HomeMy WebLinkAbout12-03-2019 Agenda PacketTuesday, December 3, 2019
4:30 PM CLOSED SESSION Administration
Collaboration Space
990 Palm Street
San Luis Obispo Page 1
CALL TO ORDER:
ROLL CALL:
Mayor Heidi Harmon
Council Members Carlyn Christianson, Aaron Gomez, Erica A. Stewart,
Vice Mayor Andy Pease and Mayor Heidi Harmon
PUBLIC COMMENT ON CLOSED SESSION ITEMS
CLOSED SESSION
A.CONFERENCE WITH LEGAL COUNSEL - ANTICIPATED LITIGATION
Significant exposure to litigation pursuant to paragraph (2) of subdivision (d) of Section
54956.9: No. of potential cases: One.
A point has been reached where, in the opinion of the legislative body of the local agency on the
advice of its legal counsel, based on existing facts and circumstances, there is a significant
exposure to litigation against the local agency. The existing facts and circumstances exposing
the City to litigation include the following:
A letter has been received from Robert Goodman, Attorney at Law on behalf of his client
Jamie Gomez, asserting that the City of San Luis Obispo’s method of conducting elections
may violate the California Voting Rights Act.
Pursuant to California law, Mr. Goodman demands that the City Council adopt a resolution
within 45 days of receipt of the letter outlining its intention to transition from at-large to
district elections and specifying specific steps it will take to facilitate this transition. If the
City Council does not adopt a resolution to this effect within 45 days (December 28, 2019),
then Mr. Goodman asserts that legal action will be commenced in San Luis Obispo County
Superior Court to require the City of San Luis Obispo to institute district elections pursuant
to the California Voting Rights Act.
San Luis Obispo City Council Agenda December 3, 2019 Page 2
B.CONFERENCE REGARDING PROPERTY NEGOTIATIONS
Pursuant to Government Code §54956.8
Property: APN 002-436-005, APN 002-436-008, portions of
APN 002-436-013 (the " Adler Parcel"); and,
APN 002-436-018
Agency Negotiators: Derek Johnson, Christine Dietrick, Greg Hermann,
Charles Bell, Tim Bochum, Charlene Rosales
Negotiating Parties: County of San Luis Obispo, the City of San Luis Obispo,
and 1144 Higuera Investments LLC, 1166 Higuera Street LLC
Under Negotiation: Price and terms of payment
C.CONFERENCE WITH LABOR NEGOTIATORS
Pursuant to Government Code § 54957.6
Agency Negotiators: Monica Irons, Nickole Sutter, Rick Bolanos,
Derek Johnson, Christine Dietrick
Represented Employee
Organizations: San Luis Obispo City Employee’s Association (SLOCEA)
San Luis Obispo Police Officer’s Association (POA)
San Luis Obispo Police Staff Officer’s Association (SLOPSOA)
International Association of Firefighters Local 3523
Unrepresented Employees: Unrepresented Management Employees
Unrepresented Confidential Employees
Adjourn to the Regular City Council Meeting scheduled for Tuesday, December 3, 2019 at 6:00
p.m., in the Council Chamber, 990 Palm Street, San Luis Obispo.
Tuesday, December 3, 2019
6:00 PM REGULAR MEETING Council Chamber
990 Palm Street
San Luis Obispo Page 3
CALL TO ORDER: Mayor Heidi Harmon
ROLL CALL: Council Members Carlyn Christianson, Aaron Gomez, Erica A. Stewart,
Vice Mayor Andy Pease and Mayor Heidi Harmon
PLEDGE OF ALLEGIANCE: Council Member Aaron Gomez
PRESENTATIONS
1.CERTIFICATE OF RECOGNITION FOR OUTGOING VICE MAYOR PEASE
(HARMON – 5 MINUTES)
APPOINTMENTS
2.VICE MAYOR APPOINTMENT FOR 2020 (HARMON – 5 MINUTES)
Recommendation:
Appoint Council Member Aaron Gomez as Vice Mayor to serve a one-year term
commencing upon appointment.
PUBLIC COMMENT PERIOD FOR ITEMS NOT ON THE AGENDA
(not to exceed 15 minutes total)
The Council welcomes your input. You may address the Council by completing a speaker slip
and giving it to the City Clerk prior to the meeting. At this time, you may address the Council
on items that are not on the agenda. Time limit is three minutes. State law does not allow the
Council to discuss or take action on issues not on the agenda, except that members of the
Council or staff may briefly respond to statements made or questions posed by persons
exercising their public testimony rights (Gov. Code sec. 54954.2). Staff may be asked to
follow up on such items.
San Luis Obispo City Council Agenda December 3, 2019 Page 4
CONSENT AGENDA
Matters appearing on the Consent Calendar are expected to be non-controversial and will be
acted upon at one time. A member of the public may request the Council to pull an item for
discussion. Pulled items shall be heard at the close of the Consent Agenda unless a majority of
the Council chooses another time. The public may comment on any and all items on the
Consent Agenda within the three-minute time limit.
3.WAIVE READING IN FULL OF ALL RESOLUTIONS AND ORDINANCES
(PURRINGTON)
Recommendation:
Waive reading of all resolutions and ordinances as appropriate.
4.DRAFT MINUTES REVIEW - NOVEMBER 19, 2019 CITY COUNCIL MEETING
(PURRINGTON)
Recommendation:
Approve the minutes of the City Council meeting held on November 19, 2019.
5.ADJUSTMENTS TO SUPPLEMENTAL SALARY SCHEDULE AND POLICY AS A
RESULT OF MINIMUM WAGE INCREASES (IRONS / ROLTGEN)
Recommendation:
1.Adopt a Resolution entitled, “A Resolution of the City Council of the City of San Luis
Obispo, California, establishing and adopting a Supplemental Employee Salary Schedule
and superseding previous resolutions in conflict” modifying the Supplemental Employee
Salary Schedule as necessary to comply with California Fair Wage Act of 2016 requiring
a minimum wage of $13.00 per hour effective January 1, 2020; and
2.Adopt the revised Supplemental Employee Policy.
6.AN ORDINANCE TO REZONE PROPERTIES AT 609 & 633 PALM, 610, 614 & 630
MONTEREY, 970 & 972 NIPOMO (CODRON / STANWYCK / COHEN / BURDE)
Recommendation:
Adopt an Ordinance entitled, “An Ordinance of the City Council of the City of San Luis
Obispo, California, rezoning properties at 609 & 633 Palm, 610, 614 & 630 Monterey, 970
& 972 Nipomo Streets from Office with a Historic District Overlay (O-H) and Medium-
High Density Residential (R-3) to Downtown Commercial Zone with a Historic Overlay (C-
D-H) consistent with the Palm Nipomo Parking Structure Project with an Addendum to the
Certified Environmental Impact Report as represented in the Council Agenda Report and
attachments dated November 5, 2019 (RZ-0460-2019).”
San Luis Obispo City Council Agenda December 3, 2019 Page 5
7.REQUEST TO AUTHORIZE STAFF TO ADVERTISE A REQUEST FOR
PROPOSALS FOR CONTRACT WATER METER READING
(FLOYD / THOMPSON)
Recommendation:
Authorize staff to advertise a Request for Proposals (RFP) for contract meter reading and
authorize the City Manager to execute an agreement if the selected proposal is less than or
equal to $182,000 and satisfying any meet and confer obligations with represented
employees.
8.EQUIPMENT SURPLUS DESIGNATION AND AUTHORIZATION OF SALE
(FLOYD / THOMPSON)
Recommendation:
Authorize the designation and disposal of surplus items in accordance with the City’s
policies and procedures as prescribed in the Financial Management Manual Sections 405-L,
480-A, and 480-B.
9.HISTORIC SIGNIFICANCE DETERMINATION FOR A CONTRIBUTING LIST
PROPERTY AT 644 MOUNTAIN VIEW STREET (CODRON / OETZELL)
Recommendation:
Adopt a Resolution entitled, “A Resolution of the City Council of the City of San Luis
Obispo, California, removing the property at 644 Mountain View Street from the
Contributing Properties List of Historic Resources (644 Mountain View St, HIST-
0531-2019).”
STUDY SESSION ITEM
10.CLIMATE ACTION PLAN STUDY SESSION
(HERMANN / HILL / READ – 75 MINUTES)
Recommendation:
Review and discuss information on the Climate Action Plan Update and provide direction on
focus questions necessary to inform next steps.
San Luis Obispo City Council Agenda December 3, 2019 Page 6
PUBLIC HEARING AND BUSINESS ITEMS
11.RESIDENT FOCUS GROUP AND SURVEY RESULTS REGARDING FUNDING
PRIORITIES AND POTENTIAL REVENUE OPTIONS
(HERMANN / BETZ – 60 MINUTES)
Recommendation:
1.Receive a report on the results of two resident focus groups, a statistically relevant
survey of registered voters and a plan for continued public engagement and outreach;
and
2.Proceed with further public engagement on funding priorities for the City, including
renewing and amending the Local Revenue Measure (LRM) with ongoing community
oversight (Revenue Enhancement Oversight Commission); and
3.Provide an update to the Revenue Enhancement Oversight Commission and discuss
potential roles to support and participate in public engagement and outreach efforts.
12.CANNABIS BUSINESS PROGRAM AND REGULATION UPDATES
(HERMANN / ROSALES – 60 MINUTES)
Recommendation:
1.Receive an update on the City’s Cannabis Business Program; and
2.Adopt a Resolution entitled, “A Resolution of the City Council of the City of San Luis
Obispo, California, amending the City’s Master Fee Schedule with updated User and
Regulatory Fees for various Commercial Cannabis Business activities;” and
3.Adopt a Resolution entitled, “A Resolution of the City Council of the City of San Luis
Obispo, California, approving Cannabis Operator Permit Ranking Criteria and the
Annual Application Submittal Period (Code-1058-2017);” and
4.Introduce an Ordinance entitled, “An Ordinance of the City Council of the City of San
Luis Obispo, California, amending the Municipal Code Public Peace, Morals and
Welfare (Chapter 9.10) Regulations for Commercial Cannabis Business Businesses and
Personal Cultivation.”
LIAISON REPORTS AND COMMUNICATIONS
(Not to exceed 15 minutes)
Council Members report on conferences or other City activities. At this time, any Council
Member or the City Manager may ask a question for clarification, make an announcement, or
report briefly on his or her activities. In addition, subject to Council Policies and Procedures,
they may provide a reference to staff or other resources for factual information, request staff to
report back to the Council at a subsequent meeting concerning any matter, or take action to
direct staff to place a matter of business on a future agenda. (Gov. Code Sec. 54954.2)
San Luis Obispo City Council Agenda December 3, 2019 Page 7
ADJOURNMENT
The next Regular City Council Meeting has been rescheduled to January 14, 2020 at 5:00 p.m.
and 6:00 p.m., respectively, in the Council Hearing Room and Council Chamber, 990 Palm
Street, San Luis Obispo, California.
LISTENING ASSISTIVE DEVICES are available for the hearing impaired--please see City Clerk.
The City of San Luis Obispo wishes to make all of its public meet ings accessible to the public.
Upon request, this agenda will be made available in appropriate alternative formats to persons
with disabilities. Any person with a disability who requires a modification or accommodation
in order to participate in a meeting should direct such request to the City Clerk’s Office at
(805) 781-7100 at least 48 hours before the meeting, if possible. Telecommunications Device
for the Deaf (805) 781-7410.
City Council regular meetings are televised live on Charter Channel 20. Agenda related
writings or documents provided to the City Council are available for public inspection in the
City Clerk’s Office located at 990 Palm Street, San Luis Obispo, California during normal
business hours, and on the City’s website www.slocity.org. Persons with questions concerning
any agenda item may call the City Clerk’s Office at (805) 781-7100.
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Department Name: Administration
Cost Center: 1021
For Agenda of: December 3, 2019
Placement: Appointments
Estimated Time: 5 Minutes
FROM: Teresa Purrington, City Clerk
SUBJECT: VICE MAYOR APPOINTMENT FOR 2020
RECOMMENDATION
Appoint Council Member Aaron Gomez as Vice Mayor to serve a one-year term commencing
upon appointment.
DISCUSSION
Section 408 of the City’s Charter requires that the Council elect one of its members to serve in
the position of Vice Mayor.
Section 3.2 of the Council Policies and Procedures provides that the appointment of the Vice
Mayor shall be for a one-year term, that the appointment shall be made on a rotational basis, and
that the appointment shall go to the next senior member. This practice ensures that each Council
Member will have an opportunity to serve as Vice Mayor during his or her term.
Following current Council policy of rotating the Vice Mayor position, and consistent with
Council practice over the past ten years, Council Member Gomez is the next in line for the
opportunity to serve as Vice Mayor. The appointment of Vice Mayor for the prior ten years has
been as follows:
1. Council Member Carter 2010
2. Council Member Ashbaugh 2011
3. Council Member Carpenter 2012
4. Council Member Smith 2013
5. Council Member Christianson 2014
6. Council Member Ashbaugh 2015
7. Council Member Carpenter 2016
8. Council Member Rivoire 2017
9. Council Member Christianson 2018
10. Council Member Pease 2019
Looking to the future, the rotation indicates that Council Member Stewart will serve in 2021.
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Policy Context
As previously noted, this action follows current Council policy of rotating the Vice Mayor
position.
Public Engagement
There was no public engagement for this action as it is an administrative action. However, the
public has the opportunity to provide comment in writing prior to the meeting or as public
comment during the meeting.
ENVIRONMENTAL REVIEW
The California Environmental Quality Act does not apply to the recommended action in this
report, because the action does not constitute a “Project” under CEQA Guidelines Sec. 15378.
FISCAL IMPACT
Budgeted: N/A Budget Year: N/A
Funding Identified: N/A
Funding Sources
Total Budget
Available
Current Funding
Request
Remaining
Balance
Annual
Ongoing Cost
General Fund N/A
State
Federal
Fees
Other:
Total
There are no fiscal impacts associated with this recommendation, as this is an administrative
item.
ALTERNATIVES
Council could choose not to appoint Council Member Gomez as Vice Mayor; however, this is
not recommended as this would not follow the Council’s approved Policies and Procedures.
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San Luis Obispo Page 1
Tuesday, November 19, 2019
Regular Meeting of the City Council
CALL TO ORDER
A Regular Meeting of the San Luis Obispo City Council was called to order on Tuesday,
November 19, 2019 at 5:30 p.m. in the Council Hearing Room, located at 990 Palm Street, San
Luis Obispo, California, by Vice Mayor Andy Pease.
ROLL CALL
Council Members
Present: Council Members Carlyn Christianson, Aaron Gomez, Erica A. Stewart, and
Vice Mayor Andy Pease.
Absent: Mayor Heidi Harmon
City Staff
Present: Shelly Stanwyck, Assistant City Manager; Christine Dietrick, City Attorney; and
Teresa Purrington, City Clerk; were present at Roll Call. Other staff members
presented reports or responded to questions as indicated in the minutes.
PUBLIC COMMENT ON CLOSED SESSION ITEMS
None.
---End of Public Comment---
CLOSED SESSION
A. CONFERENCE WITH LEGAL COUNSEL – EXISTING LITIGATION
Paragraph (1) of subdivision (d) of Government Code § 54956.9; Name of case: Donald Clyde
Baer, an incompetent person by and through his Guardian ad Litem Jennifer L. Baer-Riedhart,
and Carolyn Baer, an incompetent person by and through her Guardian ad Litem Jennifer L.
Baer-Riedhart, v. City of San Luis Obispo; Carolyn Margaret Fergoda; and Does 1 through
100; San Luis Obispo Superior Court Case No. 18CV-0471.
ADJOURN AT 5:55 P.M. TO THE REGULAR MEETING OF TUESDAY, NOVEMBER
19, 2019 IN THE COUNCIL CHAMBER, 990 PALM STREET, SAN LUIS OBISPO,
CALIFORNIA
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San Luis Obispo City Council Minutes of November 19, 2019 Page 2
CALL TO ORDER
A Regular Meeting of the San Luis Obispo City Council was called to order on Tuesday,
November 19, 2019 at 6:00 p.m. in the Council Chamber, located at 990 Palm Street, San Luis
Obispo, California, by Vice Mayor Andy Pease.
ROLL CALL
Council Members
Present: Council Members Carlyn Christianson, Aaron Gomez, Erica A. Stewart, and Vice
Mayor Andy Pease.
Council Members
Absent: Mayor Heidi Harmon
City Staff
Present: Shelly Stanwyck, Assistant City Manager; Christine Dietrick, City Attorney; and
Teresa Purrington, City Clerk; were present at Roll Call. Other staff members
presented reports or responded to questions as indicated in the minutes.
PLEDGE OF ALLEGIANCE
Council Member Christianson led the Pledge of Allegiance.
CITY ATTORNEY REPORT ON CLOSED SESSION
City Attorney Dietrick stated that the Council met in Closed Session regarding one matter of
existing litigation in the matter of Baer-Riedhart, v. City of San Luis Obispo; Carolyn Margaret
Fergoda; and Does 1 through 100 there was no reportable action.
PRESENTATIONS
1. INTRODUCTION OF ADMINISTRATIVE ANALYST FOR UTILITIES - KELLY
MATTOS
Utilities Director Aaron Floyd introduced Kelly Mattos, the new Administrative Analyst for
the Utilities Department.
APPOINTMENTS
2. APPOINTMENT TO THE ACTIVE TRANSPORTATION COMMITTEE
City Clerk Teresa Purrington presented an overview of the report.
Public Comments:
None
---End of Public Comments---
ACTION: MOTION BY COUNCIL MEMBER CHRISTIANSON, SECOND BY
COUNCIL MEMBER STEWART, CARRIED 4-0-1 (MAYOR HARMON ABSENT) to
approve the appointment of Donnette Donaway to the Active Transportation Committee.
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PUBLIC COMMENT ON ITEMS NOT ON THE AGENDA
Kris Roudebush
Susan McMiller
Alec Flatos
Kylie Clark
---End of Public Comment---
CONSENT AGENDA
Item #8 pulled from Consent by Council Member Christianson
ACTION: MOTION BY COUNCIL MEMBER CHRISTIANSON, SECOND BY COUNCIL
MEMBER GOMES, CARRIED 4-0-1 (MAYOR HARMON ABSENT) to approve Consent
Calendar Items 3 thru 7 and 9 thru 12.
PUBLIC COMMENT
Item 5 - Kylee Clark
3. WAIVE READING IN FULL OF ALL RESOLUTIONS AND ORDINANCES
CARRIED 4-0-1 (MAYOR HARMON ABSENT), to waive reading of all resolutions and
ordinances as appropriate.
4. DRAFT MINUTES REVIEW - NOVEMBER 12, 2019 CITY COUNCIL MEETING
CARRIED 4-0-1 (MAYOR HARMON ABSENT), to approve the minutes of the City Council
meeting held on November 12, 2019.
5. CONSIDERATION OF THE HUMAN RELATIONS COMMISSION’S
RECOMMENDED PRIORITIES FOR THE 2020-21 COMMUNITY
DEVELOPMENT BLOCK GRANT AND GRANTS-IN-AID PROGRAMS
CARRIED 4-0-1 (MAYOR HARMON ABSENT) to approve the Community Development
Block Grant and Grants-in-Aid funding priorities for the 2020-21 funding year, as
recommended by the Human Relations Commission.
6. 2019-20 FIRST QUARTER FINANCIAL REPORT
CARRIED 4-0-1 (MAYOR HARMON ABSENT) to receive an update on the status of the
current financial position, Major City Goals, and CIP projects for the first quarter of Fiscal
Year 2019-20. The City’s Financial Reporting and Budget Administration policy for interim
reporting requires that staff prepare and issue a formal quarterly report to the Council.
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7. AMENDMENT #2 TO THE CURRENT AGREEMENT FOR JOINT
CONSTRUCTION AND FINANCING COSTS FOR AN ANIMAL SERVICES
FACILITY
CARRIED 4-0-1 (MAYOR HARMON ABSENT) to authorize the City Manager to approve
Amendment #2 to the Agreement for Allocation of Construction and Financing Costs for an
Animal Services Shelter.
8. HIGUERA STREET SIDEWALK REPAIR, SPECIFICATION NO. 91320
Council Member Gomez recused himself as his business is within 500 feet of the property.
CARRIED 3-0-1-1 (COUNCIL MEMBER GOMEZ RECUSED AND MAYOR HARMON
ABSENT) to:
1. Approve construction documents for “Higuera Street Sidewalk Repair, Specification No.
91320”; and
2. Authorize Staff to advertise for bids and authorize the City Manager to award the
construction contract, if the lowest responsible bid is within the Engineer’s estimate of
$295,000.
3. And, directing staff to send out the Notice of Correction to the property owner, requiring
the owner to start the sidewalk replacement work and pursue diligently until complete. If
the Property Owner fails to start this work within two weeks, the City could then complete
the necessary work. Upon completion of this work, the final cost of the work would be
presented to City Council in a Public Hearing in which City Council would make the final
determination on whether to lien the property to eventually obtain reimbursement for this
cost.
9. MARSH STREET BRIDGE REPLACEMENT EASEMENTS, SPECIFICATION NO.
90480
CARRIED 4-0-1 (MAYOR HARMON ABSENT,) to:
1. Authorize the City Manager to execute an extension agreement with 1042 Pacific Street,
a California General Partnership, for a temporary construction easement at 1042 Pacific
Street; and
2. Authorize the City Manager to execute an extension agreement with Charles Zanoli,
Surviving Trustee, for a temporary construction easement at 1043 Marsh St.; and
3. Authorize the City Manager to execute an extension agreement with the Maino Family
Trusts for temporary construction easements at 1020 & 1080 Marsh St.
10. INTEGRATED REGIONAL WATER MANAGEMENT (IRWM) GRANT FUNDING
FOR THE WATER RESOURCE RECOVERY FACILITY
CARRIED 4-0-1 (MAYOR HARMON ABSENT), to adopt a Resolution No. 11061 (2019
Series) entitled, “A Resolution of the City Council of the City of San Luis Obispo, California,
accepting a grant from the San Luis Obispo County Flood Control and Water Conservation
District” in the amount of $1,314,530 for the construction of the Membrane Bioreactor and
Ultraviolet Disinfection processes for the Water Resource Recovery Facility project.
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11. AUTHORIZE 2019 AIR POLLUTION CONTROL DISTRICT GRANT
APPLICATION TO SUPPORT PROCUREMENT OF INFRASTRUCTURE NEEDED
TO TRANSITION TO ZERO EMISSION TRANSIT VEHICLES
CARRIED 4-0-1 (MAYOR HARMON ABSENT) to:
1. Authorize the Public Works Director, or their designee, to execute and file grant
applications with the Air Pollution Control District (APCD) for transit projects and to
execute any related grant applications, certifications, assurances, forms, agreements, and
associated documents on behalf of the City; and
2. Approve a Transit Budget Amendment to increase the budget reflecting these grant funds,
if awarded.
12. COUNCIL CHAMBER AUDIO/VIDEO REPLACEMENT PROJECT,
SPECIFICATION NO. 100120
CARRIED 4-0-1 (MAYOR HARMON ABSENT) to increase the amount the City Manager
is authorized to award from $200,000 to $230,000 for a contract if the lowest responsible bid
is within the approved project budget of $230,000 from the City’s Share of the Public,
Educational, and Government (PEG) funds.
PUBLIC HEARING ITEMS AND BUSINESS ITEMS
13. REVIEW OF THE PROPOSED ANNEXATION OF APPROXIMATELY 39 ACRES
OF PROPERTY (30 PARCELS) ALONG FIERO LANE AND CLARION COURT AND
ASSOCIATED INFRASTRUCTURE IMPROVEMENTS, INCLUDING APPROVAL
OF THE SECOND AMENDMENT TO THE MEMORANDUM OF AGREEMENT
REGARDING THE PROPOSED ANNEXATION, AND ADOPTION OF AN INITIAL
STUDY/MITIGATED NEGATIVE DECLARATION TIERED FROM THE FINAL
PROGRAM ENVIRONMENTAL IMPACT REPORT FOR THE AIRPORT AREA
AND MARGARITA AREA SPECIFIC PLANS AND RELATED FACILITIES
MASTER PLANS (SCH#2000051062) (PL-ANNX-1166-2015; EID-0626-2019
Council Members Gomez noted his Ex Parte Communications regarding the project. Council
Members Stewart, and Christianson and Vice Mayor Pease reported having no Ex Parte
Communications.
Community Development Director Michael Codron, Senior Planner Shawna Scott and
Contract Planner Dave Watson provided an in-depth staff report and responded to Council
questions.
Rob Miller, Wallace Group, indicated that they support staff’s recommendation and is
available for questions.
Public Comments:
Matt Quaglino
Carol Florence
---End of Public Comment---
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ACTION: MOTION BY COUNCIL MEMBER CHRISTIANSON, SECOND BY
COUNCIL MEMBER GOMEZ, CARRIED 4-0-1 (MAYOR HARMON ABSENT) to adopt
Resolution No. 11062 (2019 Series) entitled “A Resolution of the City Council of the City of
San Luis Obispo, California, approving application for the Annexation of the Fiero Lane and
Clarion Court Properties (Fiero Lane Water Company, FLWC) to the City of San Luis Obispo
and the associated second amendment to the Memorandum of Agreement, with Adoption of
an Initial Study/Mitigated Negative Declaration (Multiple Properties, 850 Fiero Lane, Primary;
PL-ANNX-1166-2015, EID-0626-2019)” to:
1. Approve and authorize the Mayor to execute the Second Amendment to the Memorandum
of Agreement for the Annexation of the Fiero Lane/Clarion Court area, which incorporates
conditions of annexation as recommended by the Planning Commission; and
2. Approve the filing of an application and request for San Luis Obispo Local Agency
Formation Commission (LAFCo) to initiate proceedings for annexation of the Fiero Lane-
Clarion Court area; and
3. Direct the Community Development Director to process the application; and
4. Authorize City Manager to execute documents in a form approved by the City Attorney
related to the annexation of the subject lands to the City of San Luis Obispo; and
5. Authorize the City Manager to initiate tax negotiations with the County of San Luis
Obispo; and
6. Adopt the associated Initial Study / Mitigated Negative Declaration for the annexation,
which tiers off the certified Final Environmental Impact Report for the Airport Area and
Margarita Area Specific Plans and Related Facilities Master Plans (SCH# 2000051062).
14. WATER ENERGY EFFICIENCY PROJECT
Utilities Director Aaron Floyd and Utilities Deputy Director of Water Mychal Boerman
please present the report
Public Comments:
None
---End of Public Comment---
ACTION: MOTION BY COUNCIL MEMBER CHRISTIANSON, SECOND BY
COUNCIL MEMBER STEWART, CARRIED 4-0-1 (MAYOR HARMON ABSENT) to:
1. Receive the Water Energy Efficiency Project Investment Grade Audit.
2. Authorize the City Manager to execute a Work Order, upon approval of the City Attorney
as to form, to enter into agreement with PG&E for implementation of the Water Energy
Efficiency Project (Project) at a not to exceed cost of $13,999,644.
3. Approve Resolution No. 11063 (2019 Series) entitled “A Resolution of the City Council
of the City of San Luis Obispo, California, authorizing use of Water Fund unreserved
working capital for the Water Energy Efficiency Project” to provide adequate cash flow
when considered necessary for Project implementation and authorize the Finance Director
to execute any and all certificates, contracts, and other documents necessary to secure
project financing.
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San Luis Obispo City Council Minutes of November 19, 2019 Page 7
COUNCIL COMMUNICATIONS AND LIAISON REPORTS
Council Member Christianson attended the Transitions Mental Health and Housing Authority of
San Luis Obispo grand opening of the Bishop Street Studios project.
ADJOURNMENT
The meeting was adjourned at 7:23p.m. The next Regular City Council Meeting is scheduled for
Tuesday, December 3, 2019 at 4:30 and 6:00 p.m., in the Council Chamber, 990 Palm Street, San
Luis Obispo, California.
__________________________
Teresa Purrington
City Clerk
APPROVED BY COUNCIL: XX/XX/2019
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Department Name: Human Resources
Cost Center: 3001
For Agenda of: December 3, 2019
Placement: Consent
Estimated Time: N/A
FROM: Monica Irons, Human Resources Director
Prepared By: Brittani Roltgen, Human Resources Analyst
SUBJECT: ADJUSTMENTS TO SUPPLEMENTAL SALARY SCHEDULE AND POLICY
AS A RESULT OF MINIMUM WAGE INCREASES
RECOMMENDATION
1. Adopt a Resolution modifying the Supplemental Employee Salary Schedule as necessary to
comply with California Fair Wage Act of 2016 requiring a minimum wage of $13.00 per
hour effective January 1, 2020 (Attachment A & B); and
2. Adopt the revised Supplemental Employee Policy (Attachment C).
DISCUSSION
A qualified supplemental, or temporary, work force is instrumental to the City of San Luis
Obispo’s ability to provide consistent services to the community by adjusting more easily and
quickly to workload fluctuations, unexpected vacancies, leaves of absence, or demands resulting
from limited-term projects, seasonal, or peak periods. A supplemental work force also allows for
programs that would otherwise be difficult to staff due to the intermittent, seasonal, or non-
traditional work hours (e.g. early mornings, weekends, evenings, etc.). For example, the City’s
Parks and Recreation Department employs over 200 supplemental, part-time (less than 30 hours
per week on average) employees at any given time. While many of these employees are seasonal
(working only 3-5 months), they sustain programs and services important to the community;
providing before and after school care, summer children’s camps, ensuring pool safety, special
events, senior programs, and maintenance of the golf course and open space.
Supplemental employees are used throughout all City departments and in some cases, the City
has experienced increasing difficulty recruiting and retaining qualified candidates. In particular,
supplemental positions that require certifications or State licenses such as childcare teachers and
lifeguards have been particularly challenging to fill during the past few years, causing staff to
take interim actions to ensure the continuance of these programs. These interim actions have
included reassigning full-time staff temporarily to cover supplemental staff shifts and starting
supplemental employees with certifications or licenses at higher than normal steps in the salary
range.
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Item 5
Salary Schedule Reflects Minimum Wage Increase
During the first two years of the Fair Wage Act of 2016’s impacts, the City’s response was to
eliminate supplemental salary ranges or steps within ranges that are below minimum wage. The
effect of this approach is that employees with less experience or qualifications, earn the same as
employees who have greater experience with the City. This creates a condition referred to as
“compaction” which describes a lack of differentiation between more and less seasoned or
experienced employees. That, combined with the fact that many of the supplemental positions at
the City not only require certifications, but also come with a level of responsibility (e.g. caring
for a child’s safety and well-being, rescuing a swimmer in distress, etc.) that other part-time or
seasonal positions (e.g. retail clerks, hospitality, food servers, etc.) do not require, is resulting in
recruitment and retention challenges. Therefore, as staff analyzed and proposed necessary
Supplemental Salary Range adjustments to comply with the January 1, 2020 minimum wage
increase to $13 per hour, how to alleviate compaction, reduce turnover, encourage retention, and
improve the City’s ability to recruit was considered. A change to the general structure of the
Supplemental Salary Ranges was adopted last year to alleviate recruitment and retention
challenges. Instead of a 5-step salary range with an increase of approximately 5% between steps,
a 9-step model with an increase of approximately 2.5% between steps was adopted. Staff has
been monitoring recruitment and retention results with the new model and found that it has
addressed many identified issues.
However, staff in Aquatics and Youth Services continue to experience recruitment and retention
challenges at all levels of supplemental staffing. The impacts of these challenges have become
more pronounced, causing regular, full-time staff at all levels of the department (with the
exception of the Director) to backfill when there are not enough supplemental staff to adequately
staff the pool and childcare services. In the past two months Aquatics supervisory staff have
filled 97 shifts, or nearly 300 hours of time they were not able to assign to lifeguards. There were
also three instances where the entire pool had to be closed due to lack of staffing, and seven
instances where only half of the pool could be open due to lack of staffing. At this point, no
childcare programs have had to be reduced, but regular, full-time Youth Services coordinators
and supervisory staff has had to constantly be called in to backfill for the lack of staffing, as well
as pull qualified staff from other programs (including Aquatics) to fulfill minimum staffing
requirements in Youth Services programs. Since July 1, 2019, over 800 hours of administrative
and supervisory staff time has been spent recruiting, interviewing, onboarding, training, and
backfilling for these staff vacancies.
While Human Resources and Parks and Recreation staff does not believe compensation is the
entire reason these positions are hard to fill, it has been determined, by looking at recruitment
and turnover and comparison wage data, to be a significant factor. Additionally, supplemental
salary ranges were looked at across the organization, and adjustments were made to maintain
internal equity among supplemental positions, as well as to address compaction. About forty
percent of classifications were provided a $0.40 - $1.00 increase as a result of minimum wage,
and about eight percent were given a $0.90-$1.50 increase as a result of compaction. The rest of
the classifications were not provided an increase, as they are higher level, single-classification
supplemental positions that were not analyzed to be impacted by minimum wage and were not
impacted by compaction as they are not a part of a career ladder. Therefore, staff is proposing
adjustments in excess of what is legally required to maintain in compliance with the Fair Wage
Act of 2016, and associated compaction adjustments.
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Item 5
In addition to the proposed increases, staff is looking into non-monetary options to further
improve recruitment and retention conditions., such as restructuring job requirements, modifying
recruitment practices to provide a sense of urgency in applying, partnering with Cuesta College
for potential job training, and promoting established career ladders in these areas. One simple,
cost effective modification staff is proposing along with the minimum wage adjustments, is
additional sick leave for Limited Benefit Employees as reflected in the revised Supplemental
Employee Policy (Attachment C). Limited Benefits Employees typically work between 30 and
40 hours per week and thus, being able to earn and use sick leave commensurate with full -time
employment makes sense and addresses one concern expressed by employees leaving the City;
especially give Limited Benefits Employees are frequently working in close contact with
children or seniors in the programs they support.
ENVIRONMENTAL REVIEW
The California Environmental Quality Act does not apply to the recommended action in this
report, because the action does not constitute a “Project” under CEQA Guidelines Sec. 15378.
FISCAL IMPACT
Budgeted: Yes Budget Year: 2020
Funding Identified: Yes
Fiscal Analysis:
Funding Sources Current FY Cost
Annualized
On-going Cost
Total Project
Cost
General Fund $40,000
State
Federal
Fees
Other:
Total $40,000
The increase in minimum wage in January 2020 was anticipated, thus funds in the amount of
$79,000 were set aside in the 2019-20 budget. The fiscal impact of adjusting those employees
currently earning less than the anticipated 2020 minimum wage, address compaction issues, and
address recruitment and retention issues is estimated to be $10,000 for fiscal year 2019-20. In
addition, adjustments made to address recruitment and retention issues are estimated to be
$30,000 for the remainder of the fiscal year. In total, both of these increases are less than the
total anticipated amount. This differential can be attributed to including some of the forecasted
funds in the original budget. In previous fiscal years, the Fiscal Officers budgeted supplemental
staff at the bottom of the salary range and did not account for step increases during the year.
However, with the change in policy last year allowing supplemental staff to attain step increases
more frequently, Fiscal Officers began projecting the increases, as well as budgeting
supplemental staff at their current pay rate. These funds were set aside in the 2019-20 budget in a
contingency fund and will be distributed to departments accordingly.
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Item 5
ALTERNATIVES
1. Do not adopt the 2020 Recommended Supplemental Salary Schedule. This is not advised as
it will likely cause continued recruitment and retention issues, including potential negative
impacts to the community such as shorter pool hours and fewer childcare services.
2. Do not adopt the 2020 Minimum Wage Compliant Supplemental Employee Salary Schedule.
This is not advised as it would put the City in a position of being non-compliant with Federal
law.
Attachments:
a - Draft Resolution
b - Supplemental Salary Schedule 12-26-2019
c - Revised Supplemental Employee Policy
Packet Page 14
Item 5
R ______
RESOLUTION NO. ________ (2019 Series)
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS
OBISPO, CALIFORNIA, ESTABLISHING AND ADOPTING A
SUPPLEMENTAL EMPLOYEE SALARY SCHEDULE AND
SUPERSEDING PREVIOUS RESOLUTIONS IN CONFLICT
WHEREAS, the California Fair Wages Act of 2016 requires periodic adjustments in the
state minimum wage; and
WHEREAS, the City of San Luis Obispo City Council has the exclusive authority to fix
the salaries and compensation of local officials and employees pursuant San Luis Obispo Charter
Section 711; and
WHEREAS, the City understands a qualified supplemental work force is instrumental to
its ability to provide consistent high-quality services and programs to the community; and
NOW, THEREFORE, BE IT RESOLVED, by the Council of the City of San Luis Obispo
as follows:
SECTION 1. The Supplemental Employee Salary Schedule attached hereto as Exhibit “A”
is hereby adopted.
SECTION 2. The Revised Supplemental Employee Policy attached hereto as Exhibit “B” is
hereby amended.
SECTION 3. All prior resolutions or policies governing those matters within the scope of
Exhibit A and B, as adopted and amended herein respectively, are hereby superseded and replaced
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Item 5
Resolution No. _____ (2019 Series) Page 2
R ______
SECTION 4. The City Council delegates authority to the Director of Finance make the
appropriate adjustments to accounts to reflect the compensation changes effective December 26,
2019.
.
Upon motion of _______________________, seconded by ___________________, and on the
following vote:
AYES:
NOES:
ABSENT:
The foregoing resolution was adopted this _______ day of ________________ 2019.
___________________________________
Mayor Heidi Harmon
ATTEST:
__________________________________
Teresa Purrington
City Clerk
APPROVED AS TO FORM:
__________________________________
J. Christine Dietrick
City Attorney
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City
of San Luis Obispo, California, this __________ day of _______________________, _________.
____________________________________
Teresa Purrington
City Clerk
Packet Page 16
Item 5
Supplemental Employee Salary Schedule
Classification Class Schedule Step 1 Step 2 Step 3 Step 4 Step 5 Step 6 Step 7 Step 8 Step 9
Accounting Assistant I 9132 918 18.11$ 18.46$ 18.81$ 19.37$ 19.92$ 20.40$ 20.87$ 21.39$ 21.91$
Administrative Aide I 9172 908 14.61$ 14.97$ 15.33$ 15.68$ 16.07$ 16.46$ 16.78$ 17.25$ 17.68$
Administrative Aide II 9371 916 17.25$ 17.68$ 18.11$ 18.54$ 18.97$ 19.45$ 19.92$ 20.40$ 20.87$
Administrative Specialist 9472 913 16.07$ 16.46$ 16.86$ 17.25$ 17.68$ 18.11$ 18.54$ 18.97$ 19.45$
Adult Sports Official 9265 912 15.68$ 16.07$ 16.46$ 16.86$ 17.25$ 17.68$ 18.11$ 18.46$ 18.81$
Aquatics Specialist*9461 916 17.25$ 17.68$ 18.11$ 18.54$ 18.97$ 19.45$ 19.92$ 20.40$ 20.87$
Associate Planner 9255 946 33.74$ 35.51$ 37.39$ 39.35$ 41.43$
Childcare Aide Emergency Sub Afternoon*91615 970 17.01$ 17.41$ 17.66$ 17.81$ 18.26$ 18.71$ 19.16$ 19.60$ 20.09$
Childcare Aide Emergency Sub Morning*91619 971 20.42$ 20.90$ 21.19$ 21.38$ 21.92$ 22.46$ 22.99$ 23.52$ 24.11$
Childcare Aide*9161 902 13.61$ 13.93$ 14.13$ 14.25$ 14.61$ 14.97$ 15.33$ 15.68$ 16.07$
Childcare Teacher Emergency Sub Afternoon*92625 972 19.60$ 20.09$ 20.58$ 21.07$ 21.56$ 22.10$ 22.64$ 23.08$ 23.51$
Childcare Teacher Emergency Sub Morning*92629 973 23.52$ 24.11$ 24.69$ 25.28$ 25.88$ 26.52$ 27.17$ 27.69$ 28.22$
Childcare Teacher*9262 912 15.68$ 16.07$ 16.46$ 16.86$ 17.25$ 17.68$ 18.11$ 18.46$ 18.81$
Commissioner 9861 990 75.00$
Community Services Specialist 9462 913 16.07$ 16.46$ 16.86$ 17.25$ 17.68$ 18.11$ 18.54$ 18.97$ 19.45$
Development Review Arborist 9288 932 25.25$ 25.88$ 26.51$ 27.15$ 27.78$ 28.47$ 29.16$ 29.73$ 30.30$
Engineering Consultant 9332 980 50.00$ 51.56$ 55.00$ 65.00$ 75.00$
Facilities Aide Farmer's Market 9292 912 15.68$ 16.07$ 16.46$ 16.86$ 17.25$ 17.68$ 18.11$ 18.46$ 18.81$
Facilities Aide Pool 9293 912 15.68$ 16.07$ 16.46$ 16.86$ 17.25$ 17.68$ 18.11$ 18.46$ 18.81$
Facilities Assistant 9264 904 14.00$ 14.13$ 14.25$ 14.61$ 14.97$ 15.33$ 15.68$ 16.07$ 16.46$
Facilities Specialist 9463 913 16.07$ 16.46$ 16.86$ 17.25$ 17.68$ 18.11$ 18.54$ 18.97$ 19.45$
Facility Host 9162 900 13.00$ 13.31$ 13.61$ 13.93$ 14.25$ 14.61$ 14.97$ 15.33$ 15.68$
Fire Inspector 9253 932 25.25$ 25.88$ 26.51$ 27.15$ 27.78$ 28.47$ 29.16$ 29.73$ 30.30$
Fire Intern 9151 902 13.61$ 13.93$ 14.13$ 14.25$ 14.61$ 14.97$ 15.33$ 15.68$ 16.07$
Flood Control Technician 9287 920 18.97$ 19.45$ 19.92$ 20.40$ 20.87$ 21.39$ 21.91$ 22.43$ 22.95$
GIS Technician 9231 920 18.97$ 19.45$ 19.92$ 20.40$ 20.87$ 21.39$ 21.91$ 22.43$ 22.95$
Golf Maintenance Assistant*9291 906 14.25$ 14.61$ 14.97$ 15.33$ 15.68$ 16.07$ 16.46$ 16.78$ 17.10$
Hazardous Materials Team Business Manager 9651 996 28.00$ 29.00$ 30.00$
Head Childcare Teacher Emergency Sub Afternoon*93605 974 20.09$ 20.58$ 21.07$ 21.56$ 22.10$ 22.64$ 23.18$ 23.71$ 24.31$
Head Childcare Teacher Emergency Sub Morning*93609 975 24.69$ 25.28$ 25.88$ 26.52$ 27.17$ 27.81$ 28.46$ 29.17$ 29.88$
Head Childcare Teacher*9360 914 16.46$ 16.86$ 17.25$ 17.68$ 18.11$ 18.54$ 18.97$ 19.45$ 19.92$
Head Lifeguard*9351 912 15.68$ 16.07$ 16.46$ 16.86$ 17.25$ 17.68$ 18.11$ 18.46$ 18.81$
Hydrant Maintenance Worker 9191 902 13.61$ 13.93$ 14.13$ 14.25$ 14.61$ 14.97$ 15.33$ 15.68$ 16.07$
Intern I 9111 900 13.00$ 13.31$ 13.61$ 13.93$ 14.25$ 14.61$ 14.97$ 15.33$ 15.68$
Intern II 9211 904 14.00$ 14.13$ 14.25$ 14.61$ 14.97$ 15.33$ 15.68$ 16.07$ 16.46$
Intern III 9311 910 15.00$ 15.34$ 15.68$ 16.07$ 16.46$ 16.86$ 17.25$ 17.68$ 18.11$
IT Assistant Help Desk 9232 920 18.97$ 19.45$ 19.92$ 20.40$ 20.87$ 21.39$ 21.91$ 22.43$ 22.95$
Landscape Inspector 9282 924 20.87$ 21.39$ 21.91$ 22.43$ 22.95$ 23.53$ 24.10$ 24.57$ 25.04$
Lead Parking Attendant 9471 908 14.61$ 14.97$ 15.33$ 15.68$ 16.07$ 16.46$ 16.78$ 17.25$ 17.68$
Legal Assistant I 9131 916 17.25$ 17.68$ 18.11$ 18.54$ 18.97$ 19.45$ 19.92$ 20.40$ 20.87$
Legal Assistant II 9233 920 18.97$ 19.45$ 19.92$ 20.40$ 20.87$ 21.39$ 21.91$ 22.43$ 22.95$
Lifeguard Dock Pay*92519 900 13.00$
Lifeguard*9251 906 14.25$ 14.61$ 14.97$ 15.33$ 15.68$ 16.07$ 16.46$ 16.78$ 17.10$
Mutual Aid GS 11-15 9353 995 36.84$ 44.16$ 52.51$ 62.05$ 72.99$
Key
Blue = P&R Positions
* = Classifications that work with children (AB 218
doesn't apply)
B - SUPPLEMENTAL SALARY SCHEDULE 12-26-2019
Packet Page 17
Item 5
Mutual Aid GS 1-5 9153 993 13.04$ 14.20$ 16.00$ 17.98$ 20.10$
Mutual Aid GS 6-10 9254 994 22.40$ 24.90$ 27.57$ 30.45$ 33.54$
Parking Booth Attendant 9271 902 13.61$ 13.93$ 14.13$ 14.25$ 14.61$ 14.97$ 15.33$ 15.68$ 16.07$
Parking Enforcement Officer 9266 920 18.97$ 19.45$ 19.92$ 20.40$ 20.87$ 21.39$ 21.91$ 22.43$ 22.95$
Parking Meter Repair Worker 9286 924 20.87$ 21.39$ 21.91$ 22.43$ 22.95$ 23.53$ 24.10$ 24.57$ 25.04$
Parks Maintenance Aide I 9182 908 14.61$ 14.97$ 15.33$ 15.68$ 16.07$ 16.46$ 16.78$ 17.25$ 17.68$
Parks Maintenance Aide II 9281 916 17.25$ 17.68$ 18.11$ 18.54$ 18.97$ 19.45$ 19.92$ 20.40$ 20.87$
Police Operations Support Specialist 9212 912 15.68$ 16.07$ 16.46$ 16.86$ 17.25$ 17.68$ 18.11$ 18.46$ 18.81$
Ranger Services Specialist*9466 914 16.46$ 16.86$ 17.25$ 17.68$ 18.11$ 18.54$ 18.97$ 19.45$ 19.92$
Ranger Services Worker 9181 904 14.00$ 14.13$ 14.25$ 14.61$ 14.97$ 15.33$ 15.68$ 16.07$ 16.46$
Rec Cashier*9171 900 13.00$ 13.31$ 13.61$ 13.93$ 14.25$ 14.61$ 14.97$ 15.33$ 15.68$
Recording Secretary 9272 908 14.61$ 14.97$ 15.33$ 15.68$ 16.07$ 16.46$ 16.78$ 17.25$ 17.68$
Senior Administrative Analyst 9333 948 33.99$ 36.37$ 38.31$ 40.33$ 42.45$
SNAP 9352 912 15.68$ 16.07$ 16.46$ 16.86$ 17.25$ 17.68$ 18.11$ 18.46$ 18.81$
Special Swim Instructor*9369 916 17.25$ 17.68$ 18.11$ 18.54$ 18.97$ 19.45$ 19.92$ 20.40$ 20.87$
Swim Instructor*9263 912 15.68$ 16.07$ 16.46$ 16.86$ 17.25$ 17.68$ 18.11$ 18.46$ 18.81$
Transportation Planner Engineer I 9133 940 30.55$ 31.32$ 32.08$ 32.85$ 33.61$ 34.45$ 35.29$ 36.13$ 36.97$
Tree Climber Assistant 9192 908 14.61$ 14.97$ 15.33$ 15.68$ 16.07$ 16.46$ 16.78$ 17.25$ 17.68$
WasteWater Collection Operator 9283 924 20.87$ 21.39$ 21.91$ 22.43$ 22.95$ 23.53$ 24.10$ 24.57$ 25.04$
Water Quality Lab Aide 9141 908 14.61$ 14.97$ 15.33$ 15.68$ 16.07$ 16.46$ 16.78$ 17.25$ 17.68$
Water Resources Technician 9241 936 28.14$ 29.61$ 31.18$ 32.81$ 34.54$
WRRF Operator 9285 928 22.95$ 23.53$ 24.10$ 24.68$ 25.25$ 25.88$ 26.51$ 27.15$ 27.78$
Youth Services Specialist Emergency Morning*94649 976 25.88$ 26.52$ 27.17$ 27.81$ 28.46$ 29.17$ 29.88$ 30.59$ 31.31$
Youth Services Specialist*9464 916 17.25$ 17.68$ 18.11$ 18.54$ 18.97$ 19.45$ 19.92$ 20.40$ 20.87$
Youth Sports Official*9261 900 13.00$ 13.31$ 13.61$ 13.93$ 14.25$ 14.61$ 14.97$ 15.33$ 15.68$
RETIRED ANNUITANTS:Class Schedule Step 1 Step 2 Step 3 Step 4 Step 5
IT Assistant PERS Retiree 9931 962 24.10$ 25.25$ 26.51$ 27.78$ 28.78$
Parking Coordinator PERS Retiree 9971 964 25.67$ 26.70$ 28.10$ 29.58$ 31.13$
Parking Enforcement Officer PERS Retiree 9961 960 21.91$ 22.95$ 24.10$ 25.25$ 26.51$
Supervising Adminsitrative Assistant PERS Retiree 9921 964 25.36$ 26.51$ 27.78$ 29.16$ 31.13$
Temp Senior Civil Engineer PERS Retiree 9932 966 39.33$ 42.93$ 44.53$ 46.76$ 49.13$
Effective 12/26/2019
B - SUPPLEMENTAL SALARY SCHEDULE 12-26-2019
Packet Page 18
Item 5
Supplemental Employee Policy
GENERAL POLICY
It is the policy of the City of San Luis Obispo to hire supplemental employees to meet
temporary needs of the City that result from emergencies, special projects of a short-
term nature, extra-help, seasonal work, un-programmed surges in workload, occasional
hours for an ongoing need, and to provide substitutes for or support to regular
employees to maintain optimal service levels.
Supplemental Employees shall be compensated on an hourly basis, supervised by
regular City staff (exceptions may be made in the Parks and Recreation Department)
and perform specific tasks as defined by the City.
Authorization for all supplemental employee hiring except in the Parks and Recreation
Department shall be approved in advance by both the department head or designee
and the Department of Human Resources via an HR Requisition Form. Compensation
for supplemental employees is to be in alignment with the City’s supplemental salary
schedule.
ADMINISTRATION OF SUPPLEMENTAL EMPLOYEE POLICY
The Department of Human Resources shall be responsible for coordinating the
recruitment and selection of supplemental employees and administering the City’s
Supplemental Employee Policy. The Parks and Recreation Department shall be
responsible for coordinating their department’s recruitment and selection of
supplemental employees in accordance with this policy. Department heads and their
supervisory personnel are responsible for implementing the Supplemental Employee
Policy in their respective departments.
POSITION ANALYSIS
Seasonal Worker: Hired to work on a part or full-time basis during a season to respond
to an increase in demand.
Occasional: Hired to fill a temporary need over a specific period, such as backfilling a
Full Time Equivalent (FTE) that is out on leave/vacation/worker’s comp, or to help with a
special project. Hired as needed to accommodate periods of increased workloads.
Irregular Schedule: Hired to respond to an increase in demand for a position that is not
an FTE. Number of hours worked in a fiscal year vary.
Limited Benefit Employee: Some Parks and Recreation supplemental employees are
eligible for time off and additional sick leave benefits. These employees receive paid
C - REVISED SUPPLEMENTAL EMAPLOYEE POLICY
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Item 5
Supplemental Employee Policy
Revised December 2018 Page 2 of 11
time off in the amount of 3% hours worked, up to a maximum accrual of 40 hours, and
accrue sick leave with pay at the rate of twelve days per year of continuous service..
Supplemental Employees Hired part-time to supplement the City’s regular workforce
in a position that does not have an associated line-item position.
Contract Employee: These positions are for periods of employment typically greater
than six months but less than two years. Contract employees may receive some of the
same benefits as regular employees in the bargaining group their classification is within
if it is expressly written in to their employment contract. Other contract employees may
have other negotiated benefits that differ from a bargaining unit.
Heath insurance (medical, dental, vision, life) is an optional benefit for contract
employees, offered at the department’s discretion. City contribution is aligned
with equivalent employee group benefits.
TEMPORARY HIRING OF RETIREES
• Temporary full-time or temporary part-time employment of retirees under the
California Public Employees Retirement System (PERS) shall be permitted in
cases where temporary service is desired.
• The PERS retiree is limited to 960 hours per fiscal year. These hours include
periods of time worked for any PERS agency in the State of California. Under
no circumstances shall a PERS Retiree work for any PERS agency for more
than a total of 960 hours per fiscal year or be assigned to the City through a
temporary agency. Other limitations may apply, including the amount of
compensation that may be offered. Refer to CalPERS Employment After
Retirement Handbook for further information.
Retired Annuitant: An employee that has retired from a CalPERS agency that meets
the criteria to work for less than 960 hours in a fiscal year. These criteria include:
• Hired to be used as extra-help
• Has specialized skills needed to perform the work
• Their retirement date must be 180 days before their hire date
Benefits
Supplemental Employee Health Contribution: Supplemental employees working
shifts greater than 30 hours per week or 130 hours per month on a continuous basis for
at least four months will be eligible for employee-only health insurance. The contribution
is adjusted annually to ensure affordability as defined by the Affordable Care Act (ACA).
Nationwide Retirement: The City of San Luis Obispo does not participate in Social
Security but has implemented a retirement system which satisfies the IRS and the
Social Security Act [20 CFR 1200(b)]. This shall be accomplished by the use of a
Deferred Compensation Plan eligible under section 457(b) of the Code. All employees
C - REVISED SUPPLEMENTAL EMAPLOYEE POLICY
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Item 5
Supplemental Employee Policy
Revised December 2018 Page 3 of 11
of the City of San Luis Obispo who are not eligible to participate in the Public
Employees Retirement System (CalPERS) must participate in this defined contribution
plan. Employee contribution is 7.5% of salary.
CalPERS Retirement: Supplemental employees who have previously been enrolled in
CalPERS or exceed 1,000 paid hours in a fiscal year will be enrolled into CalPERS
(paid hours include regular, sick leave, overtime).
*For more information, please refer to Exhibit A
Paid Sick Leave: In compliance with California Law Assembly Bill 1522 – Healthy
Workplaces, Healthy Families Act of 2014 (AB 1522), effective July 1, 2015 the City will
provide all supplemental staff (with the exception of retired annuitants) paid sick leave at
the accrual rate of one (1) hour of sick leave for every 30 hours worked, up to three (3)
days or 24 hours of paid sick leave to be provided in a 12-month period. More details
can be found in the City’s Paid Sick Leave Policy. Parks and Recreation Limited Benefit
(LBT) employees are pre-approve positions that are eligible for additional sick time
benefits. Each incumbent of an LBT position shall accrue sick leave with pay at the rate
of twelve days per year of continuous service. A department head shall require written
proof of illness from an authorized medical authority at the employee’s expense for sick
leave use in excess of five (5) consecutive working days by personnel in his/her
department. Such proof may be required where there exists an indication of sick leave
abuse.
Personal Time-off (PTO): Parks and Recreation Limited Benefit (LBT) employees are
pre-approved positions that work over 1,000 hours per fiscal year and are eligible for
personal time off (PTO) benefits. These employees receive PTO in the amount of 3%
of hours worked, up to a maximum accrual of 40 hours which is cashed out upon
termination. PTO does not count towards hours worked for purposes of overtime
calculation.
RESPONSIBILITY FOR SUPPLEMENTAL RECRUITMENT & SELECTION
The Department of Human Resources shall be responsible for the application of the
Supplemental Employee Policy. From time to time the Human Resources Director and
City Manager may be required to make amendments to this policy to comply with
federal and state laws.
HUMAN RESOURCES DEPARTMENT
It shall be the responsibility of the Department of Human Resources to assist all
department heads and their staff in the recruitment and selection of all supplemental
staff and contract employees (except for Parks and Recreation) which includes:
• Advertising the position.
• Accepting, tracking and maintaining the applications.
• Scheduling pre-employment physical examinations (if required).
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Item 5
Supplemental Employee Policy
Revised December 2018 Page 4 of 11
• Advising and assisting departments in solving performance problems or other
policy issues with supplemental employees.
• Orienting supplemental employees.
Department Heads / Supervisors
The department heads / supervisors or designee have primary responsibility for the
implementation of the Supplemental Staff Policy within their department/division. It is
the responsibility of the department heads / supervisors or designee to:
• Determine if funding is available within the department budget to hire
supplemental help.
• Determine with the assistance of the Human Resources Department if a pre-
employment physical is needed.
• Schedule an orientation with the Human Resources Department on the first day
of employment. Parks and Recreation will orient their own supplemental
employees.
CRITERIA FOR SUPPLEMENTAL STAFF TO EXCEED 1,000 HOURS
Supplemental staff are not eligible for PERS retirement benefits unless they exceed
1,000 paid hours (regular, sick leave, OT) in a fiscal year or the employee has
previously qualified for PERS retirement. If the supplemental employee is projected to
exceed 1,000 hours, a City Manager report requesting approval to allow a supplemental
employee to exceed 1,000 hours in a fiscal year should be submitted and contain the
following information:
• Name, classification, and hire date of the supplemental employee.
• A discussion of the critical need for the employee to work more than 1,000 hours
in a fiscal year.
• A brief description of the employee’s work assignment.
• Hours worked to date and estimated date employee will exceed 1,000 hours.
• The time frame of the expected need for this employee to work more than 1,000
hours per fiscal year.
• Training the department has invested in this employee.
• The recruitment difficulties the department has experienced, if any.
• The anticipated increases in costs for PERS retirement. Estimate the dollar
amount for the remainder of the current fiscal year and for the next full fiscal
year.
• Any alternatives, including hiring more supplemental employees to keep them
under the 1,000-hour limit.
• The consequences if the request is not approved.
• Other information to support the request.
See Appendix A for a sample City Manager Report.
C - REVISED SUPPLEMENTAL EMAPLOYEE POLICY
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Item 5
Supplemental Employee Policy
Revised December 2018 Page 5 of 11
BARGAINING UNIT
Supplemental staff are not covered by nor represented by any bargaining unit.
COMPENSATION
Salary
All supplemental employees shall be paid in accordance with the Supplemental
Employee Salary Ranges. The starting step of pay can be assigned at the discretion of
the Department Head. Rationale for placing an employee above Step 1 will be specified
on the Personnel Action Form. If an employee is performing two different jobs within
the City, they will code their timecard with the appropriate account number for each
different job and submit a Personnel Action.
Overtime
Overtime is defined as all hours preauthorized by management and worked by the
supplemental employee more than forty (40) hours worked in a work period. All
overtime shall be authorized in writing by the department head or designee prior to
being worked. Overtime shall be compensated in cash at one and one half (1 1/2) times
the employee’s regular rate of pay.
Criteria for Step Increase
Step increases shall not be automatic or simply a function of time in position.
Consideration for a step increase should be based on both the employee’s satisfactory
performance and the accumulation of working 520 hours at a current step in their
current classification.
A discretionary increase may be considered prior to completion of 520 hours of City
employment to retain key skills. Any step increase recommended by the Department
Head must be in alignment with the City’s Supplemental Employee Salary Ranges and
approved By Human Resources. Request for a discretionary increase must be
accompanied by written justification from the supervisor. Guidelines for discretionary
increases are set by each division and shall be applied equally.
Increases are not applied retroactively. Increases are not intended to imply long-term
continuation of employment, but to recognize performance and address retention of
critical skills and certifications to avoid unnecessary turnover costs. Increases larger
than one step must be accompanied by appropriate written justification and are allowed
one time within a salary range.
Salary Range Adjustments
Per the City’s Compensation Philosophy, supplemental employee salary ranges will be
evaluated periodically for market competitiveness, effectiveness, and compliance with
State law.
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Supplemental Employee Policy
Revised December 2018 Page 6 of 11
Multiple Classifications
For employees working in multiple classifications, the department will need to list out all
classifications (including account, department, supervisor, pay rate) on a Personnel
Action Form.
EVALUATIONS FOR CONTRACT EMPLOYEES
Contract employees with a term of more than one year will be evaluated using the
guidelines below. The format of evaluations is up to the discretion of the department;
they may use the evaluation template or write a memo.
Management/Exempt Employees
Within two weeks of employment, the supervisor will work with the employee to create
their goals. This will provide a framework within which the employee will be evaluated.
At the six-month mark an evaluation is recommended, but not required. An annual
evaluation will then be required for the duration of their contract, as well as updated
goals each year.
Non-Exempt Employees
Within two weeks of employment, the supervisor will work with the employee to set
expectations. This will provide a framework within which the employee will be evaluated.
At the six-month mark an evaluation is recommended, but not required. An annual
evaluation will then be required for the duration of their contract.
EMPLOYMENT OPPORTUNITY PROGRAM
Supplemental employees who meet the minimum qualifications are eligible to compete
for open positions as part of the Employment Opportunities Program (EOP). The
Program is designed to give current employees a window of opportunity to apply for and
possibly transfer or promote into another classification when there is a vacancy prior to
the start of an outside recruitment.
TERMINATION
Per the Personnel Rules and Regulations (2.36.190 D 3) a supplemental employee may
be removed at any time without the right of appeal or hearing.
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Supplemental Employee Policy
Revised December 2018 Page 7 of 11
Exhibit A
Type Duration Mandatory Benefits
Health Cont. PERS
Seasonal FT <6 M No Contract
Must offer upon hire if the
employee will be working 30
hours on average over a four-
month period.
Must offer if the employee
works 30 hours on average
over a four-month period.
Must enroll upon hire if they
are expected to exceed the
1,000-hour limit within a fiscal
year.
Must enroll if the employee
exceeds the 1,000-hour limit
within a fiscal year.
PT <6 M No Contract No enrollment required. No enrollment required.
Occasional
FT <6 M No Contract
Must offer upon hire if the
employee will be working 30
hours on average over a four-
month period.
Must offer if the employee
works 30 hours on average
over a four-month period.
Must enroll upon hire if they
are expected to exceed the
1,000-hour limit within a fiscal
year.
Must enroll if the employee
exceeds the 1,000-hour limit
within a fiscal year.
>6 M Contract Must offer upon hire. Must enroll upon hire.
PT
<6 M No Contract No enrollment required. No enrollment required.
>6 M Contract
Must offer upon hire if the
employee will be working 30
hours on average over a four-
month period.
Must offer if the employee
works 30 hours on average
over a four-month period.
Must enroll upon hire if they
are expected to exceed the
1,000-hour limit within a fiscal
year.
Must enroll if the employee
exceeds the 1,000-hour limit
within a fiscal year.
Ongoing
FT >6 M Contract Must offer upon hire. Must enroll upon hire.
PT >6 M No Contract
Must offer upon hire if the
employee will be working 30
hours on average over a four-
month period.
Must offer if the employee
works 30 hours on average
over a four-month period.
Must enroll upon hire if they
are expected to exceed the
1,000-hour limit within a fiscal
year.
Must enroll if the employee
exceeds the 1,000-hour limit
within a fiscal year.
C - REVISED SUPPLEMENTAL EMAPLOYEE POLICY
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Supplemental Employee Policy
Revised December 2018 Page 8 of 11
Appendix A – Sample City Manager Report
Final City Manager Approval Approver Name Date Approved
City Administration Approver’s Initials Month/Day
Reviewer Routing List Reviewer Name Date Reviewed
Finance & Information Technology Reviewer Initials Month/Day
Human Resources Reviewer Initials Month/Day
DATE
FROM: Department Head, Department Signature
PREPARED BY: Name, Position Title
SUBJECT: PERS Enrollment 1000 hours - Williamson
RECOMMENDATION
Authorize Part Time/Temporary Lifeguard Lindsey Williamson’s enrollment in the PERS system
effective May 25, 2017.
In this section you explain what you are asking for.
DISCUSSION
Background Information
Lindsey Williamson was hired on July 3, 2015 and presently works two different jobs for the
City: Lifeguard/City Worker 3 and Swim Instructor/ City Worker 4. On May 25, 2017 Lindsey
will exceed the 1,000 hour mark limitation on part time temporary employees and therefore must
be enrolled in PERS as of that date. To minimize ongoing costs she could be terminated and
another temporary employee hired that would not be in PERS.
This is where you include background information such as hire date, an overview of the
situation, or any other important information to understanding the situation. Below, you outline
specifics of why this occurrence happened / is happening, what needs to be done, and
alternatives to your recommendation.
Significant staff transitions in Aquatics and Facilities in 2017 and Lindsey stepped up
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Supplemental Employee Policy
Revised December 2018 Page 9 of 11
Recruitment for Aquatics staff is an on-going struggle due in part to the number of weekly shifts
needing to be filled and the now recovered economy. In addition, the majority of staff are
college students whose work availability is dependent on their class schedules; therefore they
require a work schedule that must change from quarter to quarter to “fit” their academic
schedule. Lindsey is a trained, available employee who has filled the gaps with scheduling for
the past year. In Aquatics, due to the low numbers of employees and slow recruitment, Lindsey
was asked to fill in for additional shifts as a swim instructor for swim lessons, lifeguards, and
assist incoming staff shadow shifts in May.
Why Will Staff Allow Lindsey Williamson to Exceed 1,000 hours in a Fiscal Year?
Because she is a great employee, and because May and June are the busiest months of the year
for Parks and Recreation, Lindsey has covered and will cover several extra shifts at the pool and
facilities. She was covering for sick staff in May (the stomach flu made the rounds) and one of
the only employees able to work these shifts. With the slow recruitment process, student
scheduling issues, and illnesses, the options are either to allow Lindsey to work the extra hours,
have regular staff work these shifts (taking away from their priorities and costing over twice as
much per hour), be understaffed which would result in a safety issue, or close the pool
altogether.
Why is it critical to authorize this employee to be enrolled in PERS?
1. We are legally required to enroll Lindsey in PERS because she will exceed 1,000
hours in a fiscal year. Not enrolling her in PERS could subject the City to penalties that
could far exceed the additional cost of PERS.
In her Assigned Division continuity of staff and relationships is highly valued.
Lindsey has shown a passion for the Parks and Recreation Department. Her job duties include:
patron safety, recognizing and responding to emergencies, enforcing rules and regulations of the
facility, head lifeguard duties, swim lesson instruction, maintaining effective working
relationships with staff and the public, and assisting in lifeguard training. Lindsey is a “natural”
leader and brings a positive attitude to the programs. She is an excellent communicator and the
positive relationship she has cultivated with the children in her lessons and families is invaluable
and irreplaceable. Lindsey’s passion and devotion to quality programming and enriching
opportunities is evident in all she does. She is well liked by patrons of the pool, students she has
taught, and regular users of our facilities.
Significant training has been provided to this employee.
Along with being trained in general City policies and procedures, Lindsey has been trained in
over 80 hours of intensive and general training pertaining to Aquatics, including: First Aid and
CPR, Mandated Child Abuse Reporting procedures, emergency action plans, water rescue skills,
facility policies and procedures, facility safety checks, Active registration system.
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Supplemental Employee Policy
Revised December 2018 Page 10 of 11
Longer term Lindsey would be a natural fit as a LBT.
Lindsey began working for the Parks and Recreation Department as a Lifeguard in Aquatics.
Once she met the requirements for the lifeguarding role, she was immediately assigned higher
designations and given more responsibility based on her exemplary work performance.
Currently, she is a head lifeguard who is being trained for upcoming department specialist
positions. Lindsey is dependable, committed, a self-starter and has exceeded all expectations.
Due to all of this Lindsey would be a natural fit for a future LBT (PERS budgeted) vacancy. If
the past is a guide, Parks and Rec experiences an average of one LBT vacancy a year (if not
more) due to promotions and other transitions. This succession planning effort allows for
program Supervisors to retain quality employees and provide programmatic consistency while
reducing recruitment and training costs. If this were to occur, future PERS costs for Lindsey
would be folded into her salary as PERS costs are included in the costs of limited benefit
temporary employees. Consequently, if the request is not approved, Lindsey would have to be
terminated resulting in the loss of consistent, hard-working, and quality employee. There would
be significant training costs associated with adding another staff member of Lindsey’s caliber.
What alternatives are there, including hiring more temp employees in order to keep them
under the 1000-hour limit?
1. Increase tracking of all multiple division staff. Work with staff, in addition to
Supervisors, to better understand the limitations present by keeping employees under the
1000 hours threshold by scheduling fewer hours for the employee per division. Doing bi-
monthly Intellitime checks and balances once an employee is at or near 750 hours as
related to internal staff hour tracking.
2. Lower the Department Policy Restrictions on Hours Worked. Lower the stop work
threshold to 820 hours.
3. Hiring More Staff. Hiring more temporary employees for the aquatics program. This is
not desired as summer is the high season while the hours are cut dramatically in the off
season. It takes about a month from the time the position is opened to the employee’s
start date, so if we started recruiting now it would be a position that would last for about
six weeks. This position would have to undergo rigorous training to comply with safety
standards and would not be worth the cost of the recruitment process for the short time
they are employed.
CONCURRENCES
The Human Resources Director concurs with the recommendations of this report.
FISCAL IMPACT
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Supplemental Employee Policy
Revised December 2018 Page 11 of 11
Assuming this employee remains an active part time employee in 2016-17 and in the current
position, and roughly the same number of hours the added annual cost would be approximately
$3,030. The projected increased cost of the proposed change for this employee can be
accommodated within the existing budget for temporary salaries for Parks and Recreation.
This is where you explain the direct fiscal impact of your recommendation, if there is any.
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Item 5
Department Name: Community Development
Cost Center: 4003
For Agenda of: December 3, 2019
Placement: Consent
Estimated Time: N/A
FROM: Michael Codron, Community Development Director
Prepared By: Rachel Cohen, Associate Planner
SUBJECT: ADOPTION OF ORDINANCE REZONING PROPERTIES AT 609 & 633
PALM, 610, 614 & 630 MONTEREY, 970 & 972 NIPOMO STREETS FROM
OFFICE WITH A HISTORIC DISTRICT OVERLAY (O-H) AND MEDIUM-
HIGH DENSITY RESIDENTIAL (R-3) TO DOWNTOWN COMMERCIAL
ZONE WITH A HISTORIC DISTRICT OVERLAY (C-D-H), TO BE
CONSISTENT WITH THE PALM NIPOMO PARKING STRUCTURE
PROJECT AND GENERAL PLAN AS AMENDED
RECOMMENDATION
Adopt Ordinance 1671 (2019 Series) (Attachment A) rezoning property at 609 & 633 Palm, 610,
614 & 630 Monterey, 970 & 972 Nipomo Streets.
SITE DATA
DISCUSSION
On November 12, 2019, the City Council voted 3-0-2 to introduce Ordinance 1671 (2019 Series)
to rezone the properties at 609 & 633 Palm, 610, 614 & 630 Monterey, 970 & 972 Nipomo
Streets from Office with a Historic District Overlay (O-H) and Medium-High Density
Residential (R-3) to Downtown Commercial with a Historic District Overlay (C-D-H) to be
consistent with the Palm Nipomo Parking Structure Project and with the General Plan. Ordinance
No. 1671 is now ready for adoption. The Zoning Map change will become effective 30 days after
its adoption.
Applicant SLO Rep and City of SLO
Representative SLO Rep – Bryce Engstrom
City of SLO – Richard Burde
Zoning O-H (Office-Historic District
Overlay) and R-3 (Medium-High
Density Residential)
General Plan Office and Medium-High Residential
Site Area 1.38
Environmental
Status
Certified FEIR and an Addendum
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Item 6
Background
Previous Council and Advisory Body Action
• November 12, 2019 – City Council reviewed and approved the architectural design of a new
performing arts facility and a new parking structure, a deviation in the height and Floor Area
Ratio (F.A.R.) for the parking structure, use permits to allow the SLO Rep Theatre and a
parking structure within the Downtown Commercial Zone and adopted a General Plan
Amendment changing the project site from Office and medium-high density residential to
General Retail. The City Council also introduced changing the zoning of the project site from
Office with a Historic District Overlay (O-H) and Medium-High Density Residential (R-3) to
Downtown Commercial with a Historic District Overlay (C-D-H).
• October 23, 2019 – Planning Commission reviewed the project and recommended that the
City Council approve the project as proposed and made a recommendation that the
forthcoming building that will line the parking structure include residential units, based on
the architectural concept that was presented at the October 23, 2019 Planning Commission
meeting. The Planning Commission made a second motion and recommended the Council
consider developing a process to identify parties to move the adobe and find creative
adaptation for its use.
• September 23, 2019 – CHC reviewed the proposed project plans and recommended the PC
find the Palm Nipomo parking structure compatible with the Downtown Historic District.
They recommended continuance on the review of the Heyd Adobe component of the project
and continuance of the review of the facade design of the SLO Rep Theatre.
• September 16, 2019 – ARC reviewed the revised plans that incorporated their direction and
made a recommendation that the PC find the project consistent with the Community Design
Guidelines with direction that the applicant of the SLO Rep Theatre revise the façade of the
building with better balance and proportion of the wall cladding - specifically, reduce the
variegated terracotta facade at the exterior of the black box theatre and at the upper portion of
the walls of the main theatre projecting above the roof deck level (approximately at the
218.45 foot elevation and above) and soften the contrast of the terracotta tiles with each
other.
• August 19, 2019 – ARC reviewed the proposed architecture of the project and the ARC
continued the review and provided seven directional items to the applicants requesting the
applicants produce elevations and renderings that showed the two structures together and to
include a revised western elevation of the parking structure that had more articulation and
design.
• July 17, 2018 – City Council reviewed and adopted the Final Environmental Impact Report
(FEIR) Palm Nipomo Parking Structure Project. The CHC, ARC and PC each reviewed the
document and provided comments and recommendations to the City Council.
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Item 6
Policy Context
As discussed in the Council Agenda Report dated November 12, 2019, the project is consistent
with policies outlined in the Land Use Element, Circulation Element and the Downtown Concept
Plan.
Public Engagement
Consistent with the City’s Public Engagement and Noticing (PEN) Manual, the project was
noticed per the City’s notification requirements for Development Projects. A legal advertisement
was posted in the New Times 13 days prior to the City Council meeting. Additionally, postcards
were sent to both tenants and owners of properties located within 300 feet of the project site 10
days before the City Council meeting. Public comment on the project and the associated
environmental document was provided to the advisory bodies through written correspondence
and through public testimony at the hearing.
CONCURRENCE
Staff comments provided during review of the proposed project are incorporated into the staff
report and conditions of approval. Additional comments will be provided in the staff report for
the use permit and architectural review regarding public improvement requirements, utility
connections, and other site features once those subsequent applications are received and ready
for consideration.
ENVIRONMENTAL REVIEW
On July 17, 2018, the City Council certified the Final Environmental Impact Report (FEIR State
Clearinghouse Number 2017051011), adopted a Mitigation Monitoring and Reporting Program,
adopted the following CEQA Findings and Mitigation Measures related to the Palm Nipomo
Parking Structure Project, and made a Statement of Overriding Considerations.
On November 12, 2019, the City Council adopted Resolution No. 1671 (2019 Series) adopting
the Addendum to the FEIR changing the land use designation from Public to Downtown
Commercial and the zoning from Public Facility with a Historic Overlay (PF-H) to Downtown
Commercial with a Historic Overlay (C-D-H) to allow for the uses as they are described and
analyzed in the FEIR.
FISCAL IMPACT
Budgeted: N/A Budget Year: 2019-21
Funding Identified: N/A
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Item 6
Fiscal Analysis:
Funding Sources Current FY Cost
Annualized
On-going Cost
Total Project
Cost
General Fund N/A
State
Federal
Fees
Other:
Total
A detailed discussion on the fiscal impact is discussed in the Council Agenda Report dated
November 12, 2019.
ALTERNATIVES
Modify the Proposed Ordinance. The City Council may make minor, non-substantive changes
to the proposed Ordinance for the staff to incorporate in the final documents. Any material
changed to the Final Ordinance would require further review by staff and the Planning
Commission followed by re-introduction of the Ordinance by the Council.
Attachments:
a - Draft Ordinance No. 1671 (2019 Series)
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Item 6
O 1671
ORDINANCE NO. 1671 (2019 SERIES)
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SAN LUIS
OBISPO, CALIFORNIA, REZONING PROPERTIES AT 609 & 633 PALM,
610, 614 & 630 MONTEREY, 970 & 972 NIPOMO STREETS FROM
OFFICE WITH A HISTORIC DISTRICT OVERLAY (O-H) AND
MEDIUM-HIGH DENSITY RESIDENTIAL (R-3) TO DOWNTOWN
COMMERCIAL ZONE WITH A HISTORIC OVERLAY (C-D-H)
CONSISTENT WITH THE PALM NIPOMO PARKING STRUCTURE
PROJECT WITH AN ADDENDUM TO THE CERTIFIED
ENVIRONMENTAL IMPACT REPORT AS REPRESENTED IN THE
COUNCIL AGENDA REPORT AND ATTACHMENTS DATED
NOVEMBER 5, 2019 (RZ-0460-2019)
WHEREAS, the Planning Commission of the City of San Luis Obispo conducted a
public hearing in the Council Chamber of City Hall, 990 Palm Street, San Luis Obispo, California,
on October 23, 2019, and recommended a revision to the City’s Zoning Map (Exhibit 1 attached)
consistent with the Palm Nipomo Parking Structure Project as part of the entitlement process for
the project (RZ-0460-2019); and
WHEREAS, the City Council of the City of San Luis Obispo conducted a public
hearing in the Council Chamber of City Hall, 990 Palm Street, San Luis Obispo, California, on
November 12, 201 9 , for the purpose of approving the rezone; and
WHEREAS, the City Council finds that the proposed amendments are consistent with
the General Plan as amended, the purposes of the Zoning Regulations, and other applicable City
ordinances; and
WHEREAS, the City Council adopted a Final Environmental Impact Report (FEIR) for
the project (SCH #2017051011) that addressed impacts related to the rezone at its public hearing
of July 17, 2018, and review of the Addendum at its public hearing of November 12, 2019; and
WHEREAS, notices of said public hearings were made at the time and in the manner
required by law; and
WHEREAS, the City Council has duly considered all evidence, including the testimony
of the applicant, interested parties, and the evaluation and recommendations by staff, presented at
said hearing.
NOW, THEREFORE, BE IT ORDAINED , by the City Council of the City of San
Luis Obispo as follows:
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Ordinance No. 1671 (2019 Series) Page 2
O 1671
SECTION 1. Environmental Determination. The City Council hereby finds that this
action has been environmentally reviewed pursuant to the provisions of the California
Environmental Quality Act (Public Resources Code Sections 21000, et seq. (“CEQA”), the
State CEQA Guidelines (California Code of Regulations, Title 14, Sections 15000, et seq.) and
the City's local standards. On July 17, 2018, the City Council certified the Final Environmental
Impact Report (SCH #2017051011), adopted a Mitigation Monitoring and Reporting Program, and
adopted CEQA Findings and Mitigation Measures, including a Statement of Overriding
Considerations, for the Palm Nipomo Parking Structure Project per Resolution No. 10923 (2018
Series). A Notice of Determination was filed with the San Luis Obispo County Clerk Recorder’s
Office on July 19, 2018.
The City Council adopts the following findings to approve the Addendum to the certified FEIR:
1) the minor technical changes addressed in the Addendum do not materially change the findings
and conclusions of the certified FEIR; 2) no substantial changes are proposed or would occur that
would require major revisions to the certified FEIR; 3) no new significant environmental effe cts
are identified and there would not be a substantial increase in the severity of previously identified
significant effects; 4) the project would not result in any significant effects that would be
substantially more severe than what was identified in the certified FEIR. Furthermore, the
applicant will comply with all mitigation measures and environmentally mitigating project features
included in the certified FEIR.
SECTION 2. Findings. Based upon all evidence, the City Council makes the following
findings:
a) The rezone allows the implementation of the Palm Nipomo Parking Structure Project by
rezoning the site to be consistent with the General Plan as amended.
b) The rezone is consistent with General Plan Land Use Element policies and map as amended
related to the Palm Nipomo Parking Structure Project, including the land uses and
conceptual development envisioned for the area for following reasons: 1) The rezone would
facilitate the General Plan Land Use map as amended and reflect General Plan development
parameters for the area; and 2) the rezone would facilitate appropriate infill development
and construction consistent with the City’s Downtown Concept Plan and support General
Plan policies for the development of Downtown.
c) The rezone will not create non-conforming uses at the site because any existing uses that
remain on site would be allowed under the new zoning.
SECTION 3 . Action. The City Council of San Luis Obispo hereby approves the rezone
and land use map amendment as shown in attached “Exhibit 1,” which is consistent with the land
use designations included in the General Plan as amended.
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Ordinance No. 1671 (2019 Series) Page 3
O 1671
SECTION 4 . Severability. 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 any
competent jurisdiction, such decision shall not affect the validity of the remaining portions of this
Ordinance. The City Council hereby declares that it would have passed this Ordinance, and each
and every section, subsection, sentence, clause, or phrase not declared invalid or unconstitutional
without regard to whether any portion of the Ordinance would be subsequently declared invalid or
unconstitutional.
SECTION 5. A summary of this ordinance, together with the names of Council Members
voting for and against, shall be published at least five (5) days prior to its final passage, in The
Tribune, a newspaper published and circulated in this City. This ordinance shall go into effect at
the expiration of thirty (30) days after its final passage.
INTRODUCED on the 12th day of November 2019 , AND FINALLY ADOPTED by
the Council of the City of San Luis Obispo on 3rd day of December 2019, on the following
vote:
AYES:
NOES:
ABSENT:
______________________________
Mayor Heidi Harmon
ATTEST:
Teresa Purrington
City Clerk
APPROVED AS TO FORM:
J. Christine Dietrick
City Attorney
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the
City of San Luis Obispo, California, this __________ day of ____________________, _______.
Teresa Purrington
City Clerk
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Item 6
Ordinance No. 1671 (2019 Series) Page 4
O 1671
Exhibit 1. Amended Land Use Map and Rezoning Map
Palm Nipomo Parking Structure Project Amended Land Use and Rezoning Map
Existing Proposed
Medium-High
Residential (R-3)
Office with a
Historic Overlay
(O-H)
Downtown
Commercial with
a Historic Overlay
(C-D-H)
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Item 6
Department Name: Utilities
Cost Center: 6105
For Agenda of: December 3, 2019
Placement: Consent
Estimated Time: N/A
FROM: Aaron Floyd, Utilities Director
Prepared By: Jennifer Thompson, Utilities Business Manager
SUBJECT: REQUEST TO AUTHORIZE STAFF TO ADVERTISE A REQUEST FOR
PROPOSALS FOR CONTRACT WATER METER READING
RECOMMENDATION
Authorize staff to advertise a Request for Proposals (RFP) for contract meter reading and
authorize the City Manager to execute an agreement if the selected proposal is less than or equal
to $182,000 and satisfying any meet and confer obligations with represented employees.
DISCUSSION
Background
In August 2014, the City released a Request for Proposal (RFP) (Attachment A) seeking
proposals for contract water meter reading services. One proposal was received from
Alexander’s Contract Services, Inc. It was evaluated and determined to be responsive to all
elements of the RFP. The contract was awarded in January 2015 for a three-year period with the
option to extend for two additional years upon agreement of both parties. In March 2018, the
City Council approved a two-year contract extension with Alexander’s Contract Services, Inc.
Contract Meter Reading Benefits
In 2015, the City implemented contract meter reading to resolve irregular billing period lengths
and dates during the Average Winter Water Use (AWWU) billing cycle. Contract meter reading
allows for all meters to be read during the first week of each month whereas previously it took
City Water Distribution staff one full month to read all of the meters in the city. Contract meter
reading has helped standardize the AWWU period for all customers and has also proven to have
other valuable benefits as defined below.
Customer Service- Bill and Payment Due Date Consistency
Contract meter reading has solved multiple ratepayer concerns related to utility billing.
Concerns prior to contract meter reading included: 1) ratepayers with a fixed income struggling
with receiving their utility bill on different dates each month; and 2) ratepayers who chose the
auto-pay option, which directly debits their account, struggling with the ever-changing billing
and withdrawal date. Contract meter reading has allowed the billing date to be standardized for
all ratepayers. All water meters are read in one week, on the same week of every month, and are
subsequently billed the same time of each month. This change resolved customer concerns
related to inconsistent bill and payment due dates.
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Item 7
Maximizing Work Force
Prior to contract meter reading, four Water Distribution Customer Service staff were dedicated to
meter reading. With the implementation of contract meter reading, two of these positions have
been converted from Customer Service to Water Distribution Operators. These additional
Operators have allowed the Water Distribution section to perform critically needed maintenance
in the water distribution system.
Contract meter readers take pictures of water meter reads that are outside a normal range of
water consumption. These pictures have saved work effort and time in both the Water Resources
and Utility Billing sections. Prior to contract meter reading, Water Resources staff had to visit a
property to re-read a meter if the meter read appeared outside of a normal range. Now, in most
cases, staff are able to rely on the picture taken by the contract meter reader to inform of the
potential for a water leak or another cause of high consumption. The pictures have also reduced
the number of billing errors related to misread meters.
Savings
Since the implementation of contract meter reading, the Utility Billing section has been reduced
from 3.5 full-time employees (FTE) to 2 FTE. Contract meter reading has been one of several
factors that has allowed for this reduction in staff. Utility Billing staff spends less time fixing
billing errors related to incorrectly read meters and has a more regular billing schedule as a result
of all meters being read during the same week of the month.
Optional Additional Services
In addition to contract meter reading, the Utilities Department is interested in receiving proposals
for other meter-related services. The Utilities Department will review these additional proposals
and evaluate whether implementing these services is cost effective and would provide the
necessary level of service to the community. In conducting that evaluation, staff will consider
whether there may be potential modification to job duties of existing staff and recognizes the
City’s duty to meet and confer in good faith over any potential impacts of changes to job duties
in advance of implementation.
1. Turn On and Turn Off Service
The Water Distribution section of the Utilities Department currently performs daily meter
turn on, turn off, and meter read service for customers starting and stopping water
service.
2. Meter Replacements
The Water Distribution section of the Utilities Department routinely exchanges old water
meters for new water meters to ensure that all water meters are in good working order
and accurately measure water consumption. This optional additional service would
outsource the replacement of up to 1,500 small water meters (5/8” through 1” meters) on
an annual basis.
3. Alternative Method to Contract Meter Reading Services
The Utilities Department is interested in other means to accomplish the goals of contract
meter reading, an example would be automated meter reading. The proposer may submit
an alternative proposal (or proposals) that it believes will also meet the City's project
objectives but in a different way.
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Policy Context
1. The Fiscal Sustainability and Responsibility Major City Goal work plan includes developing
efforts to increase operational efficiencies. Contract meter reading has proven to increase
operational efficiencies.
2. The Fiscal Health Response Plan also focuses on new ways of doing business to deliver
services differently while minimizing impacts to residents and other customers. The
additional optional services will give the Utilities Department the opportunity to consider
different ways to deliver turn on and turn off service, meter replacements and installations,
and meter reading.
Public Engagement
This is an administrative item, so no outside public engagement was completed. Public comment
can be provided to the City Council through written correspondence prior to the meeting and
through public testimony at the meeting.
CONCURRENCE
Utilities staff collaborated with staff from the Human Resources Department regarding the
optional additional services. The Human Resources Department concurs with the information
provided in this report.
ENVIRONMENTAL REVIEW
The California Environmental Quality Act does not apply to the recommended action in this
report, because the action does not constitute a “Project” under CEQA Guidelines Sec. 15378.
FISCAL IMPACT
Budgeted: Yes Budget Year: 2019-20
Funding Identified: Yes
Fiscal Analysis:
Funding
Sources
Total Budget
Available
Current Funding
Request
Remaining
Balance
Annual
Ongoing Cost
Sewer Fund $182,000
State
Federal
Fees
Other:
Total $182,000
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The current cost for the annual contract for meter reading is $182,000. This is based upon the
15,800 meters that are currently being read. The cost to read each water meter is $0.96 per
month. It is expected that the new contract will be approximately the same amount.
If the additional optional services are evaluated and determined to be cost effective, the Utilities
Department will request additional funding as a part of the 2020-21 Financial Plan Supplement.
ALTERNATIVES
Do not Authorize Staff to Advertise a Request for Proposal. Council may decide to not to
advertise an RFP however, the current contract will expire on March 31, 2020. Staff does not
recommend this option, as the City has come to rely upon and recognize the benefits of contract
meter reading.
Attachments:
a - Contract Meter Reading RFP 2020
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The City of San Luis Obispo is committed to including disabled persons in all of our services, programs and activities.
Telecommunications Device for the Deaf (805) 781-7410.
Notice Requesting Proposals for Contract Water Meter Reading Services
The City of San Luis Obispo is requesting sealed proposals for services associated with the Contract Meter
Reading Services.
All firms interested in receiving further correspondence regarding this Request for Proposals (RFP) will be
required to complete a free registration using BidSync (https://www.bidsync.com/bidsync-app-
web/vendor/register/Login.xhtml). All proposals must be received via BidSync by the Department of
Finance at or before 01/07/2019 when they will be opened publicly in the City Hall Conference Hearing
Room, 990 Palm Street, San Luis Obispo, CA 93401.
Proposals received after said time may not be considered. The preferred method of submission is
electronically via BidSync. If you wish to send a hard copy to guard against premature opening, each
proposal shall be submitted to the Department of Finance in a sealed envelope plainly marked with the
proposal title, project number, proposer name, and time and date of the proposal opening. Proposals
shall be submitted using the forms provided in the project package.
An optional pre-proposal conference will be held to answer any questions that the prospective proposers
may have regarding the City's request for proposals.
Council Hearing Room
879 Morro Street, San Luis Obispo
12/19/2019 11 am PST
1-888-204-5987, Code: 8618289
Project packages and additional information may be obtained at the City’s BidSync website at
www.BidSync.com. Please contact Jennifer Thompson, Utilities Business Manager, at
jthompso@slocity.org with any questions.
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TABLE OF CONTENTS
A. INTRODUCTION ......................................................................................................................................... 1
B. SCOPE OF WORK ....................................................................................................................................... 1
C. PROJECT SCHEDULE .................................................................................................................................. 6
D. PROJECT BUDGET ...................................................................................... Error! Bookmark not defined.
E. GENERAL TERMS AND CONDITIONS ......................................................................................................... 6
F. SPECIAL TERMS AND CONDITIONS .................................................... ERROR! BOOKMARK NOT DEFINED.
G. FORM OF AGREEMENT ........................................................................................................................... 19
H. INSURANCE REQUIREMENTS ............................................................ ERROR! BOOKMARK NOT DEFINED.
I. PROPOSAL SUBMITTAL FORMS ................................................................................................................ 23
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A. INTRODUCTION
INTRODUCTION
Currently the City’s Contract Meter Reading service is responsible for reading approximately 15,600 water
meters on a monthly basis. All the meters are read over a five-day period at the beginning of each month.
The City is interested in continuing these services and potentially adding other meter-related services to
its contract.
B. SCOPE OF WORK
The City is seeking proposals for a three-year contract with the option to extend for two additional years.
The following sections explain the scope of work and technical requirements to provide monthly water
meter reading services to the City.
1. Implementation
Perform implementation activities required to provide meter reading services for up to 17,000
customer accounts. Upon the City’s execution of the contract, the successful Contractor will have
thirty (30) calendar days to become familiar with the meter reading cycles and operating
procedures, as well as successfully verify and/or integrate meter reading software with the City’s
billing software (Springbrook) before commencing the reading of the meters. Exceptions may be
granted if mutually agreed upon by the Contractor and the City’s Contract Administrator.
The Contractor shall be available to meet on a regular basis during the implementation period as
determined by the City and/or Contractor to resolve any issues, clarify information or provide
alternatives to successfully transition to contract meter reading services.
Implementation includes, but is not limited to, staff training, the creation of meter read routes
integration of the Contractor’s and City’s meter reading activities, integration of mete r reading
information for utility billing and development of service reports.
2. Meter Reading Requirements
Each month Contractor must read the following types and approximate quantities of digital and
analogue water meters.
Meter Size Quantity
.58” 5983
.75” 4807
1” 3935
1.5” 415
2” 383
3” 29
4” 31
6” 14
8” 4
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These quantities are current estimates and it is understood that the City may add and remove
meters over the term of the contract. The Contractor is responsible for reading all meters
assigned, including digital meters and meters in underground vaults.
Contractor will read each meter once per month with at least 99.8 percent accuracy (i.e. no more
than two (2) missed or incorrect meter reads per 1,000 meters). A penalty of $15.00 per error
will be applied against the Contractor’s monthly invoice for each missed or incorrect read in excess
of (2) errors per 1,000 meters.
All meters will be read over a five-day period sometime between the 3rd and the 9th of each month.
All reads will be provided by the end of each working day in a format compatible with the City’s
operating and billing systems. Contractor shall provide to the City the meter read dates for the
following month as far in advance as possible, but no less than one week prior to the first day of
meter reading.
The Contractor will read each water meter regardless if the meter is turned on or off. Estimations
will not be accepted. It is expressly understood that Contractor will make every effort to read all
meters, however, if a read is not obtained due to no fault of Contractor, the read shall be noted
but shall be marked as “Unread Meter” with note. The Contractor shall report all meter reading
issues by the end of each working day to the City’s designated person. The proposal shall contain
what problems the respondent normally reports.
There are a number of new developments being proposed in the City limits. The Contractor’s
proposal shall demonstrate the capacity, or ability to obtain capacity, to expand meter reading
services should the City determine the service is needed. Expansion of service during the contract
term shall be at the sole discretion of the City. The cost to provide the expanded service shall be
at the same rate as provided in the Contractor’s proposal unless otherwise negotiated.
3. Meter Reading Equipment
The Contractor shall offer, at no charge, a web-based meter reading platform. The platform shall
allow for reading synchronization using a wireless process from the field. The platform shall have
the ability to receive re-reads from the office to the handhelds wirelessly. The Contractor shall
supply their staff with handheld devices and will maintain those devices required to read meters
for the City.
The Contractor will ensure that all meter reading equipment, software and files used are
compatible with City operating and billing systems. Integration must be completed within 30 days
of the City’s issuance to proceed.
4. Meter Read In-Field Verification
In the field, the Contractor will validate questionable reads based on the City’s specified variance
parameters.
The Contractor will provide “certified water meter reads” using handheld device technology with
picture taking capabilities to document and verify each meter read (please indicate whether an
additional charge would apply).
5. Repair Work Order Reporting
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The Contractor shall note obvious problems with the meter, i.e. broken meter, broken meter
boxes and lids, meter leaks, high/low consumption, meters found and not in the City’s meter
inventory, and possible customer leaks. Contractor will collect data through their own system with
the capability to transmit the data to the City in order to generate work orders for needed repairs
(e.g., broken/obscured register, meter box too high/low).
Contractor shall notify the City the same day of any hazardous conditions requiring immediate
attention (e.g.: broken water meter box lids, broken meters, potential water leaks, construction
issues, etc.).
A penalty of $15.00 per meter will be credited against the Contractor’s invoice for each inaccurate
work order that results in City staff time.
6. Stopped and Stuck Water Meters
Contractor will check for "stopped/stuck" meters on all accounts that reflect no consumption by
reviewing the meter status (on or off) and occupant activity (visibly occupied or unoccupied).
Contractor will report suspected malfunctioning meters to the City for repairs.
7. Water Meter Reporting Incentive
The City will credit $ 15.00 to the Contractor for each inoperative meter identified by the
Contractor not previously identified as inoperative by the City or the Contractor and verified by
the City to be inoperative. Excluded from the meter reporting incentive is any meter that is
inoperative due to physical abuse or damage by the Contractor.
8. Report to City any Located Meters that are not with the City Read File
Contractor will inform the City’s Contract Administrator of the address, meter ID number, location
and current read. The City will credit $15.00 to the Contractor for each meter that is owned by
the City but not within the City’s active read file.
9. Illegal Connection Incentive
The City will credit a $50.00 incentive to the Contractor per location for identification of illegal
connections not previously identified as an illegal connection by the City or the Contractor and
verified by the City to be an illegal connection.
10. Normal Work Hours
Contractor’s normal hours of operation will be between the hours of 7:00 a.m. and 7:00 p.m.,
Monday through Friday. Deviation or exceptions from the work schedule must be approved by
the City’s Contract Administrator in advance. Contractor will submit a list of Holidays observed
by Contractor with this RFP. The awarded Contractor shall be able to manage their own staff,
ensuring they have completed the routes that have been assigned on a daily basis.
11. Contractor’s Employees and Vehicles
Due to its visibility in the community, the Contractor directly represents the City. Therefore, the
awarded Contractor’s employees shall dress in a professional uniform, drive a clearly marked
vehicle in accordance with California traffic law and conduct themselves in a manner that reflects
the City in a professional manner. Uniforms and vehicles shall be provided by the Contractor.
At all times, the Contractor shall employ only competent readers, experienced or well trained in
the task being performed, and who are familiar with meter location. Employees must be able to
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effectively communicate in a courteous manner when approached by a customer but will refrain
from answering questions but will provide information or materials supplied by the City directing
the customers to a City contact. Contractor shall continuously oversee the activities of such
readers. At the City’s written request, and based upon reasonable evidence, the Contractor shall
immediately remove and replace any incompetent, careless or negligent meter readers.
At all times, contractor shall have employees be uniformed with the Contractor company logo and
identification tags. All Contractor vehicles shall be clean, well-maintained, and marked
appropriately to identify the service provided.
12. Ongoing Coordination/Meetings
Contract amount shall include the cost for ongoing coordination and other meetings during the
contract term as agreed upon by the City and Contractor.
OPTIONAL SERVICES
1. Optional Service 1: Turn On/Turn Off Service
Perform daily meter turn on, turn off, and meter read service (service requests) for customers
starting and stopping water service. An “ON” service request requires the Contractor to turn on
and read the water meter. An “OFF” service request requires the Contractor to turn off and read
the water meter. A “NEW” service request requires the Contractor to just read the meter.
Each month Contractor must perform approximately this number of each type of service request:
Month ON OFF NEW TOTAL
January 62 60 76 198
February 40 46 82 168
March 82 77 95 254
April 64 68 96 228
May 78 76 112 266
June 160 251 288 699
July 313 360 434 1107
August 197 152 305 654
September 145 106 135 386
October 85 87 104 276
November 50 45 92 187
December 45 53 81 179
TOTAL 4602
The largest volume of service requests are on the last business day of June (167 in 2018) and the
first business day in July (292 in 2018). Contractor will need to complete all service requests by
the end of the day. A map identifying service request locations for large volume days is available
upon request.
The Contractor will receive an electronic file each morning from the City including the service
requests scheduled for the day. The Contractor will electronically return to the City the following
information after each service request is complete:
a) Service address.
b) Meter number.
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c) Meter read.
d) Employee name that completed the service requests.
e) Any applicable notes (e.g. meter turning, meter leak)
The Contractor’s software should return this information directly to the City’s billing software
(Springbrook).
2. Optional Service 2: Meter Replacements
Replace 1,500 5/8”, ¾”, and 1” meters. All meters must be replaced outside of the meter reading
period. All new water meters will be supplied by the City.
The meter installation crew shall be employed directly by the Contractor. Each meter installation
crew shall have a licensed plumber or distribution operator in the State of California. Installation
crews shall be experienced, trained, and technically competent.
The Contractor shall report to the City all internal meter or plumbing irregularities including but
not limited to meters installed backward, disconnected meters, other indication of tampering
such as magnets; if a meter has been removed and replaced with connecting pipes; if registers
are disconnected from meter; if there are illegal connections before the meter; or if there are any
other circumstances that warrants communication with the City. Photographs shall be taken of
all irregularities and supplied to the City.
Work is permitted at individual homes between the hours of 7:00 AM to 5:00 PM Monday through
Friday, excluding City holidays.
All work shall be performed in accordance with the California Plumbing Code.
Prior to shutting off water and beginning replacement, customer shall be given 48-hour notice
and Contractor shall inspect the existing service. Contractor shall notify the City of the following
conditions and shall not proceed with the installation until reviewed and directed by the City:
a) The existing meter is inaccessible.
b) The existing meter is set vertically.
c) The existing service does not comply with the plumbing code or is not constructed of
standard potable water supply materials.
d) The existing service needs repairs prior to installing the water meter.
e) Other conditions that would prohibit the safe and effective replacement of the water
meter.
Contractor shall also record the following information electronically in the field and provide to
the City daily:
a) Property address.
b) Water service size.
c) Removed meter register reading and serial number.
d) New meter register reading and serial number.
e) New meter manufacturer, model, size, and number of dials.
Upon completion of the meter replacement, all refuse and unused material shall be removed from
the site. The site shall be returned to its original condition.
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3. Optional Service 3: Alternative Method to Contract Meter Reading Services
The City is interested in other means to accomplish the goals of contract meter reading; an
example would be automated meter reading. The proposer may submit an alternative proposal
(or proposals) that it believes will also meet the City's project objectives but in a different way. In
this case, the proposer must provide an analysis of the advantages and disadvantages of each of
the alternatives and discuss under what circumstances the City would prefer one alternative to
the other(s). If an alternative proposal is submitted, the maximum length of the proposal may be
expanded proportionately by the number of alternatives submitted. Proposer must provide
detailed list of services and cost information for the optional services being proposed.
C. PROJECT SCHEDULE
Preliminary Schedule Tasks
02/17/2020 • Begin Work
02/17 – 03/15/2020 • Contractor – City Integration Testing
03/15 – 03/31/2020 • City Staff Training
04/01/2020 • Go Live
D. GENERAL TERMS AND CONDITIONS
PROPOSAL REQUIREMENTS
1. Requirement to Meet All Provisions. Each individual or firm submitting a proposal (bidder) shall
meet all the terms, and conditions of the Request for Proposals (RFP) project package. By virtue
of its proposal submittal, the bidder acknowledges agreement with and acceptance of all
provisions of the RFP specifications.
2. Proposal Submittal. Each proposal must be submitted on the form(s) provided in the
specifications and accompanied by any other required submittals or supplemental materials.
Proposal documents shall be submitted via BidSync or enclosed in an envelope that shall be sealed
and addressed to the Department of Finance, City of San Luis Obispo, 990 Palm Street, San Luis
Obispo, CA, 93401. To guard against premature opening, the proposal should be clearly labeled
with the proposal title, project number, name of bidder, and date and time of proposal opening.
No FAX or emailed submittals will be accepted.
3. Insurance Certificate. Each proposal must include a certificate of insurance showing:
a. The insurance carrier and its A.M. Best rating.
b. Scope of coverage and limits.
c. Deductibles and self-insured retention.
The purpose of this submittal is to generally assess the adequacy of the bidder’s insurance
coverage during proposal evaluation; as discussed under paragraph 12 below, endorsements are
not required until contract award. The City’s insurance requirements are detailed in Section E.
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4. Proposal Quotes and Unit Price Extension. The extension of unit prices for the quantities
indicated and the lump sum prices quoted by the bidder must be entered in figures in the spaces
provided on the Proposal Submittal Form(s). Any lump sum bid shall be stated in figures. The
Proposal Submittal Form(s) must be totally completed. If the unit price and the total amount
stated by any bidder for any item are not in agreement, the unit price alone will be considered as
representing the bidder’s intention and the proposal total will be corrected to conform to the
specified unit price.
5. Proposal Withdrawal and Opening. A bidder may withdraw its proposal, without prejudice prior
to the time specified for the proposal opening, by submitting a written request to the Director of
Finance for its withdrawal, in which event the proposal will be returned to the bidder unopened.
No proposal received after the time specified or at any place other than that stated in the “Notice
Inviting Bids/Requesting Proposals” will be considered. All proposals will be opened and declared
publicly. Bidders or their representatives are invited to be present at the opening of the
proposals.
6. Submittal of One Proposal Only. No individual or business entity of any kind shall be allowed to
make or file, or to be interested as the primary submitter in more than one proposal, except an
alternative proposal when specifically requested; however, an individual or business entity that
has submitted a sub-proposal to a bidder submitting a proposal, or who has quoted prices on
materials to such bidder, is not thereby disqualified from submitting a sub-proposal or from
quoting prices to other bidders submitting proposals.
8. Communications. All timely requests for information submitted in writing will receive a written
response from the City. Telephone communications with City staff are not encouraged but will
be permitted. However, any such oral communication shall not be binding on the City.
CONTRACT AWARD AND EXECUTION
9. Proposal Retention and Award. The City reserves the right to retain all proposals for a period of
60 days for examination and comparison. The City also reserves the right to waive non-substantial
irregularities in any proposal, to reject any or all proposals, to reject or delete one part of a
proposal and accept the other, except to the extent that proposals are qualified by specific
limitations. See the “special terms and conditions” in Section C of these specifications for
proposal evaluation and contract award criteria.
10. Competency and Responsibility of Bidder. The City reserves full discretion to determine the
competence and responsibility, professionally and/or financially, of bidders. Bidders will provide,
in a timely manner, all information that the City deems necessary to make such a decision.
11. Contract Requirement. The bidder to whom award is made (Contractor) shall execute a written
contract with the City within ten (10) calendar days after notice of the award has been sent by
mail to it at the address given in its proposal. The contract shall be made in the form adopted by
the City and incorporated in these specifications.
CONTRACT PERFORMANCE
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12. Insurance Requirements. The Contractor shall provide proof of insurance in the form, coverages
and amounts specified in Section E of these specifications within 10 (ten) calendar days after
notice of contract award as a precondition to contract execution.
13. Business License & Tax. The Contractor must have a valid City of San Luis Obispo business license
& tax certificate before execution of the contract. Additional information regarding the City’s
business tax program may be obtained by calling (805) 781-7134.
14. Ability to Perform. The Contractor warrants that it possesses, or has arranged through
subcontracts, all capital and other equipment, labor, materials, and licenses necessary to carry
out and complete the work hereunder in compliance with all federal, state, county, city, and
special district laws, ordinances, and regulations.
15. Laws to be Observed. The Contractor shall keep itself fully informed of and shall observe and
comply with all applicable state and federal laws and county and City of San Luis Obispo
ordinances, regulations and adopted codes during its performance of the work.
16. Payment of Taxes. The contract prices shall include full compensation for all taxes that the
Contractor is required to pay.
17. Permits and Licenses. The Contractor shall procure all permits and licenses, pay all charges and
fees, and give all notices necessary.
18. Safety Provisions. The Contractor shall conform to the rules and regulations pertaining to safety
established by OSHA and the California Division of Industrial Safety.
19. Public and Employee Safety. Whenever the Contractor’s operations create a condition hazardous
to the public or City employees, it shall, at its expense and without cost to the City, furnish, erect
and maintain such fences, temporary railings, barricades, lights, signs and other devices and take
such other protective measures as are necessary to prevent accidents or damage or injury to the
public and employees.
20. Preservation of City Property. The Contractor shall provide and install suitable safeguards,
approved by the City, to protect City property from injury or damage. If City property is injured
or damaged resulting from the Contractor’s operations, it shall be replaced or restored at the
Contractor’s expense. The facilities shall be replaced or restored to a condition as good as when
the Contractor began work.
21. Immigration Act of 1986. The Contractor warrants on behalf of itself and all subcontractors
engaged for the performance of this work that only persons authorized to work in the United
State pursuant to the Immigration Reform and Control Act of 1986 and other applicable laws shall
be employed in the performance of the work hereunder.
22. Contractor Non-Discrimination. In the performance of this work, the Contractor agrees that it
will not engage in, nor permit such subcontractors as it may employ, to engage in discrimination
in employment of persons because of age, race, color, sex, national origin or ancestry, sexual
orientation, or religion of such persons.
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23. Work Delays. Should the Contractor be obstructed or delayed in the work required to be done
hereunder by changes in the work or by any default, act, or omission of the City, or by strikes, fire,
earthquake, or any other Act of God, or by the inability to obtain materials, equipment, or labor
due to federal government restrictions arising out of defense or war programs, then the time of
completion may, at the City’s sole option, be extended for such periods as may be agreed upon
by the City and the Contractor. In the event that there is insufficient time to grant such extensions
prior to the completion date of the contract, the City may, at the time of acceptance of the work,
waive liquidated damages that may have accrued for failure to complete on time, due to any of
the above, after hearing evidence as to the reasons for such delay, and making a finding as to the
causes of same.
24. Payment Terms. The City’s payment terms are 30 days from the receipt of an original invoice and
acceptance by the City of the materials, supplies, equipment, or services provided by the
Contractor (Net 30).
25. Inspection. The Contractor shall furnish City with every reasonable opportunity for City to
ascertain that the services of the Contractor are being performed in accordance with the
requirements and intentions of this contract. All work done, and all materials furnished, if any,
shall be subject to the City’s inspection and approval. The inspection of such work shall not relieve
Contractor of any of its obligations to fulfill its contract requirements.
26. Audit. The City shall have the option of inspecting and/or auditing all records and other written
materials used by Contractor in preparing its invoices to City as a condition precedent to any
payment to Contractor.
27. Interests of Contractor. The Contractor covenants that it presently has no interest, and shall not
acquire any interest—direct, indirect or otherwise—that would conflict in any manner or degree
with the performance of the work hereunder. The Contractor further covenants that, in the
performance of this work, no subcontractor or person having such an interest shall be employed.
The Contractor certifies that no one who has or will have any financial interest in performing this
work is an officer or employee of the City. It is hereby expressly agreed that, in the performance
of the work hereunder, the Contractor shall at all times be deemed an independent contractor
and not an agent or employee of the City.
28. Hold Harmless and Indemnification.
(a) Non-design, non-construction Professional Services: To the fullest extent permitted by law
(including, but not limited to California Civil Code Sections 2782 and 2782.8), Consultant shall
indemnify, defend, and hold harmless the City, and its elected officials, officers, employees,
volunteers, and agents (“City Indemnitees”), from and against any and all causes of action, claims,
liabilities, obligations, judgments, or damages, including reasonable legal counsels’ fees and costs
of litigation (“claims”), arising out of the Consultant’s performance or Consultant’s failure to
perform its obligations under this Agreement or out of the operations conducted by Consultant,
including the City’s active or passive negligence, except for such loss or damage arising from the
sole negligence or willful misconduct of the City. In the event the City Indemnitees are made a
party to any action, lawsuit, or other adversarial proceeding arising from Consultant’s
performance of this Agreement, the Consultant shall provide a defense to the City Indemnitees
or at the City’s option, reimburse the City Indemnitees their costs of defense, including reasonable
legal fees, incurred in defense of such claims.
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(b) Non-design, construction Professional Services: To the extent the Scope of Services involve a
“construction contract” as that phrase is used in Civil Code Section 2783, this paragraph shall
apply in place of paragraph A. To the fullest extent permitted by law (including, but not limited to
California Civil Code Sections 2782 and 2782.8), Consultant shall indemnify, defend, and hold
harmless the City, and its elected officials, officers, employees, volunteers, and agents (“City
Indemnitees”), from and against any and all causes of action, claims, liabilities, obligations,
judgments, or damages, including reasonable legal counsels’ fees and costs of litigation (“claims”),
arising out of the Consultant’s performance or Consultant’s failure to perform its obligations
under this Agreement or out of the operations conducted by Consultant, except for such loss or
damage arising from the active negligence, sole negligence or willful misconduct of the City. In
the event the City Indemnitees are made a party to any action, lawsuit, or other adversarial
proceeding arising from Consultant’s performance of this Agreement, the Consultant shall provide
a defense to the City Indemnitees or at the City’s option, reimburse the City Indemnitees their
costs of defense, including reasonable legal fees, incurred in defense of such claims.
(c) Design Professional Services: In the event Consultant is a “design professional”, and the Scope
of Services require Consultant to provide “design professional services” as those phrases are used
in Civil Code Section 2782.8, this paragraph shall apply in place of paragraphs A or B. To the fullest
extent permitted by law (including, but not limited to California Civil Code Sections 2782 and
2782.8) Consultant shall indemnify, defend and hold harmless the City and its elected officials,
officers, employees, volunteers and agents (“City Indemnitees”), from and against all claims,
damages, injuries, losses, and expenses including costs, attorney fees, expert consultant and
expert witness fees arising out of, pertaining to or relating to, the negligence, recklessness or
willful misconduct of Consultant, except to the extent caused by the sole negligence, active
negligence or willful misconduct of the City. Negligence, recklessness or willful misconduct of any
subcontractor employed by Consultant shall be conclusively deemed to be the negligence,
recklessness or willful misconduct of Consultant unless adequately corrected by Consultant. In
the event the City Indemnitees are made a party to any action, lawsuit, or other adversarial
proceeding arising from Consultant’s performance of this Agreement, the Consultant shall provide
a defense to the City Indemnitees or at the City’s option, reimburse the City Indemnitees their
costs of defense, including reasonable legal fees, incurred in defense of such claims. In no event
shall the cost to defend charged to Consultant under this paragraph exceed Consultant’s
proportionate percentage of fault. However, notwithstanding the previous sentence, in the event
one or more defendants is unable to pay its share of defense costs due to bankruptcy or
dissolution of the business, Consultant shall meet and confer with other parties regarding unpaid
defense costs.
(d) The review, acceptance or approval of the Consultant’s work or work product by any
indemnified party shall not affect, relieve or reduce the Consultant’s indemnification or defense
obligations. This Section survives completion of the services or the termination of this contract.
The provisions of this Section are not limited by and do not affect the provisions of this contract
relating to insurance.
29. Contract Assignment. The Contractor shall not assign, transfer, convey or otherwise dispose of
the contract, or its right, title or interest, or its power to execute such a contract to any individual
or business entity of any kind without the previous written consent of the City.
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30. Termination for Convenience. The City may terminate all or part of this Agreement for any or no
reason at any time by giving 30 days written notice to Contractor. Should the City terminate this
Agreement for convenience, the City shall be liable as follows: (a) for standard or off-the-shelf
products, a reasonable restocking charge not to exceed ten (10) percent of the total purchase
price; (b) for custom products, the less of a reasonable price for the raw materials, components
work in progress and any finished units on hand or the price per unit reflected on this Agreement.
For termination of any services pursuant to this Agreement, the City’s liability will be the lesser of
a reasonable price for the services rendered prior to termination, or the price for the services
reflected on this Agreement. Upon termination notice from the City, Contractor must, unless
otherwise directed, cease work and follow the City’s directions as to work in progress and finished
goods.
31. Termination. If, during the term of the contract, the City determines that the Contractor is not
faithfully abiding by any term or condition contained herein, the City may notify the Contractor in
writing of such defect or failure to perform. This notice must give the Contractor a 10 (ten)
calendar day notice of time thereafter in which to perform said work or cure the deficiency.
If the Contractor has not performed the work or cured the deficiency within the ten days specified
in the notice, such shall constitute a breach of the contract and the City may terminate the
contract immediately by written notice to the Contractor to said effect. Thereafter, neither party
shall have any further duties, obligations, responsibilities, or rights under the contract except,
however, any and all obligations of the Contractor’s surety shall remain in full force and effect,
and shall not be extinguished, reduced, or in any manner waived by the terminations thereof.
In said event, the Contractor shall be entitled to the reasonable value of its services performed
from the beginning date in which the breach occurs up to the day it received the City’s Notice of
Termination, minus any offset from such payment representing the City’s damages from such
breach. “Reasonable value” includes fees or charges for goods or services as of the last milestone
or task satisfactorily delivered or completed by the Contractor as may be set forth in the
Agreement payment schedule; compensation for any other work, services or goods performed or
provided by the Contractor shall be based solely on the City’s assessment of the value of the work-
in-progress in completing the overall work scope.
The City reserves the right to delay any such payment until completion or confirmed
abandonment of the project, as may be determined in the City’s sole discretion, so as to permit a
full and complete accounting of costs. In no event, however, shall the Contractor be entitled to
receive in excess of the compensation quoted in its proposal.
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SPECIAL TERMS AND CONDITIONS
1. Contract Award. Subject to the reservations set forth in Paragraph 9 of Section B (General Terms
and Conditions) of these specifications, the contract will be awarded to the lowest responsible,
responsive proposer.
2. Sales Tax Reimbursement.
For sales occurring within the City of San Luis Obispo, the City receives sales tax revenues.
Therefore, for bids from retail firms located in the City at the time of proposal closing for which
sales tax is allocated to the City, 1% of the taxable amount of the bid will be deducted from the
proposal by the City in calculating and determining the lowest responsible, responsive proposer.
3. Labor Actions.
In the event that the successful proposer is experiencing a labor action at the time of contract
award (or if its suppliers or subcontractors are experiencing such a labor action), the City reserves
the right to declare said proposer is no longer the lowest responsible, responsive proposer and to
accept the next acceptable low proposal from a proposer that is not experiencing a labo r action,
and to declare it to be the lowest responsible, responsive proposer.
4. Failure to Accept Contract.
The following will occur if the proposer to whom the award is made (Contractor) fails to enter into
the contract: the award will be annulled; any bid security will be forfeited in accordance with the
special terms and conditions if a proposer's bond or security is required; and an award may be
made to the next lowest responsible, responsive proposer who shall fulfill every stipulation as if
it were the party to whom the first award was made.
5. Contract Term.
The supplies or services identified in this specification will be used by the City for up to one year.
The prices quoted for these items must be valid for the entire period indicated above unless
otherwise conditioned by the proposer in its proposal.
6. Contract Extension.
The term of the contract may be extended by mutual consent for an additional one-year, and
annually thereafter, for a total of four years.
7. Supplemental Purchases
Supplemental Purchases. Supplemental purchases may be made from the successful proposer
during the contract term in addition to the items listed in the Detail Proposal Submittal Form. For
these supplemental purchases, the proposer shall not offer prices to the City in excess of the
amounts offered to other similar customers for the same item. If the proposer is willing to offer
the City a standard discount on all supplemental purchases from its generally prevailing or
published price structure during the contract term, this offer and the amount of discount on a
percentage basis should be provided with the proposal submittal.
8. Contractor Invoices.
The Contractor may deliver either a monthly invoice to the City with attached copies of detail
invoices as supporting detail, or in one lump-sum upon completion.
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9 Non-Exclusive Contract. The City reserves the right to purchase the items listed in the Detail
Proposal Submittal Form, as well as any supplemental items, from other vendors during the
contract term.
10. Unrestrictive Brand Names. Any manufacturer's names, trade names, brand names or catalog
numbers used in the specifications are for the purpose of describing and establishing general
quality levels. Such references are not intended to be restrictive. Proposals will be considered for
any brand that meets or exceeds the quality of the specifications given for any item. In the event
an alternate brand name is proposed, supplemental documentation shall be provided
demonstrating that the alternate brand name meets or exceeds the requirements specified
herein. The burden of proof as to the suitability of any proposed alternatives is upon the proposer,
and the City shall be the sole judge in making this determination.
11. Delivery. Prices quoted for all supplies or equipment to be provided under the terms and
conditions of this RFP package shall include delivery charges, to be delivered F.O.B. San Luis
Obispo by the successful proposer and received by the City within 90 days after authorization to
proceed by the City.
12. Start and Completion of Work. Work on this project shall begin immediately after contract
execution and shall be completed within 90 calendar days thereafter, unless otherwise negotiated
with City by mutual agreement.
13. Change in Work. The City reserves the right to change quantities of any item after contract award.
If the total quantity of any changed item varies by 25% or less, there shall be no change in the
agreed upon unit price for that item. Unit pricing for any quantity changes per item in excess of
25% shall be subject to negotiation with the Contractor.
14. Submittal of References. Each proposer shall submit a statement of qualifications and references
on the form provided in the RFP package.
15. Statement of Contract Disqualifications. Each proposer shall submit a statement regarding any
past governmental agency bidding or contract disqualifications on the form provided in the RFP
package.
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PROPOSAL CONTENT
1. Proposal Content. Your proposal must include the following information:
Submittal Forms
a. Proposal submittal summary.
b. Certificate of insurance.
c. References from at least three firms for whom you have provided similar services.
Qualifications
d. Experience of your firm in performing work and projects relevant to the Scope of Services
outlined and described in the request.
e. Resumes of the individuals who would be assigned to this project with their corollary
experience highlighted and specific roles in this project clearly described.
f. Statement and explanation of any instances where your firm or sub-consultant has been
removed from a project or disqualified from proposing on a project.
Work Program
g. Detailed description of your approach to completing the work.
h. Detailed schedule by task and sub-task for completing the work.
i. Estimated hours for your staff in performing each phase and task of the work, including
sub-consultants, so we can clearly see who will be doing what work, and how much time
it will take.
j. Detailed budget by task and sub-task for completing the work.
k. Services or data to be provided by the City.
l. Services and deliverables provided by the Consultant(s).
m. Any other information that would assist us in making this contract award decision.
n. Description of assumptions critical to development of the response which may impact
cost or scope.
Requested Changes to Terms and Conditions
o. The City desires to begin work soon after selecting the preferred Consultant Team. To
expedite the contracting process, each submittal shall include requested redlined changes
to terms and conditions, if necessary.
Proposal Length
p. Proposal length should only be as long as required to be responsive to the RFP, including
attachments and supplemental materials.
2. Proposal Evaluation and Selection. Proposals will be evaluated by a review committee and
evaluated on the following criteria:
a. Understanding of the work required by the City.
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b. Quality, clarity and responsiveness of the proposal.
c. Demonstrated competence and professional qualifications necessary for successfully
performing the work required by the City.
d. Recent team experience in successfully performing similar services.
e. Creativity of the proposed approach in completing the work.
f. Value
g. Writing skills.
h. References.
i. Background and experience of the specific individuals managing and assigned to this
project.
As reflected above, contract award will not be based solely on price, but on a combination of factors as
determined to be in the best interest of the City. After evaluating the proposals and discussing them
further with the finalists or the tentatively selected contractor, the City reserves the right to further
negotiate the proposed work and/or method and amount of compensation.
3. Proposal Review and Award Schedule. The following is an outline of the anticipated schedule for
proposal review and contract award:
Preliminary Schedule Tasks
12/10/2019 • Issue RFP
12/19/2019 • Pre-proposal Conference
01/07/2020 • Receive proposals
01/24/2020 • Complete proposal evaluation
Week of 01/27/2020 • Conduct finalist interviews
02/03/2020 • Finalize staff recommendation
02/10/2020 • Award/execute contract (by City Manager)
02/17/2020 • Start Work
4. Pre-Proposal Conference. An optional pre-proposal conference will be held at the following
location, date, and time to answer any questions that prospective bidders may have regarding
this RFP:
Thursday, December 19, 2019 11 am PST
879 Morro St. San Luis Obispo
5. Ownership of Materials. All original drawings, plan documents and other materials prepared by
or in possession of the Contractor as part of the work or services under these specifications shall
become the permanent property of the City and shall be delivered to the City upon demand.
6. Release of Reports and Information. Any reports, information, data, or other material given to,
prepared by or assembled by the Contractor as part of the work or services under these
specifications shall be the property of the City and shall not be made available to any individual
or organization by the Contractor without the prior written approval of the City.
7. Copies of Reports and Information. If the City requests additional copies of reports, drawings,
specifications, or any other material in addition to what the Contractor is required to furnish in
limited quantities as part of the work or services under these specifications, the Contractor shall
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provide such additional copies as are requested, and City shall compensate the Contractor for the
costs of duplicating of such copies at the Contractor's direct expense.
8. Required Deliverable Products. The Contractor will be required to provide:
a. One electronic submission - digital-ready original .pdf of all final documents. If you wish
to file a paper copy, please submit in sealed envelope to the address provided in the RFP.
b. Corresponding computer files compatible with the following programs whenever possible
unless otherwise directed by the project manager:
Word Processing: MS Word
Spreadsheets: MS Excel
Desktop Publishing: InDesign
Virtual Models: Sketch Up
Digital Maps: Geodatabase shape files in
State Plan Coordinate System as
specified by City GIS staff
c. City staff will review any documents or materials provided by the Contractor and, where
necessary, the Contractor will be required to respond to staff comments and make such
changes as deemed appropriate.
ALTERNATIVE PROPOSALS
9. Alternative Proposals. The proposer may submit an alternative proposal (or proposals) that it
believes will also meet the City's project objectives but in a different way. In this case, the
proposer must provide an analysis of the advantages and disadvantages of each of the alternative
and discuss under what circumstances the City would prefer one alternative to the other(s).
10. Attendance at Meetings and Hearings. As part of the work scope and included in the contract
price is attendance by the Contractor at up to [number] public meetings to present and discuss
its findings and recommendations. Contractor shall attend as many "working" meetings with staff
as necessary in performing work-scope tasks.
11. Accuracy of Specifications. The specifications for this project are believed by the City to be
accurate and to contain no affirmative misrepresentation or any concealment of fact. Bidders are
cautioned to undertake an independent analysis of any test results in the specifications, as City
does not guaranty the accuracy of its interpretation of test results contained in the specifications
package. In preparing its proposal, the bidder and all subcontractors named in its proposal shall
bear sole responsibility for proposal preparation errors resulting from any misstatements or
omissions in the plans and specifications that could easily have been ascertained by examining
either the project site or accurate test data in the City's possession. Although the effect of
ambiguities or defects in the plans and specifications will be as determined by law, any patent
ambiguity or defect shall give rise to a duty of bidder to inquire prior to proposal submittal. Failure
to so inquire shall cause any such ambiguity or defect to be construed against the bidder. An
ambiguity or defect shall be considered patent if it is of such a nature that the bidder, assuming
reasonable skill, ability and diligence on its part, knew or should have known of the existence of
the ambiguity or defect. Furthermore, failure of the bidder or subcontractors to notify City in
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writing of specification or plan defects or ambiguities prior to proposal submittal shall waive any
right to assert said defects or ambiguities subsequent to submittal of the proposal.
To the extent that these specifications constitute performance specifications, the City shall not be
liable for costs incurred by the successful bidder to achieve the project’s objective or standard
beyond the amounts provided there for in the proposal.
In the event that, after awarding the contract, any dispute arises as a result of any actual or alleged
ambiguity or defect in the plans and/or specifications, or any other matter whatsoever,
Contractor shall immediately notify the City in writing, and the Contractor and all subcontractors
shall continue to perform, irrespective of whether or not the ambiguity or defect is major,
material, minor or trivial, and irrespective of whether or not a change order, time extension, or
additional compensation has been granted by City. Failure to provide the hereinbefore described
written notice within one (1) working day of contractor's becoming aware of the facts giving rise
to the dispute shall constitute a waiver of the right to assert the causative role of the defect or
ambiguity in the plans or specifications concerning the dispute.
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SECTION G: FORM OF AGREEMENT
AGREEMENT
THIS AGREEMENT is made and entered into in the City of San Luis Obispo on [day, date, year] by
and between the CITY OF SAN LUIS OBISPO, a municipal corporation, hereinafter referred to as City, and
[CONTRACTOR’S NAME IN CAPITAL LETTERS], hereinafter referred to as Contractor.
W I T N E S S E T H:
WHEREAS, on [date], City requested proposals for [______________], per Project No. [xxxx]
WHEREAS, pursuant to said request, Contractor submitted a proposal that was accepted by City
for said project;
NOW THEREFORE, in consideration of their mutual promises, obligations and covenants
hereinafter contained, the parties hereto agree as follows:
1. TERM. The term of this Agreement shall be from the date this Agreement is made and
entered, as first written above, until acceptance or completion of said project.
2. INCORPORATION BY REFERENCE. City Project No. [xxxxx] and Contractor’ proposal dated
[date], are hereby incorporated in and made a part of this Agreement. Should there be any conflict
between terms set forth in the City Project No. [xxxxx] and Contractor’ proposal dated [date], the terms
in this agreement and City Project No. [xxxxx] will govern.
3. CITY'S OBLIGATIONS. For providing the services as specified in this Agreement, City will
pay, and Contractor shall receive therefore compensation [xxxxxxx]. Contractor shall be eligible for
compensation installments after completion of milestone Tasks -E as shown in the attached project
schedule.
4. CONSULTANT’S OBLIGATIONS. For and in consideration of the payments and
agreements hereinbefore mentioned to be made and performed by City, Contractor agrees with City to
do everything required by this Agreement and the said specifications.
5. AMENDMENTS. Any amendment, modification or variation from the terms of this
Agreement shall be in writing and shall be effective only upon approval by the City Manager.
6. COMPLETE AGREEMENT. This written Agreement, including all writings specifically
incorporated herein by reference, shall constitute the complete agreement between the parties hereto.
No oral agreement, understanding or representation not reduced to writing and specifically incorporated
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herein shall be of any force or effect, nor shall any such oral agreement, understanding or representation
be binding upon the parties hereto.
7. NOTICE. All written notices to the parties hereto shall be sent by United States mail,
postage prepaid by registered or certified mail addressed as follows:
City Name
Dept.
Address
Consultant Name
Title
Address
Address
8. AUTHORITY TO EXECUTE AGREEMENT. Both City and Contractor do covenant that
everyone executing this agreement on behalf of each party is a person duly authorized and empowered
to execute Agreements for such party.
IN WITNESS WHEREOF, the parties hereto have caused this instrument to be executed the day
and year first above written.
CITY OF SAN LUIS OBISPO:
By:_____________________________________
City Manager
APPROVED AS TO FORM: CONSULTANT:
________________________________ By: _____________________________________
City Attorney Name of CAO / President
Its: CAO / President
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SECTION H: INSURANCE REQUIREMENTS
Operation & Maintenance Contracts
The Contractor shall procure and maintain for the duration of the contract insurance against claims for
injuries to persons or damages to property that may arise from or in connection with the performance of
the work hereunder by the Contractor, its agents, representatives, employees or subcontractors.
Minimum Scope of Insurance. Coverage shall be at least as broad as:
1. Insurance Services Office Commercial General Liability coverage (occurrence form CG 0001).
2. Insurance Services Office form number CA 0001 (Ed. 1/87) covering Automobile Liability, code 1
(any auto).
3. Workers' Compensation insurance as required by the State of California and Employer's Liability
Insurance.
Minimum Limits of Insurance. Contractor shall maintain limits no less than:
1. General Liability: $1,000,000 per occurrence for bodily injury, personal injury and property
damage. If Commercial General Liability or other form with a general aggregate limit is used,
either the general aggregate limit shall apply separately to this project/location or the general
aggregate limit shall be twice the required occurrence limit.
2. Automobile Liability: $1,000,000 per accident for bodily injury and property damage.
3. Employer's Liability: $1,000,000 per accident for bodily injury or disease.
Deductibles and Self-Insured Retentions. Any deductibles or self-insured retentions must be declared to
and approved by the City. At the option of the City, either: the insurer shall reduce or eliminate such
deductibles or self-insured retentions as respects the City, its officers, officials, employees and volunteers;
or the Contractor shall procure a bond guaranteeing payment of losses and related investigations, claim
administration and defense expenses.
Other Insurance Provisions. The general liability and automobile liability policies are to contain, or be
endorsed to contain, the following provisions:
1. The City, its officers, officials, employees, agents and volunteers are to be covered as insureds as
respects: liability arising out of activities performed by or on behalf of the Contractor; products
and completed operations of the Contractor; premises owned, occupied or used by the
Contractor; or automobiles owned leased, hired or borrowed by the Contractor. The coverage
shall contain no special limitations on the scope of protection afforded to the City, its officers,
official, employees, agents or volunteers.
2. For any claims related to this project, the Contractor's insurance coverage shall be primary
insurance as respects the City, its officers, officials, employees, agents and volunteers. Any
insurance or self-insurance maintained by the City, its officers, officials, employees, agents or
volunteers shall be excess of the Contractor's insurance and shall not contribute with it.
3. The Contractor's insurance shall apply separately to each insured against whom claim is made or
suit is brought, except with respect to the limits of the insurer's liability.
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4. Each insurance policy required by this clause shall be endorsed to state that coverage shall not be
suspended, voided, canceled by either party, reduced in coverage or in limits except after thirty
(30) days' prior written notice by certified mail, return receipt requested, has been given to the
City.
Acceptability of Insurers. Insurance is to be placed with insurers with a current A.M. Best's rating of no
less than A:VII.
Verification of Coverage. Contractor shall furnish the City with a certificate of insurance showing required
coverage. Original endorsements effecting general liability and automobile liability coverage are also
required by this clause. The endorsements are to be signed by a person authorized by that insurer to bind
coverage on its behalf. All endorsements are to be received and approved by the City before work
commences.
Subcontractors. Contractor shall include all subcontractors as insured under its policies or shall furnish
separate certificates and endorsements for each subcontractor. All coverages for subcontractors shall be
subject to all of the requirements stated herein.
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SECTION I: PROPOSAL SUBMITTAL FORM
The undersigned declares that she or he has carefully examined Project No. [xxxx] which is hereby made
a part of this proposal; is thoroughly familiar with its contents; is authorized to represent the proposing
firm; and agrees to perform the specified work for the following cost quoted in full:
BID ITEM: METER READING
Per Meter Price
Additional Charges
TOTAL $
BID ITEM: OPTIONAL SERVICE 1
Per Service Request
Additional Charges
TOTAL $
BID ITEM: OPTIONAL SERVICE 2
Per Meter Replacement
Additional Charges
TOTAL $
BID ITEM: OPTIONAL SERVICE 3
Per Meter Price
Additional Charges
TOTAL $
Delivery of equipment to the City to be within _______ calendar days after contract execution and written
authorization to proceed.
❑ Certificate of insurance attached; insurance company’s A.M. Best rating: __________________.
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Firm Name and Address
Contact Phone
Signature of Authorized Representative
Date
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City of San Luis Obispo
Specification No. 9xxxx
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REFERENCES
Number of years engaged in providing the services included within the scope of the specifications under
the present business name: .
Describe fully the last three contracts performed by your firm that demonstrate your ability to provide
the services included with the scope of the specifications. Attach additional pages if required. The City
reserves the right to contact each of the references listed for additional information regarding your firm's
qualifications.
Reference No. 1:
Agency Name
Contact Name
Telephone & Email
Street Address
City, State, Zip Code
Description of services provided
including contract amount, when
provided and project outcome
Reference No. 2:
Agency Name
Contact Name
Telephone & Email
Street Address
City, State, Zip Code
Description of services provided
including contract amount, when
provided and project outcome
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City of San Luis Obispo
Specification No. 9xxxx
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Reference No. 3
Agency Name
Contact Name
Telephone & Email
Street Address
City, State, Zip Code
Description of services provided
including contract amount, when
provided and project outcome
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City of San Luis Obispo
Specification No. 9xxxx
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STATEMENT OF PAST CONTRACT DISQUALIFICATIONS
The proposer shall state whether it or any of its officers or employees who have a proprietary interest in
it, has ever been disqualified, removed, or otherwise prevented from bidding on, or completing a federal,
state, or local government project because of the violation of law, a safety regulation, or for any other
reason, including but not limited to financial difficulties, project delays, or disputes regarding work or
product quality, and if so to explain the circumstances.
◼ Do you have any disqualification as described in the above paragraph to declare?
Yes ❑ No ❑
◼ If yes, explain the circumstances.
Executed on at _______________________________________ under penalty of
perjury of the laws of the State of California, that the foregoing is true and correct.
______________________________________
Signature of Authorized Proposer Representative
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City of San Luis Obispo
Specification No. 9xxxx
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BIDDERS LIST
Business Name
Contact Name
Address
City, State and Zip Code
Phone No.
Fax No.
Business Name
Contact Name
Address
City, State and Zip Code
Phone No.
Fax No.
Business Name
Contact Name
Address
City, State and Zip Code
Phone No.
Fax No.
Business Name
Contact Name
Address
City, State and Zip Code
Phone No.
Fax No.
Business Name
Contact Name
Address
City, State and Zip Code
Phone No.
Fax No.
Business Name
Contact Name
Address
City, State and Zip Code
Phone No.
Fax No.
NOTE: Not to be included with Bidder's Package when mailed or handed out. This should be included
and referenced as an attachment to the Council Agenda Report or City Manager Report.
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Department Name: Utilities
Cost Center: 6003 and 6104
For Agenda of: December 3, 2019
Placement: Consent
Estimated Time: N/A
FROM: Aaron Floyd, Utilities Director
Prepared By: Jennifer Thompson, Utilities Business Manager
SUBJECT: EQUIPMENT SURPLUS DESIGNATION AND AUTHORIZATION OF SALE
RECOMMENDATION
Authorize the designation and disposal of surplus items in accordance with the City’s policies
and procedures as prescribed in the Financial Management Manual Sections 405-L, 480-A, and
480-B.
DISCUSSION
Background
The City has policies and procedures governing the designation of surplus property. This report
discusses several items no longer used by the Utilities Department which are of a value and
require Council approval prior to their sale.
Surplus Items
Flowtronix Pump Skid - This pump skid was
part of the 2008 Water Treatment Plant
upgrade and was to be used as the plant water
feed skid. Unfortunately, it was undersized
by the engineer. As a result, a new properly
sized pump skid was purchased (at the
expense of the design engineer) and this skid
was “leftover”. The Water Treatment Plant
Supervisor has confirmed with the design
engineers that it cannot be used for the
upcoming plant upgrade. The estimated value
of the Flowtronix Pump Skid is $10,000.
Figure 1- Flowtronix Pump Skid
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Walkie Stacker - This was also purchased as
part of the 2008 upgrade and was to be used to
move pallets of E-38 polymer for the Actiflo
process. The batteries in this unit are now
unserviceable, and replacement batteries are
approximately $8,000. This unit has been
sitting idle for the last decade and is not needed
at the plant. Staff now have a forklift at the
plant that is used for this purpose. The
estimated value of the Walkie Stacker is
$2,000.
Neuros Blower - The Neuros high-speed blower
provides aeration to the activated sludge treatment
at the Water Resource Recovery Facility (WRRF).
The blower will no longer be needed as it will be
replaced by a different model as part of the WRRF
upgrade. The estimated value of the Neuros
Blower is $100,000.
Figure 2 – Walkie Stacker
Figure 3 - Neuros Blower
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Policy Context
In compliance with the City’s Charter Section 906, policies and procedures which govern how
surplus materials are disposed of are provided in Sections 480-A and 480-B of the Financial
Management Manual (Attachments A and B). The items recommended for surplus are no longer
used and are ready to be designated as surplus. Some of these items have an estimated value of
more than $1,000 and therefore require Council approval before they can be sold.
Public Engagement
This is an administrative item, so no outside public engagement was completed. Public comment
can be provided to the City Council through written correspondence prior to the meeting and
through public testimony at the meeting.
CONCURRENCE
Not Applicable.
ENVIRONMENTAL REVIEW
The California Environmental Quality Act does not apply to the recommended action in this
report, because the sale of surplus property is not a project.
FISCAL IMPACT
Budgeted: No Budget Year: 2020
Funding Identified: N/A
Fiscal Analysis:
Funding
Sources
Total Budget
Available
Current Funding
Request
Remaining
Balance
Annual
Ongoing Cost
General Fund $ $ $ $
State
Federal
Fees
Other:
Total $0 $0 $0 $0
Fund Estimated Revenue
Water Fund $12,000
Sewer Fund $100,000
Total $112,000
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Staff anticipates the sale of these surplus items will generate approximately $112,000 in revenue
The property will be sold on publicsurplus.com, the City’s approved auction website, which
charges a 10% fee to the buyer so the City will not pay service fees. Funds generated by the sale
of surplus items at the Water Treatment Plant will be returned to the Water Fund. Funds
generated by the sale of surplus items at the Water Resource Recovery Facility will be return ed
to the Sewer Fund.
ALTERNATIVES
Deny Surplus designation and sale. The City Council could reject the surplus designation
request and direct staff to maintain all items. Staff does not recommend this option because these
items are no longer in use.
Attachments:
a - Financial Plan Manual Section 480-A (Surplus Property Policy)
b - Financial Management Manual Section 480-B (Auction Firm Services)
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Item 8
Section 480-A
SURPLUS PERSONAL AND UNCLAIMED PROPERTY POLICY
OVERVIEW
This policy addresses the procedures for the disposal of surplus personal property, unclaimed
property, consumable supplies, and junk. The policies and procedures for the disposal or sale of
surplus real property, abandoned property and resale inventory are provided in other policy
documents.
In preparing this policy, not all issues or exceptions could be anticipated. Accordingly, the
guidance given in this policy does not relieve Staff from exercising good judgment in their
stewardship of the City's property resources. Whenever there is a question or doubt between the
guidance provided in this policy and the good judgment expected of a prudent person, good
judgment should always be the prevailing standard, with this policy as a minimum standard.
LEGISLATIVE POLICY
A. Surplus Property
Section 906 of the City Charter provides that the Council must approve the sale of surplus
property (real or personal) with an estimated value greater than $1,000.
B. Unclaimed Property
1. Chapter 3.32 of the City Municipal Code provides for the disposal of unclaimed
property by the Chief of Police. This property must be held for a minimum of
four months and notice of sale must be given at least five days prior to sale by
publication in a newspaper of general circulation. Property not sold may be
destroyed by the Police Department after public auction.
2. Sections 2080.4 and 2080.6 of the Civil Code requires any person finding
property valued at $10.00 or more to turn the property over to the Police
Department within a reasonable time, stating when and where the property was
found and providing a description of the property. If the property was saved, a
statement is required from the "finder" describing:
a. From what and how it was saved.
b. Whether the owner of the property is known to the "finder".
c. That the property has not been secreted, withheld, or partially disposed.
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ADMINISTRATIVE POLICY
A. The Director of Finance & Information Technology (IT) is authorized to declare as
surplus those items of personal property and consumable supplies estimated to be less
than $1,000 in value; Council approval is required to declare personal and consumable
supplies as surplus with a value of $1,000.
B. Department Heads are authorized to approve the disposal of property that is essentially
without value due to technical obsolescence or its unrepairable (or economically
unrepairable) condition. Department Heads may dispose of such junk property in the
manner they deem most appropriate, consistent with other rules, regulations, and the
City's ethics policy.
C. Generally, estimating the value of surplus property is made by the Department Head or
designated representative. In unique and unusual cases, Finance will assist Departments
in estimating the value of property by using the City's auction firm to provide a
professional estimate. However, in all cases, the Department Head must approve in
writing the estimated value of the property to be sold or otherwise disposed.
D. The Director of Finance & IT is authorized to sell, transfer, trade, or otherwise dispose of
surplus personal property, consumable supplies, or unclaimed property in the most cost
effective manner. Normally the sale of this property will be at auction with a firm
contracted to provide the following services:
1. Sell and dispose of personal property, consumable supplies and unclaimed
property at auction.
2. Provide professional estimates as to the value of personal property and
consumable supplies when required.
3. Assist in the sale of unique or special property and consumable supplies that
requires the use of a "specialty house" to sell or dispose of the property.
4. Dispose of unsaleable property, supplies and equipment at an approved disposal
site.
E. The Director of Finance & IT may dispose of surplus property and supplies by transfer to
another local government agency or non-profit organization based on the
recommendation of a Department Head. Although there may be circumstances where it is
appropriate to make such transfer without compensation, cash or in-kind services should
generally be received in an amount equal to or greater than the estimated value provided
by the City's auction firm or the Department Head. In the case of vehicles, "low blue
book value" may also be considered.
F. When it is a normal business practice, trade value should be obtained to determine the
most cost effective method of disposal and as a standard by which to evaluate the services
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Surplus Personal and Unclaimed Property Policy
of the City's auction firm. There may be circumstances when trade value of property may
exceed auction value, in which case the Director of Finance & IT may authorize the trade
of surplus property versus sale at auction based on the recommendation of the appropriate
Department head.
G. Advertising the sale of the City's property and unclaimed property will be made by the
City's auction firm in accordance with these procedures, the Auction Services Agreement,
and legislative policy. Accordingly, the advertising must disclose that the property for
sale at auction is either the surplus property of the City of San Luis Obispo or is
unclaimed property in the possession of the City and it must state the date and time of
sale. Property sold at auction will be advertised at least five days in a newspaper of
general circulation in the City of San Luis Obispo.
H. Property determined to be unclaimed by the Chief of Police may be sold at public auction
in accordance with these policies and procedures under the following conditions:
1. It is a thing which is commonly the subject of sale.
2. The owner cannot (with reasonable diligence) be found.
3. The owner, if identified, refuses to pay the reasonable charges incurred by the City
for storing and safeguarding of the property.
PROCEDURES
A. Surplus Personal Property and Consumable Supplies
1. Department Heads will identify personal property and supplies that are surplus to
their needs and notify the Director of Finance & IT by Memorandum to sell or
dispose of property identified, in accordance with City policy and procedures.
The property to be declared surplus will be listed and include the City Asset
Number (if applicable), a descriptive name of the property, quantity, pickup
location, estimated value, and name of the contract person with their extension
number. Separate memorandums must be prepared for property estimated to
exceed $1,000 in value and for property estimated to be less than $1,000 in value.
The memorandum (or listing) must indicate why the property is no longer
required.
2. Department Heads may request that Finance assist them in estimating the value of
personal property and consumable supplies. In such instances, Finance may
request the services of the City's auction firm in estimating these values.
However, these services are limited and should not be used except for unique and
unusual property.
3. Special handling will be required for the disposal of toxic and hazardous
materials, and should be coordinated with the City's Fire Department.
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4.After receipt of a request to dispose of personal property and consumable supplies
from a Department Head, Finance will circulate the list of property to other City
Departments as an advisory memorandum. The property listed may be claimed by
other Departments on a first come first serve basis. After 10 days from the date of
the advisory memorandum, this listing will be forwarded to the Housing
Authority, San Luis Coastal Unified School District, and United Way for their
information. If none of these agencies expresses interest in the remaining
property items within 10 days of receiving the listing, then the property will be
consigned to the City's auction firm for sale or other method of disposal as
determined by the Director of Finance & IT. Except in unusual circumstances,
surplus property will generally remain on site pending its final disposition. This
means that it is the responsibility of the interested party to make arrangements
with the disposing department to view the property, discuss its condition, and
coordinate any terms of transfer such as price, timing, and transportation.
5.For property with a value of $1,000 or more, the Director of Finance & IT will
prepare an Agenda Report for Council approval to declare the property as surplus
after review by the operating departments as described above and prior to the
consignment of property to the City's auction firm.
B. Evidence
The provisions of this policy do not address the disposal of property which is classified as
evidence. Evidence is governed by the provisions of the penal code and must be dealt
with accordingly. For example, evidence may be returned to the owner, subjected to lien,
or classed as contraband and accordingly destroyed. However, evidence may also be
determined by the Chief of Police to be unclaimed property and, in that event, will be
processed in accordance with the policies and procedures provided below.
C. Unclaimed Property
Unclaimed property received by the City will be processed as follows:
1.The Police Department is required to receive, hold, and safekeep all property
valued at more than $10 that is found within the City limits and turned in to the
Police Department for safekeeping. The owner will be notified as to where the
property may be claimed if the owner's identity can reasonably be determined.
2.If the owner appears within 120 days after receipt of the property by the Police
Department, proves ownership, and pays all reasonable charges, the Police
Department will return the property to the owner.
3.If the reported value of the property is fifty dollars or more (and no owner appears
and proves ownership within 120 days), the Police Department will publish a
notice, at least once, in a newspaper of general circulation. After seven days
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following the first published notice the following actions will be taken if no owner
appears and proves ownership of the property;
a. If the property was found in the course of employment by a City employee,
the property shall be sold at public auction.
b. The title shall vest in the person who found the property if he or she is
willing to pay the cost of the publication.
c. If the reported value of the property is less than $50 and no owner appears
and proves ownership of the property within 120 days, the title shall vest
in the person who found the property, unless the property was found in the
course of employment by a City employee, in which case the property shall
be sold at public auction.
d. Generally, the sale of unclaimed property will be made by the City's
auction firm; however, in unique circumstances, the Chief of Police may
request that Police Department staff conduct the auction. When the City's
auction firm is used, the firm must be notified in writing with a list of
property to be sold. This list does not require a statement of estimated
values. The letter will give the name of the contact person and extension
number, a short title property description, a pickup location, and a pickup
time.
e. Prior to sale, a listing of unclaimed property shall be provided to the
Director of Finance & IT, who will circulate this list as an advisory
memorandum to other City Departments. The property listed may be
claimed by other Departments on a first come first serve basis. After a 15
day period from the date of the advisory memorandum, the unclaimed
property will be available for sale at public auction according to policy.
f. The unclaimed property to be sold by the City's auction firm will be
transferred on consignment in accordance with the surplus property
policies.
g. Any property remaining unsold after being offered at public auction may
be destroyed or otherwise disposed of by the City's auction firm.
Approved by the City Manager on March 1, 1990; revised on January 14, 1994.
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Section 480-B
AUCTION FIRM SERVICES
OVERVIEW
To reduce staff time in the sale and disposal of property, to reduce the amount of space being
used to store surplus and unclaimed property, to improve the process of estimating the value of
surplus property, and to maximize the value of return on surplus property, the Department of
Finance & IT is authorized to contract with an auction firm to assist staff in the sale and disposal
of personal property, consumable supplies and unclaimed property on an "as available basis"
after authorization is given by the Council or the Director of Finance & IT to sell or dispose of
City property.
The policies and procedures provided below in conjunction with the City's auction firm will
provide the staff with the opportunity to systematize the sale and disposal of this property.
AUCTION FIRM RESPONSIBILITIES
The following responsibilities will normally be assigned to the City's auction firm by Agreement
between the City and the firm selected:
A. The auction firm will be required to pickup any and all "marketable" surplus property by
consignment and deliver this property to their premises where it shall be inventoried,
sorted, identified, and catalogued. An auction will be conducted within 30 days of receipt
of property and supplies.
B. The auction firm will make the necessary arrangements for offering the property for sale
by auction to the most qualified buyers to obtain the highest return possible. The auction
firm will advertise the auction in a manner that will obtain the maximum participation by
the public in at least one newspaper of general circulation in the City of San Luis Obispo
for a minimum of five days prior to a scheduled auction.
C. The property consigned to the auction firm will remain the property of the City until sold
or disposed in accordance with these procedures.
D. Property not sold at auction will be disposed by on of the following methods:
1. Consignment to a sub-contractor specializing in unique or special equipment and
material for which there is no local market.
2. Direct sale to a buyer of unique or special equipment and material for which there
is no local market.
3. By sale as salvage to a local dealer or any recycling firm.
4. By destruction at an appropriate landfill site and certification thereto.
5. Returned to the City.
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Auction Firm Services
E. The material and equipment not sold at auction will be disposed of by one of the methods
described above within 15 days from the date offered at auction. For the purpose of these
instructions, the City will give approval as to the disposal method based on the
recommendation of the auction firm and the method that is in the best interests of the
City.
F. The auction firm will provide the Department of Finance & IT with a list of consigned
property with a check for the net proceeds from the auction or specialty sale within 60
days of receipt of consigned material and equipment providing the following information:
1. City Asset number (if available)
2. Short title description of the property
3. Date of sale or disposal
4. Purchaser or the disposal site
5. Total purchase price
6. Auction fee
7. Net to City
8. Method of disposal (sale at auction, transfer to a specialty house for sale, direct
sale as salvage, transfer to an appropriate landfill or disposal site, return to City)
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Department Name: Community Development
Cost Center: 4003
For Agenda of: December 3, 2019
Placement: Consent
Estimated Time: N/A
FROM: Michael Codron, Community Development Director
Prepared By: Walter Oetzell, Assistant Planner
SUBJECT: HISTORIC SIGNIFICANCE DETERMINATION FOR A CONTRIBUTING
LIST PROPERTY AT 644 MOUNTAIN VIEW STREET
RECOMMENDATION
As recommended by the Cultural Heritage Committee (CHC), adopt a Resolution
(Attachment A) determining that the structure at 644 Mountain View Street does not meet
eligibility criteria for listing as an Historic Resource and removing the property from the
Contributing Properties List of Historic Resources.
DISCUSSION
The owner of the property at 644 Mountain View Street has applied for a determination of
historical significance of the property and requests that the property be removed from the City’s
Inventory of Historic Resources, as provided in the City’s Historic Preservation Ordinance
(SLOMC § 14.01.060 (C)).
Site and Setting
The property is a residential parcel on the north side of
Mountain View Street (Attachment B), at its
intersection with Hill Street. It lies within the Mt.
Pleasanton/Anholm neighborhood, characterized by
modest single-family dwellings built in the early 20th
Century. The area has not been established as a
Historical Preservation District.
The site is developed with two single-family
dwellings: the primary dwelling, built around 1925,
described as Colonial Revival Bungalow in style, and
a second dwelling behind it, of unknown construction
date (this second building does not have significance as a historic resource and is not the subject
of this application). The architect of the primary dwelling is unknown. Historic Survey file
records (Attachment C)1 provide limited architectural information about the property, noting ship
lap siding and hip roof.
1 CDD Historic Property Record (“Yellow File”) for 644 Mountain View St.
Figure 1: 644 Mountain View
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Historic Listing
Historic preservation policies are set out in the Conservation and Open Space Element (COSE)
of the City’s General Plan. Significant historic and architectural resource s are to be preserved
and rehabilitated, and their demolition, or substantial change to them, is to be avoided (COSE §
3.3). The City’s Historic Preservation Ordinance (SLOMC Ch. 14.01) implements these policies.
Property may be designated as a Contributing List Resource where buildings or other resources
maintain their historic and architectural character, and contribute, by themselves or in
conjunction with other structures, to the unique or historic character of a neighborhood, district,
or to the City as a whole.2
In 1999 this property was added to the City’s Inventory of Historic Resources as a Contributing
List Resource (Attachment D) as part of a group of 28 properties within the Mt. Pleasanton/
Anholm neighborhood. No further findings about the significance of the property were set out in
the adopted resolution.
EVALUATION
A narrative report3 discussing the property’s history and the architectural characteristics of the
primary dwelling on the property was submitted with this application (Attachment E) The report
discusses the City’s historical context and the history of the property, including interesting and
notable people and times, but does not identify significant associations with singularly important
persons or events that would serve as a basis for historical listing.
The report briefly discusses the architectural style and elements of the primary dwelling on the
property, as primarily “a utilitarian bungalow with mostly nondescript features,” noting the
compromised integrity of the structure resulting from subsequent alterations and additions. Based
on the evaluation in the report, the author concludes that the primary dwelling does not embody a
particular architectural style in a consistent or substantial fashion, lacks integrity of design,
workmanship, and materials, and “has neither the architectural significance nor the integrity to
qualify it for the Contributing List.”4
Criteria for Historic Resource Listing
To be eligible for historical designation, a resource must exhibit a high le vel of historic integrity
and satisfy at least one of the evaluation criteria listed in § 14.01.070 of the City’s Historic
Preservation Ordinance. The Ordinance also provides that, while it is the general intent that
properties not be removed from historic listing, a property may be removed if it is found to no
longer meet eligibility criteria for listing (§ 14.01.060 (C)). In evaluating the historic significance
of the property, the CHC considered whether, and to what degree, the property satisfies these
criteria. For convenience, these criteria have been provided for reference as Attachment F to this
report. The following sections are a summary of the assessment of the historical status of 644
Mountain View, as provided in the narrative report prepared for the property.
2 See Historic Preservation Ordinance § 14.01.020 for definition of Contributing List Resource or Property
3 Papp, James (2019). Application to Remove from the Contributing List 644 Mountain View Street.
4 Ibid., pg. 1
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Architectural Criteria (§ 14.01.070 (A))
Style and Design. The primary dwelling on the property is described in City records as Colonial
Revival Bungalow in style. The City’s Historic Context Statement describes the American
Colonial Revival style, a style that proliferated in the first half of the 20th Century and notes
several character-defining features of the style (Attachment G). While the dwelling exhibits
some of these features, such as gabled roofs and the appearance of shiplap siding, it does not
embody the characteristics of the style in a successfully integrated manner, and in fact the
structure is clad in aluminum siding.
Architect. The submitted report includes a history of the property, and notes that the architect of
the building is unknown (Papp, pg. 14).
Historic Criteria (§ 14.01.070 (B))
The history of the property, including its owners and occupants over time, is described in the
report submitted with this application. Though participants in the broad patterns of local history,
and individually interesting, none of the prior owners or occupants are shown to have been
prominent in, or to have made unique or distinctly outstanding contributions significant to, local,
state, or national history. There is no evidence that this property was associated with any famous
or “first-of-its-kind” event or with a notably important, unique, or distinctly interesting
contribution to the City. Nor does the property constitute a prime illustration of, or intimate
connection with, the residential growth of the City, rising to a level of historical significance.
Integrity
As discussed on page 16 of the Papp evaluation, the integrity of the building has been diminished
by modifications made to it, including two “lean-tos,” window wings, and a later porch enclosure
of a different style5 across the Mountain View frontage that obscures the building’s original
façade.
Previous Advisory Body Action
On October 28, 2019 the CHC reviewed the request and on a vote of 4-0-1-1 (with Chair Haydu
absent and Committee Member Papp recused, as the author of the applicant’s evaluation report),
recommended that the City Council remove the property from the Contributing Properties List of
Historic Resources.
Policy Context
The recommended action on this item is supported by historical preservation policies set out
section 3.0 of the Conservation and Open Space Element of the City’s General Plan, and with
procedures and standards for listing of historic resources set out in §§ 14.01.060 & 14.01.070 of
the City’s Historic Preservation Ordinance.
5 “[…] a stylistically later porch enclosure, one that by its near -Streamline evocation is antithetical to the folk
Heimastil references, […] (Papp, pg. 16)
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Public Engagement
Public notice of this hearing has been provided to owners and occupants of property near the
subject site, and published in a widely circulated local newspaper, and hearing agendas for this
meeting have been posted at City Hall, consistent with adopted notification procedures for
development projects.
ENVIRONMENTAL REVIEW
Consideration of continued eligibility of this property for historic listing is exempt from the
provisions of the California Environmental Quality Act (CEQA). The determination of continued
eligibility for historic listing is limited to review of whether the subject site remains eligible for
historic resource listing according to the criteria set forth in the City’s Historic Preservation
Ordinance. A determination that the property is not eligible for historic listing will cause the
removal of the property from the City's Inventory of Historic Resources but will have no direct
physical effect on the environment, as the determination does not approve any physical site
development. As such, it is does not have the potential for causing a significant effect on the
environment, and so is covered by the general rule described in CEQA Guidelines
§ 15061 (b) (3).
FISCAL IMPACT
Budgeted: No Budget Year: 2019
Funding Identified: No
Fiscal Analysis:
Funding Sources Current FY Cost
Annualized
On-going Cost
Total Project
Cost
General Fund $ 0 $ 0 $ 0
State $ 0 $ 0 $ 0
Federal $ 0 $ 0 $ 0
Fees $ 0 $ 0 $ 0
Other: $ 0 $ 0 $ 0
Total $ 0 $ 0 $ 0
The project will have no fiscal impacts since the property is not currently eligible for historic
preservation benefits (i.e. Mills Act) and the historic designation of the property has no bearing
on City fiscal resources.
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ALTERNATIVES
1. Maintain 644 Mountain View on the City’s Inventory of Historic Resources, based on
findings that satisfy the criteria for Historic Resource Listing set out in the City’s Historic
Preservation Ordinance.
2. Continue the item for additional information or discussion.
Attachments:
a - Draft Resolution
b - Vicinity Map
c - Historical Preservation Record
d - Resolution No. 8963 (1999 Series)
e - COUNCIL READING FILE - Property Description (Papp)
f - Colonial Revival
g - Evaluation Criteria
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R ______
RESOLUTION NO. _____ (2019 SERIES)
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS
OBISPO, CALIFORNIA, REMOVING THE PROPERTY AT 644
MOUNTAIN VIEW STREET FROM THE CONTRIBUTING
PROPERTIES LIST OF HISTORIC RESOURCES (644 MOUNTAIN VIEW
ST, HIST-0531-2019)
WHEREAS, the applicant, Kimberly Snyder, submitted on August 5, 2019, an application
to remove the property located at 644 Mountain View Street (“the Property”) from the
Contributing Properties List of Historic Resources (HIST-0531-2019); and
WHEREAS, the Cultural Heritage Committee of the City of San Luis Obispo conducted
a public hearing in the Council Hearing Room, Room 9, of City Hall, 990 Palm Street, San Luis
Obispo, California on October 28, 2019 to consider the application, and recommended that the
City Council remove the Property from the Contributing Properties List of Historic Resources; and
WHEREAS, the City Council of the City of San Luis Obispo conducted a public hearing
in the Council Chamber of City Hall, 990 Palm Street, San Luis Obispo, California on December 3,
2019 for the purpose of considering removal of the Property from the Contributing Properties List
of Historic Resources; and
WHEREAS, notices of said public hearing and meeting were made at the time and in the
manner required by law; and
WHEREAS, the City Council has duly considered all evidence, including the record of
the Cultural Heritage Committee hearing and recommendation, testimony of the applicant and
interested parties, and the evaluation and recommendations by staff presented at said hearing.
NOW, THEREFORE, BE IT RESOLVED by the Council of the City of San Luis Obispo
as follows:
SECTION 1. Findings. Based upon all the evidence, the Council makes the following
findings:
a) The property is not historically significant under the Architectural Criteria set out in
§ 14.01.070 (A) of the City’s Historic Preservation Ordinance. Modifications to the
primary structure on the property have diminished the ability of the building to convey
a pure form of its architectural style. The building is not a rare example of the Colonial
Revival style, nor does this style represent a particular social milieu or period of the
community, as it was widely popular in the region and across the country during the
early 20th Century. The building does not exhibit any particular expression of artistic
merit, details, or craftsmanship. No significant architect is associated with the building.
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Resolution No. _____ (2019 Series) Page 2
R ______
b) The property is not historically significant under the Historic Criteria set out in
§ 14.01.070 (B) of the City’s Historic Preservation Ordinance. The property is not
associated with persons significant to the community as public leaders, public servants,
famous persons, or persons making outstanding contributions to local affairs or
institutions, whose contributions stand above other active and successful persons of the
era. It was not associated with any landmark, famous, or first-of-kind event or unique,
important, or interesting contribution to the City. It is associated with ongoing
residential development of the City, but not with early, first, secondary, or major
patterns of local history.
c) The removal of the property from the City’s Contributing Properties List of Historic
Resources is consistent with the Historic Preservation Ordinance because the buildings
on the property lack significance within the historical contexts addressed by the
Evaluation Criteria for Historic Resource Listing set out in § 14.01.070 of the City’s
Historic Preservation Ordinance. The eligibility of the property for inclusion in the
California Register of Historical Resources and in the City’s Inventory of Historic
Resources has been formally evaluated by an architectural historian. As described in
historic resource evaluation prepared for the property, the primary structure on the
property does not appear eligible for inclusion in the California Register, and the
evaluation supports the conclusion that the property is not a candidate for inclusion on
the City’s Inventory, and is not a historical resource for the purposes of the California
Environmental Quality Act (CEQA).
SECTION 2. Environmental Review. Consideration of continuing eligibility of this
property for historic listing is exempt from the provisions of the California Environmental Quality
Act (CEQA). The determination of continued eligibility for historic listing is limited to review of
whether the subject site remains eligible for historic resource listing according to the criteria set
forth in the City’s Historic Preservation Ordinance. A determination that the property is not eligible
for historic listing will cause the removal of the property from the City's Inventory of Historic
Resources but will have no direct physical effect on the environment, as the determination does
not approve any physical site development. As such, it is does not have the potential for causing a
significant effect on the environment and is covered by the general rule described in CEQA
Guidelines §15061(b)(3).
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Resolution No. _____ (2019 Series) Page 3
R ______
SECTION 3. Action. The City Council of the City of San Luis Obispo does hereby
determine that the structures located on the Property do not meet eligibility criteria for listing as
Historic Resources and removes the Property from the Contributing Properties List of Historic
Resources.
Upon motion of Council Member ______________, seconded by Council Member
_____________, and on the following roll call vote:
AYES:
NOES:
ABSENT:
RECUSED:
The foregoing resolution was adopted this ______ day of ____________, 2019.
____________________________________
Mayor Heidi Harmon
ATTEST:
____________________________________
Teresa Purrington
City Clerk
APPROVED AS TO FORM:
_____________________________________
J. Christine Dietrick
City Attorney
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City
of San Luis Obispo, California, this ______ day of ______________, 2019.
____________________________________
Teresa Purrington
City Clerk
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VICINITY MAP HIST-0531-2019644 Mountain View ¯
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RESOLUTION NO. 8963 ( 1999 SERIES)
A RESOLUTION OF THE COUNCIL OF THE CITY OF SAN LUIS OBISPO
ADDING PROPERTIES AT 491 HILL STREET; 249 MISSION LANE; 728, 734, AND
752 MISSION STREET; 501, 644, AND 676 MOUNTAIN VIEW; 764, 807, 814, 815, 822,
8239 8299 836, 851, 8549 8599 8699 8719 8839 8849 AND 894 MURRAY AVENUE; 747, 7509
7629 AND 783 ROUGEOT PLACE TO THE CONTRIBUTING PROPERTIES LIST OF
HISTORIC RESOURCES
WHEREAS, in 1983 the City Council adopted Resolution No. 5197 establishing the
Master List of Historic Resources" and "Contributing Properties List" (collectively referred to as
Historic Resources "), along with procedures for adding properties to the listing; and
WHEREAS, on May 24, 1999, June 28, 1999, and August 23, 1999, following such
procedures the Cultural Heritage Committee held public hearings to consider recommending to the
City Council the addition of several properties in the City of San Luis Obispo to the Contributing
Properties List due to their historical and/or architectural significance to their neighborhood and to
the community; and
WHEREAS, at said meetings, the Cultural Heritage Committee reviewed the historical
documentation on the following properties and recommended that the City Council add these
properties to the Contributing Properties List of Historic Resources:
491 Hill Street;
249 Mission Lane;
728, 734, and 752 Mission Street;
501, 644, and 676 Mountain View;
764, 807, 814, 815, 822, 823, 829, 836, 851, 854, 859, 869, 871, 883, 884, and 894 Murray
Avenue;
747, 750, 762 and 783 Rougeot Place..
WHEREAS, this City Council considered this recommendation at an advertised public
hearing on September 7, 1999 pursuant to historic preservation guidelines established by Council
Resolution No. 6157 (1987 Series).
NOW THEREFORE BE IT RESOLVED by the Council of the City of San Luis Obispo
that based on the Cultural Heritage Committee's recommendation, documentation as described in
the Historical Resource Inventory for each property, on file in the Community Development
Department, public testimony, the staff report, and on the City's Historical Preservation Program
Guidelines the following:
SECTION 1. Addition to Contributing Properties List. The following properties have been
found to contribute to the historic and architectural character of the City, meet the criteria for
inclusion on the Contributing Properties List, and are hereby deemed Contributing Properties:
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Resolution No. 8963 (1999 Series)
Page 2
491 Hill Street;
249 Mission Lane;
728, 734, and 752 Mission Street;
501, 644, and 676 Mountain View;
764, 807, 814, 815, 822, 823, 829, 836, 851, 854, 859, 869, 871, 883, 884, and 894 Murray
Avenue;
747, 750, 762 and 783 Rougeot Place.
SECTION 2. Environmental Determination. The City Council hereby determines that this
action is not a "project" as defined in Article 20 of the California Environmental Quality Act
CEQA) since it does not have the potential for resulting in a physical change in the environment,
and therefore, is not subject to environmental review requirements.
SECTION 3. Publish Revised Contributing Properties List. The Community Development
Director is hereby directed to amend the Contributing Properties List to include the properties listed
above and to publish revised historic resource listings for public distribution.
On motion of Council Member Schwartz, seconded by Vice Mayor Romero and
on the following roll call vote:
AYES: Council Members Ewan, Marx, Schwartz, Vice Mayor Romero, and Mayor
Settle
NOES: None
ABSENT: None
The foregoing Resolution was passed and adopted this 7th day of September, 1999.
Mayor Allen K. Settle
APPROVED AS TO FORM:
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City of San Luis Obispo Architectural Character
Citywide Historic Context Statement
HISTORIC RESOURCES GROUP
143
AMERICAN COLONIAL REVIVAL
The Colonial Revival style proliferated during the first half of the 20th century. This style incorporates
traditions from the Georgian, Adam and early Classical Revival styles that were prevalent during the
English colonial period. Dutch colonial influences were also incorporated, which often include a
gambrel roof. Earlier examples were rarely accurate recreations but were instead free interpretations
with details inspired by colonial precedents, while later examples shifted to more historically correct
proportions and details.
Character-defining features include:
Side gable or hipped roofs
Wood exterior wall cladding, typically horizontal
Accentuated front entry or portico, featuring decorative pediments supported by pilasters or
slender columns
Wood double-hung sash windows with multi-pane glazing
Front doors flanked by sidelights with fanlights above
Fixed wooden shutters
1318 Mill Street, 1906. Source: Historic Resources Group.
1727 Corralitos Avenue, c.1940. Source: Historic Resources
Group
1624 Morro Street.Source: Historic
Resources Group.
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Zoning, or remove the property from historic listing if the structure on the property no longer
meets eligibility criteria for listing, following the process for listing set forth herein.
14.01.070. Evaluation Criteria for Historic Resource Listing
When determining if a property should be designated as a listed Historic or Cultural Resource,
the CHC and City Council shall consider this ordinance and State Historic Preservation Office
(“SHPO”) standards. In order to be eligible for designation, the resource shall exhibit a high
level of historic integrity, be at least fifty (50) years old (less than 50 if it can be demonstrated
that enough time has passed to understand its historical importance) and satisfy at least one of the
following criteria:
A. Architectural Criteria: Embodies the distinctive characteristics of a type, period, region, or
method of construction, or represents the work of a master, or possesses high artistic values.
(1) Style: Describes the form of a building, such as size, structural shape and details
within that form (e.g. arrangement of windows and doors, ornamentation, etc.). Building
style will be evaluated as a measure of:
a. The relative purity of a traditional style;
b. Rarity of existence at any time in the locale; and/or current rarity although the
structure reflects a once popular style;
c. Traditional, vernacular and/or eclectic influences that represent a particular social
milieu and period of the community; and/or the uniqueness of hybrid styles and how
these styles are put together.
(2) Design: Describes the architectural concept of a structure and the quality of artistic
merit and craftsmanship of the individual parts. Reflects how well a particular style or
combination of styles are expressed through compatibility and detailing of elements.
Also, suggests degree to which the designer (e.g., carpenter-builder) accurately
interpreted and conveyed the style(s). Building design will be evaluated as a measure of:
a. Notable attractiveness with aesthetic appeal because of its artistic merit, details and
craftsmanship (even if not necessarily unique);
b. An expression of interesting details and eclecticism among carpenter-builders,
although the craftsmanship and artistic quality may not be superior.
(3) Architect: Describes the professional (an individual or firm) directly responsible for
the building design and plans of the structure. The architect will be evaluated as a
reference to:
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a. A notable architect (e.g., Wright, Morgan), including architects who made
significant contributions to the state or region, or an architect whose work influenced
development of the city, state or nation.
b. An architect who, in terms of craftsmanship, made significant contributions to San
Luis Obispo (e.g., Abrahams who, according to local sources, designed the house at
810 Osos - Frank Avila's father's home - built between 1927 – 30).
B. Historic Criteria
(1) History – Person: Associated with the lives of persons important to local, California,
or national history. Historic person will be evaluated as a measure of the degree to which
a person or group was:
a. Significant to the community as a public leader (e.g., mayor, congress member,
etc.) or for his or her fame and outstanding recognition - locally, regionally, or
nationally.
b. Significant to the community as a public servant or person who made early, unique,
or outstanding contributions to the community, important local affairs or institutions
(e.g., council members, educators, medical professionals, clergymen, railroad
officials).
(2) History – Event: Associated with events that have made a significant contribution to
the broad patterns of local or regional history or the cultural heritage of California or the
United States. Historic event will be evaluated as a measure of:
(i) A landmark, famous, or first-of-its-kind event for the city - regardless of whether
the impact of the event spread beyond the city.
(ii) A relatively unique, important or interesting contribution to the city (e.g., the Ah
Louis Store as the center for Chinese-American cultural activities in early San Luis
Obispo history).
(3) History-Context: Associated with and also a prime illustration of predominant
patterns of political, social, economic, cultural, medical, educational, governmental,
military, industrial, or religious history. Historic context will be evaluated as a measure
of the degree to which it reflects:
a. Early, first, or major patterns of local history, regardless of whether the historic
effects go beyond the city level, that are intimately connected with the building (e.g.,
County Museum).
b. Secondary patterns of local history, but closely associated with the building (e.g.,
Park Hotel).
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C. Integrity: Authenticity of an historical resource’s physical identity evidenced by the
survival of characteristics that existed during the resource’s period of significance. Integrity
will be evaluated by a measure of:
(1) Whether or not a structure occupies its original site and/or whether or not the
original foundation has been changed, if known.
(2) The degree to which the structure has maintained enough of its historic character
or appearance to be recognizable as an historic resource and to convey the reason(s)
for its significance.
(3) The degree to which the resource has retained its design, setting, materials,
workmanship, feeling and association.
14.01.080 Historic District Designation, Purpose and Application
A. Historic (H) District designation. All properties within historic districts shall be designated
by an “H” zoning. Properties zoned “H” shall be subject to the provisions and standards as
provided in Ordinance 17.54 (Zoning) of the Municipal Code.
B. Purposes of Historic Districts. The purposes of historic districts and H zone designation are
to:
(1) Implement cultural resource preservation policies of the General Plan, the
preservation provisions of adopted area plans, the Historic Preservation and
Archaeological Resource Preservation Program Guidelines, and
(2) Identify and preserve definable, unified geographical entities that possess a significant
concentration, linkage, or continuity of sites, buildings, structures, or objects united
historically or aesthetically by plan or physical development;
(3) Implement historic preservation provisions of adopted area and neighborhood
improvement plans;
(4) Enhance and preserve the setting of historic resources so that surrounding land uses
and structures do not detract from the historic or architectural integrity of designated
historic resources and districts; and
(5) Promote the public understanding and appreciation of historic resources.
C. Eligibility for incentives. Properties zoned as Historic Preservation (H) shall be eligible for
preservation incentive and benefit programs as established herein, in the Guidelines and other
local, state and federal programs.
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Department Name: Administration
Cost Center: 1005
For Agenda of: December 3, 2019
Placement: Study Session
Estimated Time: 75 minutes
FROM: Greg Hermann, Deputy City Manager
Prepared By: Chris Read, Sustainability Manager
Robert Hill, Sustainability & Natural Resources Official
SUBJECT: CLIMATE ACTION PLAN STUDY SESSION
RECOMMENDATION
Review and discuss information on the Climate Action Plan Update and provide direction on
focus questions necessary to inform next steps.
REPORT-IN-BRIEF
Local governments around the world are stepping up to reduce greenhouse gas (GHG) emissions,
while also addressing issues of equity, economic development, and quality of life. A low carbon
and resilient San Luis Obispo focused on people and their needs in a changing climate and
economy is the organizing principle for a more equitable, vibrant, and healthy community.
In 2017, the City identified Climate Action as a Major City Goal and an update to the Climate
Action Plan was identified as a work task. In September of 2018, Council directed staff to
develop an approach to carbon neutrality by 2035. This study session seeks Council’s feedback
and direction regarding staff’s proposed approach to carbon neutrality ahead of release of a
Public Review Draft of the Climate Action Plan in early 2020.1 The approach to carbon
neutrality is organized into six pillars, each with a long term goal and foundational actions to be
initiated or completed by 2023:
Pillar 1: Lead by Example – Carbon neutral government operations by 2030
Pillar 2: Clean Energy Systems –100 percent carbon free electricity by 2020
Pillar 3: Green Buildings – No net new emissions from new buildings’ onsite energy use by
2020; 50 percent reduction in existing building onsite emissions by 2030
Pillar 4: Connected Community – Achieve General Plan mode split objective by 2030; 40
percent of vehicle miles travelled by electric vehicles by 2030
Pillar 5: Circular Economy – 75 percent diversion of landfilled organic waste by 2025; 90
percent by 2035
Pillar 6: Natural Solutions – Increase carbon sequestration on the San Luis Obispo
Greenbelt and Urban Forest through compost application-based carbon farming activities and
tree planting; ongoing through 2035
1 Attachment A provides a the draft GHG inventory and forecast. Attachment B provides the proposed approach to
carbon neutrality.
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Even with achievement of these ambitious but feasible targets, the City expects an emissions
reduction gap that will need to be addressed to achieve carbon neutrality. To achieve deep
decarbonization, the City will need to embrace uncertainty, engage in systemic change using the
tools and nimble actions that local governments are uniquely suited to carry out, and position
itself to take full advantage of future innovations, technologies, and policies and legislation that
may be undertaken at the state and federal level. For these reasons, staff is recommending that,
as part of the Climate Action Plan, Council commit to update and adopt a new Climate Action
Plan concurrent with every other Financial Plan.
DISCUSSION
Background
Due to decades of rapidly increasing global greenhouse gas (GHG) emissions and insufficient
climate action at all levels of government, atmospheric GHG concentrations have reached a level
that guarantees substantial and unavoidable impacts for the foreseeable future. California’s
recent historic wildfires, droughts, floods, mudslides, and public safety power shutoffs are
representative of climate change impacts. These impacts threaten to make all the significant
issues currently faced by the city (e.g., the housing crisis, homelessness, affordability,
sustainable water supply) critical, challenging, and expensive. Depending on global emissions
rates over the next 30 years, temperatures could exceed a 1.5° Celsius increase over pre -
industrial levels, which would result in catastrophic impacts. To limit global warming to 1.5°
Celsius, annual global emissions need to decrease 45 percent by 2030, and be “net zero” by
2050.2
San Luis Obispo residents and businesses routinely rank climate change as an important issue. In
2019, thousands of people in San Luis Obispo contributed to the City’s budget process that
resulted in City Council adopting Climate Action as a Major City Goal for the second straight
Financial Plan cycle. As community and Council interest in ambitious climate action continues,
the update of the City’s Climate Action Plan provides a platform for strategic prioritization of
actions, as well as an opportunity to hear from a wide range of community members regarding
their vision for a low carbon and thriving San Luis Obispo.
Climate Action in San Luis Obispo
In July 2012, the City Council adopted the City of San Luis Obispo’s first Climate Action Plan.
The Climate Action Plan served as the City’s policy document that sets forth objectives and
strategies that the City and community members can implement to achieve the adopted GHG
emissions reduction target of 15 percent below 2005 baseline levels by 2020. At present, the City
is on track to achieve the Climate Action Plan’s 2020 target. In the 2017-19 Financial Plan,
Climate Action was identified as a Major City Goal and an update to the Clim ate Action Plan
was identified as a work task. Staff has been working on the update since April 2018 and
completion of the Climate Action Plan is included in the 2019-21 Climate Action Major City
Goal. In September of 2018, staff presented an update on the Climate Action Plan process to
Council with a request for goal setting direction. Council directed staff to proceed with updating
the Climate Action Plan to articulate a pathway to carbon neutrality by 2035.
2 https://www.ipcc.ch/sr15/
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Local Government Lessons Learned About Climate Action Planning
Since the adoption of the City’s first Climate Action Plan over seven years ago, numerous
lessons have been learned in the evolving field of climate action planning. Most critical to this
Climate Action Plan update are the lessons that cities need to focus on systems thinking, equity,
local authority, and leadership potential, as outlined below:
1. Systems are responsible for the climate crisis. For decades the climate crisis has been
presented as the fault and responsibility of individuals. While it is true that everyone can and
should do their part in addressing the climate crisis, transformative change to a low carbon,
equitable, and sustainable community requires changes to the systems in which a community
functions (e.g., energy systems, waste systems, transportation systems, economic
development systems, etc.).3
2. The climate crisis and social equity must be addressed together. Many of the conditions
that have led to the climate crisis have also led to growing inequality.4 Leading communities
are turning to a focus on social equity to ensure a just distribution of the benefits of climate
action while also using the effort to give a voice to those not typically present in the decision
making process.5 Low greenhouse gas emissions, equity, and resilience are the organizing
principles required for communities to thrive in the 21st century.6
3. Local governments are uniquely capable of certain actions. The City level of government
is uniquely situated to address issues related to land use and conservation, building energy
performance, creating conditions for housing production, supporting certain economic
development patterns, and prioritizing how the community’s co-owned spaces are used. For
structural changes to occur, the City should focus on these unique capabilities. For other
actions, the City can coordinate with regional agencies and other levels of government (state
and federal) and support community partners to focus on climate action in the fields that they
are uniquely capable of (e.g., academic research, entrepreneurial innovation, operational
emissions of private organizations, etc.).
3 This conclusion is arrived at directly in the Carbon Neutral Cities Alliance Game Changers report, “Deep, long-
term decarbonization depends on transforming our cities’ key GHG-emitting systems and markets for transportation,
energy supply, buildings, solid waste, and food …” (http://carbonneutralcities.org/wp-
content/uploads/2018/09/CNCA-Game-Changers-Report-2018.pdf) and is also supported by recent climate literature
including Designing Climate Solutions (Harvey 2019), and echoed in national and local “Green New Deal”
proposals.
4 For a discussion on mobility and equity, see: http://greenlining.org/wp-
content/uploads/2019/01/MobilityEquityFramework_8.5x11_v_GLI_Print_Endnotes -march-2018.pdf
5 For example, the City of Portland, Oregon has made equity the primary organizing principle in its climate work:
https://beta.portland.gov/sites/default/files/2019-07/cap-equity-case-study-web29jul.pdf. Additionally, the Carbon
Neutral Cities Alliance has identified “equity” and “centering climate action on people” as a “game changer”:
https://carbonneutralcities.org/centering-people-and-equity/
6 As described in the UC Berkeley Study Advancing Equity in California Climate Policy, “In California, the road to
climate policy runs through—not over—climate equity.” (http://laborcenter.berkeley.edu/pdf/2016/Advancing-
Equity.pdf)
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4. Leadership is needed and the world is watching. As a leadership city, San Luis Obispo has
an outsized role in how cities throughout the world are addressing their greenhouse gas
emissions. While many climate leadership cities are larger metropolitan areas, San Luis
Obispo as a small city is an inspiration for the over 17.5 million people in the US that live in
cities with 40,000-60,000 residents.7 Staff are active participants in regional, statewide,
national, and international networks of cities, many of which are watching San Luis Obispo
closely to see what is possible.
Climate Action Plan Process
The climate action planning process is a five step cycle as outlined in Figure 1.8,9 The remainder
of this report provides details on Steps 1-3 of the Climate Action Planning Process and seeks
direction from Council on critical questions ahead of release of a Public Review Draft of the
Climate Action Plan in early 2020.
Figure 1: Climate Action Planning Steps
7 The population estimate is derived from the 2010 Decennial US Census.
8 The five step process is a common climate action practice and is referenced in the California Governor’s Office of
Planning and Research General Plan Guidelines (http://opr.ca.gov/docs/OPR_C8_final.pdf)
9 The recent catastrophic wildfires, winter storms, and Public Safety Power Shutoffs throughout the state have raised
interest in addressing climate change adaptation among staff and the public. Some cities are now choosing to
prepare combined Climate Action and Adaptation Plans as a consolidated effort. In the case of San Luis Obispo, in
accordance with the adopted work plan for the 2019-21 Climate Action Major City Goal, the City is taking proactive
measures to ensure community resiliency and will establish a city-wide strategic approach to climate adaptation
when it updates the Safety Element to include a comprehensive climate change vulnerability assessment, as a
subsequent step to this Climate Action Plan update.
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Step 1: Greenhouse Gas Emissions Inventory
GHG Emissions Inventory Introduction
A GHG emissions inventory is an accounting and compilation of the GHG emissions that occur
as the result of activity inside a geographic boundary. In its 2017 Scoping Plan, the California
Air Resources Board directs local governments to the U.S. Community Protocol for Accounting
and Reporting of Greenhouse Gas Emissions.10,11 The Community Protocol includes required
emissions sectors that must be inventoried including use of electricity, onsite fuel combustion
(i.e., natural gas), energy used for water conveyance and treatment, use of on-road vehicles, and
generation of solid-waste.12
The City and its technical consultants have updated the existing baseline 2005 inventory,
developed a 2016 inventory, and has forecast the inventories to 2035 in a manner consistent with
the U.S. Community Protocol. The City has also referred to the Global Protocol for Community
Emissions for guidance.13 The inventory currently includes carbon dioxide (CO2), methane
(CH4), and nitrous oxide (N2O) emissions. The community GHG emissions inventory update is
provided as Attachment A.
GHG Emissions Inventory and Forecast Summary
As illustrated in Figure 2, community GHG emissions decreased by approximately 12 percent
from 2005 to 2016 and, based on state and local action already committed to, are expected to be
approximately 32 percent below baseline by 2035. The observed historical reduction is largely
the result of significant decreases in the electricity sector, but also includes decreases in nearly
every sector. Emissions are expected to decrease a total of 32 percent from 2005 to 2035 through
existing local and expected state actions, including participation in Monterey Bay Community
Power (which will begin procuring carbon neutral electricity for San Luis Obispo customers
starting in January 2020), a California grid-wide transition to carbon neutral electricity by 2040
(SB 100), continued improvements to the state building code, and continued vehicle fuel
efficiency enhancements.
GHG Emissions Inventory and Forecast Shortcomings and Room for Improvement
The GHG emissions inventory and forecast includes the mandatory sectors as outlined in the
Community Protocol. Potential improvements to the existing inventory and forecast, including
incorporation of voluntary sectors, include:
1. Emissions associated with consumption, including the emissions generated by local food
consumption, plastic generation, shipping of goods, and the carbon embodied in building
materials such as steel and concrete.
2. Emissions offset by conserving the City’s open spaces and managing the urban forest.
3. Emissions from wind-row composting of green-waste.
4. Fugitive emissions that occur as the result of natural gas consumption and direct leakage
of methane into the atmosphere during exploration, extraction, transmission, distribution,
and end use.
10 https://ww3.arb.ca.gov/cc/scopingplan/scoping_plan_2017.pdf
11 http://icleiusa.org/publications/us-community-protocol/
12 The electricity and natural gas sectors of the City’s GHG inventory (as described in this report and provided in
Attachment A) include energy used to convey and treat water.
13 https://ghgprotocol.org/greenhouse-gas-protocol-accounting-reporting-standard-cities
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Figure 2. GHG Inventory and Forecast Summary Results (MTCO2e)
Addressing these voluntary sectors will be important in future Climate Action Plan updates and
to the City’s overall climate and sustainability ambitions; however, at this time, it is
recommended that the Climate Action Plan include the mandatory emissions sectors identified in
Figure 1, above, with direction to continue monitoring the development and adoption of new
protocols, methods, and sources for new emissions sectors. In all cases, staff will continue to
track emerging methods that may be available by 2020 and pending Council direction to return
with the next Climate Action Plan update in 2023, staff will include such information in that
update and thereafter.
KEY QUESTION # 1 – Is Council supportive of preparing this Climate Action Plan update
accounting only for the emissions sectors required by the US Community Protocol, while
continuing to monitor and track emerging protocols for voluntary emission sectors. As an
alternative, would Council prefer staff pause the Climate Action Plan update process until
one or more of the identified voluntary sectors are inventoried?
Step 2: GHG Reduction Target
In September of 2018, staff presented an update on the Climate Action Plan process to Council
with a request for goal setting direction. Following a presentation, public comment, and
deliberation about goals that cities throughout California and the world are committing to,
Council directed staff to develop a roadmap to carbon neutrality by 2035. This target goes above
and beyond the 2020 target set Assembly Bill 32 and the 2030 target in Senate Bill 32. These
two targets established as state law, a 2018 executive order, and the carbon neutrality by 2035
target, are discussed below.
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AB 32
Assembly Bill 32 (AB 32) (Nuñez, Chapter 488, Statutes of 2006) established a target of
reducing GHG emissions to 1990 levels by 2020 with maintained and continued reductions post
2020. Given the challenge of estimating 1990 GHG emissions, standard best practice is to use 15
percent reduction of a base line year (2005) as a proxy. The City’s current adopted targets are
consistent with AB 32. Using the updated 2005 baseline inventory provided in Table 1 (below),
the AB32 consistent target for annual emissions by 2020 is 328,640 MTCO2e. Based on
participation in Monterey Bay Community Power, the City is expected to achieve its 2020 target.
SB 32
Senate Bill 32 (SB 32) (Pavley, Chapter 249, Statutes of 2016) codifies into statute the GHG
emissions reduction target of at least 40 percent below 1990 levels by 2030. The 2030 target
reflects the same science that informs the agreement reached in Paris by the 2015 Conference of
Parties to the United Nations Framework Convention on Climate Change (UNFCCC), aimed at
keeping the global temperature increase below 2 degrees Celsius (̊C). Using the updated 2005
baseline inventory provided in Table 1, the SB32 consistent target annual emissions by 2030 is
197,180 MTCO2e.
Executive Order B-55-18
In 2019, California Governor Jerry Brown issued Executive Order B-55-18, which establishes a
new statewide goal to achieve carbon neutrality as soon as possible, and no later than 2045, and
achieve net negative emissions thereafter.
Carbon Neutral by 2035
For the purpose of the 2020 CAP update, staff recommends that “carbon neutrality” apply to the
net emissions of the inventoried sectors illustrated in Figure 1, above, minus emissions captured
through carbon sequestration efforts. As evidenced by the proposed approach to Carbon
Neutrality in “Step 3”, the target is extremely ambitious, and will require that staff and the
community implement foundational actions and conduct additional research to assess and
monitor new developments in the ongoing and evolving field of climate action planning.
Additionally, achieving carbon neutrality as a community is contingent on numerous outside
factors, such as increased state funding for climate action, the federal government taking
responsibility for climate action and supporting local action, and a regional approach to
supporting the clean energy economy. At the same time, the City’s experience so far has been
that an ambitious reduction target invites resources for the work and would put the City in
position to pursue and accept funds from state and federal grant programs, as well as from
charitable foundations.
For these reasons, staff recommends that the Carbon Neutral Target by 2035 be adopted, that the
City and the community move forward with the assumption of an increase in state support,
shifting federal support, technological innovation, and that the City continues to learn and
embrace the nuances and intricacies of a carbon neutrality target. Table 2 provides the annual
GHG emission target in the target years for AB 32, SB 32, and carbon neutrality.
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Table 1. GHG Target Summary
KEY QUESTION # 2 – Does Council agree with staff’s recommendation for how to
approach “carbon neutrality” as described in the narrative, above?
Step 3: Develop an Approach to a GHG Reduction Target (Carbon Neutrality)
As illustrated by the community GHG inventory, inventoried emissions decreased approximately
12 percent from 2005-2016. Based on initial 2017 and 2018 updated energy activity data and the
reduction in electricity-based emissions from joining Monterey Bay Community Power, the
community will achieve the adopted 2020 target. Although that achievement is a major
accomplishment, a 2030 target of 40 percent below 1990 levels (SB 32) and the substantially
more ambitious voluntary target of carbon neutrality by 2035 represent significant undertakings.
The City’s approach to ambitious climate action is outlined in detail in Attachment B and is
informed by statewide technical studies and guidance, community input, and the GHG
inventory.14 In addition, the City worked with the technical consultant Raimi + Associates to
model a pathway to achieve deep GHG reductions by quantifying the emissions reductions of
various actions between 2020 and 2035. The pathway model provides one path to significant and
impactful reductions and is used by the City as a guidepost for setting specific pillar goals and
selecting foundational actions.
Based on the technical information described above, and supported by additional staff research,
consultant assessment, and discussion with community members and stakeholders, staff presents
the following pillars, goals, foundational actions, required to make substantial progress in
achieving carbon neutrality in the City of San Luis Obispo by 2035:15,16
14 For example, the California Energy Commissions Deep Decarbonization in a High Renewables Future:
https://efiling.energy.ca.gov/GetDocument.aspx?tn=223785
15 Attachment B provides additional detail for each pillar, including “ideas for partners”, which lists potent ial actions
for other public agencies, community groups, and residents to take to contribute to community carbon neutrality.
16 The greenhouse gas emissions reductions figures in this section represent provisional estimates based on projected
future emissions and full achievement of the proposed pillar goal s. Should Council direct staff to pursue the
proposed targets and foundational actions, staff would refine the reductions estimates with additional data and detail.
The figures are rounded to the nearest thousand to illustrate the provisional nature of the estimates.
Target Annual GHG Emissions
Target (MTCO2e)
2005 Baseline Emissions 386,630
AB32 – 1990 levels (15 percent below baseline) by 2020 328,640
SB 32 – 40 percent below 1990 levels by 2030 197,180
Carbon Neutral by 2035 0
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1. Lead by Example – City government operations can achieve carbon neutrality, and in
doing so, will provide visible leadership for community businesses and organizations
looking to achieve the same outcome. The goal of Pillar 1 is carbon neutral government
operations by 2030. Based on best available information, fulfillment of this goal could
result in annual greenhouse gas emissions savings of approximately 7,500 MTCO2e.17
Proposed foundational actions are as follows:
Measure Foundational Actions (2020-2023)
Lead by Example 1 –
Municipal Carbon
Neutrality Plan
Leadership 1.1 – Present municipal carbon neutrality plan
to City Council in 2020.
Leadership 1.2 – Commit to no new fossil fuels in
municipal buildings.
Leadership 1.3 - Develop and implement campus wide
energy strategic plan by 2022.
Lead by Example 2 – City
Organization
Leadership 2.1 – Integrate climate considerations into City
decision making processes.
Lead by Example 3 –
Green Local Economy
Leadership 3.1 – Include carbon neutrality considerations
and a focus on developing the green local economy in the
updated Economic Development Strategic Plan.
Leadership 3.2 – Research methods to support local
contractors and labor.
17 The “Lead by Example” reductions assume carbon neutral operations and uses a working internal GHG inventory
estimate of approximately 7,500 annual metric tons from operational emissions. This estimate would be refined
through the municipal carbon neutral plan development process. Additionally, the municipal operations emissions
are a subset of total community emissions (i.e., the electricity used in City Hall is captured in the community GHG
inventory). To avoid double counting, the emissions reduction estimate of 7,500 MTCO2e for carbon neutral
municipal operations is not applied to the total emissions reductions figure.
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2. Clean Energy Systems – Affordable, abundant, and clean electricity coming from
renewable or carbon neutral resources lays the foundation for a carbon neutral
community. A commitment to resilience and local generation promotes a green local
economy and a system that functions as the climate changes around it. The goal of Pillar
2 is 100 percent carbon free electricity by 2020. Based on best currently available
information, it is estimated that fulfillment of this goal could result in annual greenhouse
gas emissions savings of 39,000 MTCO2e in 2035. Proposed foundational actions are as
follows18:
Measure Foundational Actions (2020-2023)
Clean Energy Systems 1 –
Monterey Bay Community
Power
Energy 1.1 - Launch Monterey Bay Community Power
and achieve a 98 percent participation rate; advocate for
equity and maximum local benefit.
Clean Energy Systems 2 –
Local Grid Reliability and
Energy Storage
Energy 2.1 - Work with MBCP & PG&E to develop a
regional grid reliability and resilience strategy.
Clean Energy Systems 3 –
Natural Gas Strategy
Energy 3.1 - Partner with SoCal Gas to research options
for reducing greenhouse emissions associated with the
existing natural gas grid.
3. Green Buildings – Building decarbonization can be achieved through building all-electric
new buildings and providing resources to current building owners to support solar panel
installations, a transition away from fossil fuel appliances, and energy efficiency
retrofitting. Existing buildings can become cleaner while creating green local economy
jobs in the building trades and through technological innovation. The goals of Pillar 3 are
no net new building emissions from onsite energy use by 2020; 50 percent reduction in
existing onsite building emissions by 2030. Based on best currently available
information, it is estimated that fulfillment of this goal could result in annual greenhouse
gas emissions savings of 32,000 MTCO2e in 2035. Proposed foundational actions are as
follows:
Measures Foundational Actions (2020-2023)
Green Buildings
1 – Carbon
Neutral New
Buildings
Buildings 1.1 – Adopt and implement local amendments to the 2019
California Energy Code incentivizing all electric development (Clean
Energy Choice Program) and review opportunities for improvement
in the 2022 code cycle.
Green Buildings
2 – Energy
Retrofitting
Buildings 2.1 – Conduct comprehensive retrofit program study and
develop a strategic and equity focused building retrofit program.
Buildings 2.2 Adopt building energy score program or benchmarking
ordinance by 2021 and begin implementing retrofit program.
18 Note that since the City has already joined MBCP, the reductions from this action are already included in the
City’s draft GHG inventory and forecast (Attachment A).
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4. Connected Community – Creating a community that focuses on people and mobility and
the necessary densities to support active transportation and transit investments can
substantially improve community health, reduce cost of living, and reduce the largest
source of greenhouse gas emissions in the community. For residents and businesses that
prefer or require vehicles, a transition to electric vehicles provide an opportunity for
cleaner and cheaper transportation. The millions of dollars that typically leave the
community through fossil fuel purchases are instead retained in the community through
savings and reinvestment. The goals of Pillar 4 are to achieve the General Plan mode split
objective by 2030; 40 percent of vehicle miles travelled by electric vehicles by 2030.
Based on best currently available information, it is estimated that fulfillment of this goal
could result in annual greenhouse gas emissions savings of 78,000 MTCO2e in 2035.
Proposed foundational actions are as follows:
Measures Foundational Actions (2020-2023)
Connected Community 1
– Innovation and
Coordination
Connected 1.1- Research and develop an approach to a
“Mobility as a Service” platform for people to easily use all
modes of low carbon mobility in the City.
Connected 1.2 – Repurpose the City’s Green Team to focus
on 2017-19 Major City Goal collaboration and
coordination in the short term, and on achieving the mode
split targets in the long term.
Connected 1.3 – Create new development review standards
to support Community Development Department decision
making processes for consistency with the carbon
neutrality goal.
Connected Community 2
– Active Transportation
Connected 2.1 - Complete Active Transportation Plan and
begin implementation.
Connected 2.2 - Launch micro mobility program by 2021.
Connected 2.3 – Develop a quick-build strategy to
streamline implementation of priority bicycle and
pedestrian infrastructure projects.
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Measures Foundational Actions (2020-2023)
Connected Community 3
– Parking
Connected 3.1 – Establish a policy and strategic approach
to leveraging existing and new parking garages for
downtown residential and visitor serving uses and to allow
for further implementation of the Downtown Concept Plan
Connected Community 4
– Transit
Connected 4.1 – Develop transit electrification strategic
plan and begin implementing in 2020
Connected 4.2 – Increase headways through accelerated
implementation of the existing Short-Range Transit Plan.
Connected 4.3 – Explore additional innovative transit
options in the 2022 Short Range Transit Plan (e.g., on-
demand deviated routes, electric fleet expansion, micro
transit, Bus Rapid Transit, Transit Signal Priority, etc.)
Connected 4.4 – Assess feasibility of a “free to the user”
transit ridership program
Connected Community 5
– Housing
Connected 5.1 - Develop Flexible Zoning Requirements for
Downtown
Connected 5.2 - Update the Housing Element of the
General Plan and complete the Housing Major City Goal
Connected Community 6
– Electric Vehicles
Connected 6.1 - Develop and begin implementing electric
mobility plan by 2021
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5. Circular Economy – “Circular Economy” is an economic system aimed at the continual
use of resources and eliminating waste. Circular systems practice reuse, sharing, repair,
refurbishment, remanufacturing and recycling to create a closed-loop system, minimizing
the use of resource inputs and the creation of waste, pollution and carbon emissions.
Whereas a traditional extractive economy can be thought of as a straight line from
extraction to consumption to disposal, a circular economy looks to use 'waste' as 'food'
for other processes. Diverting organic material and reducing landfilled waste supports
community wide carbon neutrality by reducing methane emissions while also creating
clean electricity and compost at the regional anerobic digester.19 Supporting a reduction
in waste entering the landfill provides an economic benefit of postponing expansion of
the local landfill. The goals of Pillar 5 are 75 percent diversion of landfilled organic
waste by 2025; and 90 percent diversion by 2035. Based on best currently available
information, it is estimated that fulfillment of this goal could result in annual greenhouse
gas emissions savings of 39,000 MTCO2e in 2035. Proposed foundational actions are as
follows:
Measures Foundational Actions (2020-2023)
Circular Economy 1 –
Organic Waste Diversion
Circular Economy 1.1 - Adopt an ordinance requiring
organic waste subscription for all residential and
commercial customers by 2022
Circular Economy 1.2 – Develop and implement program
to increase edible food rescue by 20 percent20
Circular Economy 1.3 - Develop and implement a waste
stream education program for HOA/Property Managers and
the commercial sector.
Circular Economy 2 –
Administrative Capacity
Circular Economy 2.1 - Update the Municipal Code solid
waste section and bin enclosure standards
Circular Economy 2.2 - Develop a Solid Waste section in
the Utilities Department
19 For more information, see: https://www.sanluisgarbage.com/organics/dry-anaerobic-digestion/
20 As described in SB 1382, food rescue is the concept of preventing edible food from being disposed of and instead
providing the food for use by food banks and related programs.
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6. Natural Solutions– Active management of agricultural lands, rangelands, and the urban
forest can remove greenhouse gas emissions from the atmosphere while enhancing the
health of the City’s natural systems. The goal of Pillar 6 is to increase carbon
sequestration within the San Luis Obispo Greenbelt and Urban Forest. Carbon
sequestration activities include compost application-based carbon farming activities and
tree planting; ongoing through 2035. Based on best available information, it is estimated
that fulfillment of this goal could result in annual greenhouse gas emissions sequestered
of 7,000 MTCO2e in 2035. Proposed foundational actions are as follows:
Measures Foundational Actions (2020-2023)
Natural Solutions 1 –
Carbon Farming
Natural Solutions 1.1 - Conduct Carbon Farming Study and
Pilot Project at Johnson Ranch Open Space and City Farm
beginning in 2020 with monitoring through 2023. If
determined feasible and cost effective, apply compost to
first annual 100 acres by 2023
Natural Solutions 2 –
Tree Planting
Natural Solutions 2.1 - Prepare the City’s first Urban
Forest Master Plan that updates the existing tree inventory,
identifies future tree planting opportunities and a climate-
ready tree palette, as well as ongoing operations and
maintenance needs
Natural Solutions 2.2 - Identify and participate in
partnership opportunities by 2021 necessary to plant and
maintain 10,000 new trees by 2035
The six pillar goals could reduce community greenhouse gas emissions by approximately 73
percent from baseline 2005 levels by 2035. Figure 3 provides an illustration of the contribution
of reductions by pillar.21
KEY QUESTION # 3 – Does Council concur with the pillars, measures, and foundational
actions as presented in this report. Do they contain anything that should be removed? Are
they missing anything?
It should be clearly noted that full implementation of the six pillar goals leaves a gap of
approximately 104,160 MTCO2e that will need to be addressed to achieve carbon neutrality (see
Figure 3). This gap represents emissions that could be addressed by the federal and state
governments, regional agencies, and local partners. The gap also represents the uncertainty in
taking a leadership role in addressing a challenge that hasn’t been solved before. The City will
need to embrace that uncertainty, commit to constant learning, engage in systemic change using
the tools and actions that local governments are uniquely suited to carry out, and position itself to
take full advantage of future innovations, technologies, and policies and legislation that may be
undertaken at the state and federal level.
21 Note that since MBCP will be operational prior to CAP adoption, it is not shown as a stand-
alone reduction, but rather as avoided emissions in the 2035 GHG forecast column.
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Figure 3. Contribution to GHG Reductions by Pillar (MTCO2e)
Technological innovation, clean-tech innovation, and changes to climate related policy and
regulation occur rapidly. For example, it was unimaginable three years ago that the City would
be part of a public agency that procures carbon free electricity for its residents and businesses as
early as 2020, or that rooftop solar panels and battery prices would drop as rapidly as they
have.22 Several of the state’s most successful environmental policy initiatives, including the
Renewable Portfolio Standard, also had a gap between what was known at the time of adoption
and eventual successful implementation. By committing to the ambitious target of carbon
neutrality by 2035, the City will catalyze innovation, invite resources from funding sources and
partners, and provide climate leadership.
Should Council feel uncomfortable with the remaining emissions “gap”, it could direct staff to
return with an alternative, less ambitious goal. For example, Council could direct staff to
consider a goal consistent with the Paris Climate Accord (80 percent reduction below 1990 levels
by 2050) or California Governor’s Executive Order B-55-18 (carbon neutral by 2045).
KEY QUESTION # 4 – Is Council comfortable with the uncertainty surrounding the
remaining emissions reduction “gap” of 104,160 MTCO2e? As an alternative, would
Council prefer adopting a less ambitious target?
Climate Action Plan Update Schedule
The City has a proud history of community driven financial planning, as illustrated by its award
winning biennial financial plans. Staff is recommending that as part of the Climate Action Plan,
Council makes a firm commitment to update and adopt a new Climate Action Plan on an “every
other” Financial Plan cycle. This can be done by Resolution during the adoption of the plan
scheduled in Spring 2020. This allows for certainty in the update schedule, and most importantly,
that it is directly tied to the financial decision making and prioritization process. The proposed
update schedule is provided as Figure 4.
22 For example: https://www.kqed.org/science/1951005/the-cost-of-battery-storage-plummets-at-the-right-moment-
for-california
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Figure 4. Proposed Climate Action Plan Update Schedule
Should Council direct staff to proceed with this update schedule, it would afford multiple
benefits. First, there are numerous foundational efforts that are required to be undertaken over
the next several years that will identify the potential effectiveness and feasibility of critical
measures. As such, the findings of the 2020 Climate Action Plan will include high levels of
uncertainty, but this will continually be refined and addressed on a set schedule. Second, tying
the Climate Action Plan to the biennial Financial Plan cycle allows the CAP to focus on
impactful actions and the resources necessary to be complete them on a 3-4-year time period.
Third, regular updates allow for the integration of lessons learned and emerging best practices,
which can proactively address the “emissions gap”, as described above.
KEY QUESTION # 5 – Does Council want staff to commit to a Climate Action Plan Update
schedule that is coordinated with the City’s customary Financial Plan process?
Public Engagement
The City has already conducted extensive outreach in support of climate action generally and the
Climate Action Plan specifically. Staff will continue to engage through adoption of the Climate
Action Plan and into the implementation phase of the plan. Staff has set an internal target on
reaching 1,000 people throughout the process with an additional target of ensuring the
demographic characteristics of the community are represented proportionately.
Through events and outreach activities completed to date, approximately 750 people have
participated. However, these outreach activities have not yet reached the demographically
representational engagement that staff has hoped for. Therefore, feedback received from these
events is not yet wholly representative of the City’s community. Staff will look to expand
participation to non-traditional stakeholders in the next phase of the project.
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Events Completed to Date
1. 2018 City Council Study Session: Staff presented to council on the status of the CAP
Update, the results of the Community GHG Emissions Inventory, and Emissions Target
Options. Council then directed staff to pursue a GHG reduction measure more aggressive
than that outlined in SB 32.
2. 2019-21 Budget Open City Hall and Community Meeting: As part of the 2019 -21
Financial Plan development, the City hosted an online forum, a community meeting, and
a Public Hearing. Through the process, staff received climate action feedback and ideas
from hundreds of residents.
3. Workshop #1: This open-house workshop consisted of an overview presentation of the
Climate Action Plan and designated time for participants to share their “big ideas” for
achieving carbon neutrality. The workshop had 35 participants.
4. Open City Hall Activity #1: Staff designed and facilitated an interactive online activity
where participants had the opportunity to respond to prompts, share feedback, and
provide suggestions regarding the CAP Update. The activity had 71 participants.
5. Business Roundtable Meeting 1 and 2: Staff invited members of the business community
to share initial ideas for how they can take ownership of business-related climate action
initiatives. The meeting had 25 participants.
6. Climate Solutions Speaker Series: The City partnered with the SLO Climate Coalition to
host several educational events related to climate action. Completed events include:
a. Climate Solution Speaker Series 1: This kickoff event was a celebration of San
Luis Obispo’s decision to be carbon neutral by 2035. The event featured booths
from local organizations including ECOSLO, Monterey Bay Community Power,
Sierra Club, and SLO Transit, as well as a panel discussion with Mayor Harmon
and representatives from the SLO Chamber of Commerce and Cal Poly State
University. The kickoff event had 250 participants.
b. Climate Solution Speaker Series 2: This event was centered around a presentation
by Hal Harvey—CEO of Energy Innovation, a San Francisco-based energy and
environmental policy firm—discussing the effectiveness and benefits of potential
policies as climate solutions. The presentation was followed by a forum where
leaders from community organizations had the chance to ask H al questions and
share their climate policy-related concerns and priorities. The event had 110
participants.
c. Climate Solution Speaker Series 3: This was a two-part event comprised of a
panel discussion on Building Decarbonization and a Building Expo featuring
appliances, technologies, and materials that will be a part of the electrification
process. The panel discussion had over 75 participants; hundreds of additional
people visited the vendors at the Building Expo.
7. Farmers’ Market booths in October and November: City Staff hosted a booth in October
and November to provide information about the Climate Action Plan update.
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Upcoming Public Engagement
Staff has planned a series of public outreach activities after this study session to gain community
input on (a) how to best implement the emissions reduction strategies outlined in the CAP
update, (b) how to successfully integrate equity into implementation of the foundational actions,
and (c) areas where community partners and other agencies can commit to their own actions to
help achieve carbon neutrality.
While some community members frequently attend and participate in formal public meetings and
events, many residents are often unable to engage due to personal and professional
commitments, or because they do not feel comfortable participating in standard “town hall style”
meeting formats. The public engagement strategy for the remainder of the CAP Update will
consists of a combination of online, formal focus group, informal pop-up, and internal and
external presentation activities to maximize opportunities for feedback and ensure that input
reflects the diverse interests of the San Luis Obispo community.
Planned activities include:
1. Farmers’ Market booths in February and March
2. An open invitation workshop in January with related neighborhood pop up events to
allow comment and discussion on proposed CAP measures ahead of a public review draft
release.
3. An Open City Hall in January providing updates on the CAP Update progress and
opportunity for stakeholders such as residents, businesses and students to provide
commentary and feedback.
4. Weekly social media posts detailing past and current efforts by the City related to the
CAP.
NEXT STEPS
Next steps are dependent on the feedback received from Council. Should Council be in general
agreement with the approach to decarbonization and foundational actions presented in this
report, staff would proceed on the following schedule:
• December 2019 – Develop Public Review Draft Climate Action Plan
• January - March 2020 – Release Public Review Draft Climate Action Plan and share with
stakeholders
• March – April 2020 – Present Final Climate Action Plan to Council for adoption
• April 2020 – January 2023 – Implement Climate Action Plan
Should Council provide direction that the approach and foundational actions, as proposed, are
insufficient or require additional work, staff would adjust the timeline presented above based on
the amount of additional work required.
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FOCUS QUESTIONS FOR STUDY SESSION
Summary Focus Questions for Study Session
1. Is Council supportive of preparing this Climate Action Plan update accounting only for the
emissions sectors required by the US Community Protocol, while continuing to monitor and
track emerging protocols for voluntary emission sectors. As an alternative, would Council
prefer staff pause the Climate Action Plan update process until one or more of the identified
voluntary sectors are inventoried?
2. Does Council agree with staff’s recommendation for how to approach “carbon neutrality” as
described in the narrative, above?
3. Does Council concur with the pillars, measures, and foundational actions as presented in
this report. Do they contain anything that should be removed? Are they missing anything?
4. Is Council comfortable with the uncertainty surrounding the remaining emissions reduction
“gap” of 104,160 MTCO2e? As an alternative, would Council prefer adopting a less
ambitious target?
5. Does Council want staff to commit to a Climate Action Plan Update schedule that is
coordinated with the City’s customary Financial Plan process?
CONCURRENCE
Public Works, Utilities, and Community Development have contributed to and concur with this
report.
ENVIRONMENTAL REVIEW
The California Environmental Quality Act does not apply to the recommended action in this
report, because the action does not constitute a “Project” under CEQA Guidelines Sec. 15378.
FISCAL IMPACT
Budgeted: No Budget Year: 2019-20
Funding Identified: No
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Fiscal Analysis:
Funding Sources Current FY Cost
Annualized
On-going Cost
Total Project
Cost
General Fund
State
Federal
Fees
Other:
Total $0 $0 $0
This study session in and of itself has no fiscal impact. The fiscal impact of the Climate Action
Plan update will be influenced by Council feedback at this study session about CAP priorities
and direction regarding foundational actions.
However, once the foundational actions are confirmed, they will be brought before Council as
part of the Climate Action Plan approval process, at which point, there will be a more nuanced
fiscal impact discussion. Some of the foundational actions are focused on reorientation of
organizational values to intentionally focus on equity and climate, others are focused on policy
initiatives that can be completed with existing staff resources. Many of the foundational actions
have already been committed to through the 2019-21 Financial Plan or are carryover tasks from
the 2017-19 Financial Plan paid for by encumbered funding.
Several proposed foundational actions are new and would require a re-prioritization of work
efforts or new budget. Where this is the case, staff will provide additional information for
consideration in public review draft Climate Action Plan. Some actions may have unknown
implementation costs. In those cases, the resources requested for the foundational actions will be
for the initial inquiry stage and eventual implementation resources will need to be identified prior
to further implementation.
Attachments:
a - Draft City of San Luis Obispo Greenhouse Gas Emissions Inventory
b - Draft City of San Luis Obispo Community GHG Reduction Measure Report
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Community
Greenhouse Gas Emissions
Inventory and Forecast
DRAFT
A Product of the
City of San Luis Obispo Office of Sustainability
Drafted in 2018
Revised in 2019
PLEASE REPORT ANY ERRORS OR SUGGESTIONS FOR IMPROVEMENT TO CREAD@SLOCITY.ORG
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City of San Luis Obispo – DRAFT 2016 GHG Inventory Update
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Table of Contents
Introduction .............................................................................................................................. 1
1. Community GHG Inventory Overview ................................................................................. 1
2005 Community GHG Inventory ..................................................................................... 2
2005 Updated Community GHG Inventory ....................................................................... 2
2016 Community GHG Inventory ..................................................................................... 3
Progress Toward 2020 Target ......................................................................................... 4
Progress to State GHG Reduction Targets ...................................................................... 4
2. Community Energy .............................................................................................................. 6
Community Energy Sector Overview ............................................................................... 6
Updated Inventory Data and Methods .............................................................................. 6
Total Energy GHG Emissions .........................................................................................12
3. Transportation .....................................................................................................................14
Transportation Sector Overview ......................................................................................14
Updated Inventory Data and Methods .............................................................................14
Total Transportation GHG Emissions ..............................................................................15
4. Solid Waste ..........................................................................................................................16
Solid Waste Sector Overview ..........................................................................................16
Updated Inventory Data and Methods .............................................................................16
Total Solid Waste GHG Emissions .................................................................................21
5. Forecast ...............................................................................................................................23
6. Areas for Improvement .......................................................................................................25
List of Abbreviations ..............................................................................................................27
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List of Tables
Table 1.1. San Luis Obispo Community GHG Emissions (2005) ................................................ 2
Table 1.2. 2005 update baseline GHG emissions. ..................................................................... 3
Table 1.3. 2016 GHG emissions. ............................................................................................... 4
Table 1.4. GHG emissions, 2005-2016 (MTCO2e). .................................................................... 4
Table 1.5. Progress to AB32 and SB 32 target (MTCO2e). ......................................................... 5
Table 2.1. Community electricity activity data, 2005-2016 (kWh). .............................................. 6
Table 2.2. Electricity conversion factor (MTCO2e/kWh). ............................................................. 7
Table 2.3. Community electricity GHG estimates, 2006-2015 (MTCO2e). .................................. 8
Table 2.4. Community natural gas activity data, 2005-2016 (Therms). ......................................10
Table 2.5. Local Government Operations Protocol (LGOP) natural gas carbon dioxide equivalent.
.................................................................................................................................................11
Table 2.6. Community Natural Gas GHG estimates, 2005-2016 (MTCO2e). .............................11
Table 2.7. Energy GHG emissions, 2005-2016 (MTCO2e). .......................................................12
Table 3.1. 2005 and 2016 VMT estimates. ................................................................................14
Table 4.1. City solid waste activity data, 2008-2016 (Disposal Ton). .........................................16
Table 4.2. Total percent of waste degradable based on waste type. .........................................18
Table 4.3. Conversion to metric tons of methane. .....................................................................19
Table 4.4. Recorded methane capture rates from Cold Canyon Landfill. ...................................19
Table 4.5. Percent of emissions reaching the atmosphere. .......................................................20
Table 4.6. Disposed solid waste conversion factor with Fifth Assessment Report global warming
potential (MTCO2e/Disposal Ton). .............................................................................................20
Table 4.7. Total solid waste disposed emissions (MTCO2e). .....................................................21
List of Figures
Figure 2.1. Electricity emissions factor (MTCO2e/kWh). ............................................................. 8
Figure 2.2. Total community electricity activity data and GHG estimates, 2006-2016. ................ 9
Figure 2.3. Energy GHG emissions, 2005-2016. .......................................................................13
Figure 4.1. Total City solid waste (Disposal Ton). .....................................................................17
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Introduction
A greenhouse gas (GHG) inventory is a comprehensive measure of GHG emissions that have
occurred as the result of activity in a jurisdiction or a geographic area in a calendar year. It is
common to prepare two separate GHG inventories, one for local government operations only and
the other for community-wide emissions. Though inventories are custom to their jurisdiction, local
government GHG inventories typically include the accounting of emissions from the buildings,
facilities, and vehicles operated by a local government, while community-wide inventories typically
include accounting of emissions from all businesses, residents, and transportation within the
jurisdictional boundary.
This report focuses on community-wide GHG emissions. Section 1 of this report provides an
overview of the community GHG emissions inventories and forecasts. Sections 2-5 provide
detailed summaries of the inventoried GHG emissions sectors. Section 6 provides a detailed
description of the GHG forecasts and a discussion of the City’s progress toward its GHG reduction
targets. Section 7 concludes the report with a description of areas for improvement.
1. Community GHG Inventory Overview
In 2012, the City of San Luis Obispo (City) adopted the City of San Luis Obispo Climate Action
Plan (CAP) to achieve GHG emission reductions consistent with state law and City General Plan
policy. The foundation of the CAP is the 2005 baseline GHG inventory (completed in 2009), which
estimates the GHG emissions that occurred as the result of activity in the city.
In the 2017 California Climate Change Scoping Plan, the California Air Resources Board notes,
“In developing local plans, local governments should refer to ‘The U.S. Community Protocol for
Accounting and Reporting of Greenhouse Gas Emissions’ (community protocol), which provides
detailed guidance on completing a GHG emissions inventory at the community scale in the United
States – including emissions from businesses, residents, and transportation.” The City prepared
a 2016 comprehensive community-wide and local government GHG emissions inventory update
compliant with all relevant protocols and guidance documents including the U.S. Community
Protocol, Local Government Operations Protocol (LGOP), the Global Protocol for Community
Scale GHG Emissions (GPC), and the Intergovernmental Panel on Climate Change (IPCC)
Guidelines for National GHG Inventories. The community-wide GHG inventory is the foundation
for the Climate Action Plan Update, which is expected to be adopted in 2020.
In the 2017 Scoping Plan, the California Air Resources Board directs local governments to the
U.S. Community Protocol for Accounting and Reporting of Greenhouse Gas Emissions. The
Community Protocol includes required emissions sectors that must be inventoried including use
of electricity, onsite fuel combustion (i.e., natural gas), energy used for water conveyance and
treatment, use of on-road vehicles, and generation of solid-waste.i This report presents a
i i The electricity and natural gas sectors of the City’s GHG inventory (as described in this report and
provided in Attachment A) include energy used to convey and treat water.
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summary of the updated 2005 GHG emissions and details the 2016 community GHG inventory
completed in 2018 and revised in 2019.ii
Greenhouse gas emissions are not measured directly. They are modeled and estimated by
multiplying data about some activity (e.g., the amount of electricity consumed, the number of miles
travelled in fossil fuel powered vehicles, the tons of solid waste sent to the landfill, etc.) by the
greenhouse gas emission content of a typical unit of that activity (e.g., the average greenhouse
gas emissions content per therm of combusted natural gas). This inventory accounts for three
common greenhouse gasses: carbon dioxide (CO2), methane (CH4), and nitrous oxide (N20).
Since methane and nitrous oxide are substantially more potent greenhouse gases than carbon
dioxide (86 and 265 times more potent, respectively), the emissions modeled from their release
into the atmosphere are multiplied by their respective potential to warm the atmosphere relative
to CO2. The common reporting unit for greenhouse gas emissions is “Metric Tons of Carbon
Dioxide Equivalence”, or MTCO2e.
2005 Community GHG Inventory
In 2009, the community’s total 2005 baseline GHG emissions were estimated to be 264,237
metric tons of carbon dioxide equivalent (MTCO2e). The inventory included energy (residential
and nonresidential), transportation, and waste sectors. Of the three sectors, transportation
contributed the largest amount of GHG emissions with estimated emissions of 132,142 MTCO 2e
or 50 percent of the total City emissions. The second largest sector was commercial and industrial
energy use with estimated emissions of 57,950 or 22 percent of the total City emissions. The
commercial and industrial energy and waste sectors made up the remaining 28 percent of the
total city emissions. Table 1.1 presents the original estimated 2005 GHG emissions by sector and
their percent of total emissions.
Table 1.1. San Luis Obispo Community GHG Emissions (2005)
Community Sector MTCO2e Percent of Total
Transportation 132,142 50%
Nonresidential Energy 57,950 22%
Residential Energy 55,377 21%
Waste 18,768 7%
Total 246,237 100%
Source: City of San Luis Obispo Climate Action Plan (2009)
2005 Updated Community GHG Inventory
To assess climate action progress, the City updated the 2005 baseline inventory for consistency
with current protocols and best practices. This section provides updated GHG emissions data
estimates for the baseline year of 2005 to allow for an “apples to apples” comparison to the 2016
GHG inventory. The City updated the 2005 GHG inventory to reflect an updated scientific
understanding of how different greenhouse gasses contribute to global warming, to include a
ii Due to lagging data availability, 2016 is the most recent year for complete GHG inventory data. Annual
inventory updates will occur beginning in 2020. Where more current information is available by sector, it is
provided in this report.
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more accurate assessment of transportation related emissions, and to respond to changes to data
privacy rules and collection methods that affect how data is provided.
Table 1.2 provides the updated 2005 baseline GHG emissions inventory with updated total GHG
emissions of 386,630 MTCO2e. Similar to the original 2005 inventory, the largest sector
contributing to the City’s total GHG emissions was transportation with an estimated emissions
total of 225,390 MTCO2e or 58 percent of the City’s total.iii The commercial and industrial energy
sector was the second largest sector contributing a total of 58,050 MTCO2e GHG emissions or
15 percent of the City’s total. The remaining sectors of residential energy and solid waste made
up the remaining 28 percent of the City’s total emissions in 2005.
Table 1.2. 2005 update baseline GHG emissions.
Sector Subsector Subsector
MTCO2e
Sector
MTCO2e
Sector Percent
of Total
Transportation On-Road Transportation 225,390 225,390 58%
Nonresidential
Energy
Commercial/Industrial electricity 35,510 58,050 15%
Commercial/Industrial natural gas 22,540
Residential
Energy
Residential electricity 20,870 55,450 14%
Residential natural gas 34,580
Solid Waste
Community-wide municipal solid
waste disposal tons 47,740 47,740 12%
Total 386,630 100%
2016 Community GHG Inventory
In 2018, the City prepared a community-wide inventory of GHG emissions for the 2016 calendar
year. Table 1.3 provides the 2016 GHG emissions inventory results. In 2016, San Luis Obispo’s
total GHG emissions were estimated to be 339,290 MTCO2e. As in 2005, transportation was the
largest contributor to the City’s total GHG emissions with an estimated 212,980 MTCO2e or 63
percent of the City’s total emissions. Commercial and Industrial energy was the second largest
sector with GHG emissions of 44,270 MTCO2e or 13 percent of the City’s total emissions. The
sectors of residential energy and solid waste account for the remaining 26 percent of the City’s
total 2016 GHG emissions.
iii Section 3 provides an explanation for the significant increase in estimated transportation emissions in the
revised 2005 baseline over the original draft.
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Table 1.3. 2016 GHG emissions.
Sector Subsector Subsector
MTCO2e
Sector
MTCO2e
Sector Percent
of Total
Transportation On-Road Transportation 212,980 212,980 63%
Nonresidential
Energy
Commercial/Industrial electricity 22,050 44,270 13%
Commercial/Industrial natural gas 22,220
Residential
Energy
Residential electricity 10,320 39,410 11%
Residential natural gas 29,090
Solid Waste
Community-wide municipal solid
waste disposal tons 42,630 42,630 13%
Total 339,290 100%
Progress Toward 2020 Target
Table 1.4 provides a comparison overview of emissions from baseline year 2005 to 2016 to show
the City’s progress toward its target to reduce GHG emissions 15 percent below 2005 emission
levels. Over the eleven-year period, emissions were estimated to have dropped by 13 percent.
The most significant changes occurred in the energy, solid waste, and off-road sectors.
• Energy emissions dropped by approximately 21 percent and reflects a significant change
in the carbon intensity of grid consumed electricity, a substantial increase in rooftop
renewable energy systems, and investment in energy efficiency.
• Solid waste emissions decreased by approximately 11 percent due to a decrease in the
amount of solid waste produced by San Luis Obispo residents and businesses.
Section 2 provides a detailed report for each GHG emissions sector and the changes in emissions
from each sector from 2005 to 2016.
Table 1.4. GHG emissions, 2005-2016 (MTCO2e).
Sector 2005 2016 Percent Change
Transportation 225,390 212,980 -6%
Nonresidential Energy 58,050 44,270 -24%
Residential Energy 55,450 39,410 -29%
Solid Waste 47,740 42,630 -11%
Total 386,630 339,290 -12%
Progress to State GHG Reduction Targets
The key drivers for updating the community GHG inventory are 1) to assess progress toward the
City’s GHG emissions reduction target, and 2) to establish the foundation for the Climate Action
Plan update. Consistent with Assembly Bill (AB) 32, the City’s current adopted target is to achieve
a 15 percent reduction below baseline emissions by 2020. Since the baseline inventory was
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updated through this inventory process, resulting in a slightly increased baseline, a new target
must be calculated.
As noted in Table 1.5 and Figure 1.2, a 15 percent reduction in baseline emissions is 328,640
MTCO2e from the updated baseline year emissions of 386,630 MTCO2e. The 2016 emissions
estimate of 339,290 MTCO2e represents a 12 percent reduction in GHG emissions, notable
progress toward the 2020 target.
Since adoption of the City’s CAP in 2012, the state adopted a 2030 target through Senate Bill
(SB) 32. If the City adopts a 2030 goal that matches the state target of reducing GHG emissions
40 percent below the 2020 target levels, the target for San Luis Obispo would be 197,180
MTCO2e. In September of 2018, Council directed staff to develop a climate action plan with a
reduction target of carbon neutrality by 2035. A carbon neutrality by 2035 target would require
achieving a far greater reduction than the SB32 requirements by 2030.
Table 1.5. Progress to AB32 and SB 32 target (MTCO2e).
Year Emissions
2005 (Updated) 386,630
2016 339,290
2020 Target (Updated) 328,640
2030 Target (40% below 1990) 197,180
2035 Target (Carbon Neutral) 0
Figure 1.2. Progress to AB32, SB 32, and Carbon Neutrality target.
386,630
339,290 328,640
197,180
00
50,000
100,000
150,000
200,000
250,000
300,000
350,000
400,000
450,000
2005 2016 2020 Target
(Updated)
2030 Target (40%
below 1990)
2035 Target
(Carbon Neutral)
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2. Community Energy
Community Energy Sector Overview
This section presents the GHG emissions for the energy sector, specifically emissions generated
from residential and non-residential energy use that has occurred within City limits. This section
presents the updated 2005 GHG emissions along with updated emissions for 2016.
Updated Inventory Data and Methods
The update to the 2005 inventory for the energy sector incorporates changes in scientific
understanding of how different greenhouse gasses contribute to global warming and changes to
data privacy rules that affect how energy data is retained and provided. This section provides
updated electricity and natural gas activity data and emissions estimates for the baseline year of
2005, as well as electricity and natural gas activity data and GHG emissions estimates for years
2005 through 2016.
Electricity
Pacific Gas & Electric (PG&E) Company provides electric service to the community and offers
community electricity data to local agencies through the PG&E Green Community Portal. The
electricity data (presented in kilowatt-hours, or kWh) in Table 2.1 is separated between residential
and non-residential uses, which is the finest resolution possible to prevent data from being
removed for privacy purposes.
Table 2.1. Community electricity activity data, 2005-2016 (kWh).
Year Residential Nonresidential Total
2005 93,045,220 158,267,695 251,312,915
2006 94,844,802 165,562,683 260,407,485
2007 92,479,221 170,259,426 262,738,647
2008 91,007,229 176,783,866 267,791,095
2009 89,252,248 183,654,370 272,906,618
2010 87,910,124 218,185,988 306,096,112
2011 86,239,267 172,742,643 258,981,910
2012 85,773,964 172,045,211 257,819,175
2013 84,492,752 171,842,797 256,335,549
2014 78,932,662 171,846,749 250,779,411
2015 78,069,529 170,606,678 248,676,207
2016 76,376,280 163,204,691 239,580,971
2017 76,543,278 165,277,531 241,820,809
2018 74,076,694 159,958,964 234,035,658
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Nonresidential electricity use includes commercial, governmental, agricultural, and industrial
usage. From 2005 to 2016, residential electricity usage decreased by 18 percent and non-
residential electricity consumption increased approximately 3 percent. Between 2005 and 2016,
total electricity use decreased by 5 percent. Table 2.1 includes activity data for 2017 and 2018 for
informational purposes. Data for both years indicate a continuing downward trend.
The 18 percent decrease in residential electricity usage may be due to low residential growth, a
significant increase in residential renewable energy installations, increases in energy efficiency
investments, and overall trends toward conservation.
To calculate GHG emissions, an emissions factor is applied to the activity data. Table 2.2 shows
the electricity emissions factors for the three major greenhouse gasses occurring as the result of
electricity use in the city. PG&E staff provided CO2 emissions factors via the Green Community
Portal data request in 2018 and 2019. In addition to carbon dioxide (CO2), small amounts of
methane (CH4) and nitrous oxide (N2O) are released in the electricity generation process. CH4
and N2O emissions factors are provided by PG&E’s third-party-verified GHG inventory. Variability
of the emissions factors occur primarily due to two factors: 1) fluctuations in hydro power
production as the result of precipitation variability, and 2) increasing renewable energy sources in
PG&E’s power portfolio. CO2 is the most commonly referenced GHG, however, numerous gasses
have greenhouse characteristics. Methane and nitrous oxide are commonly accounted for in GHG
inventories. These gasses have a greater global warming potential; CH4 traps approximately 86
times as much heat as CO2 over a 20-year period and N2O traps approximately 265 times as
much heat. To account for these differences, a factor is applied to the gasses emissions to
calculate aCO2 equivalence. Table 2.2 provides the emissions factors for 2005 through 2018. Due
to changes in PG&E’s energy portfolio (and particularly an increase in renewable energy
supplies), the 2016 emissions factor is approximately 40 percent lower than the 2005 factor.
Figure 2.1 illustrates the changes in MTCO2e/kWh factors from 2005 to 2016.
Table 2.2. Electricity conversion factor (MTCO2e/kWh).
Year kWh/MTCO2e
2005 0.000224
2006 0.000208
2007 0.000290
2008 0.000292
2009 0.000262
2010 0.000203
2011 0.000179
2012 0.000203
2013 0.000195
2014 0.000198
2015 0.000185
2016 0.000135
2017 0.000097
2018 0.000134
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Figure 2.1. Electricity emissions factor (MTCO2e/kWh).
Table 2.3 provides the GHG emissions from electricity use in the city by residential and
nonresidential subsectors from 2005 to 2016. During this time, electricity related residential GHG
emissions decreased by approximately 30 percent, while nonresidential electricity emissions
decreased by approximately 12 percent. Overall emissions decreased approximately 18 percent
over the same period.
Table 2.3. Community electricity GHG estimates, 2006-2015 (MTCO2e).
Year Residential Nonresidential Total
2005 20,870 35,510 56,380
2006 19,840 34,620 54,460
2007 26,880 49,490 76,370
2008 26,650 51,770 78,420
2009 23,450 48,240 71,690
2010 17,910 44,440 62,350
2011 15,530 31,120 46,650
2012 17,480 35,050 52,530
2013 16,520 33,600 50,120
2014 15,710 34,210 49,920
2015 14,480 31,640 46,120
2016 10,320 22,050 32,370
2017 7,430 16,040 23,470
2018 9,940 21,470 31,410
0.000000
0.000050
0.000100
0.000150
0.000200
0.000250
0.000300
0.000350
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
MT
C
O
2
e
/
k
W
h
Year
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Figure 2.2 illustrates GHG and kWh activity data trends between 2005 and 2016 on the same
chart. It is important to note that while overall electricity use has been steadily decreasing, GHG
emissions have been more variable due to changes in PG&E’s power portfolio and the related
carbon intensity of the electricity it supplies.
Figure 2.2. Total community electricity activity data and GHG estimates, 2006-2016.
0
10,000
20,000
30,000
40,000
50,000
60,000
70,000
80,000
90,000
0
50,000,000
100,000,000
150,000,000
200,000,000
250,000,000
300,000,000
350,000,000
2005 2007 2009 2011 2013 2015
kWh MTCO2e
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Natural Gas – Direct Emissions
Natural gas is primarily composed of methane and includes very small amounts of ethane,
propane, butane, pentane, nitrogen, and carbon dioxide. When natural gas is combusted, most
of the methane becomes carbon dioxide and water. Traditionally, greenhouse gas emissions
inventories account for the emissions that occur as the result of the onsite combustion of natural
gas. Southern California Gas Company (SoCalGas) provides natural gas utility services in the
city. Table 2.4 provides the natural gas activity data in therms from 2005-2016 separated by
residential and nonresidential uses. Non-residential use combines commercial and industrial use.
Table 2.4. Community natural gas activity data, 2005-2016 (Therms).
Year Residential Nonresidential Total
2005 6,460,870 4,211,790 10,672,660
2006 6,643,410 4,501,180 11,144,590
2007 6,702,810 4,532,760 11,235,570
2008 -- -- --
2009 -- -- --
2010 -- -- --
2011 -- -- --
2012 -- -- --
2013 -- -- --
2014 5,275,340 3,987,264 9,262,604
2015 5,068,160 3,952,562 9,020,722
2016 5,435,586 4,151,275 9,586,861
2017 5,667,638 4,289,700 9,957,338
2018 5,621,586 4,227,571 9,849,157
Note: 2008-2013 data is not available.
As a company policy, SoCalGas only retains community natural gas data through 2014, which
means the data in the original 2005 baseline inventory must be used in conjunction with the data
provided via an Energy Data Request Portal request submitted by City staff in 2017. Since
SoCalGas cannot confirm the 2005 inventory data, the comparison in natural gas consumption in
the baseline year and years 2014-2017 should be observed with caution. The natural gas data
provided in Table 2.4 shows a 16 percent decrease in residential therms and a 1 percent increase
in non-residential usage between 2005 and 2016. Combined, the natural gas sector has a net
decrease of 10 percent. Table 2.4 also includes 2017 and 2018 data for informational purposes
and illustrate a slight increase in natural gas use.
Just as with electricity, GHG emissions are estimated from activity data by applying an emission
coefficient to the activity data. Table 2.5 shows the emission coefficient for converting therms of
natural gas combusted on-site to MTCO2e. Unlike electricity, the inventory assumes no changes
in the carbon intensity of combusting natural gas in any given year, as the chemical composition
of combusted natural gas does not substantially vary from year to year.
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Table 2.5. Local Government Operations Protocol (LGOP) natural gas carbon dioxide
equivalent.
Greenhouse Gas MTCO2e/Therm
CO21 0.005310
CH41 0.000043
N2O1 0.000003
CO2e2 0.005320
Table 2.6 provides GHG emissions estimates in MTCO2e for natural gas consumption in the city
from 2005-2016. As noted in the natural gas activity data, there was a 16 percent decrease in
MTCO2e for residential and a 1 percent decrease for non-residential sectors with a total decrease
in natural gas-related emissions of 10 percent.
Table 2.6. Community Natural Gas GHG estimates, 2005-2016 (MTCO2e).
Year Residential Nonresidential Total
2005 34,580 22,540 57,120
2006 35,550 24,090 59,640
2007 35,870 24,260 60,130
2008 -- -- --
2009 -- -- --
2010 -- -- --
2011 -- -- --
2012 -- -- --
2013 -- -- --
2014 28,230 21,340 49,570
2015 27,120 21,150 48,270
2016 29,090 22,220 51,310
2017 30,330 22,960 53,290
2018 30,080 22,620 52,700
Note: 2008-2013 data is not available.
Natural Gas – Fugitive Emissions
Methane is a powerful greenhouse gas and 86 times stronger than carbon dioxide over a 20-year
time period in the atmosphere. As more is learned about the total natural gas system leakage rate
from well head, through the transmission system, to the distributions system, and at the end use,
it is becoming clear that fugitive methane emissions from the usage of natural gas is a critical
component of the climate crisis. Staff is currently working with technical experts to identify a
defensible method for estimating these emissions. Although not included in this report, they will
likely be included prior to the Climate Action Plan update that will be adopted in 2020.
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Total Energy GHG Emissions
Table 2.7 and Figure 2.3 show the total energy-related GHG emissions separated by energy type
and subsector. The residential energy subsector saw a 28 percent decrease in emissions
between 2005 and 2016. The nonresidential subsector emissions decreased by 24 percent.
Overall, energy GHG emissions dropped by 26 percent over the 11-year period. Note that Figure
2.3 provides total energy sector emissions with a dark line; the dashed line indicates a total
emissions estimate necessitated by SoCalGas’s inability to provide historical data.
Table 2.7. Energy GHG emissions, 2005-2016 (MTCO2e).
Year Residential Nonresidential Total Electricity Natural Gas Electricity Natural Gas Res. Nonres. Total
2005 20,870 34,580 35,510 22,540 55,450 58,050 113,500
2006 19,840 35,550 34,620 24,090 55,390 58,710 114,100
2007 26,880 35,870 49,490 24,260 62,750 73,750 136,500
2008 26,650 -- 51,770 -- -- -- --
2009 23,450 -- 48,240 -- -- -- --
2010 17,910 -- 44,440 -- -- -- --
2011 15,530 -- 31,120 -- -- -- --
2012 17,480 -- 35,050 -- -- -- --
2013 16,520 -- 33,600 -- -- -- --
2014 15,710 28,230 34,210 21,340 43,940 55,550 99,490
2015 14,480 27,120 31,640 21,150 41,600 52,790 94,390
2016 10,320 29,090 22,050 22,220 39,410 44,270 83,680
2017 7,430 30,330 16,040 22,960 37,760 39,000 76,760
2018 9,940 30,080 21,470 22,620 40,020 44,090 84,110
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Figure 2.3. Energy GHG emissions, 2005-2016.
113,500
83,680
0
20,000
40,000
60,000
80,000
100,000
120,000
140,000
160,000
2005 2007 2009 2011 2013 2015 2017
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3. Transportation
Transportation Sector Overview
This section presents the GHG emissions for the transportation sector and includes emissions
from all on-road trips (including cars, trucks, buses, etc.) that have occurred within City limits. This
section presents the updated 2005 GHG emissions along with updated emissions for 2016.
Updated Inventory Data and Methods
This section provides updated activity data and emissions estimates for baseline year 2005 and
activity data and emissions estimates for 2016. Since the 2005 baseline inventory was completed
in 2009, the state has updated emissions factors and legislation on fuel economy standards.
Additionally, the City has adopted a transportation model that more accurately models the vehicle
miles travelled in, to, and from city boundaries.
The original 2005 inventory used the “geographic system boundary” method which considers
transportation activity occurring solely within city boundaries, regardless of where a trip’s
destination begins or ends. This method included emissions from vehicles that were travelling
through city boundaries but did not account for any of “outside of city boundary” miles that
occurred from trips that originated or ended in the city.
In 2019, the City was able to use its own “origin-destination” transportation model to estimate the
vehicle miles for trips that began and ended in the city, trips that began outside the city and ended
in the city, trips that began in the city and ended outside the city, and trips that passed through
the city without stopping. Consistent with the preferred GPC accounting method, the updated
inventory includes 100 percent of internal trip miles, 50 percent of the miles for trips that start or
end in the city, and zero percent of the miles that are from vehicles passing through the city.
The updated transportation model currently only estimates vehicle miles travelled for calendar
year 2016. To estimate baseline 2005 emissions, the City replicated the 2005 “geographic system
boundary” model with 2016 data and found a 3 percent increase in vehicles miles travelled.
Assuming the two methods would capture the same scale and direction of change between 2005
and 2016, 2005 origin-destination VMT was estimated by reducing the 2016 VMT by 3 percent.
Table 3.1 reports the 2005 and 2016 VMT estimates.
Table 3.1. 2005 and 2016 VMT estimates.
Measure 2005 2016
Annual VMT 461,452,446 475,634,980
Source: City of San Luis Obispo, Public Works Department,
The origin destination model is preferred to the geographic model because it allows the City to
understand where trips are occurring. The new method identifies a key finding: over 80 percent
of community VMT occurred as the result of regional trips (e.g., trips to the city from outside the
city or trips from the city to areas outside the city).
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Vehicle miles traveled estimates for both years were converted to GHG emissions using the 2014
Emissions Factor (EMFAC) model. EMFAC represents the state’s current understanding of motor
vehicle travel activities and their associated emission levels. EMFAC 2014 is the latest U.S.
Environmental Protection Agency (EPA) approved motor vehicle emission model that assesses
emissions from on-road vehicles including cars, trucks, and buses in California. The City used
EMFAC 2014 to estimate emissions factors for this updated report.
Table 3.2 provides the VMT and associated GHG emissions for each vehicle class in San Luis
Obispo County for 2005 and 2016. GHG emissions were estimated using the California Air
Resources Board (CARB) EMFAC 2014 tool. Using VMT as inputs, EMFAC 2014 generated VMT
and CO2 emission results for both 2005 and 2016 for each type of vehicle common in San Luis
Obispo County. The City used this information to generate a CO2/VMT emissions factor specific
to San Luis Obispo County, reflecting the unique balance of different vehicle types, vehicle ages,
and vehicle fuels used county-wide.
EMFAC 2014 does not model CH4 and N2O emissions. The standard practice is to multiply CO2
emissions factors by 100/95 (approximately 1.05) to convert CO2 emissions to CO2e. As the
emissions factor generated by EMFAC is in tons of CO2/VMT, the City also converted the units of
this factor to metric tons. The City then applied this converted emissions factor to the total City
VMT given in Table 3.1. This resulted in the total annual greenhouse gas emissions.
Total Transportation GHG Emissions
Table 3.2 shows that as VMT was modelled to increase from 2005 to 2016 by 3 percent, the total
GHG emissions from on-road transportation decreased by approximately 6 percent. The decrease
in GHG emissions is attributed to state and federal fuel efficiency standards, low carbon fuel
standards, and an increasingly efficient overall fleet of vehicles (including an increased uptake of
electric, hybrid, and high efficiency vehicles) within the city that is resulting in the emissions
decline, despite an increase in miles driven.
Table 3.2. Total annual VMT emissions.
2005 2016
Total VMT MTCO2e/
VMT
Total
Emissions
Total VMT MTCO2e/
VMT
Total
Emissions
All vehicles 461,452,446 0.000488 225,390 475,634,980 0.000448 212,980
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4. Solid Waste
Solid Waste Sector Overview
This section presents the GHG emissions for the solid waste sector, specifically emissions from
the disposal of solid waste produced within City limits into a landfill. This section presents the
updated 2005 GHG emissions along with updated emissions for 2016.
Updated Inventory Data and Methods
This section provides updated solid waste activity data for the baseline year of 2005, as well as
activity emissions estimates for years 2005 through 2016 to estimate the City’s total greenhouse
gas emissions. The City of San Luis Obispo deposits all waste generated within city limits into the
Cold Canyon Landfill. Cold Canyon Landfill provided solid waste disposal data. Table 4.1 and
Figure 4.1 provide the City’s solid waste disposal tonnage for 2005 to 2016. Data for 2005 to 2007
was not able to be collected; therefore 2008 data was used as a proxy.
Table 4.1. City solid waste activity data, 2008-2016 (Disposal Ton).
Year Total Waste
(Disposal Ton)
2008 53,011
2009 47,483
2010 44,836
2011 39,497
2012 40,469
2013 42,094
2014 40,200
2015 44,530
2016 46,857
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Figure 4.1. Total City solid waste (Disposal Ton).
Green Waste
Green waste data was provided by the City of San Luis Obispo Utilities Department for years
2006 through 2016. Green waste is a part of the diverted waste stream to the Cold Canyon
Landfill, which means that it is not buried at the plant. Traditionally, green waste was either used
as alternative daily cover at the Cold Canyon Landfill or hauled to a windrow composting facility
near Santa Maria. There is no standard protocol for estimating the emissions from windrow
composting and therefore no emissions are estimated in this inventory. However, given the
importance of diverting organic materials, the subsequent construction and operation of an
anerobic digester to process organic green waste in 2018, and legislation requiring substantial
increases in organic waste diversion, staff will continue to monitor the availability of a standard
method and will include this information in future greenhouse gas and Climate Action Plan
updates.
Municipal Solid Waste GHG Emissions Conversion Factor
This inventory follows the “methane commitment method” to account for the future emissions
produced from annually deposited solid waste. This method requires the following steps:
1. Estimate the percent of degradable organic materials in landfilled waste.
2. Identify the conversion factor to translate tons of carbon dioxide to metric tons of methane.
3. Estimate the amount of methane per ton of landfilled waste that will enter the atmosphere.
4. Convert the estimate of methane to carbon dioxide equivalence.
0
10,000
20,000
30,000
40,000
50,000
60,000
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
To
n
n
a
g
e
Landfilled Waste
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1. Estimate the percent of degradable organic materials in landfilled waste.
The CARB Municipal Solid Waste Characterization Landfill Tool v. 1.3 provides landfill waste
characterization estimates for waste by type sent to California landfills. The waste types identified
in the waste characterization studies are listed in Table 4.2. For each of these waste types, the
tool includes California average estimates of the fraction of waste-in-place (WIPFRAC), total
degradable organic carbon (TDOC), and the decomposable anaerobic fraction (DANF) of the
waste type.iv There are two relevant waste characterization studies for this inventory: one from
2003 to 2006 and the other from 2007 to the present. Table 4.2 provides information about waste
characterization estimates used in this inventory, as well as the degradable organic content
(DOC) percent per ton of solid waste, which is calculated by multiplying WIPFRAC, TDOC, and
DANF for each waste type.
Table 4.2. Total percent of waste degradable based on waste type.
2003-2006 2007-Present
Waste Type WIPFRAC TDOC DANF DOC WIPFRAC TDOC DANF DOC
Newspaper 2.20% 47.09% 15.05% 0.16% 1.65% 47.09% 15.05% 0.12%
Office Paper 1.95% 38.54% 87.03% 0.65% 1.84% 38.54% 87.03% 0.62%
Corrugated Boxes 5.75% 44.84% 44.25% 1.14% 4.80% 44.84% 44.25% 0.95%
Coated Paper 11.09% 33.03% 24.31% 0.89% 8.98% 33.03% 24.31% 0.72%
Food 14.55% 14.83% 86.52% 1.87% 15.50% 14.83% 86.52% 1.99%
Grass 2.81% 13.30% 47.36% 0.18% 1.90% 13.30% 47.36% 0.12%
Leaves 1.41% 29.13% 7.30% 0.03% 3.24% 29.13% 7.30% 0.07%
Branches 2.59% 44.24% 23.14% 0.26% 1.95% 44.24% 23.14% 0.20%
Lumber 9.65% 43.00% 23.26% 0.96% 14.51% 43.00% 23.26% 1.45%
Textiles 4.44% 24.00% 50.00% 0.53% 5.47% 24.00% 50.00% 0.66%
Diapers 4.36% 24.00% 50.00% 0.52% 4.33% 24.00% 50.00% 0.52%
Construction/
Demolition 12.06% 4.00% 50.00% 0.24% 5.48% 4.00% 50.00% 0.11%
Medical Waste 0.04% 15.00% 50.00% 0.00% 0.00% 15.00% 50.00% 0.00%
Sludge/Manure 0.09% 5.00% 50.00% 0.00% 0.05% 5.00% 50.00% 0.00%
Source: CARB Municipal Solid Waste Characterization Landfill Tool v. 1.3
2. Identify the conversion factor to translate tons of carbon dioxide to metric tons of methane.
The next step in calculating the emissions factor is estimating the metric tons of methane to be
generated from the organic content in the landfilled waste. Solid waste activity data is reported in
tons, while the standard unit for GHG reporting is metric tons. Table 4.3 presents the conversion
factors to metric tons. As the decomposing organic content in landfilled solid waste transitions
from carbon to methane, the atomic mass changes as well. Since the CO2e in this inventory is
iv For more information, visit
https://ww3.arb.ca.gov/cc/protocols/localgov/pubs/landfill_emissions_tool_v1_3_2011 -11-14.xls
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presented as mass (metric tons), this change in mass is accounted for with the stoichiometric
ratio between CH4 and carbon.
Finally, of the total landfill gas generated from decomposing waste, approximately half is methane;
a methane gas fraction is applied to remove other gasses from the total. The remainder is biogenic
CO2 from vegetation from natural areas, crops, and urban vegetation and de minimus amounts of
N2O. The GPC advises against accounting for either of these gases in a community inventory.
Table 4.3. Conversion to metric tons of methane.
lbs/ton1 MT/lbs 1 Stoichiometric ratio
between CH4 and carbon2
Fraction of CH4 Gas in
Landfill Gas 3
Metric Tons of Methane
2000 0.000454 1.333333 0.5 0.604796
1 Standard conversion factor.
2 16/12, provided by the Global Protocol for Community -Scale Greenhouse Gas Emission Inventories.
3 IPCC Good Practices Guidance and Uncertainty Management in National Greenhouse Gas Inventories
(2000) default range.
3. Estimate the amount of methane per ton of landfilled waste that will enter the atmosphere.
The next factor in the solid waste emissions coefficient is the amount of landfill gas that is collected
by landfill gas capture systems. The San Luis Obispo County Air Pollution Control District (APCD)
provides landfill capture rates for Cold Canyon Landfill, as provided in Table 4.4 for the years
2008 – 2013. The landfill capture rate for 2006 is sourced from the County of San Luis Obispo
EnergyWise Plan Appendix A. Given the lack of data availability for several years, including 2005,
2007, 2014, 2015, and 2016 and the significant variability across years, this inventory relied on
the EPA’s standard landfill methane capture rate of 75 percent.
Table 4.4. Recorded methane capture rates from Cold Canyon Landfill.
Year Cold Canyon
2005 Not Available
2006 60%
2007 Not Available
2008 70%
2009 99%
2010 85%
2011 85%
2012 85%
2013 75%
The next phase of the equation considers the amount of methane that is oxidized in the soil. As
reported in Table 4.5, only 25 percent of landfill gas enters the atmosphere. Of that 25 percent,
10 percent is oxidized on site in the soil of the land fill cover. Of the 75 percent of the methane
that is captured, approximately 99 percent enters the atmosphere as CO2 due to the methane
being combusted as part of the flaring process. Approximately 23 percent of the total methane
emitted enters the atmosphere. Table 4.5 shows the factors used in this calculation.
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Table 4.5. Percent of emissions reaching the atmosphere.
Fraction of methane
recovered (frec) 1
Oxidation factor (OX)
2
Methane correction
factor (MCF) 3
Percent of Emissions
Reaching Atmosphere
75% 10% 99% 23.3%
1 Landfill gas capture rate, as provided by the Environmental Protection Agency
2 IPCC Good Practices Guidance and Uncertainty Management in National Greenhouse Gas Inventories
(2000) well-managed landfills factor.
3 IPCC Good Practices Guidance and Uncertainty Management in National Greenhouse Gas Inventories
(2000) managed landfill factor.
4. Convert the estimate of methane to carbon dioxide equivalence.
The solid waste CO2e conversion factor was calculated by multiplying the total degradable content
of each weight type (DOC), metric ton conversion factor, methane generation, and the IPCC Fifth
Assessment Report methane 20-year global warming potential (Table 4.6). The factors for each
waste type are then weighted by the waste composition data to obtain a single emissions factor
for a ton of mixed waste. In 2005 to 2006, each ton of solid waste deposited in a landfill is
estimated to produce approximately 0.901 MTCO2e per ton as it degrades over time. For 2007 to
2016, the conversion factor is 0.910 MTCO2e per ton of solid waste.
Table 4.6. Disposed solid waste conversion factor with Fifth Assessment Report global
warming potential (MTCO2e/Disposal Ton).
Waste Type 2003-2006
DOC1
2007-
Present
DOC1
Metric Ton
(MT)
CH4
emissions
CH4
GWP2
2003-2006
MTCO2e/
Ton
2007-
Present
MTCO2e/
Ton
Newspaper 0.16% 0.12% 0.604796033 0.2325 86 0.018893 0.014147
Office Paper 0.65% 0.62% 0.604796033 0.2325 86 0.079150 0.074673
Corrugated Boxes 1.14% 0.95% 0.604796033 0.2325 86 0.137882 0.115122
Coated Paper 0.89% 0.72% 0.604796033 0.2325 86 0.107692 0.087188
Food 1.87% 1.99% 0.604796033 0.2325 86 0.225818 0.240600
Grass 0.18% 0.12% 0.604796033 0.2325 86 0.021405 0.014505
Leaves 0.03% 0.07% 0.604796033 0.2325 86 0.003612 0.008322
Branches 0.26% 0.20% 0.604796033 0.2325 86 0.031997 0.024157
Lumber 0.96% 1.45% 0.604796033 0.2325 86 0.116652 0.175520
Textiles 0.53% 0.66% 0.604796033 0.2325 86 0.064439 0.079358
Diapers 0.52% 0.52% 0.604796033 0.2325 86 0.063217 0.062825
Construction/
Demolition 0.24% 0.11% 0.604796033 0.2325 86 0.029159 0.013245
Medical Waste 0.00% 0.00% 0.604796033 0.2325 86 0.000346 0.000000
Sludge/Manure 0.00% 0.00% 0.604796033 0.2325 86 0.000274 0.000155
Total -- -- -- -- -- 0.901 0.910
Note: Values are rounded causing final values to be inconsistent with calculations.
1 Source: CARB Municipal Solid Waste Characterization Landfill Tool v. 1.3.
2 IPCC Fifth Assessment Report
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Total Solid Waste GHG Emissions
To estimate the solid waste GHG emissions, the carbon dioxide equivalency conversion factor
was multiplied by the disposal ton activity data. Once these were applied, the annual solid waste
disposal ton emissions were calculated. As shown in Table 4.7, from 2005 to 2016, the solid waste
sector experienced a decrease in emissions by nearly 11 percent.
Table 4.7. Total solid waste disposed emissions (MTCO2e).
Year Total Waste
(Disposal Ton)
MTCO2e Conversion
Factor
Solid Waste Disposed
MTCO2e
2005 53,011 0.901 47,740
2006 53,011 0.901 47,740
2007 53,011 0.910 48,230
2008 53,011 0.910 48,230
2009 47,483 0.910 43,200
2010 44,836 0.910 40,790
2011 39,497 0.910 35,930
2012 40,469 0.910 36,820
2013 42,094 0.910 38,300
2014 40,200 0.910 36,570
2015 44,530 0.910 40,510
2016 46,857 0.910 42,630
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5. Forecast
The GHG emissions forecast estimates how San Luis Obispo’s emissions would change over
time if no action were taken to reduce emissions. The forecast is based on changes to the number
of people who live and work in San Luis Obispo. As the population grows and more people work
in the community, there will be an increase (absent state or local action) in the amount of energy
used, vehicle miles traveled, trash thrown away, and other activities that generate GHG
emissions.
The demographic projections used in the forecast come from the Land Use and Circulation
Element of the City’s General Plan, which guides long-term growth and development in the
community. These projections assume that the development anticipated in the Land Use and
Circulation is fully implemented by 2035. It is assumed that jobs in San Luis Obispo County
increase at a rate of 1.1 percent, as forecasted in the Land Use and Circulation Element, starting
from the number of jobs in the community in 2015 as reported by the US Census. Table 6.1 shows
the demographic changes assumed in the forecast and their applicable subsectors.
Table 5.1. Demographic projections (2005-2035).
Demographic
Indicator Applicable Subsectors 2005 2016 2020 2030 2035
Population None 44,519 46,117 48,826 53,934 56,686
Housing units Residential electricity, residential
natural gas 20,391 21,155 22,190 24,512 25,762
Jobs 1 Commercial/industrial electricity,
commercial/industrial natural gas 43,847 50,985 53,153 59,723 63,199
Service
population 2
On-road transportation, community-
wide MSW disposal 66,779 71,610 74,253 83,430 88,286
1 Future job numbers assume a 1.1 percent increase in the number of jobs relative to 2015 levels .
2 Per the method used by the San Luis Obispo Community Development Department, service population
is equal to the residential population plus ½ the number of jobs .
Sources: City of San Luis Obispo Land Use and Circulation Element, City of San Luis Obispo Community
Development Department, Economics & Planning Systems, US Census Bureau.
The forecasts also consider known relevant actions that will continue to reduce greenhouse gas
emissions. There are three major policies that the City and the State have adopted to reduce
GHG emissions at the local level:
• Renewables Portfolio Standard (RPS) and Community Choice Energy (CCE)
participation: RPS requires that electrical providers supply an increased amount of their
electricity from eligible renewable sources. At time of writing, a bill to revise the RPS (SB
100), has been passed by the California Legislature and signed by Governor Brown
requiring that 33% of the electricity sold by a provider by 2020 be renewable, that 60% of
electricity be renewable by 2030, and that 100% of all electricity must be carbon-free
(although not necessarily renewable) by 2045. This analysis assumes that SB 100 fully
implemented. Additionally, in December of 2018, the City of San Luis Obispo joined
Monterey Bay Community Power (MBCP), a community choice energy program.
Beginning in January of 2020, MBCP will be providing carbon free electricity to the
community. This forecast assumes that 2 percent of electrical load will opt to remain with
PG&E.
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• Title 24: This set of standards governs how new buildings must be constructed, including
specifying minimum energy efficiency requirements. The standards are updated every
three years to be more stringent. California’s zero net energy (ZNE) standards are
included in Title 24. The included forecast also assumes that the City’s Clean Energy
Choice Program has been implemented and that all new construction is either electric and
carbon free or has offset its emissions in the existing built environment.
• Clean Car Standards: These standards require that cars sold in California meet minimum
fuel efficiency requirements, and that vehicle and equipment fuel sold in the state emit
less GHGs during production and use. The City used the 2035 emissions coefficient
included in the EMFAC2014 modelling software, which includes assumptions about
ongoing fuel efficiency and fuel carbon content improvements.
The City has calculated the effect of these three policies on San Luis Obispo’s emissions and with
these three policies in place, San Luis Obispo’s future GHG emissions are expected to continue
to decrease. As shown in Table 6.2, emissions in 2020 are projected to be 306,600 MTCO2e (21
percent below 2005 levels), and in 2030 are expected to be at 275,730 MTCO2e (29 percent
below 2005 levels). In 2035, emissions with state policies in place are expected to be at 260,160
MTCO2e, or 32 percent below 2005 levels.
Table 5.2 Forecasted GHG emissions with state reductions, 2005-2050 (MTCO2e).
Sector 2005 2016 2020 2030 2035 Percent Change
(2005-2035)
Transportation 225,390 212,980 198,212 161,291 142,830 -37%
Nonresidential Energy 58,050 44,270 30,440 31,050 31,050 -46%
Residential Energy 55,450 39,410 33,760 33,720 33,720 -39%
Solid Waste 47,740 42,630 44,200 49,670 52,560 10%
Total 386,630 339,290 306,600 275,730 260,160 -32%
Change from 2005 -12% --21% -29% -32%
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6. Areas for Improvement
A greenhouse gas emissions inventory is only a partial snapshot of the total emissions occurring
in a community. The report as presented includes emissions sectors and categories as required
by global accounting protocol and represent those sectors that have defensible and transparent
methods and data. As the City continues its path of climate action toward carbon neutrality, the
following areas for improvement will be closely monitored:
• Energy in Water – The inventory presented in this report includes the energy required to
move and treat water in the city. However, it does not estimate emissions from the
conveyance of water from outside city limits to the city. Future inventories should identify
a defensible method to account for these emissions.
• Green Waste – All of the organic waste that is collected in the city is processed by an
anerobic digester that yields clean electricity and compost. Previously, the community’s
green waste was trucked to a wind row composting facility in Santa Maria, CA or landfilled
at Cold Canyon Landfill. The new approach is certainly reducing community emissions.
However, there are no available defensible methods for estimating emissions from wind
row composting, and therefore, no way to establish a baseline emissions level. The City
will continue to monitor GPC work on composting methods and will include as a sector
when available.
• Wastewater - The GPC requires local governments to account for direct process
emissions that occur from the treatment of wastewater. It is known that the treatment of
wastewater can release Nitrous Oxide and Methane, both of which are powerful
greenhouse gases. Although the GPC provides accounting methods for estimating the
direct release of emissions, an accounting protocol does not exist for the specific treatment
type that occurs at the San Luis Obispo Water Resource Recovery Facility (nitrification,
but no denitrification). Using an unvetted method, the City estimates these direct
emissions to be approximately 200 MTCO2e per year. Given the small size, this sector is
not critical for planning purposes, but will be included when future updates to the GPC
provide a defensible accounting method.
• Carbon Stocks and Sequestration – Greenhouse gas inventories do not need to evaluate
existing carbon stocks or potential for sequestration, but these analysis can help the City
understand how to better account for the existing value of these stocks and credit actions
in the future that either preserve or enhance the amount of sequestered carbon.
Sequestration, if included at all, is typically included in greenhouse gas inventories as an
Given the amount of land area in the General Plan Conservation/Open Space, estimating
the forestry and carbon stocks will be a meaningful part of a future inventory. As with the
wastewater issue mentioned above, the City will monitor GPC updates for defensible
accounting methods. Beyond that, the City is working with the cities of Vancouver B.C.,
San Francisco, and Boulder, CO to develop a tool for estimating emissions from carbon
stocks and sequestration potential.
• Fugitive Methane – From the well head to the appliance, methane leaks directly into the
atmosphere as the result of natural gas development and transmission. Some estimates
of total system leakage are high enough to make natural gas consumption as bad a climate
polluter as coal. A common protocol for amending the natural gas emissions coefficient to
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account for this leakage is not available. The City will consider updating the coefficient in
future years when such information is vetted and available.
• Consumption - The inventory does not include the emissions that result from community
consumption (e.g., consumption of food, clothing, packaging, etc.). Given the City’s intent
to work closely with the community in developing and implementing the climate action
plan, it is important to recognize the greenhouse gas impacts created by the purchase and
disposal of products and materials. Global climate action leadership cities are working on
developing a standard protocol for inventorying consumption-based emissions. As with
the other items in this section, the City will seek to include the sector when such a protocol
is available. It should be noted that emissions from consumption may be significant, some
cities estimate that consumption emissions increase their total inventoried emissions by
more than 40 percent.
• Off-road equipment – Practices exist to account for emissions from lawn and garden and
construction equipment. Using the Air Resources Board “OFFROAD” model, staff could
estimate emissions from this voluntary sector in order lay a foundation for policy to reduce
emissions from construction equipment and to reduce emissions from fossil fueled lawn
and garden equipment.
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List of Abbreviations
AB: Assembly Bill
ADT: Average daily trips
APCD: Air Pollution Control District
Caltrans: California Department of Transportation
CAP: Climate Action Plan
CARB: California Air Resources Board
CH4: Methane
CO2: Carbon dioxide
CO2e: Carbon dioxide equivalent
DANF: Decomposable anaerobic fraction
DOC: Degradable organic content
EPA: US Environmental Protection Agency
GHG: Greenhouse gas
IPCC: Intergovernmental Panel on Climate Change
kW: Kilowatt
kWh: Kilowatt-hour
LGOP: Local Government Operations Protocol
MSW: Municipal solid waste
MTCO2e: Metric tons of carbon dioxide equivalent
N2O: Nitrous oxide
PG&E: Pacific Gas & Electric Company
RPS: Renewables Portfolio Standard
SB: Senate Bill
TDOC: Total degradable organic carbon
VMT: Vehicle miles traveled
WIPFRAC: Fraction of waste in place
WRRF: Water Resource Recovery Facility
ZNE: Zero net energy
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DRAFT
Carbon Neutrality Vision
and
Three-Year Strategic Plan
Technical Report
City of San Luis Obispo Office of Sustainability
Drafted in November 2019
PLEASE REPORT ANY ERRORS OR SUGGESTIONS FOR IMPROVEMENT TO CREAD@SLOCITY.ORG
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Table of Contents
Introduction .............................................................................................................................. 1
1. Proposed Approach to Decarbonization ............................................................................ 1
1.1 Key Findings ..................................................................................................................... 1
1.2 Technical Foundation ....................................................................................................... 2
1.3 Decarbonization Approach ................................................................................................ 4
2. Pillars of Carbon Neutrality & Foundational Actions......................................................... 6
2.1 Lead by Example .............................................................................................................. 6
2.2 Clean Energy Systems ..................................................................................................... 8
2.3 Green Buildings ...............................................................................................................10
2.4 Connected Community ....................................................................................................13
2.5 Circular Economy ............................................................................................................16
2.6 Natural Solutions .............................................................................................................18
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List of Tables
Table 1.1. San Luis Obispo Community Greenhouse Gas Emissions (MTCO2e, 2005-2016) .... 3
Table 2.1. Proposed “Lead by Example” Foundational Actions (2020-2023) .............................. 7
Table 2.2. Proposed “Clean Energy Systems” Foundational Actions (2020-2023) ..................... 9
Table 2.3. Proposed “Green Buildings” Foundational Actions (2020-2023) ...............................11
Table 2.4. Proposed “Connected Community” Foundational Actions (2020-2023) ....................14
Table 2.5. Proposed “Circular Economy” Foundational Actions (2020-2023) ............................17
Table 2.6. Proposed “Natural Solutions” Foundational Actions (2020-2023) .............................19
List of Figures
Figure 1.1. Greenhouse Gas Emissions Reductions by Decarbonization Pillar .......................... 5
Figure 1.2. Proposed Climate Action Plan Update Schedule ...................................................... 5
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Introduction
In September of 2018, the City of San Luis Obispo City Council provided direction to staff to
develop a pathway to carbon neutrality by 2035 as part of the City’s Climate Action Plan update.
This target, based on scientific findings that global emissions need to be net neutral by 2050 to
stave off the worst impacts of climate change, would be one of the most ambitious in the nation
and requires substantial amounts innovation, flexibility, collaboration, leadership, and comfort with
uncertainty.
In 2019, City staff worked closely with technical consultants, peer cities, stakeholders, and
community members to identify how the task of achieving carbon neutrality could be approached,
and how City actions to achieve the target could be organized, established, and ultimately
implemented to enhance community health and wellbeing while also achieving deep
decarbonization. This report highlights a proposed approach to decarbonization and presents the
foundational actions needed to be implemented in the next three years to lay a foundation for high
impact climate action.
1. Proposed Approach to Decarbonization
1.1 Underlying Assumptions
Since the adoption of the City’s first Climate Action Plan in 2012, lessons have been learned in
the evolving field of climate action planning. The City’s proposed approach to significantly
reducing community greenhouse gas emissions is based on these lessons and include the
following:
1. Systems are responsible for the climate crisis. For decades the climate crisis has been
presented as the fault and responsibility of individuals. While it is true that everyone can
and should do their part in addressing the climate crisis, transformative change to a low
carbon, equitable, and sustainable community requires changes to the systems in which
a community functions (e.g., energy systems, waste systems, transportation systems,
economic development systems, etc.).i
2. The climate crisis and social equity must be addressed together. Many of the
conditions that have led to the climate crisis have also led to growing inequality.ii Leading
communities are turning to a focus on social equity to ensure a just distribution of the
benefits of climate action while also using the effort to give a voice to those not typically
i This conclusion is arrived at directly in the Carbon Neutral Cities Alliance Game Changers report, “Deep,
long-term decarbonization depends on transforming our cities’ key GHG-emitting systems and markets for
transportation, energy supply, buildings, solid waste, and food…” (http://carbonneutralcities.org/wp-
content/uploads/2018/09/CNCA-Game-Changers-Report-2018.pdf) and is also supported by recent
climate literature including Designing Climate Solutions (Harvey 2019), and echoed in national and local
“Green New Deal” proposals.
ii For a discussion on mobility and inequality, see: http://greenlining.org/wp-
content/uploads/2019/01/MobilityEquityFramework_8.5x11_v_GLI_Print_Endnotes -march-2018.pdf
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present in the decision making process.iii Low greenhouse gas emissions, equity, and
resilience are the organizing principles required for communities to thrive in the 21st
century.iv
3. Local governments are uniquely capable of certain actions. The City level of
government is uniquely situated to address issues related to land use and conservation,
building energy performance, creating conditions for housing production, supporting
certain economic development patterns, and prioritizing how the community’s co-owned
spaces are used. For structural changes to occur, the City should focus on these unique
capabilities. For other actions, the City can also coordinate with regional agencies and
other levels of government (state and federal) and support community partners to focus
on climate action in the fields that they are uniquely capable of (e.g., academic research,
entrepreneurial innovation, operational emissions of private organizations, etc.).
4. Leadership is needed and the world is watching. As a leadership city, San Luis Obispo
has an outsized role in how cities throughout the world are addressing their greenhouse
gas emissions. While many climate leadership cities are larger metropolitan areas, San
Luis Obispo as a small city is an inspiration for the over 17.5 million people in the US that
live in cities with 40,000-60,000 residents.v Staff are active participants in regional,
statewide, national, and international networks of cities, many of which are watching San
Luis Obispo closely to see what is possible.
1.2 Technical Foundation
The decarbonization path pursued by the City and the community depends on qualitative
variables such as shared values and shared visions for the future. In addition to these values, an
approach to decarbonization must also be based on quantitative analysis. This report builds on
the 2016 Community Greenhouse Gas Emission and technical emissions reductions
quantification work provided by City consultants.
Greenhouse Gas Emissions Inventory
A key first step in developing an approach to decarbonization is to understand the sources,
quantities, and trends in climate pollution that occur as the result of human activity in San Luis
Obispo. Methods and findings are provided in detail in the 2016 Community Greenhouse Gas
Emissions Inventory Report; Table 1.1 summarizes the findings. In brief, transportation, including
regional vehicle trips produce the most emissions with building energy use and solid waste also
contributing substantially to the overall inventory. All inventoried emissions sectors experienced
iii For example, the City of Portland, Oregon has made equity the primary organizing principle in its climate
work: https://beta.portland.gov/sites/default/files/2019-07/cap-equity-case-study-web29jul.pdf.
Additionally, the Carbon Neutral Cities Alliance has identified “equity” and “centering climate action on
people” as a “game changer”: https://carbonneutralcities.org/centering-people-and-equity/
iv As described in the UC Berkeley Study Advancing Equity in California Climate Policy, “In California, the
road to climate policy runs through—not over—climate equity.”
(http://laborcenter.berkeley.edu/pdf/2016/Advancing-Equity.pdf)
v The population estimate is derived from the 2010 Decennial US Census.
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decreases from the baseline inventory year of 2005 to the check-in inventory year of 2016, with
a total overall decrease of approximately 12 percent.vi
Table 1.1. San Luis Obispo Community Greenhouse Gas Emissions (MTCO2e, 2005-2016)
Sector 2005 2016 Percent Change
Transportation 225,390 212,980 -6%
Nonresidential Energy 58,050 44,270 -24%
Residential Energy 55,450 39,410 -29%
Solid Waste 47,740 42,630 -11%
Total 386,630 339,290 -12%
Greenhouse Gas Reduction Technical Analysis
Climate Action Plans typically identify and quantify the estimated emissions reductions from
hundreds of actions to be completed prior to the target year (in this case, 2035, or 15 years).
When taken together, these quantified actions illustrate the community’s ability to achieve the
community’s emission reduction target. Based on City staff’s previous work experience
implementing climate action plans in other communities, discussions with other similar
communities throughout the US, and review of dozens of existing climate action plans, this
approach has been challenging because the volume of actions are hard to track, are typically
incremental in nature, and can become obsolete due to how rapidly energy and transportation
technologies, markets, and regulations are evolving. For this reason, staff is recommending an
approach that establishes sector specific targets and identifies foundational research, capacity
building, and implementation actions to begin progress toward those targets.
The proposed sector specific targets were informed by a variety of inputs, including state law
related to renewable energy, energy efficiency, and landfilled organic waste; mode split targets
identified in the City’s General Plan; and previous direction from Council. In addition, the City
worked with the consulting firm Raimi + Associates to quantify a full range of potential actions to
illustrate what one path to deep carbon reductions might be. Staff has used Raimi + Associates’
initial draft work as guideposts for targets described in Section 1.3.
vi As noted in the 2016 Community Greenhouse Gas Emissions Inventory, g reenhouse gas emissions are
not measured directly. They are modeled and estimated by multiplying data about some activity (e.g., the
amount of electricity consumed, the number of miles travelled in fossil fuel powered vehicles, the tons of
solid waste sent to the landfill, etc.) by the greenhouse gas emission content of a typical unit of that activity
(e.g., the average greenhouse gas emissions content per therm of combusted natural gas). This inventory
accounts for three common greenhouse gasses: carbon dioxide (CO2), methane (CH4), and nitrous oxide
(N20). Since methane and nitrous oxide are substantially more potent greenhouse gases than carbon
dioxide (86 and 265 times more potent, respectively), the emissions modeled from their release into the
atmosphere are multiplied by their respective potential to warm the atmosphere relative to CO 2. The
common reporting unit for greenhouse gas emissions is “Metric Tons of Carbon Dioxide Equivalence”, or
MTCO2e.
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State of California Technical Reports
State legislation (AB 32 and SB 32) focused on reducing GHG emissions provides authority to
the California Air Resources Board to develop the strategy for achieving the state’s targets via
the Climate Change Scoping Plan (Scoping Plan). The Scoping Plan identifies the need for local
governments to reduce their emissions accordingly and provides an approach to achieve the 2030
targets while stressing the importance of those targets putting the state on a trajectory to the goal
of reducing emissions 80 percent under 1990 levels by 2050.
Faced with the incredibly challenging, but essential, task of achieving these deep reductions in
greenhouse gas emissions, the State of California has commissioned numerous studies outlining
potential paths. For example, the California Energy Commission (CEC) released the report Deep
Decarbonization in a High Renewables Future (2018) to describe the most cost-effective
approach to reaching the state’s 2030 and 2050 targets. Consistent with other reports studying
approaches to achieving deep GHG reduction targets, the CEC report provides four categories
for community decarbonization: 1) energy efficiency and energy conservation, 2) low-carbon
fuels, 3) electrification of technology that currently runs on fossil fuels, and 4) a reduction in non-
combustion GHGs (e.g., methane generated from decomposing solid waste). Staff has used this
organizational framework as a foundation and has amended it based on additional research to
include six “pillars” of decarbonization.
1.3 Decarbonization Approach
Based on the information described above, staff recommends an approach to carbon neutrality
that is organized into the following six pillars, each with a long-term goal and foundational actions
to be initiated or completed by 2023:
Pillar 1: Lead by Example – Carbon neutral government operations by 2030
Pillar 2: Clean Energy Systems –100 percent carbon free electricity by 2020
Pillar 3: Green Buildings – No net new emissions from new buildings’ onsite energy use by
2020; 50 percent reduction in existing building onsite emissions by 2030
Pillar 4: Connected Community – Achieve General Plan mode split objective by 2030; 40
percent of vehicle miles travelled by electric vehicles by 2030
Pillar 5: Circular Economy – 75 percent diversion of landfilled organic waste by 2025; 90
percent by 2035
Pillar 6: Natural Solutions – Increase carbon sequestration on the San Luis Obispo Greenbelt
and Urban Forest through compost application-based carbon farming activities and tree
planting; ongoing through 2035
Taken together, these six pillar goals could reduce community greenhouse gas emissions by
approximately 73 percent below annual baseline emissions by 2035. Figure 1.1 provides an
illustration of the contribution of the reductions by pillar.
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Figure 1.1. Greenhouse Gas Emissions Reductions by Decarbonization Pillar
(Annual MTCO2e in 2035)
Note: The Clean Energy Systems pillar action (launch Monterey Bay Community Power service) is expected to be
significantly underway at the adoption of the Climate Action Plan, and therefore is included in the GHG inventory
forecast. For this reason, it is illustrated in Figure 1.1 as emissions avoided in the forecast.
Note: The greenhouse gas emissions reductions figures in this section represent provisional estimates based on
projected future emissions and full achievement of the proposed pillar goals. Should Council direct staff to pursue the
proposed targets and foundational actions, staff would refine the reductions estimates with additional data and detail.
The figures are rounded to the nearest thousand to illustrate the provisional nature of the es timates.
At full implementation, it is expected that this approach would leave approximately 104,160
MTCO2e in annual emissions. To continue the learning process and to better understand how to
address the remaining emissions, City staff recommends that Council makes a firm commitment
to update and adopt a new Climate Action Plan on an “every other” Financial Plan cycle. This
allows for certainty in the update schedule, ensures that the carbon neutrality work is directly tied
to the City’s financial decision making and prioritization process, and allows for constant
integration of learning and best practices into the City’s climate action program . The proposed
update schedule is provided as Figure 1.2.
Figure 1.2. Proposed Climate Action Plan Update Schedule
.
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2. Pillars of Carbon Neutrality & Foundational Actions
This section provides an overview of each pillar, describes how the City has taken a leadership
role in each pillar, presents the proposed foundational measures and actions in each pillar, and
concludes with initial ideas for community partners to implement so they can play their role in
achieving carbon neutrality.
2.1 Lead by Example
The operational emissions that occur as the result of
running the City organization are a small
representation of community greenhouse gas
emissions. Like many organizations, the City uses
electricity and natural gas, fleet vehicles and
commuting employees use fossil fueled vehicles,
and solid waste is generated. In addition, the City
runs energy intensive facilities such as the Water
Treatment Plan and the Water Resource Recovery
Facility. Continuing, accelerating, and expanding the
City’s traditional approach to reducing emissions
and organizational resilience will simultaneously reduce greenhouse gas emissions and serve as
an example to residents and businesses in the community.
The City has already completed dozens of high impact emissions reductions efforts including
installing rooftop solar on several buildings, installing public electric vehicle charging structures,
and purchasing plug-in hybrid fleet vehicles. Many more initiatives are on the horizon with
installation of additional solar energy systems and energy efficiency retrofits slated to begin in
2020. This pillar seeks direction from Council to pursue an operational carbon neutrality target
and to return with an operational action proposal to achieve that target by December 2020.
City Leadership
The City is already a municipal leader in sustainability initiatives and is currently working on, or is
planning to work on, the following projects:
• Certification of City Hall as a “Green Business” under the San Luis Obispo Green Business
Network.
• Lighting energy efficiency projects at the City’s parking garages
• Electric vehicle chargers for fleet vehicles at the Palm Street Garage
• Electric vehicle chargers at City Hall
• Electric vehicle “Fast Chargers” at the Calle Joaquin Park and Ride Lot
• Major facility maintenance, specifically regarding hydration stations and the City pool’s
thermal cover
• Developing a Purchase Power Agreement (PPA) solar project
• Implementing the Water Treatment Plant Energy Efficiency project
• Developing a transportation electrification strategic plan
• Developing an urban forest master plan
Lead by Example Goal:
Carbon Neutral Government
Operations by 2030; Municipal
Action Plan by December 2020
Total Emissions Reductions in 2035:
7,500 MTCO2e
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Proposed Actions
The City has a strong history of sustainability initiatives in its government operations and is
currently undertaking numerous actions. For the sake of simplicity, the actions presented in the
Climate Action Plan will be primarily focused on establishing a municipal operations carbon
neutrality target for 2030 and developing a proposal for achieving that target by December 2020.
Table 2.1. Proposed “Lead by Example” Foundational Actions (2020-2023)
Measure Foundational Actions
Lead by Example 1 –
Municipal Carbon
Neutrality Plan
Leadership 1.1 – Present municipal carbon neutrality plan to City
Council by December 2020
Leadership 1.2 – Commit to no new fossil fuels in municipal
buildings
Leadership 1.3 - Develop and implement campus wide energy
strategic plan by 2022.
Lead by Example 2 –
City Organization &
Decision Making
Leadership 2.1 – Integrate climate considerations into City decision
making processes.
Lead by Example 3 –
Green Local Economy
Leadership 3.1 – Include carbon neutrality considerations and a
focus on developing the green local economy in the updated
Economic Development Strategic Plan
Leadership 3.2 – Research methods to support local contractors
and labor
Ideas for Partners
The City encourages local and regional partner organizations to also show leadership.
Opportunities include:
• Provide a permanent home for the SLO Green Business Network.
• Provide a permanent home for the SLO Green Challenge.
• Co-lead biennial GHG inventory updates.
• Link the City’s TRIP program to iRideshare.
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2.2 Clean Energy Systems
Affordable, accessible, abundant, and clean energy
systems are the foundation of a low carbon
economy that thrives in a changing climate. Rapid
transitions to carbon neutral electricity that supports
local economic development is possible through
community choice energy and partnerships with the
city’s energy utility providers.
The Clean Energy Systems pillar focuses on grid-
based energy sources (electricity and natural gas) in the community. The goal for this pillar is
carbon free electricity by 2020, with additional efforts to understand natural gas decarbonization
technologies, support affordable and equitable access to clean energy, and coordinate utility
investments in electrical and natural gas grid reliability.
Clean electricity is the foundation of a carbon neutral community. By focusing on high impact
programs that rapidly transition the carbon content of the energy system while continually working
to ensure affordability, equitable access, and system resilience, this pillar allows for a transition
away from fossil fuels without compromise in convenience, quality of life, or local economic
development.
Rapid transition is possible because the actions in this pillar address structural issues and provide
carbon free electricity as a default product for residents and businesses. At the same time,
personal choice is maintained by allowing customers to opt-out.
As California continues its transition to a carbon free electrical grid by 2045 (SB 100), and as the
community benefits from participation in Monterey Bay Community Power, electricity in the
community will have a very low greenhouse gas emissions impact that will continue to decrease
over the next decade. Abundant and affordable carbon free electricity serves as the foundation to
the City’s climate action efforts and allows for the high quality of life experienced today without
the climate impact. Grid-based electricity must be reliable. As illustrated by recent Public Safety
Power Shutoffs, a grid based on long range transmission must continue to be hardened in a
changing climate and strategic investments must be made to ensure grid capacity.
This pillar also accounts for the likelihood that most, if not all, of the City’s existing natural gas
distribution grid will remain into the foreseeable future and that it is important to study and
significantly reduce leakage that occurs in the local natural gas system distribution system. The
accounting of greenhouse gas emissions associated with the combustion of natural gas
traditionally only calculates the emissions from the volume of natural gas that is combusted, which
converts the gas to carbon dioxide, water, and trace amounts of methane. However, a more
advanced understanding of natural gas leakage rates, the chemical composition of natural gas
primarily being methane, and recent findings related to methane’s dramatic global warming
potential has underscored the importance of reducing natural gas consumption and studying and
reducing local distribution grid leakage rates.
Equity, Quality of Life, and Economic Development Opportunities
Cost of living continues to be a challenge in the community and region. With new renewable
energy projects proposing prices that are comparable with fossil fuel resources, a carbon neutral
Clean Energy Systems Goal:
100 percent carbon free electricity
by 2020
Total Emissions Reductions in 2035:
39,000 MTCO2e
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and increasingly renewable electricity supply will provide continued costs savings on the electricity
generation component of local electricity bills. System wide, the transition of energy procurement
to a value-driven public agency provides local accountability, accelerated rates of clean energy,
and the ability to retain the money spent on energy in the region through energy programs.
Although large scale renewable energy generation is limited in the community due to land costs
and other constraints, regional opportunities including additional solar, battery storage, and
offshore wind facilities exist. Through the actions in this pillar, the City could use its advocacy
capacity to help design regional energy projects that support local labor and head of household
jobs and energy programs that maximize local economic development benefits.
City Leadership
The City will exhibit leadership in practice by opting-up to Monterey Bay Community Power’s 100
percent renewable electricity product and will continue to play a regional leadership role in
advocating for energy investments, energy programs, and MBCP operational practices that
prioritize equity, local economic development, and head of household jobs.
Proposed Actions
Clean Energy Systems focuses on the grid-based energy sources (electricity and natural gas) in
the community. The goal for this pillar is carbon free electricity by 2020, with additional efforts to
understand natural gas decarbonization technologies and investments in the electrical and natural
gas grid reliability. Table 2.2 provides the proposed Clean Energy Systems foundational actions.
Table 2.2. Proposed “Clean Energy Systems” Foundational Actions (2020-2023)
Measure Foundational Actions
Clean Energy Systems 1 –
Monterey Bay Community
Power
Energy 1.1 - Launch Monterey Bay Community Power and
achieve a 98 percent participation rate; advocate for equity and
maximum local benefit
Clean Energy Systems 2 –
Local Grid Reliability and
Energy Storage
Energy 2.1 - Work with MBCP & PG&E to develop a regional
grid reliability and resilience strategy
Clean Energy Systems 3 –
Natural Gas Strategy
Energy 3.1 - Partner with SoCal Gas to research options for
reducing greenhouse emissions associated with the existing
natural gas grid.
Ideas for Partners
The City encourages local and regional partner organizations to also show leadership.
Opportunities include:
• "Opt-up" from MBCP’s 100% carbon free base product to its 100% renewable electricity
product.
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2.3 Green Buildings
Advances in on-site solar energy systems, electrical
appliances, and grid-based energy provide an
opportunity for all-electric buildings to maintain all the
conveniences and comforts of standard buildings
without the climate pollution caused through the use of
fossil fuels. Rapid transitions to low carbon buildings is
possible by identifying the largest energy users and
working to provide cash positive financing mechanisms
while also working with homeowners and building
owners to subsidize and support onsite solar, energy
storage, and transitioning high energy use appliances
(e.g., water heating and space conditioning) to high
efficiency electric alternatives.
The Green Buildings pillar focuses on emissions from energy (electricity and natural gas) used in
buildings, facilities, and outdoor lighting in the community. The goal for this pillar is to add no new
net emissions from new buildings starting in 2020 and reducing emissions from the remaining
building stock by 50 percent (after accounting for savings from carbon free electricity) by 2030.
With clean electricity as the foundation of a carbon neutral community, and with rapid advances
and cost reductions in onsite solar generation, onsite energy storage, and electric appliances, the
potential exists to equitably and affordably transition to fossil fuel free buildings.
This pillar focuses on high impact programs that produce carbon neutral new buildings and
leverages existing programs, funding sources for income qualified households, and financing
mechanisms to assist building owners with retrofitting the community’s largest natural gas users
to retrofit to electric appliances for water heating and space conditioning.
Rapid transitions to low-carbon new buildings (from onsite energy use) is possible via the City’s
Clean Energy Choice program and the 2019 California Energy Code (and standard triennial
updates to both). Existing buildings will be a substantially more challenging issue as every building
is unique and many existing buildings may require costly electrical system upgrades to transition
to lower carbon buildings.
The emissions from electricity are primarily reduced by joining Monterey Bay Community Power,
as described in “Clean Energy Systems”, above. Natural gas consumption occurs in buildings and
facilities primarily for water heating, space heating, cooking, clothes drying, and decorative space
heating (e.g., gas fireplaces). While some natural gas end uses may always require fossil fuels to
operate (e.g., industrial processes for manufacturing), all of the common residential and
commercial natural gas end uses have high quality, high efficiency, and typically cost-effective
alternatives. As buildings become more efficient and/or as building owners choose to transition
from fossil fueled to electric appliances, the emissions associated with the energy use transition
from high emissions fossil fuels to carbon neutral electricity.
Equity, Quality of Life, and Economic Development Opportunities
As described below, although the generation costs associated with electricity are projected to stay
flat or decrease as the result of low cost new renewable energy facilities, transmission costs are
Green Building Goal: No net
new building emissions from
onsite energy use by 2020; 50
percent reduction in existing
building emissions (after
accounting for MBCP) by 2030
Total Emissions Reductions in
2035: 32,000 MTCO2e
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likely to fluctuate substantially as climate change exposes the statewide grid to ever increasing
natural hazards. As the state moves towards decarbonization and the state’s natural gas system
ages, natural gas utility costs are also expected to increase and fluctuate. A focus on supporting
low income households in installing rooftop solar and pairing that with high efficiency electric
appliances for space heating and water heating allows enhanced comfort and insulation from
fluctuating electricity and natural gas grid costs.
A rapid mobilization in the solar installations, energy efficiency installations, and appliance
switching is a “win-win” in that there are typical lifetime savings associated with the work for the
building owner while also creating a substantial need for skilled labor. Additionally, transitioning
existing buildings at speed and scale will require technological innovations. By partnering with
organizations that support entrepreneurs, local business can pair their innovation and ingenuity
with emerging needs, creating additional head of household jobs and local economic stimulus.
City Leadership
The City has already begun strategically retrofitting existing buildings to electric appliances. One
example is the planned retirement of the natural gas co-generation system at the SLO Swim
Center and replacement with onsite solar generation to replace the lost generation capacity of the
existing system. As described in the “Lead by Action” section, above, the City will also develop a
plan to achieve carbon neutral operations, including in building and energy use, by 2030.
The City will exhibit regional leadership as an advocate by continuing to influence Monterey Bay
Community Power energy program development and implementation and partnering with existing
entities to maximize local resources for building retrofits.
Proposed Actions
Green Buildings focuses on energy used in buildings, facilities, and outdoor lighting (electricity
and natural gas) in the community. The goals for this pillar are no net new building emissions from
onsite energy use by 2020 and 50 percent reduction in existing building emissions (after
accounting for MBCP) by 2030. Table 2.3 provides the proposed Green Buildings foundational
actions.
Table 2.3. Proposed “Green Buildings” Foundational Actions (2020-2023)
Measures Foundational Actions
Green Buildings 1 –
Carbon Neutral New
Buildings
Buildings 1.1 – Adopt and implement local amendments to the
2019 California Energy Code incentivizing all electric development
(Clean Energy Choice Program) and review opportunities for
improvement in the 2022 code cycle.
Green Buildings 2 –
Energy Retrofitting
Buildings 2.1 – Conduct comprehensive retrofit program study and
develop a strategic and equity focused building retrofit program.
Buildings 2.2 Adopt building energy score program or
benchmarking ordinance by 2021 and begin implementing retrofit
program.
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Ideas for Partners
• Participate in retrofit program study to help with market penetration and to find ways to
leverage the City’s resources to increase existing program participation.
• Explore innovative market-based solutions such as Metered Energy Efficiency
Transactions.
• Support entrepreneurs focused on innovation in energy efficiency, energy monitoring,
fuel conversion, electric vehicle charging, and other related fields.
• Support training and developing the work force necessary to implement a retrofit
program at scale.
• Develop a building retrofit, solar installation, and fuel switching program for residential
customers.
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2.4 Connected Community
An increase in active transportation investments
coordinated with more housing production, enhanced
transit, and micro-mobility innovations can significantly
reduce vehicle miles travelled. For the many local and
regional households that will still depend on a vehicle
for transportation, electric vehicles coupled with carbon
neutral electricity, can provide a low emissions
alternative.
Transportation is the single largest source of
greenhouse gas emissions in the City of San Luis
Obispo. Transportation emissions primarily occur as the result of single occupancy fossil fueled
vehicles. The goal for this pillar is to achieve the General Plan Mode Split Objective by 2030 and
have 40 percent of the remaining automotive vehicle miles travelled occur through electric
vehicles.vii
This pillar focuses on advanced coordination between related fields of transit, active
transportation, parking, and housing development as well as on transformational operational
changes that will allow for more active transportation investments to be made at a more rapid rate
and at a lower per unit cost.
Rapid transitions to achieve the Circulation Element of the General Plan’s mode share target five
years early will require increased density and housing production, innovative parking
management approaches, further commitments to transit, and a process to allow for rapid
construction of active transportation infrastructure. In all cases, equity and accessibility must be
a top priority to ensure residents can conveniently and affordably move about the City without use
of a fossil fueled vehicle.
It should be noted that regional commute trips are especially difficult as the activity of commuting
from or to outside of the City requires the crossing of multiple jurisdictional boundaries and can
occur due to a lack of affordable housing options in the city. The City will focus on internal trips
first, with secondary high priority focus supporting reducing emissions from regional trips through
addressing the City’s job/housing imbalance, housing affordability, and identifying subsidies for
low- and moderate-income electric vehicle purchases.
Equity, Quality of Life, and Economic Development Opportunities
Cities and regions built for cars lead to long commute times, which are expensive, isolating,
polluting, and economically impactful. This pillar looks to provide affordable, safe, and convenient
access to moving through the community so that income is not a limiting factor in mobility.
Additionally, for households that must or choose to live somewhere that requires a personal
vehicle, electric vehicles have low operational costs and can lead to substantial total cost of
ownership savings relative to a fossil fuel vehicle.
vii The General Plan set the following mode split objective for city resident trips: 50% of trips occur via motor
vehicles, 12% of trips occur via transit, 20% of trips occur via bicycles, and 18% of trips occur via walking,
carpools and other forms.
Connected Community Goal:
Achieve General Plan Mode
Split Objective by 2030; 40
percent of VMT by electric
vehicles by 2030
Total Emissions Reductions in
2035: 78,000 MTCO2e
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City Leadership
The City will play a major leadership role in this effort through the construction and maintenance
of active transportation infrastructure, prioritization of streets and public rights of way for people
before automobiles, enhancement of transit services to include all electric buses and to increase
bus frequency, introduction of a micro-mobility “bike share” program, and further installation and
innovative management of electric vehicle charging infrastructure. The City will also lead through
continue purchasing of plug-in hybrid vehicles and electric bicycles for its fleet.
Proposed Actions
Connected Community focuses on vehicle miles travelled and the transition from fossil fuel to
electric vehicles. The goals for this pillar are to achieve the General Plan Mode Split Objective by
2030; and to have 40 percent of vehicle miles travelled occur by electric vehicles by 2030. Table
2.4 provides the proposed “Connected Community” foundational actions.
Table 2.4. Proposed “Connected Community” Foundational Actions (2020-2023)
Measures Foundational Actions
Connected Community
1 – Innovation and
Coordination
Connected 1.1 – Research and develop an approach to a “Mobility
as a Service” platform for people to easily use all modes of low
carbon mobility in the City.
Connected 1.2 – Repurpose the City’s Green Team to focus on
2017-19 Major City Goal collaboration and coordination in the short
term, and on achieving the mode split and EV targets in the long
term.
Connected 1.3 – Create new development review standards to
support Community Development Department decision making
processes for consistency with the carbon neutrality goal. .
Connected Community
2 – Active
Transportation
Connected 2.1 – Complete Active Transportation Plan and begin
implementation.
Connected 2.2 – Launch micro mobility program by 2021
Connected 2.3 – Develop a quick-build strategy to streamline
implementation of priority bicycle and pedestrian infrastructure
projects
Connected Community
3 – Parking
Connected 3.1 – Establish a policy and strategic approach to
leveraging existing and new parking garages for downtown
residential and visitor serving uses and to allow for further
implementation of the Downtown Concept Plan
Connected Community
4 – Transit
Connected 4.1 – Develop transit electrification strategic plan and
begin implementing in 2020
Connected 4.2 – Increase bus frequency through accelerated
implementation of the existing Short Range Transit Plan.
Connected 4.3 – Explore additional innovative transit options in the
2022 Short Range Transit Plan (e.g., on-demand deviated routes,
electric fleet expansion, micro transit, Bus Rapid Transit, Transit
Signal Priority, etc.).
Connected 4.4 – Assess feasibility of a “free to the user” transit
ridership program.
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Measures Foundational Actions
Connected Community
5 – Housing
Connected 5.1 - Develop Flexible Zoning Requirements for
Downtown.
Connected 5.2 - Update the Housing Element of the General Plan
and complete the Housing Major City Goal.
Connected Community
6 – Electric Vehicles
Connected 6.1 - Develop and begin implementing electric mobility
plan by 2021
Ideas for Partners
• Continue to operate and expand the SLO Car Free program
• Increase regional commute bus frequency and establish a direct commuter route to Los
Osos
• Develop regional commuter rail
• Integrate regional transit stop planning with micro-mobility programs
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2.5 Circular Economy
A “Circular Economy” is an economic system aimed at
eliminating waste and the continual use of resources.
Circular systems practice reuse, sharing, repair,
refurbishment, remanufacturing and recycling to create a
closed-loop system, minimizing the use of resource inputs
and the creation of waste, pollution and carbon
emissions.viii Whereas, a traditional extractive economy
can be thought of as a straight line from extraction to
consumption to disposal, a circular economy looks to use
'waste' as 'food' for other processes.
One example of this is organic (or “green” food and lawn and garden waste) waste that is currently
being sent to the landfill. Greenhouse gas emissions from organic material decomposing in Cold
Canyon Landfill account for over ten percent of the community’s greenhouse gas emissions. As
organic materials decompose in a landfill, they release methane, a powerful greenhouse gas.
Although Cold Canyon Landfill includes methane capture provisions, methane capture is a
challenge at landfills because of the natural movement of the Earth’s surface beneath the tarped
waste. As a result, methane tends to escape into the atmosphere over time. By first reducing the
amount of organics being disposed of through edible food rescue, and then focusing efforts on
diversion of landfilled organics to the regional anaerobic digester, the City will be providing access
to food for those in need while fully capturing methane and converting it to biogas via the regional
anerobic digestor. The outputs of the anerobic digester are clean electricity and high-quality
compost, both of which can be delivered back to the community. The foundational actions in this
pillar focus on the topical area the City has direct responsibility for: diversion of organic waste
from the landfill and achieving the methane reductions required by recent state law (SB 1383).
Emissions from organic waste are only a part of the overall greenhouse gas emissions that occur
as the result of consumption: single use plastics, product shipping, and emissions intensive diets
all create greenhouse gas emissions and are emerging topics in the field of climate action
planning. A move to a more circular economy, where goods and materials are created in the
region, consumed in the region, and reused in the region would grow local and regional wealth,
reduce emissions and would also indirectly resolve lifecycle emissions issues associated with
packaging, plastics, animal agriculture, and other harmful wastes. However, these topics sit
outside the traditional fields the City engages in and will require substantial time and resource
investments from community groups, businesses, and partners to achieve. The City will monitor
regional activities in this space and will consider including more detailed information on these
additional topics in the 2022 Climate Action Plan.
Equity, Quality of Life, and Economic Development Opportunities
Food waste and lawn and garden waste are the primary components of green waste. While many
families in the region go hungry, prepared food and produce are sent to the landfill. As a part of
the strategy to reduce landfilled organic matter, the City will develop and implement a program to
increase existing food rescue by 20 percent.
viii https://www.sciencedirect.com/science/article/pii/S0959652616321023?via%3Dihub
Circular Economy Goal:
75 percent reduction of
landfilled organic waste by
2025; 90 percent reduction by
2035
Total Emissions Reductions in
2035: 39,000 MTCO2e
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City Leadership
The City has exhibited leadership by working with IWMA to develop, deliver, and operate one of
the only anerobic digesters in the nation. This already achieved foundational action allows the
community’s green waste to create clean electricity and high-quality compost.
Proposed Actions
Circular Economy focuses on reducing landfilled waste, diverting organic waste, and establishing
staff capacity to achieve these outcomes. A focus on larger circular economic themes could be a
focus in the next Climate Action Plan. The goals for this pillar are 75 percent reduction in organic
waste by 2025; 90 percent reduction by 2035. Table 2.5 provides the proposed Circular Economy
foundational actions.
Table 2.5. Proposed “Circular Economy” Foundational Actions (2020-2023)
2020-2023
Circular Economy 1 –
Organic Waste Diversion
Circular Economy 1.1 - Adopt an ordinance requiring organic
waste subscription for all residential and commercial customers
by 2022
Circular Economy 1.2 – Develop and implement program to
increase edible food rescue by 20 percent
Circular Economy 1.3 - Develop and implement a waste stream
education program for HOA/Property Managers and the
commercial sector.
Circular Economy 2 –
Administrative Capacity
Circular Economy 2.1 - Update the Municipal Code solid waste
section and bin enclosure standards
Circular Economy 2.2 - Develop a Solid Waste section in the
Utilities Department
Ideas for Partners
• Prepare a consumption-based greenhouse gas inventory for the 2023 CAP.
• Phase out single-use plastics in food and beverage packaging, storage and distribution.
• Develop the first “Zero Waste” Farmer’s Market.
• Support new businesses that create zero waste options for public and private events.
• Collaborate with the City to develop effective education programs for HOAs and Property
Managers.
• Establish and maintain metrics surrounding regional edible food rescue.
• Make public a visual mapping of facilities that accept and distribute edible food to those
in need.
• Work with local businesses to recover prepared food.
• Increase efforts against disposal non-compliance and contamination at the curbside and
disposal facilities.
• Align regional messaging related to recycling, organics and zero waste.
• Increase materials recycled through sorting proficiencies.
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2.6 Natural Solutions
The City’s Greenbelt and Urban Forest provide valuable
benefits to the community including the conservation of
natural resources and maintenance of ecosystem
services, nearby access to passive recreation
opportunities, compact urban form, climate resilience
benefits, and storing carbon in the soil.
Peer-reviewed research indicates substantial carbon
sequestration can accrue in grassland systems with
compost applicationix and emerging research suggests
even more significant results may be achieved through
regenerative farming practices.
Emissions Sector Addressed
A Carbon Farm Plan will be developed for the City’s Johnson Ranch Open Space and Calle
Joaquin Agricultural Reserve (“City Farm”) in 2020 with pilot implementation of compost
application and monitoring conducted beginning in 2021. Following this initial period, it is
anticipated that an additional 100 acres per year could receive compost applications on lands
within the San Luis Obispo Greenbelt through partnerships with local farmers and ranchers. The
modeled cumulative effect of this action sequesters 33,000 MTCO2e over the fifteen-year time
horizon (2020-2035).
A group of local citizens have also approached the City with an ambitious tree planting campaign,
preliminarily being called 10 Tall: An Initiative to Plant 10,000 Trees in San Luis Obispo by 2035.
While some of these trees can be planted in existing vacant tree wells and City parks, the vast
majority would need to be low-cost, one gallon starts of native trees to be planted in City open
space properties and other natural or rangeland areas. An ambitious tree planting program of
this size would need to rely on substantial partnerships and resources. The modeled cumulative
effect of this action sequesters 24,000 MTCO2e over the fifteen-year time horizon (2020-2035).
Several key unknowns exist including a standard protocol for accounting for emissions already
sequestered or emitted from the City’s urban forest or open spaces, the effectiveness of
sequestration practices in the climatic and soil conditions present in and around the city, and
protocol for accounting for emissions savings that occur outside of city limits. In future Climate
Action Plan updates, the City could choose to include emissions sectors for natural systems in
the greenhouse gas emissions inventory and account for existing carbon stocks through land
conservation and negative emissions associated with carbon farming and tree planting.
Equity, Quality of Life, and Economic Development Opportunities
The City’s Greenbelt Protection Program is typically identified by residents as a top priority. This
system of protected natural resources and conserved landscapes is central to maintaining the
City’s identity and unique sense of place. Over 50 miles of trails are available to all and provide
ix Silver, Whendee, Sintana Vergara, Allegra Mayer. (University of California, Berkeley). 2018. Carbon
Sequestration and Greenhouse Gas Mitigation Potential of Composting and Soil Amendments on
California’s Rangelands. California’s Fourth Climate Change Assessment, California Natural Resources
Agency. Publication number: CCCA4-CNRA2018-002.
Natural Solutions Goal:
Increase carbon sequestration
on the San Luis Obispo
Greenbelt and Urban Forest
through compost application-
based carbon farming activities
and tree planting; ongoing
through 2035
Potential Total Emissions
Reductions in 2035:
7,000 MTCO2e
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access to no-cost passive recreation. Urban forests, green space, and open space have well
documented mental health benefits and property value benefits. In addition to carbon
sequestration, the City’s Greenbelt and Urban Forest provide tremendous climate resilience
benefits including shading and cooling, stormwater management and watershed protection, and
buffering from catastrophic flooding and wildfires. The operation and maintenance of these
programs supports jobs, enhances property values, and results in economic multiplier effects
across numerous sectors. Carbon farming activities also support local farmers and ranchers and
the agricultural economy.
City Leadership
The City has been participating in national and international carbon sequestration working groups
through the Urban Sustainability Directors’ Network (USDN) and the Carbon Neutral Cities
Alliance (CNCA). The City looks to be at the forefront of research to better understand how to
manage healthy natural resources in a changing climate while also removing climate pollution
from the atmosphere and storing it in the soil. The City’s next leadership steps are to participate
in a forthcoming USDN Innovation Fund grant in partnership with numerous other leading cities.
Proposed Actions
Natural Solutions focuses on supporting research and pilot projects, with eventual goals of scaling
efforts, for regenerative agriculture practices, compost application on rangeland, and a substantial
tree planting campaign. Table 2.6 provides the proposed Natural Solutions foundational actions.
Table 2.6. Proposed “Natural Solutions” Foundational Actions (2020-2023)
2020-2023
Natural Solutions 1 – Carbon Farming
Natural Solutions 1.1 - Conduct Carbon Farming
Study and Pilot Project at Johnson Ranch Open
Space and City Farm beginning in 2020 with
monitoring through 2023. If determined feasible and
cost effective, apply compost to first annual 100 acres
by 2023
Natural Solutions 2 – Tree Planting
Natural Solutions 2.1 - Prepare the City’s first Urban
Forest Master Plan that updates the existing tree
inventory, identifies future tree planting opportunities
and a climate-ready tree palette, as well as ongoing
operations and maintenance needs
Natural Solutions 2.2 - Identify and participate in
partnership opportunities by 2021 necessary to plant
and maintain 10,000 new trees by 2035
Ideas for Partners
• Provide technical assistance, research, and ongoing citizen science monitoring in the
Carbon Farm planning and implementation process
• Develop a trained volunteer network and structure to plant and maintain 10,000 trees
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Department Name: City Administration
Cost Center: 1001
For Agenda of: December 3, 2019
Placement: Business
Estimated Time: 60 minutes
FROM: Greg Hermann, Deputy City Manager
Prepared By: Ryan Betz, Assistant to the City Manager
SUBJECT: RESIDENT FOCUS GROUPS AND SURVEY RESULTS REGARDING
FUNDING PRIORITIES AND POTENTIAL LOCAL REVENUE OPTIONS
RECOMMENDATION
1. Receive a report on the results of two resident focus groups, a statistically relevant survey of
residents and continued public engagement and outreach; and
2. Proceed with further public engagement on funding priorities for the City, including
renewing and amending the Local Revenue Measure (LRM) with ongoing community
oversight (Revenue Enhancement Oversight Commission); and
3. Provide an update to the Revenue Enhancement Oversight Commission and discuss potential
roles to support and participate in public engagement and outreach efforts.
REPORT-IN-BRIEF
On February 5, 2019, the Council directed staff to conduct further public engagement efforts
regarding the Funding the Future initiative, including resident focus groups and a statistically
relevant survey of registered voters in the city (survey), and to return to the Council with the
results for consideration. This effort was originally conceived as a comprehensive review of
essential infrastructure projects identified in various adopted plans, including the 1) City’s
General Plan, 2) Bicycle Transportation Plan, 3) Downtown Concept Plan and 4) Mission Plaza
Concept Plan that will help to maintain the City’s character and quality of life for future
generations. The Council appointed an ad hoc subcommittee (subcommittee) of Vice-Mayor
Pease and Councilmember Stewart. The subcommittee explored a variety of issues related to the
feedback they had heard from the public about City services, maintenance and upgrades to
infrastructure (road improvements & safety upgrades, bridges, sidewalks, etc.) and provided
guidance on the questions for the focus groups and survey. A critical element of this effort
included evaluating the potential community interest of renewing or amending the existing, voter
approved LRM (Measure G).
An independent research firm conducted two registered voter focus groups in June 2019 and a
statistically relevant survey in September 2019. The focus groups included 18 city residents.
Staff are grateful for the time that participants took to respond, as their community perspectives
provided helpful insight on the importance of services, maintenance and infrastructure upgrades.
This insight helped draft the statistically relevant survey questions and specific areas of priority.
The survey had 442 individual responses from registered voters in the city, with a +/- 4.9%
margin of error. The results of the focus groups and survey show a majority of participants
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recognize the importance of services and maintaining and upgrading infrastructure. They also
recognize that the City needs a source of reliable, locally controlled funds to provide that level of
service, and there was community interest in renewing and amending the LRM.
Based on the results from the focus groups and the survey, the subcommittee is recommending
continuing with public outreach and education on the City’s existing and future needs for
services, maintenance and infrastructure. Continued public engagement and outreach will help
gather additional feedback from the community and together with the results from the focus
groups and survey will better inform the Council about the community’s interest in considering
these issues on the November 2020 ballot.
DISCUSSION
Background
A task of the work plan for the Fiscal Sustainability and Responsibility Major City Goal in the
2017-19 Financial Plan was to explore infrastructure financing options and present those to the
Council for consideration and implementation. On April 17, 2018, the Council received a report
which identified over 70 infrastructure projects anticipated over twenty years as identified in
various approved planning documents. These documents were adopted through extensive public
engagement, advisory body review and public hearings. The documents included the 1) City’s
General Plan, 2) Bicycle Transportation Plan, 3) Downtown Concept Plan and 4) Mission Plaza
Concept Plan and other documents that represent the community’s interest in maintaining the
City’s character and quality of life into the future.
On February 5, 2019, Council received an update on this effort and directed staff to conduct
further public engagement efforts regarding continued Funding the Future analysis and research
including resident focus groups and a statistically relevant community survey. Council also
directed staff to return to the Council with the results for consideration. Council appointed an ad
hoc subcommittee of Vice Mayor Pease and Councilmember Stewart to guide and assist with
these efforts. An additional item for consideration and direction by Council was to explore the
feasibility of renewing the existing LRM. The LRM was renewed for eight years by voters in
2014, at a ½ cent rate and will expire in 2023 if not renewed by voters. The LRM is critical in
providing the funding for a basic level of services and maintenance of existing infrastructure in
the City.
Focus Group Results
Staff retained an independent survey and research firm, FM3, through a Request for Proposal
(RFP) process to assist in these efforts. In consultation with the subcommittee, FM3 conducted
two focus groups on June 19, 2019. The participants were almost evenly split on gender and
generally reflected the demographic and geographic composition of the City’s electorate. The
objective was to examine the knowledge and perceptions about City-related services from voters
who live in San Luis Obispo. Specifically, the discussions were focused on the City’s need for
services, maintenance and infrastructure and the participants’ priority for the use of City funds. It
should be noted that focus groups are qualitative in nature and provide a valuable opportunity to
have an in-depth discussion on various issues facing the City and understand the reasons behind
opinions that are held. This work was then used to help inform the survey to determine the
preferences and opinions held by the broader population.
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The results of the focus groups showed several general, broad themes:
1) General View of the City
a) Overall, most had favorable opinions of living in the City.
b) Like many California cities, concerns about maintaining the City’s character and quality
of life into the future.
2) Perceived Additional Funding Needs and Support for a Proposed Measure
a) There is a general sense that the City has a need for additional funds.
b) A general-purpose measure that could fund City services as well as infrastructure projects
was principally supported in the groups.
c) Participants primarily focused on the need for additional, locally controlled revenue for
City services and some infrastructure projects.
d) Support for a 1-cent general purpose, simple majority sales tax was slightly lower than
support for a 1 ½-cent sales tax. This may be attributed to the 1-cent sales tax focusing on
infrastructure only while the 1 ½ cent sales tax includes services, maintenance and
infrastructure.
e) Most participants agreed that the City did need to ensure there was enough funding to
provide the services, maintenance and infrastructure they value and rely on.
3) Perceived Funding Priorities
a) Maintaining the City’s quality of life, character and the need for road improvements,
safety upgrades and cross-town connections were the leading reasons the participants
would consider additional, locally controlled funding.
The results from the focus groups provided helpful insight to the subcommittee on the
importance of services, maintenance and infrastructure. This insight helped draft the statistically
relevant survey and specific areas of priority.
Survey Results
The survey of registered voters took place between September 15 and 22, 2019, and included
442 individual responses with an overall margin of error of +/- 4.9%. For the survey, FM3 used
a dual-mode approach (telephone and online) to produce an all-inclusive, representative sample
of the registered voters in the City. Similar surveys have been conducted in the past and have
helped inform the Council on decisions to place measures on an upcoming ballot. The survey
built upon the feedback received in the focus groups and asked residents’ preferences on a
variety of topics including services, maintenance of existing infrastructure, replacement/upgrades
of infrastructure and overall spending priorities. The survey asked participants to respond to a
sample ballot measure that renewed the existing LRM at a 1 ½ cent rate that focused on
maintenance, essential services and infrastructure. The sample ballot measure language was
based upon the input from the focus groups. The following is a summary of the survey results:
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1) Need for Additional Funds for Services and Infrastructure
a) Almost six in ten survey respondents perceive the City needs additional funds to provide
the level of services and infrastructure residents need and want, though only about two in
ten indicate there is a great need.
b) A majority of survey respondents initially support a conceptual local ballot measure at 63
percent. This is an increase from a previous survey conducted in April 2018 which had an
initial support of 57 percent. The language in the 2018 survey focused solely on upgrades
to infrastructure. Based on the input from the focus groups regarding the importance of
services and maintenance, the 2019 survey was broadened to include City services,
maintenance and infrastructure.
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c) The survey asked respondents if they would support the potential ballot measure at a 1-
cent rate. The results show there is no statistical difference in support between an
extension of the current voter approved LRM at a 1½-cent rate or at a 1-cent rate. 63
percent of respondents would vote yes on an LRM at a 1 ½-cent rate while 60 percent of
respondents would vote yes on a 1-cent rate.
d) The more a survey respondent perceived a need for additional funds for City services, the
more one is likely to vote yes in support of a ballot measure. This suggests that additional
public education and outreach will help inform residents about the City’s needs for
additional services, maintenance and infrastructure.
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2) Voter Priorities
a) Voters continue to rate with greater importance maintaining (68 percent) rather than
improving (42 percent) essential City services. This is consistent with the 2018 survey,
when voters rated maintaining (64 percent) rather than improving (42 percent) essential
City services.
b) The same can be said of maintaining rather than improving City infrastructure, with 61
percent ranking maintaining City infrastructure as extremely/very important rather than
48 percent ranking improving City infrastructure.
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c) Voters rated requiring all funds used locally; protecting creeks from pollution; addressing
homelessness; and maintaining police, fire/emergency response as the most important
features of a possible measure.
Rating by Extremely/Very Important
Requiring all funds used locally 79%
Protecting creeks from pollution 73%
Addressing Homelessness 71%
Maintaining police, fire/emergency response 71%
Keeping public areas safe and clean 67%
Helping ensure children have safe places to play 67%
Preserving open space and natural areas 66%
Requiring all funds to benefit the community 66%
Protecting long-term fiscal stability 65%
Preparing for wildfires and other natural disasters 62%
Repairing streets and potholes 62%
Increasing affordable housing supplies 59%
Replacing fire stations that have been determined by structural
engineers to not meet current seismic earthquake standards 59%
Retaining and attracting local businesses 55%
Maintaining and improving parks 55%
Expanding open space and natural areas 54%
Public Engagement and Outreach
Additional public engagement and outreach is recommended to both inform the community of
the needs for the City and receive additional feedback on services, maintenance and
infrastructure. This effort will fall into the following overall approach:
Informing and consulting residents/stakeholders on the services, maintenance and infrastructure
needed to help maintain the City’s character and quality of life into the future.
Additional public engagement and outreach is intended to educate residents, businesses and other
community stakeholders about the need for maintaining/improving services and infrastructure,
assist in identifying priorities, and the funding options to support them. The information
collected from the community will help inform Council on the community’s receptivity of
potentially placing a measure on the November 2020 ballot. The strategy involves a multi-
channel communications outreach approach with community feedback opportunities. Examples
include presentations to community organizations, neighborhood groups, advisory bodies, City
staff, an online survey (Open City Hall) and facility tours/information sessions. Public
engagement and outreach will continue into the spring.
Council Ad Hoc Subcommittee
On February 5, 2019, Council formed a Council Ad Hoc Subcommittee (subcommittee)
comprising of Vice-Mayor Pease and Councilmember Stewart. The committee, with the support
of staff, have met bi-monthly since May 2019. The subcommittee observed the participants
during the focus groups’ discussions, reviewed the survey questions, and provided guidance on
the public engagement and outreach plan.
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Based on the research and input from the focus groups and survey, the subcommittee is
recommending to Council to continue public outreach and education on the City’s needs for
services, maintenance and infrastructure, including the potential to renew and amend the LRM
with ongoing community oversight. The subcommittee also recommends continuing the
established subcommittee with Vice Mayor Pease and Council Member Stewart and to request
the support and participation of the Revenue Enhancement Oversight Commission (REOC) to
help guide further public engagement and outreach efforts.
Existing Local Revenue Measure
The existing LRM was passed by 70 percent of voters in November 2014. The LRM was a
renewal of the City’s half-cent sales tax approved in 2006 that focused on the protection and
maintenance of essential services and facilities in the following priorities:
1. Open Space Preservation
2. Bicycle and Pedestrian Improvements
3. Traffic Congestion Relief/Safety Improvements
4. Public Safety
5. Neighborhood Street Paving
6. Code Enforcement
7. Flood Protection
8. Parks and Recreation/Senior Programs and Facilities.
9. Other Vital Services and Capital Projects
The funding is split with 70 percent supporting capital projects and 30 percent supporting
operations. The LRM has an eight-year sunset, scheduled to expire in spring of 2023. In 2014,
the Council established a citizen advisory body, REOC, to review the half-cent sales tax
revenues and expenditures, report on the City’s stewardship of this general purpose tax and
provide recommendations directly to the City Council regarding expenditures of these tax
revenues as an integral part of the budget process. As an advisory body, comprising of five
residents, the REOC provides important citizen oversight of local sales tax revenues and
expenditures and serves as a venue for citizen engagement on the highest priority for the use of
the funds.
Previous Council or Advisory Body Action
1. June 18, 2019 - Adoption of the 2019-21 Financial Plan and the Major City Goal: Fiscal
Sustainability and Responsibility
2. February 5, 2019 - Potential Next Steps Regarding the Funding the Future Initiative
3. April 17, 2018 - Future SLO Capital Improvement Program
4. January 16, 2018 - Council review of 10-Year Capital Improvement Plan and funding options
5. December 12, 2017 - Budget Foundation: Fiscal Health Response Plan
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Policy Context
The Major City Goals for the 2017-19 and 2019-21 Financial Plans include the Fiscal
Sustainability and Responsibility goal. Specifically, the 2019-21 goal states to ‘Continue to
implement the City’s Fiscal Responsibility Philosophy with a focus on efficiencies, strategic
economic development, unfunded liabilities, and infrastructure financing (Funding the Future).’
Specifically, the workplan directs staff to “Begin efforts for Funding the Future.” (Pg. 68).
In the 2017-19 Major City Goal workplan, it states, ‘develop a creative financing plan for
development of critical public safety facilities," and, "develop creative infrastructure financing
options (grants, land-based funding, local revenues) for Council consideration and implement as
directed." (Pg. 432).
Public Engagement
There were two public engagement efforts completed including two resident focus groups and a
statistically relevant survey. Both efforts involved registered voters within the City. Additional
public engagement efforts will use the City's Public Engagement Manual and follow an inform
and consult model (as previously described) whereby the public will have an opportunity to share
feedback on priorities and needs for the City.
ENVIRONMENTAL REVIEW
The review of the Funding the Future of SLO for potential funding options or public engagement
process is exempt from environmental review as a Statutory Exemption under Section 15262 of
the CEQA Guidelines, feasibility and planning studies. Each project listed as part of the 10 Year
CIP and Funding the Future of SLO will need future authorization and environmental review
prior to actual funding or construction.
FISCAL IMPACT
Budgeted: Yes Budget Year: 2018-19
Funding Identified: Yes
Fiscal Analysis:
Funding Sources Current FY Cost
Annualized
On-going Cost
Total Project
Cost
General Fund $99,000
State
Federal
Fees
Other:
Total $99,000
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As part of the adopted 2017-19 budget, funding for this work was appropriated. The funding has
been encumbered to a survey/research firm and communications consultant to complete the
research and continue community outreach and engagement efforts.
ALTERNATIVES
1. The Council may direct staff to not proceed with further public engagement on this
item. Staff does not recommend this approach based upon results from the focus groups and
survey.
2. Form a citizen task force to further public engagement efforts. A citizen task force could
be formed to continue public engagement and outreach efforts. The subcommittee
recommends requesting the REOC, a citizen advisory body with knowledge and oversight on
the use of the existing LRM, to help support and participate in this effort.
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Department Name: Administration
Cost Center:
For Agenda of: December 3, 2019
Placement: Public Hearing
Estimated Time: 60 minutes
FROM: Greg Hermann, Deputy City Manager
Prepared By: Charlene Rosales, Economic Development Manager
Georgina Bailey, Management Fellow
SUBJECT: CANNABIS BUSINESS PROGRAM AND REGULATION UPDATES
RECOMMENDATION
1. Receive an update on the City’s Cannabis Business Program; and
2. Adopt a resolution that updates the one-time application fee (Attachment A); and
3. Adopt a resolution that updates the merit criteria to be used in the evaluation of applications
for cannabis business operator permits and adopts a 70% of total available points minimum
threshold which applicants must score to be eligible for a contingent operator permit
(Attachment B); and
4. Introduce and adopt an ordinance amending Municipal Code Section 9.10 (Attachment D)
clarifying unsuccessful applicants’ ability to apply during separate application periods in the
same year.
REPORT-IN-BRIEF
The City of San Luis Obispo adopted regulations to implement a Cannabis Business Program
after the passage of Proposition 64 that were informed through public engagement, industry
outreach and Council direction. The initial regulations were adopted by the City Council on
November 27, 2018. After the adoption of the initial regulations, Council directed staff to return
with an update regarding the implementation of the Cannabis Business Program and potential
updates to the regulations in the next year.
This staff report intends to inform and recommend to the Council updates to the Cannabis
Business Program based on the experience over the last year. During that time, the City has
opened two rounds of cannabis business application periods;1) January 7-29, 2019, and 2) July
1-31, 2019. In parallel, staff worked to develop the administration and operational guidelines
necessary to fully implement the Cannabis Business Program. Staff has created a process to
comply with State mandates allowing operators licensed outside of the City to deliver into the
City, while enforcing compliance with the City’s Business License and Tax Ordinance. Staff has
conducted initial analysis on the application fees and is recommending a change to one-time
application fees paid by all applicants. In addition to other outreach and research, staff
researched Cottage Industry Programs (fee structures and regulations that would support a
cottage industry in a city or county). Staff found no established city programs throughout the
State of California and, as such, does not recommend the City of San Luis Obispo pilot a
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Cannabis Cottage Industry Program at this time.
Informed from two application scoring rounds and staff’s experience implementing Cannabis
Regulations, staff recommends adoption of an ordinance updating Municipal Code Section
9.10.070 to include an additional clarification that an unsuccessful applicant is allowed to apply
for cannabis operator permits during subsequent application periods in the same year.
Staff is also recommending minor updates and clarifications in the Cannabis Scoring Worksheet,
which will impact all types of cannabis applications, except storefront retail applications.
DISCUSSION
Background
Cannabis Business Program Update
Following the passage of Proposition 64 in 2016 with 57% Statewide voter approval, the
initiative to legalize cannabis in the state of California became law on November 9, 2016,
allowing for recreational cannabis sales as of January 1, 2018. Following the passage of the
City’s Cannabis Business Tax on November 6, 2018, by 80% of the City’s residents, on
November 27, 2018 the City Council approved the fee structure, application criteria and zoning
regulations to allow for cannabis businesses to operate in the City.
In order to choose the most qualified operators, the City Council established an application and
approval process for applicants wanting to operate cannabis businesses in the City. The City
received 12 applications from interested parties during the first application period from January
7-29, 2019 and issued five contingent operator permits on March 28, 2019. Three of the
contingent permits are for retail storefronts, one is for a delivery service and one is for a
microbusiness. Those businesses then began moving through the background investigation
process to receive final operator permits .
On September 5, 2019, the first two final operator permits were granted. One permit was
granted for a retail storefront business and the other operator permit was granted for a non-retail
storefront delivery business. On October 22, 2019, a second retail storefront business permit
was issued. The remaining contingent operator permit for a retail storefront business issued in
March did not receive final approval. As a result, the applicant with the fourth highest score
from the first application period was granted a contingent operator permit. The microbusiness
from the first application period was granted an operator permit the last week of November and
is now in the processes of being granted a land use permit.
During the second application window, July 1 to July 31, 2019, one operator applied for a retail
non-storefront delivery business permit. Because there were no other applicants, there was no
ability to set a 70% scoring threshold of the highest scoring applicant. As such, the applicant was
held to a 70% threshold of total available points, which was not met, and a contingent operator
permit was not granted.
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On November 13, 2019, two retail storefront applicants received the required conditional use
permits from the Planning Commission to complete their land use approvals process. Both
operators have applied for and are now in the process for a State license from the Bureau of
Cannabis Control. That process may take anywhere from two weeks to six months to issue,
depending on volume and completeness of applications. The applicants expect their businesses to
be open at the end of March and beginning of July respectively.
The regulations adopted on November 27, 2018, grant the City Manager the authority to adjust
application periods and to open new application periods on an as needed basis, in addition to the
annual application period of July 1 through July 31 of each calendar year. Following City
Manager direction, staff will open the next round of cannabis operator permit applications for all
business types, except Retail Storefront, from January 15, to February 15, 2020.
Administrative and Operation al Guidelines
The goal for implementation of the regulations for cannabis related businesses is to ensure
consumer access, realistic and equitable expectations of business owners, standardized
compliance measurements and enforcement procedures, legitimization of the industry and
support for business success while ensuring the continued safety of the public and pro tection of
quality of life. To this end, Section 9.10.250 of the City’s cannabis ordinance authorizes the City
Manager to determine any administrative regulations necessary to implement the requirements
and fulfill the purposes and policies of the City’s cannabis regulations. Throughout the
implementation of the program, several administrative and operational guidelines have been
developed to support the goals of the Cannabis Business Program and clarify processes outlined
in the Municipal Code. Those have included standards for security plans, background
investigation workflows and the development of other administrative process documents. These
guidelines and processes are updated as needed and are informed by other municipalities’ best
practices, internal multi-department staff teams and the direction of the City Manager.
Mobile Deliveries from Outside of the City
The State Bureau of Cannabis Control (BCC) has implemented rules that mandate cities to allow
delivery within their jurisdiction from licensed operators outside of the City, consistent with
Section 5416 (d) of the BCC’s cannabis regulations which states:
“(d) A delivery employee may deliver to any jurisdiction within the State of California
provided that such delivery is conducted in compliance with all delivery provisions of
this division.”
In spring 2019, the City began to develop a plan to both bring licensed delivery businesses into
compliance with City business license and tax provisions and to enforce City and State laws
against unlicensed and illegal businesses delivering in the City. Two rounds of “Notice to
Comply” letters were sent to out to City delivery operators in July and August 2019.
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The “Notice to Comply” letters included educational materials on City policies and regulations
regarding current cannabis delivery regulations and included instructions on becoming a
compliant delivery operator in the City. Cannabis delivery services can deliver in the City, even
if their business is not located within the City, provided they possess a valid California driver’s
license and satisfy the following conditions:
1. The cannabis delivery service has proof of a commercial cannabis business license from
another city or county;
2. The cannabis delivery service has proof of a license from the State of California; issued by
the Bureau of Cannabis Control (BCC).
The cannabis delivery service must then apply for and receive a valid business license and
cannabis tax certificate from the City of San Luis Obispo and remit applicable taxes to the City
for transactions that occur within the City.
To date, four businesses have come into compliance and the City continues to work on various
enforcement approaches for those operating outside of applicable regulations.
Application Fees
On November 11, 2018, City Council approved both application and operating license fees for
the Cannabis Business Program. These fees were based on estimated staff time and other costs
required to administer the adopted regulations and were developed by a consultant with specific
experience including work with other California cities in developing similar fees.
The one-time application fee for new cannabis businesses is $23,262 and includes costs
associated with the review of applications and subsequent background investigations. The fees
were based on assumptions for staff time and resources needed to recover the specific and
reasonable costs related to the review and evaluation of application and background information.
As was discussed during the adoption of the original fees, staff would track actual hours spent
against assumptions made to develop fees and updates would be recommended accordingly. In
addition, fees may also be updated to reflect process streamlining or other efficiencies gained
through experience implementing the regulations.
Staff has completed an analysis of original assumptions of staff hours compared to the actual
hours from the first application period until the present.
Staff found that time dedicated to the overall application process was significantly over the initial
assumptions. This, however, is not unusual as this was the City’s initial implementation of the
program and additional time was required to develop new procedures, create workflows and
processes and other policies and guidelines. Staff believes that the discrepancy between assumed
and actual hours will be reduced and will meet initial assumptions in subsequent application
periods as processes become more streamlined and staff have more experience working through
applications and background investigations. As such, no changes are recommended for the total
application fee at this time. Staff will continue tracking time and costs associated with the full
implementation of the Cannabis Business Program and return with recommended changes as
warranted.
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Staff does, however, recommend changes to the timing of payments of the application fee. Staff
recommends reducing the initial fee to $4,995 due at time of application. Currently, all
businesses other than retail are required to pay 33% of the total application fee, or $7,431, at the
time of application submittal. The balance of the fee is due and payable for the business to
receive a contingent operator permit. Retail applicants are required to pay the full application fee
at the time of submittal.
As previously stated, application fees consist of the costs associated with application review and
background investigations. Staff recommends that all future applicants pay an initial fee at the
time of application submittal associated with costs of reviewing the application and, if offered a
contingent operator permit, be required to pay the remaining balance which would cover costs
associated with the background investigation and permitting process. This change would result
in the following application fees in 2020:
Initial Application Fee: $4,955
Fee due when Contingent Operator Permit is Granted: $18,307
Total One Time Application Fees: $23,262
Staff also recommends that this approach to the application fee be consistent across all cannabis
business types for consistency and clarity. As such, the changes noted in Attachment A are
recommended to include retail businesses, as well as all other businesses.
No changes are currently recommended for annual operating license fees as the City needs to
complete one full year of operations, starting from the date the businesses open and fees are due,
to collect information on actual time spent and compare that to assumptions. Staff will bring that
information forward along any recommended changes as needed which may vary, as different
cannabis business types have different fees and planned opening dates.
Cottage Industry Regulations
City Council gave staff direction at the November 28, 2018 meeting to investigate an additional
set of lower fees to support cottage industry businesses. A cannabis cottage permit is defined by
the California Department of Food and Agriculture as an outdoor, indoor, or mixed lighting
cultivation site that can hold up to 25 mature plants for an outdoor permit, 500 sq. ft. of
cultivation for an indoor permit or up to 2,500 sq. ft. for a mixed light permit. Staff has
investigated and researched cottage permits and industries in other municipalities in the State of
California. Staff has not identified any cottage industry programs in other municipalities,
however, there are a limited number of cottage industry programs in some counties. Staff
researched cottage permits in relation to the City of San Luis Obispo’s comparable cities which
are: Davis, Monterey, Napa, Paso Robles, Santa Barbara, and Santa Cruz. Davis, Monterey,
Napa, Paso Robles, Santa Barbara, and Santa Cruz; none currently have cottage industry
programs, regulations, permits, or fees in their cannabis ordinances or regulations. In addition to
the City’s comparable cities, other surrounding municipalities with cannabis programs , such as
Grover Beach and Morro Bay, do not currently have cottage industry programs or fees. The City
of San Luis Obispo would be the first city in the county and potentially the first in the state to
pilot a cottage industry program and fee structure. Piloting a cottage industry in the City of San
Luis Obispo would require significant staff time and additional resources to develop a fee
structure, additional application, regulations and operations guide needed to support the success
of such a program.
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Staff recommends Council move forward with one year of Cannabis Business Program
implementation and then consider available resources to develop a cottage industry program in
the City.
Application Changes
Staff recommends Council adopt a resolution (Attachment B) to make minor updates and
clarifications to the merit criteria to be used in the evaluation of applications for cannabis
business operator permits. The recommended changes are identified and incorporated into the
updated Cannabis Scoring Worksheet (Attachment C). In addition to maintaining Council’s
initial direction and decision from November 28, 2018 staff is proposing minor updates and
clarifications to certain sections of the application criteria that are informed through feedback
from two application periods from the cannabis review panel, internal multi-department staff
teams, consultant recommendations and best practices from other municipalities.
The proposed changes will change the Cannabis Scoring Worksheet for all cannabis applications,
except Retail Storefront, and will apply to all following cannabis application periods. Staff
would recommend an additional, separate review of all Retail Storefront criteria in advance of
opening an application period for that business type which is not anticipated at this time.
In the Manufacturing, Distribution and Non-Storefront Retail Evaluation Criteria Worksheet
changes are recommended to the Community Benefit and Equity and Labor Merit Criteria as
summarized below and in Attachment C.
a. Community Benefit
i. Section 1.1B has been changed to remove the word “over” as it relates to 10-20 hours per
month of community services to make clear that the two points available will be given to
commitments in that range. Five points are available for commitment over 20 hours per
month.
ii. Section 1.3B has been changed to clarify what “a history of supporting local community
programs” means, which has been defined as “the past one year.”
iii. The maximum score for section Community Benefit B has been changed to 15 points to
correct a previous typographical error.
b. Equity and Labor
i. Section 2.4 has been eliminated as State laws surrounding “labor peace agreements” are
already triggered for businesses with 20 employees; meaning operational businesses will
already have this component of their business plan via state law and do not need to be
scored on merit.
ii. The elimination of Section 2.4 results in the maximum score for Equity and Labor
changing to 18 points. The total maximum points for Manufacturing, Distribution and
Non-Storefront Retail applications is now 83 points.
In the Cultivation Criteria Worksheet (Attachment C) the same changes are recommended to the
Community Benefit and Equity and Labor merit criteria. No additional changes are
recommended and the total maximum points for a Cultivation Application are now 113 points.
Packet Page 194
Item 12
Staff also recommends in the Merit Criteria Resolution (Attachment B), that a criteria be adopted
that requires all applicants to achieve a 70% scoring threshold from the total available points to
qualify for contingent operator permits. The clause would be included on the first page in
Attachment C, as rule 12, and will read:
For an applicant to qualify for a contingent operator permit, the applicant must score at or
above 70% of the of total available points on the application from an average of all
scorers.
The previous scoring threshold required applicants to score at least 70% of total points scored
from the highest scoring applicant within that business type, which assumes multiple applicants.
The amended language is recommended to avoid any ambiguity when only one application from
a business type is received during an application period, as was experienced in the last
application period. In addition, having a 70% threshold of total available points enhances
consistency across all application periods and does not rely on the strength of any particular
applicant pool to establish minimum thresholds.
Subsequent Applications by Unsuccessful Applicants
Currently the City’s Municipal Code could be interpreted to disallow an unsuccessful cannabis
applicant to re-apply for the same cannabis license type more than once in a one-year period.
Municipal Code Section 9.10.070 currently provides:
B. Application Submittal Timeframe. A person may only submit one application for a
commercial cannabis operator permit during the annual application period designated by
resolution of the City Council.
In the interest of economic development and equitable practices of the cannabis applications,
staff recommends Council adopts language for section 9.10.70 under Item A “Application” and
Item B “Application Submittal Timeframe” that clarifies that an applicant is not limited to
submitting an application only during the annual application period, but if any other application
period(s) are opened by the City Manager, the same applicant, previously not recommended for a
permit, may submit another application for a contingent operator permit (Attachment Ordinance
X Exhibit A Chapter 9.10).
Policy Analysis
The updates to the cannabis regulations are consistent with overall goals of cannabis regulations
in the Fiscal Health Response Plan, the City’s 2019-2021 Major City Goals and the applicable
sections of the Municipal Code. Cannabis regulations and fees are an important piece of the
Fiscal Health Response Plan and Fiscal Sustainability and Responsibility Major City Goal,
which seeks to bring in new revenue while sustaining economic development in the City, and the
updates to the fees and regulations support these goals. Likewise, the updates to the cannabis
regulations are consistent with Chapter 9.10 of the Municipal Code and Section 17.86.080 of the
Zoning Code, which outline that the provisions of each code are guided by principles to protect,
the health, safety, and welfare of the residents of the City. Furthermore, it is the general best
practice for the City to provide the most clear and concise regulations to benefit the community,
businesses, staff, and the City Council. Staff believes the recommended amendments will not
only provide more clarity to those applying for cannabis operator permits, but also potentially
bring more applicants with a different fee payment process and updated applications.
Packet Page 195
Item 12
Public Engagement
The current Ordinance and resolutions were considered and adopted City Council on May 15,
2018; October 16, 2018; and November 27, 2018. Since that time, staff have been in regular
communication with applicants, business operators and industry representatives, receiving
feedback on a wide range of issues related to the implementation of the Cannabis Business
Program. Staff has also met with applicants and operators to obtain input on the application and
permitting process in order to continuously improve the program.
CONCURRENCE
A Steering Committee of City staff members including Administration staff, City Attorney, the
Community Development Director, Finance Director, Fire Marshal, and Police Chief, was
convened to guide the process of developing updates and regulations for consideration by the
City Council.
ENVIRONMENTAL REVIEW
No updates staff are proposing for Cannabis Updates require a CEQA component and is exempt
from environmental review as a Statutory Exemption under Section 15262 of the CEQA
Guidelines, feasibility and planning studies.
FISCAL IMPACT
Fiscal Analysis:
Budgeted: Yes Budget Year: Ongoing
Funding Identified: Yes
Fiscal Analysis:
Funding Sources Current FY Cost
Annualized
On-going Cost
Total Project
Cost
General Fund
State
Federal
Fees
Other:
Total n/a n/a n/a
Packet Page 196
Item 12
In November 27, 2018, City Council was informed that tax revenues from cannabis businesses
were anticipated to generate up to $1,500,000 through full implementation of the program.
Cannabis business tax revenue estimates were included in the City’s Fiscal Health Response Plan
presented to Council on April 17, 2018. Due to various delays associated with the
implementation of the new Cannabis Business Program it is expected the revenue projections for
2019-2020 will need to be adjusted as actual tax remittances will not reflect the original
assumptions. At this time, staff believes the initial long-term assumptions of $1,500,000 in tax
revenue through the next several years as businesses mature is still an accurate forecast of tax
revenue. Updated projections on Cannabis Business Tax revenue will be presented to the City
Council at the Mid-Year Budget Update on February 18, 2019.
ALTERNATIVES
1. Do not adopt staff recommendations. This is not recommended as it does not align with the
City Council’s overall intention to enhance clarity and cost effectiveness in the application
process and Cannabis Regulations. Likewise, this is not recommended as it does not align
with the City Council’s overall intention to obtain qualified cannabis business operators in
the City.
2. Modify and Direct the Proposed Fee Recommendation and Application Criteria. The
City Council has the latitude to make modifications to the Cannabis Operator Permit
Application Requirements and Ranking Criteria and the proposed Fee Schedule. The Council
has the policy discretion to adjust fees and Staff will be prepared to offer any ideas for any
adjustments.
Attachments:
a - Draft Resolution Amended Fee Payment
b - Draft Resolution Merit Criteria
c - Exhibit A to Draft Resolution - Cannabis Scoring Worksheet
d - Draft Ordinance Amendment
e - Exhibit A to Draft Ordinance
Packet Page 197
Item 12
R ______
RESOLUTION NO. ______ (2019 SERIES)
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS
OBISPO, CALIFORNIA, AMENDING THE CITY’S MASTER FEE
SCHEDULE WITH UPDATED USER AND REGULATORY FEES FOR
VARIOUS COMMERCIAL CANNABIS BUSINESS ACTIVITIES
WHEREAS, it is the City’s policy (User Fee Recovery Goals - Financial Plan Section H)
to assess service charges based on specific policies for cost recovery of services provided; and
WHEREAS, on May 15, 2018, the City Council adopted Ordinance No. 1647 (2018
Series) establishing a comprehensive regulatory program for the evaluation and permitting of
commercial cannabis business operations within the City; and
WHEREAS, Section 9.10.050 of the Municipal Code says that the City Council shall
adopt fees necessary to implement the regulations in relation to Commercial Cannabis Operator
Permits; and
WHEREAS, the City has contracted with a consultant, MuniServices, to prepare cost and
resource allocation worksheets for the purpose of identifying appropriate fees to assess for various
activities and applications associated with the reviewing, ranking, permitting, and regulation of
commercial cannabis businesses in the City of San Luis Obispo; and
WHEREAS, the City has completed two Cannabis application windows from January
2019 to December 2019, upon which staff has concluded it is necessary to adjust the way in which
Cannabis Applicant’s for all application types pay for their one-time application fee;
WHEREAS, public outreach was conducted through outreach by staff members to
interested parties and through publication of the proposed fee schedule on the City’s website in
advance of the City Council’s consideration of the newly proposed fees; and
WHEREAS, on November 27, 2018, the City Council adopted a fee schedule; and
WHEREAS, on December 3, 2019, the City Council held a public hearing to review and
discuss the updated proposed fee schedule, receive public input, and consider the
recommendations of its staff.
NOW, THEREFORE, BE IT RESOLVED by the Council of the City of San Luis Obispo
as follows:
Packet Page 198
Item 12
Resolution No. ______ (2019 Series) Page 2
R ______
SECTION 1. Findings. The City Council makes the following findings:
1. That the above recitals are true and correct.
2. That the proposed user and regulatory fees are consistent with the City’s cost recovery
goals (Financial Plan Section H), and that the established fees do not exceed the
estimated reasonable cost of providing the service or performing the activity for which
the fee is imposed.
SECTION 2. Action. The City Council takes the following actions:
1. The City’s Master Fee Schedule is hereby amended to include updated user and
regulatory fees for cannabis business operator applications and annual licenses as
provided in Exhibit A attached hereto.
2. This resolution supersedes Resolution 10965 (2018 Series) to the extent inconsistent
herewith.
Upon motion of Council Member ____________, seconded by Council Member _____________,
and on the following roll call vote:
AYES:
NOES:
ABSENT:
The foregoing resolution was adopted this _________day of _____________ 2019.
____________________________________
Mayor Heidi Harmon
ATTEST:
____________________________________
Teresa Purrington
City Clerk
APPROVED AS TO FORM:
_____________________________________
J. Christine Dietrick
City Attorney
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City
of San Luis Obispo, California, this __________ day of ____________________, ____________.
____________________________________
Teresa Purrington, City Clerk
Packet Page 199
Item 12
Resolution No. ________ (2019 Series) Page 3
EXHIBIT A
R ______
EXHIBIT A
CITY OF SAN LUIS OBISPO
Cannabis Fee Schedule
One Time Application Fees
All Commercial Cannabis Business Applicants:
Initial Application Fee $4,955 $7,431
Final Application Fee when permit issues $18,307 $15, 087
Total One Time Application Fees: $23,262
Yearly License Renewal Fees
Retail Businesses $93,564
Manufacturing Businesses $74,411
Cultivation $74,627
Other Business $68,064
Packet Page 200
Item 12
R ______
RESOLUTION NO. ______ (2019 SERIES)
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS
OBISPO, CALIFORNIA, APPROVING CANNABIS OPERATOR PERMIT
RANKING CRITERIA AND THE ANNUAL APPLICATION SUBMITTAL
PERIOD (CODE-1058-2017)
WHEREAS, in 2017, the California legislature passed, and Governor Brown signed
Senate Bill 94, which enacted the Medicinal and Adult-Use Cannabis Regulation and Safety Act
(“MAUCRSA”), repealed the Medical Cannabis Regulation and Safety Act (“MCRSA”) but
incorporated certain provisions of MCRSA into the licensing provisions established by Proposition
64; and
WHEREAS, the City Council of the City of San Luis Obispo conducted a public hearing
in the Council Chamber of City Hall, 990 Palm Street, San Luis Obispo, California, on May 15,
2018 and adopted Ordinance 1647 that amended Title 17 (Zoning Regulations) of the Municipal
Code to establish land use regulations for the operation of commercial cannabis businesses, and
repealed and replaced Title 9, Public Peace, Morals and Welfare (Chapter 9.10.) of the Municipal
Code related to cannabis regulation; and
WHEREAS, the City Council of the City of San Luis Obispo conducted a public hearing
on October 16, 2018 in the Council Chamber of City Hall, 990 Palm Street, San Luis Obispo,
California, and continued the review of the Cannabis Operator Permit Ranking Criteria and the
annual application submittal period providing direction to staff on adjustments to be made to the
criteria; and
WHEREAS, the City Council of the City of San Luis Obispo adopted on November 27,
2018 in the Council Chamber of City Hall, 990 Palm Street, San Luis Obispo, California, a
resolution that established the Cannabis Operator Permit Ranking Criteria (Exhibit A) and the
annual application submittal period; and
WHEREAS, the City Council of the City of San Luis Obispo conducted a public hearing
on December 3, 2019 in the Council Chamber of City Hall, 990 Palm Street, San Luis Obispo,
California, for the purpose of updating the Cannabis Operator Permit Ranking Criteria (Exhibit
A).
NOW, THEREFORE, BE IT RESOLVED by the Council of the City of San Luis Obispo
as follows:
Packet Page 201
Item 12
Resolution No. ________ (2019 Series) Page 2
R _______
SECTION 1. Findings.
1. The proposed Cannabis Operator Permit Ranking Criteria (Exhibit B) establishes the
ranking criteria for individuals who apply for a Cannabis Operator Permit to operate a
cannabis business activity in the City consistent with Municipal Code Chapter 9.10,
Section 9.10.070 (A).
2. The proposed timeframe in which applications are submitted annually is consistent with
Municipal Code Chapter 9.10, Section 9.10.070 (B).
SECTION 2. Environmental Review. The project is exempt from environmental review
per the Business and Professions Code (Section 26055(h)) because the project includes the
adoption of ordinances, rules, or regulations for the purpose of regulating cannabis business
activity in the City. The City’s cannabis business regulations require discretionary review and
approval of permits, licenses, or other authorizations to engage in commercial cannabis activity.
Future applications for commercial cannabis business activities in the City will be subject to
CEQA, per the normal environmental review process.
SECTION 3. Action. The City Council hereby approves Cannabis Operator Permit
Ranking Criteria (Exhibit A) and annual application submittal timeframe subject to the following
conditions:
1. All Cannabis Businesses shall be evaluated by the Cannabis Operator Permit Ranking
Criteria as outlined in Exhibit A.
2. The first annual application submittal period coincided with the first three weeks of
2019 (January 7 through close of business on January 29, 2019). Following that initial
application period, the City Council delegates its authority to the City Manager to open
up new application periods on an as needed basis to include July 1 through July 31 of
each calendar year.
3. The City Manager is authorized to make minor modifications to this evaluation criteria
to ensure that the application process is implemented in a manner that is consistent with
the intent of Ordinance 1647. Any future changes to the criteria outlined in Exhibit A
will be published at least 10 days in advance of any application period opening.
Packet Page 202
Item 12
Resolution No. ________ (2019 Series) Page 3
R _______
4. This resolution supersedes Resolution 10966 (2018 Series) to the extent inconsistent
herewith.
Upon motion of Council Member __________, seconded by Council Member _____________,
and on the following roll call vote:
AYES:
NOES:
ABSENT:
The foregoing resolution was adopted this ______ day of ____________ 2019.
____________________________________
Mayor Heidi Harmon
ATTEST:
____________________________________
Teresa Purrington
City Clerk
APPROVED AS TO FORM:
_____________________________________
J. Christine Dietrick
City Attorney
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City
of San Luis Obispo, California, this __________ day of ____________________, ____________.
____________________________________
Teresa Purrington
City Clerk
Packet Page 203
Item 12
CITY OF SAN LUIS OBISPO
Cannabis Business License Operator Permit
1Scoring Guidelines
1. Applicant will provide one hard copy and a digital copy in a readable PDF form make three copies of each
application and proposal.
2. City will compile any additional information related to the applicant for consideration.
3. Discussion between the reviewers during the evaluation will be limited to clarification to ensure an equal
understanding of the application.
4. Questions can also be directed to the consultant.
5. Each reviewer will complete a score sheet for each proposal.
6. Points may be awarded in an amount up to the possible points in each scoring criteria.
7. Each completed score sheet will be given to the consultant.
8. The consultant will review all three the score sheets for each proposal.
9. If there is a scoring deviation between reviewers on any scoring criteria of more than 30%, the consultant
will discuss this specific score with the reviewers.
10. An adjusted score may be agreed upon by the reviewers and the consultant.
11. Once all criteria scores are reviewed and agreed upon, the total aggregate score for the all three-review
panel ers will be totaled then divided by the number of reviewers three to obtain the final score.
12. For an applicant to qualify for a contingent operator permit, the applicant must score from an average of
all scorers at or above 70% of the total available points on the application of that application period.
1 Changes made to this page for the Cannabis Business Operator Permit Scoring Guidelines to mirror language used on the
Commercial Cannabis Business Operator Permit Application and to correctly reflect the structure of the seven -member Review Panel.
Applicant:
Reviewer:
Automatic Fail Criteria:
·Application received after the final filing date.
·Application is incomplete or inaccurate.
·Facility does not meet City business licensing standards.
·Only one license applicant allowed per location. It is the applicant’s responsibility to verify that must
ask potential landlords do not if they have existing, competing cannabis business applicants.
Definitions:
An "applicant" is the entity petitioning for the Cannabis Business Operator Permit license and A "principal(s)" are
the individual members of the applicant team.
A "primary principal" is defined as an individual who has a 10% or greater ownership stake of the applicant
business.
An "operator" is an applicant that has been licensed and conducts or conducted active cannabis operations.
A "majority" is defined as a greater number; more than half. An equal number does not constitute a majority.
Packet Page 204
Item 12
Adult-Use Retail Cannabis Merit-Based Criteria and Possible Points
All applications for a license will be evaluated using the merit criteria outlined below. Applicants must submit
supplemental documentation or references with the application that support the statements below for review
by the City.
Packet Page 205
Item 12
Manufacturing, Distribution and Non-Storefront Retail Evaluation Criteria
Merit Criteria 1.0 - Community Benefit
Community Benefit (A): Applicant demonstrates a commitment to City through
local hiring and community support. Select all that apply within each category
and total score. (Up to 20 Points – Deviation Threshold 6 Points)
Possible
points
Applicant
score
1.1A
Over 90% of employees will be San Luis Obispo County residents. (10 points)
or 60% - 90% of employees will be San Luis Obispo County residents. (5 points)
10
1.2A
Over 80% of supply and equipment expense (non-labor, non-rent expense) will be
sourced from businesses within 90 miles. (10 points)
or 50% - 80% of supply and equipment expense (non-labor, non-rent expense)
will be sourced from local businesses within 90 miles. (5 points)
10
Total Community Benefit (A) 20
Community Benefit (B): Continued support of community programs in San Luis
Obispo (i.e. park cleanups, facility improvements, donating supplies/equipment to
youth programs). (Up to 10152 Points - Deviation Threshold 3 points)
Possible
points
Applicant
score
1.1B
Providing over 20 hours per month of community support. (5 points)
or Providing over3 10-20 hours per month of community support. (2 points)
5
1.2B
Provide over $1,000 per month for community support. (5 points)
or Provide up to $1,000 per month for community support. (2 points)
5
1.3B Applicant can demonstrate a history of supporting local community programs for
the past one year.4 (5 points) 5
Total Community Benefit (B) 15
Total Merit Criteria 1.0 35
2 Correction to possible points available in “Community Benefit (B)”.
3 Clarifies range between “over 20 hours” (worth 5 points) “and 10 -20 hours” (2 points).
4 Specifies the range for demonstrating a “history” of supporting local community programs. Packet Page 206
Item 12
Merit Criteria 2.0 - Equity and Labor
Applicant commits to equity ownership and competitive compensation in
comparison to other mainstream commercial businesses. Applicants commitment
will be confirmed during annual permit renewal process. Select all that apply and
total score. (Up to 20 Points – Deviation Threshold 9 Points)
Possible
points
Applicant
score
2.1
Applicant includes 3 or more principals with 2% equity or higher who have earned
at or below the median household income at the time of application. (8 points)
or Applicant includes 1 or 2 primary principals who have earned at or below the
median household income at the time of application. (4 points)
8
2.2
Business will have an average pay rate for entry and mid-level positions of at least
40% more than the median local income for similar positions in other mainstream
businesses. (8 points)
or Business will have an average pay rate for entry and mid-level positions of at
least 20% more than the median local income for similar positions in other
mainstream businesses. (4 points)
8
2.3
Base wages of employees exceed the minimum wage by at least $3.00/hr.
2
2.4
Business will allow "labor peace agreement" at 20 or more non-management
employees.5
2
Total Merit Criteria 2.0 20186
5 Eliminate the “labor peace agreement” for “non-management” points; state law triggers at 20 employees.
6 New total merit criteria points available in “2.0 Equity and Labor”. Packet Page 207
Item 12
Merit Criteria 3.0 - Financial Investment
Financial Investment: Applicant has plans and capital to support a vibrant
business within the City. (Up to 25 Points – Deviation Threshold 3 Points)
Possible
points
Applicant
score
3.1 Applicant demonstrates financial capacity to capitalize, start up, and sustain
business operations.
1-10
3.2 Applicant commits to develop raw land that has been zoned for commercial use
for a commercial cannabis facility.
1-10
3.3
Applicant commits to major improvements, including façade rehabilitation,
building expansion, site improvements and/or other investments in an
underutilized/underdeveloped site that has been zoned for commercial use for a
commercial cannabis facility.
1-5
3.4 The proposed cannabis business site can accommodate the required number of
parking spaces with safe and convenient access for customers/employees.
1-5
Total Merit Criteria 3.0 30
Totals
Total GENERAL Merit Criteria Points Available 8357
Total GENERAL Merit Criteria Points Awarded
Total %
Packet Page 208
Item 12
Cultivation Evaluation Criteria
Merit Criteria 1.0 - Community Benefit
Community Benefit (A): Applicant demonstrates a commitment to City through
local hiring and community support. Select all that apply within each category
and total score. (Up to 20 Points – Deviation Threshold 6 Points)
Possible
points
Applicant
score
1.1A
Over 90% of employees will be San Luis Obispo County residents. (10 points)
or 60% - 90% of employees will be San Luis Obispo County residents. (5 points)
10
1.2A
Over 80% of supply and equipment expense (non-labor, non-rent expense) will be
sourced from businesses within 90 miles. (10 points)
or 50% - 80% of supply and equipment expense (non-labor, non-rent expense)
will be sourced from local businesses within 90 miles. (5 points)
10
Total Community Benefit (A) 20
Community Benefit (B): Continued support of community programs in San Luis
Obispo (i.e. park cleanups, facility improvements, donating supplies/equipment to
youth programs). (Up to 10 158 Points - Deviation Threshold 3 points)
Possible
points
Applicant
score
1.1B
Providing over 20 hours per month of community support. (5 points)
or Providing over 10-20 hours per month of community support. (2 points)
5
1.2B
Provide over $1,000 per month for community support. (5 points)
or Provide up to $1,000 per month for community support. (2 points)
5
1.3B Applicant can demonstrate a history of supporting local community programs for the
past one year.9(5 points)
5
Total Community Benefit (B) 15
Total Merit Criteria 1.0 35
8 Correction to possible points available in “Community Benefit (B)”.
9 Specifies the range for demonstrating a “history” of supporting local community programs. Packet Page 209
Item 12
Merit Criteria 2.0 - Equity and Labor
Applicant commits to equity ownership and competitive compensation in
comparison to other mainstream commercial businesses. Applicants commitment
will be confirmed during annual permit renewal process. Select all that apply and
total score. (Up to 20 Points – Deviation Threshold 9 Points)
Possible
points
Applicant
score
2.1
Applicant includes 3 or more principals with 2% equity or higher who have earned
at or below the median household income at the time of application. (8 points)
or Applicant includes 1 or 2 primary principals who have earned at or below the
median household income at the time of application. (4 points)
8
2.2
Business will have an average pay rate for entry and mid-level positions of at least
40% more than the median local income for similar positions in other mainstream
businesses. (8 points)
or Business will have an average pay rate for entry and mid-level positions of at
least 20% more than the median local income for similar positions in other
mainstream businesses. (4 points)
8
2.3
Base wages of employees exceed the minimum wage by at least $3.00/hr.
2
2.4 Business will allow "labor peace agreement" at 20 or more non-management
employees.
2
Total Merit Criteria 2.0 201810
Merit Criteria 3.0 - Medical Retail Commitment
Medical Retail Commitment (up to 10 points) Possible
points
Applicant
score
3.1 Applicant commits to retain a California state medicinal cannabis cultivation
license. 10
Total Merit Criteria 3.0 10
10 New total merit criteria points available in “2.0 Equity and Labor”. Packet Page 210
Item 12
Merit Criteria 4.0 - Sustainability
Applicant demonstrates past experience in and/or commits to sustainable and
environmental business or building practices utilizing recognized industry
standards. Applicants actions will be confirmed during annual permit renewal
process. Select all that apply and total score. (Up to 20 Points – Deviation
Threshold 6 Points)
Possible
points
Applicant
score
4.1
Applicant will recycle waste water (utilize purple pipe when available).
5
4.2
Applicant will utilize certified organic practices.
3
4.3
Applicant will utilize carbon free power sources for majority of power.
5
4.4
Applicant will utilize energy efficient lighting.
4
4.5
Applicant has plan to reduce water waste.
3
Total Merit Criteria 4.0 20
Merit Criteria 5.0 - Financial Investment
Financial Investment: Applicant has plans and capital to support a vibrant
business within the City. (Up to 25 Points – Deviation Threshold 3 Points)
Possible
points
Applicant
score
5.1 Applicant demonstrates financial capacity to capitalize, start up, and sustain
business operations.
1-10
5.2 Applicant commits to develop raw land that has been zoned for commercial use
for a commercial cannabis facility.
1-10
5.3
Applicant commits to major improvements, including façade rehabilitation,
building expansion, site improvements, removing visual blight, and/or other
investments in an underutilized/underdeveloped site that has been zoned for
commercial use for a commercial cannabis facility.
1-5
5.4
The proposed cannabis business site can accommodate the required number of
parking spaces with safe and convenient access for customers/employees.
1-5
Total Merit Criteria 5.0 30
Packet Page 211
Item 12
Totals
Total Merit Criteria Points Available 113511
Total Merit Criteria Points Awarded
Total %
11 New total for “General Merit Criteria Points Available”. Packet Page 212
Item 12
Retail Ev a lua tion Crite ria
M eri t C ri ter i a 1 .0 - C o m m uni ty Benef i t
C om m un i t y B ene f i t ( A ) : A ppl i c ant dem onst r at es a c om m i t m ent t o C i t y t hr oug h
l oca l h i r i ng and c om m uni t y suppo r t . S el e ct al l t hat app l y w i t hi n ea ch c a t eg or y
and t o t a l sc or e . ( U p t o 20 P oi nt s – D ev i a t i o n T hr es ho l d 6 Poin t s )
P os si b l e
point s
A pp l i can t
sc ore
1.1A
O v er 90% o f em pl oy ee s wi l l b e San Lu i s Ob i sp o C oun t y r es i den t s. ( 10 po i nts )
10
or 60 % - 90% of em pl oy ee s wil l be S an Lu i s Ob i spo C ount y r es i den t s. ( 5 po i nt s )
1.2A
O v er 80% o f supp l y and e q ui pm ent exp ens e ( non - l abo r , non - r ent e xpen se ) w i l l be
sour c ed f r om busi n es se s wi t hi n 90 m i l es . ( 10 po i n t s)
10
or 50 % - 80% of supp l y and e qu i pm ent expe nse ( non - l abor , non - r ent exp ens e)
w i l l be s our c ed f r om l oca l busi n es s es w i t h i n 90 m i l e s. ( 5 po i nts )
T otal C o m m u n ity Bene f it ( A) 20
C om m un i t y B ene f i t ( B ) : C ont i n ued s uppo r t o f com m uni t y pr og r am s i n San Lu i s
O bi spo ( i . e. pa r k cl ea nups, f ac i l i t y i m pr ov em ent s, don at i ng suppl i es / equ i pm ent t o
y out h pr og r am s) . ( U p t o 10 Point s - D ev i at i on T h r es h o l d 3 po i n t s)
P os si b l e
point s
A pp l i can t
sc ore
1.1B
Prov i di ng ov er 20 ho ur s pe r m ont h of c om m uni t y suppor t . ( 5 po i nt s)
5
or Pr ov i di ng ov er 10 - 20 hour s p er m ont h o f com m un i t y suppo r t . ( 2 po i nt s)
1. 2B
Prov i de ov er $1, 000 p er m ont h f or com m uni t y suppor t . ( 5 p oi n t s)
5
or Pr ov i de up t o $1, 000 p er m ont h f o r com m uni t y suppor t . ( 2 p oi n t s)
1. 3B A ppl i c ant ca n dem onst r at e a hi s t o r y of supp or t i ng l oc a l com m uni t y pr og r am s. ( 5
poi n t s) 5
T otal C om m u n ity Bene f it ( B ) 15
To t a l M er i t C ri ter i a 1.0 35
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Item 12
Merit Criteria 2.0 - Experience
Record of compliant current or previous business operations: A pp l i c ant has
pr ev i ous r ec or d of op er a t i n g a c om pl i ant c anna bi s ope r at i on (i n cl u di ng m edi ca l ).
A com pl i ant oper at i on i s d e f i ne d as hav i ng a s ubs t an t i a l l y com pl i an t r ec o r d (m ay
hav e s om e m i nor r e so l v ed/cor r ec t ed v i o l at i on s) w it ho ut a do cum ent ed h i s t or y of
unr es ol v ed l oca l or st at e l e v el v i ol at i ons r e l a t i ng , bu t not l i m i t ed t o : bus i ne ss co d e,
publ i c s af e t y , env i r onm ent a l i m pac t s , em pl oym ent , and f i n anc i al pay m ent s. (U p
t o 30 Po i n t s – D ev i a t i on T h r es ho l d 9 P oi n t s )
Possible
points
Applicant
score
2.1
91% t o 100 % o f t h e pr i m ar y pr i nci pal s ha v e ope r a t ed a l oc al com pl i an t ca nnab i s
oper a t i on f or 5 o r m or e y ea r s. 35
or 81 % t o 90 % of t he pr im ar y pr i nci pa l s h av e ope r at ed a l oca l com pl iant
ca nnab i s oper at i on f or 5 or m or e y ea r s. 30
or 71 % t o 80 % of t he pr im ar y pr i nci pa l s h av e ope r at ed a l oca l com pl iant
ca nnab i s oper at i on f or 5 or m or e y ea r s. 25
or 61 % t o 70 % of t he pr im ar y pr i nci pa l s h av e ope r at ed a l oca l com pl iant
ca nnab i s oper at i on f or 5 or m or e y ea r s. 20
or 51 % t o 60 % of t he pr im ar y pr i nci pa l s h av e ope r at ed a l oca l com pl iant
com m er ci al ca nn abi s ope r a t i on f o r 5 o r m or e y ea r s. 15
2.2
10 -50% of t h e pr i m ar y pr i n ci pa l s o per at ed a c om pl i an t ca nna bi s ope r at i on o ut si d e
of SL O C ount y f o r 5 o r m or e y ea r s . 10
or 10 -50% of t he pr i m ar y pr i n ci p al s ope r a t ed a com pl i an t ca n nab i s op er a t i on
out s i de o f SL O C oun t y f or l es s t h an 5 y ea r s. 5
Total Merit Criteria 2.0 35
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Item 12
M eri t C ri ter i a 3 .0 - Equit y an d Lab o r
Applicant commits to equity ownership and competitive compensation in
comparison to other mainstream commercial businesses. Applicants commitment
will be confirmed during annual permit renewal process. Select all that apply and
total score. (Up to 20 Points – Deviation Threshold 9 Points)
P os si b l e
point s
A pp l i can t
sc ore
3.1
Applicant includes 3 or more principals with 2% equity or higher who have earned
at or below the median household income at the time of application. (8 po i nt s)
8
or Applicant includes 1 or 2 primary principals who have earned at or below the
median household income at the time of application. (4 point s)
3.2
Business will have an average pay rate for entry and mid-level positions of at least
40% more than the median local income for similar positions in other mainstream
businesses. (8 po i nts )
8
or Business will have an average pay rate for entry and mid -level positions of at
least 20% more than the median local income for similar positions in other
mainstream businesses. (4 point s)
3.3 Base wages of employees exceed the minimum wage by at least $3.00/hr. 2
3.4 Business will allow "labor peace agreement" at 20 or more non-management
employees. 2
To t a l M er i t C ri ter i a 3.0 20
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Item 12
M eri t C ri ter i a 4 .0 - M es s a g i n g
4.1 Applicant commits to responsible use messaging practices. Select all that apply
and total score. (Up to 10 Points – Deviation Threshold 3 Points)
P os si b l e
point s
A pp l i can t
sc ore
4.2 Business articulates strategy to keep cannabis from being diverted to minors
including advertising that is appropriately targeted to adult audiences. 1-5
4.3
Business promotes responsible use including messaging on packaging, offering
lower dose THC product options, offering to track use via "user determined
quotas", posting information on cannabis use disorder and cautions re:
development of the adolescent brain.
1-5
To t a l M er i t C ri ter i a 4.0 10
M eri t C ri ter i a 5 .0 - M edi c a l R et a i l C o m m i t m ent
Medical Retail Commitment (up to 10 points) P os si b l e
point s
A pp l i can t
sc ore
5.1 Applicant commits to provide retail medical cannabis products to consumers. 10
To t a l M er i t C ri ter i a 5.0 10
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Item 12
M eri t C ri ter i a 6 .0 - P ro pert y C o nt ro l
C ontr ol o f bu si ne ss l oca t i on: Applicant demonstrates control of a site to ensure a
successful and timely transition from being awarded a license to opening the
business. Incomplete purchase or lease agreements do not constitute site control.
(Up to 10 Points – Deviation Threshold 3 Points)
P os si b l e
point s
A pp l i can t
sc ore
Choose one:
6.1 Majority ownership in site property. 10
6.2 Minority ownership in site property. 8
6.3 10+ years future lease of site property. 8
6.4 5-10 years future lease of site property. 5
6.5 2-5 years future lease of site property. 3
6.6 Less than 2 years future lease of site property. 1
To t a l M er i t C ri ter i a 6.0 10
M eri t C ri ter i a 7 .0 - F i na nc i a l I nv es tm en t
Financ i al Inves t m ent : Applicant has plans and capital to support a vibrant
business within the City. (Up to 25 Points – Deviation Threshold 3 Points)
P os si b l e
point s
A pp l i can t
sc ore
7.1 Applicant demonst rates financial capacity to capitalize, start up, and sustain
business operations. 1-10
7.2
Applicant commits to major improvements, including façade rehabilitation,
building expansion, site improvements, removing visual blight, and/or other
investments in an underutilized/underdeveloped site that has been zoned for
commercial use for a commercial cannabis facility.
1-5
7.3 The proposed cannabis business site can accommodate the required number of
parking spaces and safe and convenient access for customers/employees. 1-5
To t a l M er i t C ri ter i a 7 .0 20
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Item 12
To t a l s
Total Merit Criteria Points Availab le 140
Total Merit Criteria Points Aw ar d e d
To t a l %
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Item 12
O ______
ORDINANCE NO. _____ (2019 SERIES)
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SAN LUIS
OBISPO, CALIFORNIA, AMENDING THE MUNICIPAL CODE PUBLIC
PEACE, MORALS AND WELFARE (CHAPTER 9.10) REGULATIONS
FOR COMMERCIAL CANNABIS BUSINESS BUSINESSES AND
PERSONAL CULTIVATION
WHEREAS, the City of San Luis Obispo adopted on _____________, 2019, in the
Council Chamber of City Hall, 990 Palm Street, San Luis Obispo, California , an amendment to
the Municipal Code, Chapter 9.10, Regulations for Commercial Cannabis and Personal
Cultivation; and
NOW, THEREFORE, BE IT ORDAINED by the Council of the City of San Luis Obispo
as follows:
SECTION 1. Section 9.10.070, subsection A of the San Luis Obispo Municipal Code is
hereby amended as reflected in Exhibit A to read as follows:
A. Application. A person shall apply for a commercial cannabis operator permit by
submitting an application to the city during the annual application period or any other
period established by City Manager. The City Council will, by resolution, adopt criteria
by which all applications will be reviewed, applicants qualified and, in the case of retail
and cultivation businesses, also ranked. Those applicants that are selected will have the
opportunity to apply for a use permit as outlined in Section 17.86.080. Each application
shall designate at least one responsible party. If a person is not selected to receive a
commercial cannabis operator permit, the person may reapply during the next annual
application period or any subsequent application period established by the City
Manager.
SECTION 2. Section 9.10.070, subsection B of the San Luis Obispo Municipal Code is
hereby amended as reflected in Exhibit A to read as follows:
B. Application Submittal Timeframe. A person may only submit one application per
permit type, per application period, for a commercial cannabis operator permit, during the
annual application period designated by resolution of the city council or any subsequent
application period established by the City Manager. An Applicant who is unsuccessful in
any application period may submit another application in any subsequent application
period. The commercial cannabis operator permit will be valid for twelve months. Once a
permit is obtained, the applicant can apply annually for renewal. There is no guarantee that
an applicant will receive a commercial cannabis operator permit in the first instance. Due
to limitations on the number of certain permits, even a highly ranked applicant for a retail
or cultivation permit may not receive a commercial cannabis operator permit and even an
applicant who receives a commercial cannabis operator permit is not guaranteed that any
subsequent, required land use permit, as outlined in Section 17.86.080, will be approved.
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Item 12
Ordinance No. _____ (2019 Series) Page 2
O ______
SECTION 3. Ordinance Number 1647 (2018 Series) is hereby amended and superseded
to the extent inconsistent herewith.
SECTION 4. Severability. If any subdivision, paragraph, sentence, clause, or phrase of
this Ordinance is, for any reason, held to be invalid or unenforceable by a court of competent
jurisdiction, such invalidity or unenforceability shall not affect the validity or enforcement of the
remaining portions of this Ordinance, or any other provisions of the city' s rules and regulations.
It is the city' s express intent that each remaining portion would have been adopted irrespective of
the fact that any one or more subdivisions, paragraphs, sentences, clauses, or phrases be declared
invalid or unenforceable.
SECTION 5. A summary of this ordinance, together with the names of Council members
voting for and against, shall be published at least five (5) days prior to its final passage, in The
Tribune, a newspaper published and circulated in this City. This ordinance shall go into effect at
the expiration of thirty (30) days after its final passage.
INTRODUCED on the _______ day of __________ 2019, AND FINALLY ADOPTED
by the Council of the City of San Luis Obispo on the _______ day of ___________, 2019, on the
following vote:
AYES:
NOES:
ABSENT:
____________________________________
Mayor Heidi Harmon
ATTEST:
____________________________________
Teresa Purrington
City Clerk
APPROVED AS TO FORM:
_____________________________________
J. Christine Dietrick
City Attorney
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City
of San Luis Obispo, California, this ______ day of ______________, _________.
______________________________
Teresa Purrington, City Clerk
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Item 12
EXHIBIT A
1
Chapter 9.10 Cannabis Regulations
9.10.010 Purpose and Intent.
9.10.020 Definitions
9.10.030 Personal Cultivation Limited
9.10.040 Commercial Cannabis/City Permit and State License Required
9.10.050 Regulations and Fees
9.10.060 Display and Production of Permits
9.10.070 Commercial Cannabis Operator Permit Application Procedures and Requirements.
9.10.080 Renewal of Permit
9.10.090 Suspension or Revocation of Permit
9.10.100 Appeal
9.10.110 Right to Occupy and Use Property for Commercial Cannabis Activity
9.10.120 Prohibition on Transfer of Commercial Cannabis Operator Permits.
9.10.130 Records and Reporting.
9.10.140 Inspection and Enforcement.
9.10.150 Outdoor Commercial Cannabis Cultivation and Activities Prohibited
9.10.160 Indemnification, Insurance, Reimbursement, Consent
9.10.170 Compliance with Laws
9.10.180 Permit Violation
9.10.190 Permit Compliance Monitoring
9.10.200 Permit Holder Responsible for Violations by Employees or Agents
9.10.210 Consumption or Use Prohibited On-site and In Public
9.10.220 Concurrent Alcohol Sales or Service Prohibited
9.10.230 Minors
9.10.240 Sale of Cannabis, Cannabis Products or Cannabis Accessories by Vending Machine
prohibited
9.10.250 Security Measures
9.10.260 Limitations on City’s Liability.
9.10.270 Fees Deemed Debt to City
9.10.280 Violation and Penalties
9.10.290 Severability
9.10.010 Purpose and Intent.
A. It is the primary purpose and intent of this Chapter to protect the health, safety, and welfare
of the residents of the City of San Luis Obispo from the negative impacts of illegal
commercial and non-commercial cannabis activity, and of state authorized cannabis
activity, by enforcing City ordinances, rules and regulations consistent with applicable
State law, including, but not limited to, the Compassionate Use Act, the Medical Marijuana
Program Act, the Adult Use of Marijuana Act, and the Medicinal and Adult Use of
Cannabis Regulatory and Safety Act.
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Item 12
EXHIBIT A
2
B. This Chapter is not intended to, and shall not be construed to, prohibit or interfere with any
right, defense or immunity under Health and Safety Code Section 11362.5 (the
Compassionate Use Act), or under Health and Safety Code Section 11362.7 et. seq. (the
Medical Marijuana Program Act).
C. This Chapter is not intended to, and shall not be construed to, prohibit or interfere with any
right, defense or immunity of any person 21 years of age or older relating to the adult
personal possession or cultivation of cannabis or marijuana consistent with the provisions
of the Control, Regulate and Tax Adult Use of Marijuana Act, and the Medicinal and Adult
Use of Cannabis Regulatory and Safety Act.
D. Nothing in this Chapter shall be construed to authorize the cultivation, possession or use
of marijuana for any purpose inconsistent with state or local law.
E. Any reference to California statutes includes any regulations promulgated thereunder and
is deemed to include any successor or amended version of the referenced statute or
regulation.
9.10.020 Definitions
A. State defined terms. Words or terms used in this chapter that are defined words or terms in
Business and Professions Code Section 26001, or Health and Safety Code Section 11362.7 (the
Statutes”) shall have the meanings ascribed to them in the Statutes as they now read, or as they
may be amended to read. These state defined words and terms include, but are not limited to,
“cannabis,” “cannabis accessories,” “cannabis concentrate,” “cannabis products,”
“commercial cannabis activity,” “cultivation,” “delivery,” “distribution,” “license,” “live
plants,” “manufacture,” “operation,” “person,” “premises,” “sell,” “sale,” “to sell.” Some of
these terms are also set forth in Chapter 17.100 of this code. In the event of conflict in the
definitions, the definitions in Chapter 17.100 shall control; provided the terms defined in
subsection B below shall control over any other definition.
B. City defined terms. The following words or terms used in this chapter have the following
meanings:
1. “Commercial Cannabis Business” means any person or entity engaging in any business,
operation or activity which is Commercial Cannabis Activity under state law in the
City.
2. “Commercial Cannabis Operator Permit” means a permit required by the City of San
Luis Obispo pursuant to this chapter to conduct Commercial Cannabis Activity or a
Commercial Cannabis Business in the City.
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EXHIBIT A
3
3. “Responsible Party(ies)” shall be one or more individuals who have an ownership
interest in a Commercial Cannabis Activity and are designated to be personally
responsible for compliance with all terms and conditions of the Commercial Cannabis
Operator Permit, all other permits required by the City, and all ordinances and
regulations of the City. Any person having an ownership interest of more than fifty
percent in a Commercial Cannabis Activity shall be designated a Responsible Party on
the application. If no individual owns more than fifty percent of a Commercial
Cannabis Activity, the individual owning the largest share shall be a Responsible Party,
and if multiple individuals have the same percentage interest, each one shall be a
Responsible Party. More than one individual can be designated a Responsible Party.
4. “Cannabis Event” means a public or private event where compensation is provided or
exchanged, either directly or indirectly or as part of an admission or other fee for
service, for the provision, hosting, promotion or conduct of the event where
consumption of cannabis is part of the activities.
9.10.030 Personal Cultivation Limited
A. Maximum Six Plants Outdoors Per Parcel. It shall be unlawful for any person to plant,
cultivate, harvest, dry, process, maintain, possess or store outdoors, more than six (6) live
cannabis plants on any parcel containing one or more private residences. This limitation on
outdoor personal cannabis activities applies per parcel, regardless of the number of residents
in each private residence, and regardless of the number of residences on the parcel. This
limitation applies to cannabis live plants for either adult recreational use or medicinal purposes.
Outdoor personal cultivation shall comply with applicable provisions of chapter 17.99 of this
Code.
B. Maximum Six Plants Per Private Residence, Indoors and Outdoors. It shall be unlawful for the
cumulative total of cannabis plants per private residence, indoors and outdoors, to exceed six
(6) cannabis live plants, regardless of number of persons residing in the private residence. This
limitation applies to cannabis live plants for either adult recreational use or medicinal purposes.
Any live cannabis plants grown indoors shall comply with applicable provisions of Chapter
17.99 of this Code.
C. No Outdoor Cultivation on Parcel without Private Residence. It shall be unlawful for any
person to plant, cultivate, harvest, dry, process, maintain, possess or store any cannabis live
plants outdoors on a parcel that does not have a private residence used for residential dwelling
purposes by the person cultivating the cannabis live plants.
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EXHIBIT A
4
D. Neighborhood Impacts of Personal Cultivation. There shall be no exterior evidence of cannabis
cultivation occurring at the property visible by normal unaided vision from a public place or
the public right-of-way and any outdoor cultivation shall comply with provisions of Chapter
17.99.040 of this code. Personal cultivation of cannabis, for recreational adult use or for
medicinal purposes, shall not create odors, dust, heat, noise, light, glare smoke or other impacts
to people of normal sensitivity living, working or lawfully present in the vicinity of the personal
cultivation site. Impacts that cross the nearest property line of any other parcel, beyond that
parcel on which the personal cultivation is conducted, or that are visible or noticeable with
normal unaided vision, from a public place or the public right of way, or from any separately
owned, leased or controlled private residence or business on the same parcel as the private
residence responsible for the personal cultivation, are unlawful.
E. No Hazardous Personal Cultivation. Personal cultivation, harvesting, drying, or processing of
cannabis, for recreational adult use or medicinal purposes, that uses or stores hazardous or
toxic chemicals or materials, creates hazardous or toxic products or wastes, or uses volatile
processes or other methods or substances that pose a significant risk to public health or safety,
is prohibited and unlawful.
9.10.040 Commercial Cannabis/City Permit and State License Required
A. City Commercial Cannabis Operator Permit Required. No person shall engage in Commercial
Cannabis Activity or have an ownership interest in, operate, or manage, a Commercial
Cannabis Business without obtaining and continuously maintaining a Commercial Cannabis
Operator Permit pursuant to this chapter.
B. Commercial Cannabis Operator Permit and State License(s) Required. It shall be unlawful for
any person to own, conduct, manage, operate, engage or participate in, work or volunteer at a
Commercial Cannabis Activity or Commercial Cannabis Business that does not have a valid
Commercial Cannabis Operator’s Permit issued pursuant to this chapter and other City permits
or licenses required by this Code, in addition to the appropriate license(s) required by state law
to conduct the Commercial Cannabis Activity. Any Commercial Cannabis Business or
Commercial Cannabis Activity conducted without all required City and state permits and
licenses is prohibited and unlawful and is hereby declared to be a public nuisance.
9.10.050 Regulations and Fees.
The City Council shall by resolution or ordinance adopt such forms, fees, regulations and
procedures as are necessary to implement this Chapter with respect to the application and
qualification for, and the selection, future selection, investigation, process, issuance, renewal,
revocation, and suspension of, Commercial Cannabis Operator Permits.
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EXHIBIT A
5
9.10.060 Display and Production of Permits
A. Dual Permits Posted and Visible. A copy of the Commercial Cannabis Operator Permit issued
by the City of San Luis Obispo pursuant to this Chapter, together with a copy of the appropriate
state license(s) for the Commercial Cannabis Activity being conducted, shall be posted and
readily visible to the public at all times, at each location where Commercial Cannabis Activity
occurs.
B. Production of Originals for Inspection. Any owner, operator , employee or person in charge of
a Commercial Cannabis Activity shall produce for inspection and copying, upon request of a
City inspector, code enforcement officer, or City police officer during normal operating hours,
the original of the current and valid City of San Luis Obispo Commercial Cannabis Operator
Permit and the appropriate, current and valid license(s) of the State of California for the
Commercial Cannabis Activity(ies) or Commercial Cannabis Business(es) being conducted.
9.10.070 Commercial Cannabis Operator Permit Application Procedures and
Requirements
A. Application. A person shall apply for a commercial cannabis operator permit by submitting an
application to the city during the annual application period or any other period established by
City Manager. The Ccity Ccouncil will, by resolution, adopt criteria by which all applications
will be reviewed, applicants qualified and, in the case of retail and cultivation businesses, also
ranked. Those applicants that are selected will have the opportunity to apply for a use permit
as outlined in Section 17.86.080. Each application shall designate at least one responsible
party. If a person is not selected to receive a commercial cannabis operator permit, the person
may reapply during the next annual application period or any subsequent application period
established by the City Manager.
B. Application Submittal Timeframe. A person may only submit one application per permit type,
per application period, for a commercial cannabis operator permit, during the annual
application period designated by resolution of the city council or any subsequent application
period established by the City Manager. An Applicant who is unsuccessful in any application
period may submit another application in any subsequent application period. The commercial
cannabis operator permit will be valid for twelve months. Once a permit is obtained, the
applicant can apply annually for renewal. There is no guarantee that an applicant will receive
a commercial cannabis operator permit in the first instance. Due to limitations on the number
of certain permits, even a highly ranked applicant for a retail or cultivation permit may not
receive a commercial cannabis operator permit and even an applicant who receives a
commercial cannabis operator permit is not guaranteed that any subsequent, required land use
permit, as outlined in Section 17.86.080, will be approved.
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Item 12
EXHIBIT A
6
A. Grounds for Automatic Disqualification.
In addition to any other reason that may be established by the City Council as a basis for
disqualification, an applicant shall be disqualified from applying for, or obtaining, a
Commercial Cannabis Operator Permit if:
1. The applicant fails to timely file an application during the annual application period.
2. The Responsible Party refuses to sign the application and agree to be personally responsible
for compliance, and personally liable for failure to comply, with the provisions of this
chapter.
3. The applicant, or any of its officers, directors or owners, or any person listed in the
application, has been convicted of a felony or offense referenced in Business Professions
Code Section 26057; or has been subject to fines, penalties, or sanctions for cultivation or
production of a controlled substance on public or private lands or for unauthorized
commercial cannabis activities as specified in Business and Professions Code Section
26057; or has had a commercial cannabis license suspended or revoked by the State of
California or any city or county in any stat, within the three years preceding the date the
application is filed, or is ineligible to apply for a state cannabis license. No person who has
been convicted of such a felony or offense, or subject to such fines, penalties, sanctions,
suspension or revocation may be engaged (actively or passively) in the operation,
management or ownership of any Commercial Cannabis Business. A conviction within the
meaning of this Chapter means a plea or verdict of guilty or a conviction or diversion
following a plea of nolo contendere.
4. The applicant made one or more false or misleading statements or omissions in the
application process.
5. Any person listed on the application is a licensed physician making patient
recommendations for medical or medicinal cannabis pursuant to State law.
6. Any person listed in the application is less than twenty-one (21) years of age.
B. Duration and Activation of Permit. Each Commercial Cannabis Operator Permit issued
pursuant to this Chapter shall expire twelve (12) months after the date of its activation. The
permittee may apply for renewal prior to expiration in accordance with this chapter. Each
Commercial Cannabis Operator Permit must be activated within 12 months of issuance. The
permit is activated by the issuance of a use permit for the Commercial Cannabis Activity
pursuant to Chapter 17.99, together with all other applicable City permits and state licenses,
and the Commercial Cannabis Operator thereafter opening and continuously operating the
Commercial Cannabis Activity. Failure to timely activate the permit shall be deemed
abandonment of the permit and the permit shall automatically lapse.
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Item 12
EXHIBIT A
7
9.10.080 Renewal of Permit
A. Renewal Application Filing Deadline. An application for renewal of a Commercial Cannabis
Operator Permit shall be filed at least sixty (60) calendar days, but not more than one hundred
twenty (120) calendar days, prior to the expiration date of the permit with the City Manager or
his/her designee. If the complete application and fees are timely submitted but the City does
not act to approve or reject the renewal prior to expiration, the permittee may continue to
operate under the expired permit until the City approves or rejects the application for renewal.
B. Rejection of Renewal Application. An application for renewal of a Commercial Cannabis
Operator Permit shall be rejected if any of the following exists.
1. The Commercial Cannabis Operator Permit is revoked at the time of the application or
renewal.
2. The applicant conducted unpermitted commercial cannabis activities in the City or
continued to conduct formerly permitted commercial cannabis activities after
expiration of the permit, other than as expressly permitted by this section.
3. Any of the grounds for disqualification for prequalification set forth in Section
9.10.070(C) above, or as established by the City Council, exist at the time of application
for renewal, or date of renewal.
4. The permittee fails to renew any required State of California license(s), or the State
revokes or suspends the license. Revocation, termination, non-issuance or suspension
of a license issued by the State of California, or any of its departments or divisions,
shall immediately, concurrently revoke, terminate, or suspend, respectively, the
Commercial Cannabis Operator Permit. Such automatic suspension makes it illegal for
a Commercial Cannabis Business or Activity to operate within the City of San Luis
Obispo until the State of California, or its respective department or division, reinstates
or issues the State license.
An application for renewal of a Commercial Cannabis Operator Permit may be denied if any of
the following exists:
1. The application is filed less than sixty (60) days before its expiration.
2. The applicant has received an administrative citation for violating any provision of this
Code relating to its Commercial Cannabis Activity(ies) in the City during the last
twelve months, and the administrative citation has not been resolved in the applicant’s
favor by date of application for renewal. A pending, unresolved appeal of an
administrative citation shall not result in rejection of an otherwise timely and complete
application, but resolution of an appeal in a manner that upholds the violation against
the applicant during the application review period shall result in the immediate
rejection of the application.
3. The Commercial Cannabis Business has not been in regular and continuous operation
in the three (3) months immediately prior to the renewal application.
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EXHIBIT A
8
4. The Commercial Cannabis Business fails to conform to the requirements of this
Chapter, any regulations adopted pursuant to this Chapter or the conditions imposed as
part of any Use Permit or zoning requirements under Chapter 17.99 of this Code.
5. The Commercial Cannabis Operator Permit is suspended at the time of application or
renewal.
C. Effect of Rejection of Application for Renewal. Operations to Cease Pending Appeals . If a
renewal application is rejected, the Commercial Cannabis Operator Permit expires on the
expiration date set forth in the permit, even if an appeal has been filed. All commercial cannabis
activities in the City under the expired permit must stop until all appeals have been exhausted.
A person or entity whose renewal application is rejected, and loses his/her/its appeal, must go
through the annual Commercial Cannabis Business Operator Permit application process.
9.10.090 Suspension or Revocation of Permit.
In addition to any other penalty authorized by law, a Commercial Cannabis Operator Permit may
be suspended or revoked if the City finds, after notice to the permittee and opportunity to be heard,
that the permittee or his or her agents or employees has violated any condition of the permit
imposed pursuant to, or any provision of, this chapter.
1. Upon a finding by the City of a first permit violation within any five-year period, the permit
shall be suspended for thirty days.
2. Upon a finding by the City of a second permit violation within any five-year period, the
permit shall be suspended for ninety days.
3. Upon a finding by the City of a third permit violation within any five-year period, the
permit shall be revoked.
9.10.100 Appeal.
A. Qualification. Ranking of Retailers and Cultivators. A decision of the City to not qualify an
applicant for a Commercial Cannabis Operator Permit, or to rank applicants for retail or
cultivation licenses, or to allow qualified applicants with the highest rankings the first
opportunity to apply for a Commercial Cannabis Operator Permit, shall be the final action of
the City and not appealable.
B. Non-renewal, Revocation or Suspension. A decision of the City to reject an application for
renewal, or to revoke or suspend a Commercial Cannabis Operator Permit, is appealable to the
City Manager. An appeal must be filed with the City Manager within ten working days after
the renewal has been denied, suspended or revoked. A decision of the City Manager or his or
her designee is appealable to the City Council in accordance with Chapter 1.20 of this Code.
C. Effect of Suspension. During a period of license suspension, the Commercial Cannabis
Business shall remove from public view, all cannabis and cannabis products, and shall not
conduct any Commercial Cannabis Activity.
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D. Revocation. Notice to State. Pursuant to Business and Profession Code Section 26200 (c), the
City Manager or his or her designee shall promptly notify the Bureau of Cannabis Control
within the Department of Consumer Affairs, upon City’s revocation of any local license,
permit, or authorization for a state licensee to engage in commercial cannabis activity within
the City.
9.10.110 Right to Occupy and to Use Property for Commercial Cannabis Activity.
As a condition precedent to the City’s issuance of a Commercial Cannabis Operator Permit
pursuant to this Chapter, any person intending to open and operate a Commercial Cannabis
Business shall provide evidence satisfactory to the City of the applicant’s legal right to occupy and
to use the proposed location for the proposed use, together with the approval of a use permit from
the City for cannabis activity at the location. In the event the proposed location is owned by or to
be leased from another person, the applicant for a permit under this Chapter shall provide a signed
and notarized statement from the property owner agreeing to the operation of a Commercial
Cannabis Business on the property.
9.10.120 Prohibition on Transfer of Commercial Cannabis Operator Permits.
A. Business Restriction to Location on Permit. It shall be unlawful for any person to transfer a
Commercial Cannabis Operator Permit to a location not specified on the permit, or to operate
a Commercial Cannabis Business at any place or location other than that identified on the
Commercial Cannabis Operator Permit issued pursuant to this Chapter.
B. Transfer or Assignment Prohibited. No person or entity shall encumber, mortgage, lien,
hypothecate, give, bequeath, sell, assign or transfer, by operation of law or otherwise, any
portion of the ownership or control of a Commercial Cannabis Business or a Commercial
Cannabis Operator Permit to any person who does not have a Commercial Cannabis Operator
Permit from the City prior to the effective date of any action described in this sen tence. The
Commercial Cannabis Operator Permit permittee proposing such an action shall:
1. Notify the City in writing of the proposed action, comply with applicable regulations
and provide such information as the City reasonably requests regarding the identity and
qualifications of persons involved, and pay all applicable fees and charges; and
2. Provide proof that the proposed lender, lienholder, recipient, heir, buyer, assignee,
transferee, or other potential recipient of any portion of the ownership or control, at the
time of the notice and effective date of the proposed action, is qualified by the City to
apply for a Commercial Cannabis Operator Permit and the proposed action is
conditioned on the City issuing to the person a new or amended Commercial Cannabis
Operator Permit.
3. Notify the city in writing within ten (10) calendar days of the action becoming final
with the names and contact information of the new persons involved, together with a
request that the City issue either a new or amended Commercial Cannabis Operator
Permit, as applicable.
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C. Assignment Null and Void. Any attempt to transfer, sell, assign, give, or lien, or any transfer,
sale, assignment, gift or lien, of a Commercial Cannabis Operator Permit issued pursuant to
this Chapter, by operation of law or otherwise, in violation of this chapter, is prohibited. Any
such action immediately voids, nullifies and terminates the Commercial Cannabis Operator
Permit, which shall be of no further force or effect.
9.10.130 Records and Reports.
A. City Access to Records. Subject to the Health Insurance Portability and Accountability Act
(HIPAA) regulations, each Commercial Cannabis Business shall allow City of San Luis
Obispo officials to have access to the Commercial Cannabis Business’s books, records,
accounts, and any and all data relevant to its permitted activities for the purpose of conducting
an audit, examination or inspection. Books, records, accounts, and any and all relevant data
will be produced no later than twenty-four (24) hours after receipt of the City’s request or
within a reasonable time as authorized in writing by the City.
B. Annual Audit. Each Commercial Cannabis Business shall file with the City Manager or his/her
designee an audit of its financial operations for the previous fiscal year, complete and certified
by an independent certified public accountant in accordance with generally accepted auditing
and accounting principles. The audit shall include but not be limited to a discussion, analysis,
and verification of each of the records required to be maintained pursuant to this Chapter. The
information contained in the audit shall be made available in standard electronic format which
shall be compatible with programs and software used by the City, and which can easily be
imported into either Excel, Access or any other contemporary software designated by the City
Manager.
C. Inventory Control system. All Commercial Cannabis Businesses shall maintain an inventory
control and reporting system that accurately documents the present location, amounts, and
descriptions of all cannabis and cannabis products for all stages of the growing and production
or manufacturing, laboratory testing and distribution processes until sold or distributed. All
Commercial Cannabis Businesses shall maintain records of all sales or transfers of cannabis
and cannabis products.
D. Employee Registry. Each owner and/or operator of a Commercial Cannabis Business shall
maintain a current register of the names and the contact information (including the name,
address, and telephone number) of all employees currently employed by the Commercial
Cannabis Business and shall disclose such register to any City of San Luis Obispo official upon
request.
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E. Reporting and Tracking of Product and of Gross Sales. Each Commercial Cannabis Business
shall have in place a point-of-sale tracking system to track and to report on all aspects of the
Commercial Cannabis Business including, but not limited to, such matters as cannabis
tracking, inventory data, and gross sales (by weight and by sale) and shall ensure that such
information is compatible with the City’s record-keeping systems. The system must have the
capability to produce historical transactional data for review by the City of San Luis Obispo.
All information provided to the City pursuant to this sub-Chapter shall be confidential and
shall not be disclosed, except as may otherwise be required under law.
F. Maintenance of Records. All records required by this Chapter shall be maintained by the
Commercial Cannabis Business for a period of not less than seven (7) years and shall otherwise
keep accurate records of all Commercial Cannabis Business activity and provide such records
for inspection consistent with this Code or any rules the City Council by resolution or
ordinance.
9.10.140 Inspection and Enforcement.
A. Unscheduled Inspection during Business Hours. The City Manager or his/her designee and any
other City of San Luis Obispo official or inspector charged with enforcing any provisions of
this Code, may enter a Commercial Cannabis Business at any time during the hours of
operation without notice for the purpose of inspecting the Commercial Cannabis Business for
compliance with the provisions of this Code, the terms and conditions of the Commercial
Cannabis Operator Permit or any other City permit or state license, including inspection of the
recordings and records maintained pursuant to this Chapter or the applicable provisions of
State law. The right to inspect under this inspection includes the right to copy recordings and
records.
B. Interference with Inspection. It is unlawful for any person who owns, operates, manages or is
employed by, or has any responsibility over the operation of, a Commercial Cannabis Business,
to refuse to allow, or to impede, obstruct, or interfere with, an inspection by the City, or the
City’s review or copying of recordings (including audio and video recordings) and records, or
to conceal, destroy, alter or falsify any recordings or records.
C. Obtaining Samples. The City Manager or his/her designee or any other person charged with
enforcing the provisions of this Chapter may enter the location of a Commercial Cannabis
Business at any time during the hours of operation and without notice to obtain samples of
cannabis and cannabis products to test for law enforcement and/or public safety purposes. Any
samples obtained by the City of San Luis Obispo shall be logged, recorded, and maintained in
accordance with City of San Luis Obispo Police Department standards for evidence. At all
other times, the City Manager or his/her designee may enter the location of a Commercial
Cannabis Business to obtain samples of cannabis upon reasonable notice, as otherwise
authorized by law or pursuant to a warrant.
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9.10.150 Outdoor Commercial Cannabis Cultivation and Activities Prohibited.
A. Outdoor Commercial Cultivation prohibited. Outdoor commercial cannabis cultivation,
including, but not limited to, cultivation in greenhouses, hoop structures, and by mixed light
(part daylight/part artificial light), is prohibited and unlawful. This section prohibits all outdoor
commercial cannabis cultivation, including cultivation for profit or not for profit cultivation,
and including commercial cultivation for adult recreational use or medicinal purposes. For
purposes of this section, outdoor cultivation of cannabis by cooperatives is prohibited. All
commercial cannabis cultivation shall be conducted only inside a fully enclosed structure by a
person or entity with a Commercial Cannabis Operator Permit, a City use permit, and
appropriate State license(s). See also Section 17.99.050 G 3 of this Code.
B. Outdoor Commercial Cannabis Activities Prohibited. Outdoor storage, harvesting, drying,
processing, or manufacturing of commercial cannabis or cannabis products is prohibited and
unlawful.
9.10.160 Indemnification, Insurance, Reimbursement, Consent.
As a condition of approval of any Commercial Cannabis Operator Permit issued pursuant to this
Chapter, the permittee shall, at a minimum:
A. Execute an agreement to protect, indemnify, defend (at its sole cost and expense with counsel
approved by City), and hold the City of San Luis Obispo and its officers, employees, attorneys,
representatives, and agents harmless from and against any and all claims, demands, losses,
damages, injuries, costs, expenses (including attorneys’ fees) fines, penalties, or liabilities
arising from, related to or associated with: the issuance of a Commercial Cannabis Operator
Permit or use permit; the permitting or approving the operation of a Commercial Cannabis
Activity; the collection of any fees, taxes, or charges from a Commercial Cannabis Business;
the Commercial Cannabis Business’s or any of its owners’, operators’, managers’, employees,
or agents’ violation of any federal, state or local laws; the City’s suspension, revocation or
refusal to renew the Commercial Cannabis Operator Permit.
B. Maintain insurance with standard City coverages and limits, but with additional conditions
thereon deemed necessary by the City Attorney.
C. Reimburse the City of San Luis Obispo for any and all costs, expenses, attorney fees, fines,
penalties and court costs that the City of San Luis Obispo may be required to pay as a result of
any legal challenge related to the City’s approval of a Commercial Cannabis Operator Permit
pursuant to this Chapter or any other City permit or the City of San Luis Obispo’s approval of
the operation of a Commercial Cannabis Activity. The City of San Luis Obispo may, at its
sole discretion, participate at its own expense in the defense of any such action, but such
participation shall not relieve the obligations imposed under this Chapter.
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D. Consent to unscheduled inspections, production of records and recordings, and obtaining of
samples of cannabis and cannabis products by authorized City officials during normal
operating hours as provided in this chapter.
9.10.170 Compliance with Laws.
The Commercial Cannabis Business shall operate all times in compliance with all applicable state
and local laws, regulations, and any specific, additional operating procedures or requirements
which may be imposed as conditions of approval of the Commercial Cannabis Operator Permit or
use permit or state license(s). Nothing in this Chapter shall be construed as authorizing any action
which violates state law or local law with respect to the operation of a Commercial Cannabis
Activity
9.10.180 Permit Violation.
Compliance with all local and state cannabis-related laws shall be a condition of a City
Commercial Cannabis Operator Permit and it shall be a violation of a Commercial Cannabis
Operator Permit for a permittee or his or her agents or employees to violate any local or state -
cannabis-related law.
9.10.190 Permit Compliance Monitoring.
Compliance with this chapter shall be monitored by the San Luis Obispo police department, Code
Enforcement staff and/or any other duly authorized agent of the City. Any compliance checks
pursuant to this chapter shall be in addition to any under any other ordinances, regulations or
permits. At least four compliance checks of each cannabis retailer shall be conducted during each
twelve-month period. At least two compliance checks of each commercial cannabis business other
than a retailer shall be conducted during each twelve-month period. The cost of compliance
monitoring shall be incorporated into the annual renewal fee.
9.10.200 Permit Holder Responsible for Violations By Employees or Agents.
The responsible person and any entity to whom a Commercial Cannabis Operator Permit is issued
pursuant to this Chapter shall be responsible for all violations of the regulations and ordinances of
the City of San Luis Obispo, committed by the permittee, any employee or agent of the permittee,
which violations occur in or about the premises of the Commercial Cannabis Business, even if the
responsible person is not present. Violations by an employee or agent may result in the termination
or non-renewal of the permit by City.
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9.10.210 Consumption or Use Prohibited On-site and in Public/Cannabis Event
Prohibited
A. It is unlawful for any person or entity:
1. To sell, give, exchange, dispense or distribute cannabis or cannabis products for on-site
consumption, use or sampling on any business premises; or
2. To consume or use cannabis or cannabis products, whether by smoking, vaping, inhaling,
eating, drinking or any other means:
a. in, on or about the premises of any Commercial Cannabis Business;
b. in, on or about any publicly owned or operated property; any place open to, or
accessible by the public; any place smoking is prohibited; or any place visible from
any public place with normal unaided vision.
c. in on or about any other business, club, cooperative or commercial event, regardless
if open to the public or only to members, ticket holders or event invitees;
d. any location where an entry or other fee is charged to attendees or to the host or where
a thing of value or consideration is received or exchanged, directly or indirectly, for
or related to the provision of cannabis.
B. It is unlawful for any person to conduct a Cannabis Event in the City.
9.10.220 Concurrent Alcohol or Tobacco Sales or Service Prohibited.
A. No person shall dispense, serve, store, give away or consume, or cause or permit the sale,
dispensing, serving, giving away or consumption of alcoholic beverages or tobacco in or on
the premises of a Commercial Cannabis Business.
B. No person shall conduct any Commercial Cannabis Activity at any location where alcohol is
sold or served.
9.10.230 Minors
A. Minors shall not be allowed on the premises of a commercial Cannabis Business having either
an “A” or “M” license, or both, even if accompanied by a parent or guardian.
B. No person under 21 years of age shall be allowed on the premises of a Commercial Cannabis
Business having either an “A” or “M” license or both.
C. Every entrance to an “A” or “M” licensed Commercial Cannabis Business shall be clearly and
legibly posted with the following notice: “ENTRY ONTO THESE PREMISES BY PERSONS
UNDER 21 YEARS OF AGE IS PROHIBITED BY LAW. VALID PHOTO ID REQUIRED.”
Each letter of the notice must be at least two inches high and clearly visible.
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D. No person, business, or other entity conducting a Commercial Cannabis Activity with either
an “A” or “M’ state license shall employ any person who is not at least twenty-one (21) years
of age.
9.10.240 Sale of Cannabis Products or Cannabis Accessories by Vending Machine
prohibited
A. No person shall locate, install, keep, maintain or use, or permit the location, installation,
keeping, maintenance or use on his, her or its premises of any cannabis vending machine used
or intended to be used for the purpose of selling any cannabis products or cannabis accessories
therefrom.
B. No person, business, or other entity shall sell, offer for sale, or display for sale any cannabis
product by means of a self-service display or vending machine. All cannabis products shall be
offered for sale exclusively by means of vendor/employee assistance.
C. “Vending machine” means any electronic or mechanical device or appliance the operation of
which depends upon the insertion of money, whether in coin or paper bill, or debit or credit
card, or other thing representative of value, which device or appliance dispenses or releases
cannabis, cannabis product(s) and/or cannabis accessories.
9.10.250 Security and Public Safety Measures.
A. The City Manager or his/her designee(s) is authorized to promulgate all regulations necessary
to implement the requirements and fulfill the purposes and policies of this Chapter, including
but not limited to enforcement, background checks for applicants, approval and enforcement
of a Commercial Cannabis Activity security plan, including audio and video recordings of
operations, and verification of compliance.
B. Every Commercial Cannabis Activity and every Commercial Cannabis Activity shall have a
security plan approved by the Chief of Police or designee prior to issuance of a City
Commercial Cannabis Operator Permit.
C. Hours of Operation.
a. Retail - Storefront. Retail-Storefront Commercial Cannabis Business shall not operate
between the hours of 8 PM and 9 AM.
b. Retail-Non-Storefront (Delivery Services). Retail-Non-Storefront (Delivery Services)
Commercial Cannabis Business shall not operate between the hours of 10 PM and 6 AM.
c. Commercial Other than Retail. All Commercial Cannabis Activity other than Retail is
prohibited between the hours of 10 PM and 7 AM.
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9.10.260 Limitations on City’s Liability.
The City shall not be liable for issuing, or failing or refusing to issue, suspending, revoking or
failing to renew a Commercial Cannabis Operator Permit pursuant to this Chapter or otherwise
approving or disapproving the operation of any Commercial Cannabis Business pursuant to this
Chapter.
9.10.270 Fees Deemed Debt to City.
The amount of any fee, cost or charge imposed pursuant to this Chapter shall be deemed a debt to
the City of San Luis Obispo that is recoverable in any court of competent jurisdiction.
9.10.280 Violation and Penalties.
A. Misdemeanor. Each violation of the provisions of this chapter shall be a misdemeanor and is
punishable as provided in Section 1.12.030 of this code; provided, that where the City attorney
determines that such action would be in the interest of justice, he/she may specify in the
accusatory pleading that the offense shall be an infraction. Any violation of the provisions of
this chapter by any person is also subject to administrative fines as provided in Chapter 1.24
of this code.
B. Infraction Violation. Where the City attorney determines that, in the interest of justice, a
violation of this chapter is an infraction, such infraction is punishable by a fine not exceeding
one hundred dollars for a first violation, a fine not exceeding two hundred dollars for a second
violation of the same provision within one year, and a fine not exceeding five hundred dollars
for each additional infraction violation of the same provision within one year.
C. The fine amounts set forth above may be modified, from time to time, by City Council
resolution. In no event shall such fine amounts exceed the amounts authorized by state law.
D. If the City of San Luis Obispo finds, based on substantial record evidence, that any person has
engaged in Commercial Cannabis Activity in violation of Chapter 9.10, the City shall fine that
person as follows. Each day that person without a Commercial Cannabis Operator Permit
offers cannabis or cannabis products for sale or exchange shall constitute a separate violation
and assessed a fine in accordance with Sections 1.12.080 and 1.24.070(A) of this code.
E. Each person committing, causing, or maintaining a violation of this chapter or failing to
comply with the requirements set forth herein shall be deemed guilty of a separate offense for
each and every day during any portion of which any violation of any provision of this chapter
is committed, continued, maintained, or permitted by such person and shall be punishable
accordingly.
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F. The violation of any provision of this chapter shall be and is hereby declared to be a public
nuisance and contrary to the public interest. Any public nuisance under this chapter may, at
the City’s discretion, be abated by the City by civil process by means of a restraining order,
preliminary or permanent injunction or in any manner provided by law for the abatement of
such nuisance. The City shall also be entitled to recover its full reasonable costs of abatement.
The prevailing party in any proceeding associated with the abatement of a public nuisance shall
be entitled to recovery of attorneys’ fees incurred in any such proceeding if the City has elected
at the initiation of that individual action or proceeding to seek recovery of its own attorneys’
fees.
G. In lieu of issuing a criminal citation, the City may issue an administrative citation to any person
responsible for committing, causing or maintaining a violation of this chapter. Nothing in this
section shall preclude the City from also issuing a citation upon the occurrence of the same
offense on a separate day.
H. The remedies set forth in this chapter are cumulative and in addition to any and all other l
remedies available at law or equity, whether set forth elsewhere in the San Luis Obispo
Municipal Code, or in state or federal laws, regulations, or case law. In addition to other
remedies provided by this chapter or by other law, any violation of this chapter may be
remedied by a civil action brought by the City attorney, including but not limited to
administrative or judicial nuisance abatement proceedings, civil or criminal code enforcement
proceedings, and suits for injunctive relief. The remedies provided by this chapter are
cumulative and in addition to any other remedies available at law or in equity.
9.10.290 Severability.
If any section, subsection, subdivision, paragraph, sentence, clause or phrase of this chapter is for
any reason held to be invalid or unenforceable, such invalidity or unenforceability shall not affect
the validity or enforceability of the remaining sections, subsections, subdivisions, paragraphs,
sentences, clauses or phrases of this chapter or the rules adopted hereby. The City Council of the
City of San Luis Obispo hereby declares that it would have adopted each section, subsection,
subdivision, paragraph, sentence, clause or phrase hereof, irrespective of the fact that any one or
more other sections, subdivisions, paragraphs, sentences, clauses or phrases hereof be declared
invalid or unenforceable.
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