressions with 5,766 website clicks. 45% of viewers watched the spot to the end. Travel Spike and Trip Advisor advertising had a combined total of 995,717 impressions and an average CTR of 0.56%. Page 571 of 673 26 THE CITY OF ARROYO GRANDE, CA ATASCADERO TOURISM ADDY BRONZE Amar Sohi | asohi@hieatascadero.org | (805) 462-0200 ISI~ SIMPLY GENUINE Page 572 of 673 27© 2018 by Verdin Goal: to increase overnight stays for hotel and motel accommodations. OBJECTIVES Create and implement a new brand and marketing strategy to position Atascadero, CA as a desirable destination on the Central Coast. Build Atascadero brand awareness and target new visitors to engage in programs and increase awareness. APPROACH Developed new branding which included a new logo, brand guidelines, and clear messaging. Worked with Coraggio Group and assembled a marketing strategy that identified geographic and behavioral markets of millennials, families, boomers, couples and “bleisure” (business/leisure) travelers. Rolled out the new brand through advertising, social media, public relations, and e-marketing. Created and launched four marketing campaigns, including “California As It Used To Be,” The Un-Vacation,” and “The 101 Road Trip” contest. Began updating the visitatascadero.com website in July 2015, including a full website assessment, SEO and content enhancements, implementation of new branding and colors, updated restaurant listings, and a landing page for the Road Trip 101 contest. RESULTS 38% total TOT increase from 2015 Fiscal Year to 2016 Fiscal Year (the first year we worked with this client). In the first year of taking on the website, we saw 98,737 visits to the site, a 176% increase from the same period in time from 2014–2015. Marcom Gold Award for Visit Atascadero brochure and Bronze Addy Award for Visit Atascadero logo design. 61% increase in Facebook fans (3,398 to 5,471). Facebook advertising in first year led to 1,837,460 total impressions and a 2.96% CTR. Pandora and Trip Advisor advertising in first year led to a combined total of 2,518,919 total impressions and an average 0.34% CTR. When people think San Luis Obispo County, they think rolling vineyards and crashing waves. They don’t think “Atascadero.” This inland town was struggling to obtain “top of mind” space in comparison to its neighboring communities of San Luis Obispo, Paso Robles and Morro Bay. Our branding and advertising sheds light on the rural beauty, genuine hospitality and sweet simplicity that make Atascadero an integral part of any San Luis Obispo County getaway. Page 573 of 673 WORK SAMPLES Page 574 of 673 29© 2018 by Verdin THINK H20 CAMPAIGN WATER CONSERVATION CAMPAIGN FOR CITIES OF ARROYO GRANDE AND PISMO BEACH TERESA McCLISH | TMCCLISH@ARROYOGRANDE.ORG | (805) 473-5420 MARCOM PLATINUM We worked with the Cities of Arroyo Grande and Pismo Beach to encourage residents to unite in water conservation efforts. 41% reduction in water consumption in Arroyo Grande 29% reduction in water consumption in Pismo Beach h2~ __ .._ __ 0 0 , -- C:\i:·1'1\:, --- Page 575 of 673 30 THE CITY OF ARROYO GRANDE, CA COMMUNITY WEST BANK WEBSITE Community West Bank’s website helps them stand apart as a community bank that understands and truly cares about its local environment. This website is ADA compliant and offers helpful information for both individuals and businesses. KEVIN MOON | KMOON@COMMUNITYWESTBANK.COM | (805) 692–4379 Keep your finances handy with our new mobile banking app. ywith app. DOWNLOAD TODAY I:::::;:_.···-·.--· ~' @ I -1/ "'= './ 1 @ ~ ~ Personal Manu,actured Home Loans l"'V'l&ncing1ofil)'DU'"'Nd._ I I I I I I I I Page 576 of 673 31© 2018 by Verdin VENTURA COUNTY COAST WEBSITE HTTPS://VENTURACOUNTYCOAST.COM/ Verdin managed the development of Ventura County Coast’s website and supplied copy that channels the region’s welcoming coastal vibe. (Plus, click to the home page to watch the branding video we coordinated and are using in current advertising!) Page 577 of 673 32 THE CITY OF ARROYO GRANDE, CA CENTRAL COAST TOURISM COUNCIL CHRISTINE THOMAS | CHRISTINE@WORKWITHCT.COM | (310) 963–5414 Verdin supports the Central Coast Tourism Council through the development of branded collateral that helps them achieve their initiatives. TRALCOAST The Original Road Trip LOGO TYPOGRAPHY Page 578 of 673 33© 2018 by Verdin VENTURA COUNTY COAST ADVERTISING With messaging tailored to the needs and preferences of each ad’s target audience, designed elements work together with vibrant copy to create the feeling of a Ventura County Coast experience. t ---.:---=-==-· ~-•-.. - Page 579 of 673 34 THE CITY OF ARROYO GRANDE, CA BRENT HAUGEN | BRENT@BHAUGENAGENCY.COM | (612) 281-9730MORROBAYTOURISMBUREAU Through cohesive and engaging marketing campaigns, Verdin and Morro Bay channeled the laid back vibe of “The Morro Bay Way” to elevate the number of tourists, with a 14% increase in TOT as a result of more visitors. PRSA AWARDOFEXCELLENCE 22::~. M IC _,_"' c----... ·-·--------... ·-· In Morro Bay, tour will rock and roll Page 580 of 673 35© 2018 by Verdin VISITOR ALLIANCE OF CAYUCOS STEVE HENNIGH | STEVE@GOODCLEANFUNUSA.COM | (805) 995–1993 How do YOU Cayucos? Verdin worked with the Visitor Alliance of Cayucos to create a vibrant and far-reaching new brand that captures the big and bright personality of a small beach town. ADDY BRONZE CAYUCOS Page 581 of 673 36 THE CITY OF ARROYO GRANDE, CA NAMES VERDIN STANDS BEHIND Dignity Health. ridesharesi • maa 10n U. olllll)o COllncl or gcwrnments goodwill~ central coast···· llmll8 SM!. Cl9!DJcl>e. SLOCOG SAN LUIS OBISPO COUNIY SHERIFF'S OFFICE CUESTA llLIJCOLLEGE R0SE~ILLE CALIFORNIA U I SC O '/ I:. R tv\.ORRO BAY CAL POLY SA N LU I S OBISPO CALll'ORNIA JACK'S HEL,,ING HAN, Page 582 of 673 TO CREATE SUCCESS AND INSPIRE, THROUGH THE POWER OF OUR WORK. MISSION STATEMENT Page 583 of 673 WHO WE ARE Page 584 of 673 39© 2018 by Verdin ARROYO GRANDE COMMUNICATION TEAM STEPHANIE SAWYER Social Media Specialist ERIKA SCHUETZE Public Relations Specialist Subconsultant) ASHLEE AKERS Account Lead DUTIES: Participates in strategic planning meetings, oversees and reviews marketing campaigns and strategies. Serves as primary point of contact, manages client projects, and keeps track of budgets Ashlee leads Verdin’s account staff with zest and zeal. Like any good leader, she knows how to bring the best out of her team. She is the master of meeting and surpassing client needs with a devotion to achieving stellar results for all accounts. EXPERIENCE: 10+ years in marketing and advertising with a focus on destination marketing and tourism Regularly attends travel and tourism conferences to keep up-to-date on strategies and trends Serves on Central Coast Tourism Council Board of Directors Serves on marketing and branding committee for Visit SLO County Experience in a wide-range of campaign strategies and stakeholder education Cal Poly, San Luis Obispo: Agriculture Science/ Agricultural Business DUTIES: Participates in strategic planning, develops and implements social media strategies for the City of Arroyo Grande. Our world traveler, Stephanie brings experience working with large corporations, small businesses, and nonprofits on multiple continents. Stephanie has an exceptional ability to listen to clients’ needs and deliver efficient, thoughtful and creative results. Her knowledge of the digital space guides clients to make meaningful connections through email marketing and social media. EXPERIENCE: Eight years of marketing experience Has provided marketing and volunteer services to organizations in Central and South America Oversees Verdin’s clients’ social media strategies Baylor University: Business Communications DUTIES: Participates in strategic planning, develops and implements public relations strategies for the City of Arroyo Grande. Erika has two decades of experience working with companies and organizations on public relations and strategic communications. She spent years representing leading high-technology companies in Silicon Valley as an account executive in public relations agencies and as an independent consultant. Erika now lives in San Luis Obispo and is passionate about bringing big ideas to causes and companies that improve quality of life here on the Central Coast. EXPERIENCE: 20 years managing PR and cause-marketing campaigns in the education, nonprofit, healthcare and government sectors Clients ranging from pre-IPO startups to Fortune 100 companies Serves on the Board of Directors for Spokes PTA President for Los Ranchos Elementary School Bachelor of Science degree in Public Relations and a Master of Arts degree in Counselor Education from San Jose State University Page 585 of 673 40 THE CITY OF ARROYO GRANDE, CA MEGAN CONDICT Art Director LISA CAMPOLMI Media & Research Strategist AMY DONALD Copywriter DUTIES: Participates in creative planning meetings, develops campaign and ad concepts, oversees and reviews all creative produced for Arroyo Grande. Megan is the helm that steers Verdin’s design in the right direction. Her keen eye and strategic mind lead Verdin to produce work that is strikingly distinct. Each design approach masterfully accomplishes the goals of our clients. EXPERIENCE: 10+ years of design experience in a variety of industries, including technology, outdoor sporting goods, retail, agriculture, nonprofits and tourism Experience working on creative for nationwide and international campaign efforts to reach target markets in Sweden and Japan Notable accounts: Walmart, Tupperware and Sonim Industries Serves on advisory board for Restorative Partners Brooks Institute of Photography: Visual Communications DUTIES: Creates and negotiates individualized, multi-platform comprehensive media strategies, provides the research that is essential for effective strategy development. Lisa is committed to applying the most current trends, technologies and research to each client’s media strategy. Her fascination with the way people consume media keeps her devoted to uncovering the latest research and finding the best ways to maximize a media budget. EXPERIENCE: Sales at some of the largest radio stations in the Los Angeles area (including KFI-AM News Talk and 103.5 Coast FM) Media sales, management and marketing in the San Luis Obispo market since 1999 DUTIES: Participates in creative planning meetings, develops campaign and ad concepts, creates written content for projects. With a communications background and a natural love for writing, Amy is a thoughtful listener who creates strategic messaging through written content. She’s a wordsmithing wizard who believes in the power of writing to tell stories and achieve behavior change. EXPERIENCE: Experience writing content for social media, PR outreach, advertising, blogs, white papers and annual reports Serves on advisory board for Literacy for Life Cal Poly San Luis Obispo: Communication Studies/ Media Arts & Technologies Page 586 of 673 41© 2018 by Verdin PAM RIORDIAN Pam brings enthusiasm and competence to Verdin’s accounting activities. Her organization and knack for numbers ensures accurate billing and timely payments. Bookkeeper REBECCA SCOTT Becca’s hard work and dedication ensures that the office runs smoothly, and her friendly personality sets the tone for a welcoming client experience. Administrative/Account Assistant KATIE PEDERSEN Katie supports our design team with a propensity for perfection, moving design projects forward with adaptability, thoughtfulness and care. Graphic Designer CASEY PAGE Casey converts big ideas into practical possibilities, organizing projects into manageable steps and keeps deliverables on track. Her optimistic outlook and attention to detail move tasks along with positivity and precision. Account Coordinator ARROYO GRANDE SUPPORT TEAM ADAM MORGAN Adam developed extensive marketing intel as a former director in the nonprofit sector. He thrives in client relationships and his attention to detail ensures every project is done to its very best. Marketing Specialist MICHELLE STARNES The cog that keeps us running, Michelle navigates behind the scenes with style and ease. Her oversight of office operations keeps the firm striding forward as a strong partner for clients and an incubator for innovative ideas. Partner & Operations Manager MARY VERDIN Mary has more than 27 years of marketing experience with an energy that keeps ideas fresh and strategic. An innate problem solver and natural leader, she continues to grow the firm with a gusto for finding ways to give back to the community. President & Chief Strategy Officer ADAM VERDIN In addition to his business acumen, Adam is a pilot. He is well-accustomed to a bird’s eye view and uses this big picture mentality to keep the firm strategically focused on our foundations. Principal Page 587 of 673 42 THE CITY OF ARROYO GRANDE, CA WE’RE READY TO INCREASE VISITORS TO ARROYO GRANDE. ARE YOU? Page 588 of 673 2018 by Verdin Marketing. All Rights Reserved. This work is the property of Verdin Marketing and no part of it can be reproduced or transmitted in any form or by any information storage or retrieval system, without the written permission of Verdin Marketing, except where permitted by law. Page 589 of 673 EXHIBIT B PAYMENT SCHEDULE Consultant shall be paid for actual work performed in accordance with Consultant's Proposal. However, the total compensation paid to Consultant shall not exceed $165,000. Consultant will invoice City no more than monthly. Invoices shall be sent to the Chamber of Commerce Executive Director. Each invoice will reference job orders, components, specific services, media costs, production costs, fees and material expense and sales tax where applicable. City shall mail payment to Consultant for the net amount of uncontested invoices no later than thirty (30) days after receipt of each invoice by the City. Any past due balances under this Agreement shall bear interest at the rate of 1.5 percent per month (18.0 annual percentage rate) on unpaid balances. Page 11 Page 590 of 673 EXHIBIT D CITY'S REQUEST FOR PROPOSAL Aix CITY OF M, 200. GRgNO F liv .a4l.ur.+G3 ^ Q CALIFORNIA Request for Proposals Marketing, Communications, Website Management, and Social Media Proposal Submittal Deadline: April 30, 2018 Introduction In 2011, the City of Arroyo Grande formed a Tourism Business Improvement District TBID). The TBID Board of Directors operates as a destination marketing organization under the name of Visit Arroyo Grande. Spearheaded by Arroyo Grande lodging businesses,Visit Arroyo Grande is comprised of ten(10)hotels and twenty-eight(28)vacation rental/home stays.It is governed by a Board of Directors representing the diverse make-up of the Arroyo Grande hospitality industry. The purpose of the TBID is to promote scenic, recreational, cultural and other attractions in the district (the City of Arroyo Grande) as a tourist destination for the benefit of lodging operators. The City is seeking professional full-service integrated marketing, digital marketing, communications, and online media, website, and website maintenance services for www.visitarroyogrande.org and is requesting proposals from qualified firms. Firms should have the capability and experience needed to provide comprehensive, strategic and innovative services on designated projects. The intended end result of the marketing program is to increase tourism to the area which in turn will increase lodging occupancy and average daily room rates. The City's brand (e.g. logo, color palette, tagline, graphics, etc.) are already in place. The Page 16 Page 591 of 673 City wishes to build upon this identity in its future marketing effort with the selected firm. Qualified firms shall make recommendations for the coming fiscal year (July 1, 2018 to June 30, 2019); the contract will be for one year with the option to extend for a second year. Proposal guidelines Firms are expected to prepare beyond the one year mark (July 1, 2018 to June 30, 2019) to implement certain projects;however,projects beyond June 30,2019 are dependent on the annual approved budget. The successful firm will coordinate all services under an Agreement with the City of Arroyo Grande or their designee(s). Firms may provide additional creative/innovative suggestions for deliverables identified in the proposal as "optional deliverables." Firms may submit proposals for one or more components of this Scope of Work. Budget Overall TBID estimated annual budget: $188,000 - $195,000 Marketing agency contract including media buys: not to exceed $165,000 Term This RFP is for a one year agreement with the option to extend for a second year. Marketing and Communications Develop and implement a variety of promotional, publicity and advertising programs, and informational materials consistent with specifications provided. Develop a comprehensive strategic marketing and advertising plan that addresses the following: Propose new, or expand current marketing programs to promote the District(City of Arroyo Grande) and submit time lines for development/implementation. Campaign may include but not be limited to, digital, print, video, radio, outdoor, online media, and direct marketing; Page 17 Page 592 of 673 Identify strategies that increase overnight stays, especially during off-peak seasons; Propose creative tactics such as advertising campaigns and events and packages; and Develop and propose a system of measurable results and outcomes. Online Strategy Complete reports to coincide with monthly meetings of the committee - show metrics and report implications and suggested adjustments and report monthly to lodging operators, TBID and Arroyo Grande City Council; Explain what tools your agency has available for online media monitoring, reporting and analysis, and Brand/reputation monitoring; and Generate all images/creative assets to be paired with posts. Photographs and branding guidelines will be provided by Visit Arroyo Grande from internal marketing database. Firms should also provide the following information: Examples of copy created for online platforms; Examples of graphic content to be paired with editorial copy; Sample of monitoring report format; Best practices report, example of online data analysis and action items; and A description of how agency stays at the forefront of technology and emerging media. Website The firm will take responsibility for all aspects of the Visit Arroyo Grande website, content management system (CMS) and related hosting. The scope of services should include,but is not limited to, all software,hardware,administrator and end user training, hosting, SEO programming and other services required to implement and support the website and should: Be consistent with current and future Americans with Disabilities Act accessibility guidelines and any other applicable state and federal accessibility requirements; Include a privacy policy; Be capable of capturing email addresses; and Include a blog Page 18 Page 593 of 673 City/Chamber Involvement The City and Arroyo Grande-Grover Beach (AGGB) Chamber of Commerce will make every effort to provide demographics information, photos, existing information on economic development tools, pamphlets, resident guides, reports, etc. The firm should strive to be self-sufficient to the extent possible. Consideration/Meeting Requirements The qualified firm should be prepared to meet directly or confer over the phone as needed. The firm will be required to attend monthly TBID meetings,Arroyo Grande City Council Meetings, as needed, prepare an Annual Report, and to make annual presentations. Agreement The project agreement will be based on the final scope of work that is mutually agreed upon between the City and firm(s). The agreement will be negotiated for the project for the extent of services to be rendered and for the method of compensation. Firm(s) are requested to submit a line-item cost estimate that is realistic for the proposed approach. The budget should cover all costs including fees, mileage and production costs. Firm(s) shall not perform any work on the project prior to execution of a written agreement by both the City and the Firm(s), and furnishing of the required insurance certificate and business license by the Firm(s). The City requires a minimum insurance limit of 1,000,000 each for general liability, automobile, and errors and omissions. The draft Consultant Services Agreement is attached hereto as Exhibit A and should be reviewed prior to the RFP submittal. Key Dates March 28, 2018 Release of RFP April 30,2018 Deadline for submittal June 2018 Award of agreement Page 19 Page 594 of 673 July 1, 2018 Commencement of agreement Questions All questions regarding this RFP shall be submitted in writing to Jocelyn Brennan,AGGB Chamber of Commerce, 800A W. Branch St., Arroyo Grande, CA 93420, or via email: jocelyn@aggbchamber.com. Questions with their answers will be posted on the City's Website. Proposal Requirements The document should be standard (81/2" x 11") letter-sized paper. The name and resume of the responsible person who would be in charge of the project, information on team members by role, an estimate of the time required to complete the project; disclosure of billable rate for each task. An executive summary of the proposal being submitted. The proposed fees are to be broken down by task demonstrating how the fee was calculated. Cost proposal shall provide a specific fixed cost estimate and a"not to exceed" cost ceiling. The proposal shall address all hourly wage rates, including all reimbursable expenses and overhead. Describe the Firm's experience, especially as related to completing similar projects as being discussed in this RFP. Identify and provide resumes of any sub-consultants who will be utilized on this project. A proposed project schedule for the fiscal year shall be included in the proposal with verifiable references. Selection Process The AGGB Chamber of Commerce will review responses to the Request for Proposal based on the evaluation criteria below, and make a recommendation to the TBID Board of Directors which will then forward their recommendation to the City Council for final approval of an agreement. Page 20 Page 595 of 673 Qualified firms will be invited to make an oral presentation on their proposal, at the discretion of the TBID Board of Directors. The City reserves the right to reject any and all proposals and to award contract(s) for any, all, or none of the aspects of the Scope of Work. Evaluation Criteria A. Suitability of the Proposal — the proposed solution meets the needs and criteria presented in the RFP. B. Expertise in recommending and communicating appropriate technical and aesthetic solutions as demonstrated by the proposal and references. C. Aesthetic Capabilities — Prior work reflects artistic and innovative, user friendly interfaces that engage communities and viewers. D. Proposal Presentation — The information is communicated in a clear, logical manner and is well organized. General Information A. The City reserves the right to request additional information from any or all of the respondents. B. The City reserves the right to reject any or all of the proposals. Late or incomplete proposals may not be considered. The City shall have sole discretion in determining the completeness of each proposal. C. The City shall reserve the right to contact past clients for references. D. The terms and scope of the agreement will be determined on the basis of professional negotiations between the City and the prospective Firm. If the City and the prospective Firm fail to reach a contractual agreement, the City may negotiate with any other highly ranked consultant. E. The City reserves the right to waive minor discrepancies and to reject any and all proposals for any reason. Proposal Submittal Requirements Quantity - Four (4) copies (three bound and one unbound), plus one electronic copy in Adobe Acrobat (PDF) format. Deadline for Submittal - The filing deadline for submittal of the above proposal is 5:00 p.m. on Monday, April 30,2018. The City reserves the right to extend the deadline date. All documents should be sent in a sealed package, clearly marked "RFP AGTBID" to Page 21 Page 596 of 673 Jocelyn Brennan,AGGB Chamber of Commerce,800A W.Branch St.,Arroyo Grande,CA 93420. Specific Deliverables The consultant shall develop a comprehensive portfolio that addresses, at a minimum, the following: 1. Develop strategy to quantify success on marketing campaign through initiatives that measure return on investment; 2. Next phase brand identity that includes but is not limited to advertising campaigns; 3. Develop tourism incentives that include package deals for hotels; 4. Enhance social media presence in Facebook, Twitter, Instagram, Pinterest, YouTube and other social media outlets as they arise. Integrate social media with visitarroyogrande.org and create other strategies to boost internet traffic visibility; 5. Build a feeder market strategy to increase traffic from cities LA and SF; 6. Respond to TripAdvisor, Travelzoo, and other internet-based tourism sites; and 7. Collaborate with major attractions and special events. Firms may provide additional creative/innovative suggestions for deliverables identified in the proposal as "optional deliverables". Page 22 Page 597 of 673 Page 12 EXHIBIT C INSURANCE REQUIREMENTS Prior to the beginning of and throughout the duration of the Work, Consultant will maintain insurance in conformance with the requirements set forth below. Consultant will use existing coverage to comply with these requirements. If that existing coverage does not meet the requirements set forth here, Consultant agrees to amend, supplement or endorse the existing coverage to do so. Consultant acknowledges that the insurance coverage and policy limits set forth in this section constitute the minimum amount of coverage required. Any insurance proceeds available to City in excess of the limits and coverage required in this agreement and which is applicable to a given loss, will be available to City. Consultant shall provide the following types and amounts of insurance: Commercial General Liability Insurance using Insurance Services Office “Commercial General Liability” policy from CG 00 01 or the exact equivalent. Defense costs must be paid in addition to limits. There shall be no cross liability exclusion for claims or suits by one insured against another. Limits are subject to review but in no event less than 1,000,000 per occurrence. Business Auto Coverage on ISO Business Auto Coverage from CA 00 01 including symbol 1 (Any Auto) or the exact equivalent. Limits are subject to review, but in no event to be less than $1,000,000 per accident. If Consultant owns no vehicles, this requirement may be satisfied by a non-owned auto endorsement to the general liability policy described above. If Consultant or Consultant’s employees will use personal autos in any way on this project, Consultant shall provide evidence of personal auto liability coverage for each such person. Workers Compensation on a state-approved policy form providing statutory benefits as required by law with employer’s liability limits no less than $1,000,000 per accident or disease. Professional Liability or Errors and Omissions Insurance as appropriate shall be written on a policy form coverage specifically designated to protect against acts, errors or omissions of the Consultant and “Covered Professional Services” as designated in the policy must specifically include work performed under this agreement. The policy limit shall be no less than $1,000,000 per claim and in the aggregate. The policy must “pay on behalf of” the insured and must include a provision establishing the insurer’s duty to defend. The policy retroactive date shall be on or before the effective date of this agreement. Page 598 of 673 Page 13 Insurance procured pursuant to these requirements shall be written by insurer that are admitted carriers in the state California and with an A.M. Bests rating of A- or better and a minimum financial size VII. General conditions pertaining to provision of insurance coverage by Consultant. Consultant and City agree to the following with respect to insurance provided by Consultant: 1. Consultant agrees to have its insurer endorse the third party general liability coverage required herein to include as additional insureds City, its officials employees and agents, using standard ISO endorsement No. CG 2010 with an edition prior to 1992. Consultant also agrees to require all Consultants, and subContractors to do likewise. 2. No liability insurance coverage provided to comply with this Agreement shall prohibit Consultant, or Consultant’s employees, or agents, from waiving the right of subrogation prior to a loss. Consultant agrees to waive subrogation rights against City regardless of the applicability of any insurance proceeds, and to require all Consultants and subContractors to do likewise. 3. All insurance coverage and limits provided by Consultant and available or applicable to this agreement are intended to apply to the full extent of the policies. Nothing contained in this Agreement or any other agreement relating to the City or its operations limits the application of such insurance coverage. 4. None of the coverages required herein will be in compliance with these requirements if they include any limiting endorsement of any kind that has not been first submitted to City and approved of in writing. 5. No liability policy shall contain any provision or definition that would serve to eliminate so-called “third party action over” claims, including any exclusion for bodily injury to an employee of the insured or of any Consultant or subcontractor. 6. All coverage types and limits required are subject to approval, modification and additional requirements by the City, as the need arises. Consultant shall not make any reductions in scope of coverage (e.g. elimination of contractual liability or reduction of discovery period) that may affect City’s protection without City’s prior written consent. 7. Proof of compliance with these insurance requirements, consisting of certificates of insurance evidencing all of the coverages required and an additional insured endorsement to Consultant’s general liability policy, shall be delivered to City at or prior to the execution of this Agreement. In the event such proof of any insurance is not delivered as required, or in the event such insurance is canceled at any time and no replacement coverage is provided, City has the right, but not the duty, to obtain any insurance it deems necessary to protect its interests under this or any other agreement and to pay the premium. Any premium so paid by City shall be charged to and promptly paid by Consultant or deducted from sums due Consultant, at City option. Page 599 of 673 Page 14 8. Certificate(s) are to reflect that the insurer will provide 30 days notice to City of any cancellation of coverage. Consultant agrees to require its insurer to modify such certificates to delete any exculpatory wording stating that failure of the insurer to mail written notice of cancellation imposes no obligation, or that any party will “endeavor” (as opposed to being required) to comply with the requirements of the certificate. 9. It is acknowledged by the parties of this agreement that all insurance coverage required to be provided by Consultant or any subContractor, is intended to apply first and on a primary, noncontributing basis in relation to any other insurance or self insurance available to City. 10. Consultant agrees to ensure that subContractors, and any other party involved with the project who is brought onto or involved in the project by Consultant, provide the same minimum insurance coverage required of Consultant. Consultant agrees to monitor and review all such coverage and assumes all responsibility for ensuring that such coverage is provided in conformity with the requirements of this section. Consultant agrees that upon request, all agreements with subContractors and others engaged in the project will be submitted to City for review. 11. Consultant agrees not to self-insure or to use any self-insured retentions or deductibles on any portion of the insurance required herein and further agrees that it will not allow any Consultant, subContractor, Architect, Engineer or other entity or person in any way involved in the performance of work on the project contemplated by this agreement to self-insure its obligations to City. If Consultant’s existing coverage includes a deductible or self-insured retention, the deductible or self-insured retention must be declared to the City. At the time the City shall review options with the Consultant, which may include reduction or elimination of the deductible or self-insured retention, substitution of other coverage, or other solutions. 12. The City reserves the right at any time during the term of the contract to change the amounts and types of insurance required by giving the Consultant ninety (90) days advance written notice of such change. If such change results in substantial additional cost to the Consultant, the City will negotiate additional compensation proportional to the increase benefit to City. 13. For purposes of applying insurance coverage only, this Agreement will be deemed to have been executed immediately upon any party hereto taking any steps that can be deemed to be in furtherance of or towards performance of this Agreement. 14. Consultant acknowledges and agrees that any actual or alleged failure on the part of City to inform Consultant of non-compliance with any insurance requirements in no way imposes any additional obligations on City nor does it waive any rights hereunder in this or any other regard. Page 600 of 673 Page 15 15. Consultant will renew the required coverage annually as long as City, or its employees or agents face an exposure from operations of any type pursuant to this agreement. This obligation applies whether or not the agreement is canceled or terminated for any reason. Termination of this obligation is not effective until City executes a written statement to that effect. 16. Consultant shall provide proof that policies of insurance required herein expiring during the term of this Agreement have been renewed or replaced with other policies providing at least the same coverage. Proof that such coverage has been ordered shall be submitted prior to expiration. A coverage binder or letter from Consultant’s insurance agent to this effect is acceptable. A certificate of insurance and/or additional insured endorsement as required in these specifications applicable to the renewing or new coverage must be provided to City within five days of the expiration of the coverages. 17. The provisions of any workers’ compensation or similar act will not limit the obligations of Consultant under this agreement. Consultant expressly agrees not to use any statutory immunity defenses under such laws with respect to City, its employees, officials and agents. 18. Requirements of specific coverage features or limits contained in this section are not intended as limitations on coverage, limits or other requirements nor as a waiver of any coverage normally provided by any given policy. Specific reference to a given coverage feature is for purposes of clarification only as it pertains to a given issue, and is not intended by any party or insured to be limiting or all-inclusive. 19. These insurance requirements are intended to be separate and distinct from any other provision in this agreement and are intended by the parties here to be interpreted as such. 20. The requirements in this Section supersede all other sections and provisions of this Agreement to the extent that any other section or provision conflicts with or impairs the provisions of this Section. 21. Consultant agrees to be responsible for ensuring that no contract used by any party involved in any way with the project reserves the right to charge City or Consultant for the cost of additional insurance coverage required by this agreement. Any such provisions are to be deleted with reference to City. It is not the intent of City to reimburse any third party for the cost of complying with these requirements. There shall be no recourse against City for payment of premiums or other amounts with respect thereto. 22. Consultant agrees to provide immediate notice to City of any claim or loss against Consultant arising out of the work performed under this agreement. City assumes no obligation or liability by such notice, but has the right (but not the duty) to monitor the handling of any such claim or claims if they are likely to involve City. Page 601 of 673 Item 11.b. MEMORANDUM TO: City Council FROM: Whitney McDonald, City Manager Bill Robeson, Assistant City Manager/Public Works Director Nicole Valentine, Administrative Services Director SUBJECT: Discussion and Consideration of Approval of the Fiscal Year (FY) 2022-23 Mid-Cycle Budget Update Report, the 5-Year Capital Improvement Program Budget, and the Updated Citywide Combined Salary Schedule, Including the Salary Range for a Management Analyst DATE: June 14, 2022 SUMMARY OF ACTION: Approval of the detailed budget adjustments listed in the Budget Update Report and adoption of the attached Resolution to approve the Fiscal Year (FY) 2022-23 Budget will allow the City to continue funding all City services after the end of the current fiscal year on June 30, 2022, and to meet Council-directed goals and priorities for the fiscal year. The recommended action includes adoption of a Resolution to approve the 5-Year Capital Improvement Budget and a Resolution to update the Citywide Combined Salary Schedule and salary range for a Management Analyst position. Finally, direction and appropriation of excess reserves toward specific expenditures will provide one-time funding for one- time expenditures that will also help meet the City Council’s goals and priorities. IMPACT ON FINANCIAL AND PERSONNEL RESOURCES: The proposed Mid-Cycle Update for FY 2022-23 Budget recommends approximately $47.8 million in expenditures, including operating costs such as salaries, benefits, services, supplies, maintenance, debt service, and capital related items. The proposed General Fund budget includes approximately $21.9 million in expenditures in FY 2022- 23. The proposed budget includes funding for two new positions, a Management Analyst and a Maintenance Worker, which will increase expenditures by approximately $275,370. The proposed FY 2022-23 Mid-Cycle General Fund budget utilizes excess fund balance reserves to pay for a combination of one -time and ongoing expenditures that will exceed expected revenues in order to address several goals and priorities discussed previously with the City Council. However, as presented, fund balance reserves are expected to remain at 31.8%, well above the adopted 20% goal, and the ongoing expenditures Page 602 of 673 Item 11.b. City Council Discussion and Consideration of Approval of the Fiscal Year (FY) 2022-23 Mid- Cycle Budget Update Report, the 5-Year Capital Improvement Program Budget, and the Updated Citywide Combined Salary Schedule, Including the Salary Range for a Management Analyst June 14, 2022 Page 2 proposed in the FY 2022-23 Mid-Cycle General Fund budget are expected to be approximately $182,100 lower than revenues. At the end of FY 2022-23, the projected fund balance is approximately $2,585,000 greater than the 20% goal. Because the act of allocating excess reserves adds to budgeted expenditures, the amount available to spend while keeping the reserve at 20% is $2,150,000. The 5-year Capital Improvement Program discussed in detail at the May 24, 2022 City Council meeting allocates $69.9 million for projects, from various funding sources, over a 5-year period. RECOMMENDATION: 1) Discuss, consider, and adopt a Resolution approving the FY 2022-23 Mid-Cycle Budget Update and a Resolution approving the 5-Year Capital Improvement Program Budget; 2) Discuss, consider, and appropriate $2,150,000 of the Reserve Fund Balance toward directed expenditures; and 3) Adopt a Resolution establishing a salary range for a Management Analyst position and approving the updated Citywide Combined Salary Schedule. BACKGROUND: Each year the City Council adopts a budget, which commits resources for the next Fiscal Year. The City Council adopted the FY 2021-22 and 2022-23 Biennial Budget on June 8, 2021 (Attachment 6). The biennial budget process includes updates each quarter of the first year, a Mid-Cycle Update at the beginning of the second year that also includes appropriation of the second year budget , and updates each quarter of the second year. Quarterly updates for the FY 2021-22 have been provided on December 14, 2021, February 22, 2022, and May 10 ,2022. On May 10, 2022, the City Council approved update d Goals and Priorities for FY 2022- 23 (Attachment 7). Additionally, on May 24, 2022, the City Council provided direction on the 5-year Capital Improvement Program (CIP) budget and the 5-Year Local Sales Tax Fund Expenditures Program (Attachment 8). The prioritization and direction provided by the City Council at these previous meetings have been incorporated into the FY 2022-23 Mid-Cycle Budget Update. The FY 2022-23 Budget was also developed with input from all City departments in a collaborative effort to provide staff’s best professional judgment regarding current and future needs of the City, including needs to carry out the Goals and Priorities identified in Attachment 7. The Capital Improvement Program reviewed by Council on May 24, 2022, was provided to the Planning Commission on June 7, 2022, for a determination of consistency with the Page 603 of 673 Item 11.b. City Council Discussion and Consideration of Approval of the Fiscal Year (FY) 2022-23 Mid- Cycle Budget Update Report, the 5-Year Capital Improvement Program Budget, and the Updated Citywide Combined Salary Schedule, Including the Salary Range for a Management Analyst June 14, 2022 Page 3 City’s General Plan. A project description is provided for each proposed project in the CIP for FY 2022-23 with information on the funding also being provided. ANALYSIS OF ISSUES: General Fund Overview On November 9, 2021, the City Council reviewed the FY 2020 -21 Year-End Financial Status report summarizing the Fund Balance at the end of FY 2020-21. The General Fund Balance at that time was $8 million. This ending balance for FY 2020 -21 then becomes the beginning balance for FY 2021-22. The projected available General Fund Balance at June 30, 2022, is approximately $8 million. This equates to 39.3% of appropriations, which is higher than the City Council minimum fund balance goal of 20%. Though General Fund expenditures are expected to outpace revenues in FY 2021-22 by $64,000, as the table below shows, the year will end with a healthy projected fund balance of $8 million (see “2021-22 Estimated Actual” column). This projected fund balance is lower than what was originally projected in the adopted FY 2021-23 Biennial Budget due to Council direction provided on July 27, 2021 to allocate excess available Fund Balance towards the Pavement Management Program. With this Mid-Cycle Budget Update, as proposed, expenditures will out-pace revenues and include the allocation of excess available Fund Balance to proposed adjustments to the adopted FY 2021-23 Biennial Budget. Even with the proposed adjustments and expenditures, FY 2022-23 is projected to end with a fund balance of $6.9 million, which represents 31.8% of total operating expenditures in the General Fund. This will be $2.6 million above the reserve policy guideline of 20 %. Page 604 of 673 Item 11.b. City Council Discussion and Consideration of Approval of the Fiscal Year (FY) 2022-23 Mid- Cycle Budget Update Report, the 5-Year Capital Improvement Program Budget, and the Updated Citywide Combined Salary Schedule, Including the Salary Range for a Management Analyst June 14, 2022 Page 4 General Fund Budget & Available Fund Balance (thousands) General Fund Revenues As shown in the chart below, Sales and Property Taxes comprise the largest source of revenue in the General Fund, together accounting for approximately 61% of revenue in that fund. Given this dependence on just two revenue sources, fluctuations in the amount of taxes received can have profound impacts on the City’s ability to pro vide services. Fortunately, as long as the real estate market stays reasonably strong, property taxes are a relatively stable revenue source. 2020-21 ADOPTED AMENDED ESTIMATED CURRENT PROPOSED ACTUAL BUDGET BUDGET ACTUAL BUDGET BUDGET Beginning Fund Balance $5,930 $8,063 $8,063 $8,063 $7,999 $7,999 Revenues 16,337 16,414 16,566 17,187 16,969 17,888 Transfers In 2,717 3,047 3,089 3,089 3,013 3,013 Total Revenues 19,054 19,461 19,656 20,277 19,982 20,901 Salaries and Benefits 10,261 11,779 11,971 11,971 11,858 12,774 Services and Supplies 6,048 6,770 6,730 6,565 6,716 7,199 Debt Service 60 130 130 130 198 286 Capital Outlay 24 45 54 54 166 454 Transfers Out 527 466 2,344 1,622 413 1,216 Total Expenditures 16,920 19,189 21,229 20,341 19,352 21,929 Total Operating Incr/(Decr)2,133 271 (1,574) (64) 630 (1,028) Available Fund Balance $8,063 $8,334 $6,490 $7,999 $8,630 $6,971 Reserve %47.7%43.4%30.6%39.3%44.6%31.8% $ Above Reserve Policy $4,679 $4,496 $2,244 $3,931 $4,759 $2,585 2021-22 2022-23 Page 605 of 673 Item 11.b. City Council Discussion and Consideration of Approval of the Fiscal Year (FY) 2022-23 Mid- Cycle Budget Update Report, the 5-Year Capital Improvement Program Budget, and the Updated Citywide Combined Salary Schedule, Including the Salary Range for a Management Analyst June 14, 2022 Page 5 2022-23 General Fund Revenues $20.9 million total Overall, General Fund tax revenues have been trending upward over the past several years and are expected to continue increasing in FY 2022-23. Based on the latest information provided by the County Auditor-Controller’s Office, Property tax revenues are estimated to increase by 4% or $163,000 over the estimated FY 2021-22 actual revenue received. This is an increase of $300,000 from the current FY 2022-23 budget. These increases are the result of an increase in the assessed valuation of properties in Arroyo Grande and a housing market that has remained robust th roughout the past year. Transiency Occupancy Tax (TOT) revenues have been trending upward compared to revenues received during the COVID-19 pandemic. TOT revenues are estimated to increase $240,500 over the FY 2022-23 current budget. This is the result of an increase in tourism in Arroyo Grande that has continued to increase back to pre -pandemic levels throughout the past year. Sales tax receipts continue to increase, up 4% in FY 2021-22. Based on projections from the City’s sales tax consultant, HdL, Sales Tax revenues are estimated to increase by 1.1% or $89,600 over the FY 2021-22 estimated actual. This is an increase of $66,700 from the FY 2022-23 current budget. Page 606 of 673 Item 11.b. City Council Discussion and Consideration of Approval of the Fiscal Year (FY) 2022-23 Mid- Cycle Budget Update Report, the 5-Year Capital Improvement Program Budget, and the Updated Citywide Combined Salary Schedule, Including the Salary Range for a Management Analyst June 14, 2022 Page 6 General Fund Tax Revenues (millions) Actual revenue received from Building and Planning fees have been lower than estimated in the adopted budget. Overall, Building and Planning revenues are growing at a steady increase based on current activity levels, but the current budget projections do not reflect actual receipts in previous years. The proposed Mid-Cycle Budget Update for FY 2022- 23 decreases the budgeted revenue from Planning and Building fees by approximately $318,300 to better reflect anticipated actuals. Recreation revenues for Special Interest Classes are increased by approximately $96,000 in the proposed Mid-Cycle Budget Update for FY 2022-23 to account for the increased activities that the Recreation Services Department is providing to the community. In 2018, the City Council directed that the Recreation Services Department seek to achieve cost recovery at 100%. During the COVID-19 pandemic, a reduction of Recreation Services revenue occurred due to school closures, social distancing and indoor masking policies, additional cleaning and licensing regulations, as well as, stay-at- home orders. In light of the significant impacts of the pandemic, the current budget for FY 2022-23 projected revenues of $600,635, which equates to 53% cost recovery. The increase in revenue from Special Interest Classes totaling $96,000, plus the increase ELOP revenue totaling $126,000 (discussed further below), will bring projected Recreation revenue to approximately $822,610 in FY 2022-23, which equates to 67% Page 607 of 673 Item 11.b. City Council Discussion and Consideration of Approval of the Fiscal Year (FY) 2022-23 Mid- Cycle Budget Update Report, the 5-Year Capital Improvement Program Budget, and the Updated Citywide Combined Salary Schedule, Including the Salary Range for a Management Analyst June 14, 2022 Page 7 cost recovery. A fee study is planned for the upcoming fiscal year that will include an updated analysis and recommendation on Recreation Cost Recovery moving forward. Additional revenues variances include:  Two programs funded by the Lucia Mar Unified School District: o Increase of $7,350 for the School Resource Officer through an MOU based on a 50/50 share of the Police Officer’s standard rate of pay. o Increase of up to $126,000 for the Expanded Learning Opportunities Program (ELOP), which provides state grant funding for afterschool and summer school enrichment programs for kindergarten through sixth grade. Equal expenditures were built into the budget . This program should be cost neutral to the City to operate.  Decrease of $6,040 in Business License revenue based on current trends.  Increase of $17,000 in Sanitation District Billing services the City will continue to provide in FY 2022-23.  Increase of $380,000 in Surplus Police Department Vehicle revenue . The majority of this will offset the cost of replacement vehicles and the debt service payment for new patrol services leased vehicles.  Inclusion of Santa Cop Donation Program totaling $10,000 in the budget. The total increases in proposed updates to the General Fund Revenue included in the Mid-Cycle Budget Update increase the FY 2022-23 Budget by $919,207. General Fund Expenditures The following two charts show the proposed $21.9 million General Fund expenditure budget for fiscal year 2022-23, both in terms of the relative size of each department as well as the total dollars budgeted for each department. As the charts show, the Police Department is the City’s largest function with 29% of the budget. Community Development and Public Works receive 10% and 11% of 2022-23 General Fund budget resources, respectively. The “Non-Departmental” category represents 20% of the General Fund budget and includes items that affect all departments, such as the annual payment on the City’s Unfunded Actuarial Liability, property an d general liability insurance, and transfers to the Street and Capital Improvement Project funds. Page 608 of 673 Item 11.b. City Council Discussion and Consideration of Approval of the Fiscal Year (FY) 2022-23 Mid- Cycle Budget Update Report, the 5-Year Capital Improvement Program Budget, and the Updated Citywide Combined Salary Schedule, Including the Salary Range for a Management Analyst June 14, 2022 Page 8 2022-23 General Fund Expenditures by Department $21.8 million total 2022-23 General Fund Expenditures by Department $21.8 million total The tables in the following pages identify specific budget request items in the FY 2022- 23 Mid-Cycle Budget in the areas of staffing, vehicle and equipment purchases, and other Page 609 of 673 Item 11.b. City Council Discussion and Consideration of Approval of the Fiscal Year (FY) 2022-23 Mid- Cycle Budget Update Report, the 5-Year Capital Improvement Program Budget, and the Updated Citywide Combined Salary Schedule, Including the Salary Range for a Management Analyst June 14, 2022 Page 9 expenditure items. The total General Fund Expenditure requests included in the Mid- Cycle Budget Update increase the FY 2022-23 Budget by $2,577,675. Proposed Salary and Benefits Requests $915,900 During the Mid-Year Financial Status report on February 22, 2022 the City Council approved an Associate Engineer position within the Public Works Department to provide additional Capital Improvement Program (CIP) support. With the influx of American Rescue Plan Act (ARPA) Funds, there is a large increase in CIP projects to complete in addition to the growing infrastructure projects that the City has planned to complete in the future. This position was not originally included in the FY 2022 -23 budget and accounts for a portion of the proposed staffing requests listed below. Staff are also requesting to add two additional positions:  Management Analyst to the City Manager’s Office to support the evaluation and completion of special projects and internal and external projects that have been identified as priorities by the City Council.  Parks Maintenance Worker to the Public Works Department to provide additional support for the maintenance of a high standard of service at all City park and open space facilities, including services for additional recreation events and offerings to the community. Proposed Staffing Requests Salaries and benefit costs included in the proposed Mid-Cycle Budget Update for FY 2022-23 reflect contractually obligated increases (current bargaining group contracts, which expire June 30, 2024). An Updated Citywide Salary Schedule is proposed for approval in Attachment 5 to implement these changes and to establish a salary range for the proposed Management Analyst position. This budget proposal also includes funding for a true-up payment to the Five Cities Fire Authority (FCFA) totaling an estimated $550,000 ($50,000 per year for 10 years + $50,000 for FY 2022-23) for the City’s share of accrued actuarial liability for employees who worked for the City before the FCFA was formed. The FCFA was formed in July 2010 as a Joint Powers Authority. At that time, the FCFA became the employer for fire safety personnel previously employed by its member agencies. The City of Grover Beach and the Oceano Community Services District retained the CalPERS liabilities for the past Position Budget Increase Associate Engineer 168,730 Parks Maintenance Worker 99,420 Management Analyst 175,950 Page 610 of 673 Item 11.b. City Council Discussion and Consideration of Approval of the Fiscal Year (FY) 2022-23 Mid- Cycle Budget Update Report, the 5-Year Capital Improvement Program Budget, and the Updated Citywide Combined Salary Schedule, Including the Salary Range for a Management Analyst June 14, 2022 Page 10 service of their employees. No new CalPERS plan was created for the FCFA and instead all FCFA employees have been covered under the City of Arroyo Grande’s CalPERS pension plans. As a result, the City’s CalPERS plans include liabilities for employees and retirees of the City and of FCFA. Since the JPA was formed, FCFA has paid the full costs of the City’s Fire Safety CalPERS plans. As a result, the FCFA has been paying the CalPERS liabilities of City of Arroyo Grande employees that were incurred before the FCFA was formed. The City will be required to pay back these amounts as part of the unwinding process contemplated in the Third Amendment to the JPA, if the unwinding process is triggered. The FCFA retained the actuarial firm Bartel & Associates to calculate the actuarial accrued liability (AAL) for each person in the Fire Safety Classic tier, mirroring CalPERS actuarial valuation methods and assumptions, and estimated that the City’s share of CalPERS liabilities for its pre-FCFA employees was approximately $52,000 for one year. Bartel & Associates will be requested to complete a detailed review of the past ten years to tally the City’s total amount owed, which is anticipated to be approximately $500,000. This amount, plus this upcoming fiscal year’s payment, are included in the proposed Mid-Cycle Budget Update for FY 2022-23. Workers’ Compensation insurance through CalJPIA is $872,300 for FY 2022-23. Of that amount, approximately 27% or $235,000 is allocated to FCFA, leaving $637,300 allocated to Arroyo Grande. This is an increase of $71,600 over current budget amounts. Services and Supplies Requests $483,487 As discussed in the General Fund revenue section of this report, the ELO Program that provides funding for afterschool and summer school enrichment program s for kindergarten through sixth grade totaling $126,000 and the Santa Cop Donation Program totaling $10,000 are both cost neutral, meaning the revenues should cancel out the expenditures. However, these items are included as expenditure variances due to the fact that they were not included in the FY 2022-23 budget adopted in June 2021. Additionally, staff is requesting to increase Contractual Services totaling $334,556 within the following departments:  City Manager’s Office totaling $12,000 for Council goals facilitation services, potential staff retreat support, and services supporting regional efforts;  Legislative and Information Services Department totaling $38,900 for public outreach, ballot informational mailer and advertising, and an electronic signature program to provide greater efficiencies when processing important documents;  Legal Services Agreement totaling $6,800;  Animal Services Contract totaling $12,556;  Human Resources Division totaling $30,000 for the salary survey being completed in FY 2022-23, originally budget for FY 2021-22;  Administrative Services Department totaling $234,300 including: Page 611 of 673 Item 11.b. City Council Discussion and Consideration of Approval of the Fiscal Year (FY) 2022-23 Mid- Cycle Budget Update Report, the 5-Year Capital Improvement Program Budget, and the Updated Citywide Combined Salary Schedule, Including the Salary Range for a Management Analyst June 14, 2022 Page 11 o $9,000 for GASB 87 and 95 additional requirements, o $50,000 for Development Impact Fee study being completed in FY 2022- 23, originally budget for FY 2021-22, o $75,000 for Accounting and Human Resources Support to help streamline and update outdated policies and procedures, o $16,900 for an additional platform for the City’s existing human resources software, o $38,500 to upgrade to Microsoft Office 365, o $24,900 for budget software to streamline processes, reduce redundancies, and create a user-friendly platform for the public to easily navigate the budget document, and o $20,000 for IT Support Services to assist in the transition of a new IT Manager when the current staff member retires in August. The proposed Mid-Cycle Budget Update also includes an increase in the Police Department’s budget for minor adjustments to 10 line items, reflecting a total increase of $38,000. This increase would include:  Law Enforcement Wellness support to provide resources for officers and staff who are involved in critical incidents;  Outside background screening for new hires;  Continuing education opportunities to increase knowledge and expertise in daily operation, including training in de-escalation techniques that are used on a frequent, if not daily, basis that will reduce liability while enhancing the effectiveness and safety of the suspect, the pu blic, and the officer in dealing with potentially violent encounters;  Increased maintenance of the building and grounds at the Police Station to exemplify professionalism and community pride and janitorial support to provide additional resources due to COVID-19 exposures and contamination at the Police station;  Funding to cover the rising costs in medical supplies and equipment, such as AED battery packs, Naloxone (Narcan), hemostatic bleeding control, and tourniquets;  Increase in costs for LIDAR (hand-held laser speed detection device) calibration.  Add a dedicated server to support digital evidence retention specific to UAV/Drones and a pilot use tracking software program to assist in required monthly FAA reports; Other requested expenditure variances include:  Increase in Human Resource division to include $2,000 for travel and training;  Increase in Gas and Oil related costs totaling $12,000; Page 612 of 673 Item 11.b. City Council Discussion and Consideration of Approval of the Fiscal Year (FY) 2022-23 Mid- Cycle Budget Update Report, the 5-Year Capital Improvement Program Budget, and the Updated Citywide Combined Salary Schedule, Including the Salary Range for a Management Analyst June 14, 2022 Page 12  Decrease of $38,369 in liability insurance costs through CalJPIA compared to current budget amounts. Vehicle Replacement Requests $375,503 As detailed in the table below, the proposed bud get includes a request for $1,292,000 in vehicles and equipment. Several City vehicles that were previously leased have reached the end of their useful lives. In some cases, th e budget recommends entering into new leases and, where possible, a recommendation is made to purchase with cash to save financing costs. It is important to note that all vehicles due for replacement are evaluated to determine the status of their operating condition and whether or not their replacement can be delayed. Proposed Vehicle Replacement Requests The table reflects the total cost of vehicles that will be leased over a four-year term. The FY 2022-23 budget includes principal and interest payments for the first year’s payments, and the remaining amounts will be included in future budgets. The 4 proposed Police vehicles for purchase included in the proposed vehicle replacement request total $247,300 and the estimated lease payment for the 9 leased vehicles is estimated to be $178,000 totaling $425,300 in FY 2022-23. The City anticipates receiving $380,000 in Surplus revenue from the sale of the existing vehicles that will offset this cost, reducing the net impact to $45,300. General Fund Transfer to Capital Improvement Program (CIP) $802,785 On May 24, 2022, the City Council provided direction on the 5 -year CIP budget that included an anticipated transfer of $802,785 from the General Fund to upcoming 5-Year CIP. The proposed Mid-Cycle Update for the FY 2022-23 budget includes the transfer of funding for two projects that are included in the proposed 5-Year CIP as follows: Fund Type # of units Lease/Buy Current Proposed Variance General Riding Mower 1 Buy 75,900 95,000 19,100 Streets Wood Chipper 1 Buy 48,100 63,500 15,400 Water 1/2 Ton Pickup 1 Buy 45,000 45,000 - Water/Streets Air Compressor 1 Buy 30,000 30,000 - General 3/4 Ton Pickup w/Utility Bed 1 Buy 61,000 61,000 - Streets Dump Truck 1 Buy 100,000 100,000 - Police Ford Explorers 9 Lease 377,039 - (377,039) Police Ford Explorers 7 Lease - 491,900 491,900 Police Ford Expeditions 2 Lease - 158,300 158,300 Police Ford Ranger Crew Cab 2 Buy - 111,200 111,200 Police Ford F250 1 Buy - 73,200 73,200 Police Ford Transit Van 1 Buy - 62,900 62,900 737,039 1,292,000 554,961 Page 613 of 673 Item 11.b. City Council Discussion and Consideration of Approval of the Fiscal Year (FY) 2022-23 Mid- Cycle Budget Update Report, the 5-Year Capital Improvement Program Budget, and the Updated Citywide Combined Salary Schedule, Including the Salary Range for a Management Analyst June 14, 2022 Page 13  $764,585 for the Pavement Management Program (PMP). This transfer represents funding previously allocated from excess reserves by the City Council on July 27, 2021, to the 2021 PMP. At that time, the total funding allocated reached $1,751,000; however, the actual contract price for the project was lower t han the budgeted amount by $764,585. It is proposed that this funding be returned to the new 5-Year CIP to be used for the PMP in FY 2022-23.  $30,000 for the design study of the Short Street Plaza. The design portion of this project is proposed to be funded with General Fund monies, requiring a transfer of this funding to the CIP. APPROPRIATION OF EXCESS AVAILABLE GENERAL FUND BALANCE: During the FY 2021-23 Biennial Budget hearings, staff recommended bringing forward a future agenda item to address the fund balance above the 20% Fund Balance Goal Limit and to appropriate funds, if applicable, to certain expenditures. It is recommended that this FY 2022-23 Mid-Cycle Budget Update process include consideration of excess General Fund Balance and potential appropriation for expenditures as directed by Council. At the end of FY 2022-23, the projected fund balance is approximately $2,585,000 greater than the 20% goal. Because the act of allocating excess reserves adds to budgeted expenditures, the amount available to spend while keeping the reserve at 20% is $2,150,000. This is the amount staff recommend s discussing and potentially appropriating as part of this item. In general, the funding available as excess reserves at this time result from a combination of one-time events. For instance, when the COVID-19 pandemic began, staff proposed and the City Council approved a number of cost-saving measures to reduce expenditures more than $1.2 million below the approved FY 2019 -20 budget in light of anticipated reductions in revenue. For instance, vacant Police and Community Development positions were not filled, training and consultant services budgets were reduced, and planned vehicle replacements were delayed. As the pandemic continued, revenue projections for FYs 2020-21 and 2021-23 conservatively estimated only modest increases due to the many unknown economic impacts of th e public health crisis. However, actual revenue received exceeded estimates for unexpected reasons, such as federal COVID relief funding, sales tax revenue resulting from a large one -time equipment purchase by a local vendor, and increases in property tax revenues above the County’s projections. The proposed Mid-Cycle Budget for FY 2022-23 accounts for the newly projected increases in ongoing revenue, but the other causes of the current General Fund Balance are not anticipated to be replicated in future years. Page 614 of 673 Item 11.b. City Council Discussion and Consideration of Approval of the Fiscal Year (FY) 2022-23 Mid- Cycle Budget Update Report, the 5-Year Capital Improvement Program Budget, and the Updated Citywide Combined Salary Schedule, Including the Salary Range for a Management Analyst June 14, 2022 Page 14 There are many options available for spending excess general fund reserves. However, because the excess reserves are one-time funds and do not represent an ongoing funding source, it is recommended that they be allocated to one-time items rather than to fund ongoing costs, such as new positions or programs. Spending options include an additional UAL payment to CalPERS, an Employee Retention Incentive, and infrastructure projects, such as pavement maintenance, sidewalk improvements or other capital improvement projects. Decisions regarding projects funded using excess reserves should also consider staff resource constraints. Infrastructure Projects Infrastructure projects include pavement maintenance, sidewalk improvements or other capital improvement projects that are not currently funded in the proposed 5-Year CIP. Infrastructure needs were discussed on April 26, 2022 during the Discussion of Infrastructure Financing Options (Attachment 8). The 5-Year CIP Budget includes $4,786,548 in the FY 2022-23 Budget for the Pavement Management Program (PMP). To maintain the City’s current Pavement Condition Index (PCI) of 56, which borders on the Poor Condition, approximately $6.25 million needs to be spent annually. The City’s pavement management consultant, PEI Consultants, Inc., has indicated that larger pavement projects have the potential to attract larger contractors who have their own asphalt plants that can often lead to a lower cost per square foot than smaller projects that often attract small firms that are reliant on others for their asphalt supply. Additional allocations of funding from General Fund Reserves to the PMP may result in greater efficiencies for the FY 2022-23 project. The 5-Year CIP Budget includes $240,000 in the FY 2022-23 Budget for Sidewalk Improvements. Current sidewalk repair costs are estimated at $15/square foot. Additional funding for the sidewalk repair program would increase the number of sidewalk panels that could be repaired in the City and may enable the City to install new sidewalks to close existing gaps in one or two locations. The City has a number of CIP projects that are not currently funded at this time. For example, the City proposes to complete studies on the Short Street Plaza Project and Recreation Services/Mark M. Millis Community Center Building projects. While funding has been included in the 5-Year CIP for these studies, both projects will require significant investments for construction and current funding sources are unknown. If Council wishes to retain excess General Fund Balance for these CIP projects that are not currently funded, the funding will remain in fund balance and included in the next 5-Year Capital Improvement Program Budget in Spring 2023. Page 615 of 673 Item 11.b. City Council Discussion and Consideration of Approval of the Fiscal Year (FY) 2022-23 Mid- Cycle Budget Update Report, the 5-Year Capital Improvement Program Budget, and the Updated Citywide Combined Salary Schedule, Including the Salary Range for a Management Analyst June 14, 2022 Page 15 Reducing the City’s CalPERS Unfunded Accrued Liability (UAL) Because past earnings have not matched assumptions used by CalPERS to determine the amount of funding needed to cover pension obligations for member agencies, most CalPERS pension plans have liabilities that exceed the market value of assets in the plan, creating an Unfunded Actuarial Liability (UAL). The chart below shows historical rates of return on CalPERS investments over the last twenty years, indicating tremendous volatility over those years. During the time period of the above chart, the expected rate of return has ranged from a high of 8.25% to the current expectation of 6.8%. In any year that the rate of return falls below these earnings expectations, the UAL will likely increase. This factor has been the primary driver of the increasing UAL over the years. Additionally, other factors, such as changes to mortality assumptions and shorter amortization of gains and losses, have also increased the UAL. The City has a projected UAL of $17.9 million as of June 30, 2021. This total includes amounts from all six City pension plans, though primarily from the Tier 1 Plans, as follows: Page 616 of 673 Item 11.b. City Council Discussion and Consideration of Approval of the Fiscal Year (FY) 2022-23 Mid- Cycle Budget Update Report, the 5-Year Capital Improvement Program Budget, and the Updated Citywide Combined Salary Schedule, Including the Salary Range for a Management Analyst June 14, 2022 Page 16 In an effort to reduce the City’s CalPERS UAL, the City Council decided during the FY 2018- 2020 Biennial Budget hearings to make two prepayments on the UAL. The first prepayment of $3 million was made in July 2018 and a second prepayment of $2 million was made in July 2019. The future realized savings from these investments will be approximately $423,000 annually on average for the next 29 years. This represents a rate of return on investment from the $5 million paid to CalPERS of 7.1%. The City Council may choose to allocate some or all of the $2.15 million of excess General Fund Balance to pay down the UAL further in FY 2022-23. A payment of $2.15 million to CalPERS would be anticipated to provide $170,000 in savings annually beginning in FY 2024-25. Employee Retention Incentive Program Council’s adopted Goals and Priorities for FY 2022-23 were grouped under three main categories: Investing in the Future, Investing in the City’s Infrastructure and Facilities, and Investing in People. An Employee Retention Incentive Program could be approved that would fall under the category of Investing in People. Salaries and benefits costs in the FY 2022-23 Mid-Cycle Budget Update reflect contractually obligated increases (current bargaining group contracts, which expire June 30, 2024). With rising inflation and cost of living increases, the retention of current employees during the completion of a salary survey continues to be a concern. Excess General Fund Balance may be used to support a program that may provide one- time retention incentive pay to staff in two equal payments to incentivize retention. Full- time employees who worked from January 1, 2022, to June 30, 2022, could be provided the first half of the one-time incentive and the second half could be provided to those who have worked from July 1, 2022, to December 31, 2022. Employees who worked less than full-time would receive payment on a prorated amount. An alternative could provide the same payment over a 12-month time frame, for example the first payment would remain in July 2022 and the second payment would be in July 2023. These amounts would not Page 617 of 673 Item 11.b. City Council Discussion and Consideration of Approval of the Fiscal Year (FY) 2022-23 Mid- Cycle Budget Update Report, the 5-Year Capital Improvement Program Budget, and the Updated Citywide Combined Salary Schedule, Including the Salary Range for a Management Analyst June 14, 2022 Page 17 be retirement reportable and would not be included in the regular rate of pay for overtime purposes. The City of Arroyo Grande currently has 70 Full time employees and approximately 7 FTE part time employees. Additionally, FCFA staff are City employees but are paid through FCFA. If the City Council would like to consider this program for FCFA employees, FCFA currently has 25 Full time employees and approximately 1 FTE part time employees. The following table provides the cost comparison of a one-time incentive (paid over two installments to continue to incentivize retention) of $5,000, $7,500, and $10,000: OTHER BUDGET ISSUES: Enterprise Fund Though the focus of this report has been on the City’s General Fund, it is important to point out that the City’s two enterprise fund programs, Water and Sewer, are proposed to be updated to reflect the rate adjustment approved by the City Council on March 8, 2022, based on the Water and Wastewater Rate Study. The table below details a consolidated look at these enterprise funds. Costs $5,000 Retention Incentive Pay $7,500 Retention Incentive Pay $10,000 Retention Incentive Pay City 385,000 577,500 770,000 FCFA 130,000 195,000 260,000 515,000 772,500 1,030,000 Page 618 of 673 Item 11.b. City Council Discussion and Consideration of Approval of the Fiscal Year (FY) 2022-23 Mid- Cycle Budget Update Report, the 5-Year Capital Improvement Program Budget, and the Updated Citywide Combined Salary Schedule, Including the Salary Range for a Management Analyst June 14, 2022 Page 18 Special Revenue Funds Special Revenue Funds are a governmental fund type used to account for specific revenues that are legally restricted to expenditures for particular purposes. The Mid-Cycle Budget Update for FY 2022-23 proposes changes to 8 of the 24 Special Revenue Funds. Only the Special Revenue Funds with changes will be highlighted in this section. Fund 214 Park Improvement The Fund 214 Park Improvement Fund includes impact fees collected from developers for park improvements and are to be used to maintain the adopted level of service for neighborhood and community parks of 4.0 acres per thousand population. The anticipated revenues decreased by $20,000 compared to the current budget. The expenditure budget also decreased by $66,000 due to the Ash Street Restroom Roof replacement being reprogrammed to be completed in FY 2023-24. The anticipated fund balance at the end of FY 2022-23 is $155,096 as shown in the table below: 2020-21 ADOPTED AMENDED ESTIMATED CURRENT PROPOSED ACTUAL BUDGET BUDGET ACTUAL BUDGET BUDGET Beginning Working Capital 8,480,795$ 8,039,345$ 8,039,345$ 8,039,345$ 5,421,118$ 5,421,118$ -$ Revenues: Revenues 7,979,505 7,936,488 7,995,530 7,881,445 7,936,488 9,057,997 1,121,509 Transfers In 3,460,975 3,740,113 5,357,463 5,310,500 4,085,066 4,245,605 160,539 Total Revenues 11,440,480 11,676,601 13,352,993 13,191,944 12,021,554 13,303,602 1,282,048 Expenses: Salaries and Benefits 921,206 1,040,100 1,049,300 1,054,300 1,017,800 1,077,900 60,100 Services and Supplies 4,129,427 4,662,103 4,700,503 4,656,540 4,761,296 4,804,835 43,539 Debt Service 1,305 22,000 22,000 22,000 - - - Capital Outlay 1,023,255 71,000 71,000 71,000 3,700 3,700 - Capital Improvement Program 42,937 609,180 2,913,467 3,572,362 1,430,662 1,591,450 160,788 Transfers Out 5,763,799 6,424,993 6,480,933 6,433,970 6,857,766 6,870,805 13,039 Total Expenditures 11,881,930 12,829,376 15,237,203 15,810,171 14,071,224 14,348,690 277,466 Revenues over/(under) Expenses (441,450) (1,152,775) (1,884,210) (2,618,227) (2,049,670) (1,045,088) 1,004,582 Ending Working Capital 8,039,345$ 6,886,570$ 6,155,135$ 5,421,118$ 3,371,448$ 4,376,030$ 1,004,582$ Increase/ (Decrease) 2021-22 2022-23 Page 619 of 673 Item 11.b. City Council Discussion and Consideration of Approval of the Fiscal Year (FY) 2022-23 Mid- Cycle Budget Update Report, the 5-Year Capital Improvement Program Budget, and the Updated Citywide Combined Salary Schedule, Including the Salary Range for a Management Analyst June 14, 2022 Page 19 Fund 218 Local Sales Tax Fund Fund 218 Local Sales Tax Fund accounts for the revenues derived from Measure O -06, a local 0.5% sales tax approved by the City's voters in November 2006. 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 5-Year Local Sales Tax Fund Expenditures Program was discussed on April 26, 2022 (Attachment 8). The anticipated revenues increased by $259,500 and the expenditure budget increased by $3,094,956 compared to the current budget. The anticipated fund balance at the end of FY 2022-23 is $1.3 million as shown in the table below: 2020-21 ADOPTED AMENDED ESTIMATED CURRENT PROPOSED ITEM ACTUAL BUDGET BUDGET ACTUAL BUDGET BUDGET Beginning Fund Balance 331,858$ 308,247$ 308,247$ 308,247$ 164,196$ 164,196$ - Revenues: Revenues 24,311 70,900 70,900 25,900 70,900 50,900 (20,000) Transfers In - - - - - - - Total Revenues 24,311 70,900 70,900 25,900 70,900 50,900 (20,000) Expenditures: Salaries and Benefits - - - - - - - Services and Supplies - - - - - - - Capital Outlay - - - - - - - Transfers Out 47,921 116,000 169,951 169,951 126,000 60,000 (66,000) Total Expenditures 47,921 116,000 169,951 169,951 126,000 60,000 (66,000) Change in Fund Balance (23,611) (45,100) (99,051) (144,051) (55,100) (9,100) 46,000 Ending Fund Balance 308,247$ 263,147$ 209,196$ 164,196$ 109,096$ 155,096$ 46,000 Increase/ (Decrease) 2021-22 2022-23 2020-21 ADOPTED AMENDED ESTIMATED CURRENT PROPOSED ITEM ACTUAL BUDGET BUDGET ACTUAL BUDGET BUDGET Beginning Fund Balance 3,823,112$ 4,820,703$ 4,820,703$ 4,820,703$ 4,462,466$ 4,462,466$ - Revenues: Revenues 2,696,852 2,489,500 2,489,500 2,737,790 2,586,500 2,846,000 259,500 Transfers In - - - - - - - Total Revenues 2,696,852 2,489,500 2,489,500 2,737,790 2,586,500 2,846,000 259,500 Expenditures: Salaries and Benefits - - - - - - - Services and Supplies 633,440 561,394 561,394 615,219 585,394 645,394 60,000 Capital Outlay - - - - - - - Transfers Out 1,065,821 1,394,130 3,629,376 2,480,808 2,304,331 5,339,287 3,034,956 Total Expenditures 1,699,261 1,955,524 4,190,770 3,096,027 2,889,725 5,984,681 3,094,956 Change in Fund Balance 997,591 533,976 (1,701,270) (358,237) (303,225) (3,138,681) (2,835,456) Ending Fund Balance 4,820,703$ 5,354,679$ 3,119,433$ 4,462,466$ 4,159,241$ 1,323,785$ (2,835,456) 2021-22 2022-23 Increase/ (Decrease) Page 620 of 673 Item 11.b. City Council Discussion and Consideration of Approval of the Fiscal Year (FY) 2022-23 Mid- Cycle Budget Update Report, the 5-Year Capital Improvement Program Budget, and the Updated Citywide Combined Salary Schedule, Including the Salary Range for a Management Analyst June 14, 2022 Page 20 Fund 220 Streets Fund 220 Streets accounts for receipts and expenditures of money apportioned by the State under Streets and Highway Code. The use of gas tax revenues can only be used to construct and maintain streets, roads and highways. The anticipated revenues increased by $91,714 compared to the current budget due to more consumers driving and the increase in gas costs. The expenditure budget also increased by $10,601 related to increased employee costs. The anticipated fund balance at the end of FY 2022-23 is $79,698 as shown in the table below: Fund 224 Transportation Facility Impact Fund 224 Transportation Facility Impact accounts for developer impact fees paid to protect the public health, safety, and welfare by maintaining the existing level of public transportation facility services for existing and future residents within the City of Arroyo Grande. The anticipated revenues are unchanged compared to the current budget , however, the expenditure budget decreased by $241,219 related to a change in the Brisco Road/US 101 Interchange funding in FY 2022-23. The anticipated fund balance at the end of FY 2022-23 is $1.4 million as shown in the table below: 2020-21 ADOPTED AMENDED ESTIMATED CURRENT PROPOSED ITEM ACTUAL BUDGET BUDGET ACTUAL BUDGET BUDGET Beginning Fund Balance 90,322$ 90,339$ 90,339$ 90,339$ 0$ 0$ - Revenues: Revenues 551,990 783,678 783,678 802,131 799,352 891,066 91,714 Transfers In 463,890 491,000 491,000 536,806 576,000 576,000 - Total Revenues 1,015,881 1,274,678 1,274,678 1,338,937 1,375,352 1,467,066 91,714 Expenditures: Salaries and Benefits 484,278 495,200 499,700 499,700 483,700 523,100 39,400 Services and Supplies 254,959 294,500 294,500 294,500 436,900 447,168 10,268 Debt Service 40,899 53,704 53,704 53,704 - - - Capital Outlay - - - - - - - Transfers Out 235,728 453,072 613,944 581,372 456,167 417,100 (39,067) Total Expenditures 1,015,863 1,296,476 1,461,848 1,429,276 1,376,767 1,387,368 10,601 Change in Fund Balance 17 (21,798) (187,170) (90,339) (1,416) 79,698 81,114 Ending Fund Balance 90,339$ 68,541$ (96,831)$ 0$ (1,416)$ 79,698$ 81,114 Increase/ (Decrease) 2021-22 2022-23 Page 621 of 673 Item 11.b. City Council Discussion and Consideration of Approval of the Fiscal Year (FY) 2022-23 Mid- Cycle Budget Update Report, the 5-Year Capital Improvement Program Budget, and the Updated Citywide Combined Salary Schedule, Including the Salary Range for a Management Analyst June 14, 2022 Page 21 Fund 225 Transportation Fund 225 Transportation revenue is provided by the San Luis Obispo County of Government’s (SLOCOG) Local Transportation Fund (LTF). The annual appropriation is restricted to transportation systems, including transit, pedestrian, street and road maintenance. The anticipated revenues increased by $150,000 compared to the current budget, reflecting more consumers driving and the increase in gas costs. The expenditure budget remains unchanged. The anticipated fund balance at the end of FY 2022 -23 is $1.2 million as shown in the table below: Fund 240 Tourism Business Improvement District (TBID) Fund 240 TBID provides projects, programs and activities that benefit lodging businesses located and operating within the City of Arroyo Grande. A two percent (2%) assessment 2020-21 ADOPTED AMENDED ESTIMATED CURRENT PROPOSED ITEM ACTUAL BUDGET BUDGET ACTUAL BUDGET BUDGET Beginning Fund Balance 2,446,874$ 2,601,057$ 2,601,057$ 2,601,057$ 1,848,589$ 1,848,589$ - Revenues: Revenues 156,715 150,000 150,000 35,000 150,000 150,000 - Transfers In - - - - - - - Total Revenues 156,715 150,000 150,000 35,000 150,000 150,000 - Expenditures: Salaries and Benefits - - - - - - - Debt Service - - Capital Outlay - - - - - - - Transfers Out 2,532 107,124 787,468 787,468 831,219 590,000 (241,219) Total Expenditures 2,532 107,124 787,468 787,468 831,219 590,000 (241,219) Change in Fund Balance 154,183 42,876 (637,468) (752,468) (681,219) (440,000) 241,219 Ending Fund Balance 2,601,057$ 2,643,933$ 1,963,589$ 1,848,589$ 1,167,370$ 1,408,589$ 241,219 Increase/ (Decrease) 2021-22 2022-23 2020-21 ADOPTED AMENDED ESTIMATED CURRENT PROPOSED ITEM ACTUAL BUDGET BUDGET ACTUAL BUDGET BUDGET Beginning Fund Balance 321,241$ 540,130$ 540,130$ 540,130$ 965,130$ 965,130$ - Revenues: Revenues 461,948 364,000 364,000 673,000 364,000 514,000 150,000 Transfers In - - - - - - - Total Revenues 461,948 364,000 364,000 673,000 364,000 514,000 150,000 Expenditures: Salaries and Benefits - - - - - - - Services and Supplies 2,363 15,000 15,000 15,000 15,000 15,000 - Debt Service - - Capital Outlay - - - - - - - Transfers Out 240,696 233,000 233,000 233,000 233,000 233,000 - Total Expenditures 243,059 248,000 248,000 248,000 248,000 248,000 - Change in Fund Balance 218,889 116,000 116,000 425,000 116,000 266,000 150,000 Ending Fund Balance 540,130$ 656,130$ 656,130$ 965,130$ 1,081,130$ 1,231,130$ 150,000 Increase/ (Decrease) 2021-22 2022-23 Page 622 of 673 Item 11.b. City Council Discussion and Consideration of Approval of the Fiscal Year (FY) 2022-23 Mid- Cycle Budget Update Report, the 5-Year Capital Improvement Program Budget, and the Updated Citywide Combined Salary Schedule, Including the Salary Range for a Management Analyst June 14, 2022 Page 22 is levied on all lodging businesses of the rent charged by the operator per occupied room per night for all transient occupancies. Revenue collected is used to promote the lodging industry within the City. The anticipated revenues increased by $97,100 compared to the current budget. The expenditure budget is proposed to increase by $63,500 compared to the current budget. The TBID budget has been included in the consent agenda as item 8.g. The anticipated fund balance at the end of FY 2022 -23 is $276,825 as shown in the table below: Fund 241 Water Availability Fund Fund 241 Water Availability Fund represents funding received from a charge that was enacted pursuant to the provision of Section 38743 of the Government Code, and Section 13.04.040 of the City Municipal Code. Water availability charges are imposed upon each parcel of property not served with city water and are restricted for the purpose of expanding water supply such as desalination plant, recycled water, scalping plant, etc. The anticipated revenues are unchanged compared to the current budget, however, the expenditure budget is proposed to decrease by $576,050 in order to spend the remainder of the fund balance towards Central Coast Blue (CCB) pre-construction costs. All transfers out shown from FY 2020-21 through FY 2022-23 are related to CCB pre- construction costs. The anticipated fund balance at the end of FY 2022-23 is $0 as shown in the table below: 2020-21 ADOPTED AMENDED ESTIMATED CURRENT PROPOSED ITEM ACTUAL BUDGET BUDGET ACTUAL BUDGET BUDGET Beginning Fund Balance 308,374$ 328,349$ 328,349$ 328,349$ 325,075$ 325,075$ - Revenues: Revenues 205,466 136,750 136,750 246,200 147,650 244,750 97,100 Transfers In - - - - - - - Total Revenues 205,466 136,750 136,750 246,200 147,650 244,750 97,100 Salaries and Benefits - - - - - - - Services and Supplies 185,491 221,500 221,500 241,474 221,500 285,000 63,500 Debt Service - - - - - - - Capital Outlay - - - - - - - Transfers Out - 8,000 8,000 8,000 8,000 8,000 - Total Expenditures 185,491 229,500 229,500 249,474 229,500 293,000 63,500 Change in Fund Balance 19,975 (92,750) (92,750) (3,274) (81,850) (48,250) 33,600 Ending Fund Balance 328,349$ 235,599$ 235,599$ 325,075$ 243,225$ 276,825$ 33,600 Increase/ (Decrease) 2021-22 2022-23 Page 623 of 673 Item 11.b. City Council Discussion and Consideration of Approval of the Fiscal Year (FY) 2022-23 Mid- Cycle Budget Update Report, the 5-Year Capital Improvement Program Budget, and the Updated Citywide Combined Salary Schedule, Including the Salary Range for a Management Analyst June 14, 2022 Page 23 Summary The proposed Mid-Cycle Update for FY 2022-23 Budget recommends approximately $47.8 million in expenditures, including operating costs such as salaries, benefits, services, supplies, maintenance, debt service, and capital related items as shown in the consolidated fund summary table shown below: 2020-21 ADOPTED AMENDED ESTIMATED CURRENT PROPOSED ITEM ACTUAL BUDGET BUDGET ACTUAL BUDGET BUDGET Beginning Fund Balance 1,555,872$ 1,601,902$ 1,601,902$ 1,601,902$ 45,950$ 45,950$ - Revenues: Revenues 51,088 78,000 78,000 18,000 78,000 78,000 - Transfers In - - - - - - - Total Revenues 51,088 78,000 78,000 18,000 78,000 78,000 - Expenditures: Services and Supplies - - - - - - - Debt Service - - Capital Outlay - - - - - - - Transfers Out 5,059 20,100 787,812 1,573,952 700,000 123,950 (576,050) Total Expenditures 5,059 20,100 787,812 1,573,952 700,000 123,950 (576,050) Change in Fund Balance 46,029 57,900 (709,812) (1,555,952) (622,000) (45,950) 576,050 Ending Fund Balance 1,601,902$ 1,659,802$ 892,090$ 45,950$ (576,050)$ (0)$ 576,050 Increase/ (Decrease) 2021-22 2022-23 Beginning Fund Balance 7,999,075$ 5,421,118$ 14,626,396$ (747,612)$ 27,298,976$ Revenues: Revenues 17,888,444 9,057,997 7,479,237 421,444 34,847,122 Transfers In 3,012,700 4,245,605 576,000 - 7,834,305 Total Revenues 20,901,144 13,303,602 8,055,237 421,444 42,681,427 Expenditures: Salaries and Benefits 12,774,135 1,077,900 523,100 - 14,375,135 Services and Supplies 7,199,231 4,804,835 1,596,897 7,800 13,608,763 Debt Service 286,261 - - 382,944 669,205 Capital Outlay 453,865 3,700 - - 457,565 Transfers Out 1,215,785 8,462,255 8,556,107 35,900 18,270,047 Total Expenditures 21,929,277 14,348,690 10,676,104 426,644 47,380,715 Total Operating Incr/(Decr)(1,028,133) (1,045,088) (2,620,868) (5,200) (4,699,289) Available Fund Balance 6,970,942$ 4,376,030$ 12,005,529$ (752,812)$ 22,599,688$ Enterprise Funds Agency Funds Total Special Revenue Funds General Fund Page 624 of 673 Item 11.b. City Council Discussion and Consideration of Approval of the Fiscal Year (FY) 2022-23 Mid- Cycle Budget Update Report, the 5-Year Capital Improvement Program Budget, and the Updated Citywide Combined Salary Schedule, Including the Salary Range for a Management Analyst June 14, 2022 Page 24 The 5-Year CIP presented to Council on May 24, 2022, is ready for approval along with the updated FY 2022 operating budget. Direction is being sought on potential appropriation of up to $2,150,000 in excess General Fund Reserves at the discretion of Council. Finally, updates to the Citywide Combined Salary Schedule are proposed for adoption to implement previously approved cost of living adjustments, and a salary range for a new Management Analyst position. ALTERNATIVES: The following alternatives are provided for the Council’s consideration: 1. Discuss, consider and adopt a Resolution approving the FY 2022 -23 Mid-Cycle Budget Update, a Resolution approving the 5-Year Capital Improvement Program Budget, and a Resolution approving the Updated Citywide Combined Salary Schedule and establishing a salary range for a Management Analyst position; and discuss, consider, and direct the appropriation of up to $2,150,000 of the Reserve Fund Balance for uses identified by Council; 2. Discuss, consider and modify the Resolution approving the FY 2022-23 Mid-Cycle Budget Update, the Resolution approving the 5-Year Capital Improvement Program Budget, and/or the Resolution approving the Updated Citywide Combined Salary Schedule and establishing a salary range for a Management Analyst position; and discuss, consider, and direct the appropriation of up to $2,150,000 of the Reserve Fund Balance for uses identified by Council; 3. Do not appropriate Reserve Fund Balance at this time or direct staff to return with further analyses of potential uses; or 4. Provide other direction to staff. ADVANTAGES: The recommendations in the Mid-Cycle Budget Update for FY 2022-23 and described in the staff report concerning potential spending options for excess General Fund Balance include spending strategies that will support Council’s adop ted FY 2022-23 Goals of Investing in the Future, Investing in City Infrastructure and Facilities, and Investing in People and will accomplish the following:  Maintain a substantial investment in improvements to the City’s infrastructure and facilities through the CIP Budget;  Maintain reserves at or above the City’s policy levels; and  Supports employee retention The Mid-Cycle Budget Report provides an updated review of the City’s finances in the current fiscal year, allocates additional funding to meet previously unanticipated needs, and maintains key service levels. Page 625 of 673 Item 11.b. City Council Discussion and Consideration of Approval of the Fiscal Year (FY) 2022-23 Mid- Cycle Budget Update Report, the 5-Year Capital Improvement Program Budget, and the Updated Citywide Combined Salary Schedule, Including the Salary Range for a Management Analyst June 14, 2022 Page 25 DISADVANTAGES: The recommendations do not fully address the long-term replacement needs of all City equipment and infrastructure, including the City’s streets, sidewalks, and stormwater facilities. Limited staffing levels continue to be a challenge for accomplishing all desired City priorities in a timely manner. Significant cost increases related to pensions and insurance are still threats that will require close monitoring. The performa nce of the economy in general, and the impacts of specific economic development activities , will also affect the financial condition and sustainability of City operations. 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. Mid-Cycle Budget Report 2. 5-Year Capital Improvement Program Budget 3. Proposed Resolution Approving the FY 2022-23 Mid-Cycle Budget Update 4. Proposed Resolution Approving the 5-Year Capital Improvement Program Budget 5. Proposed Resolution Establishing a Salary Range for Management Analyst and approving the Updated Citywide Combined Salary Schedule 6. June 8, 2021 Staff Report and Attachments 7. May 10, 2022 Staff Report and Attachments 8. April 26, 2022 Staff Report and Attachments 9. May 24, 2022 Staff Report and Attachments Page 626 of 673 City of Arroyo Grande FISCAL YEAR 2022-23 MID-CYCLE BUDGET REPORT ATTACHMENT 1 Page 627 of 673 FUND SUMMARIES CONSOLIDATED SUMMARY – ALL FUNDS 2022-23 BUDGET Beginning Fund Balance 7,999,075$ 5,421,118$ 14,626,396$ (747,612)$ 27,298,976$ Revenues: Revenues 17,888,444 9,057,997 7,479,237 421,444 34,847,122 Transfers In 3,012,700 4,245,605 576,000 - 7,834,305 Total Revenues 20,901,144 13,303,602 8,055,237 421,444 42,681,427 Expenditures: Salaries and Benefits 12,774,135 1,077,900 523,100 - 14,375,135 Services and Supplies 7,199,231 4,804,835 1,596,897 7,800 13,608,763 Debt Service 286,261 - - 382,944 669,205 Capital Outlay 453,865 3,700 - - 457,565 Transfers Out 1,215,785 8,462,255 8,556,107 35,900 18,270,047 Total Expenditures 21,929,277 14,348,690 10,676,104 426,644 47,380,715 Total Operating Incr/(Decr)(1,028,133) (1,045,088) (2,620,868) (5,200) (4,699,289) Available Fund Balance 6,970,942$ 4,376,030$ 12,005,529$ (752,812)$ 22,599,688$ Enterprise Funds Agency Funds Total Special Revenue Funds General Fund Page 628 of 673 FUND SUMMARIES FUND: 010 GENERAL FUND 2020-21 ADOPTED AMENDED ESTIMATED CURRENT PROPOSED ITEM ACTUAL BUDGET BUDGET ACTUAL BUDGET BUDGET Beginning Fund Balance 5,929,820$ 8,063,069$ 8,063,069$ 8,063,069$ 7,999,075$ 7,999,075$ - Revenues: Revenues 16,336,745 16,413,487 16,566,205 17,187,055 16,969,237 17,888,444 919,207 Transfers In 2,716,904 3,047,025 3,089,400 3,089,400 3,012,700 3,012,700 - Total Revenues 19,053,649 19,460,512 19,655,605 20,276,455 19,981,937 20,901,144 919,207 Expenditures: Salaries and Benefits 10,260,730 11,779,259 11,970,884 11,970,484 11,858,235 12,774,135 915,900 Services and Supplies 6,048,381 6,769,480 6,729,898 6,564,473 6,715,744 7,199,231 483,487 Debt Service 60,300 129,597 129,597 129,597 198,222 286,261 88,039 Capital Outlay 23,954 45,431 54,431 54,431 166,400 453,865 287,465 Transfers Out 527,035 465,570 2,344,343 1,621,464 413,000 1,215,785 802,785 Total Expenditures 16,920,399 19,189,337 21,229,153 20,340,449 19,351,601 21,929,277 2,577,676 - Total Operating Increases 2,133,249 271,175 (1,573,548) (63,994) 630,336 (1,028,133) (1,658,469) Available Fund Balance 8,063,069$ 8,334,244$ 6,489,521$ 7,999,075$ 8,629,411$ 6,970,942$ (1,658,469) Percent of Expenditures 47.7%43.4%30.6%39.3%44.6%31.8% This is the primary operating fund of the City, which accounts for resources and services traditionally associated with government. The General Fund provides administrative, financial, police protection, community development, public works, and recreation services to the community and other funds. The General Fund accounts for revenues that have unrestricted uses and are not required legally or by contractual agreement to be accounted for in another fund. 2021-22 Increase/ (Decrease) 2022-23 Page 629 of 673 FUND SUMMARIES GENERAL FUND REVENUES BY SOURCE Page 630 of 673 FUND SUMMARIES GENERAL FUND REVENUE DETAIL 2020-21 ADOPTED AMENDED ESTIMATED CURRENT PROPOSED ACCOUNT LINE ITEM ACTUAL BUDGET BUDGET ACTUAL BUDGET BUDGET TAXES 4001 Current Secured 5,495,819$ 5,329,531$ 5,329,531$ 5,573,369$ 5,436,122$ 5,736,124$ 4002 Current Unsecured 203,594 196,495 196,495 200,275 200,425$ 200,425$ 4003 Prior Secured (10,085) (18,000) (18,000) (23,772) (18,000) (18,000) 4004 Prior Unsecured 3,397 4,600 4,600 4,600 4,600 4,600 4005 Redemptions 321 300 300 300 300 300 4007 Property Tax in Lieu of VLF 1,822,740 1,895,649 1,895,649 1,901,447 1,933,600 1,933,600 4010 Transient Occupancy Tax 1,028,718 972,000 972,000 1,300,000 1,059,480 1,300,000 4011 Sales & Use Tax 4,294,007 4,316,503 4,316,503 4,463,464 4,486,323 4,553,023 4012 Sales Tax-Safety 155,190 170,639 170,639 170,639 177,352 177,352 4013 Property Transfer Tax 163,390 153,000 153,000 153,000 156,060 156,060 4030 Franchise Taxes 713,919 696,900 696,900 696,900 703,900 703,900 4050 Business License Tax 97,785 102,000 102,000 97,000 104,040 98,000 Total 13,968,795 13,819,617 13,819,617 14,537,222 14,244,202 14,845,384 LICENSES & PERMITS 4124 Fire Permits 12,400 16,300 16,300 16,300 16,600 16,600 4125 Police Permits 29,220 40,800 40,800 40,800 41,600 41,600 4126 Other Permits-Alcohol (10) - - - - - 4127 Other Permits-Tobacco Retailers 1,974 2,000 2,000 2,000 2,000 2,000 4128 Other Permits-Solicitation - 200 200 200 200 200 4141 Other Permits-Encroachment 64,734 87,200 87,200 87,200 88,900 88,900 4161 Sign Permits 7,604 4,100 4,100 4,100 4,200 4,200 4162 Use Permits 44,256 15,300 15,300 15,300 15,600 15,600 4164 Use Permits-Temporary 882 2,100 2,100 2,100 2,100 2,100 4181 Building Permits 152,462 315,000 315,000 160,000 321,300 170,000 4182 Plumbing Permits 4,984 4,400 4,400 4,400 4,500 4,500 4183 Electrical Permits 58,872 52,000 52,000 52,000 53,000 53,000 4185 Excav/Grade Permits 11,310 19,400 19,400 19,400 19,800 19,800 4187 Mechanical Permits 8,055 10,400 10,400 10,400 10,600 10,600 4188 Other Permits-Roof - - - - - - 4189 Other Permits-Demolition 730 2,000 2,000 2,000 2,000 2,000 Total 397,471 571,200 571,200 416,200 582,400 431,100 FINES 4201 Vehicle Code Fines 37,616 35,700 35,700 35,700 36,400 36,400 4202 Local Ordinance 379 2,000 2,000 2,000 2,000 2,000 4203 Parking 3,380 8,200 8,200 8,200 8,400 8,400 Total 41,375 45,900 45,900 45,900 46,800 46,800 USE OF MONEY AND PROPERTY 4301 Interest 12,718 40,000 40,000 40,000 40,000 40,000 4350 Rent 64,410 64,400 64,400 64,400 65,700 65,700 4351 Telecommunication Site Leases 361,161 350,900 350,900 350,900 357,900 357,900 4353 Rent-Commercial Buildings (1,144) 7,500 7,500 7,500 12,000 12,000 FISCAL YEAR 2021-22 FISCAL YEAR 2022-23 Page 631 of 673 FUND SUMMARIES 2020-21 ADOPTED AMENDED ESTIMATED CURRENT PROPOSED ACCOUNT LINE ITEM ACTUAL BUDGET BUDGET ACTUAL BUDGET BUDGET USE OF MONEY AND PROPERTY (continued) 4354 Park User Fees 10,876 40,000 40,000 90,000 60,000 60,000 4355 Building Supervision - - - - - - 4356 Le Point Charging Station 836 1,000 1,000 1,000 1,000 1,000 4375 Returned Check Fees 50 200 200 - 200 200 4376 Collection-Credit Bureau Total 448,907 504,000 504,000 553,800 536,800 536,800 AID FROM OTHER GOVERNMENTS 4411 Motor Vehicle License Fees 12,972 13,300 13,300 13,300 13,600 13,600 4413 Homeowners P.T.R.33,149 31,975 31,975 31,975 32,600 32,600 4424 ICAC Reimbursement - 5,100 5,100 5,100 5,200 5,200 4426 P.O.S.T. Reimbursement 7,061 10,200 10,200 10,200 10,400 10,400 4427 Mandated Cost Recovery 7,091 5,600 5,600 5,600 5,700 5,700 4451 Lucia Mar Reimbursement 35,125 70,000 70,000 70,000 71,400 78,750 4458 State Grant 1,012 - - - - - 4460 Department of Justice Grant 8,446 - 29,730 29,730 - - 4479 Office of Traffic Safety Grant - Police 16,911 - 61,488 61,488 - - 4499 Rev from other Govmt Agencies 110,000 150,000 190,000 190,000 150,000 150,000 Total 231,767 286,175 417,393 417,393 288,900 296,250 COMMUNITY DEVELOPMENT CHARGES FOR SERVICES 4501 Developer Application Fees 11,773 11,200 11,200 11,200 11,400 11,400 4502 Filing/Certificate Fees - 6,800 6,800 6,800 6,900 6,900 4504 File Fees-Appeals 491 1,000 1,000 1,000 1,000 1,000 4505 Plan Check Fees 263,710 428,400 428,400 265,000 437,000 270,000 4506 Lot Split/Subdivision 25,052 10,200 10,200 10,200 10,400 10,400 4507 Architect Review Fees 11,490 10,200 10,200 10,200 10,400 10,400 4509 Home Occupancy Permits 8,759 6,900 6,900 6,900 7,000 7,000 4510 Miscellaneous Plan Fees 31,008 28,600 28,600 28,600 29,200 29,200 4511 Pre-application Reviews 3,684 2,600 2,600 2,600 2,700 2,700 4512 Sign Reviews 343 2,600 2,600 2,600 2,700 2,700 4514 Minor Exceptions 1,744 2,000 2,000 2,000 2,000 2,000 4518 EIR Administrative Fee 24,141 - - - - - Total 382,195 510,500 510,500 347,100 520,700 353,700 RECREATION CHARGES FOR SERVICES 4602 Children in Motion 218,369 298,200 309,700 309,700 340,800 340,800 4603 Play/Learn Sessions 39,846 67,480 67,480 67,480 77,120 77,120 4604 Play/Learn-Summer 9,694 - - - - 126,000 4605 Special Interest Classes 238,047 103,155 103,155 275,000 119,025 215,000 4606 Sports Leagues 211 14,100 14,100 14,100 22,360 22,360 4607 Special Events 10,872 10,700 10,700 10,700 16,050 16,050 4608 Softball Leagues 8,108 18,960 18,960 18,960 25,280 25,280 4609 Recreation - Other Revenue 6,723 - - - - - 4613 Five Cities Youth Basketball - - - - - - 4614 Youth Wrestling Fund Raising - - - - - - 4615 Children in Motion - Classes - - - - - - 4655 Building Supervision 1,990 - - - - - Total 533,859 512,595 524,095 695,940 600,635 822,610 FISCAL YEAR 2021-22 FISCAL YEAR 2022-23 Page 632 of 673 FUND SUMMARIES 2020-21 ADOPTED AMENDED ESTIMATED CURRENT PROPOSED ACCOUNT LINE ITEM ACTUAL BUDGET BUDGET ACTUAL BUDGET BUDGET PUBLIC WORKS CHARGES FOR SERVICES 4701 Miscellaneous Engineering Fees - 2,900 2,900 2,900 3,000 3,000 4702 Engineering Map/Plan Check 5,970 8,200 8,200 8,200 8,400 8,400 4703 Engineering Inspection Fees 14,548 60,000 60,000 60,000 61,200 61,200 4704 Grading Fees - 2,000 2,000 2,000 2,000 2,000 4706 Stormwater Permit Fees 2,334 - - - - - Total 22,852 73,100 73,100 73,100 74,600 74,600 OTHER CHARGES FOR SERVICES 4728 Fingerprint Fees - 4731 Live Scan Fingerprinting 2,291 1,700 1,700 1,700 1,700 1,700 4753 Sanitation District Billing Services 22,370 17,000 17,000 17,000 - 17,000 4762 Sewer Facility Charge 3,468 6,500 6,500 6,500 6,600 6,600 4771 County TMD Assessment Admin Fee 3,040 1,500 1,500 1,500 1,500 1,500 4772 FCFA Admin/Support Services 29,037 33,200 33,200 33,200 33,900 33,900 Total 60,206 59,900 59,900 59,900 43,700 60,700 OTHER REVENUE 4801 Other Revenue 12,353 15,000 15,000 15,000 15,000 15,000 4802 Sales-Land - - - - - - 4803 Sales-Equipment/Materials - - - - - - 4804 Sales-Publications/Reports 261 500 500 500 500 500 4805 Insurance Refunds/Dividends - - - - - - 4807 Expense Recovery 432 8,000 8,000 8,000 8,000 8,000 4808 Expense Recovery-Police 9,089 7,000 7,000 7,000 7,000 387,000 4809 Donations 4816 Other Financing Sources 9,000 - - - - - 4817 Santa Cop Sponsorship - - 10,000 10,000 - 10,000 4818 Cash over(short)(200) - - - - - 4820 Coronavirus Relief Fund 218,384 - - - - - 4826 Capital Contributions - - - - - - 4880 Bond Proceeds - - - - - - Total 249,318 30,500 40,500 40,500 30,500 420,500 TRANSFERS IN 4901 Personnel Transfers 1,270,704 1,454,500 1,454,500 1,454,500 1,410,500 1,410,500 4902 Operating Transfers - - - - - - 4903 Cost Allocation 1,124,196 1,306,100 1,306,100 1,306,100 1,306,100 1,306,100 4907 Transfers In - CDBG Fund - - - - - - 4909 Transfers In - TBID Fund - 3,000 3,000 3,000 3,000 3,000 4920 Transfers In - Streets Fund - - - - - - 4930 Transfers In - Sewer Fund - - - - - - 4940 Transfers In - Water Fund - - - - - - 4950 Transfers In - Sales Tax Fund 292,008 253,425 253,425 253,425 263,100 263,100 4952 Transfers In - RDA Successor Fund 29,996 30,000 30,000 30,000 30,000 30,000 4965 Transfers In - American Rescue Plan Act (- - 42,375 42,375 - - Total 2,716,904 3,047,025 3,089,400 3,089,400 3,012,700 3,012,700 Grand Total 19,053,649$ 19,460,512$ 19,655,605$ 20,276,455$ 19,981,937$ 20,901,144$ FISCAL YEAR 2022-23FISCAL YEAR 2021-22 Page 633 of 673 FUND SUMMARIES GENERAL FUND EXPENDITURE 2022-23 General Fund Expenditures by Department Page 634 of 673 FUND SUMMARIES GENERAL FUND EXPENDITURE BY OBJECT 2020-21 ADOPTED AMENDED ESTIMATED CURRENT PROPOSED ACCOUNT LINE ITEM ACTUAL BUDGET BUDGET ACTUAL BUDGET BUDGET SALARIES/FRINGE BENEFITS 5101 Salaries-Full Time 4,509,426 5,981,300$ 6,069,400$ 6,069,400$ 6,100,700$ 6,580,000$ 5102 Salaries-Part Time 104,509 91,600 92,600 92,600 101,800 101,500 5103 Salaries-Temporary Part Time 398,758 586,000 594,500 594,500 597,800 580,000 5105 Salaries-Overtime 272,105 167,200 211,395 211,395 167,200 167,200 5107 Standby/Call Back Pay 12,136 12,400 12,400 12,400 12,400 12,400 5108 Holiday Pay 262,854 114,000 115,600 115,600 116,200 119,700 5109 Sick Leave Pay 119,048 - - - - - 5110 Annual Leave Buy Back 23,107 35,500 35,500 35,500 35,500 35,500 5111 Vacation Buy Back 22,795 18,500 48,230 48,230 18,500 18,500 5112 Sick Leave Buy Back 12,217 11,400 11,400 11,400 11,400 11,400 5113 Vacation Leave Pay 118,482 - - - - - 5114 Compensation Pay 56,230 - - - - - 5115 Annual Leave 121,464 - - - - - 5116 Field Training Premium 1,923 5,000 5,000 5,000 5,000 5,000 5121 PERS Retirement 651,724 841,600 853,600 853,400 858,000 898,600 5122 Social Security 437,981 469,100 474,900 474,800 477,200 511,200 5123 PARS-Retirement 7,831 10,600 10,900 10,800 11,000 10,800 5126 State Disability (SDI)13,023 14,200 14,400 14,400 14,400 16,700 5127 Deferred Compensation 15,777 16,500 16,500 16,500 16,500 17,100 5128 UAL (Unfunded Accrued Liability)1,235,669 1,571,900 1,571,900 1,571,900 1,337,800 1,904,700 5131 Health Insurance 974,562 1,107,300 1,107,300 1,107,300 1,133,500 1,219,700 5132 Dental Insurance 58,113 64,900 64,900 64,900 64,900 68,300 5133 Vision Insurance 14,866 18,700 18,700 18,700 18,700 19,700 5134 Life Insurance 7,360 8,800 8,800 8,800 8,800 9,200 5135 Long Term Disability Insurance 14,635 20,100 20,300 20,300 20,300 21,500 5136 Retirees Health Insurance 139,731 235,000 235,000 235,000 235,000 235,000 5141 Workers Compensation 542,855 554,324 554,324 554,324 571,700 626,300 5142 Unemployment Insurance 56,807 1,000 1,000 1,000 1,000 1,000 5143 Uniform Allowance 9,817 11,500 11,500 11,500 11,500 11,500 5144 Car Allowance 25,704 20,700 20,700 20,700 20,700 20,700 5146 Expense Allowance - - - - - - 5147 Employee Assistance Program 4,434 3,235 3,235 3,235 3,235 3,235 5148 Boot Allowance 1,673 2,200 2,200 2,200 2,200 2,200 5149 Motor Pay 2,582 2,000 2,000 2,000 2,000 2,000 5150 Bilingual Pay 3,611 3,600 3,600 3,600 3,600 3,600 5151 Cell Phone Allowance 15,648 18,700 18,700 18,700 18,700 19,900 5199 Salary Reimbursement (8,726) (239,600) (239,600) (239,600) (139,000) (480,000) Total 10,260,730$ 11,779,259$ 11,970,884$ 11,970,484$ 11,858,235$ 12,774,135$ 2021-22 2022-23 Page 635 of 673 FUND SUMMARIES 2020-21 ADOPTED AMENDED ESTIMATED CURRENT PROPOSED ACCOUNT LINE ITEM ACTUAL BUDGET BUDGET ACTUAL BUDGET BUDGET SERVICES & SUPPLIES 5201 Supplies - Office 19,796 35,800$ 35,800 35,800 35,800$ 35,800 5208 Postage/Mailing 14,647 15,200 15,200 15,200 15,200 15,200 5250 Supplies-Volunteer Program 387 1,600 1,600 1,600 1,600 1,600 5251 Supplies-Classes 1,812 9,000 9,000 9,000 9,000 9,000 5252 Supplies-Recreation Events 6,767 11,600 11,600 11,600 11,600 11,600 5253 Play/Learn Sessions 2,616 2,600 2,600 2,600 2,600 2,600 5254 Play/Learn-Summer 20 700 700 700 700 126,000 5255 Special Department Supplies 76,472 73,750 75,696 75,696 73,750 67,750 5257 Supplies-Leagues 700 27,600 27,600 27,600 27,600 27,600 5259 Children In Motion Supplies-Snacks 4,031 6,000 6,000 6,000 6,000 6,000 5261 Santa Cop - - 10,000 10,000 - 10,000 5272 Protective/Safety Clothing 34,019 43,500 43,500 43,500 43,500 43,500 5273 Small Tools 6,790 5,500 5,500 5,500 6,000 6,000 5274 Chemicals 1,071 3,300 3,300 3,300 3,300 3,300 5301 Advertising 10,601 12,100 12,100 12,100 12,100 12,100 5303 Contractual Services 1,396,067 1,857,831 1,875,406 1,647,831 1,872,878 2,198,678 5304 Professional Services 221,795 260,000 260,000 260,000 260,000 266,400 5306 Printing Services 655 600 600 600 600 600 5307 Disposal Fees - 2,000 2,000 2,000 2,000 2,000 5308 Street Trees 2,100 2,100 2,100 2,100 2,100 2,100 5313 Five Cities Fire Authority 2,052,061 2,052,061 2,052,061 2,052,061 2,052,061 2,052,061 5315 Pre-Employment Physicals 9,161 9,200 9,200 9,200 9,200 9,200 5316 Job Recruitment Expense 4,419 8,200 35,750 8,200 6,700 10,200 5319 Services-Miscellaneous 3,039 4,800 4,800 4,800 4,800 4,800 5321 Animal Control Services 59,593 74,455 74,455 74,455 75,944 88,500 5322 Canine Program - - - - - - 5324 Forensic Mandate Services 8,466 15,500 15,500 15,500 15,500 15,500 5327 Services-Litigation Non-Insurance 26,920 20,000 20,000 20,000 20,000 20,400 5328 Task Force Services 24,600 24,600 24,600 24,600 24,600 24,600 5329 Live Scan Fingerprinting Expense 2,569 8,000 8,000 8,000 8,000 8,000 5330 Cable Casting Expense 26,623 35,000 35,000 35,000 35,000 35,000 5351 Services-Classes 111,747 85,000 85,000 85,000 85,000 85,000 5352 Services-Leagues 1,815 10,000 10,000 10,000 10,000 10,000 5353 Services-Events 1,721 4,700 4,700 4,700 4,700 4,700 5354 Building Supervision - 100 100 100 100 100 5395 Community Services Grants 65,500 25,000 25,000 25,000 25,000 25,000 5396 Holiday Lights in the Village 8,000 - - - - - 5397 Business Assistance Grant 168,138 - 40,000 40,000 - - 5401 Utilities 225,210 285,800 285,800 285,800 285,800 285,800 5402 Power 210,708 240,000 240,000 240,000 240,000 240,000 5403 Telephone 39,394 44,400 44,400 44,400 44,400 44,400 5501 Travel/Conference/Training 42,758 99,700 103,557 103,557 96,500 121,500 5502 Tuition Reimbursement 7,394 5,300 5,300 5,300 5,300 5,300 5503 Memberships & Subscriptions 34,648 47,421 47,421 47,421 46,421 46,421 5504 Public Relations 12,151 23,600 23,600 58,300 23,600 23,600 5506 Elections 577 300 300 300 30,000 30,000 5508 Miscellaneous Expense 3,516 110,000 10,000 10,000 10,000 10,000 5551 Property Taxes 71 70 70 70 70 70 5552 Rent-Equipment 2,586 3,700 3,700 3,700 3,700 3,700 2022-232021-22 Page 636 of 673 FUND SUMMARIES 2020-21 ADOPTED AMENDED ESTIMATED CURRENT PROPOSED ACCOUNT LINE ITEM ACTUAL BUDGET BUDGET ACTUAL BUDGET BUDGET SERVICES & SUPPLIES (Continued) 5553 Rent-Buildings & Land 15,497 4,100 4,100 4,100 4,220 4,220 5555 Bank Charges 45,178 32,000 32,000 32,000 33,000 33,000 5556 Penalties & Interest - - - - - - 5576 Liability Insurance-JPA Share 650,560 653,220 653,220 653,220 660,000 621,631 5578 Liability Insurance-Underground Tanks 1,050 1,200 1,200 1,200 1,300 1,300 5579 Property Insurance 55,937 65,572 65,572 65,572 66,000 66,000 5580 Surety Bonds 1,335 1,600 1,600 1,600 1,600 1,600 5601 Maintenance-Vehicles 46,867 70,600 70,600 70,600 70,600 70,600 5602 Maintenance-Office Equipment 15,467 19,300 19,300 19,300 19,300 19,300 5603 Maintenance-Machinery & Equipment 9,220 17,300 17,300 17,300 17,300 17,300 5604 Maintenance-Buildings 32,782 29,900 29,900 29,900 29,900 33,900 5605 Maintenance-Grounds 50,451 56,500 56,500 56,500 56,500 59,400 5606 Maintenance-Radio Communications 12,655 22,500 22,500 22,500 22,500 22,500 5607 Maintenance-Automated Services 53,259 68,800 68,800 68,800 79,800 79,800 5608 Gas & Oil 59,257 76,400 33,400 88,400 76,400 88,400 5614 Maintenance - PD Remodel - - - - - - 5615 Janitorial Services 14,850 16,200 16,200 16,200 16,200 16,200 5701 Office Equipment and Furniture 4,605 2,200 4,690 4,690 2,200 2,200 5702 Data Processing Equipment 25,681 24,400 24,400 24,400 10,200 10,200 Total 6,048,381$ 6,769,480$ 6,729,898$ 6,564,473$ 6,715,744$ 7,199,231$ DEBT SERVICE 5801 Debt - Principal Payment 9,774 85,825$ 85,825 85,825 190,305$ 258,173 5802 Debt - Interest Payment 2,817 2,100 2,100 2,100 2,000 2,000 5803 Lease Purchase Payments 47,709 41,672 41,672 41,672 5,917 26,088 Total 60,300$ 129,597$ 129,597$ 129,597$ 198,222$ 286,261$ TRANSFERS 5904 Transfers out - CIP Fund 238,890 159,570$ 2,038,343 1,269,658 22,000$ 824,785 5902 Transfer out - Streets Fund 148,719 266,000 266,000 311,806 351,000 351,000 5906 Transfers out - USDA City Hall loan 39,996 40,000 40,000 40,000 40,000 40,000 5907 Transfers out - OPEB Fund 95,269 - - - - - 5909 Transfers out - TBID Fund - - - - - - 5973 Stormwater Resource Planning Grant 4,160 - - - - - Total 527,035$ 465,570$ 2,344,343$ 1,621,464$ 413,000$ 1,215,785$ CAPITAL OUTLAY 6001 Office Equipment & Furniture 162 -$ - - -$ - 6101 Data Processing Equipment - - - - - - 6103 Computer Licensing/Software - - - - - - 6201 Machinery & Equipment 23,793 45,431 54,431 54,431 105,400 145,565 6301 Vehicles - - - - 61,000 308,300 6401 Structures & Improvements - - - - - - Total 23,954$ 45,431$ 54,431$ 54,431$ 166,400$ 453,865$ Grand Total 16,920,399$ 19,189,337$ 21,229,153$ 20,340,449$ 19,351,601$ 21,929,277$ 2022-232021-22 Page 637 of 673 FUND SUMMARIES GENERAL FUND EXPENDITURE SUMMARY BY DEPARTMENT 2020-21 ADOPTED AMENDED ESTIMATED CURRENT PROPOSED DEPARTMENT ACTUAL BUDGET BUDGET ACTUAL BUDGET BUDGET City Administration 4001 City Council 360,282$ 106,600$ 146,600$ 146,600$ 117,000$ 115,800$ 4099 Retirees 234,507 235,000 235,000 235,000 235,000 235,000 4101 City Manager 226,682 308,500 311,600 311,400 313,300 465,100 xxxx Human Resources - 191,356 193,256 173,256 194,556 224,156 4003 City Attorney 250,625 283,200 283,200 283,200 283,200 290,000 Total City Administration 1,072,096 1,124,656 1,169,656 1,149,456 1,143,056 1,330,056 Legislative and Information Services 4002 City Clerk 343,983 410,375 414,275 414,275 442,575 471,275 4140 Information Technology - - - - - - 4102 Printing/Duplicating 13,865 25,600 25,600 25,600 25,600 25,600 Total Legislative & Information Services 357,848 435,975 439,875 439,875 468,175 496,875 Administrative Services 4120 Administrative Services 941,962 747,315 755,115 755,115 760,110 884,010 4140 Information Technology 522,201 615,557 636,332 618,757 629,497 730,297 4145 Non-Departmental 2,811,850 3,076,191 4,854,964 4,132,085 2,805,405 4,373,421 4145 FCFA (Fire Service)2,052,061 2,052,061 2,052,061 2,052,061 2,052,061 2,052,061 CalPERS UAL payment - - - - - - Total Administrative Services 6,328,074 6,491,124 8,298,472 7,558,018 6,247,073 8,039,789 Community Development 4130 Planning 448,892 943,700 951,600 761,600 947,000 887,600 4301 Engineering 584,412 696,900 703,600 703,600 708,200 749,300 4212 Building & Life Safety 419,689 461,600 462,700 462,700 463,700 462,700 Total Community Development 1,452,993 2,102,200 2,117,900 1,927,900 2,118,900 2,099,600 Police Department 4201 Police 973,662 1,130,024 1,144,324 1,144,324 1,253,797 1,622,592 4203 Patrol Services 3,311,646 3,692,300 3,689,300 3,744,300 3,759,000 3,648,700 4204 Police Support Services 785,763 1,119,200 1,130,000 1,130,000 1,137,500 1,094,100 4208 DOJ Tobacco Grant - - 29,730 29,730 - - 4209 OTS - Special Grant Programs 18,665 - 61,488 61,488 - - Total Police Department 5,089,736 5,941,524 6,054,842 6,109,842 6,150,297 6,365,392 Recreation Services 4421 Recreation Administration 355,924 441,200 446,200 480,900 449,300 443,100 4423 Pre-School Program 95,995 112,900 114,300 114,300 115,200 235,600 4424 Recreation-Special Programs 124,950 149,500 149,500 149,500 149,500 149,500 4425 Children In Motion 304,049 402,700 407,500 407,300 410,000 392,300 Total Recreation Services 880,918 1,106,300 1,117,500 1,152,000 1,124,000 1,220,500 FISCAL YEAR 2022-23FISCAL YEAR 2021-22 Page 638 of 673 FUND SUMMARIES 2020-21 ADOPTED AMENDED ESTIMATED CURRENT PROPOSED DEPARTMENT ACTUAL BUDGET BUDGET ACTUAL BUDGET BUDGET Public Works 4307 Public Works Administration 843,051 921,700 956,150 928,600 932,600 1,075,500 4420 Park Maintenance 391,722 462,631 466,431 466,431 508,200 640,065 4430 Soto Sports Complex Maintenance 191,402 230,900 233,100 233,100 234,700 241,000 4305 Automotive Shop 145,086 153,800 155,200 155,200 156,800 155,600 4213 Government Buildings 167,475 218,527 220,027 220,027 267,800 264,900 Total Public Works 1,738,735 1,987,558 2,030,908 2,003,358 2,100,100 2,377,065 Grand Total 16,920,399$ 19,189,337$ 21,229,153$ 20,340,449$ 19,351,601$ 21,929,277$ FISCAL YEAR 2021-22 FISCAL YEAR 2022-23 Page 639 of 673 FUND SUMMARIES ENTERPRISE FUNDS FUND: 612 SEWER 2020-21 ADOPTED AMENDED ESTIMATED CURRENT PROPOSED ACTUAL BUDGET BUDGET ACTUAL BUDGET BUDGET Beginning Working Capital 1,524,128$ 1,122,337$ 1,122,337$ 1,122,337$ 1,024,035$ 1,024,035$ - Revenues: Revenues 973,133 947,000 1,006,042 966,957 947,000 1,077,960 130,960 Transfers In - - 267,200 267,200 - - - Total Revenues 973,133 947,000 1,273,242 1,234,157 947,000 1,077,960 130,960 Expenses: Salaries and Benefits 183,733 245,000 247,200 252,200 239,800 244,700 4,900 Services and Supplies 118,488 168,045 176,125 179,125 172,040 176,040 4,000 Debt Service 519 8,500 8,500 8,500 - - - Operating Equipment 641,597 3,500 3,500 3,500 2,500 2,500 - Capital Improvement Program 22,483 243,140 438,579 385,394 260,412 228,828 (31,584) Transfers Out 408,104 488,740 503,740 503,740 542,700 542,700 - Total Expenditures 1,374,924 1,156,925 1,377,644 1,332,459 1,217,452 1,194,768 (22,684) Ending Available Working Capital 1,122,337$ 912,412$ 1,017,935$ 1,024,035$ 753,583$ 907,227$ 153,644 This fund is used to account for maintenance of sewer lines connecting City residents to the South San Luis Obispo County Sanitation District sewer treatment plant. Money is collected from utility bills paid by customers. Increase/ (Decrease) 2021-22 2022-23 2020-21 ADOPTED AMENDED ESTIMATED CURRENT PROPOSED ACTUAL BUDGET BUDGET ACTUAL BUDGET BUDGET Beginning Working Capital 292,917$ 324,066$ 324,066$ 324,066$ 341,066$ 341,066$ - Revenues: Revenues 31,150 42,000 42,000 17,000 42,000 42,000 - Transfers In - - - - - - - Total Revenues 31,150 42,000 42,000 17,000 42,000 42,000 - Expenses:- Salaries and Benefits - - - - - - - Services and Supplies - - - - - - - Debt Service - - - - - - - Capital Outlay - - - - - - - Capital Improvement Program - - - - - - - Transfers Out - - - - - - - Total Expenditures - - - - - - - Ending Available Working Capital 324,066$ 366,066$ 366,066$ 341,066$ 383,066$ 383,066$ - FUND: 634 SEWER FACILITY This fund is used to account for the accumulation of sewer facility revenues to be used in capital improvement projects in the City. Money is collected from development to offset the impacts new development has on the sewer collection system. Increase/ (Decrease) 2021-22 2022-23 Page 640 of 673 FUND SUMMARIES FUND: 640 WATER 2020-21 ADOPTED AMENDED ESTIMATED CURRENT PROPOSED ACTUAL BUDGET BUDGET ACTUAL BUDGET BUDGET Beginning Working Capital 3,989,576 3,867,001$ 3,867,001 3,867,001 1,315,076$ 1,315,076 - Revenues: Revenues 6,923,455 6,882,488 6,882,488 6,882,488 6,882,488 7,873,037 990,549 Transfers In 5,059 - 1,350,150 1,350,150 232,750 417,250 184,500 Total Revenues 6,928,514 6,882,488 8,232,638 8,232,638 7,115,238 8,290,287 1,175,049 Expenses: Salaries and Benefits 737,474 795,100 802,100 802,100 778,000 833,200 55,200 Services and Supplies 555,023 753,945 784,265 784,265 736,940 800,440 63,500 Debt Service 786 13,500 13,500 13,500 - - - Capital Outlay 381,658 67,500 67,500 67,500 1,200 1,200 - Capital Improvement Program 20,454 366,040 2,474,888 3,186,968 1,170,250 1,362,622 192,372 Transfers Out 5,355,695 5,936,253 5,977,193 5,930,230 6,082,316 6,058,355 (23,961) Total Expenditures 7,051,090 7,932,338 10,119,446 10,784,563 8,768,706 9,055,817 287,111 Ending Available Working Capital 3,867,001 2,817,150$ 1,980,192 1,315,076 (338,393)$ 549,546 887,938 This fund is used to account for the activities associated with the transmission and distribution of potable water by the City to its users. Money is collected from utility bills paid by customers. Increase/ (Decrease) 2021-22 2022-23 FUND: 641 LOPEZ 2020-21 ADOPTED AMENDED ESTIMATED CURRENT PROPOSED ACTUAL BUDGET BUDGET ACTUAL BUDGET BUDGET Beginning Working Capital 1,703,434$ 1,704,672$ 1,704,672$ 1,704,672$ 1,704,672$ 1,704,672$ - Revenues: Revenues 1,238 - - - - - - Transfers In 3,455,916 3,740,113 3,740,113 3,693,150 3,852,316 3,828,355 (23,961) Total Revenues 3,457,154 3,740,113 3,740,113 3,693,150 3,852,316 3,828,355 (23,961) Expenses: Salaries and Benefits - - - - - - - Services and Supplies 3,455,916 3,740,113 3,740,113 3,693,150 3,852,316 3,828,355 (23,961) Debt Service - - - - - - - Capital Outlay - - - - - - - Transfers Out - - - - - - - Total Expenditures 3,455,916 3,740,113 3,740,113 3,693,150 3,852,316 3,828,355 (23,961) Ending Available Working Capital 1,704,672$ 1,704,672$ 1,704,672$ 1,704,672$ 1,704,672$ 1,704,672$ - This fund is responsible for the purchase of water from Lopez Dam. The City has a 50.55% share of the water and expense generated by Zone 3 – County of San Luis Obispo’s Flood Control and Water Conservation District. Increase/ (Decrease) 2021-22 2022-23 Page 641 of 673 FUND SUMMARIES FUND: 642 WATER FACILITY 2020-21 ADOPTED AMENDED ESTIMATED CURRENT PROPOSED ACTUAL BUDGET BUDGET ACTUAL BUDGET BUDGET Beginning Working Capital 970,740 1,021,269$ 1,021,269$ 1,021,269$ 1,036,269$ 1,036,269$ - Revenues: Revenues 50,528 65,000 65,000 15,000 65,000 65,000 - Transfers In - - - - - - - Total Revenues 50,528 65,000 65,000 15,000 65,000 65,000 - Expenses: Salaries and Benefits - - - - - - - Services and Supplies - - - - - - - Capital Outlay - - - - - - - Transfers Out - - - - 232,750 269,750 37,000 Total Expenditures - - - - 232,750 269,750 37,000 Ending Available Working Capital 1,021,269$ 1,086,269$ 1,086,269$ 1,036,269$ 868,519$ 831,519$ (37,000) This fund is used to account for the accumulation of water facility revenues to be used in capital improvement projects in the City. Money is collected from development to offset the impacts new development has on the water distribution system. Increase/ (Decrease) 2021-22 2022-23 Page 642 of 673 FUND SUMMARIES SPECIAL REVENUE FUNDS 2020-21 ADOPTED AMENDED ESTIMATED CURRENT PROPOSED ITEM ACTUAL BUDGET BUDGET ACTUAL BUDGET BUDGET Beginning Fund Balance 342,791$ 341,819$ 341,819$ 341,819$ 359,019$ 359,019$ - Revenues: Revenues 22,219 51,000 51,000 17,200 51,000 51,000 - Transfers In - - - - - - - Total Revenues 22,219 51,000 51,000 17,200 51,000 51,000 - Expenditures: Salaries and Benefits - - - - - - - Services and Supplies - - - - - - - Capital Outlay - - - - - - - Transfers Out 23,190 - - - - - - Total Expenditures 23,190 - - - - - - Change in Fund Balance (971) 51,000 51,000 17,200 51,000 51,000 - Ending Fund Balance 341,819$ 392,819$ 392,819$ 359,019$ 410,019$ 410,019$ - This fund accounts for impact fees collected from developers for the expansion of the existing fire station in order to serve future development. Increase/ (Decrease) 2021-22 2022-23 FUND: 210 FIRE PROTECTION IMPACT FEES 2020-21 ADOPTED AMENDED ESTIMATED CURRENT PROPOSED ITEM ACTUAL BUDGET BUDGET ACTUAL BUDGET BUDGET Beginning Fund Balance 150,652$ 193,039$ 193,039$ 193,039$ 194,889$ 194,889$ - Revenues: Revenues 42,387 40,200 40,200 40,600 40,200 40,200 - Transfers In - - - - - - - Total Revenues 42,387 40,200 40,200 40,600 40,200 40,200 - Expenditures: Salaries and Benefits - - - - - - - Services and Supplies - 17,050 38,750 38,750 16,800 16,800 - Capital Outlay - - - - - - - Transfers Out - - - - - - - Total Expenditures - 17,050 38,750 38,750 16,800 16,800 - Change in Fund Balance 42,387 23,150 1,450 1,850 23,400 23,400 - Ending Fund Balance 193,039$ 216,189$ 194,489$ 194,889$ 218,289$ 218,289$ - This fund accounts for fees collected from Charter Communications that are restricted for support of public, education, and government access programming and equipment. 2021-22 2022-23 FUND: 211 PUBLIC ACCESS TELEVISION Increase/ (Decrease) Page 643 of 673 FUND SUMMARIES 2020-21 ADOPTED AMENDED ESTIMATED CURRENT PROPOSED ITEM ACTUAL BUDGET BUDGET ACTUAL BUDGET BUDGET Beginning Fund Balance 62,940$ 53,434$ 53,434$ 53,434$ 58,734$ 58,734$ - Revenues: Revenues 7,384 5,300 5,300 5,300 5,300 5,300 - Transfers In - - - - - - - Total Revenues 7,384 5,300 5,300 5,300 5,300 5,300 - Expenditures: Salaries and Benefits - - - - - - - Services and Supplies - - - - - - - Capital Outlay - - - - - - - Transfers Out 16,890 - - - - - - Total Expenditures 16,890 - - - - - - Change in Fund Balance (9,506) 5,300 5,300 5,300 5,300 5,300 - Ending Fund Balance 53,434$ 58,734$ 58,734$ 58,734$ 64,034$ 64,034$ - 2021-22 2022-23 FUND: 212 POLICE PROTECTION IMPACT FEES This fund accounts for impact fees collected from developers for the expansion of the existing police facility in order to serve future development. Increase/ (Decrease) 2020-21 ADOPTED AMENDED ESTIMATED CURRENT PROPOSED ITEM ACTUAL BUDGET BUDGET ACTUAL BUDGET BUDGET Beginning Fund Balance 1,335,312$ 1,337,994$ 1,337,994$ 1,337,994$ 1,443,994$ 1,443,994$ - Revenues: Revenues 2,683 91,000 91,000 106,000 91,000 91,000 - Transfers In - - - - - - - Total Revenues 2,683 91,000 91,000 106,000 91,000 91,000 - Expenditures: Salaries and Benefits - - - - - - - Services and Supplies - - - - - - - Capital Outlay - - - - - - - Transfers Out - - - - - - - Total Expenditures - - - - - - - Change in Fund Balance 2,683 91,000 91,000 106,000 91,000 91,000 - Ending Fund Balance 1,337,994$ 1,428,994$ 1,428,994$ 1,443,994$ 1,534,994$ 1,534,994$ - FUND: 213 PARK DEVELOPMENT This fund accounts for the receipts of park-in-lieu fees (Quimby) and grant revenues that are used for construction, park acquisition, and development of park facilities. Increase/ (Decrease) 2021-22 2022-23 Page 644 of 673 FUND SUMMARIES 2020-21 ADOPTED AMENDED ESTIMATED CURRENT PROPOSED ITEM ACTUAL BUDGET BUDGET ACTUAL BUDGET BUDGET Beginning Fund Balance 331,858$ 308,247$ 308,247$ 308,247$ 164,196$ 164,196$ - Revenues: Revenues 24,311 70,900 70,900 25,900 70,900 50,900 (20,000) Transfers In - - - - - - - Total Revenues 24,311 70,900 70,900 25,900 70,900 50,900 (20,000) Expenditures: Salaries and Benefits - - - - - - - Services and Supplies - - - - - - - Capital Outlay - - - - - - - Transfers Out 47,921 116,000 169,951 169,951 126,000 60,000 (66,000) Total Expenditures 47,921 116,000 169,951 169,951 126,000 60,000 (66,000) Change in Fund Balance (23,611) (45,100) (99,051) (144,051) (55,100) (9,100) 46,000 Ending Fund Balance 308,247$ 263,147$ 209,196$ 164,196$ 109,096$ 155,096$ 46,000 2021-22 2022-23 FUND: 214 PARK IMPROVEMENT Impact fees collected from developers for park improvements are to be used to maintain the adopted level of service for neighborhood and community parks of 4.0 acres per thousand population. This fund accounts for the receipt and use of these monies. Increase/ (Decrease) 2020-21 ADOPTED AMENDED ESTIMATED CURRENT PROPOSED ITEM ACTUAL BUDGET BUDGET ACTUAL BUDGET BUDGET Beginning Fund Balance 24,096$ 25,514$ 25,514$ 25,514$ 29,714$ 29,714$ - Revenues: Revenues 1,417 4,200 4,200 4,200 4,200 4,200 - Transfers In - - - - - - - Total Revenues 1,417 4,200 4,200 4,200 4,200 4,200 - Expenditures: Salaries and Benefits - - - - - - - Services and Supplies - - - - - - - Capital Outlay - - - - - - - Transfers Out - - - - - - - Total Expenditures - - - - - - - Change in Fund Balance 1,417 4,200 4,200 4,200 4,200 4,200 - Ending Fund Balance 25,514$ 29,714$ 29,714$ 29,714$ 33,914$ 33,914$ - FUND: 215 RECREATION COMMUNITY CENTER This fund accounts for impact fees collected from developers and used for recreation facilities in order to maintain the adopted level of service of recreation/community center facilities of 542 square feet per thousand population. Increase/ (Decrease) 2021-22 2022-23 Page 645 of 673 FUND SUMMARIES 2020-21 ADOPTED AMENDED ESTIMATED CURRENT PROPOSED ITEM ACTUAL BUDGET BUDGET ACTUAL BUDGET BUDGET Beginning Fund Balance 43,546$ 40,467$ 40,467$ 40,467$ 30,532$ 30,532$ - Revenues: Revenues 9,406 9,500 9,500 9,500 9,500 9,500 - Transfers In - - - - - - - Total Revenues 9,406 9,500 9,500 9,500 9,500 9,500 - Expenditures: Salaries and Benefits - - - - - - - Services and Supplies 9,388 14,535 14,535 14,535 14,535 14,535 - Capital Outlay - - - - - - - Transfers Out 3,096 4,900 4,900 4,900 4,900 4,900 - Total Expenditures 12,484 19,435 19,435 19,435 19,435 19,435 - Change in Fund Balance (3,078) (9,935) (9,935) (9,935) (9,935) (9,935) - Ending Fund Balance 40,467$ 30,532$ 30,532$ 30,532$ 20,597$ 20,597$ - This fund accounts for the landscape maintenance within the Grace Lane housing tract. A special benefit assessment is levied on property owners to pay for landscape maintenance expenditures. 2021-22 2022-23 FUND: 216 GRACE LANE ASSESSMENT DISTRICT Increase/ (Decrease) 2020-21 ADOPTED AMENDED ESTIMATED CURRENT PROPOSED ITEM ACTUAL BUDGET BUDGET ACTUAL BUDGET BUDGET Beginning Fund Balance 1,294$ 1,033$ 1,033$ 1,033$ 1,033$ 1,033$ - Revenues: Revenues 5,565 5,900 5,900 5,900 5,900 5,900 - Transfers In - - - - - - - Total Revenues 5,565 5,900 5,900 5,900 5,900 5,900 - Expenditures: Salaries and Benefits - - - - - - - Services and Supplies 3,822 5,700 5,700 5,700 5,700 5,700 - Capital Outlay - - - - - - - Transfers Out 2,004 200 200 200 200 200 - Total Expenditures 5,826 5,900 5,900 5,900 5,900 5,900 - Change in Fund Balance (261) - - - - - - Ending Fund Balance 1,033$ 1,033$ 1,033$ 1,033$ 1,033$ 1,033$ - 2021-22 2022-23 FUND: 217 LANDSCAPE MAINTENANCE DISTRICTS This fund accounts for the landscape maintenance of parkways within two housing tracts. A special benefit assessment is levied on property owners to pay for landscape maintenance expenditures. Increase/ (Decrease) Page 646 of 673 FUND SUMMARIES 2020-21 ADOPTED AMENDED ESTIMATED CURRENT PROPOSED ITEM ACTUAL BUDGET BUDGET ACTUAL BUDGET BUDGET Beginning Fund Balance 3,823,112$ 4,820,703$ 4,820,703$ 4,820,703$ 4,462,466$ 4,462,466$ - Revenues: Revenues 2,696,852 2,489,500 2,489,500 2,737,790 2,586,500 2,846,000 259,500 Transfers In - - - - - - - Total Revenues 2,696,852 2,489,500 2,489,500 2,737,790 2,586,500 2,846,000 259,500 Expenditures: Salaries and Benefits - - - - - - - Services and Supplies 633,440 561,394 561,394 615,219 585,394 645,394 60,000 Capital Outlay - - - - - - - Transfers Out 1,065,821 1,394,130 3,629,376 2,480,808 2,304,331 5,339,287 3,034,956 Total Expenditures 1,699,261 1,955,524 4,190,770 3,096,027 2,889,725 5,984,681 3,094,956 Change in Fund Balance 997,591 533,976 (1,701,270) (358,237) (303,225) (3,138,681) (2,835,456) Ending Fund Balance 4,820,703$ 5,354,679$ 3,119,433$ 4,462,466$ 4,159,241$ 1,323,785$ (2,835,456) This fund accounts for the revenues derived from Measure O-06, a local 1/2% sales tax approved by the City's voters in November 2006. Increase/ (Decrease) FUND: 218 LOCAL SALES TAX 2021-22 2022-23 2020-21 ADOPTED AMENDED ESTIMATED CURRENT PROPOSED ITEM ACTUAL BUDGET BUDGET ACTUAL BUDGET BUDGET Beginning Fund Balance 449,246$ 463,760$ 463,760$ 463,760$ 471,360$ 471,360$ - Revenues: Revenues 44,792 46,500 46,500 46,500 46,500 46,500 - Transfers In - - - - - - - Total Revenues 44,792 46,500 46,500 46,500 46,500 46,500 - Expenditures: Salaries and Benefits - - - - - - - Services and Supplies 24,183 30,000 30,000 30,000 30,000 30,000 - Capital Outlay - - - - - - - Transfers Out 6,096 8,900 8,900 8,900 8,900 8,900 - Total Expenditures 30,279 38,900 38,900 38,900 38,900 38,900 - Change in Fund Balance 14,513 7,600 7,600 7,600 7,600 7,600 - Ending Fund Balance 463,760$ 471,360$ 471,360$ 471,360$ 478,960$ 478,960$ - 2021-22 2022-23 FUND: 219 PARKSIDE ASSESSMENT DISTRICT This fund accounts for revenue derived from annual assessments, which are used to pay the cost incurred by the City for landscape maintenance. Increase/ (Decrease) Page 647 of 673 FUND SUMMARIES 2020-21 ADOPTED AMENDED ESTIMATED CURRENT PROPOSED ITEM ACTUAL BUDGET BUDGET ACTUAL BUDGET BUDGET Beginning Fund Balance 90,322$ 90,339$ 90,339$ 90,339$ 0$ 0$ - Revenues: Revenues 551,990 783,678 783,678 802,131 799,352 891,066 91,714 Transfers In 463,890 491,000 491,000 536,806 576,000 576,000 - Total Revenues 1,015,881 1,274,678 1,274,678 1,338,937 1,375,352 1,467,066 91,714 Expenditures: Salaries and Benefits 484,278 495,200 499,700 499,700 483,700 523,100 39,400 Services and Supplies 254,959 294,500 294,500 294,500 436,900 447,168 10,268 Debt Service 40,899 53,704 53,704 53,704 - - - Capital Outlay - - - - - - - Transfers Out 235,728 453,072 613,944 581,372 456,167 417,100 (39,067) Total Expenditures 1,015,863 1,296,476 1,461,848 1,429,276 1,376,767 1,387,368 10,601 Change in Fund Balance 17 (21,798) (187,170) (90,339) (1,416) 79,698 81,114 Ending Fund Balance 90,339$ 68,541$ (96,831)$ 0$ (1,416)$ 79,698$ 81,114 Increase/ (Decrease) This fund accounts for receipts and expenditures of money apportioned by the State under Streets and Highway Code. The use of gas tax revenues can only be used to construct and maintain streets, roads and highways. FUND: 220 STREETS (GAS TAX) 2021-22 2022-23 2020-21 ADOPTED AMENDED ESTIMATED CURRENT PROPOSED ITEM ACTUAL BUDGET BUDGET ACTUAL BUDGET BUDGET Beginning Fund Balance 1,079,716$ 1,139,198$ 1,139,198$ 1,139,198$ 1,153,198$ 1,153,198$ - Revenues: Revenues 59,482 56,000 56,000 14,000 56,000 56,000 - Transfers In - - - - - - - Total Revenues 59,482 56,000 56,000 14,000 56,000 56,000 - Expenditures: Salaries and Benefits - - - - - - - Services and Supplies - - - - - - - Capital Outlay - - - - - - - Transfers Out - - - - - - - Total Expenditures - - - - - - - Change in Fund Balance 59,482 56,000 56,000 14,000 56,000 56,000 - Ending Fund Balance 1,139,198$ 1,195,198$ 1,195,198$ 1,153,198$ 1,209,198$ 1,209,198$ - 2021-22 2022-23 FUND: 222 TRAFFIC SIGNALIZATION This fund accounts for traffic signalization assessment levied against developments for the future cost of traffic signals. Increase/ (Decrease) Page 648 of 673 FUND SUMMARIES 2020-21 ADOPTED AMENDED ESTIMATED CURRENT PROPOSED ITEM ACTUAL BUDGET BUDGET ACTUAL BUDGET BUDGET Beginning Fund Balance 153,477$ 153,760$ 153,760$ 153,760$ 154,260$ 154,260$ - Revenues: Revenues 284 500 500 500 500 500 - Transfers In - - - - - - - Total Revenues 284 500 500 500 500 500 - Expenditures: Salaries and Benefits - - - - - - - Services and Supplies - - - - - - - Capital Outlay - - - - - - - Transfers Out - - - - - - - Total Expenditures - - - - - - - Change in Fund Balance 284 500 500 500 500 500 - Ending Fund Balance 153,760$ 154,260$ 154,260$ 154,260$ 154,760$ 154,760$ - FUND: 223 TRAFFIC CIRCULATION This fund accounts for developer traffic mitigation measure fees charged as a result of an environmental review. Increase/ (Decrease) 2021-22 2022-23 2020-21 ADOPTED AMENDED ESTIMATED CURRENT PROPOSED ITEM ACTUAL BUDGET BUDGET ACTUAL BUDGET BUDGET Beginning Fund Balance 2,446,874$ 2,601,057$ 2,601,057$ 2,601,057$ 1,848,589$ 1,848,589$ - Revenues: Revenues 156,715 150,000 150,000 35,000 150,000 150,000 - Transfers In - - - - - - - Total Revenues 156,715 150,000 150,000 35,000 150,000 150,000 - Expenditures: Salaries and Benefits - - - - - - - Debt Service - - Capital Outlay - - - - - - - Transfers Out 2,532 107,124 787,468 787,468 831,219 590,000 (241,219) Total Expenditures 2,532 107,124 787,468 787,468 831,219 590,000 (241,219) Change in Fund Balance 154,183 42,876 (637,468) (752,468) (681,219) (440,000) 241,219 Ending Fund Balance 2,601,057$ 2,643,933$ 1,963,589$ 1,848,589$ 1,167,370$ 1,408,589$ 241,219 2021-22 2022-23 FUND: 224 TRANSPORTATION FACILITY IMPACT This fund accounts for developer impact fees (AB1600 fees) paid to protect the public health, safety, and welfare by maintaining the existing level of public services for existing and future residents within the City of Arroyo Grande. Increase/ (Decrease) Page 649 of 673 FUND SUMMARIES 2020-21 ADOPTED AMENDED ESTIMATED CURRENT PROPOSED ITEM ACTUAL BUDGET BUDGET ACTUAL BUDGET BUDGET Beginning Fund Balance 321,241$ 540,130$ 540,130$ 540,130$ 965,130$ 965,130$ - Revenues: Revenues 461,948 364,000 364,000 673,000 364,000 514,000 150,000 Transfers In - - - - - - - Total Revenues 461,948 364,000 364,000 673,000 364,000 514,000 150,000 Expenditures: Salaries and Benefits - - - - - - - Services and Supplies 2,363 15,000 15,000 15,000 15,000 15,000 - Debt Service - - Capital Outlay - - - - - - - Transfers Out 240,696 233,000 233,000 233,000 233,000 233,000 - Total Expenditures 243,059 248,000 248,000 248,000 248,000 248,000 - Change in Fund Balance 218,889 116,000 116,000 425,000 116,000 266,000 150,000 Ending Fund Balance 540,130$ 656,130$ 656,130$ 965,130$ 1,081,130$ 1,231,130$ 150,000 2021-22 2022-23 FUND: 225 TRANSPORTATION This revenue source is provided by the San Luis Obispo County of Government’s (SLOCOG) Local Transportation Fund (LTF). The annual appropriation is restricted to transportation systems, including transit, pedestrian, street and road maintenance. Increase/ (Decrease) 2020-21 ADOPTED AMENDED ESTIMATED CURRENT PROPOSED ITEM ACTUAL BUDGET BUDGET ACTUAL BUDGET BUDGET Beginning Fund Balance 360,478$ 369,799$ 369,799$ 369,799$ 249,499$ 249,499$ - Revenues: Revenues 21,970 77,000 77,000 17,000 77,000 77,000 - Transfers In - - - - - - - Total Revenues 21,970 77,000 77,000 17,000 77,000 77,000 - Expenditures: Services and Supplies 12,649 137,300 137,300 137,300 137,300 137,300 - Debt Service - - Capital Outlay - - - - - - - Transfers Out - - - - - - - Total Expenditures 12,649 137,300 137,300 137,300 137,300 137,300 - Change in Fund Balance 9,321 (60,300) (60,300) (120,300) (60,300) (60,300) - Ending Fund Balance 369,799$ 309,499$ 309,499$ 249,499$ 189,199$ 189,199$ - 2021-22 2022-23 Increase/ (Decrease) FUND: 226 WATER NEUTRALIZATION IMPACT The City requires development projects that increase total water consumption in the City to “neutralize” that demand by reducing water consumption in existing development by an equivalent amount or by paying a fee in- lieu of performing water consumption reductions. This fund accounts for the amount collected from developers and is used towards the City’s water conservation efforts. Page 650 of 673 FUND SUMMARIES 2020-21 ADOPTED AMENDED ESTIMATED CURRENT PROPOSED ITEM ACTUAL BUDGET BUDGET ACTUAL BUDGET BUDGET Beginning Fund Balance 5,891$ 5,891$ 5,891$ 5,891$ 404$ 404$ - Revenues: Revenues - - - - - - - Transfers In - - - - - - - Total Revenues - - - - - - - Expenditures: Salaries and Benefits - - - - - - - Services and Supplies - - - - - - - Capital Outlay - - - - - - - Transfers Out - - 5,487 5,487 - - - Total Expenditures - - 5,487 5,487 - - - Change in Fund Balance - - (5,487) (5,487) - - - Ending Fund Balance 5,891$ 5,891$ 404$ 404$ 404$ 404$ - 2021-22 2022-23 FUND: 231 DRAINAGE FACILITY This fund accounts for impact fees paid by development and are restricted to improving drainage within the City. Increase/ (Decrease) 2020-21 ADOPTED AMENDED ESTIMATED CURRENT PROPOSED ITEM ACTUAL BUDGET BUDGET ACTUAL BUDGET BUDGET Beginning Fund Balance 1,054,052$ 1,086,065$ 1,086,065$ 1,086,065$ 1,151,565$ 1,151,565$ - Revenues: Revenues 32,012 26,500 26,500 65,500 26,500 26,500 - Transfers In - - - - - - - Total Revenues 32,012 26,500 26,500 65,500 26,500 26,500 - Expenditures: Salaries and Benefits - - - - - - - Services and Supplies - - - - - - - Capital Outlay - - - - - - - Transfers Out - - - - - - - Total Expenditures - - - - - - - Change in Fund Balance 32,012 26,500 26,500 65,500 26,500 26,500 - Ending Fund Balance 1,086,065$ 1,112,565$ 1,112,565$ 1,151,565$ 1,178,065$ 1,178,065$ - FUND: 232 IN-LIEU AFFORDABLE HOUSING This fund accounts for monies paid by developers in meeting the City's mandatory affordable housing requirements. Increase/ (Decrease) 2021-22 2022-23 Page 651 of 673 FUND SUMMARIES 2020-21 ADOPTED AMENDED ESTIMATED CURRENT PROPOSED ITEM ACTUAL BUDGET BUDGET ACTUAL BUDGET BUDGET Beginning Fund Balance 19,905$ 19,942$ 19,942$ 19,942$ 20,004$ 20,004$ - Revenues: Revenues 37 - - 62 - - - Transfers In - - - - - - - Total Revenues 37 - - 62 - - - Expenditures: Salaries and Benefits - - - - - - - Services and Supplies - - - - - - - Capital Outlay - - - - - - - Transfers Out - - - - - - - Total Expenditures - - - - - - - Change in Fund Balance 37 - - 62 - - - Ending Fund Balance 19,942$ 19,942$ 19,942$ 20,004$ 20,004$ 20,004$ - This fund accounts for monies paid by developers in meeting the City's underground utility requirements. 2021-22 2022-23 FUND: 233 IN-LIEU UNDERGROUND UTILITY Increase/ (Decrease) 2020-21 ADOPTED AMENDED ESTIMATED CURRENT PROPOSED ITEM ACTUAL BUDGET BUDGET ACTUAL BUDGET BUDGET Beginning Fund Balance 308,374$ 328,349$ 328,349$ 328,349$ 325,075$ 325,075$ - Revenues: Revenues 205,466 136,750 136,750 246,200 147,650 244,750 97,100 Transfers In - - - - - - - Total Revenues 205,466 136,750 136,750 246,200 147,650 244,750 97,100 Salaries and Benefits - - - - - - - Services and Supplies 185,491 221,500 221,500 241,474 221,500 285,000 63,500 Debt Service - - - - - - - Capital Outlay - - - - - - - Transfers Out - 8,000 8,000 8,000 8,000 8,000 - Total Expenditures 185,491 229,500 229,500 249,474 229,500 293,000 63,500 Change in Fund Balance 19,975 (92,750) (92,750) (3,274) (81,850) (48,250) 33,600 Ending Fund Balance 328,349$ 235,599$ 235,599$ 325,075$ 243,225$ 276,825$ 33,600 2021-22 2022-23 FUND: 240 TOURISM BUSINESS IMPROVEMENT DISTRICT The purpose of the Tourism Business Improvement District (TBID) is to provide projects, programs and activities that benefit lodging businesses located and operating within the City of Arroyo Grande. A two percent (2%) assessment i s levied on all lodging businesses of the rent charged by the operator per occupied room per night for all transient occupancies. Revenue collected is used to promote the lodging industry within the City. Increase/ (Decrease) Page 652 of 673 FUND SUMMARIES 2020-21 ADOPTED AMENDED ESTIMATED CURRENT PROPOSED ITEM ACTUAL BUDGET BUDGET ACTUAL BUDGET BUDGET Beginning Fund Balance 1,555,872$ 1,601,902$ 1,601,902$ 1,601,902$ 45,950$ 45,950$ - Revenues: Revenues 51,088 78,000 78,000 18,000 78,000 78,000 - Transfers In - - - - - - - Total Revenues 51,088 78,000 78,000 18,000 78,000 78,000 - Expenditures: Services and Supplies - - - - - - - Debt Service - - Capital Outlay - - - - - - - Transfers Out 5,059 20,100 787,812 1,573,952 700,000 123,950 (576,050) Total Expenditures 5,059 20,100 787,812 1,573,952 700,000 123,950 (576,050) Change in Fund Balance 46,029 57,900 (709,812) (1,555,952) (622,000) (45,950) 576,050 Ending Fund Balance 1,601,902$ 1,659,802$ 892,090$ 45,950$ (576,050)$ (0)$ 576,050 Pursuant to the provisions of Section 38743 of the Government Code, water availability charges is a “special charge” which is levied to each parcel of property not served with city water. These charges are restricted for the sole purpose of expanding water supply such as desalination plant, recycled water, scalping plant, etc. 2021-22 2022-23 FUND: 241 WATER AVAILABILITY FUND Increase/ (Decrease) 2020-21 ADOPTED AMENDED ESTIMATED CURRENT PROPOSED ITEM ACTUAL BUDGET BUDGET ACTUAL BUDGET BUDGET Beginning Fund Balance 15,180$ 17,242$ 17,242$ 17,242$ 17,242$ 17,242$ - Revenues: Revenues 170,864 78,279 78,279 78,279 - - - Transfers In - - - - - - - Total Revenues 170,864 78,279 78,279 78,279 - - - Expenditures: Salaries and Benefits - - - - - - - Services and Supplies 168,802 78,279 78,279 78,279 - - - Debt Service - - - - - - - Capital Outlay - - - - - - - Transfers Out - - - - - - - Total Expenditures 168,802 78,279 78,279 78,279 - - - Change in Fund Balance 2,062 - - - - - - Ending Fund Balance 17,242$ 17,242$ 17,242$ 17,242$ 17,242$ 17,242$ - This fund accounts for revenues and expenditures related to Community Development Block Grant (CDBG) Funds. The program is a flexible program that provides the City with resources to address a wide range of unique community development needs. FUND: 250 CDBG GRANT FUND Increase/ (Decrease) 2021-22 2022-23 Page 653 of 673 FUND SUMMARIES 2020-21 ADOPTED AMENDED ESTIMATED CURRENT PROPOSED ITEM ACTUAL BUDGET BUDGET ACTUAL BUDGET BUDGET Beginning Fund Balance -$ -$ -$ -$ 1,091,441$ 1,091,441$ - Revenues: Revenues - - 2,150,121 2,150,121 - 2,150,121 2,150,121 Transfers In - - - - - - - Total Revenues - - 2,150,121 2,150,121 - 2,150,121 2,150,121 Expenditures: Salaries and Benefits - - - - - - - Services and Supplies - - 594,391 17,500 - - - Capital Outlay - - - - - - - Transfers Out - - 3,705,850 1,041,180 - 1,645,770 1,645,770 Total Expenditures - - 4,300,241 1,058,680 - 1,645,770 1,645,770 Change in Fund Balance - - (2,150,121) 1,091,441 - 504,351 504,351 Ending Fund Balance -$ -$ (2,150,121)$ 1,091,441$ 1,091,441$ 1,595,791$ 504,351 Increase/ (Decrease) FUND: 260 AMERICAN RESCURE PLAN ACT (ARPA) This fund accounts for American Rescue Plan Act (ARPA) funds. On March 11, 2021 President Biden signed ARPA into law. ARPA is intended to provide financial aid to families, governments, businesses, schools, non-profits and others impacted by the COVID-19 public health crisis. To support the immediate pandemic response, bring back jobs, and lay the groundwork for a strong and equitable recovery, ARPA established the Coronavirus State and Local Recovery Fund, designed to deliver $350 billion to state, local, territorial, and Tribal governments to bolster their response to the COVID-19 emergency and recover from the economic impacts caused by the public health crisis. This legislation provided $27 billion in federal money to the State of California. The State will allocate $1.2 billion to non-entitlement units of local government (NEUs). As an NEU, Arroyo Grande is eligible to receive $4,300,241. The City received the first tranche of funding on July 13, 2021, totaling $2,150,121 and the balance will be delivered 12 months later. 2021-22 2022-23 2020-21 ADOPTED AMENDED ESTIMATED CURRENT PROPOSED ITEM ACTUAL BUDGET BUDGET ACTUAL BUDGET BUDGET Beginning Fund Balance 246,341$ 397,271$ 397,271$ 397,271$ 388,071$ 388,071$ - Revenues: Revenues 218,640 140,800 140,800 140,800 140,800 140,800 - Transfers In - - - - - - - Total Revenues 218,640 140,800 140,800 140,800 140,800 140,800 - Expenditures: Salaries and Benefits - - - - - - - Services and Supplies - - - - - - - Capital Outlay 17,709 - - - - - - Transfers Out 50,000 150,000 150,000 150,000 125,000 125,000 - Total Expenditures 67,709 150,000 150,000 150,000 125,000 125,000 - Change in Fund Balance 150,931 (9,200) (9,200) (9,200) 15,800 15,800 - Ending Fund Balance 397,271$ 388,071$ 388,071$ 388,071$ 403,871$ 403,871$ - This fund accounts for the receipt and use of monies from the State of California restricted to the purchase of police equipment and technology for crime prevention. Increase/ (Decrease) FUND: 271 STATE COPS BLOCK GRANT 2021-22 2022-23 Page 654 of 673 FUND SUMMARIES AGENCY FUNDS 2020-21 ADOPTED AMENDED ESTIMATED CURRENT PROPOSED ITEM ACTUAL BUDGET BUDGET ACTUAL BUDGET BUDGET Beginning Fund Balance (2,341,912)$ (2,565,372)$ (2,565,372)$ (2,565,372)$ (2,567,372)$ (2,567,372)$ - Revenues: Revenues - 412,944 412,944 412,944 412,944 412,944 - Transfers In - - - - Total Revenues - 412,944 412,944 412,944 412,944 412,944 - Expenditures: Salaries and Benefits - - - - - - - Services and Supplies 4,225 2,000 2,000 2,000 2,000 2,000 - Debt Service 189,239 382,944 382,944 382,944 382,944 382,944 - Capital Outlay - - - - - - - Transfers Out 29,996 30,000 30,000 30,000 30,000 30,000 - Total Expenditures 223,460 414,944 414,944 414,944 414,944 414,944 - Change in Fund Balance (223,460) (2,000) (2,000) (2,000) (2,000) (2,000) - Ending Fund Balance (2,565,372)$ (2,567,372)$ (2,567,372)$ (2,567,372)$ (2,569,372)$ (2,569,372)$ - FUND: 286 SUCCESSOR AGENCY TO THE FORMER REDEVELOPMENT AGENCY This private-purpose trust fund was created to hold the assets of the former redevelopment agency of the City of Arroyo Grande until they are distributed to other units of state and local government after the payment of enforceable obligations have been made. Increase/ (Decrease) 2021-22 2022-23 2020-21 ADOPTED AMENDED ESTIMATED CURRENT PROPOSED ITEM ACTUAL BUDGET BUDGET ACTUAL BUDGET BUDGET Beginning Fund Balance 1,595,878$ 1,622,334$ 1,622,334$ 1,622,334$ 1,620,934$ 1,620,934$ - Revenues: Revenues 27,859 - - - - - Transfers In - Total Revenues 27,859 - - - - - - Expenditures: Salaries and Benefits - - - - - - Services and Supplies 1,404 1,400 1,400 1,400 1,400 1,400 Debt Service - - - - - - Capital Outlay - - - - - - Transfers Out - - - - - - Total Expenditures 1,404 1,400 1,400 1,400 1,400 1,400 - Ending Fund Balance 1,622,334$ 1,620,934$ 1,620,934$ 1,620,934$ 1,619,534$ 1,619,534$ FUND: 287 SUCCESSOR AGENCY TO THE FORMER REDEVELOPMENT AGENCY - HOUSING FUNCTION This private-purpose trust fund was created to hold the housing assets of the former redevelopment agency of the City of Arroyo Grande until they are distributed to other units of state and local government after the payment of enforceable obligations have been made. Increase/ (Decrease) 2021-22 2022-23 Page 655 of 673 FUND SUMMARIES FUND: 751 DOWNTOWN PARKING 2020-21 ADOPTED AMENDED ESTIMATED CURRENT PROPOSED ITEM ACTUAL BUDGET BUDGET ACTUAL BUDGET BUDGET Beginning Fund Balance 1,529$ 4,526$ 4,526$ 4,526$ 4,819$ 4,819$ - Revenues: Revenues 11,342 8,500 8,500 11,000 8,500 8,500 Transfers In 8 - Total Revenues 11,350 8,500 8,500 11,000 8,500 8,500 - Expenditures: Salaries and Benefits - - - - - - Services and Supplies 4,753 4,400 4,400 4,807 4,400 4,400 Capital Outlay - - - - - - Transfers Out 3,600 5,900 5,900 5,900 5,900 5,900 Total Expenditures 8,353 10,300 10,300 10,707 10,300 10,300 - Ending Fund Balance 4,526$ 2,726$ 2,726$ 4,819$ 3,019$ 3,019$ This agency fund collects assessments from Arroyo Grande Village merchants for the maintenance of the Village parking lots for the Downtown Village Merchants Association. Increase/ (Decrease) 2021-22 2022-23 Page 656 of 673 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 ATTACHMENT 2 Page 657 of 673 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 - - 4816 - Other Financing - - 5,508,781 8,768,408 8,618,408 - - 4922 - Traffic Signalization - - - 479,592 479,592 - - 4926 - Transportation Facility 787,468 787,468 831,219 - - - - 31,310,000 350-5658 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 12,446,100 15,482,628 24,832,228 2,094,663 2,215,000 57,070,619 Page 658 of 673 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 ProjecCommunity 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 16,381,665 17,849,053 26,530,228 2,416,663 2,427,000 65,604,609 Page 659 of 673 ATTACHMENT 3 RESOLUTION NO. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ARROYO GRANDE ADOPTING THE FISCAL YEAR 2022-23 BUDGET AND MAKING APPROPRIATIONS FOR THE AMOUNT BUDGETED WHEREAS, a proposed Budget for the City of Arroyo Grande for the Fiscal Year commencing July 1, 2022, and ending June 30, 2023, was submitted to the City Council and a copy is on file with the Director of Administrative Services; and WHEREAS, the City Council also serves as the Board of Directors of the Successor Agency to the Dissolved Arroyo Grande Redevelopment Agency; and WHEREAS, proceedings for adoption of said Budget have been duly undertaken; and WHEREAS, total Operating Expenditures for FY 2022-23 are $47,380,715. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF ARROYO GRANDE DOES HEREBY RESOLVE AS FOLLOWS: SECTION 1. The Budget is adopted for the City of Arroyo Grande for Fiscal Year commencing July 1, 2022, and ending June 30, 2023. SECTION 2. At the close of each fiscal year, unexpended appropriations in the Operating Budget will be carried forward to the next fiscal year as necessary to underwrite the expense of outstanding purchase commitments. Unexpended appropriations for authorized but uncompleted projects as approved by the City Council may be carried forward to the next succeeding Budget upon recommendation by the Administrative Services Director and approval of the City Manager. 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 14th day of June, 2022. Page 660 of 673 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 661 of 673 ATTACHMENT 4 RESOLUTION NO. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ARROYO GRANDE ADOPTING THE FISCAL YEAR 2022- 2023 CAPITAL IMPROVEMENT PROGRAM BUDGET AND MAKING APPROPRIATIONS FOR THE AMOUNT BUDGETED WHEREAS, a proposed Capital Improvement Program Budget (Budget) for the City of Arroyo Grande for the Fiscal Year commencing July 1, 2022, and ending June 30, 2023, was submitted to the City Council and a copy is on file with the Director of Administrative Services; and WHEREAS, proceedings for adoption of said Budget have been duly undertaken; and WHEREAS, total Capital Improvement Program Expenditures for FY 2022 -23 are $10,631,665. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF ARROYO GRANDE DOES HEREBY RESOLVE AS FOLLOWS: SECTION 1. The Capital Improvement Program Budget is adopted for the City of Arroyo Grande for the Fiscal Years commencing July 1, 2022, and ending June 30, 2023 . SECTION 2. At the close of each fiscal year, unexpended appropriations in the Operating Budget will be carried forward to the next fiscal year as necessary to underwrite the expense of outstanding purchase commitments. Unexpended appropriations for authorized, but uncompleted projects as approved by the City Council may be carried forward to the next succeeding Budget upon recommendation by the Administrative Services Director and approval of the City Manager. 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 14th day of June, 2022. Page 662 of 673 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 663 of 673 ATTACHMENT 5 RESOLUTION NO. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ARROYO GRANDE ESTABLISHING A SALARY RANGE FOR A MANAGEMENT ANALYST AND APPROVING THE UPDATED CITYWIDE COMBINED SALARY SCHEDULE WHEREAS, an evaluation of the needs of the organization resulted in a recommendation to create a new full-time salary range for a new job classification; and WHEREAS, the City Council deems it in the best interest of the City of Arroyo Grande (City) to establish a salary range for the position of Management Analyst, which will be placed on the Management Positions Salary Schedule; and WHEREAS, changes to the Citywide Combined Salary Schedule are necessary to reflect cost of living increases approved by previous action of the City Council; and NOW, THEREFORE BE IT RESOLVED by the City Council of the City of Arroyo Grande that the salary range for the Full-Time Management Analyst is hereby established as set forth in Exhibit “A,” attached hereto and incorporated herein by this reference, and that the Citywide Combined Salary Schedule set forth in Exhibit “A” is hereby adopted effective July 8, 2022. 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 14th day of June, 2022. Page 664 of 673 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 665 of 673 GROUP: SEIU Position A B C D E Office Assistant I Biweekly 1,528.48 1,604.90 1,685.15 1,769.41 1,857.88 Monthly 3,311.70 3,477.29 3,651.15 3,833.71 4,025.40 Annual 39,740.45 41,727.47 43,813.85 46,004.54 48,304.77 Accounting Clerk I Biweekly 1,566.69 1,645.03 1,727.28 1,813.64 1,904.32 Monthly 3,394.50 3,564.22 3,742.43 3,929.55 4,126.03 Annual 40,733.96 42,770.66 44,909.19 47,154.65 49,512.39 Maintenance Worker I Biweekly 1,646.00 1,728.30 1,814.72 1,905.46 2,000.73 Monthly 3,566.34 3,744.66 3,931.89 4,128.49 4,334.91 Annual 42,796.12 44,935.93 47,182.72 49,541.86 52,018.95 Office Assistant II Biweekly 1,687.15 1,771.51 1,860.09 1,953.09 2,050.75 Monthly 3,655.50 3,838.28 4,030.19 4,231.70 4,443.29 Annual 43,866.02 46,059.32 48,362.29 50,780.41 53,319.43 Accounting Clerk II Biweekly 1,816.88 1,907.73 2,003.11 2,103.27 2,208.43 Maintenance Worker II Monthly 3,936.58 4,133.40 4,340.07 4,557.08 4,784.93 Annual 47,238.91 49,600.86 52,080.90 54,684.94 57,419.19 Administrative Secretary Biweekly 2,005.50 2,105.77 2,211.06 2,321.61 2,437.69 Monthly 4,345.24 4,562.51 4,790.63 5,030.16 5,281.67 Annual 52,142.92 54,750.06 57,487.57 60,361.94 63,380.04 Senior Accounting Clerk Biweekly 2,055.63 2,158.42 2,266.34 2,379.65 2,498.64 Building Permit Tech.Monthly 4,453.87 4,676.57 4,910.40 5,155.92 5,413.71 Plan/Engineer Permit Tech Annual 53,446.49 56,118.81 58,924.76 61,870.99 64,964.54 Sports Facility Coord. Recreation Coordinator Maintenance Worker III Water Services Worker Biweekly 2,159.70 2,267.69 2,381.07 2,500.12 2,625.13 Monthly 4,679.35 4,913.32 5,158.99 5,416.93 5,687.78 Annual 56,152.22 58,959.83 61,907.82 65,003.21 68,253.37 Fleet Maint. Coordinator Biweekly 2,269.04 2,382.49 2,501.61 2,626.69 2,758.03 Community Services Specialist Monthly 4,916.24 5,162.06 5,420.16 5,691.17 5,975.72 Annual 58,994.92 61,944.67 65,041.90 68,294.00 71,708.70 Public Works Lead Worker Biweekly 2,325.76 2,442.05 2,564.15 2,692.36 2,826.98 Parks Lead Worker Monthly 5,039.15 5,291.11 5,555.66 5,833.45 6,125.12 Annual 60,469.80 63,493.29 66,667.95 70,001.35 73,501.42 CITY OF ARROYO GRANDE COMBINED SALARY SCHEDULE EFFECTIVE 07/08/2022 EXHIBIT A Page 666 of 673 CITY OF ARROYO GRANDE COMBINED SALARY SCHEDULE EFFECTIVE 07/08/2022 Position A B C D E GIS Technician Biweekly 2,504.59 2,629.82 2,761.31 2,899.38 3,044.35 Monthly 5,426.61 5,697.94 5,982.84 6,281.98 6,596.08 Annual 65,119.36 68,375.33 71,794.09 75,383.80 79,152.99 Recreation Supervisor Biweekly 2,567.21 2,695.57 2,830.34 2,971.86 3,120.45 Streets Maintenance Supervisor Monthly 5,562.28 5,840.39 6,132.41 6,439.03 6,760.98 Parks, Tree & Landscape Supervisor Annual 66,747.34 70,084.71 73,588.95 77,268.39 81,131.81 Utilities/Water & Sewer System Supervisor Soto Sports Complex Maint. & Coord. Supervisor Citywide Fleet Coordinator Biweekly 2,631.39 2,762.95 2,901.10 3,046.16 3,198.47 Monthly 5,701.34 5,986.40 6,285.72 6,600.01 6,930.01 Annual 68,416.03 71,836.83 75,428.67 79,200.10 83,160.11 IT Specialist Biweekly 2,764.60 2,902.83 3,047.97 3,200.37 3,360.39 Assistant Engineer Monthly 5,989.97 6,289.46 6,603.94 6,934.13 7,280.84 Engineering Inspector Annual 71,879.59 75,473.57 79,247.25 83,209.61 87,370.09 Program Analyst Associate Engineer Biweekly 3,127.89 3,284.29 3,448.50 3,620.92 3,801.97 Monthly 6,777.10 7,115.95 7,471.75 7,845.34 8,237.60 Annual 81,325.16 85,391.41 89,660.98 94,144.03 98,851.23 Senior Engineer Biweekly 3,368.40 3,536.82 3,713.66 3,899.34 4,094.31 Monthly 7,298.19 7,663.10 8,046.26 8,448.57 8,871.00 Annual 87,578.30 91,957.21 96,555.07 101,382.83 106,451.97 Page 667 of 673 CITY OF ARROYO GRANDE COMBINED SALARY SCHEDULE EFFECTIVE 07/08/2022 GROUP: POA Position A B C D E Police Officer Biweekly 2,823.27 2,964.43 3,112.65 3,268.29 3,431.70 Monthly 6,117.08 6,422.93 6,744.08 7,081.29 7,435.35 Annual 73,404.97 77,075.22 80,928.98 84,975.43 89,224.20 Sr. Police Officer Biweekly 3,117.61 3,273.49 3,437.16 3,609.02 3,789.47 Monthly 6,754.82 7,092.56 7,447.19 7,819.55 8,210.53 Annual 81,057.86 85,110.75 89,366.29 93,834.60 98,526.33 Police Sergeant Biweekly 3,613.43 3,794.10 3,983.80 4,182.99 4,392.14 Monthly 7,829.09 8,220.54 8,631.57 9,063.15 9,516.31 Annual 93,949.08 98,646.54 103,578.86 108,757.81 114,195.70 Records Clerk Biweekly 1,967.53 2,065.90 2,169.20 2,277.66 2,391.54 Monthly 4,262.97 4,476.12 4,699.93 4,934.92 5,181.67 Annual 51,155.66 53,713.45 56,399.12 59,219.08 62,180.03 Records/Property Evidence Tech.Biweekly 2,173.72 2,282.41 2,396.53 2,516.36 2,642.17 Monthly 4,709.73 4,945.22 5,192.48 5,452.10 5,724.71 Annual 56,516.78 59,342.62 62,309.75 65,425.24 68,696.50 Police Trainee Biweekly 2,459.14 2,582.10 2,711.21 2,846.77 2,989.11 Monthly 5,328.15 5,594.55 5,874.28 6,168.00 6,476.40 Annual 63,937.76 67,134.65 70,491.38 74,015.95 77,716.75 Page 668 of 673 CITY OF ARROYO GRANDE COMBINED SALARY SCHEDULE EFFECTIVE 07/08/2022 GROUP: FCFA IAFF Position A B C D E Fire Fighter Biweekly 2,252 2,365 2,483 2,607 2,738 Monthly 4,880 5,124 5,380 5,649 5,932 Annual 58,560 61,488 64,562 67,791 71,180 Fire Engineer Biweekly 2,612 2,742 2,880 3,024 3,175 Monthly 5,659 5,942 6,239 6,551 6,879 Annual 67,908 71,303 74,869 78,612 82,543 Fire Captain Biweekly 3,105 3,260 3,423 3,594 3,774 Monthly 6,727 7,063 7,417 7,787 8,177 Annual 80,724 84,760 88,998 93,448 98,121 GROUP: FCFA MANAGEMENT Position LOW MID HIGH Administrative Operations Manager/Biweekly 3,162 3,504 3,845 Clerk to the Board Monthly 6,851 7,591 8,331 Annual 82,212 91,092 99,972 Battalion Chief Biweekly 4,679 5,184 5,688 Monthly 10,138 11,232 12,325 Annual 121,659 134,780 147,900 Fire Chief Biweekly 5,428 6,014 6,600 Monthly 11,761 13,031 14,301 Annual 141,126 156,366 171,606 Page 669 of 673 CITY OF ARROYO GRANDE COMBINED SALARY SCHEDULE EFFECTIVE 07/08/2022 GROUP: MANAGEMENT Position LOW MID HIGH Office Assistant I Biweekly 1,560.00 1,728.46 1,896.92 Monthly 3,380.00 3,745.00 4,110.00 Annual 40,560.00 44,940.00 49,320.00 Office Assistant II Biweekly 1,721.54 1,908.00 2,094.46 Monthly 3,730.00 4,134.00 4,538.00 Annual 44,760.00 49,608.00 54,456.00 Administrative Secretary Biweekly 1,997.08 2,212.38 2,427.69 Monthly 4,327.00 4,793.50 5,260.00 Annual 51,924.00 57,522.00 63,120.00 Executive Secretary Biweekly 2,259.69 2,503.85 2,748.00 Monthly 4,896.00 5,425.00 5,954.00 Annual 58,752.00 65,100.00 71,448.00 Assistant Planner Biweekly 2,494.62 2,763.92 3,033.23 Monthly 5,405.00 5,988.50 6,572.00 Annual 64,860.00 71,862.00 78,864.00 Associate Planner Biweekly 2,753.08 3,050.54 3,348.00 Deputy City Clerk/ Monthly 5,965.00 6,609.50 7,254.00 Communications Coordinator Annual 71,580.00 79,314.00 87,048.00 Planning Manager Biweekly 3,272.77 3,626.31 3,979.85 Accounting Manager Monthly 7,091.00 7,857.00 8,623.00 Management Analyst Annual 85,092.00 94,284.00 103,476.00 Public Works Manager Biweekly 3,525.23 3,905.31 4,285.38 Utilities Manager Monthly 7,638.00 8,461.50 9,285.00 Annual 91,656.00 101,538.00 111,420.00 Information Technology Mgr Biweekly 3,612.00 4,001.77 4,391.54 Monthly 7,826.00 8,670.50 9,515.00 Annual 93,912.00 104,046.00 114,180.00 Page 670 of 673 CITY OF ARROYO GRANDE COMBINED SALARY SCHEDULE EFFECTIVE 07/08/2022 Position LOW MID HIGH Capital Improvement Projects Biweekly 3,702.46 4,102.15 4,501.85 Manager Monthly 8,022.00 8,888.00 9,754.00 Annual 96,264.00 106,656.00 117,048.00 Human Resources Officer Biweekly 3,795.69 4,205.08 4,614.46 Dir of Legis and Info Services Monthly 8,224.00 9,111.00 9,998.00 Dir of Recreation Services Annual 98,688.00 109,332.00 119,976.00 Building Official Biweekly 3,889.85 4,310.31 4,730.77 Monthly 8,428.00 9,339.00 10,250.00 Annual 101,136.00 112,068.00 123,000.00 Police Commander Biweekly 4,423.85 4,901.31 5,378.77 Monthly 9,585.00 10,619.50 11,654.00 Annual 115,020.00 127,434.00 139,848.00 City Engineer Biweekly 4,738.62 5,251.15 5,763.69 Monthly 10,267.00 11,377.50 12,488.00 Annual 123,204.00 136,530.00 149,856.00 Director of Public Works Biweekly 5,230.62 5,795.54 6,360.46 Dir of Administrative Services Monthly 11,333.00 12,557.00 13,781.00 Dir of Community Develop Annual 135,996.00 150,684.00 165,372.00 Police Chief Biweekly 5,661.23 6,272.54 6,883.85 Monthly 12,266.00 13,590.50 14,915.00 Annual 147,192.00 163,086.00 178,980.00 Assistant City Manager/Public Biweekly 6,303.69 6,983.77 7,663.85 Works Director Monthly 13,658.00 15,131.50 16,605.00 Annual 163,896.00 181,578.00 199,260.00 City Manager Biweekly 7,825.85 Monthly 16,956.00 Annual 203,472.00 Page 671 of 673 CITY OF ARROYO GRANDE COMBINED SALARY SCHEDULE EFFECTIVE 07/08/2022 GROUP: PART-TIME POSITIONS POLICE DEPARTMENT Step A Step B Step C Step D Administrative Intern (Cadet)$16.30 $17.12 $17.97 $18.87 Records Clerk $20.91 $21.95 $23.05 $24.20 Fleet & Equipment Technician $25.26 $26.53 $27.85 $29.25 Neighborhood Services Technician $22.54 $23.67 $24.85 $26.10 Training Technician $25.26 $26.53 $27.85 $29.25 Police Reserve Officer Trainee $24.11 $25.31 $26.58 $27.90 Police Reserve Officer $27.68 $29.06 $30.51 $32.04 Designated Level I Reserve Officer $34.60 $36.33 $38.15 $40.05 RECREATION SERVICES DEPARTMENT AM/PM Assistant I $15.53 $16.30 $17.12 $17.97 AM/PM Assistant II $16.50 $17.32 $18.19 $19.10 AM/PM Assistant Teacher $18.14 $19.05 $20.00 $21.00 AM/PM Teacher $19.95 $20.95 $22.00 $23.10 Pre School Teacher $19.95 $20.95 $22.00 $23.10 Facility Attendant $15.53 $16.30 $17.12 $17.97 Senior Facility Attendant $16.50 $17.32 $18.19 $19.10 Sports Facility Attendant $15.53 $16.30 $17.12 $17.97 Volunteer and Program Coordinator $25.48 $26.76 $28.09 $29.50 MISCELLANEOUS Administrative Intern $16.30 $17.12 $17.97 $18.87 Office Assistant I $16.99 $17.84 $18.74 $19.67 Office Assistant II $19.86 $20.85 $21.90 $22.99 Sr. Office Assistant $20.91 $21.95 $23.05 $24.20 Administrative Secretary $23.89 $25.08 $26.34 $27.65 Executive Secretary $28.25 $29.66 $31.14 $32.70 Building Permit Technician $25.64 $26.92 $28.26 $29.68 Assistant Engineer $31.29 $32.85 $34.50 $36.22 Associate Engineer $34.41 $36.13 $37.94 $39.84 Planning Technician $25.64 $26.92 $28.26 $29.68 Assistant Planner $29.83 $31.32 $32.89 $34.53 Associate Planner $32.27 $33.88 $35.58 $37.36 Custodian $17.34 $18.20 $19.11 $20.07 Maintenance Worker $17.34 $18.20 $19.11 $20.07 Student Intern (seasonal)$15.53 FIVE CITIES FIRE AUTHORITY Office Assistant II $18.17 $18.71 $20.02 $21.03 Reserve Firefighter $15.00 $16.00 $17.00 HOURLY RATE Page 672 of 673 ITEM 11.b.: Attachment 6 – June 8, 2021 Staff Report and Attachments Attachment 6 is available as a link: https://www.arroyogrande.org/AgendaCenter/ViewFile/Item/11116?fileID=17257 Attachment 7 – May 10, 2022 Staff Report and Attachments Attachment 7 is available as links: https://pub-arroyogrande.escribemeetings.com/filestream.ashx?DocumentId=2555 https://pub-arroyogrande.escribemeetings.com/filestream.ashx?DocumentId=2556 https://pub-arroyogrande.escribemeetings.com/filestream.ashx?DocumentId=2557 Attachment 8 – April 26, 2022 Staff Report and Attachments Attachment 8 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 9 – May 24, 2022 Staff Report and Attachments Attachment 9 is available as links: https://pub-arroyogrande.escribemeetings.com/filestream.ashx?DocumentId=2814 https://pub-arroyogrande.escribemeetings.com/filestream.ashx?DocumentId=2815 https://pub-arroyogrande.escribemeetings.com/filestream.ashx?DocumentId=2816 Page 673 of 673