Loading...
The URL can be used to link to this page
Your browser does not support the video tag.
Home
My WebLink
About
02-04-2020 Agenda Packet
Tuesday, February 4, 2020 4:30 PM CLOSED SESSION Council Hearing Room 990 Palm Street San Luis Obispo Page 1 CALL TO ORDER: Mayor Heidi Harmon ROLL CALL: Council Members Carlyn Christianson, Andy Pease, Erica A. Stewart, Vice Mayor Aaron Gomez and Mayor Heidi Harmon PUBLIC COMMENT ON CLOSED SESSION ITEMS CLOSED SESSION A.CONFERENCE WITH LEGAL COUNSEL – EXISTING LITIGATION Paragraph (1) of subdivision (d) of Government Code § 54956.9; Name of case: San Luis Obispo Wellness Center, Corporation v. City of San Luis Obispo; San Luis Obispo Superior Court Case No. 20CV-0035 B.THREAT TO PUBLIC SERVICES OR FACILITIES Pursuant to Government Code § 54957(a) Consultation with: San Luis Obispo Police Department, Police Chief and Police Captains Adjourn to the Regular City Council Meeting scheduled for Tuesday, February 4, 2020 at 6:00 p.m., in the Council Chamber, 990 Palm Street, San Luis Obispo. Page intentionally left blank. Tuesday, February 4, 2020 6:00 PM REGULAR MEETING Council Chamber 990 Palm Street CALL TO ORDER: Mayor Heidi Harmon ROLL CALL: Council Members Carlyn Christianson, Andy Pease, Erica A. Stewart, Vice Mayor Aaron Gomez and Mayor Heidi Harmon PLEDGE OF ALLEGIANCE: Council Member Erica A. Stewart 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. 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. 1.WAIVE READING IN FULL OF ALL RESOLUTIONS AND ORDINANCES (PURRINGTON) Recommendation: Waive reading of all resolutions and ordinances as appropriate. San Luis Obispo City Council Agenda February 4, 2020 Page 3 2.MINUTES REVIEW - JANUARY 14, 2020 CITY COUNCIL MEETING (PURRINGTON) Recommendation: Approve the minutes of the City Council meeting held on January 14, 2020. 3.INTRODUCE AN ORDINANCE AMENDING SECTIONS 13.04.060 AND 13.04.110 OF MUNICIPAL CODE CHAPTER 13.04 (WATER SERVICE) RELATING TO DISCONTINUATION OF RESIDENTIAL WATER SERVICES FOR NON- PAYMENT (FLOYD / THOMPSON) Recommendation: 1.Introduce an Ordinance entitled, “An Ordinance of the City Council of the City of San Luis Obispo, California, amending Sections 13.04.060 and 13.04.110 of the San Luis Obispo Municipal Code Chapter 13.04 – Water Service” to comply with Senate Bill 998; and 2.Adopt a Resolution entitled, “A Resolution of the City Council of the City of San Luis Obispo, California, adopting a Discontinuation of Residential Water Services for Non- Payment Policy;” and 3.Adopt a Resolution entitled, “A Resolution of the City Council of the City of San Luis Obispo, California, adopting a Reconnection Fee for households demonstrating income less than two hundred percent of the Federal Poverty Line.” 4.AUTHORIZATION TO SUBMIT 2019-20 LOW CARBON TRANSIT OPERATIONS PROGRAM GRANT APPLICATIONS (STANWYCK / ANGUIANO) Recommendation: Adopt a Resolution entitled, “A Resolution of the City Council of the City of San Luis Obispo, California, authorizing the City Manager or their designee, to file, execute and fulfill any related Low Carbon Transportation Operations Program Grant Applications, Certifications, Assurances, Forms, Agreements, and associated documents on behalf of the City” for Transit Capital Projects. 5.SECOND READING OF ORDINANCE NO. 1675 (2020 SERIES) AMENDING MUNICIPAL CODE CHAPTER 5.20 – TAXICABS (CANTRELL / AMOROSO) Recommendation: Adopt Ordinance No. 1675 (2020 Series) entitled, “An Ordinance of the City Council of the City of San Luis Obispo, California, amending Municipal Code Chapter 5.20 regarding Taxicabs” to be complaint with new laws enacted by the California State Legisl ature in Assembly Bill 939. San Luis Obispo City Council Agenda February 4, 2020 Page 4 6.SECOND READING OF ORDINANCE NO. 1674 (2020 SERIES) AMENDING DESIGNATED PORTIONS OF THE CITY OF SAN LUIS OBISPO MUNICIPAL CODE SECTION 3.04.020, SECTION 3.04.080, SECTION 3.04.090, SECTION 3.04.100 AND SECTION 3.04.130 OF MUNICIPAL CODE CHAPTER 3.04 – TRANSIENT OCCUPANCY TAX (ELKE / HARNETT) Recommendation: Adopt Ordinance No. 1674 (2020 Series) entitled, “An Ordinance of the City Council of the City of San Luis Obispo, California, amending Section 3.04.020, Section 3.04.080, Section 3.04.090, Section 3.04.100 and Section 3.04.130 of Municipal Code Title 3.04 – Transient Occupancy Tax.” 7.SECOND READING OF ORDINANCE NO. 1676 (2020 SERIES) AMENDING CHAPTER 8.14 (HEALTH & SAFETY) FOR TOBACCO RETAILER LICENSES (HERMANN / BETZ / BAILEY) Recommendation: Adopt Ordinance No. 1676 (2020 Series) entitled, “An Ordinance of the City Council of the City of San Luis Obispo, California, amending the Municipal Code Chapter 8.14 (Health and Safety) for Tobacco Retailer License” prohibiting the sale of electronic cigarette products that have not received premarket review by the U.S. Food and Drug Administration. PUBLIC HEARING AND BUSINESS ITEMS 8.PUBLIC HEARING - INTRODUCE AN ORDINANCE AMENDING TITLE 17 (ZONING REGULATIONS) OF THE MUNICIPAL CODE ASSOCIATED WITH ACCESSORY DWELLING UNIT AND JUNIOR ACCESSORY DWELLING UNIT (CODRON / VAN LEEUWEN – 60 MINUTES) Recommendation: 1.Introduce an Ordinance entitled, “An Ordinance of the City Council of the City of San Luis Obispo, California, to amending Title 17 (Zoning Regulations) of the Municipal Code associated with Accessory Dwelling Units and introducing Junior Accessory Dwelling Units.” 2.Adopt an Emergency Ordinance entitled, “An Ordinance of the City Council of the City of San Luis Obispo, California, to amending Title 17 (Zoning Regulations) of the Municipal Code associated with Accessory Dwelling Units and introducing Junior Accessory Dwelling Units” approving amendments to Title 17, that will be in effect until April 27, 2020. San Luis Obispo City Council Agenda February 4, 2020 Page 5 9. COUNCIL COMPENSATION COMMITTEE RECOMMENDATIONS (HERMANN / IRONS / PURRINGTON / ROLTGEN – 60 MINUTES) Recommendation: Adopt a Resolution entitled, “A Resolution of the City Council of the City of San Luis Obispo, California, setting new salaries for the Mayor and Council Members.” 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) ADJOURNMENT The next Regular City Council Meeting scheduled for Tuesday, February 18, 2020 at 6:00 p.m., in the 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 meetings accessible to the public. Upon request, this agenda will be made available in appropriate alternative formats to persons with disabilities. Any person with a disability who requires a modification or accommodation in order to participate in a meeting should direct such request to the City Clerk’s Office at (805) 781-7100 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. CITY OF SAN LUIS OBISPO AFFIDAVIT OF POSTING AGENDA STATE OF CALIFORNIA ) COUNTY OF SAN LUIS OBISPO ) SS. CITY OF SAN LUIS OBISPO ) AFFIDAVIT OF POSTING – CITY COUNCIL REGULAR AGENDA OF: FEBRUARY 4, 2020 I, Megan Wilbanks, declare as follows: That I am the Deputy City Clerk for the City of San Luis Obispo; that a copy of the above referenced meeting agenda was posted on the bulletin board outside City Hall, 990 Palm Street, San Luis Obispo, California, and on the City’s website www.slocity.org at 1/28/2020 2:25 PM. I declare under the penalty of perjury that the foregoing is true and correct. ________________________ Megan Wilbanks Deputy City Clerk RECEIVED FEB O 3 20?0 1010 Marsh St., San Luis Obispo, CA 93401 (805) 546-8208 + FAX (805) 546-8641 SLO CITY CLERK PROOF OF PUBLICATION (2015.5 C.C.P.) STATE OF CALIFORNIA, County of San Luis Obispo, I am a citizen of the United States and a resident of the county aforesaid; I am over the age of eighteen years, and not a purty interested in the above entitled matter. I am the principal clerk of the printer of the New Times, a newspaper of general circulation, printed and published weekly in the City of San Luis Obispo , County of San Luis Obispo, and which lias been adjudged a newspaper of general circulation by the Superior Court of the County of San Luis Obispo, State of California, under the date of February 5, 1993, Case number CY72789: that notice of which the annexed is a printed copy (set in type not smaller than nonpareil), has been published in each regular and entire issue of said newspaper and not in any supplement thereof on the following dates, lo-wit: Patricia Horton, New Times Legals ,\.1"1in ,-.,_ P.:mm.11/•NTM(i A,lmin/NTM(i Olliccll.HJSlt-:C:SSIPublic Nt>lice);/J>mor of Puh Proof of Publication of ORDINANCE NO. 1674 (2020 SERIES) An Ordinance of the City Council of the Ci~ of San Luis Obispo, California, amending Sections 3.04.020, Section 3.04.080, Section 3,04.090, Section 3.04.100 and Section 3.04.130 of Municipal Coda Title 3.04 -Transient Occupancv Tax NOTICE IS Ha!EBY GIVEN thet the Oity Council of the City of Sen Luis Obispo, California, at its Rescheduled Regular Meeting of January 14, 2020, rntroduced 1he above titled ordinance upon a motion by Council Member Pease, SQcond by Council Member Christianson , and olHhe following roll ca ll vote: AYES: Council Member Christianson, Pease, Stewart, Vice Mayor Gomez and Mayor Harmon NOES: None Ordina nce No . 1874 (2020 Series) -An Ordinance amendment to the Transient Occupancy Tax code that revises the action to colfect applicable tax assessments and clarifies the process to appeal. A full and complete copy of the aforementioned Ordinance is available for inspection and copy in Jhe City Clerk's .Office, located at 990 Palm Street, · San Luis Obispo, California , or you may call (805} 781-7100 for more. information. NOTICE IS HEREBY FURTHER GIVEN that the City Council ofthe City of San Lois Obispo wlll consider adoptin_g the eforar,nentioned Ordinance at its Regular Meeting of Februarv 4, 2020 at 6:00 p.m .. which will be held In the Councll Chamber, located at 990 Palm Street, San Luis Obispo, California . Teresa Purrington City Clerk January 30, 2020 RECEIVED FEB O 3 2020 SLO CITY CLE R}< 1010 Marsh St., San Luis Obispo, CA 93401 (805) 546-8208 + FAX (805) 546-8641 PROOF OF PUBLICATION (2015.5 C.C.P.) STATE OF CALIFORNIA , County of San Luis Obispo. I nm a citizen of the United States and a resident of the county aforesaid; I am over the age of eighteen years, and not a party interested in the above entitled matter. I am the principal clerk of the printer of the New Times, a newspaper of general circulation, printed and published weekly in the City of San Luis Obispo, County of San Luis Obispo, and which has been acljudged a newspaper of general circulation by the Superior Court of the County of San Lui~ Obispo , State of California, under the date of February 5, 1993, Case number C\'72789: that notice of which the annexed is a printed copy (set in type not smaller than nonpareil). has been published in each regular and entire issue of said newspaper and not in any supplement thereof on the following dates, to-wit: Patricia Horton, New Times Legals Ad111111 & P,:r~1>11ul 1•NT:vlfi Atin1irvN TMCi OI ficcl[HJSfr,.,:FSS/P11biic No,icc~·'Proof of Puh Proof of Publication of ORDINANCE NO. 1675 (2020 SERIES) An Ordinance of the City Council of the City of San Luis Obispo, California, amending Municipal Code Title 5.20 regarding Taxicabs NOTICE IS HEREBY GIVEN that the City Council of the City of San Luis Obispo, California, at its Regular Meeting of January 21, 2020, introduced the above titled ordinance upon a motion by Council Member Pease, second by Council Member Christianson, and on the following roll call vote: AYES: Council Member Christianson, Pease, Stewart, Vjce Mayor Gomez NOES: None ABSENT: Mayor Harmon ' Drd!o anco No. )875 (2020 Seriesl -An Ordinance amending Municipal Code Section 5.20 {Taxicabs) to be complaint with new laws enacted by the California State Legislature in Assembly Bill 939, which added additional Operating Regulations for taxicabs operating in the City ot Sen Luis Obispo. · , Afull and complete copy of the aforementioned Ordinance is available for inspection and copy in the City Clerk's Office, located at 990 Palm Street, San Luis Obispo, California, or you may call (805) 781-7100 for more information. NOTICE IS HEREBY FURTHER GIVEN that the City Council of the City of San Luis Obispo will consider adopting the aforementioned Ordinance at its Regular Meeting of February 4, 2020 at 6:00 p.m., which will be held in the Council Chamber, located at 990 Palm Street, San Luis Obispo, California. Teresa Purrington City Clerk January 30, 2020 RECEIVED FEB O 3 2020 S LO CITY CLERK 1010 Marsh St., San Luis Obispo, CA 93401 (805) 546-8208 + FAX (805) 546-8641 PROOF OF PUBLICATION (2015.5 C.C.P.) STATE OF CALIFORNIA, County of San Luis Obispo. T am a citizen of the United States a nd a resident of the county aforesaid; I am over the :ige of eig ht een years, and not a party interested in tile above en titled matter. I am the principal c krk of the printer of the New Times , a newspaper of general circulation, printed and published weekly in the City of San Luis Obispo, County of San Luis Obispo, and which ha s been adjudged a newspaper of general circulation by the Superior Court of the County of San Luis Obispo, State of California, under the d a te of February 5, 1993, Case number CV72789: that notice of which the a nnexed is a printed copy (set in type not smaller than nonpa reil). has been published in each regular and entire issue of said newspaper and not in any s upplement thereof on the following dates, lo -wit: in the year 2020 . I ce1tify (or declare) under the the penalty of perj ury that the foregoing is true and correct. Dated at San Luis Obis po, California, this day 30 of -$..no~,2020 . ?~ /Ir//~ Patricia Horton, New Times Legals ,\dmin & P,m,r.al/•NTM(i ,\dm!n/NTMC; 011iccl[!fJS[NES.'ifJ>u hli c No1ires1P ro1,f()I l'uh Proof of Publication of ORDINANCE NO. 1676 (2020 SERIES) An Ordinance of the City Council of the City of San Luis Obispo, California, amending the Municipal Code Health And Safety (Chapter 8.141 Tobacco Retailer License NOTICE IS HEREBY GIVEN that the City Council of the City of San Luis Obispo, California, at its Regular Meeting of January 21, 2020, introduced the above titled ordinance upon a motion by Council Member Christianson, second by Council Member Pease, end on the following roll call vote: AYES: Council Member Christianson, Pease, Stewart. Vice Mayor Gomez NOES: None ABSENT: Mayor Harmon DrdinnnceNo, ]676 (2020 Se rles l-An Ordinance amending Chapter 8.14 (Tobacco Retailer Licensesl of the San Luis Obispo Municipal Code to prohibit the sale of electronic cigarette products that have-not received premarket review by the Food & Drug Administration (FDA). A full and complete copy of the aforementioned Ordinance is available for inspection and copy in the City Clerk's Office, located at 990 Palm Street, San Luis Obispo, California, or you may call f805l 781-7100for more information. NOTICE IS HEREBY FURTHER GIVEN that the City Council of the City of San Luis Obispo will consider adopting the aforementioned Ordinance at its Regular Meeting of February 4, 2020 at 6:00 p.m., which will be held in the Council Chamber, located at 990 Palm Street, San Luis Obispo, California. Teresa Purrington City·Clerk January 30, 2020 Page intentionally left blank. Tuesday, January 14, 2020 Rescheduled Regular Meeting of the City Council CALL TO ORDER A Rescheduled Regular Meeting of the San Luis Obispo City Council was called to order on Tuesday, January 14, 2020 at 4:00 p.m. in the Council Hearing Room, located at 990 Palm Street, San Luis Obispo, California, by Mayor Harmon. ROLL CALL Council Members Present: Council Members Carlyn Christianson, Andy Pease, Erica A. Stewart, Vice Mayor Aaron Gomez, and Mayor Heidi Harmon. Absent: None City Staff Present: Derek Johnson, 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 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 Packet Page 1 Item 2 San Luis Obispo City Council Minutes of January 14, 2020 Page 2 B: 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: Two; Initiation of litigation pursuant to paragraph (4) of subdivision (d) of Section 54956.9: No. of potential cases: Two. 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: Dispute between the City and the owner of real property located at 3595 Sueldo regarding a previously unaccepted offer to dedicate right of way pursuant to the Subdivision Map Act, Tract 703 as recorded in Book 10 of Maps at Page 50 on October 31, 1980, an d validity of acceptance of right of way for public road purposes; and a related assertion of liability by the owner of an adjacent property (Sullivan, Tentative Tract 3009/Minor Subdivision SLO 17- 0107) against the City for unspecified damages allegedly resulting from the unaccepted offer. Correspondence regarding these issues is available for review in the City Clerk’s Office located at 990 Palm Street. C: 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 demanded 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. The deadline for the City Council to adopt a resolution to this effect would have been the end of December, but on November 26, 2019 a Standstill Agreement was entered into extending the deadline to January 31, 2020. If a resolution has not been adopted by the January 31 deadline, then Mr. Goodman asserts 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. Packet Page 2 Item 2 San Luis Obispo City Council Minutes of January 14, 2020 Page 3 D: 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: Two. 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: On September 3, 2019, the City Council adopted the Clean Energy Choice Program with the second reading of the related ordinances planned for the September 17, 2019, Council meeting. On September 13, 2019, the City received correspondence from legal counsel representing the Utility Workers Union of America Local 132 alleging violations of conflict-of-interest rules related to the ordinances, which was followed by notification of a formal complaint being filed with the California Fair Political Practices Commission (“FPPC”) against Councilmember Pease. The September 13, 2019, letter is on file with the City Clerk. On September 20, 2019, the City requested formal advice from the FPPC on behalf of Councilmember Pease and a majority of the City Council regarding the application of the commission’s statutes, rules and regulations concerning the City’s adoption of the Clean Energy Choice Program. On October 12, 2019, the City was notified that the FPPC would not be providing advice as requested. On October 28, 2019, the City requested formal advice from the FPPC on behalf of just a majority of the City Council regarding the application of the commission’s statutes, rules and regulations concerning the City’s adoption of the Clean Energy Choice Program. On November 14, 2019, the FPPC issued a formal letter declining to provide advice as requested. That November 14, 2019, letter is on file with the City Clerk. Additionally, the City has received correspondence dated October 1, 2019, from Saro G. Rizzo, Attorney at Law, expressing concerns with the City’s Clean Energy Choice Program ordinances. The October 1, 2019 letter is on file with the City Clerk. All letters on file are available for review in the City Clerk’s Office located at 990 Palm Street. ADJOURN AT 5:50 P.M. TO THE REGULAR MEETING OF TUESDAY, JANUARY 14, 2020 IN THE COUNCIL CHAMBER, 990 PALM STREET, SAN LUIS OBISPO, CALIFORNIA. Packet Page 3 Item 2 San Luis Obispo City Council Minutes of January 14, 2020 Page 4 CALL TO ORDER A Regular Rescheduled Meeting of the San Luis Obispo City Council was called to order on Tuesday, January 14, 2020 at 6:00 p.m. in the Council Chamber, located at 990 Palm Street, San Luis Obispo, California, by Mayor Harmon. ROLL CALL Council Members Present: Council Members Carlyn Christianson, Andy Pease, Erica A. Stewart, Vice Mayor Aaron Gomez, and Mayor Heidi Harmon. Council Members Absent: None City Staff Present: Derek Johnson, 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 Gomez led the Pledge of Allegiance. CITY ATTORNEY REPORT ON CLOSED SESSION City Attorney Dietrick reported the following actions taken at Closed Session: A. CONFERENCE WITH LABOR NEGOTIATORS - No reportable action taken. B. CONFERENCE WITH LEGAL COUNSEL — ANTICIPATED LITIGATION (Sueldo Right of Way dispute); Council considered a settlement offer from the Maino Family Trust and provided unanimous direction to staff to reject the settlement offer; council provided additional direction regarding resolution of the dispute. No other reportable action was taken. C. CONFERENCE WITH LEGAL COUNSEL — ANTICIPATED LITIGATION (CVRA) Council received an extension of time for the demand for district elections extended by potential plaintiffs’ legal counsel and unanimously accepted that extension, with direction to staff to proceed with City efforts to enhance inclusivity in the City’s electoral processes, including the council compensation committee process and consideration of alternatives other than districting to the city’s current at large election process. No further reportable action was taken. D. CONFERENCE WITH LEGAL COUNSEL — ANTICIPATED LITIGATION - No reportable action was taken. (Council Member Pease recused herself from this item pending FPPC enforcement action.) Packet Page 4 Item 2 San Luis Obispo City Council Minutes of January 14, 2020 Page 5 PRESENTATIONS 1. PRESENTATION FROM THE COUNTY OF SAN LUIS OBISPO REGARDING THE 2020 CENSUS Kristin Erikson gave a presentation regarding the 2020 Census. APPOINTMENTS 2. COUNCIL LIAISON SUBCOMMITTEE ASSIGNMENTS 2020 City Clerk Purrington presented the contents of the report. Public Comment: None. ---End of Public Comment--- ACTION: MOTION BY COUNCIL MEMBER CHRISTIANSON, SECOND BY COUNCIL MEMBER PEASE, CARRIED 5-0 to approve Council Liaison Subcommittee assignments for the calendar year of 2020. PUBLIC COMMENT ON ITEMS NOT ON THE AGENDA Jeffery Specht Sabrina Slusser Dane Senser Riley Manford Nick Regalia Don Hedrick Courtney Kienow, Cal Poly America Carroll Abby Landis Cameron Adams Bonnie DeSantos Steve Barasch ---End of Public Comment--- CONSENT AGENDA ACTION: MOTION BY COUNCIL MEMBER PEASE, SECOND BY COUNCIL MEMBER CHRISTIANSON, CARRIED 5-0 to approve Consent Calendar Items 3 thru 9. Public Comment: Rob Davidson – Item 6 John Smigelski – Item 6 ---End of Public Comment--- Packet Page 5 Item 2 San Luis Obispo City Council Minutes of January 14, 2020 Page 6 3. WAIVE READING IN FULL OF ALL RESOLUTIONS AND ORDINANCES CARRIED 5-0, to waive reading of all resolutions and ordinances as appropriate. 4. MINUTES REVIEW - DECEMBER 3, 2019 CITY COUNCIL MEETING CARRIED 5-0, to approve the minutes of the City Council meeting held on December 3, 2019. 5. 2019 WATER RESOURCES STATUS REPORT CARRIED 5-0, to receive and file the City’s 2019 Water Resources Status Report. 6. LAGUNA LAKE 2020 MAINTENANCE DREDGING PROJECT, SPECIFICATION NO. 91392 CARRIED 5-0, to 1. Approve the Project Plans and Special Provisions for the Laguna Lake 2020 Maintenance Dredging Project; and, 2. Authorize staff to advertise for bids; and, 3. Authorize the City Manager to award the construction contract if the lowest responsible bid is within the Engineer’s Estimate of $380,000. 7. REQUEST FOR PROPOSAL FOR MARKETING SERVICES FOR THE SAN LUIS OBISPO TOURISM BUSINESS IMPROVEMENT DISTRICT CARRIED 5-0, to 1. Authorize the issuance of a Request for Proposals (RFP) for contract services for tourism marketing services; and 2. Authorize the City Manager to award the contract if proposals are within the project budget of $1,000,000. 8. SECOND READING OF ORDINANCE NO. 1673 (2019 SERIES) AMENDING SECTION 9.10.070 CARRIED 5-0, to adopt Ordinance No. 1673 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” clarifying unsuccessful applicants’ ability to apply during separate application periods in the same year. 9. AUTHORIZE AIR POLLUTION CONTROL DISTRICT GRANT APPLICATION TO SUPPORT ELECTRIC VEHICLE CHARGERS AT CITY HALL CARRIED 5-0, to 1. Authorize the City Manager, or his designee, to execute and file grant applications with the Air Pollution Control District (APCD) for electric vehicle charging and to execute any related grant applications, certifications, assurances, forms, agreements, and associated documents on behalf of the City; and 2. Authorize the City Manager to approve a Budget Amendment Request to increase the budget reflecting these grant funds, if awarded. Packet Page 6 Item 2 San Luis Obispo City Council Minutes of January 14, 2020 Page 7 PUBLIC HEARING ITEMS AND BUSINESS ITEMS 10. PUBLIC HEARING - EXPANSION OF THE EXISTING MONTEREY HEIGHTS RESIDENTIAL PARKING PERMIT DISTRICT AND THE ESTABLISHMENT OF THE DANA STREET RESIDENTIAL PARKING PERMIT DISTRICT Council Member Pease recused herself as her business is located within 300 feet of the proposed Dana Street parking district. Council Member Pease left the dais at 7:44 PM. Deputy Director Public Works Tim Bochum and Parking Services Supervisor Alex Fuchs provided an in-depth staff report and responded to Council questions. Public Comments: Kylie Clark Anne M. Brown Madison Janas Donna Duerk Steve Barasch Odile Ayral Ursela Bishop Don Hedrick Rob Moore Christian Ramirez Marissa Hiji ---End of Public Comment--- RECESS Council recessed at 8:15 p.m. and reconvened at 8:27 p.m., with all Council Members present except Council Member Pease. ACTION: MOTION BY COUNCIL MEMBER CHRISTIANSON, SECOND BY COUNCIL MEMBER STEWART, CARRIED 4-0-1 (COUNCIL MEMBER PEASE RECUSED) to adopt Resolution No. 11068 (2020 Series) entitled, “A Resolution of the City Council of the City of San Luis Obispo, California, establishing the Residential Parking Permit District for the Dana Street area of the City, establishing days and hours of operation of said district, and time of renewal for a parking permit” for the 400-500 blocks of Dana Street. With direction to extend the district to the entire street, explore providing one parking permit for each unit for multi-family properties with 8 units or less and the formation of a special event process. Council Member Pease returned to the dais at 8:38 p.m. Deputy Director Public Works Tim Bochum and Parking Services Supervisor Alex Fuchs provided and in-depth staff report and responded to Council questions. Public Comments: Rozann Blackwell Tawn Roide Ansgar Killing Gail Gray Sarah Brown ---End of Public Comment--- Packet Page 7 Item 2 San Luis Obispo City Council Minutes of January 14, 2020 Page 8 ACTION: MOTION BY VICE MAYOR GOMEZ, SECOND BY COUNCIL MEMBER PEASE, CARRIED 5-0 to adopt Resolution No. 11069 (2020 Series) entitled, “A Resolution of the City Council of the City of San Luis Obispo, California, modifying the Residential Parking Permit District for the Monterey Heights area of the City, establishing days and hours of operation of said district and time of renewal for a parking permit” to include residential properties located on 10-400 blocks of Buena Vista Avenue. 11. PUBLIC HEARING - INTRODUCE AN ORDINANCE AMENDING DESIGNATED PORTIONS OF THE CITY OF SAN LUIS OBISPO MUNICIPAL CODE SECTION 3.04.020, SECTION 3.04.080, SECTION 3.04.090, SECTION 3.04.100 AND SECTION 3.04.130 OF MUNICIPAL CODE CHAPTER 3.04 – TRANSIENT OCCUPANCY TAX Finance Director Brigitte Elke and Budget Analyst Natalie Harnett provided an in-depth staff report and responded to Council questions. Public Comments: None. ---End of Public Comment--- ACTION: MOTION BY COUNCIL MEMBER PEASE, SECOND BY COUNCIL MEMBER CHRISTIANSON, CARRIED 5-0 to introduce Ordinance No. 1674 (2020 Series) entitled, “An Ordinance of the City Council of the City of San Luis Obispo, California, amending Sections 3.04.020, Section 3.04.080, Section 3.04.090, Section 3.04.100 and Section 3.04.130 of Municipal Code Title 3.04 – Transient Occupancy Tax” to revise action to collect applicable tax assessments and to clarify the process to appeal. 12. MIOSSI OPEN SPACE CONSERVATION PLAN Deputy City Manager Greg Hermann and Sustainability, Natural Resources Official Robert Hill and Sustainability & Natural Resources Intern Dylan Stafforini provided an in-depth staff report and responded to Council questions. Public Comments: None. ---End of Public Comment--- ACTION: MOTION BY COUNCIL MEMBER STEWART, SECOND BY COUNCIL MEMBER CHRISTIANSON, CARRIED 5-0 to approve Resolution No. 11070 (2020 Series) entitled, “A Resolution of the City Council of the City of San Luis Obispo, California, approving the Miossi Open Space Conservation Plan and adoption of a Negative Declaration.” Packet Page 8 Item 2 San Luis Obispo City Council Minutes of January 14, 2020 Page 9 COUNCIL COMMUNICATIONS AND LIAISON REPORTS Vice Mayor Gomez provided an update on IWMA activities. Council Member Pease provided an update on the Groundwater Sustainability activities and SLOCOG and Coast Rail Coordinating Counties. ADJOURNMENT The meeting was adjourned at 9:49 p.m. The next Regular City Council Meeting is scheduled for Tuesday, January 21, 2020 at 6:00 p.m., in the Council Chamber, 990 Palm Street, San Luis Obispo, California. __________________________ Teresa Purrington City Clerk APPROVED BY COUNCIL: XX/XX/2020 Packet Page 9 Item 2 Page intentionally left blank. Packet Page 10 Item 2 Department Name: Utilities Cost Center: 6105 For Agenda of: February 4, 2020 Placement: Consent Estimated Time: N/A FROM: Aaron Floyd, Utilities Director Prepared By: Jennifer Thompson, Utilities Business Manager SUBJECT: INTRODUCE AN ORDINANCE AMENDING SECTIONS 13.04.060 AND 13.04.110 OF MUNICIPAL CODE CHAPTER 13.04 (WATER SERVICE) AND ADOPT A DISCONTINUATION OF RESIDENTIAL WATER SERVICE FOR NON-PAYMENT POLICY AND ESTABLISH A RECONNECTION FEE RECOMMENDATION 1. Introduce an Ordinance amending Chapter 13.04 of the City of San Luis Obispo Municipal Code to comply with Senate Bill 998 (Attachment A); and 2. Adopt a Resolution of the City Council of the City of San Luis Obispo establishing a Discontinuation of Residential Water Service Policy (Attachment B); and 3. Adopt a Resolution of the City Council of the City of San Luis Obispo establishing a Reconnection Fee for households demonstrating income less than 200-percent of the Federal Poverty Line (Attachment C). REPORT IN BRIEF In September 2018, Governor Brown signed Senate Bill 998 (SB 998) which requires additional rules and procedures before residential water service can be turned off for non-payment. SB 998 requires cities and other agencies who provide water service to adopt a written “Discontinuation of Residential Water Service” policy that complies with the new law. In addition, the San Luis Obispo Municipal Code conflicts with SB 998 so the applicable ordinances must be amended. DISCUSSION Background The City provides water service to approximately 15,600 customers. It is common practice amongst water providers to discontinue (turn-off) a customer’s water service when the customer’s bill becomes delinquent. The customers are charged a fee and required to pay their delinquent balance to restore service. The fee recovers the cost to turn the water off and to turn the water back on when the customers have paid their delinquent bill. Current State law, even prior to implementation of SB 998 discussed below, requires water providers to notify residential customers prior to discontinuing service for non-payment. It has been the City’s policy and practice to discontinue water service for delinquent bills1, to charge a fee before the service is restored2, and to comply with State notification requirements. 1 San Luis Obispo, Municipal Code 13.04.060 A. 1 2 San Luis Obispo, Municipal Code 13.04.060 G Packet Page 11 Item 3 Senate Bill 998 The Water Shutoff Protection Act, Senate Bill 998 (SB 998) implements additional rules and requires procedures before residential water service can be discontinued for non-payment and is intended to minimize the number of Californians who have their water service interrupted due to their inability to pay. The requirements, effective February 1, 2020 under SB 998 are: 1. Notification Requirements a. The City shall adopt a written policy on discontinuation for nonpayment available in English, Spanish, Chinese, Tagalog, Vietnamese, Korean, and any other language spoken by 10 percent or more of the City’s population. The policy must be posted on the City’s website and be available in writing upon request. b. The policy shall include the following information: i. A plan for deferred or reduced payments; ii. Alternative payment schedules; iii. A formal mechanism for a customer to contest or appeal a bill; iv. A telephone number for a customer to contact to discuss options for averting discontinuation of residential service for nonpayment. c. No less than seven business days before discontinuation of service, the City shall contact the customer named on the account by telephone or written notice. d. The City shall provide to the customer information on how to restore service. 2. Timing Requirements a. Residential service shall not be discontinued for non-payment until the payment has been delinquent for at least 60 days. 3. Protections for Non-Customer Occupants a. If the customer’s mailing address is not the property address to which the service is provided, notice of imminent discontinuation shall also be sent to the address of the property. b. If the landlord is the customer on record, the City shall make every good faith effort to inform residential occupants, by written notice, when the account is in arrears that service will be terminated at least 10 days prior to termination. 4. Protections for Households Who are Financially Unable to Pay a. Water service shall not be discontinued if all the following are met: i. The customer submits certification of a primary care provider that discontinuation will be life threatening; ii. The customer demonstrates they are financially unable to pay; and iii. The customer is willing to enter into an amortization agreement. b. For customers who demonstrate a household income of less than 200-percent of the federal poverty line (currently $50,200 for a household of four), the City shall set a reconnection fee at $50 ($150 for after-hours service); and waive one interest charge every 12 months. Packet Page 12 Item 3 5. Reporting Requirements a. The City shall report the annual number of water service discontinuations for residential customers on the City website. 6. Other Protections a. If the customer appeals the bill, water service shall not be discontinued while the appeal is pending. Proposed City Policy Changes Although the City does not have an adopted policy consistent with SB 998, in practice the City already includes many similar protections in its current operating procedures. Listed below are current City policies and procedures and how they are proposed to change to comply with SB 998. The SB 998 requirements, existing City policy, and the proposed changes to existing policy are summarized in Attachment D to this report. 1. Notification Requirements Existing policy: The City currently provides: 1) a plan for deferred payments; 2) a formal mechanism for a customer to contest or appeal a bill; 3) a telephone number for a customer to discuss options to avert discontinuation; and 4) information on how to restore water service. Customers are mailed a shut-off notice the day after they become delinquent and are called via an automated phone system 48 hours before service is discontinued. If the phone call fails, a door tag is left at the residence. The City will maintain these methods of notific ation, a shut off notice and a telephone call, which comply with SB 998. Proposed changes to policy: Staff is recommending that the Council adopt a formal “Interruption of Residential Water Service Policy.” This policy will be translated into the SB 998 required languages and is proposed to be posted on the City’s website. The policy includes options to pay delinquent bills to avoid discontinuation of service to include alternative payment schedules. 2. Timing Requirements Existing policy: Currently water service is discontinued approximately three weeks after a bill becomes delinquent. Changes to policy: To comply with SB 998, staff is proposing to increase the time before water is discontinued for non-payment from three weeks to at least 60 days delinquency. 3. Protections for Non-Customer Occupants Existing policy: Currently the City notifies occupants of pending water shut-off for non-payment via door tag. The door tag provides the occupant 14 days advance notice that the water will be shut-off if the delinquent bill is not paid. This policy complies with SB 998; no changes are proposed. Packet Page 13 Item 3 4. Protections for Households Who are Financially Unable to Pay Existing policy: The City currently does not shut-off water if the customer submits certification from a primary care provider that discontinuation will be life threatening. The City does not require the additional two criteria: (1) the customer demonstrates they are financially unable to pay; and (2) the customer is willing to enter into an amortization agreement. The City will continue to refrain from shutting off water if a primary care provider certifies that discontinuation of service will be life threatening without requiring a demonstration that the customer is unable to pay and willing to enter into an amortization agreement. Currently, all customers who are shut-off for nonpayment must pay $117 to have their water service restored. This is a cost recovery fee for City staff to visit the service address to turn the water off and then return to the property to turn the water back on when the customer has paid the delinquent bill. Changes to policy: To comply with SB 998, staff is recommending that the Council adopt resolution “Adopting Reconnection Fee for Households Demonstrating Income Less than 200- Percent of the Federal Poverty Line” (Attachment C) This will result in less than full cost recovery for those customers charged the reduced reconnection fee. 5. Reporting Requirements Existing policy: The City does not currently publish this information. Changes to policy: To comply with SB 998, staff is recommending the City begin reporting the annual number of service discontinuations for residential customers on the City’s website. 6. Other Protections Existing policy: The City currently does not discontinue water service while a customer appeal is pending so no policy change is required. 3 Impact of Changes SB 998 is intended to minimize the number of Californians who have their water service interrupted due to their inability to pay but may ultimately have the opposite effect. The requirement that residential service not be discontinued for non-payment until the payment has been delinquent for at least 60 days will extend the amount of time a customer has to pay a delinquent bill to avoid shut off. During that extended period of time, customers will continue to accumulate new bills and, thus, larger balances. These higher balances may cause hardship to customers and may be more difficult for the City to collect. The requirement that customers who demonstrate a household income of less than 200-percent of the federal poverty line pay a reduced reconnection fee means that the City may not fully recover the cost to turn-off and turn- on that customer’s water. 3 Utility Billing Adjustment Policy www.slocity.org/ubac Packet Page 14 Item 3 Customer Hardship Prolonged times of non-payment can result in larger balances, thereby resulting in an exacerbated hardship to water service customers. Customers will be able to accumulate larger balances making it more difficult for their accounts to become current. By the time the customer is shut off for non-payment and compelled to pay, they will have three outstanding bills. Currently they only have two outstanding bills when they are shut off. To help mitigate this problem, City staff will add an additional notification to customers, between the first bill and the shut-off notice, to ensure that customers remain aware of their total balance. Aged Account Balances In the delinquent bill collections field, older accounts receivables are typically more difficult to collect. Customers who close their account will potentially have larger uncollected balances sent to the City’s collection agency. Aged accounts receivable also have the potential to impact the City’s credit rating because they may indicate an inability to collect payments. As a percentage of all customers, the City shuts-off an average of 40 customers per month for non-payment. This is only 0.25 percent of all customers; hence staff estimates that aged account balances will not rise to this level. Cost Recovery The reconnection fee is a cost-of-service (cost recovery) fee that covers the cost of City staff to visit the service address to turn the water off and then return to the property to turn the water back on when the customer has paid the delinquent bill. Any time a fee does not fully pay for the cost of service to an individual customer, the water service will be subsidized by other customers through their water rates. However, because the City turns off so few customers, it is unlikely that the reduced reconnection fees cost recovery will impact rates. City staff will monitor these potential impacts and make adjustments to the Discontinuation of Residential Water Service Policy that will comply with SB 998 if necessary. Ordinance Amendment Amendments to Section 13.04.060 (Discontinuation of Water Service) and Section 13.04.110 (Delinquencies and Penalties) of Municipal Code Chapter 13.04 (Water Service) of the Municipal Code are being proposed to comply with the 60-day delinquency period required under SB 998 (Attachment D). The City’s Municipal Code currently states that water bills become delinquent 30 days after presentation of the bill and that water service may be discontinued when the bill becomes delinquent. Policy Context To comply with SB 998, the City is required to make these changes to the Municipal Code and establish the proposed policies. Public Engagement This item is on the agenda for the February 4, 2020 City Council meeting and will follow all required postings and notification requirements. The public will have an opportunity to comment on this item at or before the meeting. Packet Page 15 Item 3 CONCURRENCE The Finance Department concurs with the recommendations. ENVIRONMENTAL REVIEW The California Environmental Quality Act (CEQA) does not apply to the recommended action in this report, because the action does not constitute a “Project” under CEQA Guidelines Sec. 15378. FISCAL IMPACT Budgeted: No Budget Year: 2019-20 Funding Identified: Yes Fiscal Analysis: Funding Sources One-Time Costs Annual Ongoing Cost Water Fund $500 $3,000 Sewer Fund $500 $3,000 Total $1,000 $6,000 Staff anticipates that the City’s recovery of delinquent balances may be reduced with the proposed lengthening of the delinquency period to 60 days and offering a payment arrangement as long as 12 months in line with SB 998 requirements. The proposed reduction of the reconnection fee from $117 to $50 for some customers will not fully recover the cost to perform the work of turning the water off and then back on. Translation services will be a one-time cost of approximately $1,000. This cost will be absorbed in the Water and Sewer fund current budget allocations. The cost to print and mail additional late notices will cost approximately $6,000 per year. There are less than six months left in the 2019- 20 fiscal year so the $3,000 will be absorbed in the Water and Sewer fund current budget allocations. Additional budget for future years will be requested with each annual budget appropriation. ALTERNATIVES 1. Do not introduce the ordinance and adopt the resolutions. This is not recommended because SB 998 is State law and imposes civil penalties of up to $1,000 per day for violations. 2. Adopt greater protections than those required by SB 998. This is not recommended because this may increase customer hardships and aged accounts receivable. Packet Page 16 Item 3 Attachments: a - Draft Ordinance b - Draft Resolution - Discontinuation of Water Services Policy c - Draft Resolution - Adopting Reconnection Fee d - Summary of Changes e - Senate Bill No. 998 Verbiage Packet Page 17 Item 3 O ______ ORDINANCE NO. _____ (2020 SERIES) AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SAN LUIS OBISPO, CALIFORNIA, AMENDING SECTIONS 13.04.060 AND 13.04.110 OF THE SAN LUIS OBISPO MUNICIPAL CODE TITLE 13.04 – WATER SERVICE WHEREAS, the City of San Luis Obispo (City) is a municipal corporation duly organized under the California Constitution and laws of the State of California; and WHEREAS, the City owns and operates a public water system that supplies water to residential, commercial, and industrial customers throughout the City’s jurisdiction; and WHEREAS, in 2018, the California Legislature adopted Senate Bill 998 (“SB 998”) which adopted new and expanded protections regarding discontinuation of water service for nonpayment and related matters; and WHEREAS, the City Council desires to amend Chapter 13.04 of the Municipal Code to ensure consistency with the requirements of SB 998 and other laws; and NOW THEREFORE, BE IT ORDAINED by the City Council of the City of San Luis Obispo as follows: SECTION 1: Recitals. The above recitals are true and correct and are incorporated herein by this reference. SECTION 2. Section 13.04.060 of the San Luis Obispo Municipal Code is hereby amended to read as follows: 13.04.060 Discontinuation of water service. Each customer discontinuing water service shall be required to provide information according to the procedures established by the Director of finance and information technology Utilities. A. Nonpayment of Bills. 1. A customer’s water service may be discontinued if a bill is not paid on or before thirty sixty days from the date of presentation the bill becomes delinquent. “Date of presentation” shall be the billing date as referenced on the billing statement. 2. A customer’s unpaid balance for water service previously rendered by the city may be transferred to that same customer’s current water service and water service may be discontinued if water service furnished at a previous location is not paid on or before thirty sixty days from the date of presentation the bill becomes delinquent. Packet Page 18 Item 3 Ordinance No. _____ (2020 Series) Page 2 O ______ 3. If a customer receives water service at more than one location, and the bill for service at any one location is not paid on or before thirty sixty days from the date of presentation the bill becomes delinquent, water services at all locations may be discontinued. B. Unsafe Apparatus. The utilities department may discontinue service to any parcels where apparatus, appliances, or equipment using water is dangerous, unsafe, causing damage or not in conformity with any laws or ordinances. C. Service Detrimental to Others. The utilities department may discontinue service to any parcels where the demand may be detrimental or injurious to the service furnished to other customers. D. Fraud and Abuse. The utilities department shall have the right to refuse or to discontinue water service to any parcels to protect itself against fraud or abuse. E. Noncompliance. The utilities department may, unless otherwise provided, discontinue water services to a customer for noncompliance with any of these regulations if the customer fails to comply with them within five days after the date of presentation of written notice of the utilities department’s intention to discontinue service. If such noncompliance affects matters of health and safety and/or is causing property damage, and conditions warrant, the utilities department may discontinue water service immediately. F. Customer’s Request for Service Discontinuance. A customer may have his or her water service discontinued by notifying the finance utilities department reasonably well in advance of the desired date of discontinuance. He or she will be required to pay all water charges until the date of such discontinuance. G. Restoration – Reconnection Charges. The finance utilities department may charge such amount as may be established from time to time by resolution of the city council for restoring water service which has been discontinued because of noncompliance with these rules. (Ord. 1597 § 6, 2014: prior code § 7410.17. Formerly 13.04.180) SECTION 3. Section 13.04.110 of the San Luis Obispo Municipal Code is hereby amended to read as follows: 13.04.110 Delinquencies and penalties. For failure to pay for water service by the provisions of this chapter prior to the delinquency date, the director of finance utilities may add a penalty. The amount of the penalty shall be set by resolution of the city council. (Ord. 1597 § 11, 2014) 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. Packet Page 19 Item 3 Ordinance No. _____ (2020 Series) Page 3 O ______ SECTION 5. Environmental Review. The proposed ordinance amendment is exempt from California Environmental Quality Act (CEQA) pursuant to statute (Public Resources Code Section 21000, et seq.) and the CEQA Guidelines (14 Cal. Code Regs. 15000 et seq.), including without limitation under sections 15307 and 15308 of the CEQA Guidelines (actions to protect natural resources and the environment) and because it can be seen with certainty that there is no possibility the adoption of this ordinance amendment may have a significant effect on the environment (CEQA Guidelines § 15061(b)(3)). SECTION 6. 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 ____, 2020, AND FINALLY ADOPTED by the Council of the City of San Luis Obispo on the ____ day of ____, 2020, 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 _____________________________, 2020. ______________________________ Teresa Purrington City Clerk Packet Page 20 Item 3 R ______ RESOLUTION NO. _____ (2020 SERIES) A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS OBISPO, CALIFORNIA, ADOPTING A DISCONTINUATION OF RESIDENTIAL WATER SERVICES FOR NON-PAYMENT POLICY WHEREAS, on September 28, 2018, the Water Shutoff Protection Act, Senate Bill No. 998 was signed into law (Health & Safety Code § 116900, et seq. (“SB 998”)); and WHEREAS, SB 998 requires urban water suppliers, such as the City of San Luis Obispo (“City”), to adopt, by February 1, 2020, written policies governing the discontinuance of water service to residential customers for nonpayment; and WHEREAS, pursuant to existing law in effect prior to the enactment of SB 998, the City’s policies governing discontinuance of water service to residential customers were adopted by ordinance and codified within the City’s Code; and WHEREAS, in order to comply with and implement the requirements of SB 998, the City Council intends to adopt a Discontinuation of Residential Water Services Policy and to amend City’s Code, Chapter 13.04, consistent with all applicable legal requirements; and NOW, THEREFORE, BE IT RESOLVED by the Council of the City of San Luis Obispo as follows: SECTION 1. The City Council hereby adopts the attached Discontinuation of Residential Water Services for Non-Payment Policy (the “Policy”). SECTION 2. The City Council hereby finds this action is not subject to and is exempt from the California Environmental Quality Act, Public Resources Code section 21000, et seq., because it constitutes the making of general policy and procedure, it is not a project undertaken or authorized by the District that will have a reasonably foreseeable impact on the environment, and it can be seen with certainty that there is no possibility that the action may have a significant effect on the environment. (Pub. Res. Code § 21065; 14 Cal. Code Regs. §§ 15061(b)(3), 15378(b).) SECTION 3. Severability. If any subdivision, paragraph, sentence, clause, or phrase of this Policy 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 Policy, 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. Packet Page 21 Item 3 Resolution No. _____ (2020 Series) Page 2 R ______ SECTION 3. This Resolution shall become effective February 4, 2020. Upon motion of _______________________, seconded by _______________________, and on the following roll call vote: AYES: NOES: ABSENT: The foregoing resolution was adopted this _____ day of _____________________ 2020. ____________________________________ 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 ____________________________, 2020. ____________________________________ Teresa Purrington City Clerk Packet Page 22 Item 3 R ______ RESOLUTION NO. _____ (2020 SERIES) A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS OBISPO, CALIFORNIA ADOPTING A RECONNECTION FEE FOR HOUSEHOLDS DEMONSTRATING INCOME LESS THAN TWO HUNDRED PERCENT OF THE FEDERAL POVERTY LINE WHEREAS, the City of San Luis Obispo (“City”) is a municipal corporation duly organized under the California Constitution and laws of the State of California; and WHEREAS, the City owns and operates a public water system that supplies water to residential, commercial, and industrial customers throughout the City’s jurisdiction; and WHEREAS, in 2018, the California Legislature adopted the Water Shutoff Protection Act, Senate Bill 998 (“SB 998”) which adopted new and expanded protections regarding discontinuation of water service for nonpayment and related matters; and WHEREAS, in order to comply with and implement the requirements of SB 998, the City Council intends to adopt a water reconnection fee for households. NOW, THEREFORE, BE IT RESOLVED by the Council of the City of San Luis Obispo as follows: SECTION 1. The water reconnection fee for households demonstrating income less than two hundred percent of the federal poverty line will be $50. a) The fee will increase annually each July 1 by the Consumer Price Index. b) The customer shall demonstrate a household income less than two hundred percent of the federal poverty line if any member of the customer’s household is a current recipient of: i) CalWorks; ii) CalFresh; iii) General Assistance; iv) Medi-Cal; v) Supplemental Security Income/State Supplementary Payment Program; vi) California Special Supplemental Nutrition Program for Women, Infants, and Children; or vii) The customer declares that the household’s annual income is less than 200-percent of the federal poverty level. Packet Page 23 Item 3 Resolution No. _____ (2020 Series) Page 2 R ______ Upon motion of _______________________, seconded by _______________________, and on the following roll call vote: AYES: NOES: ABSENT: The foregoing resolution was adopted this _____ day of _____________________ 2020. ____________________________________ 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 ____________________________, 2020. ____________________________________ Teresa Purrington City Clerk Packet Page 24 Item 3 SB 988 Requirement Existing City Policy Proposed Change Notification Requirements 1. The City shall adopt a written policy on discontinuation for nonpayment. The City does not currently have a formal policy. City staff is recommending that the Council adopt a formal “Interruption of Residential Water Service Policy.” This policy has been translated into the required languages and will be posted on the City’s website. 2. The City’s written policy be made available in English, Spanish, Chinese, Tagalog, Vietnamese, Korean, and any other language spoken by 10 percent or more of the City’s population. The policy must be posted on the City’s website and be available in writing upon request. The City does not currently have a formal policy. City staff is recommending that the Council adopt a formal “Interruption of Residential Water Service Policy.” This policy has been translated into the required languages and will be posted on the City’s website. 3. The policy shall include the following information: a. A plan for deferred or reduced payments; b. Alternative payment schedules; c. A formal mechanism for a customer to contest or appeal a bill; d. A telephone number for a customer to contact to discuss options for averting discontinuation of residential service for nonpayment. The City currently provides a plan for deferred payments; a formal mechanism for a customer to contest or appeal a bill; and a telephone number for a customer to discuss options to avert discontinuation. The City will expand options to pay delinquent bills to avoid discontinuation of service to include alternative payment schedules. 4. No less than seven business days before discontinuation of service, a water system shall contact the customer name on the account by telephone or written notice. Customers are mailed a shut-off notice the day after they become delinquent and are called via an automated phone system 48 hours before service is discontinued. If the phone call fails, a door tag is left at the residence. The City will maintain these methods of notification, a shut off notice and a telephone call, which comply with SB 998. Packet Page 25 Item 3 5. The City shall provide to the customer information on how to restore service. The City currently provides information on how to restore service. N/A Timing Requirements 6. Residential service shall not be discontinued for non-payment until the payment has been delinquent for at least 60 days. Currently service is discontinued approximately three weeks after a bill becomes delinquent. To comply with SB 998, the City will increase the time before water is discontinued for non-payment from three weeks to 60 days delinquency. Protections for Non-Customer Occupants 7. If the customer’s mailing address is not the property address to which the service is provided, notice of imminent discontinuation shall also be sent to the address of the property. Currently Utilities notifies occupants of pending water shut-off for non- payment via door tag. The door tag gives the occupant 14 days advance notice that the water will be shut-off if the delinquent bill is not paid. This policy complies with SB 998 so it will not be changed 8. If the landlord is the customer on record, the City shall make every good faith effort to inform residential occupants, by written notice, when the account is in arrears that service will be terminated at least 10 days prior to termination. Protections for Households Who are Financially Unable to Pay 9. Water service shall not be discontinued if all the following are met: a. The customer submits certification of a primary care provider that discontinuation will be life threatening; b. The customer demonstrates they are financially unable to pay; and c. The customer is willing to enter into an amortization agreement. The City currently does not shut-off water if the customer submits certification of a primary care provider that discontinuation will be life threatening. We do not require the additional two criteria: (1) the customer demonstrates they are financially unable to pay; and (2) the customer is willing to enter into an amortization agreement. The City will continue to refrain from shutting off water if a primary care provider certifies that discontinuation of service will be life threatening without requiring a demonstration that the customer is unable to pay and willing to enter into an amortization agreement. Packet Page 26 Item 3 10. For customers who demonstrate a household income of less than 200-percent of the federal poverty line, the City shall set a reconnection fee at $50 ($150 for after- hours service); and waive one interest charge every 12 months. Currently, all customers who are shut-off for nonpayment must pay $117 to have their service restored. This is a cost-of-service fee that covers the cost of City staff to visit the service address to turn the water off and then return to the property to turn the water back on when the customer has paid their delinquent bill. City staff is recommending that the Council adopt resolution “Adopting Reconnection Fee for Households Demonstrating Income Less than 200- Percent of the Federal Poverty Line.” Reporting Requirements 11. The City shall report the annual number of discontinuations for residential customers on the City website. The City does not currently publish this information. The City will begin reporting the annual number of discontinuations for residential customers on the City website. Other Protections 12. If the customer appeals the bill, service shall not be discontinued while the appeal is pending. Utilities currently does not discontinue water while a customer appeal is pending so no policy change is required. N/A Packet Page 27 Item 3 SHARE THIS:Date Published: 09/28/2018 09:00 PM SB-998 Discontinuation of residential water service: urban and community water systems.(2017-2018) Senate Bill No. 998 CHAPTER 891 An act to add Chapter 6 (commencing with Section 116900) to Part 12 of Division 104 of the Health and Safety Code, relating to water. [ Approved by Governor September 28, 2018. Filed with Secretary of State September 28, 2018. ] LEGISLATIVE COUNSEL'S DIGEST SB 998, Dodd. Discontinuation of residential water service: urban and community water systems. Existing law, the California Safe Drinking Water Act, requires the State Water Resources Control Board to administer provisions relating to the regulation of drinking water to protect public health. Existing law declares it to be the established policy of the state that every human being has the right to safe, clean, affordable, and accessible water adequate for human consumption, cooking, and sanitary purposes. Under existing law, the Public Utilities Commission has regulatory authority over public utilities, including water corporations. Existing law requires certain notice to be given before a water corporation, public utility district, municipal utility district, or a municipally owned or operated public utility furnishing water may terminate residential service for nonpayment of a delinquent account, as prescribed. This bill would require an urban and community water system, defined as a public water system that supplies water to more than 200 service connections, to have a written policy on discontinuation of water service to certain types of residences for nonpayment available in prescribed languages. The bill would require the policy to include certain components, be available on the system’s Internet Web site, and be provided to customers in writing, upon request. The bill would provide for enforcement of these provisions, including making a violation of these provisions punishable by a civil penalty issued by the board in an amount not to exceed $1,000 for each day in which the violation occurs, and would require the enforcement moneys collected by the board to be deposited in the Safe Drinking Water Account. The bill would prohibit an urban and community water system from discontinuing residential service for nonpayment until a payment by a customer has been delinquent for at least 60 days. The bill would require an urban and community water system to contact the customer named on the account and provide the customer with the urban and community water system’s policy on discontinuation of residential service for nonpayment no less than 7 business days before discontinuation of residential service, as prescribed. This bill would prohibit residential service from being discontinued under specified circumstances. The bill would require an urban and community water system that discontinues residential service to provide the customer with information on how to restore service. The bill would require an urban and community water system to waive interest charges on delinquent bills for, and would limit the amount of a reconnection of service fee imposed on, a residential customer who demonstrates, as prescribed, to the urban and community water system household income below 200% of the federal poverty line. The bill would require an urban and community water system that furnishes individually metered residential service to residential occupants of a detached single-family dwelling, a multiunit structure, mobilehome park, or permanent residential structure in a labor camp, and that the owner, Home Bill Information California Law Publications Other Resources My Subscriptions My Favorites Page 1 of 6Bill Text - SB-998 Discontinuation of residential water service: urban and community wa... 10/4/2018https://leginfo.legislature.ca.gov/faces/billTextClient.xhtml?bill_id=201720180SB998 Packet Page 28 Item 3 manager, or operator of the dwelling, structure, or park is the customer of record, to make every good faith effort to inform the residential occupants by written notice that service will be terminated and that the residential occupants have the right to become customers, as specified. The bill would require an urban and community water system to report the number of annual discontinuations of residential service for inability to pay on its Internet Web site and to the board, and the bill would require the board to post on its Internet Web site the information reported. The bill would require an urban water supplier, as defined, or an urban and community water system regulated by the commission, to comply with the bill’s provisions on and after February 1, 2020, and any other urban and community water system to comply with the bill’s provisions on and after April 1, 2020. The bill would provide that the provisions of the bill are in addition to the provisions in existing law duplicative of the bill and that where the provisions are inconsistent, the provisions described in the bill apply. Vote: majority Appropriation: no Fiscal Committee: yes Local Program: no THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS: SECTION 1. The Legislature finds and declares as follows: (a) All Californians have the right to safe, accessible, and affordable water as declared by Section 106.3 of the Water Code. (b) It is the intent of the Legislature to minimize the number of Californians who lose access to water service due to inability to pay. (c) Water service discontinuations threaten human health and well-being, and have disproportionate impact on infants, children, the elderly, low-income families, communities of color, people for whom English is a second language, physically disabled persons, and persons with life-threatening medical conditions. (d) When there is a delinquent bill, all Californians, regardless of whether they pay a water bill directly, should be treated fairly, and fair treatment includes the ability to contest a bill, seek alternative payment schedules, and demonstrate medical need and severe economic hardship. (e) The loss of water service causes tremendous hardship and undue stress, including increased health risks to vulnerable populations. (f) It is the intent of the Legislature that this act provide additional procedural protections and expand upon the procedural safeguards contained in the Public Utilities Code and Government Code as of January 1, 2018, relating to utility service disconnections. SEC. 2. Chapter 6 (commencing with Section 116900) is added to Part 12 of Division 104 of the Health and Safety Code, to read: CHAPTER 6. Discontinuation of Residential Water Service 116900. This chapter shall be known, and may be cited, as the Water Shutoff Protection Act. 116902. For the purposes of this chapter, the following definitions apply: (a) “Board” means the State Water Resources Control Board. (b) “Public water system” has the same meaning as defined in Section 116275. (c) “Residential service” means water service to a residential connection that includes single-family residences, multifamily residences, mobilehomes, including, but not limited to, mobilehomes in mobilehome parks, or farmworker housing. (d) “Urban and community water system” means a public water system that supplies water to more than 200 service connections. (e) “Urban water supplier” has the same meaning as defined in Section 10617 of the Water Code. 116904. (a) An urban water supplier not regulated by the Public Utilities Commission shall comply with this chapter on and after February 1, 2020. (b) An urban and community water system regulated by the Public Utilities Commission shall comply with this chapter on and after February 1, 2020. The urban and community water system regulated by the Public Utilities Commission shall file advice letters with the commission to conform with this chapter. Page 2 of 6Bill Text - SB-998 Discontinuation of residential water service: urban and community wa... 10/4/2018https://leginfo.legislature.ca.gov/faces/billTextClient.xhtml?bill_id=201720180SB998 Packet Page 29 Item 3 (c) An urban and community water system not described in subdivision (a) or (b) shall comply with this chapter on and after April 1, 2020. 116906. (a) An urban and community water system shall have a written policy on discontinuation of residential service for nonpayment available in English, the languages listed in Section 1632 of the Civil Code, and any other language spoken by at least 10 percent of the people residing in its service area. The policy shall include all of the following: (1) A plan for deferred or reduced payments. (2) Alternative payment schedules. (3) A formal mechanism for a customer to contest or appeal a bill. (4) A telephone number for a customer to contact to discuss options for averting discontinuation of residential service for nonpayment. (b) The policy shall be available on the urban and community water system’s Internet Web site, if an Internet Web site exists. If an Internet Web site does not exist, the urban and community water system shall provide the policy to customers in writing, upon request. (c) (1) The board may enforce the requirements of this section pursuant to Sections 116577, 116650, and 116655. The provisions of Section 116585 and Article 10 (commencing with Section 116700) of Chapter 4 apply to enforcement undertaken for a violation of this section. (2) All moneys collected pursuant to this subdivision shall be deposited in the Safe Drinking Water Account established pursuant to Section 116590. 116908. (a) (1) (A) An urban and community water system shall not discontinue residential service for nonpayment until a payment by a customer has been delinquent for at least 60 days. No less than seven business days before discontinuation of residential service for nonpayment, an urban and community water system shall contact the customer named on the account by telephone or written notice. (B) When the urban and community water system contacts the customer named on the account by telephone pursuant to subparagraph (A), it shall offer to provide in writing to the customer the urban and community water system’s policy on discontinuation of residential service for nonpayment. An urban and community water system shall offer to discuss options to avert discontinuation of residential service for nonpayment, including, but not limited to, alternative payment schedules, deferred payments, minimum payments, procedures for requesting amortization of the unpaid balance, and petition for bill review and appeal. (C) When the urban and community water system contacts the customer named on the account by written notice pursuant to subparagraph (A), the written notice of payment delinquency and impending discontinuation shall be mailed to the customer of the residence to which the residential service is provided. If the customer’s address is not the address of the property to which residential service is provided, the notice also shall be sent to the address of the property to which residential service is provided, addressed to “Occupant.” The notice shall include, but is not limited to, all of the following information in a clear and legible format: (i) The customer’s name and address. (ii) The amount of the delinquency. (iii) The date by which payment or arrangement for payment is required in order to avoid discontinuation of residential service. (iv) A description of the process to apply for an extension of time to pay the delinquent charges. (v) A description of the procedure to petition for bill review and appeal. (vi) A description of the procedure by which the customer may request a deferred, reduced, or alternative payment schedule, including an amortization of the delinquent residential service charges, consistent with the written policies provided pursuant to subdivision (a) of Section 116906. (2) If the urban and community water system is unable to make contact with the customer or an adult occupying the residence by telephone, and written notice is returned through the mail as undeliverable, the urban and community water system shall make a good faith effort to visit the residence and leave, or make other arrangements for placement in a conspicuous place of, a notice of imminent discontinuation of residential service Page 3 of 6Bill Text - SB-998 Discontinuation of residential water service: urban and community wa... 10/4/2018https://leginfo.legislature.ca.gov/faces/billTextClient.xhtml?bill_id=201720180SB998 Packet Page 30 Item 3 for nonpayment and the urban and community water system’s policy for discontinuation of residential service for nonpayment. (b) If an adult at the residence appeals the water bill to the urban and community water system or any other administrative or legal body to which such an appeal may be lawfully taken, the urban and community water system shall not discontinue residential service while the appeal is pending. 116910. (a) An urban and community water system shall not discontinue residential service for nonpayment if all of the following conditions are met: (1) The customer, or a tenant of the customer, submits to the urban and community water system the certification of a primary care provider, as that term is defined in subparagraph (A) of paragraph (1) of subdivision (b) of Section 14088 of the Welfare and Institutions Code, that discontinuation of residential service will be life threatening to, or pose a serious threat to the health and safety of, a resident of the premises where residential service is provided. (2) The customer demonstrates that he or she is financially unable to pay for residential service within the urban and community water system’s normal billing cycle. The customer shall be deemed financially unable to pay for residential service within the urban and community water system’s normal billing cycle if any member of the customer’s household is a current recipient of CalWORKs, CalFresh, general assistance, Medi-Cal, Supplemental Security Income/State Supplementary Payment Program, or California Special Supplemental Nutrition Program for Women, Infants, and Children, or the customer declares that the household’s annual income is less than 200 percent of the federal poverty level. (3) The customer is willing to enter into an amortization agreement, alternative payment schedule, or a plan for deferred or reduced payment, consistent with the written policies provided pursuant to subdivision (a) of Section 116906, with respect to all delinquent charges. (b) (1) If the conditions listed in subdivision (a) are met, the urban and community water system shall offer the customer one or more of the following options: (A) Amortization of the unpaid balance. (B) Participation in an alternative payment schedule. (C) A partial or full reduction of the unpaid balance financed without additional charges to other ratepayers. (D) Temporary deferral of payment. (2) The urban and community water system may choose which of the payment options described in paragraph (1) the customer undertakes and may set the parameters of that payment option. Ordinarily, the repayment option offered should result in repayment of any remaining outstanding balance within 12 months. An urban and community water system may grant a longer repayment period if it finds the longer period is necessary to avoid undue hardship to the customer based on the circumstances of the individual case. (3) Residential service may be discontinued no sooner than 5 business days after the urban and community water system posts a final notice of intent to disconnect service in a prominent and conspicuous location at the property under either of the following circumstances: (A) The customer fails to comply with an amortization agreement, an alternative payment schedule, or a deferral or reduction in payment plan for delinquent charges for 60 days or more. (B) While undertaking an amortization agreement, an alternative payment schedule, or a deferral or reduction in payment plan for delinquent charges, the customer does not pay his or her current residential service charges for 60 days or more. 116912. An urban and community water system that discontinues residential service for nonpayment shall provide the customer with information on how to restore residential service. 116914. (a) For a residential customer who demonstrates to an urban and community water system household income below 200 percent of the federal poverty line, the urban and community water system shall do both of the following: (1) Set a reconnection of service fee for reconnection during normal operating hours at fifty dollars ($50), but not to exceed the actual cost of reconnection if it is less. Reconnection fees shall be subject to an annual adjustment for changes in the Consumer Price Index beginning January 1, 2021. For the reconnection of residential service Page 4 of 6Bill Text - SB-998 Discontinuation of residential water service: urban and community wa... 10/4/2018https://leginfo.legislature.ca.gov/faces/billTextClient.xhtml?bill_id=201720180SB998 Packet Page 31 Item 3 during nonoperational hours, an urban and community water system shall set a reconnection of service fee at one hundred fifty dollars ($150), but not to exceed the actual cost of reconnection if it is less. Reconnection fees shall be subject to an annual adjustment for changes in the Consumer Price Index beginning January 1, 2021. (2) Waive interest charges on delinquent bills once every 12 months. (b) An urban and community water system shall deem a residential customer to have a household income below 200 percent of the federal poverty line if any member of the household is a current recipient of CalWORKs, CalFresh, general assistance, Medi-Cal, Supplemental Security Income/State Supplementary Payment Program, or California Special Supplemental Nutrition Program for Women, Infants, and Children, or the customer declares that the household’s annual income is less than 200 percent of the federal poverty level. 116916. (a) This section applies if there is a landlord-tenant relationship between the residential occupants and the owner, manager, or operator of the dwelling. (b) If an urban and community water system furnishes individually metered residential service to residential occupants of a detached single-family dwelling, a multiunit residential structure, mobilehome park, or permanent residential structure in a labor camp as defined in Section 17008, and the owner, manager, or operator of the dwelling, structure, or park is the customer of record, the urban and community water system shall make every good faith effort to inform the residential occupants, by means of written notice, when the account is in arrears that service will be terminated at least 10 days prior to the termination. The written notice shall further inform the residential occupants that they have the right to become customers, to whom the service will then be billed, without being required to pay any amount which may be due on the delinquent account. (c) The urban and community water system is not required to make service available to the residential occupants unless each residential occupant agrees to the terms and conditions of service and meets the requirements of law and the urban and community water system’s rules and tariffs. However, if one or more of the residential occupants are willing and able to assume responsibility for the subsequent charges to the account to the satisfaction of the urban and community water system, or if there is a physical means legally available to the urban and community water system of selectively terminating service to those residential occupants who have not met the requirements of the urban and community water system’s rules and tariffs, the urban and community water system shall make service available to those residential occupants who have met those requirements. (d) If prior service for a period of time is a condition for establishing credit with the urban and community water system, residence and proof of prompt payment of rent or other credit obligation acceptable to the urban and community water system for that period of time is a satisfactory equivalent. (e) Any residential occupant who becomes a customer of the urban and community water system pursuant to this section whose periodic payments, such as rental payments, include charges for residential water service, where those charges are not separately stated, may deduct from the periodic payment each payment period all reasonable charges paid to the urban and community water system for those services during the preceding payment period. (f) In the case of a detached single-family dwelling, the urban and community water system may do any of the following: (1) Give notice of termination at least seven days prior to the proposed termination. (2) In order for the amount due on the delinquent account to be waived, require an occupant who becomes a customer to verify that the delinquent account customer of record is or was the landlord, manager, or agent of the dwelling. Verification may include, but is not limited to, a lease or rental agreement, rent receipts, a government document indicating that the occupant is renting the property, or information disclosed pursuant to Section 1962 of the Civil Code. 116918. An urban and community water system shall report the number of annual discontinuations of residential service for inability to pay on the urban and community water system’s Internet Web site, if an Internet Web site exists, and to the board. The board shall post on its Internet Web site the information reported. 116920. (a) The Attorney General, at the request of the board or upon his or her own motion, may bring an action in state court to restrain by temporary or permanent injunction the use of any method, act, or practice declared in this chapter to be unlawful. (b) For an urban and community water system regulated by the Public Utilities Commission, the commission may bring an action in state court to restrain by temporary or permanent injunction the use by an urban and Page 5 of 6Bill Text - SB-998 Discontinuation of residential water service: urban and community wa... 10/4/2018https://leginfo.legislature.ca.gov/faces/billTextClient.xhtml?bill_id=201720180SB998 Packet Page 32 Item 3 community water system regulated by the commission of any method, act, or practice declared in this chapter to be unlawful. 116922. All written notices required under this chapter shall be provided in English, the languages listed in Section 1632 of the Civil Code, and any other language spoken by 10 percent or more of the customers in the urban and community water system’s service area. 116924. Where provisions of existing law are duplicative of this chapter, compliance with one shall be deemed compliance with the other. Where those provisions are inconsistent, the provisions of this chapter shall apply. Nothing in this chapter shall be construed to limit or restrict the procedural safeguards against the disconnection of residential water service existing as of December 31, 2018. 116926. This chapter does not apply to the termination of a service connection by an urban and community water system due to an unauthorized action of a customer. Page 6 of 6Bill Text - SB-998 Discontinuation of residential water service: urban and community wa... 10/4/2018https://leginfo.legislature.ca.gov/faces/billTextClient.xhtml?bill_id=201720180SB998 Packet Page 33 Item 3 Page intentionally left blank. Packet Page 34 Item 3 Department Name: Public Works Cost Center: 5201 For Agenda of: February 4, 2020 Placement: Consent Estimated Time: N/A FROM: Shelly Stanwyck, Assistant City Manager, Community Services Prepared By: Gamaliel Anguiano, Transit Manager SUBJECT: AUTHORIZATION TO SUBMIT 2019-20 LOW CARBON TRANSIT OPERATIONS PROGRAM (LCTOP) GRANT APPLICATIONS RECOMMENDATION Adopt a Resolution authorizing the City Manager or her/his designee to file, execute, and fulfill any related LCTOP grant applications, certifications, assurances, forms, agreements, and associated documents on behalf of the City of San Luis Obispo. (Attachment A). DISCUSSION Background Information on California’s LCTOP The LCTOP is one of several programs that are part of the Transit, Affordable Housing, and Sustainable Communities Program established by the California Legislature in 2014 by Senate Bill 862. The California Legislature created LCTOP to provide operating and capital assistance for transit agencies to reduce greenhouse gas emissions and improve mobility, with a priority on serving disadvantaged communities. Approved projects in LCTOP support new or expanded bus or rail services, expand intermodal transit facilities, and may include equipment acquisition, fueling, maintenance, and other costs to operate those services or facilities, with each project reducing greenhouse gas emissions. Since 2015-16, Senate Bill 862 continuously appropriates five percent of the annual auction proceeds in the Greenhouse Gas Reduction Fund (Fund) for LCTOP. The LCTOP is administered by California Department of Transportation (Caltrans) in coordination with the California Air Resource Board (ARB) and the State Controller’s Office (SCO). Caltrans is responsible for ensuring that the statutory requirements of the LCTOP are met in terms of project eligibility, greenhouse reduction, disadvantaged community benefit, and other requirements of the law. Per Public Resource Code § 75230(f)(1)-(3) funds shall be expended to provide transit operating or capital assistance that meets any of the following three criteria: Packet Page 35 Item 4 1. New and Expanded. Expenditures that directly enhance or expand transit service by supporting new or expanded bus or rail services, new or expanded water-borne transit, or expanded intermodal facilities, and may include equipment acquisition, fueling, and maintenance, and other costs to operate those services or facilities. 2. Increased Modality. Operational expenditures that increase transit mode share. 3. Zero-Emissions. Expenditures related to the purchase of zero-emission buses, including electric buses, and the installation of the necessary equipment and infrastructure to operate and support zero-emission buses. Relevancy of LCTOP to the City The City of San Luis Obispo may seek a portion of LCTOP funds annually. Each transit operator is entitled funds based on a statewide formula. The City’s currently identified allocation is $9,892 per annum; this amount may change slightly based upon revised State numbers. Exact funds for FY 19-20 have not yet been released by the State. In consultation with SLOCOG, they have recommended using the same amounts that were allocated in FY 18-19 as a basis for preparing the FY 20-21 resolution for direct allocation as well as discretionary funds available. The table below is from SLOCOG’s November 2019 Call for Projects staff report. Regionally, there is also projected to be a discretionary amount of $517,293 available to all local transit agencies to apply for. These specific and regional LCTOP funds require an annual grant application. This grant application requires City Council approval. SLOCOG determines the grant awards. City LCTOP Grant Application is for New Vehicles As Council may recall, earlier this year, the City received notice from the Air Pollution Control District that funds of $162,000 have been tentatively awarded to the City to help with electric charging infrastructure upgrades at the City’s Transit Yard. Staff therefore recommends pursuing $517,293 for the purchase of new electric transit vehicles. SLO Transit is facing a significant replacement need on buses that have aged out and are either approaching the end or exceeded their useful life. State mandates as discussed in this report also require the City to begin implementation of electrification (or another zero-emission vehicle strategy) as vehicle replacements or expansions occur. The LCTOP and other grants are essential in assisting the City convert the current fossil fuel powered SLO Transit fleet to electric vehicles. Packet Page 36 Item 4 Policy Context Financial Management Manual Policy 740 requires that the City Council approve grant applications equal to or greater than $5,000. The application will request $527,185 in combined City allocated and discretionary LCTOP funds. The 2019-21 Financial Plan (adopted June 4, 2019) includes budgeting assumptions of $2,875,000 in grant funds being sought for FY 2019-20 for bus replacements to begin to electrify the transit fleet. The LCTOP grant solicitation is consistent with the Financial Plan goals of seeking funding assistance to begin replacement of the City’s transit fleet. Local funding match requirements or additional funding to complete acquisitions will come from unappropriated Transit Fund working capital and other grant funds that will be solicited. Transitioning the City’s public transit fleet to zero-emission technology is in line with the City’s adopted 2019 Major City Goals, particularly in regard to Climate Action and Sustainable Transportation. Likewise, the City’s adopted 2017-22 Short Range Transit Plan (SRTP) also calls for advancements in transit technology that support enhanced and sustainable transportation goals. Furthermore, the California Air Resource Board’s ICT Rule would obligate all California agencies to move towards zero-emission vehicles by 2040. 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 This proposed project has been reviewed by the Finance Department, City Attorney and City Administration and San Luis Obispo Council of Governments before submission to the City Council. 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 - Grant Funding Budget Year: 2019-2020 Funding Identified: Yes Packet Page 37 Item 4 Fiscal Analysis: Funding Sources Total Budget Available Current Funding Request Remaining Balance Annual Ongoing Cost Transit Fund State – LCTOP Discretionary $517,293* State – LCTOP Direct $9,892 Other: Total $527,175 *This is the grant application amount. Some other amount could be awarded. There is no impact on the City’s General Fund as a result of applying or receiving these grant funds. Rather, securement of these funds will assist and supplement the Transit Enterprise fund in achieving its capital projects, which has no other identified funding source. Full award would pay for as much as 65% of an Electric Bus, based on the State of California’s Department for Goods & Services purchase consortium contract. The remaining amount would be funded with local funds coming from the unappropriated Transit fund working capital. The City will continue to apply for individual capital grants to accumulate funding to purchase buses as funding becomes available. The goal will be to leverage as much outside funding as possible and take advantage of available working capital as a last resort. The Transit Fund holds approximately $1.1 million in unappropriated and unassigned Working Capital to be used to help leverage these funds and purchase a ZEV if LCTOP discretionary funds are awarded to the City. Once all Grant Funding as described above is in place, staff will return to Council seeking electric bus purchase approval. ALTERNATIVES 1. Deny authorization request for the grant application. This is not recommended as this will leave the transit program without another funding source to pursue the purchase of transit vehicles. Attachments: a - Draft Resolution Packet Page 38 Item 4 R ______ RESOLUTION NO. _____ (2020 SERIES) A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS OBISPO, CALIFORNIA, AUTHORIZING THE CITY MANAGER OR THEIR DESIGNEE, TO FILE, EXECUTE AND FULFILL ANY RELATED LOW CARBON TRANSPORTATION OPERATIONS PROGRAM GRANT APPLICATIONS, CERTIFICATIONS, ASSURANCES, FORMS, AGREEMENTS, AND ASSOCIATED DOCUMENTS ON BEHALF OF THE CITY OF SAN LUIS OBISPO WHEREAS, California Department of Transportation (Caltrans) in coordination with the Air Resource Board (ARB) and the State Controller’s (SCO) office have been authorized to administer the LCTOP program as defined in Senate Bill 862; and WHEREAS, the City of San Luis Obispo (City) operates the San Luis Obispo (SLO) Transit system; and WHEREAS, the City and SLO Transit are eligible applicants for the States’ Low Carbon Transportation Operations Program (LCTOP) grant annually, throughout the life of the program; and WHEREAS, the City has determined to use the City apportionment and pursue discretionary amounts to fund SLO Transit capital projects; and WHEREAS, the City is requesting 100% of its annually allocated amount and additional annually awarded discretionary amounts; and WHEREAS, the filing and receipt of such LCTOP grant will impose certain reporting obligations upon the City and will require the City to provide a local share of the project costs; and Packet Page 39 Item 4 Resolution No. _____ (2020 Series) Page 2 R ______ NOW, THEREFORE, BE IT RESOLVED that the Council of the City of San Luis Obispo does hereby authorize the City Manager or his designee, to file, execute and fulfill any related Low Carbon Transportation Operations Program grant applications, certifications, assurances, forms, agreements, and associated documents on behalf of the City. Upon motion of _______________________, seconded by _______________________, and on the following roll call vote: AYES: NOES: ABSENT: The foregoing resolution was adopted this _____ day of _____________________ 2020. ____________________________________ 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 _____________________________, 2020. ____________________________________ Teresa Purrington City Clerk Packet Page 40 Item 4 Department Name: Police Cost Center: 8000 For Agenda of: Feb 4, 2020 Placement: Consent Estimated Time: N/A FROM: Deanna Cantrell, Chief of Police Prepared By: Brian Amoroso, Operations Captain SUBJECT: SECOND READING OF ORDINANCE NO. 1675 (2020 SERIES) AMENDING MUNICIPAL CODE CHAPTER 5.20 - TAXICABS RECOMMENDATION Adopt Ordinance No. 1675 (2020 Series) (Attachment A) amending Municipal Code Chapter 5.20 (Taxicabs) to be complaint with new laws enacted by the California State Legislature in Assembly Bill 939. DISCUSSION On January 21, 2020 the City Council voted 4:0:1 to introduce Ordinance No. 1675 (2020 Series) amending Chapter 5.20 of the City’s Municipal Code which added additional Operating Regulations to taxicabs operating in San Luis Obispo. Previous Council or Advisory Body Action January 21, 2020, Council introduced Ordinance 1675 (2020 Series) amending Chapter 5.20 of the City’s Municipal Code. The Council Agenda Report for the January 21, 2020 Council hearing is provided in Attachment B. Policy Context California Assembly Bill 939 was enacted by the State Legislature on September 18, 2018, which amended Sections 53075.5, 53075.51 and 53075.52 of the Government Code. These sections govern the obligations of a City related to taxicab companies and local regulation. Due to the changes in the Government Code, modification of section 5.20 of the municipal code is needed to reflect the new laws. Public Engagement The proposed amendment is required to comply with Assembly Bill 939 which was a publicly debated and adopted statewide bill. 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. Packet Page 41 Item 5 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: 2019-2020 Funding Identified: No Fiscal Analysis: Funding Sources Total Budget Available Current Funding Request Remaining Balance Annual Ongoing Cost General Fund n/a n/a n/a n/a State Federal Fees Other: Total n/a n/a n/a n/a There is no fiscal impact in amending the Municipal Code to comply with amendments to the California Government Code as a result of Assembly Bill 939. ALTERNATIVES Council could choose to not accept these amendments to the Municipal Code, however these changes are codified and required by law. Attachments: a - Ordinance No. 1675 (2020 Series) b - Council Agenda Report from January 21, 2020 Council Meeting Packet Page 42 Item 5 O 1675 ORDINANCE NO. 1675 (2020 SERIES) AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SAN LUIS OBISPO, CALIFORNIA, AMENDING MUNICIPAL CODE TITLE 5.20 REGARDING TAXICABS WHEREAS, the California Legislature issued an update to California Government Code 53075.5 pertaining to taxicab transportation service, driver's permit, drug testing, local ordinances, and regulations; and WHEREAS, the update to the California Government Code 533075.5 went into effect on January 1, 2019; and WHEREAS, the City of San Luis Obispo amends its Municipal Code Title 5.20 pertaining to taxicabs to comply with California Government Code 53075.5’s legislative update. NOW, THEREFORE, BE IT ORDAINED by the Council of the City of San Luis Obispo as follows: SECTION 1. Section 5.20.200 of the San Luis Obispo Municipal Code, entitled Operating regulations, is hereby amended to read as follows: 5.20.200 Operating regulations A. A permitted taxicab company shall comply with the requirements set forth in Government Code Section 53075.5(h)(1-9) B. (1) It shall be unlawful to operate a taxicab without a valid permit to operate issued by the City of San Luis Obispo where the taxicab company is substantially located within the City of San Luis Obispo. (2) The minimum fine for violation of paragraph (1) shall be five thousand dollars ($5,000) and may be imposed administratively by the City of San Luis Obispo. C. Any driver employed to transport passengers to a definite point shall take the most direct route possible that will carry his or her passenger to his or her destination safely and expeditiously. D. No driver of any licensed taxicab shall prejudice, disadvantage, or require different rates or provide different service to a person because of race, national origin, religion, color, ancestry, physical disability, medical condition, occupation, marital status or change in marital status, sex or any characteristic listed or defined in Government Code Section 11135. Packet Page 43 Item 5 Ordinance No. 1675 (2020 Series) Page 2 O 1675 E. No driver of any licensed taxicab shall refuse any person prompt taxi service in the city at any time while such taxicab is on the public streets ready for service, unless taxicab is already engaged in the carrying of one or more passengers or is en route to answer a call for taxicab service; provided further, that nothing in this subsection shall require any owner or driver to furnish taxicab service to any person under the influence of intoxicating liquor or narcotics, or to any person who is insane or who is a known criminal. F. Every driver, upon request, shall give a correct receipt for the amount of payment received. G. No driver of any taxicab shall accept, take into his or her vehicle or transport any larger number of passengers than the rates covering the seating capacity of his or her vehicle. H. No driver shall permit any taxicab to remain standing in any established taxicab stand, unless the cab is attended by a driver or operator, except when assisting passengers to load or unload, or when answering the telephone. I. No driver shall carry any passenger other than paying passengers or persons authorized by or on company business. J. Every driver shall at all times display his or her driver’s permit and picture in a conspicuous place in the taxicab which he or she is operating. K. Any violation of the provisions of this section shall be cause for the revocation of the permit of the driver guilty of such violation. (Prior code § 6240.18) SECTION 2. Section 5.20.250 of the San Luis Obispo Municipal Code, entitled Return of driver’s permit upon termination of employment, is hereby amended to read as follows: 5.20.250 Return of driver’s permit upon termination of employment. The driver employer shall notify the chief of police of his or her the driver’s termination of employment with the listed employer and shall return the driver’s permit to the chief of police. The driver’s permit shall become null and void upon the driver’s termination of employment. (Ord. 1298 § 1, 1996) SECTION 3. Section 5.20.280 of the San Luis Obispo Municipal Code, entitled Taximeter - Required, is hereby amended to read as follows: Packet Page 44 Item 5 Ordinance No. 1675 (2020 Series) Page 3 O 1675 5.20.280 Taximeter – Required All taxicabs operated under the authority of this chapter shall, within thirty days after written notice by the city, be equipped with meters fastened in front of the passengers, visible to them at all times of the day or night; and after sundown the face of the meter shall be illuminated, the accuracy of meters to be installed shall be tested, approved and sealed by the county department of weights and measures at all points and connections which, if manipulated, would affect their correct reading and recording. The taxi company may use any type of device or technology reviewed by the Division of Measurement Standards to calculate fares, including using Global Positioning System metering, provided that the device or technology complies with Business and Professions Code Section 12500.5 and with regulations established pursuant to Business and Professions Code Section 12107. Each meter shall have a flag or approved device to denote when the vehicle is employed and when it is not employed and it shall be the duty of the driver to throw the flag or device into a recording position when employed and into a nonrecording position at the termination of each trip. The meter shall be subject to inspection from time to time and upon discovery of any inaccuracies therein, the taxi shall be kept off the highway until the meter is repaired or replaced. (Prior code § 6240.28) 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. Packet Page 45 Item 5 Ordinance No. 1675 (2020 Series) Page 4 O 1675 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 New Times, 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 21st day of January 2020, AND FINALLY ADOPTED by the Council of the City of San Luis Obispo on the ____ day of ____, 2020, 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 _____________________________, 2020. ______________________________ Teresa Purrington City Clerk Packet Page 46 Item 5 Department Name: Police Cost Center: 8001 For Agenda of: January 21, 2020 Placement: Consent Estimated Time: N/A FROM: Deanna Cantrell, Chief of Police Prepared By: Brian Amoroso, Operations Captain SUBJECT: INTRODUCE AN ORDINANCE AMENDING CHAPTER 5.20 (TAXICABS) OF THE SAN LUIS OBISPO MUNICIPAL CODE RECOMMENDATION Introduce an Ordinance amending Chapter 5.20 of the San Luis Obispo Municipal Code (Attachment A) to comply with new provisions set forth by the California State Legislature in Assembly Bill 939. DISCUSSION California Assembly Bill 939 was enacted by the State Legislature on September 18, 2018, which amended Sections 53075.5, 53075.51 and 53075.52 of the Government Code. These sections govern the obligations of a City related to taxicab companies and local regulation. As a result of this Assembly Bill, section 5.20 of the City of San Luis Obispo Municipal Code requires an amendment to comply with the provisions of the amended Government Code, Section 53075.5. The following changes to section 5.20 of the City of San Luis Obispo Municipal Code are recommended in order to comply with Assembly Bill 939. Suggested changes are bolded, with deletions in strikethrough. Text in italics is provided for reference. Amend Section 5.20.200 Operating Regulations to read as follows: A. A permitted taxicab company shall comply will the requirements set forth in Government Code Section 53075.5(h)(1-9) For reference, Government Code 53075.5: (h) A permitted taxicab company shall do all of the following: (1) Maintain reasonable financial responsibility to conduct taxicab transportation services in accordance with the requirements of an ordinance adopted pursuant to subdivision (a). (2) Participate in the pull-notice program pursuant to Section 1808.1 of the Vehicle Code to regularly check the driving records of all taxicab drivers, whether employees or contractors. Item 10 Packet Page 197Packet Page 47 Item 5 (3) Maintain a safety education and training program in effect for all taxicab drivers, whether employees or contractors. (4) Maintain a disabled access education and training program to instruct its taxicab drivers on compliance with the federal Americans with Disabilities Act of 1990 (42 U.S.C. Sec. 12101 et seq.) and amendments thereto, and state disability rights laws, including making clear that it is illegal to decline to serve a person with a disability or who has a service animal. (5) Maintain its motor vehicles used in taxicab transportation services in a safe operating condition, and in compliance with the Vehicle Code, subject to annual inspection by the city or county in which it is substantially located, at a facility that is certified by the National Institute for Automotive Service Excellence or a facility registered with the Bureau of Automotive Repair. (6) Provide the city or county that has issued a permit under this article an address of an office or terminal where documents supporting the factual matters specified in the showing required by this subdivision may be inspected by the permitting city or county. (7) Provide for a taxicab driver fingerprint-based criminal history check and a drug and alcohol testing program pursuant to paragraph (3) of subdivision (b). (8) Comply with all provisions of an ordinance adopted pursuant to subdivision (a). (9) Provide documentation and trip data in the format required by an ordinance adopted pursuant to subdivision (a) substantiating that the total number of prearranged and non-prearranged trips that originate within that city’s or county’s jurisdiction account for the largest share of the taxicab company’s total number of trips over the applicable time period described in clause (ii) of subparagraph (A) or subclause (II) of clause (ii) of subparagraph (B) of paragraph (5) of subdivision (k). B. (1) It shall be unlawful to operate a taxicab without a valid permit to operate issued by the City of San Luis Obispo where the taxicab company is substantially located within the City of San Luis Obispo. (2) The minimum fine for violation of paragraph (1) shall be five thousand dollars ($5,000) and may be imposed administratively by the City of San Luis Obispo. C. A Any driver employed to transport passengers to a definite point shall take the most direct route possible that will carry his or her passenger to his or her destination saf ely and expeditiously. D. No driver of any licensed taxicab shall prejudice, disadvantage, or require different rates or provide different service to a person because of race, national origin, religion, color, ancestry, physical disability, medical condition, occupation, marital status or change in marital status, sex or any characteristic listed or defined in Government Code Section 11135. Item 10 Packet Page 198Packet Page 48 Item 5 E. B. No driver of any licensed taxicab shall refuse any person prompt taxi service in the city at any time while such taxicab is on the public streets ready for service, unless taxicab is already engaged in the carrying of one or more passengers or is en -route to answer a call for taxicab service; provided further, that nothing in this subsection shall require any owner or driver to furnish taxicab service to any person under the influence of intoxicating liquor or narcotics, or to any person who is insane or who is a known criminal. F. C. Every driver, upon request, shall give a correct receipt for the amount of paym ent received. G. D. No driver of any taxicab shall accept, take into his or her vehicle or transport any larger number of passengers than the rates covering the seating capacity of his or her vehicle. H. E. No driver shall permit any taxicab to remain standing in any established taxicab stand, unless the cab is attended by a driver or operator, except when assisting passengers to load or unload, or when answering the telephone. I. F. No driver shall carry any passenger other than paying passengers or persons authorized by or on company business. J. G. Every driver shall at all times display his or her driver’s permit and picture in a conspicuous place in the taxicab which he or she is operating. K. H. Any violation of the provisions of this section shall be cause for the revocation of the permit of the driver guilty of such violation. (Prior code § 6240.18) Amend Section 5.20.250 Return of Driver’s permit upon termination of employment to read as follows: The driver employer shall notify the chief of police of his or her the driver’s termination of employment with the listed employer and shall return the driver’s permit to the chief of police. The driver’s permit shall become null and void upon the driver’s termination of employment. (Ord. 1298 § 1, 1996) Amend Section 5.20.280 Taximeter – Required to read as follows: All taxicabs operated under the authority of this chapter shall, within thirty days after written notice by the city, be equipped with meters fastened in front of the passengers, visible to them at all times of the day or night; and after sundown the face of the meter shall be illuminated, the accuracy of meters to be installed shall be tested, approved and sealed by the county department of weights and measures at all points and connections which, if manipulated, would affect their correct reading and recording. The taxi company may use any type of device or technology reviewed by the Division of Measurement Standards to calculate fares, including using Global Positioning System metering, provided that the device or technology complies with Business and Professions Code Section 12500.5 Item 10 Packet Page 199Packet Page 49 Item 5 and with regulations established pursuant to Business and Professions Code Section 12107. Each meter shall have a flag or approved device to denote when the vehicle is employed and when it is not employed and it shall be the duty of the driver to throw the flag or device into a recording position when employed and into a nonrecording position at the termination of each trip. The meter shall be subject to inspection from time to time and upon discovery of any inaccuracies therein, the taxi shall be kept off the highway until the meter is repaired or replaced. (Prior code § 6240.28) Policy Context California Assembly Bill 939 was enacted by the State Legislature on September 18, 2018, which amended Sections 53075.5, 53075.51 and 53075.52 of the Government Code. These sections govern the obligations of a City related to taxicab companies and local regulation. Assembly Bill 939 (Attachment B) California Government Code 53075.5 (Attachment C) California Government Code 53075.51 (Attachment D) California Government Code 53075.52 (Attachment E) Current San Luis Obispo Municipal Code Section 5.20 (Attachment F) Public Engagement The proposed amendment is required to comply with Assembly Bill 939 which was a publicly debated and adopted statewide bill. 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. 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. Item 10 Packet Page 200Packet Page 50 Item 5 FISCAL IMPACT Budgeted: No Budget Year: Funding Identified: N/A Fiscal Analysis: Funding Sources Total Budget Available Current Funding Request Remaining Balance Annual Ongoing Cost General Fund N/A State Federal Fees Other: Total The changes required by Assembly Bill 939 require the taxicab companies comply with the ordinance. The only fiscal impact to the City would be in the form of staff time processing a violation to the ordinance which can be accommodated within current budgetary allocations. ALTERNATIVES Council could choose to not accept these amendments to the Municipal Code, however these changes are codified and required by law. Attachments: a - Draft Ordinance b - Assembly Bill 939 c - Government Code 53075.5 d - Government Code 53075.51 e - Government Code 53075.52 f - COUNCIL READING FILE - San Luis Obispo Municipal Code 5.20 - Taxicabs Item 10 Packet Page 201Packet Page 51 Item 5 Page intentionally left blank. Packet Page 52 Item 5 Department Name: Finance Cost Center: 2003 For Agenda of: February 4, 2020 Placement: Consent Estimated Time: N/A FROM: Brigitte Elke, Finance Director Prepared By: Natalie Harnett, Interim Principal Budget Analyst SUBJECT: SECOND READING OF ORDINANCE NO. 1674 (2020 SERIES) AMENDING DESIGNATED PORTIONS OF THE CITY OF SAN LUIS OBISPO MUNICIPAL CODE SECTION 3.04.020, SECTION 3.04.080, SECTION 3.04.090, SECTION 3.04.100 AND SECTION 3.04.130 OF MUNICIPAL CODE CHAPTER 3.04 – TRANSIENT OCCUPANCY TAX. RECOMMENDATION Adopt Ordinance No. 1674 (2020 Series) (Attachment A) amending Municipal Code Title 3.04 Transient Occupancy Tax (TOT) to revise action to collect applicable tax assessments and to clarify the process to appeal. DISCUSSION On January 14, 2020, the City Council voted 5:0 to introduce Ordinance No. 1674 (2020 Series) amending sections 3.04.020, 3.04.080, 3.04.090, 3.04.100, 3.04.130 of City of San Luis Obispo’s (City) Municipal Code. The amendments were introduced due to significant changes in the lodging industry since the adoption of Chapter 3.04 in 1955. The amendments introduce the use of property liens to collect unpaid Transient Occupancy Tax (TOT) and clarify the appeal process for TOT assessments. Ordinance No. 1674 is now ready for adoption. The code revisions will become effective 30 days after the final adoption of the ordinance. The City Council agenda report from January 14, 2020, is included as Attachment B. Policy Context The ordinance to establish Municipal Code Section 3.04 was implemented in 1955. The tax was assessed at 10% of the room rent and is applicable for all stays under 30 days. Chapter 3.04 of the City’s Municipal Code is the governing document for TOT. Public Engagement Consistent with the City’s Municipal Code, a legal ad was published in the New Times 10 days prior to the City Council meeting. The item was brought forth as a public hearing item on January 14, 2020. The changes were also presented to the City’s Tourism Business Improvement District Board and thate board supported of the changes to the TOT chapter as recommended. Public comment can be provided to the City Council through written correspondence prior to the meeting and through public testimony at the meeting. Packet Page 53 Item 6 CONCURRENCE The Finance Department communicates directly with Code Enforcement to identify noncompliance operators and customers with delinquent taxes. The Finance Department, Community Development Department, and the City Attorney’s office have been working closely to accomplish a process to enforce delinquent TOT assessments and payments. 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: 2019-20 Funding Identified: N/A Fiscal Analysis: Funding Sources Current FY Cost Annualized On-going Cost Total Project Cost General Fund State Federal Fees Other: Total The changes to the code have no fiscal impact. However, there are approximately 64 homestays operating in the City that remain unpermitted and have yet to remit TOT that is assessed at $400,000. ALTERNATIVES 1. Do not adopt and implement the recommended Code revisions. This is not recommended because it will limit the City’s ability to collect TOT assessments effectively. 2. Direct staff to make modifications to Ordinance 1674 (2020 Series). Attachments: a - Ordinance No. 1674 (2020 Series) b - Staff Report from January 14, 2020 Council Meeting Packet Page 54 Item 6 O ______ ORDINANCE NO. _____ (2020 SERIES) AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SAN LUIS OBISPO, CALIFORNIA, AMENDING SECTIONS 3.04.020, SECTION 3.04.080, SECTION 3.04.090, SECTION 3.04.100 AND SECTION 3.04.130 OF MUNICIPAL CODE TITLE 3.04 – TRANSIENT OCCUPANCY TAX WHEREAS, the City of San Luis Obispo adopted its transient occupancy tax in 1955; and WHEREAS, since then the lodging industry has changed significantly through the availability of homestay rentals; and WHEREAS, the City’s ordinance governing the lodging tax requires amendment to address some of the unique circumstances surrounding homestays; and WHEREAS, the City of San Luis Obispo amends designated portions of its Municipal Code Title 3.04 – Transient Occupancy Tax. NOW, THEREFORE, BE IT ORDAINED by the Council of the City of San Luis Obispo as follows: SECTION 1. Recitals. The above recitals are true and correct and are incorporated herein as the findings of the Council by this reference. SECTION 2. Section 3.04.020 of the San Luis Obispo Municipal Code, entitled Definitions, is hereby amended to read as follows: 3.04.020 Definitions Except where the context otherwise requires, the definitions given in this section govern the construction of this chapter: A. “Effective Date of Tax Administrator’s Decision” The date specified in the tax administrator’s decision as the effective date. Generally, the effective date will be the date the tax administrator’s decision is issued. B. “Hotel” means any structure, or any portion of any structure, which is occupied or intended or designed for occupancy by transients for dwelling, lodging or sleeping purposes, and includes any hotel, inn, tourist home or house, motel, studio hotel, bachelor hotel, lodging house, rooming house, apartment house, a homestay, dormitory, public or private club, mobile home or house trailer at a fixed locat ion, or other similar structure or portion thereof. Packet Page 55 Item 6 Ordinance No. _____ (2020 Series) Page 2 O ______ C. “Occupancy” means the use or possession, or the right to the use or possession of any room or rooms or portion thereof, in any hotel for dwelling, lodging or sleeping purposes. D. “Operator” means the person who is proprietor of the hotel, whether in the capacity of owner, lessee, sublessee, mortgagee in possession, licensee, or any other capacity. Where the operator performs his or her functions through a managing agent of any type or character other than an employee, the managing agent shall also be deemed an operator for the purposes of this chapter and shall have the same duties and liabilities as his or her principal. Compliance with the provisions of this chapter by either the principal or the managing agent shall, however, be considered to be compliance by both. E. “Person” means any individual, firm, partnership, joint venture, association, social club, fraternal organization, joint stock company, corporation, estate, trust, business trust, receiver, trustee, syndicate, or any other group or combination acting as a unit. F. “Rent” means the consideration charged, whether or not received, for the occupancy of a space in a hotel valued in money, whether to be received in money, goods, labor or otherwise, including all receipts, cash, credits and property and services of any kind or nature, without any deduction therefrom whatsoever. G. “Tax administrator” means the city tax collector or city finance director, or his or her designee, for the City of San Luis Obispo. H. “Transient” means any person who exercises occupancy or is entitled to occupancy by reason of concession, permit, right of access, license or other agreement for a period of thirty consecutive calendar days or less, counting portions of calendar days as full days. Any such person so occupying space in a hotel shall be deemed to be a transient until the period of thirty days has expired unless there is an agreement in writing between the operator and the occupant providing for a longer period of occupancy. In determining whether a person is a transient, uninterrupted periods of time extending both prior and subsequent to the effective date of this chapter may be considered. (Prior code § 2551) SECTION 3. Section 3.04.080 of the San Luis Obispo Municipal Code, entitled Delinquencies and penalties, is hereby amended to read as follows: Packet Page 56 Item 6 Ordinance No. _____ (2020 Series) Page 3 O ______ 3.04.080 Delinquencies and penalties A. Delinquency. Any operator who fails to remit any tax imposed by this chapter within the time required shall pay a penalty the amount of which will be set by the tax administrator or by resolution of the city council. SECTION 4. Section 3.04.090 of the San Luis Obispo Municipal Code, entitled Failure to collect and report tax—Determination of tax by tax administrator, is hereby amended to read as follows: 3.04.090 Failure to collect and report tax – Determination of tax by tax administrator If any operator fails or refuses to collect the tax and to make, within the time provided in this chapter, any report and remittance of the tax or any portion thereof required by this chapter, the tax administrator shall proceed in such manner as he or she may deem best to obtain facts and information on which to base his or her estimate of the tax due. As soon as the tax administrator shall procure such facts and information as he or she is able to obtain upon which to base the assessment of any tax imposed by this chapter and payable by any operator who has failed or refused to collect the same and to make such report and remittance, he or she shall proceed to determine and assess against such operator the tax, interest and penalties provided for by this chapter. In case such determination is made, the tax administrator shall give a notice of the amount so assessed by serving it personally or by certified U.S. mail, postage prepaid, addressed to the operator so assessed at his or her last known place of address. Such operator may within ten days after the serving or mailing of such notice make application in writing to the tax administrator for a hearing on the amount assessed. The operator’s application for a hearing must be delivered to the City of San Luis Obispo’s Finance Department or postmarked within ten days after the serving or mailing of such notice. If application by the operator for a hearing is not made within the time prescribed, the tax, interest and penalties, if any, determined by the tax administrator shall become final and conclusive and immediately due and payable. If such application is made, the tax administrator shall give not less than five days’ written notice in the manner prescribed herein to the operator to show cause at a time and place fixed in the notice why the amount specified therein should not be fixed for such tax, interest and penalties. At such hearing, the operator may appear and offer evidence why such specified tax, interest and penalties should not be so fixed. After such hearing the tax administrator shall determine the proper tax to be remitted and shall thereafter give written notice to the person in the manner prescribed herein of such determination and the amount of such tax, interest and penalties. The amount determined to be due shall be payable after fifteen days unless an appeal is taken as provided in Section 3.04.100. (Prior code § 2558) SECTION 5. Section 3.04.100 of the San Luis Obispo Municipal Code, entitled Appeal, is hereby amended to read as follows: Packet Page 57 Item 6 Ordinance No. _____ (2020 Series) Page 4 O ______ 3.04.100 Appeal 1. Appeal. Any operator aggrieved by any decision of the tax administrator with respect to the amount of such tax, interest and penalties, if any, may appeal. To appeal the tax administrator’s determination, the appellant shall comply with the appeals process as set forth in Chapter 1.20. to the council by filing a notice of appeal with the city clerk within fifteen days of the serving or mailing of the determination of tax due. The council shall fix a time and place for hearing such appeal, and the city clerk shall give notice in writing to such operator at his or her last known place of address. 2. Contents of Appeal. The written appeal shall state the following information: a. A caption setting forth the names, addresses, phone numbers and other contact information of the appellant(s) and the operator, if the appellant and operator are not the same, participating in the appeal. b. A brief statement setting forth the interest of the appellant(s), either as the recipient of the notice of tax administrator’s determination, or the legal interest of the appellant(s) in the hotel or property that is the subject of the notice of tax administrator’s determination. c. A brief statement describing: i. The specific notice of tax administrator’s determination being appealed, by the day of the notice of tax administrator’s determination, address of the hotel or property; and ii. Whether all or only specified tax, interest, penalties are being appealed; and iii. Why the tax administrator’s determination should be revoked, modified or otherwise set aside. d. A statement that all of the matters alleged in the appeal are true, followed by the signature(s) of each appellant(s), and one official mailing address for the appellant(s) to receive further notices from City relating to the appeal. 3. Hearing Procedures for Appeal. a. Records for Appeal. The tax administrator, or his or her designee, shall ensure that the tax administrator’s determination and any supporting documentation are delivered to the applicable city clerk in sufficient time prior to the appeal hearing. b. Failure to Appear. The failure of the appellant(s) to appear at the hearing, unless the hearing was continued per subsection g of this section, or unless the appellant(s) has submitted written evidence per subsection f of this section, shall constitute an abandonment of the appeal. Packet Page 58 Item 6 Ordinance No. _____ (2020 Series) Page 5 O ______ 4. Findings of the Council. The findings of the council shall by final and conclusive and shall be served upon the appellant in the manner prescribed in Section 3.04.090 for service of notice of hearing. Any amount found to be due shall be immediately due and payable upon the service of notice. SECTION 6. Section 3.04.130 of the San Luis Obispo Municipal Code, entitled Actions to Collect, is hereby amended to read as follows: 3.04.130 Actions to Collect 1. Actions. Any tax required to be paid by any transient under the provisions of this chapter shall be deemed a debt owed by the transient to the city. Any such tax collected by an operator which has not been paid to the city shall be deemed a debt owed by the operator to the city. Any person owing money to the city under the provisions of this chapter shall be liable to an action brought in the name of the city for the recovery of such amount. (Prior code § 2562). 2. Liens. To recover any delinquent tax as a lien on real property, the following conditions must be met: a. The tax administrator must submit to and receive approval from the city council for a resolution certifying the amounts of the liens sought to be collected from the operator; and b. The total amount of the delinquent tax against the operator must be delinquent for sixty days or more. 3. Lien Collections. The tax administrator is authorized to take any steps necessary to enforce collection of the lien, including but not limited to request the county recorder to record a notice of any lien certified by resolution of the city council. 4. Notice of Lien Collection Procedures. All notice of the amount so assessed by the tax administrator or city council shall contain a notice that unpaid taxes, interest and penalties are subject to the lien collection procedures of this chapter. In addition, the tax administrator shall by first class mail send notice to each operator and property owner at least ten days before the city council considers the resolution to certify the amounts of the liens and special assessments stating the date, time, and location of the meeting. The lien shall be imposed on the date the tax administrator’s determination or city council’s decision is issued to the responsible person and shall become effective upon the recording of a notice of lien by the county recorder. Packet Page 59 Item 6 Ordinance No. _____ (2020 Series) Page 6 O ______ 5. Contesting Certification of a Lien. A person may contest the amount or the validity of any lien for unpaid taxes, interest and penalties at the public hearing when the city council considers the resolution to certify the liens. Such contests shall be limited to the issue of the amount or validity of the lien and may not consider whether the delinquency occurred. Pursuit of such a contest by a person is necessary to exhaust the administrative remedies concerning a legal challenge to the validity of any such lien. SECTION 7. 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 8. Environmental Review. The proposed ordinance amendment is exempt from environmental review requirements of the California Environmental Quality Act (CEQA) because the adoption of this Ordinance is not a project as defined in CEQA Guidelines Section 15378 because it can be seen with certainty that it will not result in either a direct physical change in the environment or a reasonably foreseeable indirect physical change in the environment.. SECTION 9. Ordinance Number 1234 (1993 Series) is hereby amended and superseded to the extent inconsistent herewith. Packet Page 60 Item 6 Ordinance No. _____ (2020 Series) Page 7 O ______ SECTION 10. 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 New Times, 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 14th day of January 2020, AND FINALLY ADOPTED by the Council of the City of San Luis Obispo on the ____ day of ________ 2020, 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 ______________________________, 2020. ______________________________ Teresa Purrington City Clerk Packet Page 61 Item 6 Department Name: Finance Cost Center: 2003 For Agenda of: January 14, 2020 Placement: Public Hearing Estimated Time: 30 Minutes FROM: Brigitte Elke, Finance Director Prepared By: Natalie Harnett, Interim Budget Analyst SUBJECT: INTRODUCE AN ORDINANCE AMENDING DESIGNATED PORTIONS OF THE CITY OF SAN LUIS OBISPO MUNICIPAL CODE SECTION 3.04.020, SECTION 3.04.080, SECTION 3.04.090, SECTION 3.04.100 AND SECTION 3.04.130 OF MUNICIPAL CODE CHAPTER 3.04 – TRANSIENT OCCUPANCY TAX. RECOMMENDATION Introduce an ordinance amending Municipal Code Chapter 3.04 Transient Occupancy Tax (TOT) to revise action to collect applicable tax assessments and to clarify the process to appeal. DISCUSSION Background Over the past years, the lodging industry has changed dramatically with homestays entering the market and changing the landscape of short-term rentals and the applicable tax due to the City. A fair number of these rentals are booked through third-party services and are in compliance with the City’s tax law. The City utilizes a third-party compliance company, Host Compliance, that estimates at least 64 homestays currently operating in the City without the required permits and have not been remitting TOT. Host Compliance estimates that over $441,862 in TOT debt are owed to the City considering back-taxes due since the homestays began renting. In June 2018, the City and Airbnb (the largest third-party homestay online portal) reached an agreement that provides that Airbnb will automatically collect the 10% TOT, 1% Tourism Marketing District assessment and the 2% Business Improvement District assessment. These required taxes and assessments will be automatically added to the amounts collected from renters when a reservation is made on Airbnb for a stay in the City. However, Airbnb remits the TOT as a “total amount” and does not disclose specific lodging or property information about what properties it is collected from. The lack of information on specific properties makes it difficult to ascertain which specific properties are remitting TOT and which are not. The City therefore served its first batch of Violation Notice letters to homestay operators in June 2018. The enforcement letters were sent in batches because many operators contact the City after receiving the correspondence, requesting clarification and additional information. This approach Packet Page 115 Item #11 Packet Page 62 Item 6 allows for better management of the triggered workload. To date, the City has sent 66 letters. The total TOT revenue for back-taxes owed generated from these enforcements is approximately $75,507. Though there has been some compliance, staff recommends the City consider stronger actions to collect from those operators who do not respond to permitting and tax collection efforts and thus ensure compliance with adopted city policies and that there is a fair playing field so to speak relative to brick and mortar lodging opportunities. Actions to Collect As a charter city, the City has the plenary power to legislate on matters of municipal affairs. This power includes the ability to impose, administer and collect taxes. Further, Government Code section 43000 and 43001 provide that a city may make an ordinance allowing for the assessment, levy and collection of city taxes. Therefore, staff is recommending that, if the amount of tax due is not paid, the tax administrator may submit a request to the City Council to approve a resolution certifying the amounts of any liens being sought against an operator. After receiving the requisite City Council approval, the tax administrator may take the necessary steps to enforce the lien, which includes but is not limited to, requesting the O ffice of the San Luis Obispo County Recorder to record a Notice of Lien. This process coincides and mirrors the adopted current policy and practice by which the City collects unpaid fines and other debts related to code enforcement, fire safety, and solid waste violations. Appeal The ordinance currently allows customers to appeal to the Council by filing a notice of appeal with the City Clerk’s office within fifteen days of the Tax Administrator’s decision. Clarification on the contents to appeal and the hearing procedures were added as ordinance revisions. Given the importance of the tax and its revenue stream to the City’s General Fund, staff does not recommend changing this practice. As it is also a matter of creating fair competition amongst the lodging industry by enforcing the same dues on all short-term rental operators, an appeal before Council will allow the public to better understand the City’s efforts that are affecting neighborhoods. If Council would like to place appeals in before the City’s administrative body, staff can return with any recommended actions and changes to city practices and policies. Policy Context The ordinance to collect TOT was implemented in 1955. The tax was assessed at 10% of room rent and is applicable for all stays under 30 days. Chapter 3.04 of the City’s Municipal Code is the governing document for TOT. Public Engagement Consistent with the City’s Municipal code, a legal ad was published in the New Times 10 days prior to the Council meeting. Public comment on the item can be provided to the City Council through written correspondence prior to the meeting and through public testimony at the meeting. Tourism Business Improvement District Board (TBID) The City’s advisory body for tourism is staffed by members of the local lodging industry. The enforcement of TOT from homestays has been a frequent topic as places equality amongst all lodging establishments. The proposed changes were presented to the TBID board on November 13, 2019 and the board is in support of the changes to the TOT chapter as recommended. Packet Page 116 Item #11 Packet Page 63 Item 6 CONCURRENCE The Finance Department communicates directly with Code Enforcement to identify non- compliant operators and customers with delinquent taxes. The Finance Department, Community Development Department, and the City Attorney’s office have been working closely to accomplish a process to enforce homestay compliance. 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 Current FY Cost Annualized On-going Cost Total Project Cost General Fund $16,333 State Federal Fees Other: Total $16,333 The City has a current contract with the company assisting with the enforcement of homestay operators. The contractual amount is $16,333 and has been budgeted for in 2019-20 in the Community Development operating budget. The proposed revisions are anticipated to have a positive fiscal impact because they sh ould clarify and streamline the collection process and result in increased revenue from collection of operators who have not remitted TOT thus far. It will also help enforce homestay compliance with the City’s permitting requirement. However, there is a cost associated with the cases heard by the City Council which would be absorbed by current appropriated budget. The City intends to work with operators and rectify appeals at the Tax Administrator level before they proceed to Council. If undue burden is p ut on the City Council from TOT appeals, further changes to the ordinance will be made to change the appeal process. Because homestay enforcement is such a new process for the City, staff believes it would be most effective to leave the appeals process as currently written until it can gauge the response from operators. Packet Page 117 Item #11 Packet Page 64 Item 6 ALTERNATIVES 1. Do not adopt and implement the recommended Code revisions. This is not recommended because it will limit finance tax collection effectiveness. 2. Provide changes to the proposed ordinance and introduce the ordinance for a first reading. Attachments: a - Revised TOT Ordinance Packet Page 118 Item #11 Packet Page 65 Item 6 O ______ ORDINANCE NO. _____ (2020 SERIES) AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SAN LUIS OBISPO, CALIFORNIA, AMENDING SECTIONS 3.04.020, SECTION 3.04.080, SECTION 3.04.090, SECTION 3.04.100 AND SECTION 3.04.130 OF MUNICIPAL CODE TITLE 3.04 – TRANSIENT OCCUPANCY TAX WHEREAS, the City of San Luis Obispo adopted its transient occupancy tax in 1955; and WHEREAS, since then the lodging industry has changed significantly through the availability of homestay rentals; and WHEREAS, the City’s ordinance governing the lodging tax requires amendment to address some of the unique circumstances surrounding homestays; and WHEREAS, the City of San Luis Obispo amends designated portions of its Municipal Code Title 3.04 – Transient Occupancy Tax. NOW, THEREFORE, BE IT ORDAINED by the Council of the City of San Luis Obispo as follows: SECTION 1. Recitals. The above recitals are true and correct and are incorporated herein as the findings of the Council by this reference. SECTION 2. Section 3.04.020 of the San Luis Obispo Municipal Code, entitled Definitions, is hereby amended to read as follows: 3.04.020 Definitions Except where the context otherwise requires, the definitions given in this section govern the construction of this chapter: A. “Effective Date of Tax Administrator’s Decision” The date specified in the tax administrator’s decision as the effective date. Generally, the effective date will be the date the tax administrator’s decision is issued. B. “Hotel” means any structure, or any portion of any structure, which is occupied or intended or designed for occupancy by transients for dwelling, lodging or sleeping purposes, and includes any hotel, inn, tourist home or house, motel, studio hotel, bachelor hotel, lodging ouse, rooming house, apartment house, a homestay, dormitory, public or private club, mobile home or house trailer at a fixed location, or other similar structure or portion thereof. C. “Occupancy” means the use or possession, or the right to the use or possession of any room or rooms or portion thereof, in any hotel for dwelling, lodging or sleeping purposes. Packet Page 119 Item #11 Packet Page 66 Item 6 Ordinance No. _____ (2020 Series) Page 2 O ______ D. “Operator” means the person who is proprietor of the hotel, whether in the capacity of owner, lessee, sublessee, mortgagee in possession, licensee, or any other capacity. Where the operator performs his or her functions through a managing agent of any type or character other than an employee, the managing agent shall also be deemed an operator for the purposes of this chapter and shall have the same duties and liabilities as his or her principal. Compliance with the provisions of this chapter by either the principal or the managing agent shall, however, be considered to be compliance by both. E. “Person” means any individual, firm, partnership, joint venture, association, social club, fraternal organization, joint stock company, corporation, estate, trust, business trust, receiver, trustee, syndicate, or any other group or combination acting as a unit. F. “Rent” means the consideration charged, whether or not received, for the occupancy of a space in a hotel valued in money, whether to be received in money, goods, labor or otherwise, including all receipts, cash, credits and property and services of any kind or nature, without any deduction therefrom whatsoever. G. “Tax administrator” means the city tax collector or city finance director, or his or her designee, for the City of San Luis Obispo. H. “Transient” means any person who exercises occupancy or is entitled to occupancy by reason of concession, permit, right of access, license or other agreement for a period of thirty consecutive calendar days or less, counting portions of calendar days as full days. Any such person so occupying space in a hotel shall be deemed to be a transient until the period of thirty days has expired unless there is an agreement in writing between the operator and the occupant providing for a longer period of occupancy. In determining whether a person is a transient, uninterrupted periods of time extending both prior and subsequent to the effective date of this chapter may be considered. (Prior code § 2551) SECTION 3. Section 3.04.080 of the San Luis Obispo Municipal Code, entitled Delinquencies and penalties, is hereby amended to read as follows: 3.04.080 Delinquencies and penalties A. Delinquency. Any operator who fails to remit any tax imposed by this chapter within the time required shall pay a penalty the amount of which will be set by the tax administrator or by resolution of the city council. SECTION 4. Section 3.04.090 of the San Luis Obispo Municipal Code, entitled Failure to collect and report tax—Determination of tax by tax administrator, is hereby amended to read as follows: 3.04.090 Failure to collect and report tax—Determination of tax by tax administrator If any operator fails or refuses to collect the tax and to make, within the time provided in this chapter, any report and remittance of the tax or any portion thereof required by this chapter, Packet Page 120 Item #11 Packet Page 67 Item 6 Ordinance No. _____ (2020 Series) Page 3 O ______ the tax administrator shall proceed in such manner as he or she may deem best to obtain facts and information on which to base his or her estimate of the tax due. As soon as the tax administrator shall procure such facts and information as he or she is able to obtain upon which to base the assessment of any tax imposed by this chapter and payable by any operator who has failed or refused to collect the same and to make such report and remittance, he or she shall proceed to determine and assess against such operator the tax, interest and penalties provided for by this chapter. In case such determination is made, the tax administrator shall give a notice of the amount so assessed by serving it personally or by certified U.S. mail, postage prepaid, addressed to the operator so assessed at his or her last known place of address. Such operator may within ten days after the serving or mailing of such notice make application in writing to the tax administrator for a hearing on the amount assessed. The operator’s application for a hearing must be delivered to the City of San Luis Obispo’s Finance Department or postmarked within ten days after the serving or mailing of such notice. If application by the operator for a hearing is not made within the time prescribed, the tax, interest and penalties, if any, determined by the tax administrator shall become final and conclusive and immediately due and payable. If such application is made, the tax administrator shall give not less than five days’ written notice in the manner prescribed herein to the operator to show cause at a time and place fixed in the notice why the amount specified therein should not be fixed for such tax, interest and penalties. At such hearing, the operator may appear and offer evidence why such specified tax, interest and penalties should not be so fixed. After such hearing the tax administrator shall determine the proper tax to be remitted and shall thereafter give written notice to the person in the manner prescribed herein of such determination and the amount of such tax, interest and penalties. The amount determined to be due shall be payable after fifteen days unless an appeal is taken as provided in Section 3.04.100. (Prior code § 2558) SECTION 5. Section 3.04.100 of the San Luis Obispo Municipal Code, entitled Appeal, is hereby amended to read as follows: 3.04.100 Appeal 1. Appeal. Any operator aggrieved by any decision of the tax administrator with respect to the amount of such tax, interest and penalties, if any, may appeal. To appeal the tax administrator’s determination, the appellant shall comply with the appeals process as set forth in Chapter 1.20. to the council by filing a notice of appeal with the city clerk within fifteen days of the serving or mailing of the determination of tax due. The council shall fix a time and place for hearing such appeal, and the city clerk shall give notice in writing to such operator at his or her last known place of address. 2. Contents of Appeal. The written appeal shall state the following information: a. A caption setting forth the names, addresses, phone numbers and other contact information of the appellant(s) and the operator, if the appellant and operator are not the same, participating in the appeal. b. A brief statement setting forth the interest of the appellant(s), either as the recipient of the notice of tax administrator’s determination, or the legal interest of the appellant(s) in the hotel or property that is the subject of the notice of tax administrator’s determination. Packet Page 121 Item #11 Packet Page 68 Item 6 Ordinance No. _____ (2020 Series) Page 4 O ______ c. A brief statement describing: i. The specific notice of tax administrator’s determination being appealed, by the day of the notice of tax administrator’s determination, address of the hotel or property; and ii. Whether all or only specified tax, interest, penalties are being appealed; and iii. Why the tax administrator’s determination should be revoked, modified or otherwise set aside. d. A statement that all of the matters alleged in the appeal are true, followed by the signature(s) of each appellant(s), and one official mailing address for the appellant(s) to receive further notices from City relating to the appeal. 3. Hearing Procedures for Appeal. a. Records for Appeal. The tax administrator, or his or her designee, shall ensure that the tax administrator’s determination and any supporting documentation are delivered to the applicable city clerk in sufficient time prior to the appeal hearing. b. Failure to Appear. The failure of the appellant(s) to appear at the hearing, unless the hearing was continued per subsection g of this section, or unless the appellant(s) has submitted written evidence per subsection f of this section, shall constitute an abandonment of the appeal. 4. Findings of the Council. The findings of the council shall by final and conclusive and shall be served upon the appellant in the manner prescribed in Section 3.04.090 for service of notice of hearing. Any amount found to be due shall be immediately due and payable upon the service of notice. SECTION 6. Section 3.04.130 of the San Luis Obispo Municipal Code, entitled Actions to Collect, is hereby amended to read as follows: 3.04.130 Actions to Collect 1. Actions. Any tax required to be paid by any transient under the provisions of this chapter shall be deemed a debt owed by the transient to the city. Any such tax collected by an operator which has not been paid to the city shall be deemed a debt owed by the operato r to the city. Any person owing money to the city under the provisions of this chapter shall be liable to an action brought in the name of the city for the recovery of such amount. (Prior code § 2562) 2. Liens. To recover any delinquent tax as a lien on real property, the following conditions must be met: Packet Page 122 Item #11 Packet Page 69 Item 6 Ordinance No. _____ (2020 Series) Page 5 O ______ a. The tax administrator must submit to and receive approval from the city council for a resolution certifying the amounts of the liens sought to be collected from the operator; and b. The total amount of the delinquent tax against the operator must be delinquent for sixty days or more. 3. Lien Collections. The tax administrator is authorized to take any steps necessary to enforce collection of the lien, including but not limited to request the county recorder to record a notice of any lien certified by resolution of the city council. 4. Notice of Lien Collection Procedures. All notice of the amount so assessed by the tax administrator or city council shall contain a notice that unpaid taxes, interest and penalties are subject to the lien collection procedures of this chapter. In addition, the tax administrator shall by first class mail send notice to each operator and property owner at least ten days before the city council considers the resolution to certify the amounts of the liens and special assessments stating the date, time, and location of the meeting. The lien shall be imposed on the date the tax administrator’s determination or city council’s decision is issued to the responsible person and shall become effective upon the recording of a notice of lien by the county recorder. 5. Contesting Certification of a Lien. A person may contest the amount or the validity of any lien for unpaid taxes, interest and penalties at the public hearing when the city council considers the resolution to certify the liens. Such contests shall be limited to the issue of the amount or validity of the lien and may not consider whether the delinquency occurred. Pursuit of such a contest by a person is necessary to exhaust the administrative remedies concerning a legal challenge to the validity of any such lien. SECTION 7. 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 8. Environmental Review. The proposed ordinance amendment is exempt from environmental review requirements of the California Environmental Quality Act (CEQA) because the adoption of this Ordinance is not a project as defined in CEQA Guidelines Section 15378 because it can be seen with certainty that it will not result in either a direct physical change in the environment or a reasonably foreseeable indirect physical change in the environment.. SECTION 9. Ordinance Number 1234 (1993 Series) is hereby amended and superseded to the extent inconsistent herewith. SECTION 10. 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 Packet Page 123 Item #11 Packet Page 70 Item 6 Ordinance No. _____ (2020 Series) Page 6 O ______ New Times, 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 ____, 2020, AND FINALLY ADOPTED by the Council of the City of San Luis Obispo on the ____ day of ____, 2020, 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 ______________, 2020. ______________________________ Teresa Purrington City Clerk Packet Page 124 Item #11 Packet Page 71 Item 6 Page intentionally left blank. Packet Page 72 Item 6 Department Name: Administration Cost Center: 1001 For Agenda of: February 4, 2020 Placement: Consent Estimated Time: N/A FROM: Greg Hermann, Deputy City Manager Prepared By: Ryan Betz, Assistant to the City Manager Georgina Bailey, Cannabis Program Coordinator/Management Fellow SUBJECT: SECOND READING OF ORDINANCE NO. 1676 (2020 SERIES) AMENDING CHAPTER 8.14 (HEALTH & SAFETY) FOR TOBACCO RETAILER LICENSES RECOMMENDATION Adopt Ordinance No. 1676 amending Municipal Code Chapter 8.14 (Attachment A) prohibiting the sale of electronic cigarette products that have not received premarket review by the U.S. Food and Drug Administration. DISCUSSION On January 21, 2020 the City Council voted 4:0:1 (Mayor Heidi Harmon was not present) to introduce Ordinance No. 1676 (2020 Series) amending Chapter 8.14 of the City’s Municipal Code which prohibits the sale of flavored and non-flavored electronic cigarette products that have not received premarket review by the U.S Food and Drug Administration. Previous Council or Advisory Body Action • November 27, 2018 City Council directed staff to analyze issues related to prohibiting or limiting the sale of flavored tobacco and e-cigarettes products within the City. • October 1, 2019, City Council directed staff, after additional public concerns were expressed on this topic, to return for additional discussion and direction. • January 21, 2020, staff returned to Council for a study session (Attachment B) on prohibiting the sale of flavored tobacco and electronic cigarette products and to introduce Ordinance No. 1676. Policy Context Regulating the sale of flavored tobacco products, e-cigarettes, or both, falls under Chapter 8.14, Health and Safety Tobacco Retailer License, of the City’s Municipal Code. The Council adopted Chapter 8.14 in 2003 to ensure tobacco retailers followed proper compliance with the sale and distribution of tobacco products and to minimize the access of tobacco products to the youth. Additional regulation of the sale and distribution of tobacco products falls under Chapter 8.18, including proper signage, sales to minors, self-service sales of tobacco, out of package sales and violations. Packet Page 73 Item 7 Public Engagement Staff provided notification of this item to retailers in the City’s Tobacco Retail License program and the County of San Luis Obispo’s Public Health Agency Tobacco Control Program on January 10, 2020. Public comment was provided to the City Council through both written correspondence and public comment at the January 21, 2020 City Council hearing. 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: 2019-2020 Funding Identified: No Fiscal Analysis: Funding Sources Current FY Cost Annualized On-going Cost Total Project Cost General Fund State Federal Fees Other: Total N/A The action before Council in itself does not have a fiscal impact. ALTERNATIVES 1. Modify and move to adopt the introduced ordinance to prohibit sale of e-cigarette products not received premarket review by the FDA and flavored tobacco products. 2. Do not adopt staff recommendation. This is not recommended as it does not align with the City Council’s overall intention to ensure tobacco retailers followed proper compliance with the sale and distribution of tobacco products and to minimize the access of tobacco products to the youth. Attachments: a - Ordinance No. 1676 (2020 Series) b - Staff Report from January 21, 2020 Council Meeting Packet Page 74 Item 7 O 1676 ORDINANCE NO. 1676 (2020 Series) AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SAN LUIS OBISPO, CALIFORNIA, AMENDING THE MUNICIPAL CODE HEALTH AND SAFETY (CHAPTER 8.14) TOBACCO RETAILER LICENSE WHEREAS, the City of San Luis Obispo (“City”) is empowered to enact legislation to protect the health, safety, and welfare of the public; and WHEREAS, the City established a Tobacco Retail License Program (Ordinance 1440, 2003 Series) to ensure compliance with all federal, state and local laws and to protect minors from the illegal sale of tobacco products; and WHEREAS, the federal government has enacted numerous tobacco related laws that include, but are not limited to the Family Smoking Prevention and Tobacco Control Act (“Tobacco Control Act”), enacted in 2009, that prohibited candy and fruit-flavored cigarettes, largely because these flavored products are marketed to youth and young adults, and younger smokers were more likely than older smokers to have tried these products. Among other things, the Tobacco Control Act authorized the U.S. Food and Drug Administration ("FDA") to set national standards governing the manufacture of tobacco products, to limit levels of harmful components in tobacco products and to require manufacturers to disclose information and research relating to the products' health effects; and WHEREAS, a central requirement of the Tobacco Control Act is premarket review of all new tobacco products. Specifically, every "New Tobacco Product" which is defined by federal law to be any tobacco product not on the market in the United States as of February 15, 2007, must be authorized by the FDA for sale in the United States before it may enter the marketplace; and WHEREAS, a New Tobacco Product may not be marketed until the FDA has found that the product is: (1) appropriate for the protection of the public health upon review of a premarket tobacco application; (2) substantially equivalent to a grandfathered product; or (3) exempt from substantial equivalence requirements; and WHEREAS, in determining whether the marketing of a tobacco product is appropriate for the protection of the public health, the FDA must consider the risks and benefits of the product to the population as a whole, including users and nonusers of the product, and taking into account the increased or decreased likelihood that existing users of tobacco products will stop using tobacco products and the increased or decreased likelihood that those who do not use tobacco products will start using them. Where there is a lack of showing that permitting the sale of a tobacco product would be appropriate for the protection of the public health, the Tobacco Control Act requires that the FDA deny an application for premarket review; and WHEREAS, in July 2013, the FDA published an independent report that concluded that “menthol use is likely associated with increased smoking initiation by youth and young adults,” “menthol in cigarettes is likely associated with greater addiction,” and “that menthol cigarettes pose a public health risk above that seen with nonmenthol cigarettes;” and Packet Page 75 Item 7 O 1676 WHEREAS, there are currently serious public health concerns about the immediate and long-term harm caused by electronic cigarettes/vaping use; and WHEREAS, approximately 1,300 cases of electronic cigarettes/vaping products related lung illnesses have been reported in hospitals, health clinics, and emergency rooms nationwide, with at least 26 confirmed electronic cigarettes/vaping use related deaths; and WHEREAS, the U.S. Surgeon General and the California Department of Public Health (CDPH) have issued health advisories to educate the public about the imminent health risk posed by electronic cigarettes/vaping products; and WHEREAS, teen use of electronic cigarettes/vaping products has grown rapidly in recent years, with a February 2019 National Institutes of Health report finding that over 17.6% of 8th graders, 32.3% of 10th graders, and 37.3% of 12th graders reported trying electronic cigarettes/vaping products last year nationwide; and WHEREAS, electronic cigarettes/vaping products, particularly the flavored products, are popular among younger users, and the packaging and advertising of these products by companies are often attractive to younger users; and WHEREAS, there are over 15,000 electronic cigarettes/vaping flavors available on the market, including youth-orientated flavors such as bubble gum, cotton candy, and fruit punch, among others; and WHEREAS, the City desires to amend its regulations to make them more comprehensive and effective at protecting the community from the harmful effects of electronic cigarette/vaping products, including devices; and NOW, THEREFORE, BE IT ORDAINED by the Council of the City of San Luis Obispo as follows: SECTION 1. Section 8.14.020, subsection A of the San Luis Obispo Municipal Code is hereby amended as reflected in Exhibit A to read as follows: A. “Electronic smoking device” means an electronic device which can be used to deliver an inhaled dose of nicotine or any other substances (excluding cannabis), including any component, part, or accessory of such a device, whether or not sold separately, including flavored vape juices and liquids used in such devices. “Electronic smoking device” includes any such electronic smoking device, whether manufactured, distributed, marketed, or sold as an electronic cigarette, an electronic cigar, an electronic cigarillo, an electronic pipe, an electronic hookah, or any other product name or descriptor. Packet Page 76 Item 7 O 1676 SECTION 2. Section 8.14.030, of the San Luis Obispo Municipal Code is hereby amended as reflected in Exhibit A to read as follows: “The sale or distribution by an establishment of an Electronic Smoking Device is prohibited in the City of San Luis Obispo, including all non-flavored and flavored Electronic Smoking Device products, including mint and menthol where the Electronic Smoking Device: (a) Requires premarket review under 21 U.S.C. § 387j, as may be amended from time to time; and (b) Does not have a premarket review order under 21 U.S.C. § 387j(c)(1)(A)(i), as may be amended from time to time.” SECTION 3. Ordinance Number 1613 (2015 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. Environmental Review. The proposed ordinance amendment is exempt from environmental review requirements of the California Environmental Quality Act (CEQA) because the adoption of this Ordinance is not a project as defined in CEQA Guidelines Section 15378 because it can be seen with certainty that it will not result in either a direct physical change in the environment or a reasonably foreseeable indirect physical change in the environment. SECTION 6. Effective Date. This ordinance shall be in full force and effect ninety (90) days after it passage. Packet Page 77 Item 7 O 1676 SECTION 7. 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 New Times, a newspaper published and circulated in this City. This ordinance shall go into effect at the expiration of ninety (90) days after its final passage. INTRODUCED on the 21st day of January 2020, AND FINALLY ADOPTED by the Council of the City of San Luis Obispo on the _______ day of ___________, 2020, 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 ______________________________, 2020. ______________________________ Teresa Purrington City Clerk Packet Page 78 Item 7 O 1676 Exhibit A – Chapter 8.14 – Tobacco Retailer Licenses Chapter 8.14 TOBACCO RETAILER LICENSES 8.14.010 Purpose. 8.14.020 Definitions. 8.14.030 Requirement for tobacco retailer license. 8.14.040 Application procedure. 8.14.050 Issuance of license. 8.14.060 Display of license. 8.14.070 Fees for license. 8.14.080 Licenses nontransferable. 8.14.085 Noncompliance with tobacco related laws—License violation. 8.14.090 License compliance monitoring. 8.14.100 Suspension or revocation of license. 8.14.110 Appeal of suspension and/or revocation. 8.14.120 Administrative fine—Penalties—Enforcement. 8.14.130 Severability. 8.14.010 Purpose. It is the intent of the city of San Luis Obispo, in enacting this chapter, to discourage violations of laws which prohibit or regulate the sale or distribution of tobacco products to minors, but not to expand or reduce the degree to which the acts regulated by state or federal law are criminally proscribed or to alter the penalty provided therefor. (Ord. 1440 § 1 (part), 2003) 8.14.020 Definitions. The following words and phrases, whenever used in this chapter, shall have the meanings defined in this section unless the context clearly requires otherwise: A. “Electronic smoking device” means an electronic device which can be used to deliver an inhaled dose of nicotine or any other substances (excluding cannabis), including any component, part, or accessory of such a device, whether or not sold separately, including flavored vape juices and liquids used in such devices, even if sold separately. “Electronic smoking device” includes any such electronic smoking device, whether manufactured, distributed, marketed, or sold as an electronic cigarette, an electronic cigar, an electronic cigarillo, an electronic pipe, an electronic hookah, or any other product name or descriptor. B. “Person” means any natural person, partnership, cooperative association, private co rporation, personal representative, receiver, trustee, assignee, or any other legal entity. Packet Page 79 Item 7 O 1676 C. “Proprietor” means a person with an ownership or managerial interest in a business. An ownership interest shall be deemed to exist when a person has a ten percent or greater interest in the stock, assets, or income of a business other than the sole interest of security for debt. A managerial interest shall be deemed to exist when a person can or does have, or can or does share, ultimate control over the day-today operations of a business. D. “Tobacco product” means any product containing, made from, or derived from tobacco or nicotine that is intended for human consumption, whether smoked, heated, chewed, absorbed, dissolved, inhaled, snorted, sniffed, or ingested by any other means, including but not limited to cigarettes, cigars, pipe tobacco, snuff, chewing tobacco, dipping tobacco, electronic smoking devices or any other preparation of tobacco including Indian cigarettes called “bidis.” “Tobacco product” does not include any product that has been approved by the United States Food and Drug Administration for sale as a tobacco cessation product or for other therapeutic purposes and is marketed and sold solely for such an approved purpose. E. “Tobacco retailer” means any person who sells, offers for sale, or does or offers to exchange for any form of consideration tobacco, or tobacco products; “tobacco retailing” shall mean the doing of any of these things. F. “Licensing agent” means a city employee designated by the city administrative officer to serve in this capacity. G. “Enforcement agency” means the San Luis Obispo police department. H. “Hearing officer” means the city employee designated by the city administrative officer to serve in this 8.14.030 Requirement for tobacco retailer license. It shall be unlawful for any person to act as a tobacco retailer without first obtaining and maintaining a valid tobacco retailer’s license pursuant to this chapter for each location at which that activity is to occur. No license will be issued to authorize tobacco retailing at other than a fixed location; itinerant tobacco retailing and tobacco retailing from vehicles are prohibited. No license will be issued to authorize tobacco retailing at any location that is licensed under state law to serve alcoholic beverages for consumption on the premises (e.g., an “on-sale” license issued by the California. The sale or distribution by an establishment of an Electronic Smoking Device is prohibited in the City of San Luis Obispo, including all non-flavored and flavored Electronic Smoking Device products, including mint and menthol where the Electronic Smoking Device is: Packet Page 80 Item 7 O 1676 (a) Requires premarket review under 21 U.S.C. § 387j, as may be amended from time to time; and (b) (b) Does not have a premarket review order under 21 U.S.C. § 387j(c)(1)(A)(i), as may be amended from time to time. Department of Alcoholic Beverage Control); tobacco retailing in bars and restaurants serving alcoholic beverages is prohibited. Licenses are valid for one year and each tobacco retailer shall apply for the renewal of his or her tobacco retailer’s license prior to its expiration. The conference of a tobacco retailer license does not confer any new rights under any other law and does not exempt any business that otherwise would be subject to the smoke-free workplace provisions within the San Luis Obispo Municipal Code and Labor Code Section 6404.5. (Ord. 1440 § 1 (part), 2003) 8.14.040 Application procedure. A. Application for a tobacco retailer’s license shall be submitted to the licensing agent in the name of each proprietor/person proposing to conduct retail tobacco sales and shall be signed by such person or an authorized agent thereof. All applications shall be submitted on a form supplied by the licensing agent and shall contain the following information: 1. The name, address, and telephone number of the applicant. 2. The business name, address, and telephone number of each location for which a tobacco retailer’s license is sought. 3. Such other information as the licensing agent deems necessary for enforcement of this chapter. 4. Whether or not any proprietor has previously been issued a license pursuant to this chapter that is, or was at any time, suspended or revoked and, if so, the dates of the suspension period or the date of revocation. (Ord. 1440 § 1 (part), 2003) 8.14.050 Issuance of license. Upon the receipt of an application for a tobacco retailer’s license, the licensing agent shall issue a license unless substantial record evidence demonstrates one of the following bases for denial: A. The application is incomplete or inaccurate; or B. The application seeks authorization for tobacco retailing by a person or at a location for which a suspension is in effect pursuant to Section 8.14.100 of this chapter; or C. The application seeks authorization for tobacco retailing in an area that is in violation of city zoning pursuant to Title 17 of this code or that is unlawful pursuant to any other local, state, or federal law. (Ord. 1440 § 1 (part), 2003) Packet Page 81 Item 7 O 1676 8.14.060 Display of license. Each license shall prominently display the license in a public place at each location where tobacco retailing occurs. (Ord. 1440 § 1 (part), 2003) 8.14.070 Fees for license. The fee for a tobacco retailer’s license shall be established by resolution of the city council of the city of San Luis Obispo. The fee shall be calculated so as to recover the total cost, but no more than the total cost, of license administration and enforcement, including, for example, but not limited to, issuing the license, administering the license program, retailer education, retailer inspection and compliance checks, documentation of violation, and prosecution of violators. The fee for tobacco retailer’s license shall be paid to the licensing agent. (Ord. 1440 § 1 (part), 2003) 8.14.080 Licenses nontransferable. A tobacco retailer’s license is nontransferable. For example, if a proprietor to whom a license has been issued changes business location, that proprietor must apply for a new license prior to acting as a tobacco retailer at the new location. Or if the business is sold, the new owner must apply for a license for that location before acting as a tobacco retailer. (Ord. 1440 § 1 (part), 2003) 8.14.085 Noncompliance with tobacco related laws—License violation. Compliance with all local, state and federal tobacco-related laws shall be a condition of a city tobacco retailer license and it shall be a violation of a license for a licensee or his or her agents or employees to violate any local, state or federal tobacco-related law. (Ord. 1473 § 1, 2005) 8.14.090 License compliance monitoring. Compliance with this chapter shall be monitored by the San Luis Obispo police department. At least four compliance checks of each tobacco retailer shall be conducted during each twelve-month period. The cost of compliance monitoring shall be incorporated into the license fee. (Ord. 1440 § 1 (part), 2003) 8.14.100 Suspension or revocation of license. A.In addition to any other penalty authorized by law, a tobacco retailer’s license may be suspended or revoked if the city finds, after notice to the licensee and opportunity to be heard, that the licensee or his or her agents or employees has violated th e conditions of the license imposed pursuant to this chapter. 1.Upon a finding by the city of a first license violation within any five-year period, the license shall be suspended for thirty days. 2.Upon a finding by the city of a second license violation within any five-year period, the license shall be suspended for ninety days. Packet Page 82 Item 7 O 1676 3.Upon a finding by the city of a third license violation within any five-year period, the license shall be suspended for one year. 4.Upon a finding by the city of a fourth license violation within any five-year period, the license shall be revoked. B.A tobacco retailer’s license shall be canceled if the city finds, after notice and opportunity to be heard, that one of the following conditions exists. The revocation shall be without prejudice to the filing of a new application for a license. 1.The application is incomplete for failure to provide the information required by Section 8.14.040. 2.The information contained in the application, including supplemental information, if any, is found to be false in any material respect. 3.The application seeks authorization for a license for tobacco retailing that is unlawful. (Ord. 1440 § 1 (part), 2003) 8.14.110 Appeal of suspension and/or revocation. A.A decision of the city to revoke or suspend a license is appealable to a hearing officer and must be filed with the hearing officer at least ten working days prior to the commencement date of the license suspension or revocation. An appeal shall stay all proceedings in furtherance of the appealed action. Following appeal, the decision of the hearing officer may be appealed to the city administrative officer or his or her designee. A decision of the city administrative officer or his or her designee shall be the final decision of the city. B.During a period of license suspension, the tobacco retailer must remove from public view all tobacco products. (Ord. 1440 § 1 (part), 2003) 8.14.120 Administrative fine—Penalties—Enforcement. A.Any violation of the provisions of this chapter by any person is a misdemeanor and is punishable as provided in Chapter 1.12, Section 1.12.030 of this code. 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.If the city of San Luis Obispo finds, based on substantial record evidence, that any unlicensed person has engaged in tobacco retailing activities in violation of Section 8.14.030 of this chapter, the city shall fine that person as follows. Each day that an unlicensed person offers tobacco, tobacco products or tobacco 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. C.Violations of this chapter are hereby declared to be public nuisances. Packet Page 83 Item 7 O 1676 D.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. (Ord. 1440 § 1 (part), 2003) 8.14.130 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. (Ord. 1440 § 1 (part), 2003) Packet Page 84 Item 7 Department Name: Administration Cost Center: 1001 For Agenda of: January 21, 2020 Placement: Business Item Estimated Time: 45 minutes FROM: Greg Hermann, Deputy City Manager Prepared By: Ryan Betz, Assistant to the City Manager Georgina Bailey, Management Fellow SUBJECT: CONSIDERATION OF A PROHIBITION ON THE SALE OF FLAVORED TOBACCO AND/OR ELECTRONIC CIGARETTE PRODUCTS RECOMMENDATION 1.Receive a report on the federal, state and regional approaches prohibiting the sale of flavored tobacco and/or electronic cigarette products; and 2.Review and provide direction on an introduced Ordinance (Attachment A) prohibiting the sale of electronic cigarette products that have not received premarket review by the U.S. Food and Drug Administration. REPORT-IN-BRIEF Over the past year, the City of San Luis Obispo (City) has monitored the issue of prohibiting the sale of flavored tobacco products and electronic cigarettes (e-cigarettes) at the federal, state and local level. Since the emergence of e-cigarette products in 2007, it has become the predominant method for using tobacco products amongst youth1. Currently, the U.S. Food and Drug Administration (FDA), which reviews and regulates tobacco products, has not conducted any premarket review of e-cigarette products. Due to the popularity of flavored e-cigarette products with the youth, and absence of a review by the FDA, a number of California cities and counties have prohibited the sale of flavored tobacco products, including e-cigarette products, while allowing the sale of non-flavored e-cigarette products to continue. Recently, several cities and counties have prohibited the sale of all e-cigarette products, including flavored and non-flavored products, to further limit the access of these products to the youth. In June 2019, San Francisco was the first major city in the country to prohibit the sale of all e-cigarette products, followed by the cities of Richmond, Livermore, Morro Bay and Arroyo Grande. 1 This conclusion is arrived at directly in the Truth Initiative’s Fact Sheet “E-cigarettes: Facts, stats and regulations” which is also supported by the U.S Department of Health & Human Services in their reports “Adolescents and Tobacco: Trends” Packet Page 85 Item 7 DISCUSSION Background In response to concerns expressed by community members, the City Council at its November 27, 2018 meeting, directed staff to analyze issues related to prohibiting or limiting the sale of flavored tobacco and e-cigarettes products within the City. Specifically, the City Council expressed concerns regarding the popularity and effects of flavored e-cigarettes products (also known as vaping, that deliver nicotine through a liquid) on the youth in the community. In response, staff prepared a City Council memo (Attachment b) that analyzed the various policy issues as well as potential options to prohibit the sale flavored tobacco products and e-cigarettes in the City. On October 1, 2019, the City Council directed staff, after additional public concerns were expressed on this topic, to return for additional discussion and direction. Flavored Tobacco Products and E-cigarettes Flavored tobacco is a tobacco product that imparts a characterizing flavor other than the taste or aroma of tobacco, including but not limited to menthol, mint, wintergreen, fruits, candies, herbs or spices. These products include, but are not limited to, flavored cigarettes, cigarillos and cigars, hookah, smokeless tobacco, and flavored components and accessories (such as e-juice which is used with e-cigarettes). E-cigarette products include an electronic device, typically battery operated, that heat a liquid to deliver an inhaled dose of nicotine or other substances. The liquid (commonly referred to as e-juice) can be tobacco and/or other flavors. Though flavored tobacco has been in the market for some time, e-cigarettes products were introduced more recently in 2007. Since that time, they have been the most commonly used tobacco product amongst youth in the United States2. According to the California Department of Public Health, the shapes and sizes of the devices can vary and include colorful vape pens, modified tank systems, and new pod devices that can look like the USB flash drives for computers, cell phones, credit card holders, and highlighters3. E-cigarettes can deliver a significant amount of concentrated nicotine to its user, and the long- term effects of vaping have still yet to be fully explored. These products, particularly the flavored variety, are popular among younger users. According to a February 2019 National Institutes of Health report, over 17.6% of 8th graders, 32.3% of 10th graders and 37.3% of 12th graders reported trying e-cigarettes nationwide4. In California, according to the 2017-18 California Healthy Kids Survey, more than 30% of high school students used e-cigarettes, with 10% of students saying they regularly use the product5. That was a 6.4% increase from the year before. In comparison, traditional cigarette smoking among high school students reached a historic low and decreased from 4.3% in 2015-16 to 2.0% in 2017-18. 2 Op.cit. fn.1 3 As defined by the California Department of Public Health “Vaping Associated Lung Injury (EVALI)” 4 As identified in February 2019 by the National Institute on Drug Abuse in an article “Vaping Rises Among Teens” with a graphic that outlines these statistics. 5 As reported by the 2017-18 California Student Tobacco Survey and the California Healthy Kids Survey both demonstrate the state trends of high school students e -cigarette usage as is reported in a CBS Los Angeles report “Survey Cigarette Use Down But Vaping on Rise Among Local High School Students ” Packet Page 86 Item 7 The widespread use of e-cigarettes by youth may have significant public health consequences. The U.S. Surgeon General has stated: “Tobacco use among youth and young adults in any form, including e-cigarettes, is not safe. In recent years, e-cigarette use by youth and young adults has increased at an alarming rate. E-cigarettes are now the most commonly used tobacco product among youth in the United State. E-cigarettes are tobacco products that deliver nicotine. Nicotine is a highly addictive substance, and many of today’s youth who are using e-cigarettes could become tomorrow’s cigarette smokers. Nicotine exposure can also harm brain development in ways that may affect the health and mental health of our kids.”6 City of San Luis Obispo Tobacco Regulations The City has a long history of regulating tobacco and was awarded a grade of “B” for its anti - smoking efforts by the American Lung Association in its 2019 State of Tobacco Control7. In 1990, the City was the first city in the world to successfully ban smoking in all public buildings, including bars and restaurants. In 2003, the City established a Tobacco Retail License (TRL) program (Municipal Code Chapter 8.14) to further regulate tobacco sales for tobacco retailers and to discourage violations of the laws which prohibit or regulate the sale or distribution of tobacco products to minors. This is accomplished by both license guidelines and enforcement programs by the San Luis Obispo Police Department. The TRL is required for all retailers selling tobacco products, including e-cigarette products (referenced as electronic smoking devices), is valid for one year and is required to be renewed on annual basis. License compliance monitoring by the Police Department includes compliance checks and the cost of compliance monitoring is incorporated into the license fee which of $736.80. Enforcement includes periodic operations that focus on underage tobacco sales with tobacco retailers. The Police Department collaborates with the County of San Luis Obispo’s Tobacco Control Program to ensure compliance with local and state regulations. There was one enforcement operation that occurred in 2019, which yielded one violation. There are approximately forty businesses in the City with current licenses through the TRL program. The TRL program was last amended in 2015 to prohibit the use of e-cigarette products in all places where smoking was currently prohibited and required retailers of e- cigarette products to also obtain a TRL. In addition, the City’s Municipal Code section (Chapter 8.18) regulates the sale and distribution of tobacco products including language that forbids the sale of tobacco products to minors. 6From the Office of the Surgeon General of the U.S Department of Health and Human Services in a report “E- Cigarette Use Among Youth and Young Adults A Report of the Surgeon General, 2016” 7 From the American Lung Association’s 2019 State of Tobacco Control County Grades Packet Page 87 Item 7 Federal and California and Laws In 2009, the federal government enacted the Family Smoking Prevention and Tobacco Control Act, which authorized the FDA to regulate the manufacture, marketing, and distribution of tobacco products. At this time, no e-cigarette products have been reviewed and approved by the FDA, as required by federal law. The deadline for FDA application reviews of all e-cigarette products is May 2020, though the timeline for the premarket review and testing process is yet to be determined, the FDA has up to a year after the submission to act . A recently passed federal law, taking effect on January 1, 2020, also prohibits the sale of tobacco products to anyone under the age of 21. The federal government also recently announced the prohibition of most flavored e-cigarette cartridges (single use), but would exempt menthol and tobacco flavors, as well as flavored liquid nicotine sold in open tank systems, typically sold at vape shops. Enforcement against companies that were still making or selling e-cigarette cartridges, would begin in February 2020.8 In 2003, California enacted the Cigarette and Tobacco Products Licensing Act to regulate the sale of tobacco and tobacco products. Similar to a business license, the Act requires every person selling cigarettes or tobacco products to the public in California to obtain a license from the California Department of Tax and Fee Administration. Since the California legislature has not fully occupied the field of tobacco sales, California cities are free to implement any tobacco sales regulation or restriction provided they do not involve the collection of taxes or the penal aspects of tobacco sales to minors. As of June 9, 2016, California law prohibits selling, giving, or furnishing tobacco products to individuals under the age of 21, including e-cigarettes. The Family Smoking Prevention and Tobacco Control Act authorizes the City to adopt local regulations prohibiting the sale, distribution, possession, exposure to, access to, and promotion of, or use of tobacco products, but does preempt the City from regulating tobacco product standards, manufacturing, and labeling. Accordingly, federal law grants the FDA authority to regulate all tobacco products and expressly preserves the power of local governments to enact additional or “more stringent” regulations related to or prohibiting tobacco sales. The City’s TRL program is consistent with the state Cigarette and Tobacco Products Licensing Act and the federal Smoking Prevention and Tobacco Control Act. The TRL regulations could be extended to include prohibitions on the sale of flavored tobacco and e-cigarettes products. On January 6, 2020, California legislatures introduced Senate Bill 793, which bans the sale of flavored tobacco products, including menthol. If approved, the bill would not ban the sale of non-flavored e- cigarette products. The bill is similar to the one that was introduced last year but was ultimately withdrawn. 8 For a discussion on the current FDA rules and regulations see https://www.marketwatch.com/story/federal- government-bans-popular-e-cigarettes-flavors-to-curb-underage-smoking-2020-01-02 and https://www.marketwatch.com/story/fda-to-ban-fruity-e-cigarette-pod-flavors-but-allow-tank-vaping-systems-2019- 12-31 and also https://www.nytimes.com/2019/12/31/health/e-cigarettes-flavor-ban-trump.html Packet Page 88 Item 7 Other Cities/Counties in California Over 55 cities and counties in California have passed restrictions on the sale of flavored tobacco products in an effort to reduce youth tobacco use. Recently, several cities have passed ordinances that limit the ability of tobacco retailers to sell e-cigarette products. San Francisco was the first to do so by placing a temporary moratorium on the sale of these products until they have been reviewed by the FDA. San Francisco’s ban on e-cigarettes was subject to a voter referendum that would have overturned the ban; however, voters upheld the ban in November 2019. Similar to San Francisco, several other cities and counties, including Richmond and Livermore have recently banned the sale of e-cigarettes products. Beverly Hills prohibited the sale of all tobacco products, with the exception of cigars at high-end cigar lounges and hotels, in June 2019. Other Cities/County in the Region Several cities in San Luis Obispo County and the City of Santa Maria have recently passed additional tobacco regulations. City of Morro Bay: 1)Created a TRL program. 2)Prohibited the sale of e-cigarettes products, including all flavored and non-flavored products, without the reference to the FDA review process. 3)Prohibited smoking in multi-unit residences, both in the units and common areas. 4)Prohibited the sale of tobacco products by retail establishments that contain a pharmacy. 5)Prohibited the sale of: (a) single cigars that cost less than five dollars (b) any of number of cigars fewer than the number contained in the manufacturer’s original consumer packaging (c) any package of cigars containing fewer than five cigars The effective date for prohibiting the sale of e-cigarette products is April 2020. City of Arroyo Grande: 1.Prohibited the sale of e-cigarette products, including all flavored and non-flavored products, until the completion of the FDA review process. 2.Prohibited the possession of all tobacco products and paraphernalia by persons under the age of 21, with a fine of $75 or thirty hours of community service work. The effective date for prohibiting the sale of e-cigarette products is March 2020. City of Santa Maria: 1.Created a TRL program 2.Prohibited the sale of all flavored tobacco products, including those flavored with menthol. The regulations allow the sale of e-cigarette products that are not flavored. The effective date for prohibiting the sale of flavored tobacco products is July 2020. Packet Page 89 Item 7 County of San Luis Obispo (Scheduled for 1/14/2020): •Considering the prohibition on the sale of e-cigarette products, including all flavored and non-flavored products, until the completion of the FDA review process, in all unincorporated areas within the County. The effective date for prohibiting the sale of e-cigarette products is 30 days after final adoption. Summary of Recent Flavored Tobacco and E-cigarette Products Regulations The County of San Luis Obispo’s Tobacco Control Program is the lead agency in the county in providing community education, prevention services, and technical assistance to a variety of stakeholders on the prevention of tobacco use. The program has been monitoring this issue for some time and has developed a visual to show policy approaches to address youth vaping (Attachment C). Policy Options Three options are listed below to guide the Council: 1.The City Council could move to adopt an introduced ordinance (Attachment a) prohibiting the sale of e-cigarette products that have not received premarket review by the FDA. This would be consistent with San Francisco, Arroyo Grande adopted ordinances and the County of San Luis Obispo proposed ordinance. The City of Morro Bay’s ordinance is similar, though it does not reference the FDA review process, which means that regardless if the FDA approves an e-cigarette product, the sale would be prohibited in Morro Bay. The Ordinance is designed to become effective 90 days after the second reading and thus provides three months for existing retailers to remove these products from their inventories. Packet Page 90 Item 7 2.The City Council could modify the introduced ordinance to prohibit the sale of flavored tobacco, which would allow the sale of non-flavored e-cigarette products to continue. This would be similar to the City of Santa Maria ordinance, which prohibited the sale of flavored tobacco, including menthol. 3.The City Council could also direct staff to conduct additional public engagement efforts, including public workshops, study sessions, and online surveys. This effort would require additional staff resources, which would be requested as part of the 2019-20 Mid-Year Budget and would delay any adoption of an ordinance by approximately six months. Environmental Concerns Due to the design of e-cigarettes, many of the cartridges that contain the ‘e-juice’ are single use. In 2015, of the more than 58 million e-cigarettes and refills that were sold in the United States, 19.2 million were designed as single use.9 Though there are few state and national studies in regards to environmental concerns related to e-cigarettes and ‘e-juice’, there are emerging electronic cigarette disposal issues at the City’s local level.10 Disposal of e-cigarette products, including the cartridge that contains the ‘e-juice’, has become a challenge locally for the San Luis Obispo Integrated Waste Management Authority (IWMA). The waste from the products can contain microplastics, metals, nicotine and combustible lithium ion batteries. Because of this, the waste is categorized is sometimes considered hazardous waste. According to IWMA staff, many of their third-party hazardous waste collectors are limiting the amount of e-cigarette waste collection. Sale of Cannabis Vaping Products Cannabis vaping products are recommended to be exempt from the definition of an e-cigarette product, which is consistent with the Morro Bay ordinance. Cannabis vaping products are regulated through the State of California (unlike e-cigarettes products) and are generally subject to additional regulations that prevent diversion to youth.11 In addition, cannabis is exempt from the definition of “electronic smoking device” for the City’s TRL program and instead is governed through the City’s regulations for cannabis businesses. Cannabis consumption, including vaping, remains unlawful to be consumed in public as identified in Section 9.10.210. PREVIOUS COUNCIL OR ADVISORY BODY ACTION As was previously discussed, the City Council initially requested that staff explore this item in November 2018 and directed staff to prepare a study session on the topic in October 2019 based on additional concerns expressed from the community. 9 As concluded by U.S National Institutes of Health’s National Library of Medicine in their study “Alert: Public Health Implications of Electronic Cigarette Waste” 10 Ibid which acknowledges, “No studies have yet traced disposal patterns of e -cigarettes, but research in progress suggests that like cigarette butts, spent e-cigarette capsules or replicable nicotine-filled plastic pods are often littered.” 11 As defined by the California Code of Regulations, Title 17 Division 1. Chapter 12. Manufactured Cannabis Safety California Department of Public Health – Cannabis Regulations Packet Page 91 Item 7 POLICY CONTEXT Regulating the sale of flavored tobacco products, e-cigarettes, or both, falls under Chapter 8.14, Health and Safety Tobacco Retailer License, of the City’s Municipal Code. The Council adopted Chapter 8.14 in 2003 to ensure tobacco retailers followed proper compliance with the sale and distribution of tobacco products and to minimize the access of tobacco products to the youth. Additional regulation of the sale and distribution of tobacco products falls under Chapter 8.18, including proper signage, sales to minors, self-service sales of tobacco, out of package sales and violations. PUBLIC ENGAGEMENT As was discussed at the October 1, 2019 City Council meeting, staff would not be able to complete significant public engagement on this topic in advance of a public meeting, but that notification of the meeting would be provided to affected retailers and interested parties. As such, staff provided notification of this item to retailers in the City’s Tobacco Retail License program and the County of San Luis Obispo’s Public Health Agency Tobacco Control Program on January 10, 2020. Public comment can also be provided to the City Council through written correspondence and public comment at 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: No Budget Year: 2019-2020 Funding Identified: No Fiscal Analysis: Funding Sources Total Budget Available Current Funding Request Remaining Balance Annual Ongoing Cost General Fund N/A State Federal Fees Other: Total N/A Packet Page 92 Item 7 The action before Council in itself does not have a fiscal impact. However, depending on the direction given by Council, any required funding would be considered with the 2019-20 Mid- Year Budget. ALTERNATIVES 1.Move to adopt the introduced ordinance (Attachment A) prohibiting the sale of e-cigarette products that have not received premarket review by the FDA. 2.Modify and move to adopt the introduced ordinance to prohibit sale of e-cigarette products not received premarket review by the FDA and flavored tobacco products. 3.Direct staff to conduct additional public engagement. Additional public engagement efforts, including public workshops, study sessions, and online surveys, would require additional staff resources. The additional staff resources would be requested as part of the 2019-20 Mid- Year Budget and would delay any adoption of an ordinance by approximately six months. Attachments: a - Draft Ordinance - Electronic Cigarette Products b - Council Memo on Flavored Tobacco Regulations c - County of San Luis Obispo Tobacco Control Program Policy Approach to Address Youth Vaping d - Exhibit A to Draft Ordinance Packet Page 93 Item 7 O______ ORDINANCE NO. _____ (2020 Series) AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SAN LUIS OBISPO, CALIFORNIA, AMENDING THE MUNICIPAL CODE HEALTH AND SAFETY (CHAPTER 8.14) TOBACCO RETAILER LICENSE WHEREAS, the City of San Luis Obispo (“City”) is empowered to enact legislation to protect the health, safety, and welfare of the public; and WHEREAS, the City established a Tobacco Retail License Program (Ordinance 1440, 2003 Series) to ensure compliance with all federal, state and local laws and to protect minors from the illegal sale of tobacco products; and WHEREAS, the federal government has enacted numerous tobacco related laws that include, but are not limited to the Family Smoking Prevention and Tobacco Control Act (“Tobacco Control Act”), enacted in 2009, that prohibited candy and fruit-flavored cigarettes, largely because these flavored products are marketed to youth and young adults, and younger smokers were more likely than older smokers to have tried these products. Among other things, the Tobacco Control Act authorized the U.S. Food and Drug Administration ("FDA") to set national standards governing the manufacture of tobacco products, to limit levels of harmful components in tobacco products and to require manufacturers to disclose information and research relating to the products' health effects; and WHEREAS, a central requirement of the Tobacco Control Act is premarket review of all new tobacco products. Specifically, every "New Tobacco Product" which is defined by federal law to be any tobacco product not on the market in the United States as of February 15, 2007, must be authorized by the FDA for sale in the United States before it may enter the marketplace; and WHEREAS, a New Tobacco Product may not be marketed until the FDA has found that the product is: (1) appropriate for the protection of the public health upon review of a premarket tobacco application; (2) substantially equivalent to a grandfathered product; or (3) exempt from substantial equivalence requirements; and WHEREAS, in determining whether the marketing of a tobacco product is appropriate for the protection of the public health, the FDA must consider the risks and benefits of the product to the population as a whole, including users and nonusers of the product, and taking into account the increased or decreased likelihood that existing users of tobacco products will stop using tobacco products and the increased or decreased likelihood that those who do not use tobacco products will start using them. Where there is a lack of showing that permitting the sale of a tobacco product would be appropriate for the protection of the public health, the Tobacco Control Act requires that the FDA deny an application for premarket review; and WHEREAS, in July 2013, the FDA published an independent report that concluded that “menthol use is likely associated with increased smoking initiation by youth and young adults,” “menthol in cigarettes is likely associated with greater addiction,” and “that menthol cigarettes pose a public health risk above that seen with nonmenthol cigarettes;” and Packet Page 94 Item 7 O______ WHEREAS, there are currently serious public health concerns about the immediate and long-term harm caused by electronic cigarettes/vaping use; and WHEREAS, approximately 1,300 cases of electronic cigarettes/vaping products related lung illnesses have been reported in hospitals, health clinics, and emergency rooms nationwide, with at least 26 confirmed electronic cigarettes/vaping use related deaths; and WHEREAS, the U.S. Surgeon General and the California Department of Public Health (CDPH) have issued health advisories to educate the public about the imminent health risk posed by electronic cigarettes/vaping products; and WHEREAS, teen use of electronic cigarettes/vaping products has grown rapidly in recent years, with a February 2019 National Institutes of Health report finding that over 17.6% of 8th graders, 32.3% of 10th graders, and 37.3% of 12th graders reported trying electronic cigarettes/vaping products last year nationwide; and WHEREAS, electronic cigarettes/vaping products, particularly the flavored products, are popular among younger users, and the packaging and advertising of these products by companies are often attractive to younger users; and WHEREAS, there are over 15,000 electronic cigarettes/vaping flavors available on the market, including youth-orientated flavors such as bubble gum, cotton candy, and fruit punch, among others; and WHEREAS, the City desires to amend its regulations to make them more comprehensive and effective at protecting the community from the harmful effects of electronic cigarette/vaping products, including devices; and NOW, THEREFORE, BE IT ORDAINED by the Council of the City of San Luis Obispo as follows: SECTION 1. Section 8.14.020, subsection A of the San Luis Obispo Municipal Code is hereby amended as reflected in Exhibit A to read as follows: “A. “Electronic smoking device” means an electronic device which can be used to deliver an inhaled dose of nicotine or any other substances (excluding cannabis), including any component, part, or accessory of such a device, whether or not sold separately, including flavored vape juices and liquids used in such devices. “Electronic smoking device” includes any such electronic smoking device, whether manufactured, distributed, marketed, or sold as an electronic cigarette, an electronic cigar, an electronic cigarillo, an electronic pipe, an electronic hookah, or any other product name or descriptor. Packet Page 95 Item 7 O______ SECTION 2. Section 8.14.030, of the San Luis Obispo Municipal Code is hereby amended as reflected in Exhibit A to read as follows: “The sale or distribution by an establishment of an Electronic Smoking Device is prohibited in the City of San Luis Obispo, including all non-flavored and flavored Electronic Smoking Device products, including mint and menthol where the Electronic Smoking Device: (a)Requires premarket review under 21 U.S.C. § 387j, as may be amended from time to time; and (b)Does not have a premarket review order under 21 U.S.C. § 387j(c)(1)(A)(i), as may be amended from time to time.” SECTION 3. Ordinance Number 1613 (2015 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. Environmental Review. The proposed ordinance amendment is exempt from environmental review requirements of the California Environmental Quality Act (CEQA) because the adoption of this Ordinance is not a project as defined in CEQA Guidelines Section 15378 because it can be seen with certainty that it will not result in either a direct physical change in the environment or a reasonably foreseeable indirect physical change in the environment. SECTION 6. Effective Date. This ordinance shall be in full force and effect ninety (90) days after it passage. Packet Page 96 Item 7 O______ SECTION 7. 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 New Times, a newspaper published and circulated in this City. This ordinance shall go into effect at the expiration of ninety (90) days after its final passage. INTRODUCED on the _______ day of __________ 2020, AND FINALLY ADOPTED by the Council of the City of San Luis Obispo on the _______ day of ___________, 2020, 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 ______________________________, 2020. ______________________________ Teresa Purrington City Clerk Packet Page 97 Item 7 DATE: April 17, 2019 TO: Mayor and City Council FROM: Greg Hermann, Deputy City Manager VIA: Derek Johnson, City Manager DJ PREPARED BY: Ryan Betz, Assistant to the City Manager SUBJECT: FLAVORED TOBACCO PRODUCT REGULATIONS The purpose of this memorandum is to respond to inquiries about the potential to regulate flavored tobacco products in the City. In collaboration with staff from the County of San Luis Obispo’s Public Health Department, the following memo summarizes the City’s current Tobacco Retailer License (TRL) program, policies and recent actions at the Federal and State level, and work plan options for the Council’s consideration. Background On November 27, 2018, the City Council (Council) directed staff to study issues related to banning or limiting the sale of flavored tobacco products within City limits. Specifically, the Council expressed concern regarding the effects of vaping (electronic cigarette that delivers nicotine through a liquid) on minors in the community. The City’s TRL program (Muni-code 8.14), which began in 2003 to discourage violations of the laws which prohibit or regulate the sale or distribution of tobacco products to minors, outlines the regulation of tobacco sales for tobacco retailers. This is accomplished by both license guidelines and enforcement programs by the Police Department. Tobacco Retailer Licenses are valid for one year and each tobacco retailer shall apply for the renewal of their tobacco retailer’s license prior to its expiration. Enforcement includes periodic sting operations that focus on underage tobacco sales with tobacco retailers. There were two sting operations that occurred during the past ten months, which yielded one violation. The TRL program was last amended in 2015 to prohibit the use of electronic smoking devices in all places where smoking was currently prohibited and required retailers of electronic smoking devices to obtain a TRL. In addition, the City’s municipal code regulates the sale and distribution of tobacco products (Muni-code 8.18) including language that forbids the sale of tobacco products to minors. There are approximately forty businesses within the City that have licenses through the TRL program. Federal and State Policies and Recent Actions At the Federal level, the Food and Drug Administration (FDA) recently announced its intention to regulate flavored tobacco products. If passed as proposed, the regulations would restrict the sale of flavored electronic cigarettes (e-cigarettes) to age-restricted, adult-only, in-person stores (e.g., Packet Page 98 Item 7 Flavored Tobacco Product Regulations Page 2 tobacco only stores, vape shops), and would ban flavored cigars and menthol-flavored cigarettes. These proposals would not restrict menthol-flavored e-cigarettes. A recent study shows over half of high school students who used e-cigarettes used a menthol- or mint-flavored product.1 The FDA’s final regulations may also be different than the current outlined proposals, as evidenced by the 2009 federal ruling on cigarettes that was weakened with a menthol product exemption. The intended FDA regulations may also face decreased policy efficacy with the adult-only store exemptions as previously demonstrated within the City of Oakland. When Oakland exempted adult-only stores in their flavored tobacco ban, many retailers modified their store layout or business model to meet the age restriction or “adult-only” requirement. Before their ban, Oakland had 2-5 adult-only tobacco stores, but afterward that number had increased to 45 adult-only stores. As exemplified by the City of Oakland, despite a flavored tobacco ban, the exemption of adult only stores mitigates the impacts of the ban due to ability to easily convert stores to adult-only. This is due to FDA regulations allowing entry of persons over 18 into adult-only stores, though California prohibits the sale of tobacco to persons under 21 years of age. For example, this allows persons over 18, but under 21, to enter adult-only tobacco stores in the City. By law, those stores are not allowed to sell tobacco products to persons under 21, but their presence in the store could lead to underage purchases of tobacco products should the business not properly verify their age is 21 or older. Also, the timeline for the FDA’s formal proposal is uncertain, due to Executive Order 13771. This order requires all federal executive agencies to revoke two rules for every new rule it promulgates, and also requires neutral economic costs without considering the economic benefits of the agency’s proposed action. Moreover, federal decisions regarding tobacco have historically taken several years to implement due to tobacco industry advocacy and the potential litigation. This was the case for the 2006 Department of Justice mandate demanding apology advertisements from the tobacco industry, which did not come to fruition until November 2017. At the State level, Senate Bill (SB) 38 and Assembly Bill (AB) 131 were introduced at the beginning of December 2018. Both bills propose to restrict flavored tobacco products to decrease youth access to nicotine. SB 38 would prohibit the sale or offering of any flavored tobacco product, including menthol cigarettes. The bill defines “characterizing flavor” to mean any distinguishable taste or aroma outside of the traditional taste or aroma of tobacco. The bill also states that this proposed legislation should not preempt local flavored tobacco product bans. Currently, SB 38 has passed the Senate Committee on Health and was re-referred to the Senate Appropriations Committee, set for a hearing on April 22, 2019. AB 131 would prohibit electronic smoking device manufacturers from advertising or promoting the products in ways that appeal to minors: prohibitions would include cartoons or characters popular among children, imitation of candy packaging, or using the words “candy” or “candies.” The law would apply to any electronic smoking device that delivers nicotine or other vaporized liquids.2 Currently, on January 24, 2019, AB 131 was referred to the Assembly Committee on Government Organization and a hearing has not been scheduled. 1 Cullen, K.A., Notes from the Field: Use of Electronic Cigarettes and Any Tobacco Product Among Middle and High School Students—United States, 2011–2018. MMWR. Morbidity and Mortality Weekly Report, 2018. 67. 2 American Lung Association. (January 2019). Legislative update January 7, 2019. [Fact sheet]. Retrieved from https://center4tobaccopolicy.org/wp-content/uploads/2019/01/Leg-Update-2019-01-07.pdf Packet Page 99 Item 7 Flavored Tobacco Product Regulations Page 3 Comparable Cities As of December 2018, at least 28 cities and counties in California have passed policies to restrict or prohibit the sale of flavored tobacco products. Eight of the ten most recent policies are comprehensive bans of flavored tobacco. They include flavored e-cigarettes, menthol flavored tobacco products, flavored little cigars, flavored smokeless tobacco, flavored components and accessories (such as e-juice and flavored wraps), and products marketed as flavored. The aforementioned bans come with exemptions, such as excluding adult-only stores, grandfathering existing retailers, or exempting stores more than 1,000 feet away from schools. The two most common exemptions to the 28 bans are a) excluding adult only stores (4 jurisdictions) and b) excluding menthol flavors from the ban (8 jurisdictions). Two cities, Santa Cruz and Santa Maria, both considered comparable cities to San Luis Obispo, are currently pursuing and/or implementing flavored tobacco regulations. On November 27, 2018, Santa Cruz’s City Council voted to enact a comprehensive ban of flavored tobacco products. Based on discussions with other cities who reported decreased efficacy with, and retailer complaints over, exempting only certain retailers (i.e. adult only stores), Santa Cruz opted for no exemptions. Santa Cruz did face tobacco retailer opposition to the flavored tobacco ban, with the argument being that vaping helps to transition people away from traditional cigarettes and tobacco products. Based upon discussions with staff from the City of Santa Cruz, no retailers argued that they would be forced to close their doors. Santa Cruz allowed retailers six months to liquidate their existing stock of flavored products, and an additional six months of community education and outreach before their enforcement begins. Meanwhile, the City of Santa Maria is pursuing flavored tobacco restrictions in response to community requests, but it is still in the preliminary stage of the process. Effectiveness of Similar Policies Banning flavored tobacco within a city could reduce youth access and use of tobacco products. Flavored tobacco bans are grounded in the tenant that these products (flavored e-cigarettes, cigarillos, chewing tobacco, e-juices, etc.) are most popular tobacco product among youth.3 Youth cite flavors as a primary reason for using tobacco products,4 with 81% of youth who have used 3 Ambrose BK, Day HR, Rostron B, et al. Flavored Tobacco Product Use Among US Youth Aged 12-17 Years, 2013-2014. Jama. 2015;314(17):1871-1873. Villanti AC, Johnson AL, Ambrose BK, et al. Flavored Tobacco Product Use in Youth and Adults: Findings From the First Wave of the PATH Study (2013-2014). American journal of preventive medicine. 2017. Bonhomme MG, Holder-Hayes E, Ambrose BK, et al. Flavored noncigarette tobacco product use among US adults: 2013-2014. Tobacco control. 2016;25(Suppl 2):ii4-ii13. 4 Rutten LJ, Blake KD, Agunwamba AA, et al. Use of E-Cigarettes Among Current Smokers: Associations Among Reasons for Use, Quit Intentions, and Current Tobacco Use. Nicotine & tobacco research: official journal of the Society for Research on Nicotine and Tobacco. 2015;17(10):1228-1234. 16 Farsalinos KE, Romagna G, Voudris V. Factors associated with dual use of tobacco and electronic cigarettes: A case control study. The International journal on drug policy. 2015;26(6):595-600. 17 Kong G, Morean ME, Cavallo DA, Camenga DR, Krishnan-Sarin S. Reasons for Electronic Cigarette Experimentation and Discontinuation Among Adolescents and Young Adults. Nicotine & tobacco research : official journal of the Society for Research on Nicotine and Tobacco. 2015;17(7):847-854. Packet Page 100 Item 7 Flavored Tobacco Product Regulations Page 4 tobacco starting with a flavored tobacco product.5 A policy would also aim to reduce access to tobacco specifically in retail settings, which is where a significant amount of underage purchasing occurs.6 The first comprehensive local flavored tobacco ban in California was passed by Yolo County in October 2016. As this occurred relatively recently, there are no peer-reviewed studies of the efficacy of a comprehensive flavor ban at a local level yet. However, the data from other longer- established flavor bans (i.e. FDA flavored cigarette ban and New York City flavored tobacco ban) can help predict local policy efficacy. The FDA banned flavored cigarettes (excluding menthol cigarettes) in 2009. This ban resulted in both the reduced probability of adolescents (middle and high school students) becoming cigarette smokers, and a reduction in the total number of cigarettes smoked by adolescents. However, the ban was positively associated with an increase in the adolescent smokers’ use of menthol cigarettes. Thus, while the 2009 flavored cigarette ban did achieve its objective of reducing adolescent tobacco use, the effects were likely diminished by the continued availability of menthol cigarettes and other flavored tobacco products via online outlets.7 In a peer- reviewed research article projecting the impact that a US menthol ban would have on smoking prevalence and smoking-attributable deaths, the conclusion was that that in absence of a menthol ban, smoking prevalence would decline but the percentage of those using menthol products would increase.8 New York City (NYC) prohibited the sale of all flavored tobacco products (excluding menthol products) in 2009, with enforcement beginning in 2010. The evaluation from the NYC legislation found that flavored tobacco product sales and the odds of using any tobacco products among teens declined significantly after enforcement began.9 Policy Considerations Should the Council direct staff to move forward with this issue, staff would conduct a regulatory takings analysis. Specifically, a regulatory taking is a situation in which a government regulation limits the uses of private property to such a degree that the regulation effectively deprives the property owners of economically reasonable use or value of their property to such an extent that it deprives them of utility or value of that property, even though the regulation does not formally divest them of title to it. For some businesses, that may be 5 percent of sales, while it could be higher for others. Analyzing and identifying specific findings, such as the impacts of tobacco 5Dai, H. (2018). Single, Dual, and Poly Use of Flavored Tobacco Products Among Youths. Preventing Chronic Disease, 15(6), E87. Villanti, Johnson, Ambrose, Cummings, Stanton, Rose, . . . Hyland. (2017). Flavored Tobacco Product Use in Youth and Adults: Findings From the First Wave of the PATH Study (2013–2014). American Journal of Preventive Medicine, 53(2), 139-151. 6 Willett, J., Bennett, M., Hair, E., Xiao, H., Greenberg, M., Harvey, E., . . . Vallone, D. (2018). Recognition, use and perceptions of JUUL among youth and young adults. Tobacco Control, 28(1), 115-116. 7 Courtemanche, C.J., Palmer, M.K., Pesko, M.F., 2017. Influence of the flavored cigarette ban on adolescent tobacco use. Am. J. Prev. Med. 52, e139–e146. https://doi.org/10. 1016/j.amepre.2016.11.019 8 Levy, D. T., Pearson, J. L., Villanti, A. C., Blackman, K., Vallone, D. M., Niaura, R. S., & Abrams, D. B. (2011). Modeling the future effects of a menthol ban on smoking prevalence and smoking-attributable deaths in the United States. American journal of public health, 101(7), 1236-40. 9 Farley, S., & Johns, M. (2016). New York City flavored tobacco product sales ban evaluation. Tobacco Control, 26(1), 78-84. Packet Page 101 Item 7 Flavored Tobacco Product Regulations Page 5 products on the youth, that counter a regulatory taking, are critical to minimizing the City’s exposure to potential litigation. Most regulatory takings challenges against tobacco control policies are centered on the argument that the proposed policy will have a negative economic impact on a business. According to the Public Health Law Center, the court typically evaluates regulatory takings claims by looking at whether the regulation has destroyed all value to the business. If the regulations do not go so far as to completely eliminate a business’s value, the court focuses on three factors: (1) the economic impact of the government action; (2) the degree to which the action interferes with reasonable, investment-backed expectations; and (3) the character of the government action. In other words, the court will weigh the economic interests of the business against the law’s goals and purpose.10 The City of Berkeley directly addressed this issue in their 2015 flavored tobacco ban by allowing retailers “engaged primarily” in the sale of e-cigarettes and e-liquids an exemption for up to three years if it made “a showing, as determined by the City Manager or his or her designee, “that [the flavor ban] would result in a taking without just compensation under either the California or the United States Constitution. ‘Engaged primarily’ for purposes of this subsection means that the sale of electronic nicotine delivery systems and e-liquids account for more than 50% of the tobacco retailer’s calendar year 2014 gross receipts.” Potential Next Steps There are several options for the Council to consider as potential next steps: 1) Public hearing only – This would involve moving forward with directly placing the introduction of an ordinance banning the sale of flavored tobacco products in the City on a future City Council agenda. This option could be accomplished in late summer or fall and can be accomplished with existing resources but would not include any public engagement or stakeholder outreach. 2) Standard ordinance amendment process – This would involve a more typical process including a study session to explore the issue in depth during a public meeting, pubic and stakeholder outreach and engagement and a public hearing with ordinance amendments based on the feedback received through the process. This process typically takes 6-9 months and would require additional resources or tradeoffs with other projects currently in process such as Funding the Future. 3) No action at this time - The Council could choose to not take action at this time and closely monitor related Federal and State policies. Attachments 1.Statewide Matrix 2.List of Tobacco Retailers in the City 10 Public Health Law Center. (2011). Tobacco Control and the Takings Clause. Retrieved from https://publichealthlawcenter.org/sites/default/files/resources/tclc-guide-tobacco-takingsclause-2011_0.pdf Packet Page 102 Item 7 CENTER4TOBACCOPOLICY.ORG LUNG.ORG/CALIFORNIA The Center for Tobacco Policy & Organizing | American Lung Association in California 1531 I Street, Suite 201, Sacramento, CA 95814 | Phone: (916) 554.5864 | Fax: (916) 442.8585 ©2018. California Department of Public Health. Funded under contract #14-10013. NOVEMBER 2018 The tobacco industry has a long history of using flavored tobacco to target youth and communities of color. The majority of youth who start experimenting with tobacco begin with flavored tobacco.1 These products come in a variety of candy-like flavors including bubble gum, grape, menthol and cotton candy and include e-cigarettes, hookah tobacco, cigars, smokeless tobacco, and even flavored accessories such as blunt wraps. Since 2009, the United States Food and Drug Administration (FDA) has banned flavored cigarettes nationwide. However, this ban included an exemption for menthol flavored cigarettes and doesn't extend to non-cigarette tobacco products. There are currently no state laws in California restricting the sale of flavored tobacco products. It is up to local communities to take action to protect their youth from the lure of enticing flavored tobacco. The first community to restrict the sale of flavored tobacco in California was Santa Clara County in 2010. Since then, twenty-six communities have passed similar policies. What products may be included? 1. E-Cigarettes – Restricts the sale of flavored electronic cigarettes. 2. Menthol – Restricts the sale of tobacco products labelled as menthol, including cigarettes, smokeless tobacco, little cigars, etc. 3. Little Cigars – Restricts the sale of flavored little cigars, which are small, usually filtered cigars wrapped in brown paper containing tobacco leaf. Little cigars became a popular alternative following the FDA's ban on flavored cigarettes. 4. Smokeless Tobacco – Restricts the sale of flavored smokeless tobacco such as chewing tobacco, dip, snus and snuff. 5. Components & Accessories – Restricts the sale of flavored accessory products such as blunt wraps and e-juice additives. These products cannot be smoked alone and serve as a delivery system for smoked products. 6. Products Marketed as Flavored – Tobacco companies sometimes try to circumvent flavor restrictions by marketing products as flavored without directly labelling them as such. This policy option allows communities to broaden the definition of flavored tobacco to include these products. What exemptions are allowed? 1. Adult-Only Stores Exempted – Adult-only retailers are limited to customers who are 21 and over. This limits sales of flavored tobacco to stores that youth do not have access to. 2. Grandfathered Retailers Exempted – Allows retailers that were in operation prior to a specifed date to continue selling flavored tobacco products. 3. Limited to Youth-Populated Areas – Retailers are required to be a certain distance away from schools, parks, or other youth-oriented locations. Since many flavored tobacco products target youth, including buffer zones is a way to limit their access to flavored products. Resources The Center has additional resources on tobacco retailer licensing ordinances, plug-in policies, and ordinances restricting menthol tobacco available at: http:// center4tobaccopolicy.org/tobacco-policy/tobacco-retail- environment/ . ChangeLab Solutions has model ordinance language available for ordinances restricting flavored tobacco at: http://changelabsolutions.org. © 2013 California Department of Public Health Matrix of Local Ordinances Restricting the Sale of Flavored Tobacco Products Packet Page 103 Item 7 THE AMERICAN LUNG ASSOCiATION IN CALIFORNIA THE CENTER FOR TOBACCO POLICY & ORGANIZING Page 2 of 3 CENTER4TOBACCOPOLICY.ORG LUNG.ORG/CALIFORNIA The Center for Tobacco Policy & Organizing | American Lung Association in California 1531 I Street, Suite 201, Sacramento, CA 95814 | Phone: (916) 554.5864 | Fax: (916) 442.8585 ©2018. California Department of Public Health. Funded under contract #14-10013. City/County Date Passed Products Included Exemptions E-Cigs Menthol Little Cigars Smokeless Components & Accessories Products marketed as flavored Adult-Only Stores Exempted Grandfathered Retailers Exempted? Limited to Youth- Populated Areas? Marin County Nov 2018 X X X X X X Saratoga Oct 2018 X X X X X Half Moon Bay Oct 2018 X X X X X X Portola Valley Sep 2018 X X X X X X Beverly Hills August 2018 X X X X X X Richmond July 2018 X X X X X X Sausalito July 2018 X X X X X San Mateo County June 2018 X X X X X X San Francisco June 2018 X X X X X X Mono County July 2018 X X X X X Windsor March 2018 X X**X X X Cloverdale December 2017 X X X X Fairfax December 2017 X X**X**X San Leandro Oct 2017 X X X X X Palo Alto Oct 2017 X X X X X X X Oakland Sep 2017 X X X X X X X Contra Costa County July 2017 X X X X X X X 1000 ft Los Gatos May 2017 X X X X X X X Novato Jan 2017 X X**X X X Santa Clara County Oct 2016 X X X X X X X Packet Page 104 Item 7 THE AMERICAN LUNG ASSOCiATION IN CALIFORNIA THE CENTER FOR TOBACCO POLICY & ORGANIZING Page 3 of 3 CENTER4TOBACCOPOLICY.ORG LUNG.ORG/CALIFORNIA The Center for Tobacco Policy & Organizing | American Lung Association in California 1531 I Street, Suite 201, Sacramento, CA 95814 | Phone: (916) 554.5864 | Fax: (916) 442.8585 ©2018. California Department of Public Health. Funded under contract #14-10013. City/County Date Passed Products Included Exemptions E-Cigs Menthol Little Cigars Smokeless Components & Accessories Products marketed as flavored Adult-Only Stores Exempted Grandfathered Retailers Exempted? Limited to Youth- Populated Areas? Yolo County Oct 2016 X X X X X Manhattan Beach Dec 2015 X X X X X El Cerrito Oct 2015 X X*X X X X Berkeley Sept 2015 X X X X X X X 600 ft Sonoma June 2015 X X** X***X Hayward July 2014 X X*X X X X X X 500 ft 1 Ambrose, B.K., et al., Flavored Tobacco Product Use Among US Youth Aged 12-17 Years, 2013-2014. JAMA,2015: p.1-3. *Does not include menthol cigarettes **Exempts packages of at least 5 or more ***Doesn't apply to pipe tobacco Packet Page 105 Item 7 Active Tobacco RetailersDate: 1/10/2019Customer Number Customer Status Service Address Line 1 Service Address Line 2 Service Code Invoice Status Customer Number Customer Name Line 19517A151 N SANTA ROSAS17A9517CHEVRON STATIONS INC9514A956 E FOOTHILL BLS17A9514RITE AID #58229527A552 CALIFORNIAS17A9527SEVEN 119526A290 CALIFORNIAS17A9526CAMPUS BOTTLE SHOP9525A201 MADONNA RDS17A9525RALPHS GROCERY CO9523A204 MADONNA RDS17A9523MADONNA SHELL9520A3 SANTA ROSAS17A9520SANTA ROSA SHELL9511A774 FOOTHILLS17A9511CORK AND BOTTLE9508A692 MARSHS17A9508SEVEN ELEVEN STORE #27835C9521A11590 LOS OSOS VALLEY RDS17A9521LAGUNA LAKE SHELL9495A1291 LAUREL LANES17A9495LAUREL LANE MARKET9496A1401 OSOSS17A9496SIDEWALK MARKET9492A3180 BROADS17A9492CHEVRON STATIONS INC9489A3211 BROADS17A9489CROSSROADS LIQUOR9488A2015 BROADS17A9488BROAD STREET UNOCAL9487A2145 BROADS17A9487MANUEL'S9506A157 HIGUERAS17A950676 STATION9504A586 HIGUERAS17A9504SANDY'S LIQUOR AND DELI9503A2000 MONTEREYS17A9503COAST INVESTMENTS, INC.9500A1301 MONTEREYS17A9500SEVEN 119522A12424 LOS OSOS VALLEY RDS17A9522B N B CHEVRON9519A296 SANTA ROSAS17A9519CONICO8180A1251 JOHNSON AVES17A8180RITE AID DRUGS #582010156A973 FOOTHILL BL SUITE 104S17A10156CLOUD 9 IMPORTS8199A3550 BROAD STS17A8199VONS #23060000030909 A871 SANTA ROSA STS17A0000030909 WEIRD WILLIES II CA CORPORATION10198A1111 CHORRO STS17A10198SANCTUARY TOBACCO SHOP, THE0000027566 A3920-3 BROAD STS17A0000027566 THE CLUB SMOKE SHOP10083A2600 BROAD STS17A10083SLO QUICK STOP0000028450 A1756 MONTEREY STS17A0000028450 UNIVERSITY SPIRIT GAS & MINI MART0000025857 A11560 LOS OSOS VALLEY RD, STE S17A0000025857 LAGUNA SMOKES0000032059 A592 CALIFORNIA BLS17A0000032059 ROYAL SMOKE & VAPE0000032058 A487 MADONNA RD, SUITE 2S17A0000032058 SMOKE N VAPE INC0000030280 A158 HIGUERA ST, STE ES17A0000030280 SLO BEVERAGE N MORE INC0000025443 A254 SANTA ROSAS17A0000025443 MOLLER INVESTMENT GROUP #610311183A4021 BROAD STS17A11183EDNA VALLEY SHELL0000025270 A1502 FROOM RANCH WAYS17A0000025270 BEVERAGES & MORE0000028549 A328 MARSH STS17A0000028549 MISSION STATION INC0000025657 A2211 BROAD STS17A0000025657 MOLLER INVESTMENT GROUP #6112Page 1Packet Page 106Item 7 Ban on the sale of all Tobacco Products ~ Beverly Hills (2018) Ban on the sale of Flavored Tobacco & E-cigarettes (including online sales) ~ San Francisco (2019) Policy Approaches to Address Youth Vaping The evidence is clear that flavors play a critical role in the youth vaping epidemic: Nearly all youth e-cigarette users use flavored products and 70% cite flavors as a key reason for their use. In January 2020, the FDA released their policy proposal to address youth vaping, however, many health organizations cited this policy as a shortfall. Here's a snapshot of the policy solutions some California jurisdictions have pursued in an effort to end youth vaping. Ban on the sale of Flavored Tobacco ~ Santa Maria (2020) 50+ Cities & Counties in CA Proposed SB 793 Ban on the sale of Flavored Tobacco (except Mint/Menthol*) ~ Sonoma (2015) Ban on the sale of E-Cigarettes ~ Arroyo Grande (2020) Ban on the sale of Flavored E-cigarette Pods (except Mint/Menthol*) ~ FDA 2020 Proposal MOST RESTRICTIVE LEAST RESTRICTIVE For up-to-date information on tobacco regulation at the federal, state, and local level, contact the Tobacco Control Program at tobaccofree@co.slo.ca.us (Created 1/7/2020) *The National Youth Tobacco Survey found 63.9% of high school e- cigarette users used mint and menthol flavors in 2019. Packet Page 107 Item 7 Chapter 8.14 TOBACCO RETAILER LICENSES 8.14.010 Purpose. 8.14.020 Definitions. 8.14.030 Requirement for tobacco retailer license. 8.14.040 Application procedure. 8.14.050 Issuance of license. 8.14.060 Display of license. 8.14.070 Fees for license. 8.14.080 Licenses nontransferable. 8.14.085 Noncompliance with tobacco related laws—License violation. 8.14.090 License compliance monitoring. 8.14.100 Suspension or revocation of license. 8.14.110 Appeal of suspension and/or revocation. 8.14.120 Administrative fine—Penalties—Enforcement. 8.14.130 Severability. 8.14.010 Purpose. It is the intent of the city of San Luis Obispo, in enacting this chapter, to discourage violations of laws which prohibit or regulate the sale or distribution of tobacco products to minors, but not to expand or reduce the degree to which the acts regulated by state or federal law are criminally proscribed or to alter the penalty provided therefor. (Ord. 1440 § 1 (part), 2003) 8.14.020 Definitions. The following words and phrases, whenever used in this chapter, shall have the meanings defined in this section unless the context clearly requires otherwise: Packet Page 108 Item 7 A.“Electronic smoking device” means an electronic device which can be used to deliver an inhaled dose of nicotine or any other substances (excluding cannabis), including any component, part, or accessory of such a device, whether or not sold separately, including flavored vape juices and liquids used in such devices, even if sold separately. “Electronic smoking device” includes any such electronic smoking device, whether manufactured, distributed, marketed, or sold as an electronic cigarette, an electronic cigar, an electronic cigarillo, an electronic pipe, an electronic hookah, or any other product name or descriptor. B. “Person” means any natural person, partnership, cooperative association, private corporation, personal representative, receiver, trustee, assignee, or any other legal entity. C. “Proprietor” means a person with an ownership or managerial interest in a business. An ownership interest shall be deemed to exist when a person has a ten percent or greater interest in the stock, assets, or income of a business other than the sole interest of security for debt. A managerial interest shall be deemed to exist when a person can or does have, or can or does share, ultimate control over the day-today operations of a business. D. “Tobacco product” means any product containing, made from, or derived from tobacco or nicotine that is intended for human consumption, whether smoked, heated, chewed, absorbed, dissolved, inhaled, snorted, sniffed, or ingested by any other means, including but not limited to cigarettes, cigars, pipe tobacco, snuff, chewing tobacco, dipping tobacco, electronic smoking devices or any other preparation of tobacco including Indian cigarettes called “bidis.” “Tobacco product” does not include any product that has been approved by the United States Food and Drug Administration for sale as a tobacco cessation product or for other therapeutic purposes and is marketed and sold solely for such an approved purpose. E. “Tobacco retailer” means any person who sells, offers for sale, or does or offers to exchange for any form of consideration tobacco, or tobacco products; “tobacco retailing” shall mean the doing of any of these things. F. “Licensing agent” means a city employee designated by the city administrative officer to serve in this capacity. G. “Enforcement agency” means the San Luis Obispo police department. H.“Hearing officer” means the city employee designated by the city administrative officer to serve in this 8.14.030 Requirement for tobacco retailer license. It shall be unlawful for any person to act as a tobacco retailer without first obtaining and maintaining a valid tobacco retailer’s license pursuant to this chapter for each location at which that activity is to occur. No license will be issued to authorize tobacco retailing at other than a fixed location; itinerant tobacco retailing and tobacco retailing from vehicles are prohibited. Packet Page 109 Item 7 No license will be issued to authorize tobacco retailing at any location that is licensed under state law to serve alcoholic beverages for consumption on the premises (e.g., an “on-sale” license issued by the California The sale or distribution by an establishment of an Electronic Smoking Device is prohibited in the City of San Luis Obispo, including all non-flavored and flavored Electronic Smoking Device products, including mint and menthol where the Electronic Smoking Device is: (a)Requires premarket review under 21 U.S.C. § 387j, as may be amended from time to time; and (b)Does not have a premarket review order under 21 U.S.C. § 387j(c)(1)(A)(i), as may be amended from time to time. Department of Alcoholic Beverage Control); tobacco retailing in bars and restaurants serving alcoholic beverages is prohibited. Licenses are valid for one year and each tobacco retailer shall apply for the renewal of his or her tobacco retailer’s license prior to its expiration. The conference of a tobacco retailer license does not confer any new rights under any other law and does not exempt any business that otherwise would be subject to the smoke-free workplace provisions within the San Luis Obispo Municipal Code and Labor Code Section 6404.5. (Ord. 1440 § 1 (part), 2003) 8.14.040 Application procedure. A.Application for a tobacco retailer’s license shall be submitted to the licensing agent in the name of each proprietor/person proposing to conduct retail tobacco sales and shall be signed by such person or an authorized agent thereof. All applications shall be submitted on a form supplied by the licensing agent and shall contain the following information: 1. The name, address, and telephone number of the applicant. 2. The business name, address, and telephone number of each location for which a tobacco retailer’s license is sought. 3. Such other information as the licensing agent deems necessary for enforcement of this chapter. 4. Whether or not any proprietor has previously been issued a license pursuant to this chapter that is, or was at any time, suspended or revoked and, if so, the dates of the suspension period or the date of revocation. (Ord. 1440 § 1 (part), 2003) 8.14.050 Issuance of license. Upon the receipt of an application for a tobacco retailer’s license, the licensing agent shall issue a license unless substantial record evidence demonstrates one of the following bases for denial: A. The application is incomplete or inaccurate; or B. The application seeks authorization for tobacco retailing by a person or at a location for which a suspension is in effect pursuant to Section 8.14.100 of this chapter; or Packet Page 110 Item 7 C. The application seeks authorization for tobacco retailing in an area that is in violation of city zoning pursuant to Title 17 of this code or that is unlawful pursuant to any other local, state, or federal law. (Ord. 1440 § 1 (part), 2003) 8.14.060 Display of license. Each license shall prominently display the license in a public place at each location where tobacco retailing occurs. (Ord. 1440 § 1 (part), 2003) 8.14.070 Fees for license. The fee for a tobacco retailer’s license shall be established by resolution of the city council of the city of San Luis Obispo. The fee shall be calculated so as to recover the total cost, but no more than the total cost, of license administration and enforcement, including, for example, but not limited to, issuing the license, administering the license program, retailer education, retailer inspection and compliance checks, documentation of violation, and prosecution of violators. The fee for tobacco retailer’s license shall be paid to the licensing agent. (Ord. 1440 § 1 (part), 2003) 8.14.080 Licenses nontransferable. A tobacco retailer’s license is nontransferable. For example, if a proprietor to whom a license has been issued changes business location, that proprietor must apply for a new license prior to acting as a tobacco retailer at the new location. Or if the business is sold, the new owner must apply for a license for that location before acting as a tobacco retailer. (Ord. 1440 § 1 (part), 2003) 8.14.085 Noncompliance with tobacco related laws—License violation. Compliance with all local, state and federal tobacco-related laws shall be a condition of a city tobacco retailer license and it shall be a violation of a license for a licensee or his or her agents or employees to violate any local, state or federal tobacco-related law. (Ord. 1473 § 1, 2005) 8.14.090 License compliance monitoring. Compliance with this chapter shall be monitored by the San Luis Obispo police department. At least four compliance checks of each tobacco retailer shall be conducted during each twelve-month period. The cost of compliance monitoring shall be incorporated into the license fee. (Ord. 1440 § 1 (part), 2003) 8.14.100 Suspension or revocation of license. A.In addition to any other penalty authorized by law, a tobacco retailer’s license may be suspended or revoked if the city finds, after notice to the licensee and opportunity to be heard, that the licensee or his or her agents or employees has violated the conditions of the l icense imposed pursuant to this chapter. 1. Upon a finding by the city of a first license violation within any five-year period, the license shall be suspended for thirty days. 2. Upon a finding by the city of a second license violation within any five-year period, the license shall be suspended for ninety days. Packet Page 111 Item 7 3. Upon a finding by the city of a third license violation within any five-year period, the license shall be suspended for one year. 4. Upon a finding by the city of a fourth license violation within any five-year period, the license shall be revoked. B. A tobacco retailer’s license shall be canceled if the city finds, after notice and opportunity to be heard, that one of the following conditions exists. The revocation shall be without prejudice to the filing of a new application for a license. 1. The application is incomplete for failure to provide the information required by Section 8.14.040. 2. The information contained in the application, including supplemental information, if any, is found to be false in any material respect. 3. The application seeks authorization for a license for tobacco retailing that is unlawful. (Ord. 1440 § 1 (part), 2003) 8.14.110 Appeal of suspension and/or revocation. A. A decision of the city to revoke or suspend a license is appealable to a hearing officer and must be filed with the hearing officer at least ten working days prior to the commencement date of the license suspension or revocation. An appeal shall stay all proceedings in furtherance of the appealed action. Following appeal, the decision of the hearing officer may be appealed to the city administrative officer or his or her designee. A decision of the city administrative officer or his or her designee shall be the final decision of the city. B. During a period of license suspension, the tobacco retailer must remove from public view all tobacco products. (Ord. 1440 § 1 (part), 2003) 8.14.120 Administrative fine—Penalties—Enforcement. A.Any violation of the provisions of this chapter by any person is a misdemeanor and is punishable as provided in Chapter 1.12, Section 1.12.030 of this code. 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. If the city of San Luis Obispo finds, based on substantial record evidence, that any unlicensed person has engaged in tobacco retailing activities in violation of Section 8.14.030 of this chapter, the city shall fine that person as follows. Each day that an unlicensed person o ffers tobacco, tobacco products or tobacco 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. C. Violations of this chapter are hereby declared to be public nuisances. Packet Page 112 Item 7 D. 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. (Ord. 1440 § 1 (part), 2003) 8.14.130 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. (Ord. 1440 § 1 (part), 2003) Packet Page 113 Item 7 Page intentionally left blank. Packet Page 114 Item 7 Department Name: Community Development Cost Center: 4003 For Agenda of: February 4, 2020 Placement: Public Hearing Estimated Time: 75 Minutes FROM: Michael Codron, Community Development Director Prepared By: Kyle Van Leeuwen, Assistant Planner SUBJECT: PUBLIC HEARING - INTRODUCE AN ORDINANCE AMENDING TITLE 17 (ZONING REGULATIONS) OF THE MUNICIPAL CODE ASSOCIATED WITH ACCESSORY DWELLING UNIT AND JUNIOR ACCESSORY DWELLING UNIT PROVISIONS, AND ADOPT AN EMERGENCY ORDINANCE APPROVING AMENDMENTS TO TITLE 17 RECOMMENDATION 1. Introduce an ordinance to amend Title 17 (Zoning Regulations) of the Municipal Code (Attachment A), as recommended by Planning Commission (Attachment C) with a statutory exemption from environmental review. 2. Adopt an Emergency Ordinance approving amendments to Title 17 (Zoning Regulations) of the Municipal Code (Attachment B), that will be in effect until April 27, 2020, with a statutory exemption from environmental review. DISCUSSION Background On October 9, 2019, Governor Newsom signed Assembly Bill 68 ("AB 68"), Assembly Bill 670 (“AB 670”), Assembly Bill 881 (“AB 881”), and Senate Bill 13 ("SB 13") into law, all of which became effective on January 1, 2020. These four bills amended various sections of the California Government Code related to accessory dwelling unit (ADU) and junior accessory dwelling unit (JADU) regulations. The new laws regulate parking, type and size of units, approval process and timelines, and water and sewer utility requirements applicable to ADUs and JADUs in an attempt to further facilitate the creation of these units to assist with the housing crisis in the State. The Community Development Department has prepared a draft amendment to the City’s Zoning Regulations Chapter 17.86.020 for compliance with these new State laws. New regulations from the State require that ADU applications be approved within 60 days upon submittal. Due to the required time frames for ordinance adoption and the subsequent effective date, any ADU applications submitted in early January would need to be approved (within the next several weeks) if consistent with the State requirements only. In order to eliminate this “gap” in the applicability of the City of San Luis Obispo’s (“City”) ordinance, it is recommended that the Council adopt an Urgency Ordinance to amend Zoning Regulations Sections 17.86.20, 17.70.120, 17.156.004, and 17.156.022 (Attachment B), alongside the ordinance establishing the permanent amendments. The language and regulations in both the Emergency Ordinance and the permanent ordinance would be the same. Packet Page 115 Item 8 New State Law Requirements Definition of an ADU: “Accessory dwelling unit” means an attached or a detached residential dwelling unit that provides complete independent living facilities for one or more persons and is located on a lot with a proposed or existing primary residence. An accessory dwelling unit includes permanent provisions for living, sleeping, eating, cooking, and sanitation on the same lot as a single-family or multifamily structure is or will be situated. Definition of a JADU: “Junior accessory dwelling unit” means a unit that is no more than 500 square feet in size and is contained entirely within a single-family residence. A junior accessory dwelling unit may include separate sanitation facilities or may share sanitation facilities with the existing structure. AB 68, 670, 881, and SB 13 amended various sections of the California Government Code that regulates ADUs and JADUs, making changes to the ability of local municipalities to regulate such units. The impactful portions of these bills in relation to the City’s Zoning Regulations are summarized below. Changes to State Law applicable to ADUs: A. Expands the type of properties where ADUs can be established to include lots with existing or proposed multifamily structures. B. Allows for multiple ADUs to be established on lots with existing multifamily structures. C. Restricts the ability of the City to require owner-occupancy in connection to any new ADU applications until 2025. D. Specifies ADUs must be ministerially approved when 16 feet in height or less. E. Eliminates any size restrictions that are based on a percentage of the primary residence’s square footage for detached ADUs. F. Eliminates the City’s ability to require replacement parking when a garage or carport is converted or demolished to create an ADU. G. Limits the minimum rear and side setback to four feet from property line. H. Requires ADUs be approved within 60 days when consistent with stated standards (previously 120 days). I. Makes any restrictive covenants or homeowners association restrictions on ADUs unenforceable. J. Limits when impact fees can be levied to ADUs that are 750 square feet or more in size. K. Limits size restrictions for new ADUs in relation to the number of bedrooms provided. Changes to State Law applicable to JADUs: A. Requires approval of JADUs (previously was a choice to allow by local ordinance). B. Requires that JADUs be approved ministerially when consistent with state language or local ordinance. Packet Page 116 Item 8 Planning Commission Review of ADUs and JADUs. On January 8, 2020, the Planning Commission evaluated staff recommended amendments to the ADU and JADU regulations (Attachment C). The Planning Commission supported these amendments, recommending adoption to the City Council, with the exception of 1) language requiring new ADUs to match the primary residence’s roof pitch and color, and 2) prohibiting JADUs within existing attached garages. These recommendations are incorporated into the draft Ordinances (Attachments A & B) and are discussed further below. Modifications to City Ordinance and Planning Commission Recommendations In addition to the required amendments per AB 68, 670, 881, and SB 13, the City has the ability to set stricter objective provisions for certain components of ADUs. All modifications of the existing Zoning Regulations chapter proposed for amendment are included in AttachmentA1. Proposed new language in the Zoning Regulations is underlined and proposed deleted language is shown in strikethrough. City staff worked carefully to 1) ensure the proposed ordinance amendment complies with State law and 2) determine where in the new laws the State permits local jurisdictions to identify objective criteria for ministerial review of ADUs and JADUs. Specific sections that contain more substantive revisions and allowed modification are discussed in detail below: Location Previous state language required that ADUs be permitted on properties where the primary use of the property was a single-family residence. The state has expanded this language to include properties that are developed for multifamily residential use. This also includes mixed use developments, so long as the specific structure associated with the proposed ADU does not contain a commercial use. The proposed updates to the Zoning Regulations will allow for ADUs on such properties that meet the criteria set by the state. Size Requirements The new legislation provides specific unit sizes that must be allowed by a local ordinance. Specifically, a local ordinance must allow ADUs up to 850 square feet, and up to 1,000 square feet if more than one bedroom is proposed. The existing City ordinance allows for ADUs up to 800 square feet in size to be approved through a ministerial building permit and does not set any limits on the number of bedrooms in relation to that size. The proposed new language in the Zoning Regulations will be consistent with this new requirement. The new State legislation also specifies that ADUs up to 16 feet in height be approved by a ministerial building permit only. Staff proposes that the Zoning Regulations language be changed to specifically allow ADUs up to 16 feet in height under a ministerial process. New ADUs proposed to be taller than 16 feet in height would require discretionary review through a Director’s Action approval process. Design Criteria At the Planning Commission hearing, staff suggested additional language related to design standards for ADUs. That additional language state that the new ADU match the roof pitch of the primary unit and use matching colors. This was in addition to existing standards calling for ADUs to match the style and form of the primary unit and use matching materials. Packet Page 117 Item 8 Planning Commission Recommendation: Remove this additional language to allow for some flexibility in designing ADUs, as the specific inclusion of roof pitch and color requirements are too ridged. Staff Response: Staff supports the Planning Commission’s recommendation and this language has been removed from the amendments proposed to council. Junior Accessory Dwelling Units As required by State law, provisions for JADUs are included in the proposed amendment to the Zoning Regulations. JADUs are units created within the footprint of a single-family residence, have a separate entrance, provide food preparation areas and cooking facilities, and are limited to 500 square feet in size. While JADUs can include a kitchen sink and bathroom, those amenities are not required under State law. JADUs must be located on an owner-occupied property and are limited to one per lot. A new section consistent with State law is proposed to be added to the Zoning Regulations to allow for this type of dwelling unit. Planning Commission Recommendation: Allow for garages to be converted to JADUs and allow for ADUs to be converted to JADUs. This scenario was discussed at the Planning Commission hearing as it related to specific public comment. The Planning Commission recommended accommodating this scenario, so long as it did not conflict with State law. Staff Response: Staff has received direction from the California Department of Housing and Community Development that allowing JADUs to be created through garage conversion, or to allow previously created ADUs to be re-designated as JADUs is not consistent with State law. Specifically, JADUs that are converted from existing space must be created from the livable square footage of a single-family residence. Staff has included language specifying this restriction in the proposed amendments. Additional Revisions for Compliance with State Law Staff received additional direction from the California Department of Housing and Community Development after the Planning Commission hearing on January 8th. This discussion identified three aspects of the proposed amendments presented to Planning Commission that were not in compliance with State law. Those aspects are: A. Restricting the number of bedrooms that can be proposed in an ADU to a maximum of two bedrooms. No bedroom limit can be applied. B. Limiting square footage for ADUs that are converted from existing square footage of a single-family structure or created on multifamily lots. No limit can be applied. C. Limiting the number of new detached ADUs on a multifamily lot to not allow at least two units. Two new detached units must be allowed. The proposed amendments presented to Council have incorporated this feedback from the State. Additionally, language specifying that a structure must contain three units to qualify as a multifamily structure has been added, consistent with the definition used by the State. Packet Page 118 Item 8 Policy Context ADUs and JADUs are mandated by the State of California to address housing issues related to supply and affordability. Similarly, the creation of these units, which are smaller in size and primarily created on existing developed lots, advances the Major City Goal to facilitate the production of housing and is consistent with goals and policies of the Land Use 1 and Housing Elements2 of the General Plan. Public Engagement The 12-week time frame between the State’s adoption of the bills regulating ADUs and JADUs and their effective date (January 1, 2020) did not enable staff to conduct workshops or public forums regarding the recommended amendments to the City’s Zoning Regulations in response to these changes to the California Government Code. Public engagement regarding the City’s ADU and JADU ordinance occurred through response to questions and receipt of feedback from the public by Community Development Department staff during the last three years of ADU permitting, which was considered while drafting the proposed amendments. In addition, public correspondence and testimony provided in advance of and during the January 8, 2020 Planning Commission hearing was taken into consideration when formulating the recommendation to the City Council. CONCURRENCE The City Attorney’s office has been involved in the creation of the proposed amendments. Staff has also discussed the proposed amendments with the California Department of Housing and Community Development in order to ensure the proposed amendments comply with State law. ENVIRONMENTAL REVIEW The ordinance is exempt under California Public Resources Code Section 21080.17 (Application of Division to Ordinances Implementing Law Relating to Construction of Dwelling Units and Second Units), which states that: “This division [the California Environmental Quality Act (CEQA)] does not apply to the adoption of an ordinance by a city or county to implement the provisions of Section 65852.1 or Section 65852.2 of the Government Code.” Pursuant to this statute, CEQA does not apply to the adoption of an ordinance by a city or county implementing the provisions of Section 65852.2 of the Government Code, which regulates accessory dwelling units (ADUs) and junior accessory dwelling units (JADUs) (as defined by Government Code Section 65852.22). 1 Land Use Element Goal 21: Actively seek ways to provide housing which is affordable to residents with very low, low, and moderate incomes, within existing neighborhoods and within expansion areas. Policy 2.2.7: Neighborhood Enhancement - The City shall promote infill development, redevelopment, rehabilitation, and adaptive reuse efforts that contribute positively to existing neighborhoods and surrounding areas. Policy 2.3.9. H.: A mix of housing types, and a range of density within an area is generally desirable. 2 Housing Element Policy 6.10: To help meet the Quantified Objectives, the City will support residential infill development and promote higher residential density where appropriate. Policy 6.17: Encourage residential development through infill development and densification within City Limits and in designated expansion areas over new annexation of land. Packet Page 119 Item 8 FISCAL IMPACT When the General Plan was prepared, it was accompanied by a fiscal impact analysis, which found that overall the General Plan was fiscally balanced. Accordingly, since the proposed amendments are consistent with the General Plan, it has a neutral fiscal impact. During its review, the Planning Commission expressed concerns about fiscal impacts associated with the provision of new infrastructure to support ADU’s in existing neighborhoods. At this time, the number of ADU’s expected to be permitted over the next several years is between 30 and 50 units per year spread throughout the City. At the same time, the City has continued to experience reductions in the average occupancy of all residential units in the City. Specifically, the City’s population is not increasing at the steady rate expected based on the number of housing units constructed. Going forward, the City will continue to monitor its infrastructure including water distribution, wastewater collection, traffic congestion, parking availability and other factors in neighborhoods. However, the fiscal impacts associated with the development of ADU’s is not expected to be significant because of the relatively small number of additional units anticipated to be spread out across the City, and because reduced household size in the City means that population is not increasing at the rate previously anticipated. ALTERNATIVES 1. Adopt the Proposed Amendments without the Associated Emergency Ordinance. This would provide for the standard time frame for amendments to take effect. Any application for ADUs and JADUs submitted between January 1 and January 18 would be approved if consistent with state requirements. 2. Adopt the Proposed Emergency Ordinance and Continue Permanent Amendments to a Future Date. The Council could direct staff to conduct additional research on one of more of recommended ordinance components but approve the emergency ordinance to address the gap in the City ordinance’s applicability. The Council should provide direction to staff if this alternative is chosen. 3. Continue the Permanent Amendments to a Future Date and Decline to Adopt the Emergency Ordinance. The Council could direct staff to conduct additional research on one or more of the recommended ordinance components and let the State requirements for ADUs and JADUs take effect in the absence of a City ordinance. The Council should provide direction to staff if this alternative is chosen. 4. Decline to Adopt the Proposed Amendments and Decline to Adopt the Emergency Ordinance. The Council could direct staff to halt efforts to update the City’s ordinance and let the State regulations take effect until directed otherwise by Council. Packet Page 120 Item 8 Attachments: a - Draft Ordinance b - Draft Emergency Ordinance c - Planning Commission Resolution No. PC-1002-20 d - Planning Commission Draft Minutes of January 8, 2020 Packet Page 121 Item 8 O ______ ORDINANCE NO. _____ (2020 SERIES) AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SAN LUIS OBISPO, CALIFORNIA, AMENDING TITLE 17 (ZONING REGULATIONS) OF THE MUNICIPAL CODE ASSOCIATED WITH ACCESSORY DWELLING UNIT AND INTRODUCING JUNIOR ACCESSORY DWELLING UNIT WHEREAS, on October 9, 2019, the California legislature passed, and Governor Newsom signed SB 13, AB 68, AB 670, and AB 881 to encourage development of accessory dwelling units and junior accessory dwelling units; and WHEREAS, the City of San Luis Obispo desires to update its Accessory Dwelling Unit section and introduce a Junior Accessory Dwelling Unit section of Title 17, consistent with current state law; and WHEREAS, the Planning Commission of the City of San Luis Obispo conducted a public hearing in the Council Hearing Room of City Hall, 990 Palm Street, San Luis Obispo, California, on January 8, 2020, for the purpose of considering amendments to Title 17 (Zoning Regulations) of the Municipal Code regarding accessory dwelling units and junior accessory dwelling units and recommended approval of amendments to the Municipal Code with revisions; and WHEREAS, the City Council finds that the proposed text amendments are consistent with the General Plan, the purposes of the Zoning Regulations, and other applicable City ordinances; and WHEREAS, notices of said public hearings were made at the time and in the manner required by law; and NOW, THEREFORE, BE IT ORDAINED by the Council of the City of San Luis Obispo as follows: SECTION 1. Recitals. The above recitals are true and correct and are incorporated herein as the findings of the Council by this reference. SECTION 2. Section 17.70.120 of the San Luis Obispo Municipal Code, entitled Lot Coverage, is hereby amended to read as follows: 17.70.120 – Lot Coverage A. Purpose and Application. As defined in Chapter 17.158 (General Definitions), lot coverage is the ratio of the total area of a lot covered by the footprint of all structures to the net lot area, typically expressed as a percentage of the total lot area, including all buildings, decks, balconies, porches, accessory structures and accessory dwellings, and similar architectural features. Maximum coverage shall be as provided in the specific property development standards for the various zones in Chapters 17.12 through 17.64, inclusive. Packet Page 122 Item 8 Ordinance No. _____ (2020 Series) Page 2 O ______ Figure 3-10: Lot Coverage B. Excluded from Lot Coverage. The following structures shall be excluded from the lot coverage calculation: 1. Uncovered decks, porches, landings, balconies, and stairways that are 30 inches or less in height, as measured from the adjacent existing grade. Figure 3-11: Decks Excluded from Coverage 2. Roof eaves which project 30 inches or less from the structure are not included in the determination of coverage. 3. Swimming pools and hot tubs that are not enclosed in roofed structures or decks. 4. One small, non-habitable accessory structure under 120 square feet and under seven feet high. Any additional structures above quantity of one shall be included in lot coverage. 5. Up to 400 800 square feet of an accessory dwelling unit. Any additional square footage of an accessory dwelling unit shall be included in lot coverage. Packet Page 123 Item 8 Ordinance No. _____ (2020 Series) Page 3 O ______ SECTION 3. Section 17.86.020 of the San Luis Obispo Municipal Code, entitled Accessory dwelling units and guest quarters, is hereby amended to read as follows: 17.86.020 – Accessory dwelling units, and junior accessory dwelling units, and guest quarters. A. Purpose and Applicability. The purpose of this chapter is to prescribe development and site regulations that apply, except where specifically stated, to accessory dwelling units, and junior accessory dwelling units, and guest quarters, as defined in Chapter 17.156 (Land Use Definitions). B. Accessory Dwelling Units. The provisions in this subsection shall apply to accessory dwelling units as defined in Chapter 17.156 (Land Use Definitions) and where allowed in compliance with Chapter 17.10 (Use Regulations). 1. Purpose. The purpose of this chapter is to provide for the creation of accessory dwelling units in a manner that is consistent with requirements identified in Government Code Section 65852.2, as amended from time to time. Implementation of this section is meant to expand housing opportunities by increasing the number of smaller units available within existing neighborhoods. 2. General Requirements. a. Application. Where this section does not contain a particular type of standard or procedure, conventional zoning standards and procedures shall apply. b. Areas Where Accessory Dwelling Units Are Allowed. Upon meeting the requirements of this section, accessory dwelling units may be established in any zone that allows single-unit residential dwellings, when the primary use on the site is an existing or proposed single-unit residential dwelling multi-unit residential dwellings, or mixed-use development (per table 2.1), where a single-family structure, duplex or multifamily structure is existing or proposed. The existing or proposed single-unit residential dwelling is referred to as “primary unit” in this section. Accessory dwelling units that conforms to this section shall not be considered a dwelling unit for the purpose of calculating density. c. Areas Prohibited. Accessory dwelling units shall not be established in any condominium, common interest development or planned development project unless specifically addressed in the planned development ordinance as adopted or amended or any mobile home subdivision or trailer park. c. No Subdivision of Property. No subdivision of property shall be allowed where an accessory dwelling unit has been established unless the subdivision meets all requirements of zoning and subdivision regulations and the resulting subdivision does not maintain the primary residence on the same lot as the accessory dwelling unit(s). Packet Page 124 Item 8 Ordinance No. _____ (2020 Series) Page 4 O ______ d. Sale of Property. This section shall apply to new owners of property where an accessory dwelling unit has been established. All conditions of director’s action to allow exceptions to maximum unit size (if applicable), restrictive covenants and other contractual agreements with the city shall apply to the property and the new owners, except as allowed or prohibited by state law. e. Applicability of Building Codes. Accessory dwelling units shall conform to all applicable building and construction codes. f. Unit Types Allowed. An accessory dwelling unit may be either attached or detached from the primary single-unit residential dwelling on the lot. i. An attached accessory dwelling unit shall be defined as either attached to (by a minimum of one shared wall), or completely contained within, the primary existing space of the single-unit residential dwelling unit or existing accessory structure. ii. A detached accessory dwelling unit shall be defined as new residential square footage not attached or sharing any walls with the primary existing single-unit residential dwelling unit. g. Size of Accessory Dwelling Unit. The gross floor area of an accessory dwelling unit shall be no less than one hundred fifty square feet and shall not exceed the lesser of fifty percent of the primary unit’s existing living area or eight hundred square feet. The director may authorize an exception to this standard to allow an accessory dwelling unit up to one thousand two hundred square feet through the director’s action process. h. Limitation on Number. Accessory dwelling units are limited to one unit per property. 3. Requirements on Lots with a Proposed or Existing Single-Family Structure or Duplex. a. Unit Types Allowed. An accessory dwelling unit on a lot with a single-family structure or duplex may be either attached or detached from the primary unit. i. Attached: An attached accessory dwelling unit shall be either connected to (by a minimum of one shared wall) or contained completely or partially within the existing footprint of a single-family structure or duplex. ii. Detached: A detached accessory dwelling unit shall be either new or converted residential square footage that is not connected to the primary single- family structure or duplex. b. Size of Accessory Dwelling Unit. The gross floor area of an attached or detached accessory dwelling unit shall be as follows: Packet Page 125 Item 8 Ordinance No. _____ (2020 Series) Page 5 O ______ i. Attached: The gross floor area of an attached accessory dwelling unit shall be no less than 150 square feet and shall not exceed the lesser of the following: 50 percent of an existing primary unit’s living area, or; 850 square feet for a studio or one-bedroom unit, or; 1,000 square feet for a unit containing at least two bedrooms. ii. Detached: The gross floor area of a detached accessory dwelling unit shall be no less than 150 square feet and shall not exceed 850 square feet for a studio or one-bedroom unit, or 1,000 square feet for a unit containing at least two bedrooms. iii. An accessory dwelling unit that is entirely within the proposed space of a single-family dwelling or existing space of a single-family dwelling or accessory structure shall be no less than 150 square feet. An expansion of not more than 150 square feet beyond the same physical dimensions as the existing structure may be included if the expansion beyond the physical dimensions of the existing structure is limited to accommodating ingress and egress. This does not apply to duplexes. c. Limitation on Number. Only one accessory dwelling unit is permitted per lot. 4. Requirements on Lots with a Proposed or Existing Multifamily Structure Containing Three or More Units. a. Unit Types Allowed. An accessory dwelling unit on a lot with a multifamily structure may be converted from existing square footage, or as new units detached from the primary structure. i. Converted Square Footage Units: Accessory dwelling units may be created within the portions of existing multifamily structures that are not used as livable space, including, but not limited to, storage rooms, boiler rooms, passageways, attics, basements, or garages, if compliant with state building standards for dwellings. ii. New Detached Units: Accessory dwelling units may be created on a lot that has an existing or proposed multifamily structure and must be detached from the primary structure. b. Size of Accessory Dwelling Unit. The gross floor area of an accessory dwelling unit on a lot with a multifamily structure shall be no less than 150 square feet. c. Limitation on Number. The number of accessory dwelling units shall be limited to no more than 25 percent of the existing or proposed multifamily units but shall not be less than the following per lot: 1) one unit that is converted from existing square footage, or 2) two new detached units. No more than two detached units shall be allowed per lot. Packet Page 126 Item 8 Ordinance No. _____ (2020 Series) Page 6 O ______ d. Lots with both a Multifamily Structure and Single-Family Structure or Duplex. Provisions for accessory dwelling units on lots with multifamily structures cannot not be combined with provisions for lots with single-family structures or duplexes, or vice versa. 3. 5. Performance Standards and Compatibility. a. Design Standards. Accessory dwelling units shall conform to all applicable development standards of the underlying zone, including but not limited to height, setback area, parking, and building coverage, unless otherwise stated in this section or prohibited by state law. i. Accessory dwelling units shall conform to all applicable building and construction codes. ii. No passageway, defined as a pathway that is unobstructed clear to the sky and extends from a street to one entrance of the accessory dwelling unit, shall be required in conjunction with the construction of an detached accessory dwelling unit. iii. No setback shall be required for an existing garage permitted structure that is converted to an accessory dwelling unit, or for an accessory dwelling unit that is constructed in replacement of an existing permitted structure, provided it is in the same location and has the same dimensions. or to a portion of an accessory dwelling unit. iv. A setback of no more than five four feet from the side and rear lot lines shall be required for an accessory dwelling unit. that is constructed above a garage. v. Accessory dwelling units that include the creation of new square footage shall be limited to 16 feet in height. Up to 150 square feet of new square footage may be exempted from this requirement in connection to a conversion of existing upper floor square footage, but only as needed to accommodate ingress and egress. vi. Architectural style and form shall match the style and form of the primary residential structure(s) on the property. vii. The materials of the accessory dwelling unit shall match the materials of the primary residential structure(s) on the property. viii. Accessory dwelling units shall not be required to provide fire sprinklers if fire sprinklers are not required for the primary residence. Packet Page 127 Item 8 Ordinance No. _____ (2020 Series) Page 7 O ______ ix. No additional parking spaces shall be required for an accessory dwelling unit. If a garage or car port is converted or removed to accommodate an accessory dwelling unit, replacement parking is not required. x. Exceptions to these design standards can be approved by the Director, through Directors Action, subject to required findings (section 17.108.040). b. Replacement of Required Parking for Primary Unit. When a garage, carport, or covered parking structure is demolished or converted in conjunction with the construction of an accessory dwelling unit, replacement parking spaces may be located in any configuration on the same lot as the accessory dwelling unit, including but not limited to covered spaces, uncovered spaces, or tandem spaces. Parking shall be permitted only in those locations specified in these zoning regulations. b. Historic Resources. Accessory dwelling units on listed historic properties and in historic districts shall be found consistent with the historic preservation ordinance, including historic preservation guidelines and Secretary of the Interior standards for the treatment of historic properties. c. Utility Connection Fees. Where an accessory dwelling unit is created within an existing structure (primary or accessory), no new utility connection or payment of impact fees shall be required. For all other accessory dwelling units, a new utility connection for the accessory dwelling unit and payment of impact fees shall may be required if the accessory dwelling unit is 750 square feet or more. e. Architectural Compatibility. Accessory dwelling units shall be architecturally and functionally compatible with the primary residence. The accessory dwelling unit shall comply with the following design standards: i. Architectural Style and Form. Architectural style and form shall match or be compatible with the style and form of the primary residence on the property. ii. Materials. The materials of the accessory dwelling unit shall match or be compatible with the materials of the primary residence on the property. 4. 6. Procedure Requirements. An accessory dwelling unit that meets the standards contained in this section shall be subject to ministerial review (building permit) and approval without discretionary review (i.e., use permit, architectural review, etc.) or public hearing. Within one hundred twenty sixty days of receiving a complete application, the city shall approve any such application which complies with all applicable requirements and development standards identified in this chapter. When an accessory dwelling unit is proposed with a new single-family, duplex, or multifamily structure, this sixty-day requirement shall not apply. Packet Page 128 Item 8 Ordinance No. _____ (2020 Series) Page 8 O ______ 5. Owner-Occupancy. The owner of the property shall occupy either the primary residence or the accessory dwelling unit. The director may waive this requirement in one-year increments, not to exceed a total of five consecutive years, based on a showing of a hardship. A hardship shall include, but not be limited to, inheritance of property with an accessory dwelling unit. Owner-occupancy is not required in the R-3 or R-4 zones. 6. Covenant Agreement. Prior to the issuance of building permits for an accessory dwelling unit, a covenant agreement shall be recorded which discloses the structure’s approved floor plan and status as an “accessory dwelling unit” and agreeing that the property will be owner occupied. This agreement shall be recorded in the office of the county recorder to provide constructive notice to all future owners of the property. 7. No Short-Term Rental. An accessory dwelling unit cannot be rented for a period of less than 30 days. Homestay use of an accessory dwelling unit is prohibited. 7. 8. Violations. Violation of any of the provisions shall be subject to basic code enforcement action as provided in Title 1 of the Municipal Code. C. Junior Accessory Dwelling Units. The provisions in this Subsection shall apply to junior accessory dwelling units as defined in Chapter 17.156 (Land Use Definitions) and where allowed in compliance with Chapter 17.10 (Use Regulations). 1. Purpose. The purpose of this Chapter is to provide for the creation of junior accessory dwelling units in a manner that is consistent with requirements identified in Government Code Section 65852.22, as amended from time to time. Implementation of this Section is meant to expand housing opportunities by increasing the number of smaller units available within existing neighborhoods. 2. General Requirements. a. Application. Where this Section does not contain a particular type of standard or procedure, conventional zoning standards and procedures shall apply. b. Areas Where Junior Accessory Dwelling Units Are Allowed. Upon meeting the requirements of this Section, junior accessory dwelling units may be established in any zone where the use of the property is a single-unit dwelling, either existing or proposed. A junior accessory dwelling unit may only be allowed on a lot with an accessory dwelling unit if the accessory dwelling unit is detached from the single- family structure. c. Sale of Property. A junior accessory dwelling unit shall not be sold independently of the primary dwelling on the parcel. Packet Page 129 Item 8 Ordinance No. _____ (2020 Series) Page 9 O ______ d. Location. A junior accessory dwelling unit must be created within the walls of a proposed or existing primary dwelling. Conversion of an existing garage or attached accessory dwelling unit into a junior accessory dwelling unit is not permit by this section. i. An expansion of not more than 150 square feet beyond the same physical dimensions as the existing structure may be included if the expansion beyond the physical dimensions of the existing structure is limited to accommodating ingress and egress. e. Size of Junior Accessory Dwelling Unit. The gross floor area of a junior accessory dwelling unit shall not exceed 500 square feet. f. Limitation on Number. Only one junior accessory dwelling unit, may be located on any residentially zoned lot. A junior accessory dwelling unit may only be located on a lot which contains one permitted single-family structure or in connection to the construction of a single-family structure. One detached accessory dwelling unit may also be located on the lot. 3. Performance Standards and Compatibility. a. Design Standards. Junior accessory dwelling units shall conform to all applicable development standards of the underlying zone, including but not limited to height, setback area, parking, and building coverage. A junior accessory dwelling unit that conforms to this Section shall not be considered a dwelling unit for the purpose of calculating density. i. Junior accessory dwelling units shall conform to all applicable building and construction codes. ii. A separate exterior entry shall be provided to serve a junior accessory dwelling unit. iii. The interior connection to the main living area may be maintained or removed. iv. At a minimum, junior accessory dwelling units shall include an efficiency kitchen, which shall contain a cooking facility, food preparation counter, and storage cabinets. v. Junior accessory dwelling units shall not be required to provide fire sprinklers if fire sprinklers are not required for the primary residence. vi. No additional parking spaces shall be required for a junior accessory dwelling unit. Packet Page 130 Item 8 Ordinance No. _____ (2020 Series) Page 10 O ______ b. Utility Connection Fees. Where a junior accessory dwelling unit is created no new utility connection or payment of impact fees shall be required. c. Fire and Life Protection. For purposes of any fire or life protection ordinance or regulation, a junior accessory dwelling unit shall not be considered a separate or new dwelling unit. 4. Procedure Requirements. A junior accessory dwelling unit that meets the standards contained in this Section shall be subject to ministerial review (building permit) and approval without discretionary review (i.e., Use Permit, Architectural Review, etc.) or public hearing. Within sixty days of receiving a complete application, the City shall approve any such application which complies with all applicable requirements of this Section. 5. Owner-Occupancy. The owner of the property shall occupy either the primary residence or the junior accessory dwelling unit. 6. Covenant Agreement. Prior to the issuance of building permits for a junior accessory dwelling unit, a covenant agreement shall be recorded which discloses the structure’s approved floor plan and status as an “junior accessory dwelling unit” and agreeing that the property will be owner occupied. This agreement shall be recorded in the office of the County Recorder to provide constructive notice to all future owners of the property. 7. No Short-Term Rental. A junior accessory dwelling unit cannot be rented for a period of less than 30 days. Homestay use of a junior accessory dwelling unit is prohibited. 8. Violations. Violation of any of the provisions shall be subject to basic code enforcement action as provided in Title 1 of the Municipal Code. C. D. Guest Quarters. 1. Purpose and Intent. The purpose of this section is to establish regulations for the development of guest quarters as an approved accessory use to a primary residential unit. 2. Applicability. This section does not apply to legally established dwellings or accessory dwelling units, or accessory structures which are separately defined in Chapter 17.158 (General Definitions). 3. General Requirements. Guest quarters shall conform to all applicable zoning regulations such as height, yards, parking, building coverage, etc., and shall be subject to the following provisions: a. Accessory to Primary Residence. Guest quarters may only be used in conjunction with a primary residence that contains a kitchen and may consist of detached structures or additions to primary structures. b. Size. Guest quarters shall be no larger than four hundred fifty square feet. Packet Page 131 Item 8 Ordinance No. _____ (2020 Series) Page 11 O ______ c. Density and Development Standards. Guest quarters shall be consistent with density provisions and development standards of the underlying zone. For the purposes of calculating density in multi-unit residential zones, guest quarters will be considered an additional bedroom, accessory to the primary unit. The structure may not exceed four hundred fifty square feet and shall remain in an open floor plan (studio configuration). d. Zones in Which Guest Quarters May Be Allowed. Upon meeting the requirements in this section, guest quarters may be established in the following zones: R-1, R-2, R- 3, R-4, and O, when the primary use on the site is a single-unit residential dwelling. e. Areas Prohibited. Guest quarters shall not be allowed on nonconforming lots. Guest quarters shall not be established in any condominium or planned development project unless specifically addressed in the planned development ordinance as adopted or amended, or any mobile home subdivision or trailer park. Guest quarters shall not be allowed on lots with an existing accessory dwelling unit. f. Owner Occupancy. The property must be occupied by the property owner as the owner’s primary place of residence. If a property can no longer be occupied as the owner’s primary place of residence, the guest quarters may continue to be used as habitable space (e.g., office, pool house, art studio) but can no longer be used as overnight sleeping quarters. g. No Separate Rental. Guest quarters may not be rented separately from the primary dwelling unit. h. No Kitchen Facilities. No facilities meeting the definition of a “kitchen” as defined in Chapter 17.158 (General Definitions) may be installed and plumbing shall be provided for bathroom use only. No plumbing may be provided to “wet bars,” dishwashers, or any features that could be used for a kitchen. Plans approved for construction of guest quarters shall not include countertops or plumbing designed for subsequent installation of sinks, dishwashers, garbage disposals, or any other features consistent with the definition of a “kitchen.” 4. Procedure Requirements. Prior to filing building plans with the city building division, the following shall be met: a. Architectural Review Required. All requests shall be reviewed for consistency with the city’s community design guidelines and this section. The director shall determine, upon receiving a complete application, whether the project shall be forwarded to the architectural review commission for review. All new development projects within historic districts or within properties that contain designated historic structures shall be referred to the cultural heritage committee to be reviewed for consistency with Secretary of the Interior standards for treatment of a historic property. Packet Page 132 Item 8 Ordinance No. _____ (2020 Series) Page 12 O ______ b. Application Contents. A guest quarters permit shall be approved by the director prior to the submittal of documents requesting construction approval. No additional application fees for architectural review shall be required. c. Owner’s Agreement with the City. Prior to the issuance of construction permits, a covenant agreement shall be recorded that discloses the structure’s approved floor plan and status as “guest quarters,” which cannot be used as an independent dwelling unit, and may only be used in conjunction with the primary residence that contains a kitchen. This agreement shall be recorded in the office of the county recorder to provide constructive notice to all future owners of the property. The covenant agreement also may contain authorization for annual inspections, and to allow the city upon reasonable time and notice to inspect the premises for compliance with the agreement and to verify continued compliance with requirements of this section and Health and Safety Codes. If a property can no longer be occupied as the owner’s primary place of residence, the guest quarters may continue to be used as habitable space (e.g., office, pool house, art studio) but shall no longer be used as overnight sleeping quarters. 5. Conversion of Guest Quarters to an Accessory Dwelling Unit. A legally established guest quarters may either be retained in its configuration or be converted to an accessory dwelling unit in compliance with the provisions of this chapter; however, only one accessory dwelling unit or guest quarters is allowed per property. (Ord. 1657 § 17, 2019; Ord. 1650 § 3 (Exh. B), 2018) SECTION 4. Section 17.156.004 of the San Luis Obispo Municipal Code, entitled A Definitions, is hereby amended to read as follows: 17.156.004 – A Definitions Accessory Dwelling Unit (ADU). An attached or detached dwelling unit that provides complete independent living facilities for one or more persons and is located on a lot with a proposed or existing primary residence another primary, single-unit dwelling. An ADU includes permanent provisions for living, sleeping, eating, cooking and sanitation on the same lot as a single-family or multifamily structure is or will be situated the primary unit. An ADU may be structured as one efficiency unit, as defined in of the Health and Safety Code Section 17958.1, and/or (2) a manufactured home, as defined in of the Health and Safety Code Section 18007, among other formats. Accessory Dwelling Unit, Attached. An ADU that is either attached to (by a minimum of one shared wall), or completely contained within, the primary existing space of the single- unit dwelling unit or existing accessory structure. Accessory Dwelling Unit, Detached. An ADU that provides new residential square footage not attached or sharing any walls with the primary existing single-unit dwelling. Packet Page 133 Item 8 Ordinance No. _____ (2020 Series) Page 13 O ______ SECTION 5. Section 17.156.022 of the San Luis Obispo Municipal Code, entitled J Definitions, is hereby amended to read as follows: 17.156.022 – J Definitions Reserved. Junior Accessory Dwelling Unit (JADU). A unit that is no more than 500 square feet in size and contained entirely within a single-family residence. A junior accessory dwelling unit may include separate sanitation facilities or may share sanitation facilities with the existing structure. SECTION 6. 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 7. Environmental Determination. The ordinance is exempt under Public Resources Code Section 21080.17 that applies to local ordinances implementing State regulations related to accessory dwelling units. SECTION 8. Ordinance Number 1657 (2019 Series) is hereby amended and superseded to the extent inconsistent herewith. Packet Page 134 Item 8 Ordinance No. _____ (2020 Series) Page 14 O ______ SECTION 9. 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 New Times, 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 ____, 2020, AND FINALLY ADOPTED by the Council of the City of San Luis Obispo on the ____ day of ____, 2020, 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 ___________________________, 2020. ______________________________ Teresa Purrington City Clerk Packet Page 135 Item 8 O ______ ORDINANCE NO. _____ (2020 SERIES) AN EMERGENCY ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SAN LUIS OBISPO, CALIFORNIA, AMENDING TITLE 17 (ZONING REGULATIONS) OF THE MUNICIPAL CODE ASSOCIATED WITH ACCESSORY DWELLING UNIT AND INTRODUCING JUNIOR ACCESSORY DWELLING UNIT WHEREAS, on October 9, 2019, the California legislature passed, and Governor Newsom signed SB 13, AB 68, AB 670, and AB 881 to encourage development of accessory dwelling units and junior accessory dwelling units; and WHEREAS, the City of San Luis Obispo desires to update its Accessory Dwelling Unit section and introduce a Junior Accessory Dwelling Unit section of Title 17, consistent with current State law; and WHEREAS, the existing ordinance governing the creation of an accessory dwelling units fails to meet the requirements of State law and therefor is null and void under State law; and WHEREAS, the City of San Luis Obispo desires to have amendments to the Accessory Dwelling Unit section and Junior Accessory Dwelling Unit section of Title 17 in effect prior to the 60-day required approval deadline for applications submitted after December 31, 2019, consistent with current State law; and WHEREAS, the City Council, pursuant to its police powers, has broad authority to maintain the public peace, health, safety, and general welfare of its community and to preserve the quality of life for its residents; and WHEREAS, Article VI, Section 605 of the City Charter provides that the City Council may as an emergency measure, for preserving the public peace, health or safety, and containing a statement of the reasons for its urgency, may be introduced and adopted at once at the same meeting if passed by at least four (4) affirmative votes; and WHEREAS, the emergency ordinance is intended to fulfill the urgent need to establish standards, criteria and procedures for ministerial approval of accessory dwelling units and junior accessory dwelling units within the sixty-day mandatory approval period established by State Law; and WHEREAS, an emergency ordinance that is effective immediately is necessary to avoid the immediate threat to public peace, health, safety, or welfare, as failure to adopt this emergency ordinance could result in projects receiving approval that are inconsistent with the City’s regulatory scheme, which is established to protect public peace, health, safety, or welfare; and NOW, THEREFORE, BE IT ORDAINED by the Council of the City of San Luis Obispo as follows: Packet Page 136 Item 8 Ordinance No. _____ (2020 Series) Page 2 O ______ SECTION 1. Incorporation of Recitals. The City Council finds that the forgoing recitals and administrative report presented with this ordinance are true and correct and are incorporated in the ordinance by this reference and adopted as the findings of the City Council. SECTION 2. Findings. The City Council herby finds, determines and declares that this emergency ordinance, adopted pursuant to Government Code Sections 36934 and 36937 is necessary because: (a) State law requires applications for the creation of accessory dwelling units be approved within 60 days, which is less than the number of days needed to update the City’s ordinance to be consistent with the revised State laws. The gap between the date at which the City’s previous ordinance is deemed null and void, and the effective date of the proposed amendments to bring the City’s ordinance into compliance with State law would allow for the construction of new structures that are only compliant with State law. (b) State laws regulating accessory dwelling units are in conflict with the City’s goal of climate action by allowing structures to be built with a setback of only four feet, with no limitation on height. This reduced setback requirement, when applied to the upper stories of a new structure, will block solar exposure to neighboring properties, reducing or eliminating the benefits of rooftop solar panels. (c) Proposed amendments to the City’s accessory dwelling unit ordinance will protect solar exposure and address concerns for privacy, which are not protected or addressed in State requirements for the construction of accessory dwelling units. SECTION 3. Urgent Need. Based on the foregoing recitals and findings, all of which are deemed true and correct, this ordinance is urgently needed for the immediate preservation of the public peace, health, safety, or welfare. This ordinance shall take effect immediately upon adoption in accordance with the provisions set forth in Article VI, Section 605 of the City Charter. SECTION 4. Section 17.70.120 of the San Luis Obispo Municipal Code, entitled Lot Coverage, is hereby amended to read as follows: 17.70.120 – Lot Coverage A. Purpose and Application. As defined in Chapter 17.158 (General Definitions), lot coverage is the ratio of the total area of a lot covered by the footprint of all structures to the net lot area, typically expressed as a percentage of the total lot area, including all buildings, decks, balconies, porches, accessory structures and accessory dwellings, and similar architectural features. Maximum coverage shall be as provided in the specific property development standards for the various zones in Chapters 17.12 through 17.64, inclusive. Packet Page 137 Item 8 Ordinance No. _____ (2020 Series) Page 3 O ______ Figure 3-10: Lot Coverage B. Excluded from Lot Coverage. The following structures shall be excluded from the lot coverage calculation: 1. Uncovered decks, porches, landings, balconies, and stairways that are 30 inches or less in height, as measured from the adjacent existing grade. Figure 3-11: Decks Excluded from Coverage 2. Roof eaves which project 30 inches or less from the structure are not included in the determination of coverage. 3. Swimming pools and hot tubs that are not enclosed in roofed structures or decks. 4. One small, non-habitable accessory structure under 120 square feet and under seven feet high. Any additional structures above quantity of one shall be included in lot coverage. 5. Up to 400 800 square feet of an accessory dwelling unit. Any additional square footage of an accessory dwelling unit shall be included in lot coverage. Packet Page 138 Item 8 Ordinance No. _____ (2020 Series) Page 4 O ______ SECTION 5. Section 17.86.020 of the San Luis Obispo Municipal Code, entitled Accessory dwelling units and guest quarters, is hereby amended to read as follows: 17.86.020 – Accessory dwelling units, and junior accessory dwelling units, and guest quarters. A. Purpose and Applicability. The purpose of this chapter is to prescribe development and site regulations that apply, except where specifically stated, to accessory dwelling units, and junior accessory dwelling units, and guest quarters, as defined in Chapter 17.156 (Land Use Definitions). B. Accessory Dwelling Units. The provisions in this subsection shall apply to accessory dwelling units as defined in Chapter 17.156 (Land Use Definitions) and where allowed in compliance with Chapter 17.10 (Use Regulations). 1. Purpose. The purpose of this chapter is to provide for the creation of accessory dwelling units in a manner that is consistent with requirements identified in Government Code Section 65852.2, as amended from time to time. Implementation of this section is meant to expand housing opportunities by increasing the number of smaller units available within existing neighborhoods. 2. General Requirements. a. Application. Where this section does not contain a particular type of standard or procedure, conventional zoning standards and procedures shall apply. b. Areas Where Accessory Dwelling Units Are Allowed. Upon meeting the requirements of this section, accessory dwelling units may be established in any zone that allows single-unit residential dwellings, when the primary use on the site is an existing or proposed single-unit residential dwelling multi-unit residential dwellings, or mixed-use development (per table 2.1), where a single-family structure, duplex or multifamily structure is existing or proposed. The existing or proposed single-unit residential dwelling is referred to as “primary unit” in this section. Accessory dwelling units that conforms to this section shall not be considered a dwelling unit for the purpose of calculating density. c. Areas Prohibited. Accessory dwelling units shall not be established in any condominium, common interest development or planned development project unless specifically addressed in the planned development ordinance as adopted or amended or any mobile home subdivision or trailer park. c. No Subdivision of Property. No subdivision of property shall be allowed where an accessory dwelling unit has been established unless the subdivision meets all requirements of zoning and subdivision regulations and the resulting subdivision does not maintain the primary residence on the same lot as the accessory dwelling unit(s). Packet Page 139 Item 8 Ordinance No. _____ (2020 Series) Page 5 O ______ d. Sale of Property. This section shall apply to new owners of property where an accessory dwelling unit has been established. All conditions of director’s action to allow exceptions to maximum unit size (if applicable), restrictive covenants and other contractual agreements with the city shall apply to the property and the new owners, except as allowed or prohibited by state law. e. Applicability of Building Codes. Accessory dwelling units shall conform to all applicable building and construction codes. f. Unit Types Allowed. An accessory dwelling unit may be either attached or detached from the primary single-unit residential dwelling on the lot. i. An attached accessory dwelling unit shall be defined as either attached to (by a minimum of one shared wall), or completely contained within, the primary existing space of the single-unit residential dwelling unit or existing accessory structure. ii. A detached accessory dwelling unit shall be defined as new residential square footage not attached or sharing any walls with the primary existing single-unit residential dwelling unit. g. Size of Accessory Dwelling Unit. The gross floor area of an accessory dwelling unit shall be no less than one hundred fifty square feet and shall not exceed the lesser of fifty percent of the primary unit’s existing living area or eight hundred square feet. The director may authorize an exception to this standard to allow an accessory dwelling unit up to one thousand two hundred square feet through the director’s action process. h. Limitation on Number. Accessory dwelling units are limited to one unit per property. 3. Requirements on Lots with a Proposed or Existing Single-Family Structure or Duplex. a. Unit Types Allowed. An accessory dwelling unit on a lot with a single-family structure or duplex may be either attached or detached from the primary unit. i. Attached: An attached accessory dwelling unit shall be either connected to (by a minimum of one shared wall) or contained completely or partially within the existing footprint of a single-family structure or duplex. ii. Detached: A detached accessory dwelling unit shall be either new or converted residential square footage that is not connected to the primary single- family structure or duplex. b. Size of Accessory Dwelling Unit. The gross floor area of an attached or detached accessory dwelling unit shall be as follows: Packet Page 140 Item 8 Ordinance No. _____ (2020 Series) Page 6 O ______ i. Attached: The gross floor area of an attached accessory dwelling unit shall be no less than 150 square feet and shall not exceed the lesser of the following: 50 percent of an existing primary unit’s living area, or; 850 square feet for a studio or one-bedroom unit, or; 1,000 square feet for a unit containing at least two bedrooms. ii. Detached: The gross floor area of a detached accessory dwelling unit shall be no less than 150 square feet and shall not exceed 850 square feet for a studio or one-bedroom unit, or 1,000 square feet for a unit containing at least two bedrooms. iii. An accessory dwelling unit that is entirely within the proposed space of a single-family dwelling or existing space of a single-family dwelling or accessory structure shall be no less than 150 square feet. An expansion of not more than 150 square feet beyond the same physical dimensions as the existing structure may be included if the expansion beyond the physical dimensions of the existing structure is limited to accommodating ingress and egress. This does not apply to duplexes. c. Limitation on Number. Only one accessory dwelling unit is permitted per lot. 4. Requirements on Lots with a Proposed or Existing Multifamily Structure Containing Three or More Units. a. Unit Types Allowed. An accessory dwelling unit on a lot with a multifamily structure may be converted from existing square footage, or as new units detached from the primary structure. i. Converted Square Footage Units: Accessory dwelling units may be created within the portions of existing multifamily structures that are not used as livable space, including, but not limited to, storage rooms, boiler rooms, passageways, attics, basements, or garages, if compliant with state building standards for dwellings. ii. New Detached Units: Accessory dwelling units may be created on a lot that has an existing or proposed multifamily structure and must be detached from the primary structure. b. Size of Accessory Dwelling Unit. The gross floor area of an accessory dwelling unit on a lot with a multifamily structure shall be no less than 150 square feet. c. Limitation on Number. The number of accessory dwelling units shall be limited to no more than 25 percent of the existing or proposed multifamily units but shall not be less than the following per lot: 1) one unit that is converted from existing square footage, or 2) two new detached units. No more than two detached units shall be allowed per lot. Packet Page 141 Item 8 Ordinance No. _____ (2020 Series) Page 7 O ______ d. Lots with both a Multifamily Structure and Single-Family Structure or Duplex. Provisions for accessory dwelling units on lots with multifamily structures cannot not be combined with provisions for lots with single-family structures or duplexes, or vice versa. 3. 5. Performance Standards and Compatibility. a. Design Standards. Accessory dwelling units shall conform to all applicable development standards of the underlying zone, including but not limited to height, setback area, parking, and building coverage, unless otherwise stated in this section or prohibited by state law. i. Accessory dwelling units shall conform to all applicable building and construction codes. ii. No passageway, defined as a pathway that is unobstructed clear to the sky and extends from a street to one entrance of the accessory dwelling unit, shall be required in conjunction with the construction of an detached accessory dwelling unit. iii. No setback shall be required for an existing garage permitted structure that is converted to an accessory dwelling unit, or for an accessory dwelling unit that is constructed in replacement of an existing permitted structure, provided it is in the same location and has the same dimensions. or to a portion of an accessory dwelling unit. iv. A setback of no more than five four feet from the side and rear lot lines shall be required for an accessory dwelling unit. that is constructed above a garage. v. Accessory dwelling units that include the creation of new square footage shall be limited to 16 feet in height. Up to 150 square feet of new square footage may be exempted from this requirement in connection to a conversion of existing upper floor square footage, but only as needed to accommodate ingress and egress. vi. Architectural style and form shall match the style and form of the primary residential structure(s) on the property. vii. The materials of the accessory dwelling unit shall match the materials of the primary residential structure(s) on the property. viii. Accessory dwelling units shall not be required to provide fire sprinklers if fire sprinklers are not required for the primary residence. Packet Page 142 Item 8 Ordinance No. _____ (2020 Series) Page 8 O ______ ix. No additional parking spaces shall be required for an accessory dwelling unit. If a garage or car port is converted or removed to accommodate an accessory dwelling unit, replacement parking is not required. x. Exceptions to these design standards can be approved by the Director, through Directors Action, subject to required findings (section 17.108.040). b. Replacement of Required Parking for Primary Unit. When a garage, carport, or covered parking structure is demolished or converted in conjunction with the construction of an accessory dwelling unit, replacement parking spaces may be located in any configuration on the same lot as the accessory dwelling unit, including but not limited to covered spaces, uncovered spaces, or tandem spaces. Parking shall be permitted only in those locations specified in these zoning regulations. b. Historic Resources. Accessory dwelling units on listed historic properties and in historic districts shall be found consistent with the historic preservation ordinance, including historic preservation guidelines and Secretary of the Interior standards for the treatment of historic properties. c. Utility Connection Fees. Where an accessory dwelling unit is created within an existing structure (primary or accessory), no new utility connection or payment of impact fees shall be required. For all other accessory dwelling units, a new utility connection for the accessory dwelling unit and payment of impact fees shall may be required if the accessory dwelling unit is 750 square feet or more. e. Architectural Compatibility. Accessory dwelling units shall be architecturally and functionally compatible with the primary residence. The accessory dwelling unit shall comply with the following design standards: i. Architectural Style and Form. Architectural style and form shall match or be compatible with the style and form of the primary residence on the property. ii. Materials. The materials of the accessory dwelling unit shall match or be compatible with the materials of the primary residence on the property. 4. 6. Procedure Requirements. An accessory dwelling unit that meets the standards contained in this section shall be subject to ministerial review (building permit) and approval without discretionary review (i.e., use permit, architectural review, etc.) or public hearing. Within one hundred twenty sixty days of receiving a complete application, the city shall approve any such application which complies with all applicable requirements and development standards identified in this chapter. When an accessory dwelling unit is proposed with a new single-family, duplex, or multifamily structure, this sixty-day requirement shall not apply. Packet Page 143 Item 8 Ordinance No. _____ (2020 Series) Page 9 O ______ 5. Owner-Occupancy. The owner of the property shall occupy either the primary residence or the accessory dwelling unit. The director may waive this requir ement in one-year increments, not to exceed a total of five consecutive years, based on a showing of a hardship. A hardship shall include, but not be limited to, inheritance of property with an accessory dwelling unit. Owner-occupancy is not required in the R-3 or R-4 zones. 6. Covenant Agreement. Prior to the issuance of building permits for an accessory dwelling unit, a covenant agreement shall be recorded which discloses the structure’s approved floor plan and status as an “accessory dwelling unit” and agreeing that the property will be owner occupied. This agreement shall be recorded in the office of the county recorder to provide constructive notice to all future owners of the property. 7. No Short-Term Rental. An accessory dwelling unit cannot be rented for a period of less than 30 days. Homestay use of an accessory dwelling unit is prohibited. 7. 8. Violations. Violation of any of the provisions shall be subject to basic code enforcement action as provided in Title 1 of the Municipal Code. C. Junior Accessory Dwelling Units. The provisions in this Subsection shall apply to junior accessory dwelling units as defined in Chapter 17.156 (Land Use Definitions) and where allowed in compliance with Chapter 17.10 (Use Regulations). 1. Purpose. The purpose of this Chapter is to provide for the creation of junior accessory dwelling units in a manner that is consistent with requirements identified in Government Code Section 65852.22, as amended from time to time. Implementation of this Section is meant to expand housing opportunities by increasing the number of smaller units available within existing neighborhoods. 2. General Requirements. a. Application. Where this Section does not contain a particular type of standard or procedure, conventional zoning standards and procedures shall apply. b. Areas Where Junior Accessory Dwelling Units Are Allowed. Upon meeting the requirements of this Section, junior accessory dwelling units may be established in any zone where the use of the property is a single-unit dwelling, either existing or proposed. A junior accessory dwelling unit may only be allowed on a lot with an accessory dwelling unit if the accessory dwelling unit is detached from the single- family structure. c. Sale of Property. A junior accessory dwelling unit shall not be sold independently of the primary dwelling on the parcel. Packet Page 144 Item 8 Ordinance No. _____ (2020 Series) Page 10 O ______ d. Location. A junior accessory dwelling unit must be created within the walls of a proposed or existing primary dwelling. Conversion of an existing garage or attached accessory dwelling unit into a junior accessory dwelling unit is not permit by this section. i. An expansion of not more than 150 square feet beyond the same physical dimensions as the existing structure may be included if the expansion beyond the physical dimensions of the existing structure is limited to accommodating ingress and egress. e. Size of Junior Accessory Dwelling Unit. The gross floor area of a junior accessory dwelling unit shall not exceed 500 square feet. f. Limitation on Number. Only one junior accessory dwelling unit, may be located on any residentially zoned lot. A junior accessory dwelling unit may only be located on a lot which contains one permitted single-family structure or in connection to the construction of a single-family structure. One detached accessory dwelling unit may also be located on the lot. 3. Performance Standards and Compatibility. a. Design Standards. Junior accessory dwelling units shall conform to all applicable development standards of the underlying zone, including but not limited to height, setback area, parking, and building coverage. A junior accessory dwelling unit that conforms to this Section shall not be considered a dwelling unit for the purpose of calculating density. i. Junior accessory dwelling units shall conform to all applicable building and construction codes. ii. A separate exterior entry shall be provided to serve a junior accessory dwelling unit. iii. The interior connection to the main living area may be maintained or removed. iv. At a minimum, junior accessory dwelling units shall include an efficiency kitchen, which shall contain a cooking facility, food preparation counter, and storage cabinets. v. Junior accessory dwelling units shall not be required to provide fire sprinklers if fire sprinklers are not required for the primary residence. vi. No additional parking spaces shall be required for a junior accessory dwelling unit. Packet Page 145 Item 8 Ordinance No. _____ (2020 Series) Page 11 O ______ b. Utility Connection Fees. Where a junior accessory dwelling unit is created no new utility connection or payment of impact fees shall be required. c. Fire and Life Protection. For purposes of any fire or life protection ordinance or regulation, a junior accessory dwelling unit shall not be considered a separate or new dwelling unit. 4. Procedure Requirements. A junior accessory dwelling unit that meets the standards contained in this Section shall be subject to ministerial review (building permit) and approval without discretionary review (i.e., Use Permit, Architectural Review, etc.) or public hearing. Within sixty days of receiving a complete application, the City shall approve any such application which complies with all applicable requirements of this Section. 5. Owner-Occupancy. The owner of the property shall occupy either the primary residence or the junior accessory dwelling unit. 6. Covenant Agreement. Prior to the issuance of building permits for a junior accessory dwelling unit, a covenant agreement shall be recorded which discloses the structure’s approved floor plan and status as an “junior accessory dwelling unit” and agreeing that the property will be owner occupied. This agreement shall be recorded in the office of the County Recorder to provide constructive notice to all future owners of the property. 7. No Short-Term Rental. A junior accessory dwelling unit cannot be rented for a period of less than 30 days. Homestay use of a junior accessory dwelling unit is prohibited. 8. Violations. Violation of any of the provisions shall be subject to basic code enforcement action as provided in Title 1 of the Municipal Code. C. D. Guest Quarters. 1. Purpose and Intent. The purpose of this section is to establish regulations for the development of guest quarters as an approved accessory use to a primary residential unit. 2. Applicability. This section does not apply to legally established dwellings or accessory dwelling units, or accessory structures which are separately defined in Chapter 17.158 (General Definitions). 3. General Requirements. Guest quarters shall conform to all applicable zoning regulations such as height, yards, parking, building coverage, etc., and shall be subject to the following provisions: a. Accessory to Primary Residence. Guest quarters may only be used in conjunction with a primary residence that contains a kitchen and may consist of detached structures or additions to primary structures. b. Size. Guest quarters shall be no larger than four hundred fifty square feet. Packet Page 146 Item 8 Ordinance No. _____ (2020 Series) Page 12 O ______ c. Density and Development Standards. Guest quarters shall be consistent with density provisions and development standards of the underlying zone. For the purposes of calculating density in multi-unit residential zones, guest quarters will be considered an additional bedroom, accessory to the primary unit. The structure may not exceed four hundred fifty square feet and shall remain in an open floor plan (studio configuration). d. Zones in Which Guest Quarters May Be Allowed. Upon meeting the requirements in this section, guest quarters may be established in the following zones: R-1, R-2, R- 3, R-4, and O, when the primary use on the site is a single-unit residential dwelling. e. Areas Prohibited. Guest quarters shall not be allowed on nonconforming lots. Guest quarters shall not be established in any condominium or planned development project unless specifically addressed in the planned development ordinance as adopted or amended, or any mobile home subdivision or trailer park. Guest quarters shall not be allowed on lots with an existing accessory dwelling unit. f. Owner Occupancy. The property must be occupied by the property owner as the owner’s primary place of residence. If a property can no longer be occupied as the owner’s primary place of residence, the guest quarters may continue to be used as habitable space (e.g., office, pool house, art studio) but can no longer be used as overnight sleeping quarters. g. No Separate Rental. Guest quarters may not be rented separately from the primary dwelling unit. h. No Kitchen Facilities. No facilities meeting the definition of a “kitchen” as defined in Chapter 17.158 (General Definitions) may be installed and plumbing shall be provided for bathroom use only. No plumbing may be provided to “wet bars,” dishwashers, or any features that could be used for a kitchen. Plans approved for construction of guest quarters shall not include countertops or plumbing designed for subsequent installation of sinks, dishwashers, garbage disposals, or any other features consistent with the definition of a “kitchen.” 4. Procedure Requirements. Prior to filing building plans with the city building division, the following shall be met: a. Architectural Review Required. All requests shall be reviewed for consistency with the city’s community design guidelines and this section. The director shall determine, upon receiving a complete application, whether the project shall be forwarded to the architectural review commission for review. All new development projects within historic districts or within properties that contain designated historic structures shall be referred to the cultural heritage committee to be reviewed for consistency with Secretary of the Interior standards for treatment of a historic property. Packet Page 147 Item 8 Ordinance No. _____ (2020 Series) Page 13 O ______ b. Application Contents. A guest quarters permit shall be approved by the director prior to the submittal of documents requesting construction approval. No additional application fees for architectural review shall be required. c. Owner’s Agreement with the City. Prior to the issuance of construction permits, a covenant agreement shall be recorded that discloses the structure’s approved floor plan and status as “guest quarters,” which cannot be used as an independent dwelling unit, and may only be used in conjunction with the primary residence that contains a kitchen. This agreement shall be recorded in the office of the county recorder to provide constructive notice to all future owners of the property. The covenant agreement also may contain authorization for annual inspections, and to allow the city upon reasonable time and notice to inspect the premises for compliance with the agreement and to verify continued compliance with requirements of this section and Health and Safety Codes. If a property can no longer be occupied as the owner’s primary place of residence, the guest quarters may continue to be used as habitable space (e.g., office, pool house, art studio) but shall no longer be used as overnight sleeping quarters. 5. Conversion of Guest Quarters to an Accessory Dwelling Unit. A legally established guest quarters may either be retained in its configuration or be converted to an accessory dwelling unit in compliance with the provisions of this chapter; however, only one accessory dwelling unit or guest quarters is allowed per property. (Ord. 1657 § 17, 2019; Ord. 1650 § 3 (Exh. B), 2018) SECTION 6. Section 17.156.004 of the San Luis Obispo Municipal Code, entitled A Definitions, is hereby amended to read as follows: 17.156.004 – A Definitions Accessory Dwelling Unit (ADU). An attached or detached dwelling unit that provides complete independent living facilities for one or more persons and is located on a lot with a proposed or existing primary residence another primary, single-unit dwelling. An ADU includes permanent provisions for living, sleeping, eating, cooking and sanitation on the same lot as a single-family or multifamily structure is or will be situated the primary unit. An ADU may be structured as one efficiency unit, as defined in of the Health and Safety Code Section 17958.1, and/or (2) a manufactured home, as defined in of the Health and Safety Code Section 18007, among other formats. Accessory Dwelling Unit, Attached. An ADU that is either attached to (by a minimum of one shared wall), or completely contained within, the primary existing space of the single- unit dwelling unit or existing accessory structure. Accessory Dwelling Unit, Detached. An ADU that provides new residential square footage not attached or sharing any walls with the primary existing single-unit dwelling. Packet Page 148 Item 8 Ordinance No. _____ (2020 Series) Page 14 O ______ SECTION 7. Section 17.156.022 of the San Luis Obispo Municipal Code, entitled J Definitions, is hereby amended to read as follows: 17.156.022 – J Definitions Reserved. Junior Accessory Dwelling Unit (JADU). A unit that is no more than 500 square feet in size and contained entirely within a single-family residence. A junior accessory dwelling unit may include separate sanitation facilities or may share sanitation facilities with the existing structure. SECTION 8. Effectiveness. This emergency ordinance shall be codified and remain in effect for 180 days, or until permanent amendments to chapter 17, section 17.86.020, are adopted, whichever comes first. On that date, this ordinance shall be automatically repealed and shall be of no further force and effect. SECTION 9. Environmental Determination. In accordance with Public Resources Code Section 21080.17 that applies to local ordinances implementing State regulations related to accessory dwelling units, adoption of this emergency ordinance is exempt from the provisions of the California Environmental Quality Act. SECTION 10. Severability. If any section, subsection, sentence, clause or phrase of this ordinance is for any reason held to be invalid, such decision shall not affect the validity of the remaining portions of this ordinance. The City Council hereby declares that it should have adopted the ordinance and each section, subsection, sentence, clause or phrase thereof, irrespective of the fact that any one or more sections, subsections, sentences, clauses or phrases be declared invalid or unconstitutional. SECTION 11. Legislative history and effective date. This ordinance was adopted on February 4, 2020 and shall be effective immediately and codified in Chapter 17 and shall be automatically repealed on March 18, 2020 at midnight. Packet Page 149 Item 8 Ordinance No. _____ (2020 Series) Page 15 O ______ SECTION 12. 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 New Times, 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 ____, 2020, AND FINALLY ADOPTED by the Council of the City of San Luis Obispo on the ____ day of ____, 2020, 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 __________________________, 2020. ______________________________ Teresa Purrington City Clerk Packet Page 150 Item 8 . ' RESOLUTION NO. PC-1002-20 A RESOLUTION OF THE CITY OF SAN LUIS OBISPO PLANNING COMMISSION RECOMMENDING CITY COUNCIL INTRODUCE AND ADOPT AN ORDINANCE AMENDING TITLE 17 (ZONING REGULATIONS) OF THE MUNICIPAL CODE ASSOCIATED WITH ACCESSORY DWELLING UNIT AND INTRODUCING JUNIOR ACCESSORY DWELLING UNIT PROVISIONS WITH A STATUTORY EXEMPTION FROM ENVIRONMENTAL REVIEW (CODE-0821-2019) WHEREAS, on October 9, 2019, the California legislature passed, and Governor Newsom signed SB 13, AB 68, AB 670, and AB 881 to encourage development of accessory dwelling units and junior accessory dwelling units; and WHEREAS, the City of San Luis Obispo desires to update its Accessory Dwelling Unit section and introduce a Junior Accessory Dwelling Unit section of Title 17, consistent with current state law; and 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 January 8, 2020, for the purpose of considering amendments to Title 17 (Zoning Regulations) of the Municipal Code regarding accessory dwelling units and junior accessory dwelling units; and WHEREAS, said public hearing was for the purpose of formulating and forwarding recommendations to the City Council of the City of San Luis Obispo regarding the proposed legislation; and NOW, THEREFORE, BE IT RESOLVED by the Planning Commission of the City of San Luis Obispo as follows: Section 1. Finding. Based upon all the evidence, the Planning Commission makes the following findings: 1. The proposed amendments to Title 17 are consistent with State law and will not significantly alter the character of the City or cause significant health, safety or welfare concerns, since the amendments are consistent with the General Plan and directly implement City goals and policies. 2. The proposed size limitations for accessory dwelling units are consistent with California Government Code Sections 65852.2 and 65852.22 and will not burden the development of accessory dwelling units and junior accessory dwelling units. Section 2. Environmental Review. The ordinance is exempt under Public Resources Code Section 21080.17 that applies to local ordinances implementing State regulations related to accessory dwelling units Packet Page 151 Item 8 ' I Planning Commission Resolution # 1002-20 CODE-0821-2019 Accessory Dwelling Unit and Junior Accessory Dwelling Unit Zoning Regulations Amendments Page2 Section 3. Recommendation. The Planning Commission does hereby recommend the City Council introduce and adopt an Ordinance amending Title 1 7 (Zoning Regulations) of the Municipal Code associated with accessory dwelling units and introducing junior accessory dwelling unit provisions as set forth in Attachment 1. Upon motion of Commissioner Stevenson, seconded by Commissioner Jorgensen, and on the following roll call vote: AYES: Commissioners Jorgensen, Kahn, McKenzie, Quincey, Stevenson, Vice-Chair Dandekar and Chair Wulkan NOES: None REFRAIN: None ABSENT: None The foregoing resolution was adopted this gth day of January 2020. Packet Page 152 Item 8 Planning Commission Resolution# 1002-20 CODE-0821-2019 Accessory Dwelling Unit and Junior Accessory Dwelling Unit Zoning Regulations Amendments Page 3 Attachment 1: Title 17 Amendments 17.86.020-Accessory dwelling units, junior accessory dwelling units, and guest quarters. A. Purpose and Applicability. The purpose of this Chapter is to prescribe development and site regulations that apply, except where specifically stated, to accessory dwelling units. junior accessory dwelling units, and guest quarters, as defined in Chapter 17.156 (Land Use Definitions). B. Accessory Dwelling Units. The provisions in this subsection shall apply to accessory dwelling units as defined in Chapter 17.156 (Land Use Definitions) and where allowed in compliance with Chapter 17.1 O (Use Regulations). 1. Purpose. The purpose of this chapter is to provide for the creation of accessory dwelling units in a manner that is consistent with requirements identified in Government Code Section 65852.2, as amended from time to time. Implementation of this section is meant to expand housing opportunities by increasing the number of smaller units available within existing neighborhoods. 2. General Requirements. a. Application. Where this section does not contain a particular type of standard or procedure, conventional zoning standards and procedures shall apply. b. Areas Where Accessory Dwelling Units Are Allowed. Upon meeting the requirements of this section, accessory dwelling units may be established in any zone that allows single-unit residential dwellings, whoA tho primaFY use oA tho site is an existing or proposed singly 1:Jnit residential dwelling . multi-unit residential dwellings, or mixed-use development (per table 2.1 ). where a single-family structure or multifamily structure is existing or proposed . The existing or proposed single 1:Jnit residential dwelling is ref erred to as "primary unit" in this section. &. Areas PFehibited. A-OcossOF)' dwelling 1:Jnits shall not be established in any condominium , common interest development or planned development project unless specifically addressed in tho planned de·.iolopmont ordinance as adopted or amended or any mobile home s1:1bdivision or trailer park. de. No Subdivision of Property. No subdivision of property shall be allowed where an accessory dwelling unit has been established unloss tho s1:1bdivision moots all roquirnmonls of zoning and s1:1bdi1Jision regulations and the resulting subdivision does not maintain the primary residence on the same lot as the accessory dwelling unit(s). ed. Sale of Property. This section shall apply to new owners of property where an accessory dwelling unit has been established. All conditions of director's action to allow oxcoptions to maximum unit size (if applicable), restrictive covenants and other contractual agreements with the city shall apply to the property and the new owners, except as allowed by state law. f. URit Ty~es Allewed. An accossOF)' dwelling un~ may be either attached or detached from tho primaF)' single unit residential dwelling on tho lot. (1) An attached accessory dwelling unit shall be defined as either attached to (by a minimum of one shared wall), or completely coAtained within , tho primaF)' existing space of tho single 1:Jnit rosidontial dwelling unit or existing accessory struct1:1ro . {2) A detached accessory dwelling unit shall be defined as new residential sq1:1aro footage not attached or sharing any walls with !he primary existing single 1:1nit res idential dwelling 1;1nit. Packet Page 153 Item 8 Planning Commission Resolution # 1002-20 CODE-0821-2019 Accessory Dwelling Unit and Junior Accessory Dwelling Unit Zoning Regulations Amendments Page4 g. Size af AGsessal)' Dwelling Ynit. The gross floor area ol an accossor:y Elwolling unit shall ee no loss than one hundree lifty sq1:1are foot and shall not ox:cood the lessor of fifty por:cent of the primaf)' 1:1nit's existing living area or: eight h1:1ndFOd sq1:1aro foot. Tl:ie director: may authorize an exception to this standare to allow an accossof)' dwelling unit up to one thousand two h1:1ndred square loot lhrougf:l lho Eliroctor's action process . R. Limitation on Number. Accessory dwelling 1,mits aFO limited to one unit per propofty. 3. Requirements on Lots with a Proposed or Existing Single-Family Structure. !:. Unit Types Allowed. An accessory dwelling unit on a lot with a single-family structure may be either attached or detached from the primary unit and may be constructed as a studio, one-bedroom, or two- bedroom unit. (1) Attached: An attached accessory dwelling unit shall be either connected to (by a minimum of one shared wall) or contained completely or partially within the existing footprint of a single-family structure. (2) Detached : A detached accessory dwelling unit shall be either new or converted square footage that is not connected to the primary single-family structure. b. Size of Accessory Dwelling Unit. The gross floor area of an attached or detached accessory dwelling unit shall be as follows : (1) Attached : The gross floor area of an attached accessory dwelling unit shall be no less than a 150 square feet and shall not exceed the lesser of the following: 50 percent of an existing primary unit's living area, or: 850 square feet for a studio or one-bedroom unit, or; 1,000 square feet for a two- bedroom unit. (2) Detached: The gross floor area of a detached accessory dwelling unit shall be no less than 150 square feet and shall not exceed 850 square feet for a studio or one-bedroom unit, or 1,000 square feet for a two-bedroom unit. c. Limitation on Number. Only one accessory dwelling unit is permitted per lot. 4. Requirements on Lots with a Proposed or Existing Multifamily Structure. a. Unit Types Allowed. An accessory dwelling unit on a lot with a multifamily structure may be converted from exist ing squa re footage, or as new construction either attached to or detached from the primary structure . Accessory dwelling units may be constructed as studio, one-bedroom, or two-bedroom units. (1) Converted Square Footage Units : Accessory dwelling units may be created within the portions of existing multifamily structures that are not used as livable space, includ ing , but not limited to, storage rooms, boiler rooms, passageways, attics, basements . or garages, if compliant with state building standards for dwellings. (2) New Square Footage Units : Accessory dwelling units that include the construction of new square footage may be created on a lot that has an existing or proposed multifamily structure and may be attached to or detached from the primary dwelling, if compliant with state building standards for dwellings . Packet Page 154 Item 8 Planning Commission Resolution # 1002-20 CODE-0821-2019 Accessory Dwelling Unit and Junior Accessory Dwelling Unit Zoning Regulations Amendments Page 5 b. Size of Accessory Dwelling Unit. The gross floor area of an accessory dwelling unit on a lot with a multifamily structure shall be no less than 150 square feet and shall not exceed 850 square feet for a studio or one -bedroom unit. or 1,000 square feet for a two-bedroom unit. Q:. Limitation on Number. The number of accessory dwelling units shall be limited to no more than 25 percent of the existing or proposed multifamily units, but shall not be less than one unit per lot. On a lot with an existing multifamily structure(s), no more than two units that include the construction new square footage shall be allowed . d. Lots with Both Single-Family and Multifamily Structures. Provisions for accessory dwelling units on lots with multifamily structures shall not be combined with provisions for lots with single-family structures or vice versa. 5. Performance Standards and Compatibility. a. Design Standards. Accessory dwelling units shall conform to all applicable development standards of the underlying zone, including but not limited to height, setback area, parking, and building coverage, unless otherwise stated in this section. An accessory dwelling unit that conforms to this Section shall not be considered a dwelling unit for the purpose of calculating density. (1) Accessory dwelling units shall conform to all applicable building and construction codes. (2) No passageway, defined as a pathway that is unobstructed clear to the sky and extends from a street to one entrance of the accessory dwelling unit, shall be required in conjunction with the construction of an Eletached accessory dwelling unit. (3) No setback shall be required for an existing ~ permitted structure that is converted to an accessory dwelling unit. or for an accessory dwelling unit that is constructed in replacement of an existing permitted structure. provided it is in the same location and has the same dimensions. 9f-a por:tioA of aA accessory ElwelliAg 1:mit. (4) A setback of no more than five four feet from the side and rear lot lines shall be required for an accessory dwelling unit. (5) Accessory dwelling units that include the creation of new square footage shall be limited to 16 feet in height. Up to 150 square feet of new square footage may be exempted from this requirement in connection to a conversion of existing upper floor square footage, but only as needed to accommodate ingress and egress. (6) Architectural style and form shall match the style and form of the primary residential structure(s) on the property. (7) The materials of the accessory dwelling unit shall match the materials of the primary residential structure(s) on the property. (8) Accessory dwelling units shall not be required to provide fire sprinklers if fire sprinklers are not required for the primary residence. (9) No additional parking spaces shall be required for an accessory dwelling unit. If a garage or carport is converted or removed to accommodate an accessory dwelling unit. replacement parking is not required . (10) Exceptions to these design standards can be approved by the Director, through Directors Action, subject to required findings {section 17.108 .040). Packet Page 155 Item 8 Planning Commission Resolution # 1002-20 CODE-0821-2019 Accessory Dwelling Unit and Junior Accessory Dwelling Unit Zoning Regulations Amendments Page 6 b. Replasement of Re1:1uired Parking fer Prima')' UAit. When a garage , caFpoFt, or co·rerod 13arking str1:1cl1:1re is demolished or oonveFted in oonjunction with tl:le oonstr1:1ction of an acoessory dwelling 1:1nit, re13laoement 13arking s13aoes may be located in any configuration on tl:le same lo! as tRe accessory dwelling unit , incl1:1ding b1:1t not limited to ooverod spaoes , 1:1nooverod spaces, or tandem s13aces . Parking shall be permitted enly in those looatiens s13eoif ied in these iening regulatiens. b. Historic Resources. Accessory dwelling units on listed historic properties and in historic districts shall be found consistent with the historic preservation ordinance, including historic preservation guidelines and Secretary of the Interior standards for the treatment of historic properties. c. Utility Connection Fees. Where an accessory dwelling unit is created within an existing structure (primary or accessory), no new utility connection or payment of impact fees shall be required. For all other accessory dwelling units, a new utility connection for the accessory dwelling units and payment of impact fees SRaH may be required if the accessory dwelling unit is 750 square feet or more. e. Arshitestural Compatibility. Aooessory dwelling 1:1 nits shall be arol:li teot1:1Fally and functionally cempatible with tl:le primary Fesidence . The accessory dwelling unit shall cem13ly with tRe following design slandaFds : (1) Arohitect1;1ral Style and Form. Arcl:litectural style and farm shall match er be cem13atible with tl:le style and form of tl:le 13rimary residence on tho 13ro130Fty. (2) Materials . Tl:le mate rials of the accessory dwelling un it shall match er be com13atiblo with tho matmials el the 13rimary residence on tl:le 13ro13erty 4.6. Procedure Requirements. An accessory dwelling unit that meets the standards contained in this Section shall be subject to ministerial review (building permit) and approval without discretionary review (i.e., Use Permit, Architectural Review, etc.) or public hearing. Within +2G 60 days of receiving a complete application, the City shall approve any such application which complies with all applicable requirements and development standards identified in this Chapter. When an accessory dwell ing unit is proposed with a new single-family or multifamily structure. this 60 -day requirement shall not apply. 5. OwRer OssupaRsy . Tho owner ef tho 13ro13erty sl:lall occu13y either tho primary Fes idence or the accessery dwelling l:lnit. The direotor may waive this reql:liromont in one year inoroments , net to e*oeed a total of five consecutive years , based en a sl:lowing of a 1:laFdshi13. A hardsl:lip sl:lall inolude , bu! not be limited to , inheritance of 13ro13erty with an acoossory dwelling 1.mit. Owner ooou13anoy is not reql:lirod in tho R 3 or R 4 ~ 6. CoveRaRt AgreemeRt. Prior to tl:lo issuanoo of builaing 13ormits fer an accessory dwelling unit, a oovenant agreement shall be reoerded whioh discloses the str1:1cturo 's appro·1ed fleer 13lan and stat1:1s as an "accessory dwelling unit " and agroeing that the 13ro13erty will be owner ooot113 ied. This agreernent shall be resoFded in the offioe of tho cot1nly reooFder to provide censtmctive notice to all fl:ltl:lre ewners of the 13ro13erty . 7. No Short-Term Rental. An accessory dwelling unit cannot be rented for a period of less than 30 days. Homestay use of an accessory dwelling unit is prohibited. 18. Violations. Violation of any of the provisions shall be subject to basic code enforcement action as provided in Title 1 of the Municipal Code. 9. Exceptions. Except as provided in subsection 8.5.a.(10), no exceptions to the provisions of this Section may be approved. Packet Page 156 Item 8 Planning Commission Resolution # 1002-20 CODE-0821-2019 Accessory Dwelling Unit and Junior Accessory Dwelling Unit Zoning Regulations Amendments Page 7 C. Junior Accessory Dwelling Units. The provisions in this Subsection shall apply to iunior accessory dwelling units as defined in Chapter 17.156 (Land Use Definitions) and where allowed in compliance with Chapter 17.10 (Use Regulations). 1. Purpose. The purpose of this Chapter is to provide for the creation of junior accessory dwelling units in a manner that is consistent with requirements identified in Government Code Section 65852.22, as amended from time to time. Implementation of this Section is meant to expand housing opportunities by increasing the number of smaller units available within existing neighborhoods. 2. General Requirements. a. Application . Where this Section does not contain a particular type of standard or procedure, conventional zoning standards and procedures shall apply. b. Areas Where Junior Accessory Dwelling Units Are Allowed. Upon meeting the requirements of this Section, junior accessory dwelling units may be established in any zone where the use of the property is a single-unit dwelling, either existing or proposed . A junior accessory dwelling unit may only be allowed on a lot with an accessory dwelling unit if the accessory dwelling unit is detached from the single-family structure. c. Sale of Property: A junior accessory dwelling unit shall not be sold independently of the primary dwelling on the parcel. d. Location. A junior accessory dwelling unit must be created within the walls of a proposed or existing primary dwelling. Conversion of an existing attached garage into a junior accessory dwelling unit is permit by this section. (1) An expansion of not more than 150 square feet beyond the same physical dimensions as the existing structure may be included if the expansion beyond the physical dimensions of the existing structure is limited to accommodating ingress and egress. e. Size of Junior Accessory Dwelling Unit. The gross floor area of a junior accessory dwelling unit shall not exceed 500 square feet. f. Limitation on Number. Only one junior accessory dwelling unit may be located on any residentially zoned lot. A junior accessory dwelling unit may only be located on a lot which contains one permitted single-family structure or in connection to the construction of a single-family structure. One detached accessory dwelling unit may also be located on the lot. 3. Performance Standards and Compatibility. a. Design Standards . Junior accessory dwelling units shall conform to all applicable development standards of the underlying zone, including but not limited to height. setback area, parking, and building coverage. A junior accessory dwelling unit that conforms to this Section shall not be considered a dwelling unit for the purpose of calculating density. (1) Junior accessory dwelling units shall conform to all applicable building and construction codes. (2) A separate exterior entry shall be provided to serve a junior accessory dwelling unit. (3) The interior connection to the main living area may be maintained or removed. (4) At a minimum, junior accessory dwelling units shall include an efficiency kitchen, which shall contain a cooking facility, food preparation counter, and storage cabinets. Packet Page 157 Item 8 Planning Commission Resolution # 1002-20 CODE-0821-2019 Accessory Dwelling Unit and Junior Accessory Dwelling Unit Zoning Regulations Amendments Page 8 (5) Junior accessory dwelling units shall not be required to provide fire sprinklers if fire sprinklers are not required for the primary residence . (6) No additional parking spaces shall be required for a junior accessory dwelling unit. b. Utility Connection Fees. Where a junior accessory dwelling unit is created no new utility connection or payment of impact fees shall be required . c. Fire and Life Protection. For purposes of any fire or life protection ordinance or regulation, a junior accessory dwelling un it shall not be considered a separate or new dwelling unit. 4. Procedure Requirements. A junior accessory dwelling unit that meets the standards contained in this Section shall be subject to ministerial review (building permit) and approval without discretionary review (i.e .• Use Permit. Architectural Rev iew. etc.) or public hearing. Within 60 days of receiving a complete application, the City shall approve any such application which complies with all applicable requirements and development standards. 5. Owner-Occupancy. The owner of the property shall occupy either the primary residence or the junior accessory dwelling unit. 6. Covenant Agreement. Prior to the issuance of building permits for a junior accessory dwelling unit, a covenant agreement shall be recorded which discloses the structure 's approved floor plan and status as a "juni or accessory dwelling unit" and agreeing that the property will be owner occupied. This agreement shall be recorded in the office of the County Recorder to provide constructive notice to all future owners of the property. 7. No Short-Term Rental. A junior accessory dwelling unit cannot be rented for a period of less than 30 days. Homestay use of a junior accessory dwelling unit is prohibited 8. Violations. Violation of any of the provisions shall be subject to basic code enforcement action as provided in Title 1 of the Municipal Code: CD. Guest Quarters. 1. Purpose and Intent. The purpose of this Section is to establish regulations for the development of guest quarters as an approved accessory use to a primary residential unit. 2. Applicability. This Section does not apply to legally established dwellings or accessory dwelling units, or accessory structures which are separately defined in Chapter 17.158 (General Definitions). 3. General Requirements. Guest quarters shall conform to all applicable Zoning Regulations such as height, yards, parking, building coverage, etc., and shall be subject to the following provisions: a. Accessory to Primary Residence. Guest quarters may only be used in conjunction with a primary residence that contains a kitchen and may consist of detached structures or additions to primary structures. b. Size. Guest quarters shall be no larger than four hundred fifty square feet. c. Density and Development Standards. Guest quarters shall be consistent with density provisions and development standards of the underlying zone. For the purposes of calculating density in multi-unit residential zones, guest quarters will be considered an additional bedroom, accessory to the primary unit. The structure may not exceed four hundred fifty square feet and shall remain in an open floor plan (studio configuration). Packet Page 158 Item 8 Planning Commission Resolution # 1002-20 CODE-0821-2019 Accessory Dwelling Unit and Junior Accessory Dwelling Unit Zoning Regulations Amendments Page9 d. Zones in Which Guest Quarters May Be Allowed. Upon meeting the requirements in this Section, guest quarters may be established in the following zones: R-1, R-2, R-3, R-4, and 0, when the primary use on the site is a single-unit residential dwelling. e. Areas Prohibited. Guest quarters shall not be allowed on nonconforming lots. Guest quarters shall not be established in any condominium or planned development project unless specifically addressed in the planned development ordinance as adopted or amended, or any mobile home subdivision or trailer park. Guest quarters shall not be allowed on lots with an existing accessory dwelling unit. f. Owner Occupancy. The property must be occupied by the property owner as the owner's primary place of residence. If a property can no longer be occupied as the owner's primary place of residence, the guest quarters may continue to be used as habitable space (e.g., office, pool house, art studio) but can no longer be used as overnight sleeping quarters. g. No Separate Rental. Guest quarters may not be rented separately from the primary dwelling unit. h. No Kitchen Facilities. No facilities meeting the definition of a "kitchen" as defined in Chapter 17.158 (General Definitions) may be installed and plumbing shall be provided for bathroom use only. No plumbing may be provided to "wet bars," dishwashers, or any features that could be used for a kitchen. Plans approved for construction of guest quarters shall not include countertops or plumbing designed for subsequent installation of sinks, dishwashers, garbage disposals, or any other features consistent with the definition of a "kitchen." 4. Procedure Requirements. Prior to filing building plans with the City Building Division, the following shall be met: a. Architectural Review Required. All requests shall be reviewed for consistency with the City's Community Design Guidelines and this Section. The Director shall determine, upon receiving a complete application, whether the project shall be forwarded to the Architectural Review Commission for review. All new development projects within historic districts or within properties that contain designated historic structures shall be referred to the cultural heritage committee to be reviewed for consistency with Secretary of Interior standards for treatment of a historic property. b. Application Contents. A guest quarters permit shall be approved by the Director prior to the submittal of documents requesting construction approval. No additional application fees for architectural review shall be required. c. Owners Agreement with the City. Prior to the issuance of construction permits, a covenant agreement shall be recorded that discloses the structure's approved floor plan and status as "guest quarters," which cannot be used as an independent dwelling unit, and may only be used in conjunction with the primary residence that contains a kitchen. This agreement shall be recorded in the office of the county recorder to provide constructive notice to all future owners of the property. The covenant agreement also may contain authorization for annual inspections, and to allow the City upon reasonable time and notice to inspect the premises for compliance with the agreement and to verify continued compliance with requirements of this Section and Health and Safety codes. If a property can no longer be occupied as the owner's primary place of residence, the guest quarters may continue to be used as habitable space (e.g., office, pool house, art studio) but shall no longer be used as overnight sleeping quarters. 5. Conversion of Guest Quarters to an Accessory Dwelling Unit. A legally established guest quarters may either be retained in its configuration or be converted to an accessory dwelling unit in compliance with the provisions of this Chapter; however, only one accessory dwelling unit or guest quarters is allowed per property. Packet Page 159 Item 8 . . . . ' Planning Commission Resolution # 1002-20 CODE-0821-2019 Accessory Dwelling Unit and Junior Accessory Dwelling Unit Zoning Regulations Amendments Page 10 17.70.120-Lot Coverage A. Purpose and Application. As defined in Chapter 17 .158 (General Definitions), lot coverage is the ratio of the total area of a lot covered by the footprint of all structures to the net lot area, typically expressed as a percentage of the total lot area , including all buildings, decks, balconies, porches, accessory structures and accessory dwellings, and similar architectural features. Maximum coverage shall be as provided in the specific property development standards for the various zones in Chapters 17.12 through 17.64, inclusive . ! roof eave not included '~··-··-··-··-.. -.. -··-·--··-··-··-··-··-··-··-' lot area = 8,000 square feet structures = 2, 100 square feet lot coverage = 26% B. Excluded from Lot Coverage. The following structures shall be excluded from the lot coverage calculation: 1. Uncovered decks , porches, landings, balconies , and stairways that are 30 inches or less in height, as measured from the adjacent existing grade. Figure 3-11: Decks Excluded from Coverage Included in coverage Packet Page 160 Item 8 .. • I • • Planning Commission Resolution # 1002-20 CODE-0821-2019 Accessory Dwelling Unit and Junior Accessory Dwelling Unit Zoning Regulations Amendments Page 11 2. Roof eaves which project 30 inches or less from the structure are not included in the determination of coverage. 3. Swimming pools and hot tubs that are not enclosed in roofed structures or decks. 4. One small, non-habitable accessory structure under 120 square feet and under seven feet high. Any additional structures above quantity of one shall be included in lot coverage. 5. Up to 400 800 square feet of an accessory dwelling unit. Any additional square footage of an accessory dwelling unit shall be included in lot coverage. Packet Page 161 Item 8 . -. . . Planning Commission Resolution # 1002-20 CODE-0821-2019 Accessory Dwelling Unit and Junior Accessory Dwelling Unit Zoning Regulations Amendments Page 12 17.156.004-A Definitions Accessory Dwelling Unit (ADU). An attached or detached dwelling unit that provides complete independent living facilities for one or more persons and is located on a lot with a proposed or existing primary residence aAotl:lor primary, siAglo l:IAit dwolliAg. An ADU includes permanent provisions for living, sleeping, eating, cooking and sanitation on the same lot as a single-family or multifamily structure is or will be situated tho primary uAit An ADU may be structured as one efficiency unit, as defined in of the Health and Safety Code Section 17958.1, and/or (2) a manufactured home, as defined in of the Health and Safety Code Section 18007, among other formats. AccessaF)' QwelliRg URit, Attached. AA ADU tl:lat is oitl:ler attael:lod to (by a miAimum of one shared wall), or eomplotoly eoAtaiAod withiA , the primary existiAg spaeo of the siAglo UAit dwolliAg unit or oxistiAg aecessory str1:1eturo. Accessary DwelliRg Unit, 9etached. An ADU that provides new residential SEjUaFe footage not attaehod or sl:laring any walls with tl:lo primary existing single unit dwelling. 17.156.022-J Definitions Reserved. Junior Accessory Dwelling Unit (JADU). A unit that is no more than 500 square feet in size and contained entirely within a single-family residence. A junior accessory dwelling unit may include separate sanitation facilities or may share sanitation facilities with the existing structure. Packet Page 162 Item 8 City of San Luis Obispo, Council Agenda, City Hall, 990 Palm Street, San Luis Obispo Minutes - Draft Planning Commission Regular Meeting Wednesday, January 8, 2020 CALL TO ORDER A Regular Meeting of the San Luis Obispo Planning Commission was called to order on Wednesday, January 8, 2020 at 6:03 p.m. in the Council Hearing Room, located at 990 Palm Street, San Luis Obispo, California, by Chair Wulkan. ROLL CALL Present: Commissioners Robert Jorgensen, Steve Kahn, John McKenzie, Nicholas Quincey, Charles Stevenson, Vice-Chair Hemalata Dandekar, and Chair Mike Wulkan Absent: None Staff: Community Development Director Michael Codron, Principal Planner Tyler Corey, Assistant City Attorney Charles Bell, and Deputy City Clerk Kevin Christian Pledge of Allegiance PUBLIC COMMENTS ON ITEMS NOT ON THE AGENDA David Brodie 1. CONSENT AGENDA – CONSIDERATION OF MINUTES ACTION: MOTION BY COMMISSIONER STEVENSON, SECOND BY COMMISSIONER KAHN, CARRIED 7-0-0 to approve the Special Planning Commission Minutes of November 6, 2019. Packet Page 163 Item 8 Planning Commission Meeting Minutes Page 2 of 5 January 8, 2020 PUBLIC HEARINGS 2. Project Address: 545 Higuera & 486 Marsh; Case #: ARCH-0017-2019; Zone: C-D; Marsh Higuera Mixed Use LLC, owner/applicant. Review of a proposed four-story, 50- foot tall, mixed-use project consisting of 5,241 square feet of commercial use on the ground floor, eight hotel suites, and 39 residential units. Project includes: a request for a mechanical parking lift; parking, landscaping, and site improvements; and a categorical exemption from environmental review (CEQA). Senior Planner Shawna Scott presented the staff report and responded to Commission inquiries. Applicant representative Joel Snyder, Ten Over Studio, summarized building design considerations, provided comments concerning potential impacts to nearby historic buildings, and reviewed neighborhood auto, pedestrian, and bicycling connectivity. Chair Wulkan opened the public hearing. Public Comments David Brodie David Maksoudian Lori Manfredi James Papp Applicant representative Joel Snyder, and applicant Taylor Judkins, responded to Commission questions raised during public comment. Chair Wulkan closed the public hearing. ACTION: MOTION BY COMMISSIONER STEVENSON, SECOND BY VICE CHAIR DANDEKAR, SECOND WITHDRAWN BY VICE CHAIR DANDEKAR, MOTION SECOND BY COMMISSIONER McKENZIE, CARRIED 5-0-2 (Commissioner Quincey and Vice Chair Dandekar Dissenting) to continue the item to a date uncertain to allow the applicant to redesign the exteriors, specifically the street facing façades, of both buildings, a and b, to bring them into compatibility with adjacent and surrounding architectural forms to protect and preserve the scale and character of the downtown historic area (Community Design Guide specific references: 1.1, 3.1.a, 3.1.b, and generally sections 2 through 5). Further the applicant should explore the idea of step backs to the top two floors, a one-way driveway, and the use of taller trees for screening neighboring properties. 4. Agenda Item 4 was heard at this time. RECESS Chair Wulkan called for a recess at 7:50 p.m. The meeting reconvened at 8:00 p.m. with all Commissioners present. Packet Page 164 Item 8 Planning Commission Meeting Minutes Page 3 of 5 January 8, 2020 3. Project Address: 301 Prado; Case #: ARCH-0424-2019; Zone: B-P-SP, C/OS-SP; 301 Prado Group, LLC, owner/applicant. Review of seven two-story structures consisting of approximately 160,000 square feet of office and industrial space. The project is consistent with the Margarita Area Specific Plan Final Environmental Impact Report (EIR) and Supplemental Initial Study and Mitigated Negative Declaration (MND) adopted for Vesting Tentative Tract Map #3011. Associate Planner Kyle Bell presented the staff report and responded to Commission inquiries. Applicant Representative Pam Ricci, RRM Design Group, reviewed the history and purpose of the project coming before the Planning Commission, and provided a broad overview of project consistency to City Design Guidelines. Chair Wulkan opened the public hearing. Public Comments None Chair Wulkan closed the public hearing ACTION: MOTION BY COMMISSIONER STEVENSON, SECOND BY COMMISSIONER JORGENSEN, CARRIED 7-0-0 to adopt a resolution entitled: “A RESOLUTION OF THE CITY OF SAN LUIS OBISPO PLANNING COMMISSION APPROVING THE DEVELOPMENT OF SEVEN, TWO-STORY STRUCTURES CONSISTING OF APPROXIMATELY 159,663 SQUARE FEET OF OFFICE AND INDUSTRIAL SPACE. THE PROJECT IS CONSISTENT WITH THE MARGARITA AREA SPECIFIC PLAN FINAL ENVIRONMENTAL IMPACT REPORT (EIR) AND SUPPLEMENTAL INITIAL STUDY AND MITIGATED NEGATIVE DECLARATION (IS/MND) ADOPTED FOR VESTING TENTATIVE TRACT MAP #3011; AS REPRESENTED IN THE STAFF REPORT AND ATTACHMENTS DATED JANUARY 8, 2020 (301 PRADO ROAD, ARCH-0424-2019)” with conditions as presented in the staff report, except amending condition 14 to require continuity of sign design within the project. Packet Page 165 Item 8 Planning Commission Meeting Minutes Page 4 of 5 January 8, 2020 The following item was reviewed out of order, prior to the meeting recess and item 3. 4. Project Address: 862 Aerovista; Case #: ARCH-0430-2019 & USE-0522-2019; Zone: BP-SP; SLOQ Properties LLC, owner and Quaglino Properties LLC, applicant. Review of a new two-story office development consisting of 37,508 square feet of office space and associated site improvements including parking lots, site access upgrades, landscaping upgrades, and minor improvements to the unnamed drainage tributary that daylights along the north and west property lines. The project also includes a minor use permit request to allow a medical office use with the Business Park zone within the Airport Area Specific Plan. Project is categorically exempt from environmental review (CEQA). Associate Planner Kyle Bell recommended that the Commission continue the public hearing to a date uncertain to allow the applicant team more time to revise the Biological Assessment Survey in order to provide greater clarification regarding the on-site habitats. ACTION: By unanimous consensus, the Commission continued this item to a date uncertain. 5. Case #: CODE-0821-2019. Review of amendments to Title 17 (Zoning Regulations) of the Municipal Code associated with provisions for Accessory Dwelling Units and Junior Accessory Dwelling Units, with a Categorical Exemption from Environmental Review. Assistant Planner Kyle Van Leeuwen presented the staff report and responded to Commission inquiries. Chair Wulkan opened the public hearing. Public Comments Cristina Pires Dustin Pires Matt Leal Greg Wynn Garrett Philbin reading for Krista Jeffries Tammy Cody Chair Wulkan closed the public hearing. Staff responded to questions raised during public comment. ACTION: MOTION BY COMMISSIONER STEVENSON, SECOND BY COMMISSIONER JORGENSEN, CARRIED 7-0-0 to adopt a resolution entitled: “A RESOLUTION OF THE CITY OF SAN LUIS OBISPO PLANNING COMMISSION RECOMMENDING CITY COUNCIL INTRODUCE AND ADOPT AN ORDINANCE AMENDING TITLE 17 (ZONING REGULATIONS) OF THE MUNICIPAL CODE ASSOCIATED WITH ACCESSORY DWELLING UNIT AND INTRODUCING JUNIOR ACCESSORY DWELLING UNIT PROVISIONS WITH A STATUTORY EXEMPTION FROM ENVIRONMENTAL REVIEW (CODE-0821-2019)” with environmental review and proposed amendments to Zoning Regulations as presented in the staff report with the following exception: Packet Page 166 Item 8 Planning Commission Meeting Minutes Page 5 of 5 January 8, 2020 - Environmental Review to only identify a statutory rule under public resource code 21080.17 as reason for exemption and removing language citing the “general rule” exception from CEQA. - Strike additional language proposed to be added to B.5.a.(6) and B.5.a.(7), and only include language previously include in this section regarding matching style and form, and compatable materials. - Adding B.9. which states that no additional exceptions, except as provided in B.5.a(10) may be approved. - Revising language for Junior Accessory Dwelling Units to allow for garages to be converted to a Junior Accessory Dwelling Unit (C.2.d). - Revising language for Junior Accessory Dwelling Units to allow for an internal connection to the main living area to be maintained or removed. COMMENT AND DISCUSSION 6. Agenda Forecast – Principal Planner Tyler Corey provided an update of upcoming projects. ADJOURNMENT The meeting was adjourned at 9:32 p.m. The next Regular meeting of the Planning Commission is scheduled for Wednesday, January 22, 2020 at 6:00 p.m., in the Council Chamber, 990 Palm Street, San Luis Obispo, California. APPROVED BY THE PLANNING COMMISSION: XX/XX/2020 Packet Page 167 Item 8 Page intentionally left blank. Packet Page 168 Item 8 Department Name: Administration Cost Center: 1021 For Agenda of: February 4, 2020 Placement: Business Estimated Time: 60 Minutes FROM: Greg Hermann, Deputy City Manager Prepared By: Teresa Purrington, City Clerk SUBJECT: COUNCIL COMPENSATION COMMITTEE RECOMMENDATIONS RECOMMENDATION As recommended by the Council Compensation Committee: 1. Adopt a Resolution (Attachment A) entitled “A Resolution of the City Council of the City of San Luis Obispo, California, setting new salaries for the Mayor and Council Members,” increasing the monthly compensation for the Mayor from $1,725.00 to $2,508.00 per month and Council Member from $1,224.00 to $1,990.00, effective the first full payroll period in January 2021. DISCUSSION Background The City of San Luis Obispo's Charter (Section 4101) requires that a Council Compensation Committee be formed during even numbered years to review the Mayor's and Council Members' compensation. Recommended adjustments would then become effective the following January for the next two-year period. Additionally, in 2001 Council adopted Resolution No. 9189, directing a review of compensation for Architectural Review Commissioners and Planning Commissioners in conjunction with its periodic review of Council compensation, as set forth in the Council Policies and Procedures. The appointments and meetings started earlier than normal due to the timing of and workload demands of other projects in the Administration Department. On August 20, 2019, Council increased the membership of the Council Compensation Committee from five member to seven member and appointed previously elected official Dan Rivoire, Personnel Board representative Cal Stevens, and, citizens-at-large Kim Bisheff, Garret Otto, Audrey Bigelow, Jenn Stubbs and Ron Yukelson to serve on the Council Compensation Committee. 1 Section 410: The Mayor and each Council Member shall receive compensation for services payabl e according to the regular City payroll schedule, with the Mayor receiving greater compensation than the other Council Members. Compensation for Mayor and Council Members shall be reviewed biennially in even -numbered years. When warranted, said compensation may be adjusted by Council resolution, to be effective the first full pay period in January of the year following the review. The compensation rate may be revised by the electorate by initiative. Mayor and Council Member expenses incurred for official business shall be reimbursed. Packet Page 169 Item 9 A history of City Council compensation and Planning Commission and Architectural Review Commission stipends is available in Attachment B. Committee Meetings and Review This Council Compensation Committee met four times on September 24, 2019, October 29, 2019, December 10, 2019, and January 7, 2020. The minutes of the meetings are included in Attachment C. The Council Compensation Committee agreed on the following purpose and objectives for the group. Purpose: To build an effective City Council that is inclusive of all candidates who wish to participate. Objectives: 1. Determine if the City is currently compensating Council Members and Advisory Body members appropriately. 2. Determine if compensation is a factor in achieving inclusivity. 3. Determine if there is a fiscally responsible way to make adjustments to compensation to achieve the goal. Members reviewed the full Council compensation package including salary, benefits, expense reimbursement, professional development allowances and other compensation provided. In addition, the Committee compared the Council’s current compensation package with that of other Mayors and Council Members in nine other comparable cities (Charter and General Law). (Attachment D) The Council Compensation Committee also requested staff put a two-question survey on Open City Hall with the following questions: Would you consider, or have you considered running for City Council? How could compensation for the position affect your decision to run for City Council? The survey was posted from December 16, 2019 until January 6, 2020 with 72 responses submitted. Responses can be viewed on the City’s website from Open City Hall: https://www.opentownhall.com/portals/189/Issue_8129. After considering all the information, the Council Compensation Committee on a vote of 6-0-1 (Member Stevens absent) recommended that the monthly compensation be increased for Council Members from $1,224 to $1,990 and for Mayor from $1,725 to $2,508. An increase was based on taking the Area Median Income of $47,777, from the 2013-2018 Census, and prorating that amount using the average number of hours worked as reported by former Mayors and Council Members (20 hours per week for Council Members and 25 hours for Mayor.) This increase represents a 63% increase for Council Members and a 46% increase for the Mayor that the Committee felt was appropriate given the above stated purpose and objectives and reported hours worked. Packet Page 170 Item 9 Planning Commissioners and Architectural Review Commissioners The Council Compensation Committee reviewed the number of meetings and length of time of each meeting (Attachment E) and discussed possibly changing the compensation for the Planning Commission and Architectural Review Commission, however, decided that more time was needed to evaluate the process and purview changes which were implemented as part of the Zoning Ordinance update. After this information is gathered, the City Council may want to re- evaluate the compensation for these commissions. Previous Council Action 1. July 2, 2019 City Council provided direction regarding convening a Council Compensation Committee and directed staff to return with a change to the Council Policies and Procedures increasing the membership of the Council Compensation Committee from five to seven. 2. August 20, 2019 Council approved the changes to the Council Policies and Procedures and appointed the seven-member Council Compensation Committee. Policy Context Charter Section 410 provides that compensation for the Mayor and Council shall be reviewed biennially in even numbered years. Recommended adjustments would then become effective the following January for the next two-year period. The Council Policies and Procedures Section 2.6 specifies that a seven-member citizen committee be appointed by January 31st of even numbered years, and further, that the committee recommendations be forwarded to the Council no later than May 1st. Additionally, in 2001 Council adopted Resolution 9189, directing a review of the compensation for Architectural Review Commissioners and Planning Commissioners in conjunction with its periodic review of Council compensation. Public Engagement All of the meetings of the Council Compensation Committee were published per the Council adopted noticing guidelines. The Open City Hall survey was available for a three -week period. Public comment can be provided to the City Council through written correspondence prior to the meeting and through public testimony at 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: No Budget Year: Funding Identified: No Packet Page 171 Item 9 Funding Sources Total Budget Available Current Funding Request Remaining Balance Annual Ongoing Cost General Fund $23,0822 $46,164 State Federal Fees Other: Total $23,082 $46,164 Fiscal Analysis: The monthly salaries of the Mayor and Council Members would be increased $1,725 to $2,508 and $1,224 to $1,990 per month, respectively. The compensation package for expenses, benefits and professional development would remain unchanged. This increase to salaries will increase the Council’s annual budget for Fiscal Year 2020-21 by $23,082 and $46,164 annually thereafter. The amount of funding can be accommodated through future adjustments to the Administration Department Budget and will be included in the annual budget appropriations presented to the Council. ALTERNATIVES 1. The City Council could decide not to adopt the Council Compensation Committee’s recommendation and leave the Mayor and Council Members compensation the same. 2. The Council could decide to adopt an amount different from the Council Compensation Committee’s recommendation. Attachments: a - Draft Resolution b - History of Compensation c - Council Compensation Committee Minutes d - Comparison Cities e - 2019 Planning Commission and Achitecture Review Commission Meetings 2 Estimated budget from January 1, 2021-June 30, 2021. Packet Page 172 Item 9 R ______ RESOLUTION NO. _____ (2020 SERIES) A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS OBISPO, CALIFORNIA, SETTING NEW SALARIES FOR THE MAYOR AND COUNCIL MEMBERS WHEREAS, Charter Section 410 provides for compensation and reimbursement of expenses for the Mayor and Council Members and establishes a procedure for a biennial review by a five-member Council Compensation Committee; and WHEREAS, on August 21, 2019, the City Council increased membership of the Council Compensation Committee from five members to seven-members and appointed the current members. The Committee has met and reviewed Mayor and Council Member compensation in accordance with the procedure provided by the Charter; and WHEREAS, the Council Compensation Committee has determined that the present criteria for compensation remain valid. However, an adjustment is now appropriate particularly in light of the significant demands associated with the official duties of the Mayor and Council Members; and NOW, THEREFORE, BE IT RESOLVED by the Council of the City of San Luis Obispo as follows: SECTION 1. Chapter 2.1 of the Council Policies and Procedures shall be amended to read as follows: Effective the first full payroll period in January 2020, compensation for services rendered in an official capacity shall be provided as follows: The Mayor shall receive a monthly salary of $ 2,508 and each City Council Member shall receive a monthly salary of $ 1,990. Packet Page 173 Item 9 Resolution No. _____ (2020 Series) Page 2 R ______ SECTION 3. Resolution Number 10886 (2018 Series) is hereby repealed and superseded to the extent inconsistent herewith. Upon motion of _______________________, seconded by _______________________, and on the following roll call vote: AYES: NOES: ABSENT: The foregoing resolution was adopted this _____ day of _____________________ 2020. ____________________________________ 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 ____________________________, 2020. ____________________________________ Teresa Purrington City Clerk Packet Page 174 Item 9 History of Council Compensation The 2008 Council Compensation Committee concurred that it is important that small incremental increases should be made during each two-year review. Members, therefore, recommend a 3% increase per year based on the approximate 3% Consumer Price Index (CPI) over recent years, for a total increase of 6%. This equaled a $60 monthly increase for each Council Member and $72 monthly increase for the Mayor, effective January 1, 2009. On September 30, 2008, Council considered short-term actions to rebalance the Fiscal Year 2008-09 Budget and determined to rescind the Council’s prior action to increase its salary. In 2010 and 2012 Council determined to defer the entire process for appointing a Council Compensation Committee. The 2014 Council Compensation Committee recommended the monthly compensation increase for the Mayor of $300 per month ($1,200 to $1,500) and an increase of $100 for Council Members ($1,000 to $1,200). Council was also provided the option to “opt out” of medical, dental and vision coverage so that the individual member would receive the “opt out” amount equal to City Department Heads. In 2016 Council deferred the entire process for appointing a Council Compensation Committee. The 2018 Council Compensation Committee recommended a 10% increase for the Mayor and Council Members. However, the Council approved increasing the Mayor’s compensation by 15% and 2% for the Council Members. History of Planning Commission and Architectural Review Commission Stipend The compensation for Architectural Review Commissioners and Planning Commissioners was increased in 2001 from $25 to $50 per meeting, with a maximum not to exceed $200 per month. The surveys conducted in 2004, 2006, and 2008 indicated that the stipends paid by the City had remained competitive and the Council Compensation Committee did not recommend an increase at that time. In 2014, Architectural Review Commission and Planning Commission compensation be increased from $50 to $60, not to exceed $240 per month. The 2018 Council Compensation Committee recommended and Council adopted an increase from $60 to $70, not to exceed $280 per month for both the Planning Commission and the Architectural Review Commission. Packet Page 175 Item 9 Minutes – Council Compensation Committee Meeting of September 24, 2019 Page 1 Minutes COUNCIL COMPENSATION COMMITTEE Tuesday, September 24, 2019 Regular Meeting of the Council Compensation Committee CALL TO ORDER A Regular Meeting of the San Luis Obispo Council Compensation Committee was called to order on, Tuesday, September 24, 2019 at 5:30 p.m. in the Council Hearing Room, located at 990 Palm Street, San Luis Obispo, California, by Deputy City Manager Greg Hermann. ROLL CALL Present: Committee Members Audrey Bigelow, Kim Bisheff, Garrett Otto, Dan Rivoire, Cal Stevens, Jenn Stubbs, and Ron Yukelson Absent: None Staff: Greg Hermann Deputy City Manager, Monica Irons, Human Resources Director, Brittani Roltgen, Human Resources Analyst and Teresa Purrington, City Clerk OATH OF OFFICE/INTRODUCTIONS 1.City Clerk Purrington administered the Oath of Office and the Committee Members introduced themselves. PUBLIC COMMENT ITEMS NOT ON THE AGENDA None --End of Public Comment-- BUSINESS ITEMS 2.Selection of Chair and Vice Chair Public Comment None. --End of Public Comment-- Greg Hermann Deputy City Manager called for nominations for Chair. Committee Member Otto nominated Committee Member Rivoire. Committee Member Rivoire accepted the nomination. No other nominations were made. Packet Page 176 Item 9 Minutes – Council Compensation Committee Meeting of September 24, 2019 Page 2 ACTION: CARRIED 7 – 0 Committee Member Dan Rivoire was selected as Chair. Deputy City Manager Hermann turned the meeting over to Chair Rivoire. Chair Rivoire called for nominations for Vice Chair. Committee Member Yukelson nominated Committee Member Bisheff. Committee Member Bisheff accepted the nomination. No other nominations were made. ACTION: CARRIED 7 – 0 Committee Member Kim Bisheff was selected as Vice Chair. 3.ABCs of Open Government Laws, Purview of the Committee and Background Information Greg Hermann, Deputy City Manager and Teresa Purrington, City Clerk provided a PowerPoint presentation and responded to questions. Public Comment None --End of Public Comment-- ACTION: Receive and file no action taken. 4.Action Plan and Topics for Future Consideration Greg Hermann, Deputy City Manager, Monica Irons, Human Resources Director, Brittani Roltgen, Human Resources Analyst and Teresa Purrington, City Clerk provided a PowerPoint presentation and responded to questions. Public Comment None --End of Public Comment-- ACTION: By consensus the Committee provided the following direction regarding items t for the next meeting: •Discussion on values and goals of the Committee regarding Council Compensation. •Brief summary of different approaches to Council Compensation from a variety of Cities including demographics of the Council. •Update of the City Council and Advisory Body Compensation Survey from 2017. •Public outreach processes used by the City to gather community input. 5.Schedule of Future Meeting Dates Teresa Purrington, City Clerk will poll Committee Members for possible meeting date for the last week in October. Packet Page 177 Item 9 \Minutes – Council Compensation Committee Meeting of September 24, 2019 Page 3 ADJOURNMENT The meeting was adjourned at 7:18 p.m. The next Council Compensation Committee meeting is scheduled forTuesday October 29, 2019 at 5:30 p.m., in the Council Hearing Room, 990 Palm Street, San Luis Obispo, California. APPROVED BY THE COUNCIL COMPENSATION COMMITTEE ON:10/29/2019 Packet Page 178 Item 9 Minutes – Revenue Enhancement Oversight Commission Meeting of October 29, 2019 Page 1 Minutes COUNCIL COMPENSATION COMMITTEE Tuesday, October 29, 2019 Regular Meeting of the Council Compensation Committee CALL TO ORDER A Regular Meeting of the San Luis Obispo Council Compensation Committee was called to order on, Tuesday, October 29, 2019 at 5:30 p.m. in the Council Hearing Room, located at 990 Palm Street, San Luis Obispo, California, by Vice Chair Kim Bisheff. ROLL CALL Present: Committee Members Audrey Bigelow, Garrett Otto, Cal Stevens, and Ron Yukelson, Vice Chair Kim Bisheff and Chair Dan Rivoire (6:32) Absent: Committee Member Jenn Stubbs Staff: Greg Hermann Deputy City Manager, Monica Irons, Human Resources Director, Brittani Roltgen, Human Resources Analyst and Teresa Purrington, City Clerk Minutes 1. Minutes of the Council Compensation Committee of September 24, 2019 ACTION: UPON MOTION BY MEMBER YUKELSON, SECONDED BY MEMBER OTTO, CARRIED 5-0 (Member Stubbs and Chair Rivoire absent) to approve the minutes of September 24, 2019. PUBLIC COMMENT ITEMS NOT ON THE AGENDA None --End of Public Comment-- Vice Chair Bisheff indicated that the items would be heard in reverse order. BUSINESS ITEMS 4.Public outreach processes used by the City to gather community input. Deputy City Manager Hermann provided an overview of the report and responded to Committee questions. ACTION: By consensus the committee agreed to receive and file the presentation. Packet Page 179 Item 9 Minutes – Revenue Enhancement Oversight Commission Meeting of October 29, 2019 Page 2 3. Overview of approaches to Council Compensation from a variety of Cities City Clerk Purrington, and Deputy City Manager Hermann provided an overview of the report and responded to Committee questions. Public Comment None. --End of Public Comment-- ACTION: By consensus the committee agreed to receive and file the presentation. 1.Discuss goals and objectives of the Committee regarding Council Compensation. Public Comment Christian Gomez --End of Public Comment-- ACTION: UPON MOTION BY CHAIR RIVOIRE, SECONDED BY VICE CHAIR BISHEFF, CARRIED 6-0 (Member Stubbs absent) to approve the following: Purpose Purpose is to build an effective City Council that is inclusive of all candidates that wish to participate. Objectives Item 1- Determine if we are currently compensating Council Members and Advisory Body members appropriately. •Workload analysis (job description in charter) •Start by sending out what we have information we already have •Comparison cities •Benefits driven changes, typical retirement scenario Item 2 - Determine if compensation is a factor in achieving inclusivity? •Come up with options Item 3 - Determine if there is a fiscally responsible way to make adjustments to compensation to achieve the goal. •Financial overview with focus on FHRP ADJOURNMENT The meeting was adjourned at 7:21 p.m. APPROVED BY THE COUNCIL COMPENSATION COMMITTEE ON: 12/10/2019 Packet Page 180 Item 9 Minutes – Council Compensation Committee Meeting of December 10, 2019 Page 1 Minutes COUNCIL COMPENSATION COMMITTEE Tuesday, December 10, 2019 Regular Meeting of the Council Compensation Committee CALL TO ORDER A Regular Meeting of the San Luis Obispo Council Compensation Committee was called to order on, Tuesday, December 10, 2019 at 5:30 p.m. in the Council Hearing Room, located at 990 Palm Street, San Luis Obispo, California, by Chair Rivoire. ROLL CALL Present: Committee Members Audrey Bigelow, Kim Bisheff, Garrett Otto, Dan Rivoire, Jenn Stubbs, and Ron Yukelson Absent: Committee Member Cal Stevens Staff: Greg Hermann Deputy City Manager, Monica Irons, Human Resources Director, Brittani Roltgen, Human Resources Analyst and Teresa Purrington, City Clerk PUBLIC COMMENT ITEMS NOT ON THE AGENDA None --End of Public Comment-- CONSIDERATION OF MINUTES 1. Minutes of the Council Compensation Committee of October 29, 2019 Public Comment None. --End of Public Comment-- ACTION: UPON MOTION BY MEMBER OTTO, SECONDED BY MEMBER Yukelson, CARRIED 6-0-1 (Member Stevens absent) to approve the Minutes of October 29, 2019 as amended 2. City Budget and Fiscal Health Response Plan Overview Natalie Harnett, Principal Budget Analyst provided a PowerPoint presentation and responded to questions. Packet Page 181 Item 9 Minutes –Council Compensation Committee Meeting of December 10, 2019 Page 2 Public Comment None --End of Public Comment-- ACTION: Receive and file no action taken. 3. City Council Job Description and Current Workload Analysis Greg Hermann, Deputy City Manager, and Teresa Purrington, City Clerk provided a PowerPoint presentation and responded to questions. Public Comment None --End of Public Comment-- ACTION: Receive and file no action taken. 4. Revised Comparison Cities Data and City Council Retirement Scenario Brittani Roltgren, Human Resources Analyst provided a PowerPoint presentation and responded to Commissioner inquiries. Public Comment None --End of Public Comment-- ACTION: Receive and file no action taken. 5. Public Engagement Discussion Greg Hermann Deputy City Manager provided a PowerPoint presentation and responded to Commissioner inquiries. Public Comment None --End of Public Comment-- Member Bisheff left the meeting at 6:39 PM Packet Page 182 Item 9 Minutes –Council Compensation Committee Meeting of December 10, 2019 Page 3 ACTION: By Consensus the Committee requested staff to put a survey up on Open City Hall with the following questions: Would you consider, or have you considered running for City Council? How could compensation for the position affect your decision to run for City Council? 6. Committee Workplan Discussion Chair Rivoire led the discussion regarding next steps for the workplan. ACTION: By consensus the following three dates were provided as possible dates for the next meeting listed in order of preference. City Clerk was directed to poll missing Members to see which date works for everyone. • January 7 • January 6 • January 15 ADJOURNMENT The meeting was adjourned at 7:15 p.m. The next Council Compensation Committee meeting is scheduled for January 7, 2020 at 5:30 p.m., in the Council Hearing Room, 990 Palm Street, San Luis Obispo, California. APPROVED BY THE COUNCIL COMPENSATION COMMITTEE ON: 01/07/2020 Packet Page 183 Item 9 DRAFT Minutes – Revenue Enhancement Oversight Commission Meeting of January 7, 2020 Page 1 Minutes - DRAFT COUNCIL COMPENSATION COMMITTEE Tuesday, January 7, 2020 Regular Meeting of the Council Compensation Committee CALL TO ORDER A Regular Meeting of the San Luis Obispo Council Compensation Committee was called to order on, Tuesday, January 7, 2020 at 5:30 p.m. in the Council Hearing Room, located at 990 Palm Street, San Luis Obispo, California, by Chair Dan Rivoire. ROLL CALL Present: Committee Members Audrey Bigelow, Garrett Otto, Jenn Stubbs, and Ron Yukelson, Vice Chair Kim Bisheff and Chair Dan Rivoire Absent: Committee Member Cal Stevens Staff: Greg Hermann Deputy City Manager, Monica Irons, Human Resources Director, Brittani Roltgen, Human Resources Analyst and Teresa Purrington, City Clerk PUBLIC COMMENT ITEMS NOT ON THE AGENDA None --End of Public Comment-- CONSIDERATION OF MINUTES 1. Minutes of the Council Compensation Committee of December 10, 2019 ACTION: UPON MOTION BY MEMBER YUKELSON, SECONDED BY VICE CHAIR BISHEFF, CARRIED 6-0-1 (MEMBER STEVENS ABSENT), to approve the minutes of the December 10, 2019. BUSINESS ITEMS 2. CURRENT PLANNING COMMISSION AND ARCHITECTURAL REVIEW COMMISSION WORKLOAD Teresa Purrington, City Clerk provided a PowerPoint presentation and responded to questions. Public Comment None. Packet Page 184 Item 9 DRAFT Minutes – Revenue Enhancement Oversight Commission Meeting of January 7, 2020 Page 2 --End of Public Comment-- ACTION: Receive and file no action taken. 3. RESULTS OF OPEN CITY HALL SURVEY Greg Hermann, Deputy City Manager provided a PowerPoint presentation and responded to questions. Public Comment None. --End of Public Comment-- ACTION: Receive and file no action taken. 4. CONSIDERATION OF FORMING A RECOMMENDATION TO TAKE TO CITY COUNCIL Greg Hermann, Deputy City Manager provided a PowerPoint presentation and responded to questions. Public Comment Nik Shiffman Brett Cross --End of Public Comment-- ACTION: UPON MOTION BY VICE CHAIR BISHEFF, SECONDED BY MEMBER OTTO, CARRIED 6-0-1 (MEMBER STEVENS ABSENT) to recommend to the City Council that the compensation for the Mayor be increased to $2,508 per month and $1,990 per month for Council which is based on the median income of the City as published in the 2013-2018 Census and that this furthers the goals of inclusivity as stated in the Committee purpose statement and objectives. ACTION: UPON MOTION BY MEMBER YUKELSON, SECONDED BY VICE CHAIR BISHEFF, CARRIED 6-0-1 (MEMBER STEVENS ABSENT) to recommend to the City Council that the compensation for the Planning Commission and the Architectural Review Commission remain the same. ADJOURNMENT The meeting was adjourned at 7:42 p.m. APPROVED BY THE COUNCIL COMPENSATION COMMITTEE ON: XX/XX/2020 Packet Page 185 Item 9 Council Compensation Committee Agenda Report Meeting Date: December 10, 2019 Item Number: 4 DATE: December 5, 2019 FROM: Monica Irons, Human Resources Director Prepared By: Brittani Roltgen, Human Resources Analyst SUBJECT: Revised Comparison Cities Data and City Council Retirement Scenario RECOMMENDATION Receive a presentation on the revised comparison cities analysis and possible retirement scenario for a City Council Member. DISCUSSION Regarding the 2019 City Council and Advisory Body Compensation Survey, one additional field that was asked for by the Committee this year is the Mayor and City Council Salaries broken out on an hourly basis. For each agency, this number is calculated by taking the monthly salary and dividing it by the average hours required on a monthly basis. This adds a normalizing factor to the data, as while two agencies may provide the same monthly salary, the hourly rate may be strikingly different due to the varying number of hours worked. The Retirement Scenario displays the annual and monthly retirement benefit a Council Member or Mayor would receive with 8 years of service, based on being elected with no prior service, at the current salary rate. This scenario also outlines the current employer (City paid) and employee (Employee paid) annual contributions at the current rates of pay. Since the employer contribution, employee contribution, and retirement benefit are all based on a percentage of salary, any increase to the annual salary will impact the contribution amounts as well as the benefit amount. The Health Insurance Information displays how much a Council Member or Mayor will pay out of pocket for medical insurance, if anything, along with the monthly insurance costs and Health Flex Allowance (City Contribution) or each level of coverage. One important note is that if the city’s contribution for a health plan exceeds the premium amount, the Council Member or Mayor does not receive the difference in cash, and any excess cannot be used to pay for Dental or Vision Insurance. If a Council Member or Mayor decides to opt out of Medical, Dental, and Vision Insurance, the individual receives a monthly benefit in their paycheck that can be used to purchase Medical Insurance elsewhere. The individual must opt out of Medical, Dental, and Vision insurance to receive this benefit. The final section shows the historical percentage of elections for Council Members and the Mayor over the past several years. The data displays that the majority opt in to Medical, Dental, and Vision insurance, and typically elect employee-only coverage. Attachment A - 2019 Council Comparison Analysis Packet Page 186 Item 9 Comparison City Demographics and Meeting Information Compensation for Other Commissions or Advisory Bodies CITY GENERAL/ CHARTER LAW CITY POPULATION (Census 2018 Est) MEDIAN HOUSEHOLD INCOME (Census 2013- 18) YEAR 2019 MEDIAN HOME SALES PRICE (Zillow) ANNUAL CITY BUDGET (All City Funds) UNFUNDED PENSION LIABILITY MAYOR - ELECTED OR ROTATED EXPECTED TIMES PER MONTH CITY COUNCIL MEETS ACTUAL TIMES PER MONTH CITY COUNCIL MEETS HOURS PER WEEK CITY COUNCIL WORKS PAY FOR PLANNING COMMISSION PAY FOR ARCHITECTURAL DESIGN COMMITTEE PAY FOR OTHER ADVISORY BODIES Chico Charter 94,776 $45,337 $380,000 $131,108,549 $141,035,539 Elected 2 2 8-10 No No No Davis General 69,289 $63,071 $632,800 $146,662,682 $135,929,989 Rotated 2 2 Varies (at least 20)No No Historical Resources Management Commission (HRMC) - No Pay Monterey Charter 28,289 $73,942 $738,800 $162,215,800 $159,231,274 Elected 2 3 20 $25/mtg., $75/mo. max $25/mtg., $75/mo. max $25/mtg., $75/mo. max Napa Charter 79,263 $75,341 $698,100 $251,507,000 $185,728,266 Elected 2 2 10-15 $100/meeting No Housing Authority Board $100 per meeting Paso Robles General 32,212 $61,053 $499,500 $125,572,305 $44,313,313 Elected At least 2 3 20 No No No Santa Barbara Charter 91,350 $71,160 $1,005,600 $403,333,229 $355,737,298 Elected 4 3 10-15 outside of Council Meetings $50/meeting $50 Board meeting $25 Consent Calendar meeting Historic Landmarks Commission - $50/ Comission mtg, $25/ Consent Calendar mtg. Housing Authority Commission - $50/mtg. Metropolitan Transit District Board - $60/mtg not to exceed $180/month. Mosquito and Vector Mgmt District - $100/mtg. Single Family Design Board - $50/Board mtg, $25/Consent Calendar mtg. Santa Cruz Charter 64,725 $65,421 $866,300 $291,800,000 $177,738,916 Rotated 2 3 Varies No No No Santa Maria Charter 107,408 $55,485 $411,900 $180,000,000 $139,997,018 Elected 2 2 5-10 $75/meeting, $450/month maximum N/A Parks and Rec Commission $75/meeting, $75 per month maximum Ventura Charter 111,128 $72,859 $561,000 $301,500,000 $234,917,694 Rotated 3 4 Varies No No No AVERAGE N/A 75,382 $64,852 $643,778 $221,522,174 $174,958,812 N/A 2 3 20 $88 $38 $58 MEDIAN N/A 79,263 $65,421 $632,800 $180,000,000 $159,231,274 N/A 2 3 20 $88 $38 $50 2017 MEDIAN N/A 80,416 $62,471 $650,050 $185,700,000 140,174,244 N/A 2 3 20 $88 $38 $50 San Luis Obispo Charter 47,446 $47,777 $663,100 $199,828,000 $165,502,151 Elected 2 3 20-30hrs $70/mtg. $280/mo. max $70/mtg. $280/mo. max No PAGE 1 City Council and Advisory Body Compensation Survey 2019 Packet Page 187 Item 9 CITY GENERAL/ CHARTER LAW CITY Type of Government MAYOR SALARY/ MONTH MAYOR SALARY/ HOUR CITY COUNCIL SALARY/ MONTH CITY COUNCIL SALARY/ HOUR CAFETERIA CONTRIBUTION/ MONTH CAFETERIA PLAN OPT OUT RETIREMENT FORMULA LIFE INSURANCE AMOUNT REIMBURSED FOR CITY BUSINESS / YEAR MILEAGE ALLOWANCE (Current IRS = $0.535 per mile) OTHER ALLOWANCES DATE CITY COUNCIL COMPENSATION UPDATED Chico Charter Council - Mayor - City Manager $777 $19 $663 $17 Up to $1,395 $0 3% at 60 2% at 62 1x the employee's annual salary up to $300,000, rounded to the next higher $1,000 $2,900 Mayor $2,500 Council City Manager Approval Cell phone $75 per month 2015 Davis General Council - Mayor - City Manager $1,366 $17 $1,366 $17 Up to $1,744.26 If opt out, City will pay $500 towards a Deferred Comp Plan of choice 2.5% at 55 2% at 62 $100,000 $4,000 $0.535 per mile Cell phone $65 per month 2019 Monterey Charter Council - Mayor - City Manager $676 $8 $430 $5 $925.00 Employee Only $1,636.00 2 person $1,920.00 family Up to $650 Cash Out 1st Tier: 2.7% at 55 2nd Tier: 2.0 at 62 $50,000 Reasonable Expenses $0.535 per mile Reimbursement of business use of personal cell phones 2016 Napa Charter Council - Mayor - City Manager $2,870 $48 $1,435 $24 $727.85 Employee Only $1,439.86 2 person $1,932.43 Family $500 with proof of coverage 1st Tier: 2.7% at 55 PEPRA: 2.0% at 60 $100,000 $6,600 Mayor $5,400 Council $475/month N/A 2018 Paso Robles General Council - Mayor - City Manager $800 $10 $600 $8 $1,085 $300 Cash Out 1st Tier: 2.5% at 55 2nd Tier: 2% at 60 PEPRA: 2% at 62 $40,000 N/A $0.535 per mile N/A 2019 Santa Barbara Charter Council - Mayor - Administrator $4,626 $58 $3,700 $46 Up to $1,731.62 $362.38 Tier 12.7% at 55 PEPRA 2% at 62 $50,000 N/A $538/month N/A 2018 Santa Cruz Charter Council - Mayor - City Manager $3,420 $43 $1,710 $21 $692 Employee Only $1,800 Employee & Family $200 Cash Out Tier 1: 2.0% at 55 Tier 2: 2.0% at 60 Tier 3: 2.0% at 62 $25,000 $1,300-$1,500 $107/month N/A 2017 Santa Maria Charter Council - Mayor - City Manager $1,563 $39 $1,313 $33 Medical: $464 Employee Only $753 2 person $928 Family $518 Cash Out Tier 1: 2.7% at 55 Tier 2: 2.0% at 55 PEPRA: 2.0% at 62 $50,000 $3,000 Mayor Mayor $476 Council $280 N/A 2017 Ventura Charter Council - Mayor - City Manager $700 $12 $600 $10 may participate at own expense $0 Tier 1: 2.0% at 55 PEPRA: 2.0% at 60 1 x annual salary rounded up to next $1,000 Reasonable Expenses (incl conference/meetings, lodging, meals, etc) Mayor $300 Council $200 Smart phone, laptop, and printer upon request Internet $15/day 2017 AVERAGE N/A Council - Mayor - City Manager $1,866 $28 $1,313 $20 $1,261 Family $404 (if given)N/A $60,800 $3,250 Mayor $3,000 Council $379 Mayor $320 Council Cell Phone 2017 MEDIAN N/A Coucil - Mayor - City Manager $1,366 $19 $1,313 $17 $1,577 Family $362 (if given)1st Tier: 2.7% at 55 $50,000 $2,950 Mayor $2,500 Council $476 Mayor $280 Council Cell Phone 2017 2017 MEDIAN N/A Coucil - Mayor - City Manager $1,170 N/A $1,050 N/A $1,577 Family $362 (if given) 1st Tier: 2.7% at 55 $50,000 $2,950 Mayor $2,500 Council $476 Mayor $280 Council Cell Phone 2016 San Luis Obispo Charter Council - Mayor - City Manager $1,724 $17 $1,224 $12 $570 Employee Only $1,128 2 person $1,526 Family $200 Tier 1: 2.7% at 55 Tier 2: 2.0% at 60 Tier 3/PEPRA/Council: 2.0% at 62 $104,000 $3,200 Mayor $2,700 Council Mayor $150 Council $100 $50/month home internet and data plan City cell phone provided 2018 PAGE 2 City Council and Advisory Body Compensation Survey 2019 Mayor and City Council Compensation and Benefits Packet Page 188 Item 9 City of San Luis Obispo, Council Agenda, City Hall, 990 Palm Street, San Luis Obispo Council Compensation Committee Agenda Report Meeting Date: January 7, 2020 Item Number: 3 FROM: Greg Hermann, Deputy City Manager Prepared By: Teresa Purrington, City Clerk SUBJECT: PLANNING AND ARCHITECTURAL REVIEW COMMISSIONS 2019 MEETING SUMMARY AND BACKGROUND INFORMATION RECOMMENDATION Receive a report and review total number and length of meetings for both Planning and Architectural Review Commissions for 2019 and other background information. DISCUSSION Background History of Planning Commission (PC) and Architectural Review Commission (ARC) Stipends 2001 - Planning Commissioners and Architectural Review Commissioners stipend amounts both were increased from $25.00 to $50.00 per meeting. Prior to this review they had not been reviewed since 1990. 2002 – No compensation review completed. 2004 – No increase recommended. 2006 - No increase recommended. 2008 - Planning Commissioners and Architectural Review Commissioners maintain current stipend. 2010 - No compensation review completed. 2012 – No compensation review completed. 2014 - Planning Commissioners and Architectural Review Commissioners stipend increased from $50 to $60 per meeting not to exceed $240 per month. 2016 – No compensation review completed. 2018 - Planning Commissioners and Architectural Review Commissioners stipend increased from $60 to $70 per meeting not to exceed $280 per month. 2019 Meeting Summary Provided for your review are calculation charts to show meeting dates and lengths for 2019 PC and ARC meetings. Meeting dates are provided to show frequency; meeting start, and adjournment times are provided to show length of meetings; and calculations of total meeting times are included for both Planning and Architectural Review Commissioners. (Attachment A) For reference, Advisory Body appointments carry four-year terms which run April through mid-March. Packet Page 189 Item 9 Page 2 A total of 15 PC meetings were held during this time frame. Average meeting time is 2:00 hours. A total of 15 ARC meetings were held during the same time frame with an average meeting length of 2:25 hours. Membership and Purpose As provided in the City’s Advisory Body Handbook, the following is stated regarding Membership and Purpose for these Advisory Bodies. Architectural Review Commission MEMBERSHIP The Architectural Review Commission (ARC) has seven members. Members must be residents and registered voters of the City. The only special qualifications for membership are a proven interest in the City’s physical environment and the ability to make positive and fair aesthetic evaluations. PURPOSE The ARC shall review and approve plans for all structures and physical improvements, and for any relocation, addition, extension, or exterior change to existing buildings, structures and physical improvements, as set forth in Section 2.48.050 of the San Luis Obispo Municipal Code. Approval by the ARC must be obtained before a building permit or other city permit may be issued authorizing construction, alteration, relocation, addition, or extension. Planning Commission MEMBERSHIP The Planning Commission (PC) has seven members who are not necessarily planning professionals. Members must be residents and registered voters of the City. No special training is required for appointment. Members occasionally may be requested to attend seminars and workshops to enhance skills in planning. PURPOSE The Planning Commission’s basic responsibility is to make recommendations to the City Council for the City’s development, as set forth in San Luis Obispo Municipal Code §2.12.040. To carry out this responsibility the commission will: 1. Prepare and recommend a general plan and appropriate attachments; 2.Prepare and recommend appropriate specific plans; 3.Review the City’s capital improvement program annually; 4.Perform authorized duties related to development review; 5.Perform such other duties required by the Council or by State or City laws. ATTACHMENT a.Planning Commission and Architectural Review Commission Meeting Summary Packet Page 190 Item 9 Meet Date Number of Items Duration of Meeting Meet Date Number of Items Duration of Meeting 1/9/2019 Cancelled Cancelled 1/7/2019 Cancelled Cancelled 1/23/2019 Cancelled Cancelled 1/14/2019 Cancelled Cancelled 2/13/2019 2 2:23 1/21/2019 Cancelled Cancelled 2/27/2019 1 1:04 2/4/2019 2 1:36 3/13/2019 2 0:37 2/11/2019 Cancelled Cancelled 3/27/2013 Cancelled Cancelled 2/18/2019 Cancelled Cancelled 4/10/2019 3 3:11 3/4/2019 Cancelled Cancelled 4/24/2019 1 2:09 3/18/2019 2 2:03 5/8/2019 1 2:15 4/1/2019 4 3:01 5/22/2019 2 1:16 4/15/2019 Cancelled Cancelled 6/12/2019 Cancelled Cancelled 5/6/2019 4 3:54 6/26/2019 2 1:10 5/20/2019 1 0:41 7/10/2019 3 2:39 6/3/2019 3 2:03 7/24/2019 2 2:24 6/17/2019 2 1:44 8/14/2019 Cancelled Cancelled 7/1/2019 Cancelled Cancelled 8/28/2019 Cancelled Cancelled 7/15/2019 Cancelled Cancelled 9/11/2019 Cancelled Cancelled 8/5/2019 Cancelled Cancelled 9/25/2019 4 2:25 8/19/2019 2 2:08 10/9/2019 2 1:10 9/9/2019 4 3:49 10/23/2019 3 3:40 9/16/2019 3 3:14 11/6/2019 1 2:05 10/7/2019 5 2:35 11/13/2019 4 2:08 10/21/2019 4 3:04 11/27/2019 Cancelled Cancelled 11/4/2019 4 1:09 12/11/2019 Cancelled Cancelled 11/18/2019 2 1:26 12/25/2019 Cancelled Cancelled 12/2/2019 3 2:29 Planning Commission Architecture Review Commission Packet Page 191 Item 9 Page intentionally left blank. Packet Page 192 Item 9