HomeMy WebLinkAbout11-27-2018 Agenda PacketTuesday, November 27, 2018
6:00 PM REGULAR MEETING Council Chamber
990 Palm Street
San Luis Obispo Page 1
CALL TO ORDER: Mayor Heidi Harmon
ROLL CALL: Council Members Aaron Gomez, Andy Pease, Dan Rivoire, Vice
Mayor Carlyn Christianson and Mayor Heidi Harmon
PLEDGE OF ALLEGIANCE: Council Member Dan Rivoire
PUBLIC COMMENT PERIOD FOR ITEMS NOT ON THE AGENDA (not to exceed 15
minutes tot al)
The Council welcomes your input. You may address the Council by completing a speaker slip
and giving it to the City C lerk 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.
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2. REVIEW MINUTES OF THE NOVEMBER 13, 2018 CITY COUNCIL MEETING
(PURRINGTON)
Recommendation:
Approve the minutes of the City Council meeting held on November 13, 2018.
3. APPROVAL OF THE FINAL MAP FOR TRACT 3096, SAN LUIS RANCH, 1035
MADONNA ROAD (SBDV-3772-2016) (CODRON/DOSTALEK)
Recommendation:
Adopt a Resolution entitled “A Resolution of the City Council of the City of San Luis Obispo,
California, approving the Final Map for Tract 3096 San Luis Ranch (1035 Madonna Road,
SBDV-3772-2016)” and authorizing the Mayor to execute the easements, agreements, and fee
offers associated with Tract 3096.
4. PERMANENT PLACEMENT OF SECURITY CAMERAS IN MISSION PLAZA,
MITCHELL AND MEADOW PARKS (CANTRELL/ELLSWORTH)
Recommendation:
Approve a new capital improvement project to permanently place security cameras in Mission
Plaza, Meadow Park, and Mitchell Park.
5. CURATION OF 842 PALM STREET PARKING STRUCTURE
ARCHAEOLOGICAL COLLECTION (HERMANN/BETZ/LEVEILLE)
Recommendation:
Authorize the City Manager to enter into a sole-source agreement with the San Luis Obispo
County Archaeological Society (SLOC AS), in the amount of $129,000 to curate and
permanently store the 842 Palm Street Parking Structure Archaeological C ollection.
6. AMENDMENT TO LEGAL SERVICES AGREEMENT FOR CONTRACT DEPUTY
CITY ATTORNEY SERVICES (DIETRICK/WHITE)
Recommendation:
Authorize the City Attorney to execute a Second Amendment to the Legal Services
Agreement with the law firm of Hanley and Fleishman, LLP (Original Agreement effective
April 1, 2017, First Amendment executed June 6, 2017) adding an additional 12 months to
the agreement and increasing the not -to-exceed amount by $72,000 to $180,000.
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7. REVIEW OF A MILLS ACT HISTORICAL PROPERTY CONTRACT FOR THE
TERESA TORRES TRUE HOUSE (A MASTER LIST RESOURCE)
(CODRON/OETZELL)
Recommendation:
As recommended by the Cultural Heritage Committee, adopt a Resolution entitled “A
Resolution of the City Council of the City of San Luis Obispo, California approving a
Historic Property Preservation Agreement between the City and the owner of the Teresa
Torres True House at 1214 Mill Street,” under the terms described in the draft agreement.
8. HOMELESS SHELTER CRISIS DECLARATION (CANTRELL/SMITH/TONIKIAN)
Recommendation:
1. Adopt a Resolution entitled “A Resolution of the City Council of the City of San Luis
Obispo, California, declaring a she lter crisis pursuant to SB 850 (Chapter 48, Statues of
2018 and Government Code Section 8698.2)”; and
2. If a homeless shelter crisis is declared, authorize the City Manager to submit eligible
services and programs for funding from the Homeless Emergency Aid Program under
SB 850; and
3. If the funding is awarded, authorize the City Manager to execute all funding related
documents and authorize the Finance Director to make the necessary budget adjustments
upon the award of the funding.
9. ADOPTION OF AN ORDINANCE TO AUTHORIZE THE IMPLEMENTATION OF
A COMMUNITY CHOICE ENERGY PROGRAM (HILL/READ)
Recommendation:
1. Adopt Ordinance No. 1656 (2018 Series) entitled “An Ordinance of the City Council of
the City of San Luis Obispo, California, repealing the existing community choice
aggregation ordinance and authorizing the implementation of a community choice
aggregation program by participating in Monterey Bay Community Power’s community
choice aggregation program”; and
2. Adopt a Resolution ent itled, “A Resolution of the City Council of the City of San Luis
Obispo, California, terminating the Central Coast Community Energy Joint Powers
Agreement on behalf of the City of San Luis Obispo”; and
3. Authorize the Mayor to execute an Agreement entitled, “An Agreement between the
City of San Luis Obispo and the City of Morro Bay terminating the Joint Exercise of
Powers Agreement Establishing Central Coast Community Energy.”
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PUBLIC HEARING AND BUSINESS ITEMS
10. PUBLIC HEARING - REVIEW OF A FEE SCHEDULE AND EVALUATION
CRITERIA FOR CANNABIS BUSINESS OPERATOR PERMITS
(CODRON/COHEN/HARNETT – 120 MINUTES)
Recommendation:
1. Adopt a Resolution entitled “A Resolution of the City Council of the City of San Luis
Obispo, California, amending the City’s Master Fee Schedule with updated use r and
regulatory fees for various commercial cannabis business activities” for both one -time
application and ongoing costs for cannabis business operator permits; and
2. Adopt a Resolution entitled “A Resolution of the City Council of the City of San Luis
Obispo, California, approving cannabis operator permit ranking criteria and the annual
application submittal period (CODE-1058-2017).”
11. PUBLIC HEARING - FOLLOW-UP ITEMS FROM THE CITY COUNCIL’S
APPROVAL OF THE COMPREHENSIVE UPDATE TO THE CITY’S ZONING
REGULATIONS (TITLE 17) OF THE MUNICIPAL CODE INCLUDING TINY
HOMES, ACCESSORY DWELLING UNITS OWNER OCCUPANCY AND LOT
COVERAGE REQUIREMENTS, ELECTRIC VEHICLE PARKING, DOWNTOWN
OVERLAY ZONE, AND ADDITIONAL MISCELLANEOUS CLEAN UP ITEMS
(CODRON/DAVIDSON – 60 MINUTES)
Recommendation:
1. Introduce an Ordinance entitled “An Ordinance of the City Council of the City of San
Luis Obispo, California introducing follow-up items from the Council’s approval of the
comprehensive update to the City’s Zoning Regulations (Title 17) of the Municipal Code
including Tiny Homes, Accessory Dwelling Units Owner Occupancy and Lot Coverage
Requirements, Electric Vehicle Parking, Downtown Overlay Zone, and additional
miscellaneous clean up items. Including adoption of an addendum to a Negative
Declaration of Environmental Review, as represented in the staff report and attachments
dated November 27, 2018 (Zoning Regulations, GENP-0327-2017)”; and
2. Adopt the Addendum to the Negative Declaration of Environmental Impact.
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LIAISON REPORTS AND COMMUNICATIONS
(Not to exceed 15 minut es) 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
Adjourn to a Special City Council Meeting to be held on Monday, December 3, 2018 at 3:00
p.m., in the Council Chamber, 990 Palm Street, San Luis O bispo, California for the purposes of
certifying the results of the General Municipal Election of November 6, 2018.
The next Regular City Council Meeting is scheduled for Tuesday, December 4, 2018 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 meet ings accessible to the
public. Upon request, this agenda will be made available in appropriate alternative formats to
persons with disabilities. Any person with a disability who requires a modification or
accommodation in order to participate in a meeting should direct such request to the City
Clerk ’s Office at (805) 781-7100 at least 48 hours before the meeting, if possible.
Telecommunications Device for the Deaf (805) 781-7107.
City Council regular meetings are televised live on Charter Channel 20. Agenda related
writings or documents provided to the City Council are available for public inspection in the
City Clerk’s Office located at 990 Palm Street, San Luis Obispo, California during normal
business hours, and on the City’s website www.slocity.org. Persons with questions concerning
any agenda item may call the City Clerk’s Office at (805) 781 -7100.
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San Luis Obispo Page 1
Tuesday, November 13, 2018
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, November 13, 2018 at 4:00 p.m. in the Council Hearing Room, located at 990 Palm
Street, San Luis O bispo, California, by Mayor Harmon.
ROLL CALL
Council Members Council Members Aaron Gomez, Andy Pease, Dan Rivoire (arrived at
Present: 4:16 PM), Vice Mayor Carlyn Christianson, and Mayor Heidi Harmon.
Council Members
Absent: None
City Staff Derek Johnson, City Manager; Christine Dietrick, City Attorney and
Present: Teresa Purrington, City Clerk; were present at Roll Call. Other staff
members presented reports or responded to questions as indicated in the
minutes.
STUDY SESSION ITEMS
1. PARKING MANAGEMENT ISSUES AND STRATEGIES
Department Director Daryl Grigsby and Deputy Director Tim Bochum provided an in-depth
staff report and responded to Council questions.
Public Comments:
Garrett Otto
Steve Klisch
Janine Rands
Greg Kincaid
Susan Coward
Bettina Swigger
Sandra Rowley
---End of Public Comment ---
Item 2
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San Luis Obispo City Council Minutes of November 13, 2018 Page 2
By consensus, Council provide feedback and direction on the following:
• More coordination with Cal Poly for long term par king storage.
• Proceed with the Palm/Nipomo parking structure as planned and integrate art into the
design.
• Survey parking needs for employees of downtown businesses.
• Look into the possibility of afterhours use of parking lots downtown.
• Explore ways to increase use of transportation network companies, i.e., Uber/Lift .
• Explore standardizing the parking districts and a more proactive approach to parking
distr icts possibly having occupancy rates trigger the need for a parking district.
RECESSED AT 5:53 P.M. TO THE REGULAR MEETING OF TUESDAY NOVEMBER
13, 2018 TO BEGIN AT 6:10 P.M.
Item 2
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San Luis Obispo City Council Minutes of November 13, 2018 Page 3
CALL TO ORDER
A Regular Meeting of the San Luis Obispo Cit y Council was called to order on Tuesday,
November 13, 2018 at 6:10 p.m. in the Council Chamber, located at 990 Palm Street, San Luis
Obispo, California, by Mayor Harmon.
ROLL CALL
Council Members Council Members Aaron Gomez, Andy Pease, Dan Rivoire, Vice Mayor
Present: Carlyn Christianson, and Mayor Heidi Harmon.
Council Members
Absent: None
City Staff Derek Johnson, City Manager; Christine Dietrick, City Attorney and
Present: 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 Aaron Gomez led the Pledge of Allegiance.
PRESENTATIONS
2. NATIONAL HOSPICE MONTH PROCLAMATION
Mayor Harmon presented a Proclamation Hospice SLO County proclaiming November
2018 as “National Hospice and Palliative Care Month” in the Cit y of San Luis Obispo.
PUBLIC COMMENT ON ITEMS NOT ON THE AGENDA
None
---End of Public Comment ---
CONSENT AGENDA
ACTION: MOTION BY VICE MAYOR CHRISTIANSON, SECOND BY COUNCIL
MEMBER RIVOIRE, CARRIED 5-0 to approve Consent Calendar Items 3 - 8 thru 10 - 12.
Mayor Harmon requested that Item 9 be pulled for discussion.
3. WAIVE READING IN FULL OF ALL RESOLUTIONS AND ORDINANCES
CARRIED 5 – 0 to waive reading of all resolutions and ordinances as appropriate.
Item 2
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San Luis Obispo City Council Minutes of November 13, 2018 Page 4
4. REVIEW MINUTES OF THE SEPTEMBER 26, 2018 AND OCTOBER 16, 2018
CITY COUNCIL MEETINGS
CARRIED 5-0, to approve the minutes of the City Council meetings he ld on September 26,
2018 and October 16, 2018.
5. CONSIDERATION OF THE HUMAN RELATIONS COMMISSION’S
RECOMMENDED PRIORITIES FOR THE 2019-2020 COMMUNITY
DEVELOPMENT BLOCK GRANT (CDBG) AND GRANTS-IN-AID (GIA)
PROGRAMS
CARRIED 5-0, to approve Community Development Block Grant and Grants-in-Aid
funding pr io rities for 2019-2020, as recommended by the Human Relations Commission.
6. ANNUAL MONITORING OF THE AVILA RANCH DEVELOPMENT
AGREEMENT AND COMMUNITY FACILITIES DISTRICT
CARRIED 5-0, to receive and file the annual monitoring report for the Avila Ranch
Development Agreement and Community Facilities District.
7. 2018 ASSISTANCE TO FIREFIGHTERS GRANT
CARRIED 5-0, to
1. Authorize the Fire Department to apply for a grant to the Federal Assistance to
Firefighters Grant (AFG) Program for the amount of $158,155 to acquire replacement
portable radios and associated accessories.
2. Authorize the City Manager, or designee, to execute the grant documents and approve the
budget changes necessary to appropriate the grant amo unt upon notification that the
grant has been awarded.
8. AMENDMENT OF RESOLUTION OF INTENT TO APPLY THE CAPITAL
FACILITIES FEE PROGRAM AND WATER AND WASTEWATER CAPACITY
AND CONNECTION PROGRAM DEVELOPMENT IMPACT FEES TO NEW
DEVELOPMENT
CARRIED 5-0, to adopt a Resolut ion entitled “A Resolution of the City Council of the City
of San Luis Obispo, California, amending previously adopted Resolution No. 10849 (2017
Series) and modifying the eligibility criteria for establishing which develop ment review
projects are exempt from participating in the newly adopted capital facilities fee and the
wat er and wastewater capacity and connection fee programs based on the date of building
permit application.”
Item 2
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San Luis Obispo City Council Minutes of November 13, 2018 Page 5
9. REQUEST FOR ALTERNATIVE INCENTIVE TO PROVIDE FOR AFFORDABLE
HOUSING THAT INCLUDES A DENSITY BONUS INCREASE OF 43 PERCENT,
WHERE 35 PERCENT IS NORMALLY ALLOWED, FOR 3680 BROAD STREET
(CITY FILE NO. AFFH-1902-2018)
ACTION: MOTION BY VICE MAYOR CHRISTIANSON, SECOND BY
COUNCIL MEMBER RIVOIRE, CARRIED 5-0 to adopt a Resolution entitled, “A
Resolution of the Cit y Council of the City of San Luis Obispo, California, approving the
alternat ive incentives to provide for affordable housing that includes a densit y bonus of 43
percent, where 35 percent is normally allowed, as represented in the City Council agenda
report and attachments dated November 13, 2018. The project is categorically exempt from
environmental review (3680 Broad St reet) (AFFH-1902-2018).”
10. WATER ENERGY EFFICIENCY PROJECT FUNDING
CARRIED 5-0, to
1. Adopt a Resolution entitled “A Resolution of the City Counc il of the Cit y of San Luis
Obispo, California, authorizing reimbursement to the California Energy Commissio n for
financing t he Water Energy Efficiency Project;” and
2. Authorize the Director of Utilit ies to execute the financial assistance application for the
Water Energy Efficiency Project .
11. TREE MAINTENANCE JOB ORDER CONTRACT
CARRIED 5-0, to
1. Approve Special Provisions for Job Order Contract 2018 – Tree Maintenance; and
2. Authorize staff to advertise for bids; and
3. Authorize the City Manager to award the contract to the lowest responsible bidder.
12. PARTICIPATE IN THE STATEWIDE COMMUNITY INFRASTRUCTURE
PROGRAM (SCIP)
CARRIED 5-0, to adopt a Resolution entitled, “A Resolution of the City Council of the City
of San Luis Obispo, California, authorizing the City to join the St atewide Community
Infrastruct ure Program; authorizing the California Statewide Communities Development
Authority to accept applications from property owners, conduct special assessment
proceedings and levy assessments within the territory of the City of San Luis Obispo;
approving form of acquisit ion agreement for use when applicable; and authorizing related
actions.”
PUBLIC HEARING ITEMS AND BUSINESS ITEMS
13. WATER RESOURCE RECOVERY FACILITY PROJECT CLEAN WATER STATE
REVOLVING FUND LOAN AGREEMENT
Utilities Director Carrie Mattingly, and Deputy Director Utilities Wastewater David Hix
provided an in-depth staff report and responded to Council questions.
Item 2
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San Luis Obispo City Council Minutes of November 13, 2018 Page 6
Public Comments:
None
---End of Public Comment ---
ACTION: MOTION BY COUNCIL MEMBER RIVOIRE, SECOND BY
COUNCIL MEMBER GOME Z, CARRIED 5-0 to approve the Clean Water State
Revolving Fund loan agreement between the City of San Luis Obispo and the California
Stat e Water Resources Control Board for $140 million for the Water Resource Recovery
Facility Pro ject and authorize the Utilities Director to execute the agreement.
14. APPROVAL OF A COMMUNITY WORKFORCE AGREEMENT (FORMERLY
KNOWN AS PROJECT LABOR AGREEMENT) FOR THE WATER RESOURCE
RECOVERY FACILITY PROJECT
City Attorney Christine Dietrick, Utilities Director Carrie Mattingly, Justin Pickard, WRRF
Project Assistant Program Manager and Mike Vlaming, legal counsel/lead negotiator
provided an in-depth staff report and responded to Council questions.
Public Comments:
Andrew Gaebel
Tony Skinner
Manley McNinch
David Gilliland
Berkeley Blake
David Baldwin
Cordelia Perry
Tyler Scheidt
Kevin Dayton
---End of Public Comment ---
ACTION: MOTION BY MAYOR HARMON, SECOND BY COUNCIL MEMBER
RIVOIRE, CARRIED 5-0 to authorize the Cit y Manager to enter into a Community
Workforce Agreement (CWA) in a final form approved by the City Attorney with The Tri-
Counties Building and Construction Trades Council, AFL-CIO and The Signatory Craft
Councils and Unions for the Water Resource Recovery Facility Project, subject to approval
by all affiliates.
15. STATUS UPDATE FOR THE 2019-21 GOAL-SETTING AND FINANCIAL PLAN
PROCESS
Cit y Manager Derek Johnson, Finance Director Brigette Elke, Budget Manager Alex
Ferreira, and Interns Georgina Bailey and Andrew Harris provided an in-depth staff report
and responded to Council questions.
Item 2
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San Luis Obispo City Council Minutes of November 13, 2018 Page 7
Public Comments:
None
---End of Public Comment ---
ACTION: By Consensus the Council set Monday, February 4, 2019 for the Goal Setting
wo rkshop.
16. PUBLIC HEARING – APPROVAL OF JOINING MONTEREY BAY COMMUNITY
POWER AUTHORITY AND FIRST READING OF COMMUNITY CHOICE
ENERGY ORDINANCE
Interim Deputy Director Bob Hill provided an in-depth staff report and responded to Council
questions.
Public Co mments:
None
---End of Public Comment ---
ACTION: MOTION BY COUNCIL MEMBER PEASE, SECOND BY VICE
MAYOR CHRISTIANSON CARRIED 5-0 to:
1. Receive and file the Technical Study update memo ; and
2. Introduce an Ordinance entitled, “An Ordinance of the City Council of the City of San
Luis Obispo, California, repealing the existing community choice aggregation
ordinance, Ordinance No. 1654 (2018 Series), and authorizing the implementation of a
community choice aggregation program by participating in Monterey Bay Community
Power Authority’s community choice aggregation program”; and
3. Adopt a Resolution entitled, “A Resolution of the Cit y Council of the City of San Luis
Obispo, California, requesting membership in the Monterey Bay Community Power
(MBCP) joint powers authority and authorizing the Mayor or City Manager to execute
the joint powers authority agreement as amended with MBCP” as amended by staff at
the meeting; and
4. Identified Mayor Harmon to represent the City as the initial Policy Board Director; and;
5. Direct staff to negotiate a Memorandum of Understanding with City of Morro Bay staff
to provide a collaborative and fair strategy for MBCP representation and return to
Council for final approval.
COUNCIL COMMUNICATIONS AND LIAISON REPORTS
Council Member Pease indicated she attended the California Water Women conference in Santa
Barbara. Council Member Pease also indicated that the City was co-hosting a presentation by Ed
Mazria to talk about the zero code on Friday, November 16, 2018.
Mayor Harmon indicated she attended the Laurel Lane ribbon cutting, the Central Coast
Economic Forecast , the dedic ation of a portion of the 101freeway in memory of Matthew Frank
“SloStringer,” the Arbor day cele bration and the Cal Poly dorm opening and dedication.
Item 2
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ADJOURNMENT
The meeting was adjourned at 8:36p.m. The next Regular City Council Meeting is scheduled for
Tuesday, November 27, 2018 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/2018
Item 2
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Meeting Date: 11/27/2018
FROM: Michael Codron, Community Development Director
Prepared By: Diane Dostalek, Senior Civil Engineer
SUBJECT: APPROVAL OF THE FINAL MAP FOR TRACT 3096, SAN LUIS RANCH,
1035 MADONNA ROAD (SBDV-3772-2016)
RECOMMENDATION
Adopt a Resolution (Attachment A) approving the Final Map for Tract 3096, San Luis Ranch,
1035 Madonna Road, and authorizing the Mayor to execute the easements, agreements, and fee
offers associated with Tract 3096.
REPORT-IN-BRIEF
A vesting tentative map for Tract 3096 was approved by the City Council on July 18, 2017. After
Council’s approval, some minor corrections to the tentative map were approved by the
Community Development Director to facilitate development of the lots and to satisfy Caltrans
requirements for the future Prado/Highway 101 interchange.
The tentative map was originally processed while this property was still in the County. The Local
Agency Formation Commission approved the annexation on October 18, 2018, and by the time
Council hears this report, all the necessary steps to finalize annexation should be complete.
The City and the developer of Tract 3096 have entered into a development agreement. This
agreement is a contract that provides certain benefits to the developer in exchange for
extraordinary public benefit s. For example, Tract 3096 provides more affordable housing units
than required by the City’s standard inclusionary housing requirements. The project meets its
park requirements through a combination of on-site park development and payment of in-lieu
fees, with preference expressed for improvements to Laguna Lake Park. These requirements are
implemented through deed restrictions on lots and payments made to the City as part of the
process of recording the Final Map.
Tract 3096 is not required to construct the Highway 101/Prado Road interchange or the Prado
overcrossing, but the developer will be providing substantial fair share funding for this
improvement and will also be dedicating the right -of-way needed to accommodate the
overcrossing and the future southbound on/off ramps. The City has taken on the process to
construct the overcrossing and the northbound on/off improvements. Southbound on/off ramp
improvements are a long-term improvement included in the City’s Transportation Impact Fee
program and are required to reduce congestion associated with General Plan build-out.
Tract 3096 is meeting the City’s agricultural land preservation requirements through a
combination of on-site and off-site easements. The project also includes relocation and
preservation of the buildings on-site that have historical value.
Item 3
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The Public Works Director has determined that the final map is in substantial compliance with
the previously approved tentative map and approved modifications thereof, so approval of the
final map by Council is recommended. California Government Code states that the Legislative
body cannot deny a final map if it finds that the final map is in substantial compliance with the
previously approved tentative map. The approval of a final map is considered a ministerial
action.
DISCUSSION
Background
Tract 3096 San Luis Ranch (SBDV-3772-2016, SPEC/ANNX/ER-1502-2015) is located at
1035 Madonna Road (Attachment B, Vicinity Map). A vesting tentative map for Tract 3096 was
approved by the City Council on July 18, 2017, by Resolution No. 10822 (2017 Series)
(Attachment C – Reading File). The tentative map (Attachment D - Reading File) contained a
total of 304 lots consisting of 282 single-family lots, two multi-family lots, 14 park lots, one
open space lot, one agricultural land lot, and four commercial lots. A supplemental Final
Environmental Impact Report (FEIR) was approved by the City Council on July 17, 2018 by
Resolution No. 10927 (2018 Series) (Attachment E - Reading File), which modified some of the
traffic mitigation measures and the timing of construction of the traffic mitigation improvements.
On August 21, 2018, the City Council adopted Ordinance No. 1649 (2018 Series) approving a
Development Agreement with the Subdivider (Attachment F - Reading File).
Minor Corrections to Approved Tentative Map
City Municipal Code Section 16.10.160 grants the Community Development Director the
authority to approve minor corrections to an approved tentative map or conditions of approval if
all the following are true:
1. No lots, units or building sites are added or deleted; and
2. The proposed changes are consistent with the intent and spirit of the original tentative
map approval; and
3. The proposed changes are consistent with the zoning regulations and the building code,
the General Plan, and the Subdivision Map Act.
Under the authority listed above, the Community Development Director has approved the
following changes to the tentative map:
1. Elimination of the alley between Haystack Place and Harvest Street that was intended to
serve Lots 262 to 281. It was determined that the lots located along the alley could be
front-loaded onto the public streets, so the private alley was not necessary.
2. Elimination of Dogwood Court. Because future development plans for the multi-family
Lots 1 and 2 along Madonna Road are unknown at this time, elimination of the public
street that serves only these two lots provides for greater flexibility for development of
these lots in case the developer decides to merge the lots or adjust the lot lines. In lieu of
the public street, a blanket private access and utility easement is being provided over
these lots to provide for future access and utilities to serve the lots. These lots will
continue to share a single access to Madonna Road at the location show n on the approved
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tentative map and a pedestrian/emergency vehicle access bridge will be provided as
shown on the tentative map connecting to the single-family portion of San Luis Ranch.
3. Conversion of one of the commercial lots into a lot for the required Agricultural Heritage
and Learning Center.
The final map also reflects the creation of two additional non-buildable park lots (Lots 305 and
306) that were needed to satisfy conditions of approval imposed by the City Council on the
tentative map to provide for pedestrian and bicycle access from the terminus of cul-de-sacs to
Froom Ranch Way.
Furthermore, the final map shows six more lots being created than were originally shown on the
tentative map. These lots are being created to accommodate the future Highway 101/Prado Road
interchange and are being offered for dedication to the City in fee in anticipation of future
transfer to Caltrans once the interchange and/or overcrossing is built. Government Code Section
66426.5 states that conveyance of land to or from a governmental agency “shall not be
considered a division of land for purposes of computing the number of parcels.” Therefore, the
addition of these lots is still considered to be in substantial compliance with the tentative map
because the lots aren’t counted for purposes of comparing tentative map to final map.
Annexation
Per Condition #117 of Resolution No. 10822 (2017 Series) approval of the tentative map was
contingent upon annexation of the property into the City of San Luis Obispo. The tentativ e map
approval would be deemed null and void if the annexation did not occur within one year of the
date of Council approval of the tentative map, unless an extension was granted. On
July 11, 2018, the Community Development Director granted a one-year time extension
(TIME-1670-2019), giving the Subdivider until July 18, 2019, to complete annexation and
record the final map.
The Local Agency Formation Commission (LAFCO) approved the annexation by resolution on
October 18, 2018. The Certificate of Completion for the annexation will be filed following the
30-day reconsideration period, and then the property will be officially part of the City.
Affordable Housing
An Affordable Housing Agreement is required to be recorded prior to or concurrent with the map
pursuant to Condition #115 of Council Resolution No. 10822 (2017 Series). The project is
required to provide 68 Inclusionary Housing units that will be met through a combination of
construction and payment of in-lieu fees. In addition, the project includes de sign and
development strategies that serve to provide lower cost housing by providing for a range of
housing sizes and types, greater affordability than required by the City’s standard inclusionary
housing requirements with the provision of 26 very low inc ome units, local preference
(preference to those residing or working in the City), owner occupancy restrictions (owner
occupancy first five years after sale), and deed restricted workforce housing (14 units provided).
These are contractual requirements of the Affordable and Workforce Housing Plan in the
Council-adopted Development Agreement pursuant to Ordinance No. 1649 (2018 Series).
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Parks
Condition #37 states that the developer is required to provide 5.8 acres of developed parkland.
2.8 acres will be provided within Tract 3096 with the largest portion of that being on Lot 4. The
Subdivider will pay in-lieu fees for the remaining 3.0 acres as outlined in Condition #37. To
satisfy Condition #37 for the on-site park improvements, the developer will need to demonstrate
to the Parks and Recreation Commission (PRC) that the park improvements rise to the level that
would be used by the public rather than just the residents of this new development. Otherwise,
the developer will receive reduced park fee credits or no park fee credits for the improvements.
Although the parkland and park improvements on Lot 4 and the other in-tract park lots will be
privately-owned and maintained, the public will be able to use the park(s), and a separate
easement agreement will be recorded to provide for this use. The easement agreement will
clarify use of the park facilities by the public, indemnification, and will also address
Homeowner’s Association (HOA) maintenance requirements for the park equipment,
landscaping, irrigation, pathway, lighting, and drainage infrastructure including the underground
basin. The resolution approving the final map also authorizes the Mayor to sign the park
easement agreement in a form acceptable to the Parks and Recreation Director, the Public Works
Director, and the City Attorney; and authorizes the Community Development Director to issue
park fee credits to Tract 3096 with concurrence from the Parks and Recreation Director.
Highway 101/Prado Road Interchange
Although the developer is not required to construct the interchange or overcrossing at
Highway 101 and Prado Road, Condition #7 of Resolution No. 10822 (2017 Series) requires
them to dedicate the right -of-way needed for the overcrossing and the southbound on-ramps and
to pay the project’s fair share of the interchange improvements. The timing of the fair share
payments is spelled out in Condition #7 and in Section 5.04.6 of the Development Agreement.
To satisfy the requirement to dedicate the right -of-way for the southbound on/off ramps and the
overcrossing, separate lots are being shown on the map for these improvements. Slope easements
on Lots 8 and 9 are also proposed. The lot and easement configuration is based on Alternative
A3 (Roundabouts) that was prepared by Omni-Means on behalf of the City for a Project Study
Report that was presented to Caltrans. Caltrans cannot provide a formal approval of this
configuration because construction of the southbound on/off ramps is not programmed.
Construction of the southbound ramps are anticipated to be several years in the future. In the
meantime, the City is moving forward with Caltrans approval to construct the northbound ramps
and the Prado overcrossing.
Caltrans requires fee ownership of property that includes the interchange improvements. Becaus e
Caltrans cannot accept fee right -of-way until a project is programmed, the fee parcels and the
slope easements will be offered to the City by separate document that will record concurrently
with the map. Once accepted by the City, the City can then grant those parcels to Caltrans.
Multiple fee parcels are proposed so that they can be accepted by the City in whole or in part
depending on the staging and construction of the improvements. The fee offer will be recorded
without City acceptance. This will enable the lot owner(s) to use the property until it is needed
for construction of the interchange components. The City is working with the Subdivider to draft
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the fee offer. The offer will include use of the land for agricultural purposes, use of the existing
billboard easements, termination of the billboard easements, and possible temporary construction
easements for the Prado overcrossing. The resolution approving the final map also authorizes the
Mayor to accept at a later date the fee offer and slope easements in a form acceptable to the
Public Works Director, the Community Development Director, and the City Attorney.
The lot and easement configuration and quantity shown on the map may change slightly prior to
map recordation pending Caltrans and City conceptual approval of the configuration.
Off-Site Transportation Improvements
Per the subdivision conditions, mitigation measures (MM), and the Development Agreement,
Tract 3096 is required to complete multiple off-site transportation improvements to mitigate for
the increase in traffic generated by the development. These improvements include intersection
improvements at:
• Los Osos Valley Road (LOVR)/South Higuera [MM T-2(i)]
• Tank Farm Road/South Higuera [MM T-1(g)]
• Madonna Road/Highway 101 [MM T-2(c)]
• LOVR/Highway 101 [Condition #11 and MM T-2(g)]
• LOVR/Froom Ranch [Condition #16]
• Madonna Road/Dalidio Drive [Condition #8 and MM T-1(b)]
Tract 3096 is also required to construct the following pedestrian and bicycle improvements:
• Madonna bike path between El Mercado & Highway 101 and between the existing bike
trail termini and Oceanaire/Madonna [Condition #12]
• Bicycle protection at Madonna/Dalidio and LOVR/Froom Ranch Way [Condition #17
and MM T-1(e)]
• Madonna/Oceanaire ped crossing upgrade [Condition #9]
Tract 3096 is required to complete the Froom Ranch Way connection to LOVR [Condition #14].
The developer is coordinating with the developer of the Prefumo Creek Commons Parcel Map
SLO 09-0076 (Target) subdivision because that subdivider was also responsible for completing
that connection. The Prefumo Creek Commons subdivider signed a Covenant to Install (Doc. #
2010-030948) whereby Prefumo Creek Commons is required to widen Froom Ranch as shown on
the approved plans, but if there were any changes to the widening, then the City would be
responsible for the difference. In this case, Tract 3096 is assuming the obligation for funding the
City’s share of any widening changes.
Securities to guarantee completion of these improvements and any other improvements required
to satisfy the conditions of the subdivision will be collected prior to map recordation.
There are other improvements identified in the Development Agreement (Table 3 of the San Luis
Ranch Financing Plan dated June 2018) and in the FEIR where the Subdivid er is required to pay
a fee covering the project’s fair share of the improvement instead of constructing these
improvements. The timing of these payments shall be prior to map recordation or at building
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permits as specified in the various agreements and mitigation measures in the supplemental
FEIR.
Tract 3096 also had a mitigation measure [MM T -2(j)] to construct improvements at the
Prado/South Higuera intersection to accommodate the increase in traffic once the Prado
overcrossing is completed. This intersection improvement is now included in the City’s
northbound 101 interchange project. The Development Agreement restructured this requirement
so the Subdivider is now required to pay a fair share fee for this improvement instead of
constructing it.
Butterfly and Riparian Habitat
A Habitat Mitigation and Monitoring Plan prepared for Tract 3096 identifie s certain biological
areas that need to be preserved, protected, and/or reestablished with this project. These areas
include a riparian corridor within Prefumo Creek and Cerro San Luis Channel, monarch butterfly
habitat, and a heron rookery. Easements for these areas are shown on Lots 1 and 3 on the map
and a separate Open Space Conservation Easement (Attachment G) will be recorded
concurrently with the map to address allowed and restricted uses in this area. The resolution
approving the final map also authorizes the Mayor to execute the easement document.
Agricultural Land and Historical Preservation
Mitigation Measure AG-1 requires the preservation of 59 acres of prime farmland by the
recordation of deed restrictions over on-site or off-site property. To satisfy this mitigation
measure, Tract 3096 will record concurrently with the map an agricultural conservation easement
totaling approximately 49 acres over Lots 10, 309, 310 and 311 (Attachment H). The easement
acknowledges that during construction the top soil will be removed and stockpiled so that the
soil underneath can be excavated for use as fill on other portions of the site. Once the grading is
complete, the top soil will be placed back over the easement area at the newly lowered grade and
farming can resume on those lots. Lots 309 through 311 will be subject to offers of dedication in
order to accommodate future Southbound on/off ramps for the Prado Roa d Interchange. If these
improvements move forward in the future, the amount of on-site ag land being conserved will be
reduced by no more than 6.29 acres, which represents a “worst case scenario.” Accordingly,
Tract 3096 has also arranged for an off-site Agricultural Open Space easement on 30 acres of
property owned by the Esajian family off of LOVR (Attachment I). The 30 acres consist of 24.5
acres prime farmland, 2.4 acres riparian, 1.9 acres ruderal, and 1.2 acres roads. This easement
restricts the use o f that land to open space and agricultural purposes. The combination of on-site
and off-site ag conservation area totals 79 acres and, even including the potential reduction of
on-site ag land, still exceeds LAFCO’s 1:1 ratio. The resolution approving the final map also
authorizes the Mayor to execute these two easement documents.
The City owns farmland known as the Calle Joaquin Agricultural Reserve (or “City Farm”)
adjacent to Tract 3096. This land is currently being leased on a 20 -year lease to a non-profit
organization, Central Coast Grown. Informally, the ag operation on Tract 3096 occasionally
crosses the City farm property to access the San Luis Ranch site and informally, Central Coast
Grown and its tenants have been using a portion of Tract 3096 to access their growing operations
on the west side of the property. Tract 3096 has asked the City to allow one-way access from
Calle Joaquin to Tract 3096 for construction purposes. In return, the City’s Natural Resources
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Manager has asked the developer of Tract 3096 to memorialize use of the access road on Tract
3096 for use by the City and its tenant s. In addition, the developer of Tract 3096 has agreed to
install an all-weather road from Calle Joaquin to the rear of the City Farm property because in
the winter months access to this area is difficult due to mud. A temporary access easement for
construction and reciprocal agricultural access (Attachment J) and a permanent access easement
for reciprocal agricultural access (Attachment K) have been prepared to address the use and
maintenance of these easement areas. Central Coast Grown has consented to these proposed
easements. The resolution approving the final map also authorizes the Mayor to execute these
two documents.
A historic preservation easement over Lot 304 (Attachment L) will be recorded concurrently
with the map. This easement is consistent with the Specific Plan and Condition #112 and
provides for implementation of the FEIR Cultural Resources Mitigation Measures and historic
preservation component s of the Specific Plan. These components include relocation and
rehabilitation/reconstruction of the identified historic structures including the main barn,
spectator barn/viewing stand, and main residence. These structures will be relocated to Lot 304.
The resolution approving the final map also authorizes the Mayor to execute the easement
document.
Water Wells
Any existing water wells that are no longer needed to serve the agricultural land are being
destroyed and ones that are still needed will remain to serve the lot on which they are located for
irrigation purposes. The City does not own any of the wells but is requiring the well owner to
enter into an agreement (Attachment M) to allow the City to use the wells for data collection
purposes. This license will not be recorded. The resolution approving the final map also
authorizes the Mayor to execute the license document.
Fiber Optic Requirements
Condition #71 requires fiber-optic communication from the Laguna Lift Station to the proposed
community park along the sewer alignment. Because the park is a private park, the Utilities
Department will not be installing any facilities in the park that will require fiber -optic
communication. Fiber-optic lines will still be provided at the locations shown on the public
improvement plans but will no longer extend all the way to the park.
Airport No Build Easement
The San Luis Obispo County Airport Land Use Commission (ALUC) made a consistency
determination on Tract 3096 on April 19, 2017 (ALUC 2017-002) which requires creation of a
200-foot by 1,200-foot “no build” zone within the S-1b Safety Area to remain free of structures
except for infrastructure associated with any future planned highway interchange with
Highway 101. The “no build” zone may be used for parking areas with no lighting or
landscaping that exceeds 8 feet in height. All drive aisles in the “no build zone” will be parallel
with the centerline of the airport runway. The “no build” easement is shown on the final map and
a separate document outlining the restrictions set forth by the ALUC will be recorded
concurrently with the map (Attachment N). Whether this easement will be offered to the City or
County has yet to be determined, but t he resolution approving the final map also authorizes the
Mayor to execute the easement document just in case the ALUC requires the City to accept it.
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Approving the Final Map
Although tentative maps typically have an initial two -year life per Municipal Code Section
16.10.150, Tract 3096 was only given a one-year life because it was not annexed into the City.
The developer requested and was granted a one -year time extension. Therefore, this vesting
tentative map has an expiration date of July 18, 2019. The final map must be completed prior to
expiration of the tentative map. Additional time extensions are allowed.
The final map for Tract 3096 (Attachment O) is ready to be approved. There are a few minor
revisions still required for technical accuracy and condition compliance, but those changes will
be completed before the map records. Pursuant to Section 16.14.080 of the Municipal Code, the
Public Works Director has determined that the final map is in substantial compliance with the
previously approved tentative map and approved modifications thereof. California Government
Code Section 66474.1 states that “a Legislative body shall not deny approval of a final or parcel
map if it has previously approved a tentative map for the proposed subdivision and if it finds that
the final or parcel map is in substantial compliance with the previously approved tentative map.”
The approval of a final map is considered a ministerial action.
Appropriate securities will be submitted prior to map recordation to guarantee completion of the
required subdivision improvements as shown in the Subdivision Agreement (Attachment P). The
Subdivision Agreement is still in draft form as some details are still being negotiated with the
Subdivider such as amount and timing of fee payments, bonds, and specific language in the
agreement. The resolution approving the final map also authorizes the Mayor to sign the
Subdivision Agreement requiring the Subdivider to complete the subdivision improvements.
CONCURRENCES
The Director of Public Works, the Director of Parks and Recreation, and the Natural Resources
Manager concur with the recommended action.
ENVIRONMENTAL REVIEW
The San Luis Ranch Specific Plan and associated Final Environmental Impact Report were
approved and certified by the City Council on July 18, 2017, pursuant to Resolution No. 10822
(2017 Series). The City Council also certified a Final Supplemental EIR on July 17, 2018, for a
revised project, pursuant to Resolution No. 10927 (2018 Series). The FEIR and Final
Supplemental EIR constitute the complete environmental determination for the projec t. The final
map is substantially in conformance with the tentative map evaluated with these prior
environmental determinations.
Approval of the final map is statutorily exempt under the California Environmental Quality Act
(CEQA) pursuant to Section 15268(b)(3) Ministerial Projects (approval of final subdivision
maps) of Title 14 of the California Code of Regulations (State CEQA Guidelines). Therefore, no
further environmental review is required.
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FISCAL IMPACT
There is no new fiscal impact to the Cit y associated with approving the final map for Tract 3096. A
fiscal analysis showed that if residential phases precede commercial phases, city expenditures would
exceed revenues. The Developer has agreed to terms in the Development Agreement to address any
funding gaps. At full buildout of the project, ongoing revenues are projected to exceed ongoing
expenditures.
The public improvements that will be constructed with this tract will result in an increase in
maintenance costs for the public streets, public water and sewer utilities, and other infrastructure
upon acceptance of the improvements by the City. However, during the course of evaluating the
project its overall fiscal impact, including the City’s obligations for infrastructure maintenance, was
determined to be net positive to the City’s General Fund. In addition, the City’s General Plan has
been evaluated for its fiscal and economic impact on the General Fund and development under the
General Plan is considered to have a net positive fiscal impact. The direct costs of infrastructure
maintenance associated with this project will be shown in future Financial Plans as the facilities are
accepted and begin to require standard maintenance.
ALTERNATIVE
Deny approval of the final map. Denying approval of the final map can apply if findings are
made that the requirements or conditions of the tentative map have not been met or performed
(Section 66473 of the Subdivision Map Act) or if findings are made that the final map is not in
substantial compliance with the previously approved tentative map (Section 66474.1 of the
Subdivision Map Act). Because the final map is in substantial compliance with the tentative map
and all of the conditions of the map will be met or securities deposited prior to map recordation ,
Sections 66474.1 and 66473 of the Subdivision Map Act require that City Council approve the
map. Therefore, denying approval of the final map is not a recommended alternative unless the
required findings are made.
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Attachments:
a - Draft Resolution Approving Final Map
b - Vicinity Map
c - Council Reading File - Resolution No. 10822 (2017 Series) approving tentative map
d - Council Reading File - Tentative Map
e - Council Reading File - Resolution No. 10927 (2018 Series) certifying the Final
Supplemental EIR
f - Council Reading File - Ordinance No. 1649 (2018 Series) approving Development
Agreement
g - Open Space Conservation Easement on Lots 1 and 3 (10-31-2018)
h - Ag Conservation Easement on Lot 10, 309, 310 and 311 (11-02-2018)
i - Off-Site Ag Easement on Esajian property (10-19-2018)
j - Temporary Access License between SLR and City Farm (11-02-2018)
k - Permanent Access Easement between SLR and City Farm (11 -02-2018)
l - Historic Preservation Easement on Lot 304 (10-12-2018)
m - Well Monitoring Access License (11-08-2018)
n - No Build Zone Restrictive Covenant (10-26-2018)
o - Final Map (draft)
p - Subdivision Agreement
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R _____
RESOLUTION NO. (2018 SERIES)
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS
OBISPO, CALIFORNIA, APPROVING THE FINAL MAP FOR TRACT 3096
SAN LUIS RANCH (1035 MADONNA ROAD, SBDV-3772-2016)
WHEREAS, the City Council made certain findings concerning the vesting tentative map for
Tract 3096, as prescribed in Resolution No. 10822 (2017 Series); and
WHEREAS, the City Council approved a supplemental Final Environmental Impact Report
(FEIR) for Tract 3096 by Resolution No. 10927 (2018 Series); and
WHEREAS, the City Council entered into a Development Agreement with the Subdivider
of Tract 3096 with Ordinance No. 1649 (2018 Series); and
WHEREAS, the Community Development Director approved minor corrections to the
tentative map as allowed by the City Municipal Code and California Government Code; and
WHEREAS, the subdivider has requested that the Council approve the final map for
Tract 3096; and
WHEREAS, the community park within Tract 3096 will be owned and maintained by the
Homeowner’s Association, but will be open to the public for public use; and
WHEREAS, Caltrans requires fee ownership of property that includes the
Prado/Highway 101 overcrossing and interchange; and
WHEREAS, there are certain biological areas within Tract 3096 for riparian corridors and
habitat that need to be preserved; and
WHEREAS, Tract 3096 is required to preserve 59 acres of prime farmland by the recordation
of deed restrictions over on-site and off-site property; and
WHEREAS, Tract 3096 has requested construction access across the adjacent City-owned
farm lot; and
WHEREAS, the City and Tract 3096 desire to permanently memorialize existing informal
access being taken across each other’s properties to access their respective agriculture operations; and
WHEREAS, Tract 3096 is required to preserve certain historical structures; and
WHEREAS, the Airport Land Use Commission required a “no build” easement be placed
over a portion of Tract 3096; and
WHEREAS, the subdivider will submit appropriate securities to guarantee installation of
the required subdivision improvements as shown on the approved plans prior to map recordation,
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Resolution No. (2018 Series) Page 2
R ______
and the required fees will be received prior to map recordation, as pre scribed in the Subdivision
Agreement, Development Agreement, project approvals, and the FEIR; and
WHEREAS, all requirements, conditions and mitigation measures required per said
Council Resolution No. 10822 (2017 Series) approving the tentative map, Council Resolution No.
10927 (2018 Series) certifying the Final Supplemental Environmental Impact Report, and
Ordinance No. 1649 (2018 Series) approving the Development Agreement.) have been completed
or appropriate securities will be in place to guarantee their completion prior to map recordation;
and
WHEREAS, some of the improvements being constructed by Tract 3096 are off-site and are
considered stand-alone projects that could be completed and accepted for maintenance by the City
prior to completion of the remaining subdivision improvements; and
WHEREAS, Tract 3096 has been approved to be annexed into the City of San Luis Obispo;
and
WHEREAS, the San Luis Ranch Specific Plan and associated Final Environmental Impact
Report were approved and certified by the City Council on July 18, 2017, pursuant to Resolution No.
10822 (2017 Series). The City Council also certified a Final Supplemental EIR on July 17, 2018, for
a revised project, pursuant to Resolution No. 10927 (2018 Series); and
WHEREAS, approval of the final map is statutorily exempt under the California
Environmental Quality Act (CEQA) pursuant to Section 15268(b)(3) Ministerial Projects (approval
of final subdivision maps) of Title 14 of the California Code of Regulations (State CEQA Guidelines).
Therefore, no further environmental review is required.
NOW, THEREFORE, BE IT RESOLVED by the Council of the City of San Luis Obispo
as follows:
SECTION 1. The final map for Tract 3096 is found to be in substantial conformance with
the tentative map.
SECTION 2. The Mayor is authorized to accept an easement for public use of the private
park(s) on Tract 3096 in a form acceptable to the Parks and Recreation Director, the Public Works
Director, and the City Attorney; and the Community Development Director is authorized to issue
park fee credits to Tract 3096 with concurrence from the Parks and Recreation Director.
SECTION 3. The Mayor is authorized to accept fee offers and slope easements for the
Prado/Highway 101 interchange when they are determined to be needed. The fee offers and slope
easements shall be in a form acceptable to the Public Works Director, the Community Development
Director, and the City Attorney.
SECTION 4. The Mayor is authorized to accept an Open Space Conservation Easement for
the preservation of the biological areas on Tract 3096 in a form substantially the same as shown in
Attachment C of the staff report.
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Resolution No. (2018 Series) Page 2
R ______
SECTION 5. The Mayor is authorized to accept an easement for on-site preservation of
farmland on Tract 3096 and off-site preservation of farmland on the Esajian property in a form
substantially the same as shown in Attachments D and E of the staff report.
SECTION 6. The Mayor is authorized to grant a temporary easement to Tract 3096 across
the City Farm property on Calle Joaquin for construction and agricultural access in a form
substantially the same as shown in Attachment F of the staff report.
SECTION 7. The Mayor is authorized to grant a permanent easement to Tract 3096 across
the City Farm property on Calle Joaquin for agricultural access and accept an easement for City’s use
of a portion of Tract 3096 for access to the City Farm property in a form substantially the same as
shown in Attachment G of the staff report.
SECTION 8. The Mayor is authorized to accept an easement for the preservation of historic
resources on Tract 3096 in a form substantially the same as shown in Attachment H of the staff report.
SECTION 9. The Mayor is authorized to execute a license agreement authorizing the City to
monitor the water wells on Tract 3096 in a form substantially the same as shown in Attachment I of
the staff report.
SECTION 10. The Mayor is authorized to accept a “no build” easement on behalf of the
Airport Land Use Commission restricting the construction of certain improvements within the “no
build” easement area in a form substantially the same as shown in Attachment J of the staff report.
SECTION 11. Approval of the final map for Tract 3096 shown in Attachment K of the staff
report is hereby granted with the understanding that minor changes to the final map for technical
accuracy and condition compliance are still needed. The Public Works Director is authorized to
approve these changes and record the map when it is deemed to be complete and all conditions and
mitigation measures are complied with.
SECTION 12. The Mayor is authorized to approve revisions to the Subdivision Agreement
for Tract 3096 and execute the agreement in a form substantially shown in Attachment L of the staff
report.
SECTION 13. The Public Works Director is authorized to reduce or release securities for the
site grading and the off-site improvements, including the 24” sewer trunk line and lift station upgrade,
once the requirements for release are met and is authorized to cause the improvements to be accepted
into the City’s maintenance system.
SECTION 14. The Mayor and City staff are authorized to take action necessary to carry out
the intent of this resolution.
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Resolution No. (2018 Series) Page 2
R ______
SECTION 15. Environmental Review. Both the FEIR and Final Supplemental EIR constitute
the complete environmental determination for the project. The final map is substantially in
conformance with the tentative map evaluated with these prior environmental determinations.
Approval of the final map is statutorily exempt under the California Environmental Quality Act
(CEQA) pursuant to Section 15268(b)(3) Ministerial Projects (approval of final subdivision maps) of
Title 14 of the California Code of Regulations (State CEQA Guidelines). Therefore, no further
environmental review is required.
Upon motion of _______________________, seconded by ________________________,
and on the following roll call vote:
AYES:
NOES:
ABSENT:
The foregoing resolution was adopted this ______ day of _______________ 2018.
________________________________
Mayor Heidi Harmon
ATTEST:
______________________________
Teresa Purrington
City Clerk
APPROVED AS TO FORM:
________________________________
J. Christine Dietrick
City Attorney
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City
of San Luis Obispo, California, this ______ day of ______________, _________.
______________________________
Teresa Purrington
City Clerk
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VICINITY MAP
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Page 1
San Luis Ranch - Open Space Conservation Easement
(10-31-2018)
RECORDING REQUESTED BY AND
WHEN RECORDED RETURN TO:
City of San Luis Obispo
Attn: City Clerk
990 Palm Street
San Luis Obispo, CA 93401
PTN of APN: 067-121-022 Space Above This Line for Recorder's Use
OPEN SPACE CONSERVATION EASEMENT
This Open Space Conservation Easement (“Easement”) is made this _____ of
__________ 2018, by MI SAN LUIS RANCH, LLC, having an address at 330 James Way,
Suite 270, Pismo Beach California 93449 (“Landowner”), to the City of San Luis Obispo,
having an address at 990 Palm Street, San Luis Obispo, California 93401 (“Grantee”), for
the purpose of forever conserving the open space character of the subject property.
RECITALS
A.WHEREAS, Owner owns certain real property (the “Subject Property”) legally
described in the attached Exhibit “A”; and
WHEREAS, the Subject Property has certain natural biological resources, natural
scenic beauty and existing openness of importance to the community; and
WHEREAS, on July 18, 2017, the City Council adopted a resolution certifying the
Final Environmental Report (“FEIR”) for the Project and adopting CEQA findings and a
mitigation monitoring plan, and adopted a resolution approving the San Luis Ranch
Specific Plan and related entitlements; and
WHEREAS, on July 17, 2018, the City Council adopted a resolution certifying a
Supplemental Environmental Impact Report (“SEIR”), and adopted a resolution approving
the Amended San Luis Ranch Specific Plan and related entitlements ; and
WHEREAS, both Owner and City desire to preserve and conserve for the public
benefit the biological diversity, natural scenic beauty and existing openness and other
natural conditions on the Subject Property; and
No fee pursuant to Government Code § 6103
No Documentary Transfer Tax per R&T Code § 11922
No Recording Fee per Government Code § 27383
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Page 2
San Luis Ranch - Open Space Conservation Easement
(10-31-2018)
WHEREAS, in order to satisfy the requirements of the FEIR, the Owner has agreed
to grant to the City, and City has agreed to accept, this biological open space easement to
preserve the above described values by restricting Owner’s use of and activities on the
Subject Property through the imposition of a perpetual biological open space ea sement with
the terms and conditions hereinafter set forth.
GRANT OF OPEN SPACE CONSERVATION EASEMENT
NOW THEREFORE, in consideration of the above recitals, in compliance with
Chapter 6.6 of Part 1 of Division 1 of title 5 of the Government Code of the S tate of
California commencing with Section 51070, and in further consideration of the mutual
promises, covenants and the conditions herein contained and the substantial public benefits
to be derived therefrom, the Owner and City agree as follows:
1. Owner hereby grants to City, and City hereby accepts, a biological open
space easement (the “Easement”) over a portion of Subject Property legally described in
attached Exhibit “B” (the “Easement Area”) both of which are incorporated herein by this
reference. Said grant of easement conveys to City an estate and interest in the Subject
Property. The purpose of the easement is to protect said biological diversity, natural scenic
beauty and existing openness and other natural conditions by voluntarily restricting the use
of the Easement Area as hereinafter set forth.
2. The Landowner and its successors in interest to the Easement Area,
including their respective agents, may undertake and enjoy use of the Easement Area for
all purposes as provided in the San Luis Ranch Specific Plan, specifically for Habitat
Enhancement, Resource Management, and Improvements including those uses set forth in
subsections (a) through (k) below (collectively the “Allowed Uses”):
(a) Activities to create, maintain, restore, or enhance wildlife habitat
and native biological communities on the Property pursuant to the approved
Habitat Mitigation and Monitoring Plan, the approved Wetland and
Riparian Mitigation and Monitoring Plan, and the approved Tree Protection
Plan, collectively, the “Mitigation Plans.” Landowner will be responsible
for implementing the activities required under the Mitigation Plans for the
time period set forth therein. After Landowner’s completion of the activities
required under the Mitigation Plans, title to the Property and responsibility
for long-term maintenance will pass to the San Luis Ranch Home Owner’s
Association.
(b) Removal, pruning, and maintaining vegetative resources, including
removal of invasive species, to the extent reasonably prudent as required to
accommodate permitted improvements on the Property, or maintaining the
health of native species on or about the Property. Planting and replanting,
including but not limited to riparian restoration and compensatory wetland
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mitigation with native species, is specifically allowed, per the Mitigation
Plans.
(c) Recreational, educational, and scientific research activities are
permitted that do not materially and adversely affect maintenance or
attainment of Conservation Purpose such as the following: (1) wildlife
research consistent with and in furtherance of the Open Space Purpose, and
(2) nature study.
(d) Construction, use, maintenance and repair of improvements within
the Easement Area as shown on the approved subdivision improvement
plans for Tract 3096 on file at the City (FMAP-0174-2017), including any
modifications thereof, (the “Approved Plans”), is allowed , , subject to all
federal, state, and local regulations . Replacement, relocation, removal, or
expansion of said improvements in substantially the same locations as
shown on the Approved Plans is allowed subject to any required review and
approval by the City and required regulatory agencies.
(e) Community gardens for the benefit of the residents of the Subject
Property in accordance with the Specific Plan, CC&R’s, and San Luis
Ranch Home Owner’s Associa tion Rules & Regulations may be
maintained, repaired, and replaced on the Easement Area.
(f) The right for domestic, non-commercial purposes to engage in any
outdoor recreational and other open-space activities that are not disruptive
of the natural environme nt and which are not inconsistent with the purpose
of this Open Space Conservation Easement.
(g) Utility improvements must be underground or, subject to review,
may be aboveground where not reasonably feasible to be installed
underground.
(h) New buildings and other structures and improvements to be used
solely for the Allowed Uses on the Easement Area, including facilities for
nature study, footbridges, stream crossing structures, stream access
structures, and storage buildings of a maximum size of 200 s.f. but not
including any dwelling, may be built on the Easement Area with the
permission of the Grantee which shall not be unreasonably withheld . All
such structures may be repaired and replaced without permission of the
Grantee.
(i) A water well for irrigation purp oses on the Easement Area may be
constructed and maintained in the Easement Area.
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(j) Fences may be maintained, repaired, and replaced. If desired, “see-
through” fencing appropriate to open space preservation may be constructed
provided that the location and design of fences shall facilitate the
movements of wildlife across the Easement Area and are otherwise
consistent with the Purpose.
(k) Signs may be placed and maintained on the Property in accordance
with the San Luis Ranch Specific Plan. Informational signa ge may be
placed and maintained on the Property provided that no individual sign
exceeds twelve (12) square feet. Landowner may place larger signs on the
Easement Area if Grantee determines that said signs are consistent with the
Purpose.
3. The restrictions hereby imposed upon the use of the Easement Area by
Owner and the acts which Owner shall refrain from doing upon the Easement Area are,
and shall be, as follows:
(a) Owner shall not remove or permit to be removed any vegetation
within the Easement Area, except as reasonably necessary for fire
protection, hazard abatement, drainage conveyance, or replacement or
removal of dead vegetation, as allowed or approved by the City’s Natural
Resources Manager or his/her designee. Owner shall be solely responsible
for obtaining any and all necessary permits and regulatory approvals, as
applicable, prior to engaging in such work.
(b) No extraction of surface or subsurface natural resources shall be
allowed.
(c) The general topography of the Easement Area shall be preserved in
its natural condition on the Easement Area except as otherwise approved in
the Approved Plans.
(d) No obstructions to drainage flows in the Easement Area shall be
allowed.
4. Owner hereby grants to City the following rights:
(e) To access and enter upon the Easement Area at reasonable times in
order to monitor Owner’s compliance with and to otherwise enforce the
terms of this Agreement.
(f) To access and enter upon the Easement Area in order to remove and
dispel any encampments or illegal occupations located thereon.
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5. Owner retains all responsibilities and shall bear all costs and liabilities of
any kind related to the ownership, operation, upkeep, and maintenance of the Easement
Area, including removing any drainage obstructions as needed to provide for the
conveyance of creek flows, subject to the review and approval of other agencies with
regulatory control over work done in the riparian corridor, specifically the State
Department of Fish and Game and the U. S. Army Corps of Engineers. In the event the
City determines that the Owner has not adequately maintained the Easement Area in
accordance with the provisions of this Agreement, then the City may give written notice to
the Owner, which notice shall contain a reasonable time to cure, and in the event Owner
fails to cure, then the City may undertake the maintenance of such Easement Area at
Owner’s sole cost and expense. Any costs incurred by the City shall be a lien against the
property and shall be the personal obligation of the Owner.
6. Nothing contained herein shall ever be construed as a grant to the general
public of any right to enter upon any part of the Property, although Landowner may permit
public access to the Property on such terms and conditions as it deems appropriate,
provided that such access is consistent with the Purpose.
7. Owner shall indemnify, defend and hold harmless City, its officials, officers
and employees, agents, representatives, successors and assigns from and against any and
all claims, actions, or demands, costs or expenses (including attorney’s fees), arising out
of or in any way connected with Owner’s obligations set forth in this Agreement.
8. This Easement shall remain in effect in perpetuity.
9. This grant may not be abandoned by the City except pursuant to all of the
provisions of Section 51093 of the Government Code of the State of California.
10. This grant of biological open space easement, as specified in Section 51096
of the Government Code of the State of California, upon execution and acceptance in
accordance with Chapter 6.6 of Part 1 of Division 1 of Title 5 of the Government Code of
the State of California commencing with Section 51070, shall be d eemed an enforceable
restriction within the meaning of Article XIII, Section 8 of the Constitution of the State of
California.
11. Land uses permitted or reserved to the Owner by this grant shall be subject
to the ordinances of the City regulating the use of land.
12. The City shall have the right of access to remove any drainage obstructions
as needed to provide for the conveyance of creek flows, subject to the review and approval
of other agencies with regulatory control over work done in the riparian corridor,
specifically the State Department of F ish and Game and the U. S. Army Corps of Engineers.
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13. Any notices to the Landowner and the Grantee required by this Easement
shall be in writing and shall be personally delivered or sent by First -Class Mail to the
following addresses, unless a party has been notified by the other of a change of address:
If to Grantee: Michael Codron
Community Development Department
919 Palm Street
San Luis Obispo, CA 93401
With Copy to: J. Christine Dietrick
City Attorney
990 Palm Street
San Luis Obispo, CA 93401
If to Landowner: Gary Grossman
MI San Luis Ranch, LLC
c/o Coastal Community Builders, Inc.
330 James Way, Suite 270
Pismo Beach, CA 93449
With Copy to: Steven Spierer
Spierer|Woodward|Corbalis|Goldberg
707 Torrance Boulevard, Suite 200
Redondo Beach, CA 90277-3400
14. The terms and conditions contained herein shall run with the land and shall
be binding on the parties hereto and their heirs, successors and assigns.
15. If any legal action or proceeding arising out of or relating to this Agreement
is brought by either party to this Agreement, the prevailing party will be entitled to receive
from the other party, in addition to any other relief that may be granted, the reasonable
attorney's fees, costs, and expenses incurred in the action or proceeding by the prevailing
party.
16. This Easement shall be interpreted under the laws of the State of California,
resolving any ambiguities and questions of the validity of specific provisions so as to give
maximum effect to its conservation purposes.
17. If any term, provision, covenant, condition, or restriction of this Easement
is held by a court of competent jurisdiction to be unlawful, invalid, void, unenforceable, or
not effective the remainder of this Easement shall remain in full force and effect and shall
in no way be affected, impaired, or invalidated.
18. This Agreement constitutes the entire agreement bet ween Owner and City
relating to the Easement. Any prior agreements, promises, negotiations, or representations
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not expressly set forth in this Agreement are of no force and effect. Any amendment to this
Agreement will be of no force and effect unless it is in writing and signed by Owner and
City or their respective successors or assigns. This Agreement will be effective upon the
date it is recorded.
IN WITNESS WHEREOF, the parties hereto have executed this document on the day
and year first written above.
GRANTEE:
CITY OF SAN LUIS OBISPO
_____________________________
Heidi Harmon, Mayor
APPROVED AS TO FORM:
_____________________________
Christine Dietrick, City Attorney
LANDOWNER:
MI SAN LUIS RANCH, LLC,
a Delaware limited liability company
By: MI Entitlements IV, LLC
A Delaware limited liability company
Its: Manager
By: Presidio Merced Land IV Passive, LLC
A Delaware limited liability company
Its: Co-Manager
By: ____________________________
Michael M. Sullivan
Its Authorized Representative
By: GGCCB, LLC
A California limited liability company
Its: Co-Manager
By: _____________________________
Gary Grossman
Its Managing Member
[ACKNOWLEDGEMENTS ATTACHED.]
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EXHIBITS
Exhibit A (Legal Description of Subject Property)
Exhibit B (Legal Description of Easement Area)
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EXHIBIT A
Legal Description
A portion of Lot 64 and 65 of the Subdivision of the Rancho Canada de Los Osos and La Laguna, as filed in Book A,
at Page 83 and 84 of Maps, and Lot Land a portion of Lots K, M, and N of the Re-subdivision of Lots 58, 61, 62, 63,
64 and 65, per J. Stratton's Survey and Map of the Subdivisions of the Rancho Canada de Los Osos and La Laguna,
as filed in Book A, at Page 161 of Maps in the office of the Recorder of San Luis Obispo County, California, more
particularly described as follows:
Commencing at the most Northerly corner of Lot K (Corner "EE") as shown on said map filed in Book A, at Page 161
of Maps, being on the existing City Limit boundary of the City of San Luis Obispo at the Northern terminus of
course No. 62 of the "Los Osos Road No. 1 Annexation" as approved by Resolution No. 1728 of the legislative body
of said City, and being on the Southeasterly line of Madonna Road right-of-way, known formerly as French Road;
Thence, leaving said Road, along the Southwesterly line of Lot J as shown on said map filed in Book A, at Page 161,
and along the existing City Limit boundary of said Los Osos Road No. 1 Annexation, South 45° 36' 38" East, 393.00
feet to the True Point of Beginning;
1.Thence, continue along the Southwesterly line of said Lot J, and along the existing City Limit boundary of
said Los Osos Road No. 1 Annexation, South 45° 36' 38" East, 1088.10 feet;
2.Thence, along the Southeasterly line of said Lot J, North 42° 52' 03" East, 145.28 feet;
3.Thence, along the Southwesterly line of Lot I as shown on said map filed in Book A, at Page 161 of Maps,
South 54° 08' 17" East, 558.56 feet to the Westerly boundary of the State Highway 101 right-of-way;
4.Thence, continue along the existing boundary of said Los Osos Road No. 1 Annexation, Southerly, and
along the Westerly boundary of State Highway 101 right-of-way on a curve that is concave to the West
from a radial bearing South 62 ° 47' 19" East, with a radius of 2420.00 feet, through a central angle of oo·
33' 58", an arc length of 23.91 feet;
5.Thence, continue along the Westerly boundary of State Highway 101 right-of-way, and along the existing
boundary of said Los Osos Road No. 1 Annexation, South 27° 46' 39" East, 2557.88 feet to the
Northeasterly boundary of Lot "EE" as designated according to said map filed in Book A, at Page 161 of
Maps;
6.Thence, leaving the Westerly boundary of State Highway 101 right-of-way, along the Northeasterly
boundary of said Lot EE, being the existing City Limit boundary of Annexation No. 71 as approved by
Resolution No. 2005-09 of the legislative body of said City, North 54° 25' 52" West, 1349. 74 feet;
7.Thence, continue along the Northeasterly boundary of said Lot "EE", and along the existing City Limit
boundary of said Annexation No. 71, North 53 ° 35' 32" West, 733.70 feet to the most Northerly corner of
said Lot EE, being the Northeast corner (corner "AE") of Lot Oas designated according to said map filed in
Book A, at Page 161 of Maps, and being the most Eastern corner of the existing City Limit boundary of the
"Lakewood Addition" as approved by Resolution No. 924 of the legislative body of said City;
8.Thence, along the Northeasterly line of said Lot 0, and along the existing City Limit boundary of said
"Lakewood Addition", North 35° 34' 51" West, 41.45 feet to the most Southern corner of Tract No. 169 as
filed in Book 6, at Page 45 of Maps in the office of the Recorder for said County, and the most Southern
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Exhibit B
(Legal Description of Easement Area)
That portion of Lot 1 identified as “Private Open Space and Conservation Easement”
shown on the map of Tract 3096 recorded on ____________, 20____ in Book ______ of
Maps, Pages ____ through ____, inclusive, in the office of the County Recorder of the
County of San Luis Obispo, State of California; and
All of Lot 3 identified as “Private Open Space Conservation Easement, and P.A.E.” shown
on the map of Tract 3096 recorded on ____________, 20____ in Book ______ of Maps,
Pages ____ through ____, inclusive, in the office of the County Recorder of the County of
San Luis Obispo, State of California.
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RECORDING REQUESTED BY AND
WHEN RECORDED RETURN TO:
City of San Luis Obispo
Attn: City Clerk
990 Palm Street
San Luis Obispo, CA 93401
PTN FRMR APN: 067-121-022 Space Above This Line for Recorder's Use
NO RECORDING FEE – PUBLIC AGENCY – Government Code § 6103
AGRICULTURAL CONSERVATION EASEMENT
This Agricultural Conservation Easement is made this _____ of __________ 2018, by MI SAN
LUIS RANCH, LLC, having an address at 330 James Way, Suite 270, Pismo Beach CA 93449
(the “Landow ner”), to the City of San Luis Obispo, having an address at 990 Palm Street, San Luis
Obispo, California (the “Grantee”), for the purpose of forever conserving the agricultural
productive capacity and open space character of the subject property.
RECITALS
A. The Landowner is the sole owner in fee simple of the agricultural property as the
same is more particularly described in Exhibit A (the “Property”) as attached to and made a part
of this Agricultural Conservation Easement (the “Easement”). The Property consists of
approximately 49.01 acres of land commonly known as the “Farm at San Luis Ranch,” located in
San Luis Obispo County, California. The existing improvements on the Property include
agricultural wells and appurtenant facilities, agricultural access roads, wastewater lines, utility
lines, and billboards described in Exhibit B (the “Existing Improvements”). The Property is
substantially open farmland, whose soils have been classified as prime farmland by the U.S.
Department of Agriculture’s Natural Resources Conservation Service, and by the California
Department of Conservation’s Farmland Mapping and Monitoring Program, because this land has
the soil quality, growing season, and water supply needed for sustained agricultural production.
B. The agricultural and other characteristics of the Property, its current use and
condition of improvement, are documented and described in the Agriculture section of the San
Luis Ranch Final Environmental Impact Report (The “FEIR”), incorporated herein by this
reference. The Landowner and the Grantee acknowledge that the FEIR is complete and accurate
as of the date of this Easement. Landowner and Grantee acknowledge that the Property is a
component of the “San Luis Ranch” development which consists of a S pecific Plan, Development
Plan, Vesting Tentative Tract Map, and Development Agreement to develop up to 580 residential
units and approximately 250,000 square feet of commercial development on the San Luis Ranch
Property as more particularly set forth in C ity Resolution No. 10822 (2017 Series) (the “Project”).
As part of the mitigation measures for the Project, prior to the issuance of any grading permits for
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the Project, Landowner is required to forever conserve and protect the Property from future
development and to ensure that it will remain in agricultural use. The Project, however, requires
substantial amounts of grading within and around the Property as well as the installation of a sewer
line and storm drain which, as mitigated by the FEIR, will not r esult in significant degradation of
the viability of the agricultural use of the Property. In addition, as part of the Project and to
accommodate both immediate and future regional transportation infrastructure, namely, the Prado
Road Interchange, the Property includes certain offers of dedication to the City. As of the Effective
Date of this Easement, the full scope of those regional improvements and the amount of the
Property needed to accommodate that infrastructure is unknown. In drafting this Easement, it is
the express intent and purpose of Grantor and Grantee to encumber the portion of the Property
subject to the offers of dedication and that the Easement shall hereafter be terminated as to any
portion of the Property which is the subject of an offer of dedication subsequently accepted by
the City, under the doctrine of merger of estates.
C. The Landowner grants this Easement for valuable consideration to the Grantee for
the purpose of complying with the mitigation measures for the Project and for assuring that the
agricultural productive capacity and open space character of the Property will be conserved and
maintained, and that, except as specifically provided herein, that future uses of the land that are
inconsistent with these conservation purposes will be prevented or corrected. The parties agree,
however, that the current use of, and improvements to, the Property are generally consistent with
the conservation purposes of this Easement.
GRANT OF AGRICULTURAL CONSERVATION EASEMENT
Now, therefore, for the reasons given, and in consideration of their mutual promises and
covenants, terms, conditions and restrictions contained herein, and other good and valuable
consideration, the receipt and adequacy of which are hereby acknowledged, the La ndowner
voluntarily grants and conveys to the Grantee, and the Grantee voluntarily accepts, a perpetual
conservation easement, as defined by Section 815.1 and 815.2 of the California Civil Code, and of
the nature and character described in this Easement for the purpose described below, and agree as
follows:
1. Conservation Purpose.
The conservation purpose (“Conservation Purpose” or “Purpose”) of this Easement is to enable
the Property to remain in productive agricultural use by preventing and correcting uses of the
Property prohibited by the provisions of this Easement. To the extent that the preservation of the
open space character, scenic and agricultural values of the Property are consistent with such use,
it is within the Purpose of this Easement to protect those values.
2. Landowner’s Reservations.
(a) Landowner’s Grading and Stockpiling Rights and Restoration Obligations.
Notwithstanding any provision of this Easement to the contrary, the Landowner
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specifically reserves the limited right to perform grading and soil stockpiling at and upon
the Property for purposes of performing and completing the construction of the Project at
the Landowner’s adjacent real property, in accordance with the San Luis Ra nch Specific
Plan, the Project’s conditions of approval, and mitigation measures. Under no
circumstances shall the Property be used for the staging of a construction trailer, equipment
or material (except for soil stockpiling) or for parking of vehicles or equipment. At all
times, Landowner shall comply with the November 2016 Grading Plan Review for
Continued Agricultural Suitability in Floodway Memorandum prepared by Althouse and
Meade, Inc. (the “Althouse & Meade Memo”) and Condition of Approval no. 118 (“COA
118”) as shown in Resolution 10822 (2017 Series) including the submission of a “…plan
for interim stockpiling and salvage of topsoils…”. Upon the completion of the Project’s
construction, Landowner shall restore the Property to the condition it enjoye d prior to the
grading and any stockpiling activity. For purposes of this Easement, the term “completion
of the Project’s construction” shall mean the point in time when the sewer line, storm drain
improvements referenced on the Project Plans are installed , all grading activities on the
Property are completed, and a revised flood map is approved by the Federal Emergency
Management Agency (“FEMA”). To the extent that Landowner fails to perform such
restoration within thirty (30) days following the completion of the Project’s construction,
or fails to commence such restoration within said period and thereafter diligently pursue
the same until completion, the Grantee shall have the right, but not the obligation, to
perform such restoration at Landowner’s sole and absolute expense, and Landowner shall
reimburse Grantee for the cost and expense of said restoration within fifteen (15) days
following the Grantee’s delivery of a written demand to Landowner for such
reimbursement.
(b) Waste Water Lines. Notwithstanding any provision of this Easement to the
contrary, the Landowner specifically reserves the right to install, maintain, repair and
replace waste water lines and related improvements and facilities at the Property in
accordance with the Public Improvement Plans for Tract Map 3096, and to transfer those
facilities and easements for the same to the City of San Luis Obispo.
(c) Bioswales and Storm Water Treatment Facilities. Notwithstanding any provision
of this Easement to the contrary, the Landowner specifically reserves the right to install,
maintain, repair and replace bioswales and storm water treatment facilities and related
improvements on the Property in accordance wit h the Public Improvement Plans for Tract
Map 3096, and to transfer those facilities and easements for the same to the City of San
Luis Obispo.
(d) Baseline Documentation Report. Upon completion of the Project’s construction
and substantial completion of the restoration work per the Althouse and Meade Memo and
COA 118, Grantee shall, at Landowner’s sole expense, prepare a Baseline Documentation
Report (“Baseline Report”) which shall be subject to the review and approval of
Landowner. The Baseline Report shall, at a minimum, include the following information:
date of report completion, preparer‘s identification, address and background information,
ownership information, description of the Property, resources and conservation values,
maps, photographs, and certifications by Landowner and Grantee certifying that the
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Baseline Conditions Report is a complete and accurate representation of the condition of
the Property at the time when the Property is fully remediated for the Agricultural Purposes
as allowed herein.
(e) Non- Prohibited Uses. Notwithstanding any provision of this Easement to the contrary,
the Landowner specifically reserves the right to engage in all acts and uses that are not
expressly prohibited herein and are not inconsistent with the Conservation Purpose of this
Agricultural Conservation Easement.
(f) Agricultural Purposes. The Landowner specifically reserves and retains the right to
use the Property for purposes included within the San Luis Ranch Specific Plan, (collectively
“Agricultural Purposes”) or to permit others to use the Property for Agricultural Purposes, in
accordance with applicable law and the terms of this Easement, without seeking approval or
permission of the Grantee. Notwithstanding the foregoing , for purposes of this easement the
parties agree that the existing billboards may be maintained, repaired and/or replaced as
acceptable and approved Agricultural Purposes under this Easement.
4. Prohibited Uses.
Except as provided in Sections 2 and 3 of this Easement, the Landowner shall not perform, nor
knowingly allow others to perform, any act on or affecting the Property that is inconsistent with
this Easement. Any other use or activity that would diminish or impair the agricultural productive
capacity, open space character and scenic value of the Property, or that would cause significant
soil degradation or erosion, restrict agricultural practices, or that is otherwise inconsistent with the
Agricultural Purposes is expressly prohibited (“Prohibited Use”). This Easement authorizes the
Grantee to enforce these covenants in the manner described herein. However, unless otherwise
specified, nothing in this Easement shall require the Landowner to take any action to restore the
condition of the Property after any act of God or other event over which it had no control. The
Landowner understands that nothing in this Easement relieves it of any obligation or restriction on
the use of the Property imposed by law or by the conditions of approval or mitigation measures
for the Project.
5. Permission of the Grantee.
Where the Landowner is expressly required to obtain the Grantee’s permission for a proposed use
hereunder, said permission (a) shall not be unreasonably delayed or withheld by the Grantee, (b)
shall be sought and given in writing, with copies of all supportive documents to be provided to the
Grantee, and (c) shall in all cases be obtained by the Landowner prior to the Landowner's
undertaking of the proposed use. The Grantee shall grant permission to the Landowner when the
Grantee, acting in the Grantee's s ole reasonable discretion and in good faith, determines that the
proposed use is not a “Prohibited Use” per Section 4.
6. Construction or Placement of Buildings and Other Improvements.
The Landowner may undertake construction, erection, installation, or placement of buildings,
structures, or other improvements on the Property only as provided in subsections (a) through (e)
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below. Except as provided in Sections 2 and 3 of this Easement, all other construction, erection,
installation, or placement of buildings, structures, or other improvements on the Property is subject
to the permission of the Grantee as described in Section 5.
For purposes of this section, the term “improvements” shall not refer to, and specifically excludes,
crops, plants, trees, or other living improvements planted for agricultural purposes, nor shall it
refer to water wells, water lines and/or related irrigat ion improvements necessary or desirable to
irrigate the Property for agricultural purposes, nor shall it refer to farm access roads, all of which
may be planted, constructed or installed at the Property without permission of the Grantee.
Notwithstanding a ny provision of this Easement to the contrary, the following provisions shall
control with respect to the improvements therein specified:
(a) Fences. Existing fences may be repaired and replaced without permission of the
Grantee. New fences may be built anywhere on the Property for purposes of reasonable
and customary agricultural management, and for security of farm produce, livestock,
equipment, and improvements on the Property, without permission of the Grantee.
(b) New Agricultural Support Structures and Improvements. New agricultural support
structures not to exceed a total of 10,000 square feet and improvements to be used solely
for agricultural production on the Property located within a one-half acre fenced in area in
the general vicinity of the Calle Joaquin entrance to the Property, but not including any
dwelling or farm labor housing, may be built on the Property without permission of the
Grantee. All permissible new agricultural structures may be repaired, reasonably enlarged,
and replaced without permission of the Grantee. Any other structures may be constructed
only with permission of the Grantee pursuant to Section 5.
(c) Existing Improvements. The Existing Improvements on the Property may be
maintained, repaired, removed, relocated, or replaced without permission of Grantee.
(d) Existing Easements. The existing easements and easement facilities on the
Property including those for water system appurtenances, agricultural access roads,
wastewater lines, utility lines, and billboards are approved uses under this easement
agreement and may not be terminated without the prior written permission of Landowner.
7. Extinguishment of Development Rights.
The parties agree that all development rights, except as specifically reserved in this Easement, that
were previously, are now or hereafter allocated to, implied, reserved, appurtenant to, or inherent
in the Property, are released, terminated, and extinguished, and may not be used on or transferred
by either party to any portion of the Property as it now or later may be bounded or described, or to
any other property adjacent or otherwise, or hereafter used for the purpose of calculating
permissible lot yield of the Property or any other property. This Easement shall not create any
development rights.
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8. Mining.
The mining or extraction of soil, sand, gravel, rock, oil, natural gas, fuel, or any other mineral
substance, using any method that disturbs the surface of the land, is expressly prohibited, except
as otherwise provided in Section 2.
9. Paving and Road Construction.
Except as may be reasonably required for Agricultural Purposes or construction of the Project, no
portion of the Property shall be paved or otherwise covered with concrete, asp halt, or any other
impervious paving material, unless such measures are required by air quality laws or regulations
applicable to the Property. Except as otherwise permitted herein, no road for access or other
purposes shall be constructed without the permission of the Grantee pursuant to Section 5.
Notwithstanding the foregoing, construction of unpaved farm roads, as necessary or desirable for
Agricultural Purposes, is permitted without permission from the Grantee, unless such work
requires a grading permit, in which case Grantee shall have authority over the work exclusively
within its regulatory capacity. The Landowner shall notify the Grantee of any significant net
relocation or addition of unpaved farm roads.
11. Trash and Storage.
The dumping or accumulation on the Property of any kind of trash, refuse, vehicle bodies or parts,
or “Hazardous Materials,” as defined in Section 2 5 is prohibited. Farm-related trash and refuse
generated at the Property may be temporarily stored on the Property subject to all applicable laws.
The storage of agricultural products and byproducts produced at the Property and materials
reasonably required for agricultural production at the Property is permitted as long as it is done in
accordance with all applicable government laws and regulations.
12. Commercial Signs.
Commercial signs on the Property shall be limited to: (i) the billboards as set forth in the
AGREEMENT ESTABLISHING TERMS OF EASEMENT FOR BILLBOARD SIGNAGE
entered into as of December 23, 2014, by between MI San Luis Ranch, LLC, a Delaware
limited liability company and Ernest F. Dalidio, Jr. and Kristie Dalidio, Trustees of the Ernest
F. Dalidio, Jr. and Kristie Dalidio Family Trust dated November 5, 2003; and, (ii) signs directly
related to the Agricultural Purposes or the Agricultural Heritage and Learning Center. All other
commercial signs at the Property are hereby prohibited.
13. Recreational Uses; Motorized Vehicle Use Off Roadways
Resort structures, athletic fields, golf courses, non-residential swimming pools, public or
commercial airstrips, commercial equestrian facilities, public or commercial helicopter pads, and
any other non-agricultural recreational structures or facilities are prohibited on the Property. The
use of motorized vehicles off roadways is prohibited except where used for Agricultural Purposes,
property maintenance and security, or for the purpose of monitoring this Easement.
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14. Water Rights.
The Landowner shall retain and reserve all ground water, and all appropriative, prescriptive,
contractual or other water rights appurtenant to the Property for use on the Property and
construction of the Project at the time this Easement becomes effective. The Landowner shall not
permanently transfer, encumber, lease, sell, or otherwise separate such water rights from title to
the Property itself. Permanent separation of water rights is prohibited. Any use or temporary
distribution of water shall not imp air the long-term agricultural productive capacity or open space
character of the Property. Nothing is this section shall pre-empt any future regulations or
requirements imposed by a Groundwater Sustainable Agency as authorized by the Sustainable
Groundwater Management Act (“SGMA”) or other later enacted local or state -wide laws.
15. Rights Retained by the Landowner.
As owner of the Property, the Landowner reserves all interests in the Property not transferred,
conveyed, restricted, prohibited or extinguished by this Easement. These ownership rights include,
but are not limited to, the right to sell, lease, or otherwise transfer the Property to anyone the
Landowner chooses, as well as the right to privacy, the right to exclude any member of the public
fr om trespassing on the Property, and any other rights consistent with the Agricultural Purposes of
this Easement. Nothing contained herein shall ever be construed as a grant to the general public of
any right to enter upon any part of the Property.
Nothing in this Easement relieves the Landowner of any obligation or restriction on the use of the
Property imposed by law.
16. Responsibilities of the Landowner and the Grantee Not Affected.
Other than as specified herein, this Easement is not intended to impose any legal or other
responsibility on the Grantee, or in any way to affect any existing obligations of the Landowner as
owner of the Property. Among other things, this shall apply to:
(a) Taxes. The Landowner shall be solely responsible for payment of all taxes and
assessments levied against the Property. If the Grantee ever pays any taxes or assessments
on the Property, or if the Grantee pays levies on the Landowner’s interest in order to protect
Grantee’s interests in the Property, the Landowner will r eimburse the Grantee for the same.
(b) Upkeep and Maintenance. The Landowner shall be solely responsible for the
upkeep and maintenance of the Property, to the extent it may be required by law. The
Grantee shall have no obligation for the upkeep or mainte nance of the Property. If the
Landowner fails to maintain the Property and the Grantee thereafter acts to maintain the
Property in order to protect the Grantee’s interest in the Property, the Landowner will
reimburse the Grantee for any such costs.
(c) Liability and Indemnification. In view of the Grantee’s negative rights, limited
access to the land, and lack of active involvement in the day-to-day management activities
on the Property, to the fullest extent provided by law, the Landowner shall indemni fy,
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protect, defend, with counsel of Grantee’s choice, and hold harmless Grantee, their
officials, officers, directors, members, employees, contractors, legal representatives,
agents, successors and assigns (collectively, “Agents and Assigns”) from and aga inst all
liabilities, costs, losses, orders, liens, penalties, claims, demands, damages, expenses, or
causes of action or cases, including without limitation reasonable attorneys’ fees, arising
out of or in any way connected with or relating to the Landowner’s use of the Property.
The Landowner shall be solely liable for injury or the death of any person, or physical
damage to any property, or any other costs or liabilities resulting from any act, omission,
condition, or other matter related to or occurrin g on or about the Property, regardless of
cause, unless due to the negligence or willful conduct of the Grantee, and/or their respective
Agents and Assigns. The Grantee shall be named as an additional insured on Landowner’s
general liability insurance policy for the Property.
Neither the Grantee nor their Agents and Assigns shall otherwise have any responsibility
for the operation of the Property, monitoring of hazardous conditions on it, or the protection
of the Landowner, the public or any third parties from risks relating to conditions on the
Property. Without limiting the foregoing, neither the Grantee nor their respective Agents
and Assigns shall be liable to the Landowner or other person or entity in connection with
consents given or withheld, or in connection with any entry upon the Property occurring
pursuant to this Easement, or on account of any claim, liability, damage or expense suffered
or incurred by or threatened against the Landowner or any other person or entity, except
when the claim, liability, damage, or expense is the result of the negligence or intentional
conduct of the Grantee and/or their respective Agents and Assigns.
17.Monitoring.
The Grantee shall manage its responsibilities as holder of this Easement in order to uphold the
Purpose of this Easement. The Grantee’s responsibilities include, but are not limited to, annual
review, such reasonable monitoring as circumstances may requir e, record keeping, and
enforcement of this Easement, for the purpose of ensuring that Landowner is in compliance with
the Althouse & Meade Memo and COA 118, and that the baseline soil conditions of the Property
are being maintained and are preserving the Property’s agricultural productive capacity, open
space character and scenic value in perpetuity. Failure of the Grantee to carry out these
responsibilities shall not impair the validity of this Easement or limit its enforceability in any way.
With reasonable advance notice (except in the event of an emergency circumstance or prevention
of a threatened breach), Grantee shall have the right to enter upon, inspect, observe, monitor and
evaluate the Property to identify the current condition of, and uses and practices on the Property
and to determine whether the condition, uses and practices are consistent with this Easement.
Grantee shall indemnify, defend with counsel of Landowner’s choice, and hold Landowner
harmless from, all expense, loss, liability, dam ages and claims, including Landowner’s attorneys’
fees, (collectively “Claims”) arising out of Grantee’s and Grantee’s respective Agents and Assigns
entry on the Property, unless such Claims are caused by a violation of this Easement by Landowner
or by Landowner’s negligence or willful conduct.
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18. Enforcement.
The Grantee may take all actions that it deems necessary to ensure compliance with the terms,
conditions, covenants, and purposes of this Easement. If the Grantee finds what it believes is a
violation or potential violation, it may at its discretion take appropriate legal action to ensure
compliance with the terms, conditions, covenants, and purposes of this Easement and shall have
the right to correct violations and prevent the threat of violatio ns. Except when an ongoing or
imminent violation could irreversibly diminish or impair the agricultural productive capacity and
open space character of the Property, the Grantee shall give the Landowner written notice of the
specific violation or potential violation, and forty (45) days to correct such violation, before filing
any legal action.
If a court with jurisdiction over the Property determines that a violation may exist, has occurred,
or is about to occur, the Grantee may obtain an injunction, specific performance, or any other
appropriate equitable or legal remedy, including (i) money damages, including damages for the
loss of the agricultural conservation values protected by this Easement, (ii) restoration of the
Property to its condition existing prior to such violation, and (iii) an award for all of the Grantee’s
expenses incurred in stopping and correcting the violation, including but not limited to reasonable
attorney’s fees. The failure of the Grantee to discover a violation or potential violation, or to take
immediate legal action to prevent or correct a violation or potential violation known to the Grantee,
shall not bar the Grantee from taking subsequent legal action. The Grantee’s remedies under this
section shall be cumulative and shall be in addition to all remedies now or hereafter existing at law
or in equity.
Failure or refusal to exercise any rights under the terms of this Easement by the Grantee in the
event of a violation by the Landowner of any term herein shall not constitute a waiver or forfeiture
of the Grantee’s right to enforce any other term, condition, covenant, or purpose of this Easement.
19. Transfer of Easement.
This Easement may only be assigned or transferred to a private nonprofit organization that meets
the requirements of Section 815.3(a) of the California Civil Code and has similar purposes to
preserve agricultural lands and open space. Such an assignment or transfer may proceed only if
the organization or agency expressly agrees to assume the r esponsibility imposed on the Grantee
by the terms of this Easement and is expressly willing and able to hold this Easement for the
Conservation Purpose for which it was created. All assignment and assumption agreements
transferring the Easement shall be duly recorded in San Luis Obispo County.
If the Grantee should desire to assign or transfer this Easement, the Grantee must obtain the prior
written permission from the Landowner, which permission shall not be unreasonably withheld or
delayed. Landowner’s failure to respond in writing within forty-five (45) days of receiving written
notice from Grantee of a proposed assignment shall constitute Landlord’s permission for such an
assignment. Any such transfer made without the prior written permission of the La ndowner shall
be deemed void and unenforceable.
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20. Merger of Title.
Pursuant to California Civil Code at Part 2, Chapter 4, (commencing with section 815), which
defines and authorizes perpetual conservation easements; this Easement shall run with the land in
perpetuity except as otherwise expressly provided herein. Every provision of this Easement that
applies to the Landowner or the Grantee shall also apply to their respective agents, heirs, executors,
administrators, assigns, and all other successors as their interests may appear.
In drafting this Easement, Grantor and Grantee each acknowledge Grantee’s potential
future acquisition of fee title as to a portion of the Property in order to accommodate future
improvements related to the proposed Prado Road interchange project. It is the express purpose
and intent of this section to expressly acknowledge and agree, in the event Grantee acquires fee
title to any portion of the Property, that the Easement is forever extinguished as to that portion of
the Property based upon the resultant merger of the estates.
21. Transfer of Property Interest.
Any time the Property itself, or any interest in it, is transferred by the Landowner to any third
party, the Landowner shall notify the transferee in writing at least thirty (30) days prior to the
transfer of the Property or interest, and the document of conveyance shall expressly incorporate
by reference this Easement. Any document conveying a lease of the Property shall expressly
incorporate by reference this Easement. Failure of the Landowner to do so shall not impair the
validity of this Easement or limit its enforceability in any way.
22. Amendment of Easement.
This Easement may be amended only with the written consent of the Landowner and the Grantee.
Any such amendment shall be consistent with the Purpose of this Easement and with the Grantee’s
easement amendment policies, and shall comply with all applicable laws, including Section 170(h)
of the Internal Revenue Code, or any regulations promulgated in accordance with that section, and
with Section 815 et seq. of the California Civil Code, and the California Farmland Conservancy
Program Act as codified in Section 10200 et seq. of the California Public Resources Code, and
any regulations promulgated thereunder. No amendment shall diminish or affect the perpetual
duration or the Purpose of this Easement, nor the status or rights of the Grantee under the terms of
this Easement.
This Easement and any amendment to it shall be recorded in San Luis Obispo County. Copies of
any amendments to this Easement shall be provided to the City of San Luis Obispo within 30 days
of recordation.
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23.Termination of Easement.
(a)The Easement, or portion thereof, may be terminated as provided in paragraph 20
above.
Termination of the Easement through condemnation is subject to the requirements of Section
10261 of the Public Resources Code, the eminent domain laws of the State of Califor nia, federal
law, and this Easement.
24.Interpretation.
(a) References to specific authorities in this Easement shall be to the statute, rule,
regulation, ordinance, or other legal provision that is in effect at the time this Easement
becomes effective.
(b) No provision of this Easement shall constitute governmental approval of any
improvements, construction or other activities that may be permitted under this Easement.
24.Notices.
Any notices to the Landowner and the Grantee required by this Easement shall be in writing and
shall be personally delivered or sent by First-Class Mail to the following addresses, unless a party
has been notified by the other of a change of address:
If to Grantee: Michael Codron
Community Development Department
919 Palm Street
San Luis Obispo, CA 93401
With Copy to: J. Christine Dietrick
City Attorney
990 Palm Street
San Luis Obispo, CA 93401
If to Landowner: Gary Grossman
MI San Luis Ranch, LLC
c/o Coastal Community Builders, Inc.
330 James Way, Suite 270
Pismo Beach, CA 93449
With Copy to: Steven Spierer
Spierer|Woodward|Corbalis|Goldberg
707 Torrance Boulevard, Suite 200
Redondo Beach, CA 90277-3400
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25. The Landowner’s Environmental Warranty.
(a) Nothing in this Easement shall be construed as giving rise to any right or ability in
the Grantee to exercise physical or management control over the day-to-day operations of
the Property, or any of the Landowner's activities on the Property, or otherwise to become
an "owner" or "operator" with respect to the Property as those words are defined and used
in environmental laws, including the Comprehensive Environmental Response,
Compensation, and Liability Act of 1980 (“CERCLA”), as amended or any corresponding
state and local statute or ordinance.
(b) The Landowner warrants that it has no actual knowledge of a release or threatened
release of any Hazardous Materials on, at, beneath or from the Property, except as
otherwise disclosed in public records. Moreover, the Landowner hereby promises to
defend and indemnify the Grantee against all litigation, claims, de mands, penalties and
damages, including reasonable attorneys’ fees, arising from or connected with the release
or threatened release of any Hazardous Materials on, at, beneath or from the Property, or
arising from or connected with a violation of any Envir onmental Laws. The Landowner’s
indemnification obligation shall not be affected by any authorizations provided by the
Grantee to the Landowner with respect to the Property or any restoration activities carried
out by the Landlord at the Property; provided, however, that the Grantee shall be
responsible for any Hazardous Materials released at the Property by the Grantee or
Grantee’s Agents or Assigns.
(c) The Landowner warrants that it shall remain in compliance with, all applicable
Environmental Laws. The La ndowner warrants that there are no known notices by any
governmental authority of any violation or alleged violation of, non-compliance or alleged
non-compliance with or any liability under any Environmental Law relating to the
operations or conditions of the Property.
(d) “Environmental Law” or “Environmental Laws” means any and all Federal, state,
local or municipal laws, rules, orders, regulations, statutes, ordinances, codes, guidelines,
policies or requirements of any governmental authority regulating or imposing standards
of liability or standards of conduct (including common law) concerning air, water, solid
waste, Hazardous Materials, worker and community right -to-know, hazard
communication, noise, radioactive material, resource protection, subdivision, inland
wetlands and watercourses, health protection and similar environmental health, safety,
building and land use as may now or at any time hereafter be in effect.
(e) “Hazardous Materials” means any petroleum, petroleum products, fuel oil, waste
oils, explosives, reactive materials, ignitable materials, corrosive materials, hazardous
chemicals, hazardous wastes, hazardous substances, extremely hazardous substances, toxic
substances, toxic chemicals, radioactive materials, infectious materials and any other
element, compound, mixture, solution or substance which may pose a present or potential
hazard to human health or the environment or any other material defined and regulated by
Environmental Laws.
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(f) If at any time after the effective date of this Easement there occurs a release,
discharge or other incident in, on, or about the Property of any substance now or hereafter
defined, listed, or otherwise classified pursuant to any federal, state, or local law,
regulation, or requirement as hazardous, toxic, polluting, or otherwise contaminating to the
air, water, or soil, or in any way harmful or threatening to human health or the environment,
the Landowner agrees to take any steps that are required of the Landowner with respect
thereto under federal, state, or local law necessary to ensure its containment and
remediation, including any cleanup.
26. The Landowner’s Title Warranty; No Prior Conservation Easements.
The Landowner represents and warrants that it owns the entire fee simple interest in the Property.
Any and all financial liens or financial encumbrances with priority over this Easement existing as
of the date of the recording of this Easement have been or will be subordinated, other than liens
associated with secured tax assessments. The Landowner represents and warrants that the Property
is not subject to any other conservation easement whatsoever.
27. Granting Subsequent Easements, Interests in Land, or Use Restrictions.
When permission of the Grantee is required pursuant to Section 5, the Landowner may hereafter
grant subsequent easements, including conservation easements, interests in land, or use restrictions
on the Property.
28. Severability.
If any term, provision, covenant, condition, or restriction of this Easement is held by a court of
competent jurisdiction to be unlawful, invalid, void, unenforceable, or not effective the remainder
of this Easement shall remain in full force and effect and shall in no way be affected, impaired, or
invalidated.
29. Entire Agreement.
This Easement is the final and complete expression of the agreement between the parties with
respect to the subject matter contained herein. Any and all prior or contemporaneous agreements
with respect to this subject matter, written or oral, are merged into and superseded by this written
instrument.
30. Acceptance.
As attested by the signature of the Mayor, as authorized by the San Luis Obispo City Council, the
Grantee hereby accepts the rights and responsibilities co nveyed by this Deed of Agricultural
Conservation Easement.
In Witness Whereof, the Landowner and the Grantee, intending to legally bind themselves, have
set their hands on the date first written above.
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GRANTEE:
CITY OF SAN LUIS OBISPO
_____________________________
Heidi Harmon, Mayor
APPROVED AS TO FORM:
_____________________________
Christine Dietrick, City Attorney
GRANTOR:
MI SAN LUIS RANCH, LLC,
a Delaware limited liability company
By: MI Entitlements IV, LLC
A Delaware limited liability company
Its: Manager
By: Presidio Merced Land IV Passive, LLC
A Delaware limited liability company
Its: Co-Manager
By: ____________________________
Michael M. Sullivan
Its Authorized Representative
By: GGCCB, LLC
A California limited liability company
Its: Co-Manager
By: _____________________________
Gary Grossman
Its Managing Member
[ACKNOWLEDGEMENTS ATTACHED.]
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EXHIBITS
Exhibit A (Legal Description)
Exhibit B (Description of Existing Improvements)
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Exhibit A
(Legal Description)
Property Legal Description
Lot 10 shown on the map of Tract 3096 recorded on ____________, 20____ in Book ______ of
Maps, Pages ____ through ____, inclusive, in the office of the County Recorder of the County of
San Luis Obispo, State of California; and
Lot 309 shown on the map of Tract 3096 recorded on ____________, 20____ in Book ______ of
Maps, Pages ____ through ____, inclusive, in the office of the County Recorder of the County of
San Luis Obispo, State of California; and
Lot 310 shown on the map of Tract 3096 recorded on ____________, 20____ in Book ______ of
Maps, Pages ____ through ____, inclusive, in the office of the County Recorder of the County of
San Luis Obispo, State of California.
Lot 311 shown on the map of Tract 3096 recorded on ____________, 20____ in Book ______ of
Maps, Pages ____ through ____, inclusive, in the office of the County Recorder of the County of
San Luis Obispo, State of California.
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1050 Southwood DriveSan Luis Obispo, CA 93401P 805.544.7407 F 805.544.3863EXHIBIT B Item 3Packet Pg. 57
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more particularly described in Exhibit "B-1" and depicted in Exhibit "B-2" attached hereto and
incorporated by reference herein as though set forth in full; and
WHEREAS, the Subject Property has certain natural scenic beauty and important open
space and agricultural conservation values ( collectively the "Conservation Values"), and both
Owner and City desire to preserve and conserve for the public benefit the Conservation Values
of the Subject Property of the Owner; and
WHEREAS, the specific Conservation Values and all other existing improvements of the
Subject Property are documented in a "Baseline Conditions Report" dated October 16, 20 18 ,
which inventories relevant features of the Subject Property and is on file with both Owners
and City. The report, which shall be completed prior to the recordation of the Open Space
Easement, signed and certified by Owner and City, consists of narrative description, maps,
photographs, and other documentation that the parties collectively agree provides an accurate
representation of the Subject Property, its resources and Conservation Values at the time of this
grant and which is intended to serve as an objective information baseline for monitoring
compliance with the terms of this Agreement; and
WHEREAS, Owner is willing to grant to City the scenic use, as hereinafter expressed, of
the land and thereby protect and preserve the Conservation Values of the Subject Property by the
restricted use of said property by Owner through the imposition of the conditions hereinafter
expressed; and
WHEREAS, both Owner and City intend that the terms, conditions, and restrictions of
the open-space easement granted in this agreement are in compliance with Government Code
sections 51070 through 51097, inclusive, hereinafter referred to as the "Open-Space Easement
Agricultural and Open-Spucc Agreemenl
(0512-2016)
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Page 1
Temporary Access License
(05-24-2018)
RECORDING REQUESTED BY AND
WHEN RECORDED RETURN TO:
City of San Luis Obispo
Attn: City Clerk
990 Palm Street
San Luis Obispo, CA 93401
APN’S: (San Luis Ranch Property) 067-121-022 Space Above This Line for Recorder's Use
(City Farm Property) 053-152-006; 007; 008 and 009
NO RECORDING FEE – PUBLIC AGENCY – Government Code § 6103
TEMPORARY ACCESS LICENSE
This TEMPORARY ACCESS LICENSE (“Agreement”) is made and entered this ______ day
of ___________, 2018 (“Effective Date”) by and between the City of San Luis Obispo, a municipal
corporation and charter city (“City”), and MI San Luis Ranch, LLC, a Delaware limited liability
company (“Developer”).
WHEREAS, Developer is the owner of that certain real property located at 1035 Madonna Road,
San Luis Obispo, California, APN: 067-121-022 (the “San Luis Ranch Property”) as more
particularly described in Exhibit “A” attached hereto and incorporated herein by this reference ;
WHEREAS, Developer has obtained various entitlements from City, including, but not limited
to, a Specific Plan, Development Agreement, and Vesting Tentative Tract Map to develop up to
580 residential units and approximately 250,000 square feet of commercial devel opment on the
San Luis Ranch Property as more particularly set forth in City Resolution No. 10822; 2017 Series,
(the “Project”);
WHEREAS, City is the owner of certain real property located off Calle Joaquin, San Luis Obispo,
commonly referred to as the “City Farm,” Assessor Parcel Nos. 053-152-006; 007; 008; and, 009
(the “City Farm Property”) and more particularly described in Exhibit “B”;
WHEREAS, the City Farm Property is currently subject to leases and subleases, in favor of
various tenants and subtenants who are hereby collectively referred to herein as “Tenants”;
WHEREAS, City desires to obtain Developer’s permission for the City and the Tenants to enter
onto a portion of the San Luis Ranch Property, on a temporary basis, in order to access the City
Farm Property for the sole purpose of providing reasonable vehicular ingress and egress to the City
Farm Property for purposes of conducting agricultural operations on the City Farm Property; and,
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WHEREAS, Developer desires to obtain City’s permission to enter onto a portion of the City
Farm Property, on a temporary basis, to provide reasonable vehicular ingress and egress to and
from the San Luis Ranch Property for Project construction and for conducting agricultural
operations on the San Luis Ranch Property.
NOW THEREFORE, for good and valuable consideration, the receipt and sufficiency of which
is hereby acknowledged, the parties agree as follows:
1. Grant of License. Developer hereby grants to City, and City hereby accepts, a license to
enter upon that portion of the San Luis Ranch Property as shown as the Shared Farm Access
Easement on Lot 10 on the map of Tract 3096 recorded on ____________, 20____ in Book ______
of Maps, Pages ____ through ____, inclusive, in the office of the County Recorder of the County
of San Luis Obispo, State of California for the sole purpose of the City and Tenants’ reasonable
two-way vehicular ingress and egress to the City Farm Property for purposes of conducting
agricultural operations on the City Farm Property; in exchange, City hereby grants Developer, and
Developer hereby accepts, a license to enter upon that portion of the City Farm Property as
described on Exhibit “C” and depicted on Exhibit “D” for reasonable one-way ingress only to
facilitate construction mobilization and mass grading operations on the Project site and reasonable
two-way vehicular ingress and egress for purposes of conducting agricultural operations on the
San Luis Ranch Property (collectively the “Access Road”).
2. Use of Access Road. City, for itself and its Tenants, hereby acknowledges that their use of
the Access Road is limited to the City’s and Tenants’ officials, officers, employees, agents, and
contractors solely for purposes of conducting agricultural operations on the City Farm Property.
The Access Road shall not be used by the City, the Tenants or any other persons in connection
with any educational, marketing or similar events on the City Farm Property. City and Developer
agree to work cooperatively to restrict access to the Access Road to the parties identified in this
Agreement, and to prevent third party encroachments on the Access Road. In addition to any
requirements or mitigation measures for the Project, Developer agrees to take reasonable steps to
limit construction traffic on the Access Road to speeds of no more than 10 miles per hour.
Developer shall post signage along the Access Road and will instruct all contractors and delivery
companies of this limitation.
3. Responsibility for Installation and Maintenance of Access Road. Developer shall, at its
sole cost and expense, design and install an all-weather surface along the entirety of the Access
Road prior to commencement of Project construction on the San Luis Ranch Property. During the
Project’s construction, Developer shall, at its sole cost and expense, maintain the Access Road in
good condition so that it is accessible in all weather and free of potholes, large cracks, or any other
material defects. Maintenance of the Access Road shall include the repair of all damage caused by
ordinary use, the occurrence of natural events and acts of God.
4. Responsibility for Repair of Other Damage to Access Road. Each party shall be solely
responsible for the cost of repair of any damage to the Access Road which is caused by that party
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or that party’s tenants, contractors, agents, guests, licensees, or invitees and which is above and
beyond normal wear and tear occasioned by ordinary use.
5. Indemnification.
a. City agrees to indemnify, protect, and hold harmless Developer, and its successors in
interest from and against any and all claims, liabilities, costs, expenses, damages,
and/or injuries and death, including, but not limited to attorney’s fees and costs, arising
out of or related to the City’s and/or Tenants’ use of the Access Road and entry onto
San Luis Ranch Property; provided, howe ver, that City’s duty to indemnify, protect
and hold harmless shall not include any claims or liability arising from the negligence
or willful misconduct of the Developer, its agents, guests or invitees. The obligations
set forth in this paragraph shall survive termination of this Agreement.
b. Developer agrees to indemnify, protect, and hold harmless City, and its Tenants,
officials, officers, employees, agents, guests and invitees from and against any and all
claims, liabilities, costs, expenses, damages, and/or injuries and death, including, but
not limited to attorney’s fees and costs, arising out of or related to Developers’ use of
the Access Road and entry onto City Farm Property; provided, however, that
Developer’s duty to indemnify, protect and hold harmless shall not include any claims
or liability arising from the negligence or willful misconduct of the City, its Tenants,
officials, officers, employees, agents, guests or invitees. The obligations set forth in
this paragraph shall survive termination of this Agreement.
6. Insurance.
a. During the term of this Agreement, City shall maintain commercial general liability
insurance covering liability for personal injury, d eath or property damage in the
minimum amount of $1,000,000 per occurrence. Developer shall be named as an
additional insured under said policy for the term of this Agreement. Developer
acknowledges that City’s general liability insurance is through CalJPIA, a pooled
insurance provider.
b. During the term of this Agreement, Developer shall maintain commercial general
liability insurance covering liability for personal injury, death or property damage in
the minimum amount of $1,000,000 per occurrence. City shall be named as an
additional insured under said policy for the term of this Agreement.
During the term of this Agreement, Developer shall maintain Automobile Liability
Insurance for bodily injury and property damage with limits of liability of not less than
$1,000,000 each accident. Developer shall require each contractor or subcontractor
who uses the Access Road for Project construction purposes to maintain similar
insurance coverage with the same minimum limits.
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c. Upon reasonable request, City and Developer shall provide one another with proof of
insurance as required herein.
7. Term. This Agreement shall commence on the Effective Date and shall remain in full force
and effect until the Project construction on the San Luis Ranch Property is complete or use of the
Access Road is no longer necessary to access t he San Luis Ranch Property for Project construction
purposes as evidenced by Developer’s delivery to City of a written “Notice of Termination of
License Agreement,” at which time this Agreement shall automatically terminate and be replaced
by the Permanent Access Easement executed between City and Developer and recorded
concurrently herewith in the Official Records of San Luis Obispo County, California.
8. Termination. If City or Developer default in the performance of any terms or provisions of
this Agreement, and if the non-defaulting party gives the defaulting party written notice of such
default, and if the defaulting party fails to cure such default within thirty (30) days after receipt of
such notice, or if the default is of such a character as to require more than thirty (30) days to cure,
and then, if the defaulting party fails to use reasonable diligence in curing such default, then either:
a. The non-defaulting party may cure such default for the account of and at the cost and
expense of the defaulting party, and the reasonable sums so expended by the non-
defaulting party shall be payable by the defaulting party on demand; or
b. The non-defaulting party may elect to terminate this Agreement by written notice
directed to the defaulting party, and the defaulting party’s rights under this Agreement
shall be immediately terminated. Such termination however shall have no force or
effect as to the rights of the non-defaulting party under this Agreement.
9. Termination Due to Abandonment. Commencing six (6) months after the Effective Date,
this Agreement shall automatically terminate should Developer fail to maintain any building
and/or grading permits for any Project improvements for any twelve (12) consecutive month
period, provided City provides thirty (30) days written notice to Developer of such failure , and
Developer fails to obtain or renew such permit during said thirty (30) day period following notice.
10. Not a Real Property Interest. It is expressly understood that this Agreement does not in any
way grant or convey any permanent easement, lease, fee or other interests.
11. Not a Perpetual Easement. It is expressly understood that this Agreement does not in any
way grant or convey a perpetual easement.
12. Binding on Successors. This Agreement shall be binding upon each of the undersigned
parties and their successors in interest until terminated as herein provided.
13. Amendment. This Agreement may only be modified by an instrument in writing signed by
all of parties and recorded in the office of the County Recorder of the County of San Luis Obispo,
California.
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14. Governing Law. This Agreement shall be governed in all respects by the laws of the State
of California. In any action or pr oceeding connected with this Agreement, the parties consent to
the jurisdiction and venue of the Superior Court of the State of California, County of San Luis
Obispo, California.
15. Judicial Reference. Pursuant to Code of Civil Procedure Section 638, et seq., all legal actions
regarding this agreement shall be heard by a referee who shall be a retired judge from either the San
Luis Obispo County Superior Court, the California Court of Appeal, the United States District Court
or the United States Court of Appeals, provided that the selected referee shall have experience in
resolving land use and real property disputes. Developer and City shall agree upon a single referee
who shall then try all issues, whether of fact or law, and report a finding and judgment thereon and
issue all legal and equitable relief appropriate under the circumstances of the controversy before such
referee. If the parties are unable to agree on a referee within ten (10) days of a written request to do
so by either Party hereto, either Party may seek to have one appointed pursuant to Code of Civil
Procedure Section 640. The cost of such proceeding shall initially be borne equally b etween the
parties involved in the dispute. Any referee selected pursuant to this Section 15 shall be considered
a temporary judge appointed pursuant to Article 6, Section 21 of the California Constitution.
Notwithstanding the provisions of this Section 14, any Party shall be entitled to seek declaratory and
injunctive relief in any court of competent jurisdiction to enforce the terms of this Agreement, or to
enjoin another party from an asserted breach thereof, pending the selection of a referee as provided in
this Section 15, on a showing that the moving party would otherwise suffer irreparable harm. Upon
the mutual agreement by the parties involved in the dispute, any legal action shall be first be submitted
to mediation in accordance with rules to be mutually agreed upon by the parties.
16. Attorney’s Fees. Should any of the parties be required to engage counsel for the purposes of
enforcing or preventing the breach of any provision hereof, including, but not limited to, by
instituting any action or referenced proceeding to enforce any provis ion hereof, for damages by
reason of any alleged breach of any provision hereof, for a declaration of such party’s rights and
obligations with reference to the provisions hereof, by defending any action or proceeding
instituted in violation hereof, or for seeking any other judicial or referenced remedy, then if said
matter is settled by judicial or referenced determination, the prevailing party shall be entitled, in
addition to such other relief as may be granted, to be reimbursed by the losing party for reasonable
attorneys’ fees and costs actually incurred by the prevailing party.
17. Authorization. The parties to this Agreement represent to each other that each has the full
right and authority to enter into this Agreement.
18. Counterparts. This Agreement may be executed in one or more counterparts each of which
shall be an original, and will become effective and binding upon the parties at such time as all the
signatories hereto have signed the counterpart of this Agreement.
19. Notices. All notices, demands and requests required or desired to be given under this
Agreement must be in writing and shall be deemed to have been given as of the date such writing
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is (i) delivered to the party intended, (ii) delivered to the then current address of the party intended,
or (iii) rejected at the then current address of the party intended, provided such writing was sent
prepaid. The initial address of the signatories hereto is:
If to City: Michael Codron
Community Development Department
919 Palm Street
San Luis Obispo, CA 93401
With Copy to: J. Christine Dietrick
City Attorney
990 Palm Street
San Luis Obispo, CA 93401
If to Developer: Gary Grossman
MI San Luis Ranch, LLC
c/o Coastal Community Builders, Inc.
330 James Way, Suite 270
Pismo Beach, CA 93449
With Copy to: Steven Spierer
Spierer|Woodward|Corbalis|Goldberg
707 Torrance Boulevard, Suite 200
Redondo Beach, CA 90277-3400
Following ten (10) days’ prior written notice, each party shall have the right to change its address
to any other address.
IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed as of
the Effective Date.
[Signatures on following page.]
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CITY:
CITY OF SAN LUIS OBISPO
_____________________________
Heidi Harmon, Mayor
APPROVED AS TO FORM:
_____________________________
Christine Dietrick, City Attorney
DEVELOPER:
MI SAN LUIS RANCH, LLC,
a Delaware limited liability company
By: MI Entitlements IV, LLC
A Delaware limited liability company
Its: Manager
By: Presidio Merced Land IV Passive, LLC
A Delaware limited liability company
Its: Co-Manager
By: ____________________________
Michael M. Sullivan
Its Authorized Representative
By: GGCCB, LLC
A California limited liability company
Its: Co-Manager
By: _____________________________
Gary Grossman
Its Managing Member
[ACKNOWLEDGEMENTS ATTACHED.]
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EXHIBIT “C” ACCESS EASEMENT CITY FARM PROPERTY ALL OF THAT REAL PROPERTY SITUATE IN THE CITY OF SAN LUIS OBISPO, COUNTY OF SAN LUIS OBISPO, STATE OF CALIFORNIA DESCRIBED AS FOLLOWS: A PORTION OF LOT 5 AS SAID LOT IS SHOWN ON PARCEL MAP SLO 04-0615 RECORDED NOVEMBER 8, 2006 IN BOOK 67 OF PARCEL MAPS AT PAGES 68 THROUGH 70, INCLUSIVE, IN THE OFFICE OF THE CLERK-RECORDER OF SAID COUNTY OF SAN LUIS OBISPO, SAID
PORTION BEING MORE PARTICULARLY DESCRIBED AS FOLLOWS:
BEGINNING AT THE NORTHEASTERLY CORNER OF SAID LOT 5 AT A POINT ON THE
WESTERLY RIGHT OF WAY OF U.S. HIGHWAY 101, SAID CORNER BEING THE
SOUTHEASTERLY CORNER OF THAT PROPERTY SHOWN ON THE RECORD OF SURVEY
RECORDED JUNE 3, 1998 IN BOOK 76 OF LICENSED SURVEYS AT PAGE 89 IN SAID
RECORDER’S OFFICE, THENCE ALONG THE EASTERLY LINE OF SAID LOT 5, BEING THE
WESTERLY RIGHT OF WAY LINE OF SAID U.S. HIGHWAY 101 SOUTH 27° 46’ 24” WEST 387.30
FEET TO A POINT ON THE NORTHERLY RIGHT OF WAY LINE OF CALLE JOAQUIN, AS SAID
PUBLIC ROAD IS SHOWN ON THE HEREINABOVE DESCRIBED PARCEL MAP;
THENCE ALONG THE LINE COMMON TO SAID LOT 5 AND SAID CALLE JOAQUIN RIGHT OF
WAY NORTH 62° 13’ 36” WEST 40.00 FEET;
THENCE LEAVING SAID COMMON LINE NORTH 34° 28’ 59” EAST 85.59 FEET TO A POINT ON A
LINE 30.00 FEET WESTERLY OF, AND PARALLEL WITH THE EASTERLY LINE OF SAID LOT 5;
THENCE ALONG A LINE 30.00 FEET WESTERLY OF, AND PARALLEL WITH THE EASTERLY
LINE OF SAID LOT 5 NORTH 27° 46’ 24” EAST 306.42 FEET TO A POINT ON THE LINE COMMON
TO SAID LOT 5 AND THAT PROPERTY SHOWN ON SAID RECORD OF SURVEY;
THENCE ALONG SAID COMMON LINE SOUTH 54° 24’ 53” EAST 30.28 FEET TO THE POINT OF
BEGINNING AND TERMINUS OF THIS DESCRIPTION, CONTAINING 12,106 SQUARE FEET,
MORE OR LESS.
END OF DESCRIPTION.
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EXHIBIT D
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REMINDER TO ATTACH CITY FARM SIGNED CONSENT
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RECORDING REQUESTED BY AND
WHEN RECORDED RETURN TO:
City of San Luis Obispo
Attn: City Clerk
990 Palm Street
San Luis Obispo, CA 93401
APN’S: (San Luis Ranch Property) 067-121-022 Space Above This Line for Recorder's Use
(City Farm Property) 053-152-006; 007; 008 and 009
NO RECORDING FEE – PUBLIC AGENCY – Government Code § 6103
PERMANENT ACCESS EASEMENT
This PERMANENT ACCESS EASEMENT (“Easement”) is made and entered this ______ day
of ___________, 2018 (“Effective Date”) by and between the City of San Luis Obispo, a municipal
corporation and charter city (“City”), and MI San Luis Ranch, LLC, a Delaware limited liability
company (“Developer”).
WHEREAS, Developer is the owner of that certain real property located at 1035 Madonna Road,
San Luis Obispo, California, APN: 067-121-022 (the “San Luis Ranch Property”) as more
particularly depicted in Exhibit “A” attached hereto and incorporated herein by this reference ;
WHEREAS, Developer has obtained various entitlements from City, including, but not limited
to, a Specific Plan, Development Plan, and Vesting Tentative Tract Map to develop up to 580
residential units and approximately 250,000 square feet of commercial development on the San
Luis Ranch Property as more particularly set forth in City Resolution No. 10822 ; 2017 Series (the
“Project”);
WHEREAS, City is the owner of certain real property located off Calle Joaquin, San Luis Obispo,
commonly referred to as the “City Farm,” Assessor Parcel Nos. 053-152-006; 007; 008; and 009
(the “City Farm Property”) and more particularly depicted in Exhibit “B”;
WHEREAS, the City Farm Property is, and will hereafter be subject to leases and subleases, in
favor of tenants and subtenants whom are hereby collectively referred herein as “Tenants”;
WHEREAS, City desires to obtain Developer’s permission for City and Tenants to enter onto a
portion of the San Luis Ranch Property for purposes of reasonable vehicular ingress and egress to
and from the City Farm Property for purposes of conducting agricultural operations at the City
Farm Property; and
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WHEREAS, Developer desires to obtain City’s permission to enter onto a portion of the City
Farm Property, for purposes of reasonable vehicular ingress and egress to and from the San Luis
Ranch Property for purposes of conducting agricultural operations at the San Luis Ranch Property.
NOW THEREFORE, for good and valuable consideration, the receipt and sufficiency of which
is hereby acknowledged, the parties agree as follows:
1. Grant of Easement. Developer hereby grants to City, and City hereby accepts, an Easement,
in perpetuity, to enter upon that portion of the San Luis Ranch Property as shown as the Shared
Farm Access Easement on Lot 10 on the map of Tract 3096 recorded on ____________, 20____
in Book ______ of Maps, Pages ____ through ____, inclusive, in the office of the County Recorder
of the County of San Luis Obispo, State of California for the sole purpose of the City and Tenants’
reasonable two-way vehicular ingress and egress to the City Farm Property for purposes of
conducting agricultural operations on the City Farm Property; in exchange, the City hereby grants
Developer, and Developer hereby accepts, an Easement, in perpetuity, to enter upon that portion
of the City Farm Property as described on Exhibit “C” and depicted on Exhibit “D” for the sole
purpose of reasonable two-way vehicular ingress and egress to the San Luis Ranch Property for
purposes of conducting agricultural operations on the San Luis Ranch Property (collectively the
“Access Road).
2. Commencement of Easement. This Easement shall commence upon the termination of the
Temporary Access License (“Temporary License Agreement”) executed between City and
Developer and recorded concurrently herewith in the Official Records of San Luis Obispo County,
California. Notwithstanding the foregoing, if the Developer’s rights under the Temporary License
Agreement are terminated pursuant to Sections 8 or 9 of the Temporary License Agreement, the
Parties agree that this Easement shall be deemed null and void ab initio, and be of no further force
or effect.
3. Term and Termination of Easement. Upon commencement of t his Easement pursuant to
Section 2 above, this Easement shall be an easement in perpetuity for the benefit of the City Farm
Property and the San Luis Ranch Property, and their respective tenants, successors and assigns.
The Easement may be terminated by written unanimous consent of the Parties, and/or their
respective successors and or assigns, and shall terminate upon recordation of an instrument
incorporating such unanimous consent and the termination of the Easement in the Official Records
of San Luis Obispo County. The rights of either party under this Easement may also be terminated
for a material breach of the terms of this Easement provided the non-defaulting party gives the
defaulting party written notice of such default, and : (i) if the defaulting party fails to cure such
default within thirty (30) days after receipt of such notice; or , (ii) if the default is of such a character
as to require more than thirty (30) days to cure, and then, if the defaulting party fails to use
reasonable diligence in curing such default, then either:
a. The non-defaulting party may cure such default for the account of and at the cost and
expense of the defaulting party, and the reasonable sums so expended by the non-
defaulting party shall be payable by the defaulting party on demand; or
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b. The non-defaulting party may elect to terminate the defaulting party’s rights under this
Easement by written notice directed to the defaulting party, and the defaulting party’s
rights under this Easement shall be immediately terminated. Such termination however
shall have no force or effect as to the rights of the non-defaulting party under this
Easement.
4. Use of Access Road. Developer and City hereby acknowledge that their use of the Access
Road is limited to ingress and egress for purposes of conducting agricultural operations on their
respective properties and only by the respective parties’ officers, officials, employees, contractors,
Tenants, guests, invitees and agents. For purposes of this Easement, the term “agricultural
operations” when referring to the San Luis Ranch Property shall be limited to the various
agriculture uses within in the San Luis Ranch Specific Plan. The Access Road shall not be used
by the City, Tenants or any other persons in connection with any educational, marketing or similar
events on the City Farm Property. All parties agree to work cooperatively to restrict access to the
Access Road to the parties identified in this Easement, and to prevent third party encroachments
on the Access Road.
5. Responsibility for Maintenance of Access Road. The Access Road shall be regularly
maintained with a functioning all-weather surface and in a condition free of potholes, large cracks,
or other material defects. Any maintenance work on the Access Road shall be done in a good and
professional manner and be performed by either the part ies themselves, their tenants, or by licensed
contractors. Except as otherwise herein provided, after the commencement of the Easement as
provided in Section 2 above, the cost and expense of maintaining and repairing the Access Road
shall be shared between the City and the Developer as follows:
a. City shall be financially responsible for twenty-five percent (25%) of the cost and
expense of maintaining and repairing the Access Road; and
b. Developer shall be financially responsible for seventy-five percent (75%) of the cost
and expense of maintaining and repairing the Access Road.
For purposes of this paragraph, repair of the Access Road includes the repair of all damages caused
by ordinary use, the occurrence of natural events, and acts of God. Subject to the foregoing,
Developer shall be responsible for ensuring that the Access Road is maintained in accordance with
this Easement. Prior to incurring any repair costs in excess of $1,000, Developer shall contact City
in order to determine if such work triggers the payment of prevailing wages and to obtain City’s
written consent, such consent shall not be unreasonably withheld. Neither party shall be
responsible for any labor costs for maintaining the Access Road if such work is performed by that
party, or their tenants or employees.
4. Responsibility for Repair of Other Damage to Access Road. Each party shall be solely
responsible for the cost of repair of any damage to the Access Road which is caused by that party
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or that party’s tenants, contractors, agents, guests, licensees, or invitees, and which is above and
beyond normal wear and tear occasioned by ordinary use.
5. Indemnification.
a. City agrees to indemnify, protect, and hold harmless Developer, and its successors
in interest from and against any and all claims, costs, expenses, damages, and/or
injuries and death, including, but not limited to attorney’s fees and costs, arising
out of or related to the City’s and/or Tenants’ use of the Access Road and entry
onto San Luis Ranch Property; provided, however, that City’s duty to indemnify,
protect and hold harmless shall not include any claims or liability arising from the
negligence or willful misconduct of the Developer, its agents, guests or invitees.
b. Developer agrees to indemnify, protect, and hold harmless City, and its Tenants,
officials, officers, employees, agents, guests and invitees from and against any and
all claims, costs, expenses, damages, and/or injuries and death, including, but not
limited to attorney’s fees and costs, arising out of or related to Developers’ use of
the Access Road and entry onto City Farm Property; provided, however, that
Developer’s duty to indemnify, protect and hold harmless shall not include any
claims or liability arising from the negligence or willful misconduct of the City,
and/or the Tenants, or their agents, guests or invitees.
6. Insurance.
a. During the term of this Easement, City shall maintain commercial general liability
insurance covering liability for personal injury, death or property damage in the
minimum amount of $1,000,000 per occurrence. Developer shall be named as an
additional insured under said policy for the term of this Easement. Developer
acknowledges that City’s general liability insurance is through CalJPIA, a pooled
insurance provider.
b. During the term of this Easement, Developer shall maintain commercial general
liability insurance covering liability for personal injury, death or property damage
in the minimum amount of $1,000,000 per occurrence. City shall be named as an
additional insured under said policy for the term of this Easement.
c. Upon reasonable request, City and Developer shall provide one another with proof
of insurance as required herein.
7. Effect of Easement. This Easement shall run with the San Luis Ranch Property and City
Farm Property and shall benefit and be binding upon their respective successor and assigns.
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8. Amendment. This Easement may only be changed by an instrument in writing signed by all
of parties and recorded in the office of the County Recorder of the County of San Luis Obispo,
California.
9. Governing Law. This Easement shall be governed in all respects by the laws of the State of
California. In any action or proceeding connected with this Easement, the parties consent to the
jurisdiction and venue of the Superior Court of the State of California, County of San Luis Obis po,
California.
10. Judicial Reference. Pursuant to Code of Civil Procedure Section 638, et seq., all legal actions
regarding this Easement shall be heard by a referee who shall be a retired judge from either the San
Luis Obispo County Superior Court, the California Court of Appeal, the United States District Court
or the United States Court of Appeals, provided that the selected referee shall have experience in
resolving land use and real property disputes. Developer and City shall agree upon a single referee
who shall then try all issues, whether of fact or law, and report a finding and judgment thereon and
issue all legal and equitable relief appropriate under the circumstances of the controversy before such
referee. If the parties are unable to agree on a referee within ten (10) days of a written request to do
so by either party hereto, either party may seek to have one appointed pursuant to Code of Civil
Procedure Section 640. The cost of such proceeding shall initially be borne equally by the Parties.
Any referee selected pursuant to this Section 10 shall be considered a temporary judge appointed
pursuant to Article 6, Section 21 of the California Constitution. Notwithstanding the provisions of
this Section 10, any party shall be entitled to seek declaratory and injunctive relief in any court of
competent jurisdiction to enforce the terms of this Easement, or to enjoin the other party from an
asserted breach thereof, pending the selection of a referee as provided in this Section 10, on a showing
that the moving party would otherwise suffer irreparable harm. Upon the mutual agreement by all
parties, any legal action shall be submitted to mediation in accordance with rules to be mutually agreed
upon by the parties.
11. Attorney’s Fees. Should any of the parties be required to engage counsel for the purposes of
enforcing or preventing the breach of any provision hereof, including, but not limited to, by
instituting any action or referenced proceeding to enforce any provision hereof, for damages by
reason of any alleged breach of any provision hereof, for a declaration of such party’s rights and
obligations with reference to the provisions hereof, by defending any action or proceeding
instituted in violation hereof, or for seeking any other judicial or referenced remedy, then if said
matter is settled by judicial or referenced determination, the prevailing party shall be entitled, in
addition to such other relief as may be granted, to be reimbursed by the losing party for reasonable
attorneys’ fees and costs actually incurred by the prevailing party.
12. Authorization. The parties to this Easement represent to each other that each has the full
right and authority to enter into this Easement.
13. Counterparts. This Easement may be executed in one or more counterparts each of which
shall be an original and will become effective and binding upon the parties at such time as all the
signatories hereto have signed the counterpart of the Easement.
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14. Notices. All notices, demands and requests required or desired to be given under this
Easement must be in writing and shall be deemed to have been given as of the date such writing is
(i) delivered to the party intended, (ii) delivered to the then current address of the party intended,
or (iii) rejected at the then current address of the party intended, provided such writing was sent
prepaid. The initial address of the signatories hereto is:
If to City: Michael Codron
Community Development Department
919 Palm Street
San Luis Obispo, CA 93401
With Copy to: J. Christine Dietrick
City Attorney
990 Palm Street
San Luis Obispo, CA 93401
If to Developer: Gary Grossman
MI San Luis Ranch, LLC
c/o Coastal Community Builders, Inc.
330 James Way, Suite 270
Pismo Beach CA 93449
With Copy to: Steven Spierer
Spierer|Woodward|Corbalis|Goldberg
707 Torrance Boulevard, Suite 200
Redondo Beach CA 90277-3400
Following ten (10) days’ prior written notice, each party shall have the right to change its address
to any other address.
[Signatures on following page.]
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IN WITNESS WHEREOF, the parties hereto have caused this Easement to be executed as of the
Effective Date.
CITY:
CITY OF SAN LUIS OBISPO
_____________________________
Heidi Harmon, Mayor
APPROVED AS TO FORM:
_____________________________
Christine Dietrick, City Attorney
DEVELOPER:
MI SAN LUIS RANCH, LLC,
a Delaware limited liability company
By: MI Entitlements IV, LLC
A Delaware limited liability company
Its: Manager
By: Presidio Merced Land IV Passive, LLC
A Delaware limited liability company
Its: Co-Manager
By: ____________________________
Michael M. Sullivan
Its Authorized Representative
By: GGCCB, LLC
A California limited liability company
Its: Co-Manager
By: _____________________________
Gary Grossman
Its Managing Member
[ACKNOWLEDGEMENTS ATTACHED.]
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EXHIBIT “C”
ACCESS EASEMENT
CITY FARM PROPERTY
ALL OF THAT REAL PROPERTY SITUATE IN THE CITY OF SAN LUIS OBISPO, COUNTY OF SAN
LUIS OBISPO, STATE OF CALIFORNIA DESCRIBED AS FOLLOWS:
A PORTION OF LOT 5 AS SAID LOT IS SHOWN ON PARCEL MAP SLO 04-0615 RECORDED
NOVEMBER 8, 2006 IN BOOK 67 OF PARCEL MAPS AT PAGES 68 THROUGH 70, INCLUSIVE, IN
THE OFFICE OF THE CLERK-RECORDER OF SAID COUNTY OF SAN LUIS OBISPO, SAID
PORTION BEING MORE PARTICULARLY DESCRIBED AS FOLLOWS:
BEGINNING AT THE NORTHEASTERLY CORNER OF SAID LOT 5 AT A POINT ON THE
WESTERLY RIGHT OF WAY OF U.S. HIGHWAY 101, SAID CORNER BEING THE
SOUTHEASTERLY CORNER OF THAT PROPERTY SHOWN ON THE RECORD OF SURVEY
RECORDED JUNE 3, 1998 IN BOOK 76 OF LICENSED SURVEYS AT PAGE 89 IN SAID
RECORDER’S OFFICE, THENCE ALONG THE EASTERLY LINE OF SAID LOT 5, BEING THE
WESTERLY RIGHT OF WAY LINE OF SAID U.S. HIGHWAY 101 SOUTH 27° 46’ 24” WEST 387.30
FEET TO A POINT ON THE NORTHERLY RIGHT OF WAY LINE OF CALLE JOAQUIN, AS SAID
PUBLIC ROAD IS SHOWN ON THE HEREINABOVE DESCRIBED PARCEL MAP;
THENCE ALONG THE LINE COMMON TO SAID LOT 5 AND SAID CALLE JOAQUIN RIGHT OF
WAY NORTH 62° 13’ 36” WEST 40.00 FEET;
THENCE LEAVING SAID COMMON LINE NORTH 34° 28’ 59” EAST 85.59 FEET TO A POINT ON A
LINE 30.00 FEET WESTERLY OF, AND PARALLEL WITH THE EASTERLY LINE OF SAID LOT 5;
THENCE ALONG A LINE 30.00 FEET WESTERLY OF, AND PARALLEL WITH THE EASTERLY
LINE OF SAID LOT 5 NORTH 27° 46’ 24” EAST 306.42 FEET TO A POINT ON THE LINE COMMON
TO SAID LOT 5 AND THAT PROPERTY SHOWN ON SAID RECORD OF SURVEY;
THENCE ALONG SAID COMMON LINE SOUTH 54° 24’ 53” EAST 30.28 FEET TO THE POINT OF
BEGINNING AND TERMINUS OF THIS DESCRIPTION, CONTAINING 12,106 SQUARE FEET,
MORE OR LESS.
END OF DESCRIPTION.
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REMINDER TO ATTACH CITY FARM SIGNED CONSENT
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RECORDING REQUESTED BY AND
WHEN RECORDED RETURN TO:
City of San Luis Obispo
Attn: City Clerk
990 Palm Street
San Luis Obispo, CA 93401
APN: 067-121-022 Space Above This Line for Recorder's Use
NO RECORDING FEE – PUBLIC AGENCY – Government Code § 6103
HISTORIC PRESERVATION EASEMENT
This Historic Preservation Easement (“Easement”) is made this _____ of __________ 2018, by
MI SAN LUIS RANCH, LLC, having an address at 330 James Way, Suite 270, Pismo Beach
California 93449 (“Landowner”), to the City of San Luis Obispo, having an address at 990 Palm
Street, San Luis Obispo, California 93401 (“Grantee”), for the purpose of forever conserving the
open space character of the subject property.
RECITALS
A. The Landowner is the sole owner in fee simple of the certain real property which
consists of approximately 2.70 acres of land located in San Luis Obispo County, California and
which property is described as the Agricultural Heritage and Learning Center in the San Luis Ranch
Specific Plan and legally described in Exhibit “A” (“Property”).
B. Because of their architectural, historic, and cultural character, the main Craftsman
style residence, the Main Barn, and the former Spectator Barn/Viewing Stand (collectively the
“Structures”) were identified as historically significant structures as documented in the San Luis
Ranch Final Environmental Impact Report (“FEIR”), incorporated herein by this reference.
C. Landowner and Grantee recognize the architectural, historic, and cultural values and
significance of the Structures, and have the common purpose of conserving and preserving the
aforesaid conservation and preservation values and significance of the Structures.
D. Landowner further intends, as the owner of the Structures, to convey to Grantee the
right to preserve and protect the architectural, historic, and cultural conservation values of the
Structures.
E. Grantee agrees by accepting this grant to honor the intentions of Landowner stated
herein and to preserve and protect the architectural, historic, and cultural conservation values of the
structures.
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GRANT OF HISTORIC PRESERVATION EASEMENT
NOW, THEREFORE, in consideration of the above and the mutual covenants, terms,
conditions, and restrictions contained herein, and pursuant to the laws of the State of California and
California Civil Code section 815 et. seq., Landowner hereby voluntarily grants and conveys to
Grantee a conservation easement over the Property of the nature, character and to the extent
hereinafter set forth (“Easement”) and Grantee accepts the Easement and agree to honor the
intentions of the Landowner to preserve and protect the Structures.
1. Purpose. It is the purpose of this Easement to protect the Structures located on the Property,
to honor and protect them and to assure that the Structures will be retained in their existing state,
and for their architectural, historic, and cultural conservation values, and to prevent any use of the
Property which would significantly impair or interfere with the architectural, historic, and cultural
conservation values of the Structures.
2. Landowner's Covenant to Maintain. Landowner agrees at all times to maintain the Structures
in the same structural condition and state of repair as existing on the Effective Date of this Easement.
Landowner's obligation to maintain shall require replacement, repair, and reconstruction by
Landowner whenever necessary to preserve the Structures in substantially the same structural
condition and state of repair as that existing on the Effective Date of this Easement. Subject to the
casualty provisions of this Easement, this obligation to maintain shall require replacement,
rebuilding, repair, and reconstruction of the Structures whenever necessary in accordance with The
Secretary of the Interior's Standards for Rehabilitation and Guidelines for Rehabilitating Historic
Buildings (36 C.F.R. § 67), as these may be amended from time to time (“Secretary’s Standards”).
3. Landowner’s Reservations:
3.1 Landowner’s Grading and Stockpiling Rights, and Restoration Obligations.
Notwithstanding any provision of this Easement to the contrary, the Landowner specifically reserves
the limited right to perform grading and soil stockpiling at and upon the Property for purposes of
performing and completing the construction of the project on the Landowner’s adjacent real property
in accordance with the San Luis Ranch Specific Plan, which adjacent property is legally described
as the “Project” in Exhibit “B” and depicted in Exhibit “C” (“Project”). Upon the completion of the
Project’s construction, Landowner shall restore the Property to the condition it enjoyed prior to the
grading and any stockpiling activity. To the extent that Landowner fails to perform such restoration
within thirty (30) days following the completion of construction, or fails to commence such
restoration within said period and thereafter diligently pursue the same until completion, the Grantee
shall have the right to perform such restoration at Landowner’s expense, and Landowner shall
reimburse Grantee for the cost and expense of said restoration within fifteen (15) days following the
Grantee’s delivery of a written demand to Landowner for such reimbursement.
3.2 Allowed Uses. The Landowner retains the right to use the Property for the purposes included
within the approved San Luis Ranch Specific Plan, or to permit others to use the Property, in
accordance with applicable law and the terms of this Easement, without seeking approval or permission
of the Grantee. Further the Landowner reserves the right to engage in all acts and uses that are not
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expressly prohibited herein and are not inconsistent with the purpose of this Historic Preservation
Easement.
3.3 Additional Reserved Rights. The following rights, uses, and activities of, or by, Landowner
on, over, or under the Property are permitted by this Easement without further approval by Grantee:
(a) the right to engage in all those acts and uses that: (i) are permitted by governmental statute or
regulation, (ii) do not substantially impair the conservation and preservation values of the Property;
and (iii) are not inconsistent with the purpose of this Easement; (b) the right to maintain and repair
the Structures according to the Secretary's Standards. As used in this subparagraph, the right to
maintain and repair shall mean the use and application by Landowner of like-kind materials and
colors, applied with workmanship comparable to that which w ere used in the construction of the
Structures, for the purpose of retaining the appearance and construction of the Structures. The right
to maintain and repair as used in this subparagraph shall not include the right to make changes in
appearance, materials, colors, and workmanship from t hat existing prior to the maintenance and
repair without the prior approval of Grantee; and (c) the right to conduct at or on the Property
activities that are not inconsistent with the protection of the conservation and preservation values of
the Structures.
4. Prohibited Activities. The following acts are expressly forbidden on, over, or under the
Property, except as otherwise mentioned in this paragraph: (a) the Structures shall not be demolished,
removed, or razed except as otherwise allowed in this Agreement; (b) no other structures, excepting
those identified in, or provided under the approved Specific Plan shall be erected or placed on the
Property, except for temporary structures required for the maintenance or rehabilitation of the
Structures, or for the exercise of the Landlord’s reserved rights, such as construction trailers; (c) the
dumping of trash, rubbish, or any other unsightly or offensive materials on the Property; (d) the
subdivision of the Property (the Property shall not be devised or conveyed except as a unit); (e)
above-ground utility transmission lines, except for those reasonably necessary for serving the
existing Structures, and the existing utility easements of record.
5. Limitations on Landowner’s Responsibilities. Landowner shall not be responsible for the
actions of the Grantee or Grantee’s representatives at the Property.
6. Notice of Intention to Undertake Certain Permitted Actions. The purpose of requiring
Landowner to notify Grantee prior to undertaking certain permitted actions, is to afford Grantee an
opportunity to ensure that the action in question are designed and carr ied out in a manner consistent
with the purpose of this Easement. Whenever notice is required Landowner shall notify Grantee in
writing not less than thirty (30) days prior to the date Landowner intends to undertake the action in
question. The notice shall describe the nature, scope, design, location, timetable, and any other
material aspect of the proposed action in sufficient detail to permit Grantee to make an informed
judgment as to the action’s consistency with the purpose of this Easement.
7. Grantee’s Approval. Where Grantee’s approval is required, Grantee shall grant or withhold
its approval in writing within thirty (30) days following Grantee’s receipt of Landowner’s written
request. Grantee’s approval may be withheld only upon a reasonable determination by Grantee that
the action as proposed would be inconsistent with the purpose of this Easement. Should no written
response by the Grantee be provided to Landowner within the thirty (30) day period, Grantee shall
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be deemed to have approved the proposed action, and Landowner may proceed with the action, but
Grantee’s approval rights as to any future action are not waived.
8. Standards for Review. When exercising any authority created by the Easement: to inspect
the Structures; to review any construction, alteration, repair, or maintenance; or, to review casualty
damage or to reconstruct or approve reconstruction of the Structures following casualty damage,
Grantee shall apply the Secretary's Standards.
9. Grantee’s Remedies. If Grantee determine that Landowner is in violation of the terms of this
Easement or that a violation is threatened, Grantee shall give written notice to Landowner of such
violation and demand corrective action sufficient to cure the violation and, where the violation
involves injury to the Structures resulting from any use or activity inconsistent with the purpose of
this Easement, to restore the portion of the Structures so injured. If Landowner fails to cure the
violation within 30 (thirty) days after the receipt of notice, or under circumstances where the
violation cannot reasonably be cured within a 30 (thirty) day period and Landowner fails to begin
curing the violation within the 30 day period, or fails to continue diligent efforts to cure such
violation until finally cured, Grantee may bring an action at law or in equity in a court of competent
jurisdiction to enforce the terms of this Easement, to enjoin the violation, ex parte if necessary, by
temporary or permanent injunction, to recover any damages to which it may be entitled for violation
of the terms of this Easement, including damages for loss of architectural, historic, and cultural
conservation values, and to require the restoration of the Structures to the condition that existed prior
to any such injury. Without limiting Landowner’s liability therefor, Grantee, in its sole discretion,
may apply any damages recovered to the c ost of Landowner undertaking any corrective action on
the Structures. If Grantee, in its sole discretion, determines that circumstances require immediate
action to prevent or mitigate significant damage to the architectural, historic, and cultural
conservation values of the Structures. Grantee may pursue its remedies under this paragraph without
prior notice to Landowner or without waiting for the period provided for cure to expire. Grantee ’s
rights under this paragraph apply equally in the event of either actual or threatened violations of the
terms of this Easement. Landowner agrees that since the architectural, historic, and cultural
conservation values of the Structures are of inestimable value and some may be intangible, that
remedies at law for any violation of the terms of their Easement may be inadequate and that Grantee
shall be entitle to the injunctive relief described in this paragraph, both prohibitive and manda tory,
in addition to such other relief to which Grantee may be entitled, including specific performance of
the terms of this Easement, without the necessity of proving either actual damages or the inadequacy
of otherwise available legal remedies. Grantee’s responsibility to monitor and conserve the
architectural, historic, and cultural conservation values of the Structures are hereby recognized as
being unique and the fact that some of these values are intangible is understood, and thus the
necessity of proving the pertinent architectural, historic, and cultural conservation values of the
Structures will not be required in pursuing Grantee’s remedies under this Easement. Grantee’s
remedies described in this paragraph shall be cumulative and shall be in addit ion to all remedies now
or hereafter existing at law or in equity.
10. Grantee’s Discretion. Enforcement of the terms of this Easement shall be at the discretion
of Grantee, and any forbearance by Grantees in exercis ing its rights under this Easement shall not
be deemed or construed to be a waiver by Grantee of such term or of any subsequent breach of the
same or any other term of this Easement or of any of Grantee’s rights under this Easement. No delay
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or omission by Grantee in the exercise of any right or remedy upon any breach by Landowner shall
impair such right or remedy, or be construed as a waiver.
11. Casualty Damage or Destruction. In the event that the Structures or any part thereof shall
be damaged or destroyed by fire, flood, windstorm, earth movement, or other casualty, Landowner
shall notify Grantee in writing within fourteen (14) days of the damage or destruction, such
notification including what, if any, emergency work has already been completed. No repairs or
reconstruction of any type, other than temporary emergency work to p revent further damage to the
Structures and to protect public safety, shall be undertaken by Landowner without Grantee's prior
written approval. Within ninety (90) days of the date of damage or destruction, if required by
Grantee, Landowner at its expense shall submit to the Grantee a written report prepared by a
qualified restoration architect and an engineer who are acceptable to Landowner and Grantee, which
report shall include the following: (a) an assessment of the nature and extent of the damage; (b) a
determination of the feasibility of the restoration of the Structures and/or reconstruction of damaged
or destroyed portions of the Structures; and (c) a report of the restoration/reconstruction work
necessary to return the Structures to the condition existing at Effective Date.
12. Acts Beyond Landowner’s Control. Nothing contained in this Easement shall be construed
to entitle Grantee to any claim, or to bring any action against Landowner for any injury to or change
in the Structures resulting from causes beyond Landowner’s control, including, without limitation,
fire, flood, storm, and earth movement, or from any action taken by Landowner under emergency
conditions to prevent abate, or mitigate significant injury to the Structures resulting from such
causes.
13. No Public Access. No right of access by the general public to the Structures, or any portion
of the Structures, is conveyed by this Easement.
14. Costs and Liabilities. Landowner retains all responsibilities and shall bear all costs and
liabilities of any kind related to the ownership, operation, upkeep, and maintenance of the Structures,
including the maintenance of adequate comprehensive general liability insurance coverage.
Landowner shall keep the Property free of liens arising out of any work performed for, materials
furnished to, or obligations incurred by Landowner.
15. Taxes. Landowner shall pay before delinquency all taxes, assessments, fees and charges of
whatever description levied on or assessed against the Property by competent authority (collectively
“taxes”), including any taxes imposed upon, or incurred as a result of this Easement, and shall furnish
Grantee with satisfactory evidence of payment, upon request. It is intended that this Easement
constitutes an enforceable restriction within the meaning of Article XIII, section 8 of the California
Constitution and that this Easement qualifies as an enforceable restriction under the provisions of
California Revenue and Taxation Code section 402.1 or successor statute.
16. Hold Harmless and Indemnification. Landowner hereby agrees to pay, protect, indemnify,
hold harmless and defend at its own cost and expense, Grantee, its agents, directors and employees,
or independent contractors from and against any and all claims, liabilities, expenses, costs, damages,
losses, and expenditures (including reasonable attorneys' fees and disbursements hereafter incurred)
arising out of or in connection with injury to or death of any person, physical damage to the Property;
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the presence or release in, on, or about the Property, at any time, of any substance now or hereafter
defined, listed, or otherwise classified pursuant to any law, ordinance, or regulation as a hazardous,
toxic, polluting, or contaminating substance; or other injury or other damage occurring on or about
the Property, unless such injury or damage is caused by Grantee or any agent, trustee, employee, or
contractor of Grantee.
17. Insurance. Landowner shall keep the Property insured by an insurance company rated "B+"
or better by Best's for the full replacement value against loss from the perils commonly insured under
standard fire and extended coverage policies and comprehensive general liability insu rance against
claims for personal injury, death, and property damage. Property damage insurance shall include
change in condition and building ordinance coverage, in form and amount sufficient to replace fully
the damaged Structures without cost or expense to Landowner or contribution or coinsurance from
Landowner. Such insurance shall include Grantee's interest and name Grantee as an additional
insured. Landowner shall deliver to Grantee, within ten (10) business days of Grantee's written
request therefor, certificates of such insurance coverage. Provided, however, that whenever the
Property is encumbered with a mortgage or deed of trust, nothing contained in this paragraph shall
jeopardize the prior claim, if any, of the mortgagee/lender to the insurance p roceeds.
18. Extinguishment. If circumstances arise in the future such as render the purpose of this
Easement impossible to accomplish, this Easement can only be terminated or extinguished, whether
in whole or in part, by judicial proceedings in a court of competent jurisdiction. The amount of the
proceeds to which Grantee shall be entitled, after the satisfaction of prior claims, from any sale,
exchange, or involuntary conversion of all or any portion of the Property subsequent to such
termination or extinguishment, shall be determined, unless otherwise provided for by California law
at the time, to be the amount equal to the difference between the current fair market value of the
Property as if unencumbered by this Easement and the current fair market value of the Property
encumbered by this Easement, each as determined on or about the date of termination. The values
shall be determined by an appraisal performed by an appraiser jointly selected by the Landowner
and the Grantee. The Landowner shall pay the cost of the appraisal. Nothing herein shall prevent
the Landowner or the Grantee from having an additional appraisal prepared at its own expense .
Grantee shall use all such proceeds in a manner consistent with the architectural, historic, and
cultural conservation purposes of this grant.
19. Proceeds. This Easement constitutes a real property interest immediately vested in Grantee,
which the parties stipulate to have a fair market value determined by a written narrative appraisal of
the Easement’s fair market value, and the Property’s fair market value at the time of this grant. The
ratio of the value of the Easement at the time of this grant to the value of the Property, without
deduction for the value of the Easement, at the time of this grant. shall be de emed to remain constant.
The appraised fair market values at the time of this grant shall be the values used to calculate the
deduction for federal income tax purposes allowable by reason of this grant, pursuant to section
170(h) of the Internal Revenue Code of 1954, as amended.
20. Condemnation. If the Easement is taken, in whole or in part, by exercise of the power of
eminent domain, Grantee shall be entitled to compensation in accordance with applicable law.
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21. Amendment. If circumstances arise under which an amendment to or modification of this
Easement would be appropriate, Landowner and Grantee are free to jointly amend this Easement;
provided that no amendment shall be allowed that will affect the qualification of this Easement or
the status of the Grantee under applicable laws, and any amendm ent shall be consistent with the
purpose of this Easement, shall include reference to the significant architectural, historic, and
cultural conservation values and be consistent with protecting those values. Any such amendment
shall be recorded in the official records of the County of San Luis Obispo, California.
22. Assignment. This Easement is transferable, but Grantee may assign its rights and obligations
under this Easement only to an organization that is a qualified organization at the time of transfer,
under section 170(h) of the Internal Revenue Code of 1954, as amended, and the applicable
regulations promulgated thereunder, and authorized to acquire and hold cultural conserv ation
easement under sections 815 et. seq. of the California Civil Code, or successor provision. Grantee
shall require that the cultural conservation purposes that this grant is intended to advance, will
continue to be carried out by any assignee. Grantee shall also notify Landowner in writing, and in
advance of any assignment, but the right of assignment shall not be abridged by Landowner.
23. Subsequent Transfers. Landowner agrees to reference the terms of this Easement in any deed
or other legal instrument by which they dives t themselves of any interest in the Property, including
without limitation, a leasehold interest. Landowner further agrees to give written notice to the
Grantee of the transfer of any such interest at least sixty (60) days prior to the date of such transfer.
24. Estoppel Certificates. Upon request by Landowner , Grantee shall within thirty (30) days
execute and deliver to Landowner any document, including an estoppel certificate, which certifies
Landowner’s compliance with any obligation of Landowner contained in this Easement and
otherwise evidences the status of this Easement as may be requested by Landowner.
25. Notices. Any notices to the Landowner and the Grantee required by this Easement shall be
in writing and shall be personally delivered or sent by First-Class Mail to the following addresses,
unless a party has been notified by the other of a change of address:
If to Grantee: Michael Codron
Community Development Department
919 Palm Street
San Luis Obispo, CA 93401
With Copy to: J. Christine Dietrick
City Attorney
990 Palm Street
San Luis Obispo, CA 93401
If to Landowner : Gary Grossman
MI San Luis Ranch, LLC
c/o Coastal Community Builders, Inc.
330 James Way, Suite 270
Pismo Beach, CA 93449
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With Copy to: Steven Spierer
Spierer|Woodward|Corbalis|Goldberg
707 Torrance Boulevard, Suite 200
Redondo Beach, CA 90277-3400
or to such other address as either party from time to time shall designate by written notic e to the
other.
26. Recordation. Grantee shall record this instrument in timely fashion in the official records of the
County of San Luis Obispo, California, and may re-record it at any time as may be required to
preserve rights in the Easement.
27. Executory Limitation. If Grantee shall cease to exist or cease to qualify or to be authorized
to acquire and hold conservation easements under California Civil Code 815 et. seq. and a prior
assignment is not made pursuant to paragraph 22, or refuse such rights and obligations, then the
rights and obligations under this Easement shall vest in such organization as a court of competent
jurisdiction shall direct pursuant to California law and with due regard to the requiremen t for an
assignment pursuant to paragraph 22, especially to the unique and significant character of the
architectural, historic, and cultural conservation values involved. Landowner may request relief from
the court, in an action under this paragraph to void the Easement if Grantee or its assignees cease to
be a qualified organization or refuse their rights and obligations under this Easement.
28. Controlling Law. The interpretation and performance of this Easement shall be governed by
the laws of the State of California.
29. Liberal Construction. Any general rule of construction to the contrary notwithstanding, this
Easement shall be liberally construed in favor of the grant to effect the purpose of this Easement and
the policy and purpose of California Civil Code Section 815 et. seq. If any provision in this
instrument is found to be ambiguous, an interpretation consistent with the purpose of this Easement
that would render the provision valid shall be favored over any interpretation that would render it
invalid.
30. Severability. If any provision of this Easement, or the application thereof to any person or
circumstance, is found to be invalid, the remainder of the provisions of this Easement, or the
application of such provision to persons or circumstances other than those as to which it is fou nd to
be invalid, as the case may be, shall not be affected thereby.
31. Entire Agreement. This instrument sets forth the entire agreement of the parties and
supersedes all prior discussions, negotiations, understandings, or agreements relating to the
Easement, all of which are merged herein. No alteration or variation of this instrument shall be valid
or binding unless contained in an amendment that complies with paragraph 21.
32. No Forfeiture. Nothing contained herein will result in a forfeiture or reversion of
Landowner’s title in any respect.
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33. Joint Obligation. The obligations imposed by this Easement upon Landowner (if multiple
Landowners) shall be joint and several.
34. Successors. The covenants, terms, conditions, and restrictions of this Easement shall be
binding upon, and inure to the benefit of, the parties h ereto and their respective personal
representatives, heirs, successors, and assigns
35. Termination of Rights and Obligations. A party’s rights and obligations under this Easement
terminate upon transfer of the party’s interest in the Easement or Property, except that liability for
acts or omissions occurring prior to the transfer shall survive transfer.
36. Captions. The captions in this instrument have been inserted solely for convenience of
reference and are not a part of this instrument and shall have no e ffect upon construction or
interpretation.
37. Counterparts. The parties may execute this instrument in two or more counterparts, which
shall, in the aggregate, be signed by both parties, each counterpart shall be deemed an original
instrument as against any party who has signed it. In the event of any disparity between the
counterparts produced, the recorded counterpart shall be controlling.
IN WITNESS WHEREOF Landowner and Grantee have set their hands on the day and year first
above written.
CITY:
CITY OF SAN LUIS OBISPO
_____________________________
Heidi Harmon, Mayor
APPROVED AS TO FORM:
_____________________________
Christine Dietrick, City Attorney
LANDOWNER:
MI SAN LUIS RANCH, LLC,
a Delaware limited liability company
By: MI Entitlements IV, LLC
A Delaware limited liability company
Its: Manager
By: Presidio Merced Land IV Passive, LLC
A Delaware limited liability company
Its: Co-Manager
By: ____________________________
Michael M. Sullivan
Its Authorized Representative
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By: GGCCB, LLC
A California limited liability company
Its: Co-Manager
By: _____________________________
Gary Grossman
Its Managing Member
[Notary Acknowledgments Attached.]
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EXHIBITS
Exhibit A (Property Legal Description)
Exhibit B (Project Legal Description)
Exhibit C (Project Depiction)
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EXHIBIT A
Property Legal Description
Lot 304 shown on the map of Tract 3096 recorded on ____________, 20____ in Book ______ of
Maps, Pages ____ through ____, inclusive, in the office of the County Recorder of the County of
San Luis Obispo, State of California.
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EXHIBIT B
Legal Description
A portion of Lot 64 and 65 of the Subdivision of the Rancho Canada de Los Osos and La Laguna, as filed in Book A,
at Page 83 and 84 of Maps, and Lot Land a portion of Lots K, M, and N of the Re-subdivision of Lots 58, 61, 62, 63,
64 and 65, per J. Stratton's Survey and Map of the Subdivisions of the Rancho Canada de Los Osos and La Laguna,
as filed in Book A, at Page 161 of Maps in the office of the Recorder of San Luis Obispo County, California, more
particularly described as follows:
Commencing at the most Northerly corner of Lot K (Corner "EE") as shown on said map filed in Book A, at Page 161
of Maps, being on the existing City Limit boundary of the City of San Luis Obispo at the Northern terminus of
course No. 62 of the "Los Osos Road No. 1 Annexation" as approved by Resolution No. 1728 of the legislative body
of said City, and being on the Southeasterly line of Madonna Road right-of-way, known formerly as French Road;
Thence, leaving said Road, along the Southwesterly line of Lot J as shown on said map filed in Book A, at Page 161,
and along the existing City Limit boundary of said Los Osos Road No. 1 Annexation, South 45° 36' 38" East, 393.00
feet to the True Point of Beginning;
1.Thence, continue along the Southwesterly line of said Lot J, and along the existing City Limit boundary of
said Los Osos Road No. 1 Annexation, South 45° 36' 38" East, 1088.10 feet;
2.Thence, along the Southeasterly line of said Lot J, North 42° 52' 03" East, 145.28 feet;
3.Thence, along the Southwesterly line of Lot I as shown on said map filed in Book A, at Page 161 of Maps,
South 54° 08' 17" East, 558.56 feet to the Westerly boundary of the State Highway 101 right-of-way;
4.Thence, continue along the existing boundary of said Los Osos Road No. 1 Annexation, Southerly, and
along the Westerly boundary of State Highway 101 right-of-way on a curve that is concave to the West
from a radial bearing South 62 ° 47' 19" East, with a radius of 2420.00 feet, through a central angle of oo·
33' 58", an arc length of 23.91 feet;
5.Thence, continue along the Westerly boundary of State Highway 101 right-of-way, and along the existing
boundary of said Los Osos Road No. 1 Annexation, South 27° 46' 39" East, 2557.88 feet to the
Northeasterly boundary of Lot "EE" as designated according to said map filed in Book A, at Page 161 of
Maps;
6.Thence, leaving the Westerly boundary of State Highway 101 right-of-way, along the Northeasterly
boundary of said Lot EE, being the existing City Limit boundary of Annexation No. 71 as approved by
Resolution No. 2005-09 of the legislative body of said City, North 54° 25' 52" West, 1349. 74 feet;
7.Thence, continue along the Northeasterly boundary of said Lot "EE", and along the existing City Limit
boundary of said Annexation No. 71, North 53 ° 35' 32" West, 733.70 feet to the most Northerly corner of
said Lot EE, being the Northeast corner (corner "AE") of Lot Oas designated according to said map filed in
Book A, at Page 161 of Maps, and being the most Eastern corner of the existing City Limit boundary of the
"Lakewood Addition" as approved by Resolution No. 924 of the legislative body of said City;
8.Thence, along the Northeasterly line of said Lot 0, and along the existing City Limit boundary of said
"Lakewood Addition", North 35° 34' 51" West, 41.45 feet to the most Southern corner of Tract No. 169 as
filed in Book 6, at Page 45 of Maps in the office of the Recorder for said County, and the most Southern
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ANNEXATION NO. 42 PARCEL E-2
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THE BASIS IF BEARINGS FOR THIS MAP IS BETWEEN TWO CITY OF SAN LUIS
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AND IS MEASURED AND CALCULATED TO BE s24·59'39"w 0
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DRAWN BY
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CA JOB NO.
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EXHIBIT C
Item 3
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Page 1
San Luis Ranch – Well Monitoring Agreement
(11-08-2018)
WELL MONITORING ACCESS LICENSE
RECITAL
MI SAN LUIS RANCH, LLC, a Delaware limited liability company (“San Luis Ranch”),being
the owner of the real property in the County of San Luis Obispo as described on attached Exhibit
“A” (“Property”), hereby grants a license (“License”) to the City of San Luis Obispo, a municipal
corporation and charter city in the State of California (“City”), and its agents, contractors,
consultants (“Consultants”) to enter on to the Property for the sole purpose of monitoring the
existing groundwater wells depicted on attached Exhibit “B ” (“Wells”), upon the terms and
conditions herein set forth.
AGREEMENT
1. This License shall allow the City the right of ingress to and egress from the Property
as such access is reasonably necessary for the City to monitor the Wells.
2. The Wells are the sole property of San Luis Ranch.
3. The City shall exercise reasonable care to avoid any damage to the Property and/or
the Wells, and the City shall at its expense, perform any repair and/or restoration work that may
be required as a result of any damage caused by the City’s access to the Property and Wells, or
the monitoring of the Wells pursuant to this License. All work and activities performed under this
License shall comply with all applicable City, County, State and Federal laws, regulations,
ordinances and rules (collectively the “Applicable Laws”).
4. If San Luis Ranch requires relocation of any of the Wells or drill an additional well,
San Luis Ranch shall have the sole authority to determine the location of the new well. As a
courtesy to the City, San Luis Ranch shall provide plans for the installation of any new well to the
City, but the City shall have no responsibility for payment of any of the costs associated with the
relocation or the new well. Any such new wells shall be deemed one of the Wells subject to this
agreement.
5. The City and any Consultants shall at all times follow any and all of San Luis
Ranch’s rules and requirements to assure that their exercise of this License presents minimal
impacts on San Luis Ranch’s use, enjoyment, and development of the Property. At all times prior
to the City and/or its Consultants entering the Property for purposes of taking samples from the
Wells the City shall provide San Luis Ranch with not less than five (5) days prior written notice.
6. All monitoring of the Wells shall be performed on days other than weekends or
holidays and shall be performed between the hours of 9:00 a.m. and 5:00 p.m.
7. San Luis Ranch shall have the right to be provided with all Well sampling and
monitoring data obtained by City. The City shall provide copies of all such data and test results
Item 3
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Page 2
San Luis Ranch – Well Monitoring Agreement
(11-08-2018)
within seven (7) days following the receipt of San Luis Ranch’s writte n request for the same, at
no cost to San Luis Ranch.
8. This right of access under this License does not include any right in favor of the
City to store equipment, materials, supplies, or any personal property whatsoever at the Property.
All such actions are expressly prohibited under this License.
9. Prior to entering onto the Property under this License: (i) City shall provide to San
Luis Ranch a certificate establishing that the City and any Consultant is insured with commercial
general liability insurance in the amount of at not less than Two Million Dollars ($1,000,000.00)
aggregate limit, naming San Luis Ranch as an additional insured and with cross-liability
endorsement. Such insurance shall be primary and not contr ibutory.
10. The City shall indemnify, hold harmless and defend San Luis Ranch from and
against any claims, damages, mechanic’s liens, and costs and expenses, including attorney’s fees
and court costs, arising out of any injury, death or damage to any person or property resulting from
the City or its Consultants entry onto the Property and performing any activity under the terms of
this License.
11. Any notice, consent or approval required or permitted to be given under this
License shall be in writing and shall be deemed to have been given upon receipt. Notices shall be
addressed as follows unless a party has been notified by the other of a change of address:
If to City:
Michael Codron
Community Development Department
919 Palm Street
San Luis Obispo, CA 93401
With Copy to:
J. Christine Dietrick
City Attorney
990 Palm Street
San Luis Obispo, CA 93401
If to MI San Luis Ranch, LLC :
Gary Grossman
MI San Luis Ranch, LLC
c/o Coastal Community Builders, Inc.
330 James Way, Suite 270
Pismo Beach, CA 93449
Item 3
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Page 3
San Luis Ranch – Well Monitoring Agreement
(11-08-2018)
With Copy to:
Steven Spierer
Spierer|Woodward|Corbalis|Goldberg
707 Torrance Boulevard, Suite 200
Redondo Beach, CA 90277-3400
12. This License constitutes the entire agreement between the parties and supersedes
all prior negotiations and understandings between the parties relating to the Wells.
13. San Luis Ranch reserves the right to terminate this License upon: (i) Ninety (90)
days advance writte n notice without cause: (ii) and upon Thirty (30) days advance written notice
with cause.
IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the ____th
____________, 2018.
CITY:
CITY OF SAN LUIS OBISPO
_____________________________
Heidi Harmon, Mayor
APPROVED AS TO FORM:
_____________________________
Christine Dietrick, City Attorney
SAN LUIS RANCH:
MI SAN LUIS RANCH, LLC,
a Delaware limited liability company
By: MI Entitlements IV, LLC
A Delaware limited liability company
Its: Manager
By: Presidio Merced Land IV Passive, LLC
A Delaware limited liability company
Its: Co-Manager
By: ____________________________
Michael M. Sullivan
Its Authorized Representative
Item 3
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Page 4
San Luis Ranch – Well Monitoring Agreement
(11-08-2018)
By: GGCCB, LLC
A California limited liability company
Its: Co-Manager
By: _____________________________
Gary Grossman
Its Managing Member
[ACKNOWLEDGEMENTS ATTACHED.]
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Page 5
San Luis Ranch – Well Monitoring Agreement
(11-08-2018)
EXHIBITS
Exhibit A (Property Legal Description)
Exhibit B (Monitoring Wells Depiction)
Item 3
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Page 6
San Luis Ranch – Well Monitoring Agreement
(11-08-2018)
EXHIBIT A
Property Legal Description
Lot 9, Lot 10, Lot 308, and Lot 309 shown on the map of Tract 3096 recorded on ____________,
20____ in Book ______ of Maps, Pages ____ through ____, inclusive, in the office of the County
Recorder of the County of San Luis Obispo, State of California .
Item 3
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1050 Southwood DriveSan Luis Obispo, CA 93401P 805.544.7407 F 805.544.3863EXHIBIT BItem 3
Packet Pg. 118
Page 1
San Luis Ranch – Restrictive Covenant Affecting Real Property (No Build Zone)
(10-26-2018)
RECORDING REQUESTED BY AND
WHEN RECORDED RETURN TO:
RECORDING REQUESTED BY AND
WHEN RECORDED RETURN TO:
City of San Luis Obispo
Attn: City Clerk
990 Palm Street
San Luis Obispo, CA 93401
PRTN FRMR APN: 067-121-022 No fee pursuant to Government Code § 6103
No Documentary Transfer Tax per R&T Code § 11922
No Recording Fee per Government Code § 27383
RESTRICTIVE COVENANT
AFFECTING REAL PROPERTY
(No Build Zone)
THIS RESTRICTIVE COVENANT AFFECTING REAL PROPERTY (“Restrictive Covenant”)
is made this ____ day of ________________, 20____ by MI SAN LUIS RANCH, LLC, a
Delaware limited liability company (“Owner”), as follows:
RECITALS
WHEREAS, Owner is the record owner of that certain real property (“Real Property”)
located in the City of San Luis Obispo, State of California, described as:
Lot 7 shown on the map of Tract 3096 recorded on ____________, 20____ in Book ______
of Maps, Pages ____ through ____, inclusive, in the office of the County Recorder of the
County of San Luis Obispo, State of California;
Lot 8 shown on the map of Tract 3096 recorded on ____________, 20____ in Book ______
of Maps, Pages ____ through ____, inclusive, in the office of the County Recorder of the
County of San Luis Obispo, State of California; and
Lot 10 shown on the map of Tract 3096 recorded on ____________, 20____ in Book
______ of Maps, Pages ____ through ____, inclusive, in the office of the County Recorder
of the County of San Luis Obispo, State of California; and
Lot 303 shown on the map of Tract 3096 recorded on ____________, 20____ in Book
______ of Maps, Pages ____ through ____, inclusive, in the office of the County Recorder
of the County of San Luis Obispo, State of California; and
Item 3
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Page 2
San Luis Ranch – Restrictive Covenant Affecting Real Property (No Build Zone)
(10-26-2018)
Lot 309 shown on the map of Tract 3096 recorded on ____________, 20____ in Book
______ of Maps, Pages ____ through ____, inclusive, in the office of the County Recorder
of the County of San Luis Obispo, State of California.
WHEREAS, The County of San Luis Obispo operates the San Luis Obispo County Regional
Airport; and
WHEREAS, Owner makes this Restrictive Covenant to establish a no build zone (“No Build
Zone”) over that portion of the Real Property as more particularly described in Exhibit A attached
hereto and incorporated herein and as depicted on the map of Tract 3096 incorporated herein by
this reference as though set forth in full, consistent with Condition 9 of the Conditions that the San
Luis Obispo County Airport Land Use Commission placed on its consistency determination on
April 19, 2017 and which provides as follows:
The Updated Amendments and Conditions of Approval shall provide for a 200-foot by
1,200-foot “no build” zone within the S-1b Safety Area that shall remain free of structures
except for infrastructure associated with any future planned highway interchange with
Highway 101. The “no build” zone may be used for parking areas with no lighting or
landscaping that exceeds 8 feet in height. All drive aisles in the “no build zone” will be
parallel with the centerline of the airport runway.
NOW, THEREFORE, that the Real Property shall be held, sold, leased, mortgaged,
encumbered, rented, used, occupied, improved and conveyed subject to the following Restrictive
Covenant, which shall run with the Real Property and be binding on all parties having or acquiring
right, title or interest in or to the Real Property or any party thereof, their heirs, successors and
assigns.
RESTRICTIVE COVENANT
1. Scope of the No Build Zone. The No Build Zone shall remain free of structures except for
infrastructure associated with any future planned highway interchange with Highway 101. The No
Build Zone may be used for parking areas provided that such areas contain no lighting or
landscaping that exceeds 8 feet in height. All drive aisles in the No Build Zone shall be parallel
with the centerline of San Luis Obispo County Regional Airport Runway 7-29.
2. Enforcement. The City of San Luis Obispo and the County of San Luis Obispo shall have
the right, but not the obligation, to make a written demand to the Owner or any subsequent owner(s)
or lessor(s) of the Real Property (each a “Responsible Party”), or their designee, that required
maintenance or removal of any structures prohibited by this Restrictive Covenant be performed in
the No Build Zone. If a Responsible Party does not complete the required work within thirty (30)
days of such a demand, then the City of San Luis or the County of San Luis Obispo may if it
determines necessary, in its sole and absolute discretion, elect to maintain or remove any prohibited
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Page 3
San Luis Ranch – Restrictive Covenant Affecting Real Property (No Build Zone)
(10-26-2018)
structure, and each Responsible Party shall be joint and severally responsible for the costs of said
maintenance or removal.
3. Successors. The terms, covenants, and conditions of this Restrictive Covenant shall apply
to, and shall bind, the heirs, successors-in-interest, executors, administrators, assigns and
subcontractors of each Responsible Party.
4. Amendment. This Restrictive Covenant shall not be rescinded, revoked, modified or
otherwise changed or amended without the express written consent of the City of San Luis Obispo
after referral to the San Luis Obispo County Airport Land Use Commission.
5. Severability. In the event any term of this Restrictive Covenant is held invalid by a court
of competent jurisdiction, or subsequently enacted legislation, this Restrictive Covenant shall be
construed as not containing that term, and the remainder of this Restrictive Covenant shall remain
in full force and effect.
6. Captions. The captions of this Restrictive Covenant are for convenience only and are not
a part of this Restrictive Covenant and do not in any way limit or amplify the terms and provisions
of this Restrictive Covenant.
7. Entire Agreement. This Restrictive Covenant, including the exhibits attached hereto and
incorporated into this Restrictive Covenant by reference, constitutes the entire agreement with
respect to the subject matter hereof and supersedes all prior negotiations, oral and written.
8. Compliance with All Laws. The Owners agree that they shall comply with all laws
applicable to the work described in this Restrictive Covenant.
9. Waiver. Waiver of a breach or default under this Restrictive Covenant shall not constitute
a continuing waiver or a waiver of a subsequent breach of the same or any other provision of this
Restrictive Covenant.
10. Governing Law and Choice of Forum. This Restrictive Covenant shall be construed and
enforced in accordance with the laws of the State of California. Any suit, claim, or legal proceeding
of any kind related to this Restrictive Covenant shall be filed and heard in a court of competent
jurisdiction in the County of San Luis Obispo.
11. Authority to Enter into Restrictive Covenant. The individuals executing this Restrictive
Covenant represents and warrants that they have the right, power, legal capacity, and authority to
execute this Restrictive Covenant on behalf of the Owner.
12. Effective Date. The effective date of this Restrictive Covenant shall be the date this
covenant is recorded.
Item 3
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Page 4
San Luis Ranch – Restrictive Covenant Affecting Real Property (No Build Zone)
(10-26-2018)
IN WITNESS THEREOF Owner has executed this Restrictive Covenant the day and year first
written above.
OWNER:
MI SAN LUIS RANCH, LLC,
a Delaware limited liability company
By: MI Entitlements IV, LLC
A Delaware limited liability company
Its: Manager
By: Presidio Merced Land IV Passive, LLC
A Delaware limited liability company
Its: Co-Manager
By: ____________________________
Michael M. Sullivan
Its Authorized Representative
By: GGCCB, LLC
A California limited liability company
Its: Co-Manager
By: _____________________________
Gary Grossman
Its Managing Member
[NOTARY ACKNOWLEDGEMENTS ATTACHED.]
Item 3
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1050 Southwood DriveSan Luis Obispo, CA 93401P 805.544.7407 F 805.544.3863JOB#140310Item 3Packet Pg. 123
1050 Southwood DriveSan Luis Obispo, CA 93401P 805.544.7407 F 805.544.3863JOB#140310Item 3Packet Pg. 124
1050 Southwood DriveSan Luis Obispo, CA 93401P 805.544.7407 F 805.544.3863JOB#140310Item 3Packet Pg. 125
1050 Southwood DriveSan Luis Obispo, CA 93401P 805.544.7407 F 805.544.3863JOB#140310Item 3Packet Pg. 126
SEE SHEET 12SEE SHEET 9SEE SHEET 10SEE SHEET 6SEE SHEET 16SEE SHEET 71050 Southwood DriveSan Luis Obispo, CA 93401P 805.544.7407 F 805.544.3863JOB#140310TRACT 169SEE SHEET 6TRACT 169SEE SHEET 11Item 3Packet Pg. 127
SEE SHEET 5SEE SHEET 11SEE SHEET 15SEE SHEET 19SEE SHEET 81050 Southwood DriveSan Luis Obispo, CA 93401P 805.544.7407 F 805.544.3863JOB#140310Item 3Packet Pg. 128
SEE SHEET 81050 Southwood DriveSan Luis Obispo, CA 93401P 805.544.7407 F 805.544.3863JOB#140310Item 3Packet Pg. 129
SEE SHEET 7SEE SHEET 191050 Southwood DriveSan Luis Obispo, CA 93401P 805.544.7407 F 805.544.3863JOB#140310SEE SHEET 6Item 3Packet Pg. 130
SEE SHEET 5SEE SHEET 10SEE SHEET 13SEE SHEET 5SEE SHEET 121050 Southwood DriveSan Luis Obispo, CA 93401P 805.544.7407 F 805.544.3863JOB#140310Item 3Packet Pg. 131
SEE SHEET 5SEE SHEET 14SEE SHEET 9SEE SHEET 111050 Southwood DriveSan Luis Obispo, CA 93401P 805.544.7407 F 805.544.3863JOB#140310Item 3Packet Pg. 132
SEE SHEET 6SEE SHEET 6SEE SHEET 15SEE SHEET 5SEE SHEET 101050 Southwood DriveSan Luis Obispo, CA 93401P 805.544.7407 F 805.544.3863JOB#140310Item 3Packet Pg. 133
SEE SHEET 9SEE SHEET 5SEE SHEET 13SEE SHEET 161050 Southwood DriveSan Luis Obispo, CA 93401P 805.544.7407 F 805.544.3863JOB#140310Item 3Packet Pg. 134
SEE SHEET 9SEE SHEET 14SEE SHEET 171050 Southwood DriveSan Luis Obispo, CA 93401P 805.544.7407 F 805.544.3863JOB#140310SEE SHEET 9SEE SHEET 10SEE SHEET 12Item 3Packet Pg. 135
SEE SHEET 10SEE SHEET 13SEE SHEET 15SEE SHEET 18SEE SHEET 171050 Southwood DriveSan Luis Obispo, CA 93401P 805.544.7407 F 805.544.3863JOB#140310Item 3Packet Pg. 136
SEE SHEET 11SEE SHEET 14SEE SHEET 19SEE SHEET 61050 Southwood DriveSan Luis Obispo, CA 93401P 805.544.7407 F 805.544.3863JOB#140310SEE SHEET 14Item 3Packet Pg. 137
SEE SHEET 12SEE SHEET 7SEE SHEET 17SEE SHEET 51050 Southwood DriveSan Luis Obispo, CA 93401P 805.544.7407 F 805.544.3863JOB#140310SEE SHEET 7Item 3Packet Pg. 138
SEE SHEET 13SEE SHEET 16SEE SHEET 7SEE SHEET 181050 Southwood DriveSan Luis Obispo, CA 93401P 805.544.7407 F 805.544.3863JOB#140310Item 3Packet Pg. 139
SEE SHEET 14SEE SHEET 17SEE SHEET 7SEE SHEET 191050 Southwood DriveSan Luis Obispo, CA 93401P 805.544.7407 F 805.544.3863JOB#140310Item 3Packet Pg. 140
SEE SHEET 14SEE SHEET 18SEE SHEET 7SEE SHEET 6SEE SHEET 151050 Southwood DriveSan Luis Obispo, CA 93401P 805.544.7407 F 805.544.3863JOB#140310Item 3Packet Pg. 141
1050 Southwood DriveSan Luis Obispo, CA 93401P 805.544.7407 F 805.544.3863JOB#140310SEE BELOWSEE ABOVESEE SHEET 21SEE SHEET 16SEE SHEET 7SEE SHEET 17SEE SHEET 7SEE SHEET 17SEE SHEET 16Item 3Packet Pg. 142
1050 Southwood DriveSan Luis Obispo, CA 93401P 805.544.7407 F 805.544.3863JOB#140310SEE BELOWSEE ABOVESEE SHEET 20SEE SHEET 18SEE SHEET 19SEE SHEET 6SEE SHEET 8SEE SHEET 8SEE SHEET 6SEE SHEET 8Item 3Packet Pg. 143
1050 Southwood DriveSan Luis Obispo, CA 93401P 805.544.7407 F 805.544.3863JOB#140310Item 3Packet Pg. 144
1050 Southwood DriveSan Luis Obispo, CA 93401P 805.544.7407 F 805.544.3863JOB#140310Item 3Packet Pg. 145
1050 Southwood DriveSan Luis Obispo, CA 93401P 805.544.7407 F 805.544.3863JOB#140310Item 3Packet Pg. 146
1050 Southwood DriveSan Luis Obispo, CA 93401P 805.544.7407 F 805.544.3863JOB#140310Item 3Packet Pg. 147
1050 Southwood DriveSan Luis Obispo, CA 93401P 805.544.7407 F 805.544.3863JOB#140310Item 3Packet Pg. 148
1
SUBDIVISION AGREEMENT
THIS AGREEMENT is dated this ______ day of ___________201___ by and
between MI SAN LUIS RANCH, LLC, a Delaware limited liability company, herein referred
to as "Subdivider," and the CITY OF SAN LUIS OBISPO, herein referred to as the "City."
RECITALS
REFERENCE IS HEREBY MADE to that certain proposed subdivision of real
property in the City of San Luis Obispo, County of San Luis Obispo, State of California, a
description of which is shown on the Final Map of Tract 3096, City of San Luis Obispo,
California, as approved by the City Council on the ____ day of ___________, 201___.
The Subdivider desires that said Tract 3096 be accepted and approved as a Final
Map pursuant to the Subdivision Regulations of the City of San Luis Obispo (Title 16 of the
San Luis Obispo Municipal Code), and
It is a condition of said regulations that the Subdivider agree to install the
improvements as set forth on the plans therefore.
TERMS AND CONDITIONS:
In consideration of the foregoing, the Subdivider does hereby agree to construct
and install the following subdivision improvements in accordance with said subdivision
regulations, and in accordance with approved plans and specifications on file in the office
of the City Engineer, City of San Luis Obispo, to wit:
1. CURB, GUTTERS AND SIDEWALKS
2. STREET BASE AND SURFACING
3. WATER MAINS and SEWER MAINS, including sewer laterals to the property line
and water services to the curb stop.
4. LANDSCAPING
Item 3
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2
5. DRAINAGE STRUCTURES
6. STREET LIGHTS
7. ELECTRIC, GAS, TELEPHONE AND CABLE TELEVISION: In addition to the
inspection and approval of such facilities by the City, each public utility shall be
required to file a letter stating that the developer has properly installed all facilities to
be provided by him, and that the said utility is prepared to provide service to
residents upon request.
8. ANY & ALL OTHER IMPROVEMENTS shown on plans or required by project
approvals.
All of the above facilities shall be installed in the locations designated and to the plans and
specifications on file and approved by said City Engineer.
The lines and grades for all of said improvements shall be established by the
Subdivider in accordance with said approved plans and specifications.
The Subdivider agrees that the work of installing the above improvements shall
begin within thirty (30) days from the date of recording of the final map, and that the work
shall be completed within twelve (12) months of said recording date, unless an extension
has been granted by the City, provided that if completion of said work is delayed by acts of
God or labor disputes resulting in strike action, the Subdivider shall have an additional
period of time equivalent to such period of delay in which to complete such work. Any
extension of time hereunder shall not operate to release the surety on the Improvement
Security filed pursuant to this agreement. In this connection, the surety waives the
provisions of Section 2819 of the Civil Code of the State of California.
No building permits will be issued nor occupancy granted after the expiration date
of the agreement until completion and acceptance of all subdivision improvements unless
specifically approved by the City.
Item 3
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3
The Subdivider does also agree to comply with the conditions established by the
City Council and has paid the necessary fees as indicated on the attached Exhibits 1
and 2.
Setting of new survey monuments or resetting of disturbed monuments shall be in
accordance with Article 5, paragraph 8771 et seq., of the Professional Land Surveyors
Act, Chapter 15 of the Business and Professions Code of the State of California.
The Subdivider attaches hereto, as an integral part hereof, and as security for the
performance of this agreement, instrument(s) of credit or bond approved by and in favor of
the City of San Luis Obispo, and conditional upon the faithful performance of this
agreement. Said instrument(s) of credit or bond is/are in the amount(s) shown in Exhibit 2,
which is the amount of the estimated cost of said improvements.
Subdivider agrees to remedy any defects in the improvements arising from faulty
workmanship or materials or defective construction of said improvements occurring within
twelve (12) months after acceptance thereof. In accordance with Sections 66499.7 and
66499.9 of the Government Code of the State of California, upon final completion and
acceptance of the work, City will release all but 10% of the improvement security, that
amount being deemed sufficient to guarantee faithful performance by the Subdivider of his
obligation to remedy any defects in the improvements arising within a period of one year
following the completion and acceptance thereof.
Completion of the work shall be deemed to have occurred on the date which the
City Council shall, by resolution duly passed and adopted, accept said improvements
according to said plans and specifications, and any approved modifications thereto.
Neither periodic nor progress inspections or approvals shall bind the City to accept said
improvements or waive any defects in the same or any breach of this agreement.
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“AS-BUILT” record drawings are to be submitted within four weeks of completion of
construction and prior to City acceptance of the public improvements.
If the Subdivider fails to complete the work within the prescribed time, the
Subdivider agrees that City may, at its option, declare the instrument of credit or bond
which has been posted by Subdivider to guarantee faithful performance, forfeited and
utilize the proceeds to complete said improvements, or city may complete said
improvements and recover the full cost and expense thereof from the Subdivider or his
surety.
The Subdivider has deposited with the City a labor and materials surety or
sureties in the amount of 50% of the above described subdivision improvements in
accordance with State law.
Said Subdivider shall pay an inspection fee for City to inspect the installation of said
subdivision improvements, and to verify that they have been completed in accordance with
the plans and specifications.
If off-site dedication of property is necessary to facilitate the construction of the
required subdivision improvements, the Subdivider and City shall adhere to the
requirements of Section 6.03.1 of the Development Agreement adopted by the City
Council on August 21, 2018 by Ordinance No. 1649 (2018 Series) with regards to
acquiring said off-site dedication.
Title 16 of the San Luis Obispo Municipal Code, entitled "Subdivision," all plans and
specifications on file with said City Engineer as a part of said Subdivision Map, and all
other documents filed with the City by the Subdivider and approved by the City Engineer
are hereby referred to for further particulars in interpreting and defining the obligations of
the Subdivider under this agreement.
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Pursuant to Government Code Section 66474.9(b), the subdivider shall defend,
indemnify and hold harmless the City and/or its agents, officers and employees from any
claim, action or proceeding against the City and/or its agents, officers or employees to
attack, set aside, void or annul, the approval by the City of this subdivision, and all actions
relating thereto, including but not limited to environmental review (“Indemnified Claims”).
The City shall promptly notify the subdivider of any Indemnified Claim upon being
presented with the Indemnified Claim and City shall fully cooperate in the defense against
an Indemnified Claim.
It is understood and agreed by and between the Subdivider and the City hereto that
this agreement shall bind the heirs, executors, administrators, successors and assigns of
the respective Parties to this agreement.
It is agreed that the Subdivider will furnish copies of the successful bidder's contract
unit prices and total bid prices for all of the improvements herein referred to.
[signatures on following page]
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IN WITNESS WHEREOF, this agreement has been executed by:
SUBDIVIDER
MI SAN LUIS RANCH, LLC,
a Delaware limited liability company
By: MI Entitlements IV, LLC
a Delaware limited liability company
Its: Manager
By: Presidio Merced Land IV Passive, LLC
A Delaware limited liability company
Its: Co -Manager
By: ____________________________
Michael M. Sullivan
Its Authorized Representative
By: GGCCB, LLC
A California limited liability company
Its: Co -Manager
By: _____________________________
Gary Grossman
Its Managing Member
CITY OF SAN LUIS OBISPO
MAYOR Heidi Harmon
ATTEST:
CITY CLERK Teresa Purrington
APPROVED AS TO FORM:
CITY ATTORNEY Christine Dietrick
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EXHIBIT 1Error! Bookmark not defined.
TRACT 3096
SUBDIVISION AGREEMENT
1. The Subdivider has deposited a monumentation security in the amount of $45,500 to
guarantee the installation of survey monuments in accordance with the approved map and
payment for same. Said guarantee will be released once the installation of monuments has
been verified and that existing monuments have not been disturbed, and upon receipt by the
City of a letter from the Surveyor indicating that they have completed the work and have
been paid. Subdivider shall adhere to the requirements of California Business and
Professions Code Section 8771 with regards to monument preservation. The monumentation
security also guarantees the replacement of any monuments that were disturbed during
construction, along with filing of Records of Survey or Corner Records required by said
Section 8771.
2. Per Condition #37, Park In-Lieu Fees for the single-family lots shall be paid prior to map
recordation. Credit is available for park improvements that are being constructed with this
project that meet the criteria for eligibility in the City’s Municipal Code. Park in-lieu fees for
the units being constructed on the mu lti-family parcels can be deferred to building permit
issuance. Park In-Lieu fees shall be paid prior to map recordation for the 3.0-acre shortfall.
3. The $438,034 Fair Share Traffic Mitigation Fees (Various Improvements) for Items #2, 13
to 18, 22, and 23 in Table 3 of the San Luis Ranch Financing Plan Table 3 dated June 2018
shall be paid prior to map recordation.
4. The Fair Share Traffic Mitigation Fee (Bob Jones Trail) for Item #21 in Table 3 of the
San Luis Ranch Financing Plan dated June 2018 shall be pa id at building permits. The fee
amount shall be based on the Subdivider’s fair share of this improvement which is 16%
of the total estimated cost of the improvement.
5. The $9,800,000 Fair Share Traffic Mitigation Fees (Prado I nterchange) for Items #4
and 5 in Table 3 of the San Luis Ranch Financing Plan dated June 2018 shall be paid at
time of building permits per Condition #7 and per the schedule established in the Section
5.04.6 of the Development Agreement.
6. Water Impact Fees for irrigation water meters shown on the subdivision improvement plans
shall be paid prior to subdivision improvement plan approval per Condition #77.
7. Capacity Offset Fee for Wastewater is due prior to map recordation per Development
Agreement Section 7.08.
8. Water and sewer impact fees shall be paid at time of building permits per the fee schedule
in effect at time of building permits.
9. The Subdivider has elected to pay a roadway maintenance fee to satisfy Condition #62.
The fee of $_______ was approved by the City Engineer in accordance with City
Engineering Standards and guidelines.
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10. The Subdivider shall assume the financial obligation of the City for the construction and
widening of Froom Ranch Way per the Prefumo Creek Commons Covenant to Install
(Doc. #2010-030948) and shall cause the improvement to be completed.
11. The subdivider shall comply with all requirements of Council Resolution No. 10 822
(2017 Series) approving the tentative map, Council Resolution No. 10927 (2018 Series)
certifying the Final Supplemental Environmental Impact Report, and Ordinance No. 1649
(2018 Series) approving the Development Agreement.
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EXHIBIT 2
TRACT 3096 - FEE AND BOND LIST
1035 MADONNA ROAD
Amount Form Date Received Bond Release Status
Bonds and Guarantees:
On-Site Faithful Performance:
(See Exhibit 3 for graphical location)
Can be released upon City Council acceptance of improvements, deposit of one-year
warranty surety, and approval of record drawings.
1 Site Grading, Drainage, and Detention
(FMAP-0174-2017)
$xxxx xxx xxx
2 Froom Ranch Way (FMAP-0174-2017 $xxxx xxx xxx
3 Dalidio Drive and Madonna Road
(FMAP-0174-2017)
$xxxx xxx xxx
4 Single Family Residential Public
Improvements, Park, Landscaping, and
Creek Restoration (FMAP-0174-2017)
$xxxx xxx xxx
5 Long-Term Mitigation and Monitoring
of Creek Restoration & Butterfly/Heron
Habitat (FMAP-0174-2017)
$xxxx xxx xxx
6 Historical Building Restoration
(BLDG-XXXX-XXXX)
$xxxx xxx xxx
7 Ag Land Restoration
(FMAP-1054-2017)
$xxxx xxx xxx
Off-Site Faithful Performance: Can be released upon Public Works Director acceptance of improvements, deposit of
one-year warranty surety, and approval of record drawings.
8 24” Sewer Trunk Line & Laguna Lift
Station (FMAP-1619-2018)
$xxxx xxx xxx
9 Left-turn Lane at Madonna/101
(FMAP-1416-2018)
$xxxx xxx xxx
10 Right-turn Lane at LOVR/S. Higuera
(FMAP-1414-2018)
$xxxx xxx xxx
11 Madonna Bikeway Perierra to Oceanaire
and Madonna/Oceanaire Intersection
Improvements
(FMAP-1415-2018/FMAP-1919-2018)
$xxxx xxx xxx
12 LOVR/Froom Ranch Intersection
Improvements and Existing Froom
Ranch Widening (FMAP-1543-2018 and
FMAP-1758-2018)
$xxxx xxx xxx
13 LOVR/101 Ramp (Caltrans submittal) $xxxx xxx xxx
14 Madonna Bikeway El Mercado to 101
(FMAP-1617-2018)
$xxxx xxx xxx
15 Right-turn lane at Tank Farm/S. Higuera
(FMAP-????-????) (Avila Ranch)
$xxxx xxx xxx
Labor & Materials (50% of cost of each of
the above improvements)
$xxxx xxx xxx Can be released 90 days after
acceptance of improvements, if no
claims. (Civil Code Section 8412)
Monument Guarantee $45,500 CD or Letter
of Credit
xxx Can be released upon verification
that monuments have been set and
surveyor has been paid.
10% Warranty To be collected prior to release of Faithful
Performance Bonds
Can be released one-year after
acceptance of improvements, if no
defects, and approval of record
drawings.
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Fees:
Map Check Fee $61,287.81 Check 3/9/18
Improvement Plancheck Fee $xxxx xxx xxx
Construction Inspection Fee $xxxx xxx xxx
Roadway Maintenance Fee $xxx xxx xxx To be deposited in Acct #
40050300-90346953 Streets
Reconstruction and Resurfacing
Master per Matt Horn
Parkland In-Lieu Fee
for 3.0-acre shortfall
$xxxx xxx xxx
Park Improvement In-Lieu Fee
for 3.0- acre shortfall
$xxxx xxx xxx
Park In-Lieu Fees for single-family units $xxxx xxx xxx Credit available for park
improvements being constructed
that meet the eligibility criteria
Park In-Lieu Fees for multi-family units To be collected with building permit
Fair Share Traffic Mitigation Fee
(Various Improvements)
$438,034 xxx xxx
Fair Share Traffic Mitigation Fee
(Bob Jones trail)
To be collected with building permit
Fair Share Traffic Mitigation Fee
(Prado Interchange)
$9,800,000 To be collected with building
permit
Water Impact Fees for irrigation meters $xxxx xxx xxx
Capacity Offset Fee for Wastewater $xxxx xxx xxx
Affordable Housing Requirements See Affordable Housing Agreement
Water Impact Fee1 To be collected with building permit
Wastewater Impact Fee1 To be collected with building permit
Transportation Impact Fee1 To be collected with building permit
1 All Impact Fees are adjusted annually (July 1) based on CPI. Credit given for demolished units.
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Meeting Date: 11/27/2018
FROM: Deanna Cantrell, Chief of Police
Prepared By: Melissa Ellsworth, Senior Administrative Analyst
SUBJECT: PERMANENT PLACEMENT OF SECURITY CAMERAS IN MISSION
PLAZA, MITCHELL AND MEADOW PARKS
RECOMMENDATION
Approve a new capital improvement project to permanently place security cameras in Mission
Plaza, Meadow Park, and Mitchell Park.
DISCUSSION
Mission Plaza is the host location for numerous events throughout the year. Some of these events
can draw crowds into the thousands, creating a Public Safety need for video monitoring to protect
life and property. The Police Department currently utilizes ten camera systems in various locations
throughout the City. One of these systems is in a permanent mounting position covering the area of
the Mission Adobe and public bathrooms. This camera has proven valuable in the live monitoring
of events that occur on the west side of Mission Plaza and the dogleg area of Monterey and Broad
Street. A second mobile camera has been positioned periodically, when available, on the east end of
Mission Plaza. This vantage point provides some coverage but is obscured by trees in the plaza.
The placement of the cameras is critical to ensuring the various areas of the plaza are being covered
by the video system. Currently, there is not a suitable location inside the plaza to adequately
provide unobstructed views of the plaza, including the amphitheater. Currently, staff is working to
develop a plan to install two poles in the Mission Plaza to provide a suitable location to mount two
new permanent cameras. The poles are planned to be 15 to 20 feet tall to provide the necessary
sight lines and prevent tampering.
In addition to Mission Plaza, this project is planned to install one new camera at Meadow Park and
one new camera at Mitchell Park. Both parks have playground areas and restroom facilities, and
unfortunately both parks have experienced several problems due to adverse behavior in the area.
Once the plan is complete, staff will present the plan to the Parks and Recreation Commission
before implementation. All areas will have appropriate signage to notify the public of the cameras.
CONCURRENCES
The Public Works Director concurs with this request.
The Parks and Recreation Commission, will be advised of this enha ncement, consistent with its
role as the advisory body to Council on parks and recreation matters (the Plaza is considered a
park).
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ENVIRONMENTAL REVIEW
No environmental review is necessary for this request to create a Capital Improvement Project.
Once the design has been completed, and all impacts known, the appropriate environmental
review will be completed.
FISCAL IMPACT
The Police Department has received City Manager approval to use carry over funds from FY
2017-18 in the amount of $60,000 for this project. Police staff is working closely with Public
Works and the Information Technology Division to identify the needs for installation, cabling,
poles, and other associated costs. The costs to purchase four cameras is $32,100. The remaining
project funding will be used to complete the installation. An estimate of the installation cost is
not known at this time since the design has not been completed. It is anticipated that the
remaining project funding will be adequate to address this need, but if not, a funding plan will be
provided to the awarding authority prior to implementation.
ALTERNATIVE
Deny this request. Staff does not concur with this alternative; increasing security cameras in high
use public areas will enhance safety efforts. Permanently placing additional cameras with high
visibility signage in these areas may also deter illegal activity.
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Meeting Date: 11/27/2018
FROM: Greg Hermann, Interim Deputy City Manager
Prepared By: Ryan Betz, Interim Assistant to the City Manager
Brian Leveille, Senior Planner
SUBJECT: CURATION OF 842 PALM STREET PARKING STRUCTURE
ARCHAEOLOGICAL COLLECTION
RECOMMENDATION
Authorize t he City Manager to enter into a sole-source agreement with the San Luis Obispo
County Archaeological Society (SLOCAS), in the amount of $129,000 to curate and
permanently store the 842 Palm Street Parking Structure Archaeological Collection.
DISCUSSION
Background
In 1987, an archaeological excavation took place in downtown San Luis Obispo, as part of the
construction of a new downtown parking garage, located in the heart of the old 1870s
Chinatown. The excavation uncovered features and artifacts from Nat ive American occupation
(pre-contact and Mission period), and the Chinatown settlement of the late 19th and early 20th
Century. As part of the project’s mitigation, the artifacts were to be cataloged, prepared for
curation and reports developed on the materials with research potential. The City contracted
with separate consultants: Archaeological Resource Service and Parker and Associates, but both
were unsuccessful in delivering the required scope of work. In 2014, the City contract ed with
the Sonoma St ate University Anthropological Studies Center (ASC) to perform the needed
services. The work has now been completed, and the collection deemed to have long-term
research potential is ready to be transported to the SLOCAS facility for curation and permanent
storage.
Preparing for Curation
Over the past four years, ASC has organized, cataloged and prepared reports on various artifacts
from the collection. A final excavation report was completed in February 2016 which provides
feature descriptions and suggestions for future research opportunities. ASC has followed its
standard protocols to process and catalog the collection and has applied its Curation and Discard
(attachment A) policy which states certain types of materials may be discarded after they a re
analyzed based on lack of long-term research value/interpretive potential, excessive quantity, or
poor condition. Examples of these types of materials are window glass, bottle body fragments,
and metal scraps. The remaining collection for permanent storage and curation consists of 129
archived boxes, inclusive of 12 oversized boxes. Once the agreement (attachment B) with
SLOCAS is secured, these items will be transported from ASC to SLOCAS for curation and
permanent storage.
SLOCAS
SLOCAS functions to house and preserve historic-period and prehistoric archaeological
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materials primarily from the local San Luis Obispo County-Central Coast region. They are the
only local organization that stores archaeological collections for use by researchers and students
studying the archaeology of California’s Central Coast. Their facility, located at Camp San Luis
Obispo, meets federal regulations and guidelines for housing archaeological collections and is
open to City staff and SLOCAS Registered Researchers. They also maintain the SLO County
Archaeological Collection Index that lists all collections generated from SLO County/Central
Coast. The facility curates a variety of collections reflecting the diversity of local archaeological
work conducted over the past several decades including professional cultural resource
management projects, academic and public agency research studies, and volunteer endeavors. It
is for these reasons that staff is recommending a sole-source agreement with SLOCAS.
City’s Deed of Gift
As a part of the curation process, staff recommends that the Palm Street Parking Structure
Archaeological Collection be deeded by way of gift to SLOCAS, which is the common practice
when archiving occurs. If the City were to choose to retain ownership of the collection, fees
would shift to a recurring annual charge per box that would result in a substantially higher cost to
the City over the years. The agreement stipulates that in the event of dissolution of SLOCAS, the
City will be allowed to regain ownership of the collection should it choose to do so.
CONCURRENCES
The Community Development Department concurs with this recommendation.
ENVIRONMENTAL REVIEW
Curation of artifacts is associated with implementation of mitigation measures for the Mitigated
Negative Declaration for the 842 Palm Parking Structure. Actions associated with the
implementation of previously adopted mitigation measures is not subject to CEQA.
FISCAL IMPACT
The total cost for the permanent storage is projected to be $1 29,000 (attachment C) which will be
paid fully from the Parking Fund unreserved working capital which had a balance of
approximately $12M at 2017-18 fiscal year-end. Though this amount is projected to be used on
the Palm/Nipomo Parking Structure, there is sufficie nt remaining balance to cover this cost.
These curated items were discovered as a result of the 842 Palm Street Parking Structure
excavation work, so the cost is Parking Fund related. The Parking Fund had anticipated this
expenditure, but due to the long delay in completing the process, no amount had been budget ed
in the 2017-19 Financial Plan.
ALTERNATIVES
Deny staff’s recommendation. The City Council could deny staff’s recommendation to
approve a sole source agreement with SLOCAS to curate and permanently store the 842 Palm
Street Parking Structure archaeological collection. Staff does not recommend this alternative
because SLOCAS is the only qualified institution in the County that provides this service. In
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addition, sending the materials to another county would not be consistent with the archaeological
practice to store the materials in close proximity to where they were found and may not be a
feasible or economical option since many other facilities will also only accept artifacts found
within their own counties.
Attachments:
a - Exhibit B - SLOCAS-Curation-Policies-Dec-2010
b - City and SLOCAS Agreement
c - SLOCAS Fee Estimate
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Contact:SLOCAS Curation Committee
P.O. Box 109
San Luis Obispo, CA 93406
collectionsmanager@slocas.org
Hours:By Appointment Only
Web:www.slocas.org
Revised December 2010
SLOCAS reserves the right to update these policies and guidelines periodically.
Please contact SLOCAS to verify that you have the most current edition
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TABLE OF CONTENTS
INTRODUCTION ...........................................................................................................................1
NAGPRA COMPLIANCE ...............................................................................................................1
OWNERSHIP OF COLLECTIONS ................................................................................................2
OBTAINING A COLLECTION AGREEMENT AND ACCESSION NUMBER ................................ 2
PREPARATION OF COLLECTIONS ..................................................................................................... 2
Artifacts and Artifactual Materials ..............................................................................................2
Project Documents .......................................................................................................................4
Catalogue .....................................................................................................................................4
Analysis Files ................................................................................................................................4
SUBMITTING COLLECTIONS .............................................................................................................. 5
FEES ........................................................................................................................................................... 6
RESEARCH ............................................................................................................................................... 7
LIST OF FIGURES:
Figure 1. Example of Label ..........................................................................................................3
Figure 2. Example of Collection Archive Box with Storage Bins ...................................................5
Figure 3. Example of Box List .......................................................................................................6
ATTACHMENTS:
ATTACHMENT 1 – SLOCAS Research and Collections Facility Collections
Discard Policy ......................................................................................................................8
ATTACHMENT 2 -- NAGPRA Certification .............................................................................11
ATTACHMENT 3 -- SLOCAS Research and Collections Facility Collection Agreement ...........12
ATTACHMENT 4 – SLOCAS Research and Collections Facility Collection Submission
Checklist ............................................................................................................................13
ATTACHMENT 5 – SLOCAS Research and Collections Facility Fee Schedule .........................14
ATTACHMENT 6 -- SLOCAS Research and Collections Facility Researcher Registration .......15
ATTACHMENT 7 -- SLOCAS Research and Collections Facility Request for Access ................16
ATTACHMENT 8 -- SLOCAS Research and Collections Facility Loan Agreement ...................17
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1
INTRODUCTION
The San Luis Obispo County Archaeological Society Research and Collections Facility (the Facility) functions to
house and preserve historic-period and prehistoric archaeological materials primarily from the local San Luis
Obispo County-Central Coast region. The Facility requires that all collections meet the guidelines provided herein
prior to acceptance for curation.
The San Luis Obispo County Archaeological Society (SLOCAS) operates the Facility. SLOCAS, founded in
1971, is a non-profit, 501(c)(3) organization staffed exclusively by volunteer professionals and open by
appointment only. In addition to operating the only collections facility in the county, SLOCAS has a long history
of public service in the area, such as: educational programs, museum displays, adobe restoration, and periodic
publication of a high-quality series of reports and papers.
The Policies and Guidelines for the Curation of Archaeological Collections provide guidance for:
•obtaining a collection agreement and accession number from the Facility
•preparing collections for submittal to the Facility
•submitting collections to the Facility
•calculating fees for curation and research at the Facility
SLOCAS will not accept any materials that require a controlled environment; special care or equipment; or
conservation treatments, such as climate or humidity controls, insect-proof storage, or any chemical applications.
SLOCAS will not accept any collection that has been treated with pesticides or other potentially dangerous
chemicals.
Collections standards were designed for the permanent curation of materials and documents and to accommodate
future use of the collections by researchers. SLOCAS’ Discard Policy is attached (see Attachment 1).
The Facility will not accept collections that contain human remains, funerary objects, items that are known or
believed to be sacred, or materials that may be defined as items of cultural patrimony pursuant to Public Law 101-
601 and 43 CFR Part 10, the Native American Graves Protection and Repatriation Act (NAGPRA) (25 U.S.C. Sec.
3001 et seq.). Some examples of artifact types that are eligible for repatriation under NAGPRA, in addition to any
human remains, are: crystals, pipes and pipe fragments, certain beads, whistles, etc.
NAGPRA COMPLIANCE
It is the submitter’s responsibility to determine if a collection contains materials that are subject to NAGPRA.
Before a collection is accepted for curation, the submitter must complete a NAGPRA Certification (Attachment 2)
that outlines the efforts made to examine a collection for any materials that are subject to NAGPRA and must have
removed those items. If any materials subject to NAGPRA are identified during this certification process SLCOAS
will not accept the collection until all items have been removed. It is the responsibility of the submitter to
thoroughly reexamine the collection for NAGPRA subject items at the submitter’s expense. This certification will
become part of the collection’s permanent documentation.
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2
OWNERSHIP OF COLLECTIONS
Unless alternate arrangements are made, all collections will remain the legal property of the owner who presents
the collection to the Facility. The Facility will curate the collection in perpetuity, but ownership is not transferred
with the acceptance of the collection for curation.
OBTAINING A COLLECTION AGREEMENT AND ACCESSION NUMBER
The submitter must present to the Facility a written request for the permanent curation of archaeological
collections. Prior to or in conjunction with submittal of the collections, a signed collection agreement (Attachment
3) confirming that the submitter: has read and understood the curation policies and procedures; agrees to conform
to our standards and correct any deficiencies; consents to pay curation fees; and will provide a statement outlining
who retains ownership of the collection. In some instances this will be a Deed of Gift, which transfers ownership
of the collections to SLOCAS. In other instances, such as with Federal and State Agencies, a Memorandum of
Agreement will need to be created to outline the legal responsibilities for each entity.
An accession number will be assigned for each collection, based on the site number and the number of collections
already housed by the Facility for that particular site. For example, site CA-SLO-175 would be assigned the
accession number SLO175, the first collection from this site would be assigned SLO175-1, and the second
collection from this site would be assigned SLO175-2, and so on. The catalogue numbering for individual items
from the first collection from this site would begin with SLO175-1-1 and continue in numerical order (SLO175-1-
2, SLO175-1-3, etc.). Lots or groups of artifacts such as debitage or bone can be assigned a single catalogue
number per provenience.
Isolates are assigned a separate accession number on a project-by-project basis. Isolates will be assigned an
accession prefix (i.e., SLO-ISO-7-__). Isolates from a project would thus be catalogued and labeled as SLO-ISO-
7-1, SLO-ISO-7-2, etc.
Submitters will be sent or emailed a letter confirming the assigned accession number(s).
PREPARATION OF COLLECTIONS
SLOCAS requires that submitters prepare collections according to the guidelines set forth here. The Facility will
not accept any collections that do not meet our guidelines. If the collection is found to be deficient, it will be
returned to the submitter at their expense for remediation.
Each individual collection must have its own accession number and must also be identified by a State of California
Trinomial and/or Primary Number. Collection preparation is detailed below for the categories of collections:
artifacts and artifactual materials, project documents (including photographs), catalogues, and analysis files.
Artifacts and Artifactual Materials
Most materials, with the exception of fragile specimens or specimens containing residue of scientific interest, must
be cleaned. Materials should be cleaned for the accurate identification and analysis of the material.
Each artifact must be labeled, using only archivally stable materials, with the accession number followed by a
sequential catalogue number (e.g., SLO175-2-1, SLO175-2-2, SLO175-2-3, etc.). Artifacts should be labeled on
non-diagnostic surfaces. Whenever possible, permanent black ink should be used to write the accession and
catalogue number on artifacts. If white ink must be used, a clear permanent glaze (i.e., Magna Varnish) should be
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3
applied as a sealant. Do NOT use white-out as a base layer on dark items; it will deteriorate and flake off. In the
cases where labeling an artifact is not possible, the artifact must be packaged in archivally stable materials that are
permanently labeled.
All artifacts must be packaged in 4-mil polyethylene zip-lock bags (paper bags and sandwich zip-locks are not
acceptable). Oversized specimens (i.e., large milling slabs, etc.) which do not fit in the 12"x 18" bags must be
clearly labeled. If an artifact is too fragile or small to be labeled, then acid-free string tags must be labeled and
attached to the artifact.
All paper products must be acid-free for curation. An acid-free label designating the accession and catalogue
number, site trinomial, artifact provenience including depth, specimen description, and screen size should be
placed in each bag (see Figure 1). Labels can be handwritten with permanent ink, or computer generated with a
laser printer onto acid-free paper. Ink jet labels must be photocopied onto acid-free paper to insure permanence.
Fragile artifacts such as beads should be stored in glass or plastic vials and cushioned with archival-quality tissue
paper and/or polyethylene foam (e.g. Ethafoam). Do not use gelatin capsules for storage of any artifact type.
Figure 1. Example Label
Figure 1. Example of Label
Submittal of bulk samples such as unprocessed column samples and/or flotation samples, or redundant historic-
period materials (non-diagnostic glass, metal fragments, etc.) will NOT be accepted. Due to space limitations,
submitters are responsible for considering discarding materials that lack archaeological or historical significance
and/or research potential (see Attachment 1: Discard Policy).
There are several types of materials that the Facility will not accept in a collection. The following is a list of
prohibited packaging products:
•Laminated artifacts or documents
•Cotton floss or cotton balls
•Waxed paper
•Kleenex, toilet tissue, paper towels
•Polyvinyl chloride plastic
•Polyurethane plastic
•Saran wrap, grocery store plastic wrap, cellophane
•Bubble wrap, unless of archival quality
•Construction paper, newsprint
•Buffered paper products
•Shipping foam peanuts
•Cellophane (“Scotch”) tape
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Project Documents
Project documents include field notes, maps, laboratory notes, an artifact catalogue, and a final report. All project
documents must be submitted to the Facility in their native format (i.e. the program that they were originally
created in). If the catalogue was created in Microsoft Excel, please submit it in that format. Other formats, such as
Adobe Acrobat PDF will be accepted in addition to the original format. In addition, two bound hard copies of the
final site or project report must be submitted to the facility either at the time of initial delivery or as soon as the
report becomes available.
Photographs and/or slides with an appropriate photograph log are also required as part of the documents included
in a collection. Also, any paperwork that could be useful for future interpretation of the collection materials is
required. Field and laboratory notes must be photocopied onto archival quality paper. Plastic paper clips are
acceptable for organizing paper material, however, do not use staples or metal paper clips. A scale map displaying
all excavation units, trenches, survey areas, etc., must be submitted with the collection. Transit notes, compass
readings, and other mapping data should accompany the site map. Any additional project maps such as proposed
development plans are required as well.
Project photographs should be submitted in hardcopy form, with each photo placed in an archive quality sleeve.
Digital formats (jpg, bmp, tiff) will be accepted in addition to the hardcopies. A typed or hand-written (using soft
lead pencil or permanent archival ink) photograph log produced on acid-free, archive paper must accompany all
photographic material. Project photographs, whether they are slides, prints, or negatives, must be stored in archival
quality polyethylene envelopes. A soft lead pencil or permanent archival ink must be used to label the slides,
prints, or negatives with the accession and photo number; the photos must be cross-referenced to photograph log.
Catalogue
The collection catalogue must be submitted in two forms: as an unbound computer printout with catalogue entries
in numerical order; and as a database file on a compact disc (CD). Two (2) hard-copies of the catalogue printed on
acid-free archival paper are required. The Facility uses Microsoft Access, which is compatible with a wide array of
data programs, among them Dbase, Paradox, and Lotus. If abbreviations or codes are used within the catalogue, a
catalogue key must accompany the document preferably as a cover page. While it is up to the individual
archaeologist to select catalogue fields, it is important to establish and use some standard fields for the co-operative
use of collections held by the Facility. Required fields include ACC = Accession, CAT = Catalogue Number,
SITE, UNIT, LEVEL, FEAT = feature, MESH = screen size, DESCRIP = description, MTRL = material, OBJ =
object name, COUNT, WEIGHT, DIS = discard.
All catalogue numbers in a collection must be accounted for. If an item is initially assigned a catalogue number
and is then subsequently deleted or discarded from a collection, describe in as much detail as possible in the
catalogue fields that the materials were culled, destroyed through analysis, or for other reasons discarded and thus
are not included within the collection delivered to SLOCAS. If a catalogue number is otherwise not used, type
“unused number” in the Comments/Remarks field, leaving all other data fields empty for this entry. The last entry
or number used in a collection must be indicated as such on the catalogue.
Analysis Files
Copies of analysis data and\or special studies (i.e., debitage analysis, obsidian hydration and source analysis results,
and faunal analysis), whether hand-written, typed, or computerized, which were generated from the collection must
be submitted for curation. Documents must be submitted in the digital format in which they were created and
placed on to a a labeled CD. If possible, please submit a searchable Adobe Acrobat (PDF) version as well.
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SUBMITTING COLLECTIONS
Collections must be hand-delivered to the Facility. The submitter must contact SLOCAS at least two weeks prior
to the submittal date to make an appointment. Collection materials must be boxed in acid-free standard sized (15"
x 12" x 10") archive boxes with lids; use of storage trays which allow for organization of individual artifact bags is
required and should be of archival quality (Figure 2). While collections are generally catalogued by provenience,
artifactual materials can be boxed either in numerical order by catalogue number, or can be grouped in numerical
order by artifact class (projectile points, faunal bone, beads, etc). Organizing larger collections by artifact class is
advised as it will (1) make the materials easier to access by future researchers, and (2) protect the more fragile
items such as faunal remains which can be crushed if placed with heavier ground and flaked stone items. Archive
boxes must not weigh more than 40 pounds and must be labeled on the outside with the accession number, site
trinomial, and box number (Box 1 of 12, etc.). A box list that provides an inventory of materials within each box
must accompany the collection (see Figure 3). Upon receipt of a collection, a Collection Submission Checklist
(Attachment 4) will be filled out by SLOCAS staff and signed by the submitter.
Any oversized materials that cannot be placed in a standard archive box should be accounted for and noted on the
box inventory.
Figure 2. Example of Collection Archive Box with Storage Bins
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Figure 3. Example of Box List
FEES
Fees are based on a rate of $1,000.00 per cubic foot (= archive box) and include storage of paperwork and
oversized objects (see Attachment 5 - Fee Schedule). Fees for oversized items will be determined on a case by case
basis.
It is the submitter’s responsibility to adhere to the SLOCAS Policies and Guidelines for the Curation of
Archaeological Collections. SLOCAS will review collections within two weeks of delivery and will either accept
the collection “as is” and invoice the submitter, or SLOCAS will notify the submitter of any collection deficiencies
in writing. It is the submitter’s responsibility to make the required corrections. Furthermore, it is the submitter’s
responsibility to retrieve the collection from SLOCAS within two weeks of notification to make necessary
corrections. Should the submitter default on this responsibility, SLOCAS will return the collection to the submitter
and will charge a delivery fee to the submitter.
Access fees for contract archaeologists conducting research for paid archaeological investigations will be levied by
half-day access for $75 and full-day access for $100. If assistance is needed from a SLOCAS Collections
Volunteer, the Facility charges an additional fee of $40.00 an hour. All costs associated with providing research
materials (e.g., copies of reports, catalogues, etc.) will be charged $0.20 per page, or, if the materials are
outsourced for copying, the Facility charges the costs plus 30% to the requester.
User fees may be waived for individuals conducting scientific research for an educational institution or a non-profit
501(c)(3) organization whose educational goals are compatible to the purpose of this Facility. Researchers who fall
under this category will be assessed on a case by case basis to determine the applicability of any fees, and SLOCAS
will notify the researcher before access is granted.
Box No. Description Acc - Catalogue Number Comment
Box 1 Project Paperwork CD with Catalogue SLO175CT.dbf
Site Report
Box 2 Bifaces SLO175-2-5 -- 115
Fauna - Bone SLO175-2-7 -- 227
Box 3 Handstones SLO175-2-14 -- 99
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RESEARCH
The SLOCAS Research and Collections Facility is open to qualified people for research by appointment only. In
order to receive access, a researcher must complete a Researcher Registration form (Attachment 6). Once a
researcher has been approved, a Request for Access form (Attachment 7) will need to be filled out each time a
researcher would like access to the Facility.
Arrangements can be made for researchers who would like to borrow parts or all of a collection. In this case a
Loan Agreement (Attachment 8) needs to be completed between the Facility and the researcher.
Note:
This entire document, including the bibliography and attachments, was peer reviewed by the following:
David Larry Felton, Senior State Archaeologist, State Archaeological Collections Research Facility
Anmarie Medin, Archaeology Branch Chief, Cultural Studies Office, Caltrans Division of Environmental
Analysis
Adrian Praetzellis, Principal, Anthropological Studies Center, Sonoma State University
Cindy Stankowski, Director, San Diego Archaeological Center
Michael Glassow, Professor Emeritus, Department of Anthropology, UCSB
Judy Tordoff, California Historical Archaeologist
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-ATTACHMENT 1 -
SAN LUIS OBISPO COUNTY ARCHAEOLOGICAL SOCIETY
COLLECTIONS DISCARD POLICY*
The SLOCAS Discard Policy outlines the guidelines for the disposal of artifacts and artifactual materials
that have little to no future research value because the extent of the research potential for these objects
can be reasonably exhausted through cataloging and analysis. Submitters should review and apply this
discard policy to their collections prior to delivering them to the SLOCAS Research and Collections
Facility for permanent curation. Additional criteria may be developed and used by individual submitters.
However, all artifacts and artifactual materials removed from the collection must be documented
(catalogued and photographed) and recorded as “discarded” in the site catalogue.
Another option for discarding archaeological objects is to rebury them at the site of origin, duly noting
the content and location.
General criteria for discarding artifacts and artifactual materials:
•Items abandoned or destroyed by voluntary means such as scientific analysis
•Items that will rapidly deteriorate and are not maintainable
•Materials that are hazardous
•Very large or bulk items with limited research value
Discard Policy for Prehistoric Collections:
The following are categories of prehistoric artifacts and artifactual materials that should NOT be
included in prehistoric collections submitted to the archive facility:
•Unanalyzed bulk shell or soil samples.
•Formally analyzed shell samples can by quite large in number and size. When there are large
quantities of shell, only a representative sample should be kept. Large quantities of shell will not
be accepted by the Facility for curation.
•Column Samples – when multiple column samples have been collected and they contain a large
amount of shell, only a complete column sample that is representative of the site should be kept
for curation.
•Fire-affected rock – it is advisable to weigh and discard such specimens in the field.
•Recent refuse – while archaeologists often collect and catalogue items such as soda cans, plastic
reflector fragments and round nails to document disturbance, these items should be catalogued
and then discarded from the permanent collection.
•Diagnostic and formal prehistoric artifacts should not be discrded; however in some cases non-
diagnostic artifacts that lack provenience and temporal control may be considered for discard.
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Such items lack scientific value but may be useful teaching/display tools for responsible schools
or other institutions.
•Other archaeological materials such as faunal remains, debitage, etc., recovered from sites with
low research and interpretive potential, such as those from a disturbed context, should be
considered for discard; if possible, the materials should be returned to the disturbed site location.
Discard Policy for Historic-Period Collections:
The following are categories of artifacts and artifactual materials that should be discarded after being
catalogued (analyzed, counted, weighed, and photographed) and a representative sample kept from each
feature or excavation unit:
•Bottle glass fragments that are from mass-produced or machine-made techniques should only
have a representative sample kept for each feature or excavation unit
•Pottery fragments that are not diagnostic and not associated with other fragments/vessels and
have limited data potential
•Pottery found in large amounts with limited data potential, such as sewer piping, should have
only a representative sample kept of diagnostic fragments (i.e. markings, ends, etc.)
•Faunal remains – in most situations all faunal items should be kept. The research potential for
faunal remains that have not been systematically collectedis typically low, and once these faunal
remains are catalogued (analyzed, counted, weighed, photographed) and a representative sample
kept from each feature, the rest of the items can be considered for discard.
•Window glass
•Non-diagnostic glass fragments smaller than a quarter
•Melted glass
•Non-temporally diagnostic ferrous items such as scraps, sheets, wire, pipe, cans, bolts, tubes,
pans
•Non-diagnostic metal
•Common cut and wire nails and fragments
•Leather and textiles
•Non-diagnostic brick, mortar, cement, and other structural materials
•Non-diagnostic wood
*SLOCAS Discard Policy is drawn from multiple references used to tailor a policy for our Facility. The
bibliography lists the references used to create this synthesis.
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Bibliography:
Byrne, Kathleen T.
2000 Deaccessioning Museum Collections. In CRM No. 5.
Praetzellis, Adrian and Julia G. Costello
2002 Don’t Keep Everything: Historic Artifacts Discard Policy. In Society for California Newsletter
36(3).
San Diego Archaeological Center
2008 Collections Management Policy. San Diego Archaeological Center, Escondido, CA.
Society for Historical Archaeology
1993 The Society for Historical Archaeology – Standards and Guidelines for the Curation of
Archaeological Collections.
State Historical Resources Commission and Department of Parks and Recreation
1993 Guidelines for the Curation of Archaeological Collections. State of California Resources
Agency.
Sullivan, Lynne P. and S. Terry Childs
2003 Curating Archaeological Collections. AltaMira Press, Walnut Creek, CA.
Van Bueren, Thad
2002 The Archaeological Treatment Plan for the Mandela Park and Ride Relocation Project in the
City of Oakland, California. On file in the Caltrans District 5 cultural archives.
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-ATTACHMENT 2 -
San Luis Obispo County Archaeological Society
Research and Collections Facility
NAGPRA Certification Form
I, as legal owner of this collection or the lawful agent, certify that I have examined the collection in its entirety and
that it contains no NAGPRA-related items pursuant to 43 CFR Part 10 (25 U.S.C, Sec. 3001 et seq.). This
collection contains no human remains, funerary objects, items that are known or believed to be sacred, or materials
that may be defined as items of cultural patrimony.
Accession Number:___________________ Log Number:_________________
Site Number:____________________________________________________________
Signature:_________________________________________ Date:____________
Printed Name:___________________________________________________________
Agency or Affiliation:_____________________________________________________
Address:________________________________________________________________
City, State, Zip Code:_____________________________________________________
Business Phone:______________________ Fax:_________________________
Email Address:_______________________ Web Site:_____________________
***For Internal Use Only***
Received by:_________________________ Date:__________________________
Accession Number:____________________ Number of Boxes:_______________
Total Fees Paid:_______________________ Date Paid:_____________________
Check Number:_______________________ Invoice Number:________________
Inventory Date:_______________________ Inventoried By:_________________
Additional Fees:______________________
Reason for Additional Fees:_____________________________________________
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- ATTACHMENT 3 -
COLLECTIONS AGREEMENT
FOR THE PERMANENT CURATION OF ARCHAEOLOGICAL COLLECTIONS
AT THE
SAN LUIS OBISPO COUNTY ARCHAEOLOGICAL SOCIETY
RESEARCH AND COLLECTIONS FACILITY
This collections agreement does not change the legal ownership of the collection. The current owner retains
ownership of the collection.
I, the requester for submission of the collection identified below, have read, understand, and have complied with
the Policies and Guidelines for the Curation of Archaeological Collections stipulated by the San Luis Obispo
County Archaeological Society (SLOCAS). I understand that if the collection is found to be deficient, it will be
returned to me at my expense for remediation. I further understand that SLOCAS will invoice me for curation
charges based on the fee schedule identified within the curation guidelines. I agree to pay the charges with the
understanding that failure to do so will result in return of the collection to my care and at my expense.
Title of Project (include site trinomial):
Accession Number:
Project Conducted for:
________________________________________________ ___________________
Signature of Submitter Date
________________________________________________
Print Name of Submitter
Invoice to be sent to: _______________________________________________________
_______________________________________________________
_______________________________________________________
_______________________________________________________
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-ATTACHMENT 4 -
San Luis Obispo County Archaeological Society
Research and Collections Facility
Collection Submission Checklist
Please complete this checklist and include it with the documentation when preparing to submit a collection/
collections for permanent curation. All categories must be filled out. Please note if an item/items will not be
included as part of the submission. Originals of all documentary materials submitted are required unless otherwise
noted. If copies are offered, they must be legible and neatly organized. If applicable, use the space to the right of the
document checkbox to detail types of records submitted for that category. Attach separate lists of items if necessary.
If you have questions, please contact the Collections Manager before you submit the collection.
Accession #:____________________ Log Number:_____________________
# of Collection Boxes:____________ # of Boxes of Documents:___________
Project Site Number(s):____________________________________________________
Submitter:___________________________________ Date:_____________________
Collection/Site Type:
Signed Curation Agreement:
NAGPRA Certification Signed:
Artifact Catalogue (electronic copy plus two hard copies)
Level Records:
Fie
Type of Disk Used:Software used:
Other:
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-ATTACHMENT 5 -
San Luis Obispo County Archaeological Society
Research and Collections Facility
Fee Schedule
Collection Curation
Permanent Storage No. Rate Total Charges
Standard Archive Box $1,000.00
Volunteer Staff $40.00 per hour
Oversized Item(s) TBD
Supplies Cost plus 40%
Access Fees for Collections or Records
Half Day Use $50.00
Daily Use $75.00
Extra Staff Assistance $40.00 per hour
Copy / Reproduction Charges
Copies $0.20 per copy
Other reproductions (offsite) Cost plus 30%
Other Charges
Total
Note: Rates are subject to change and will be evaluated and updated on a fiscal year schedule.
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-ATTACHMENT 6 -
San Luis Obispo County Archaeological Society
Research and Collections Facility
Researcher Registration
Name ______________________________________________________________________
Affiliation ______________________________________________________________________
Address ______________________________________________________________________
City, State Zip ____________________________________________Phone/Fax _________________
E-mail ______________________________________________________________________
Subject of Research:
Purpose of Research:
Access to the archive collections for purposes of research is only by permission and by appointment only. Projects requiring
collections volunteers for research or other assistance may be subject to charges for these services.
The researcher must reimburse all costs plus a handling fee incurred by the archive in filling requests of researcher, for
example, photographing objects, making negatives etc. In addition, individuals using the archive material for a commercial
project will be charged a use fee (see our Fee Schedule).
Researcher agrees to reimburse the archive for collection use as determined by the collections volunteer. Any use of this
information for commercial purposes is subject to renegotiating before release from archive is granted.
I have read and agree to the above.
Signature __________________________________________________
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-ATTACHMENT 7 -
San Luis Obispo County Archaeological Society
Research and Collections Facility
Request for Access
Name ______________________________________________________________________
Affiliation ______________________________________________________________________
Address ______________________________________________________________________
City, State Zip ____________________________________________Phone/Fax _________________
E-mail ______________________________________________________________________
Check appropriate:
Accession Files (Repository Records) Archaeological Collections
for Site Number __________________________ or Accession Number __________________________
Subject of research:
Purpose of research:
Date and time of proposed access: _______________________________________________________
Estimated time required: _______________________________________________________
While we will try to satisfy your requested schedule, we may need to develop a mutually acceptable alternative.
How would you like to receive confirmation of your requested scheduled time?
Mail Phone Fax E-mail
_______________________________________________________________________________
Signature of Requester Date
_________________________________________
Print Name of Requester
Unless the Organization has established a credit line or history of payment with the Archive
Facility, payment in advance will be required.
Date request received ______________________ Received by _______________________________
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-ATTACHMENT 8 -
San Luis Obispo County Archaeological Society
Research and Collections Facility
Loan Agreement
The San Luis Obispo Archaeological Society (SLOCAS) agrees to loan to the Borrower certain artifacts, specimens and
copies of associated records (the Collection) listed in detail on this agreement. During the term of the loan, the Borrower
agrees to handle and transport the Collection in a manner to protect it from breakage, loss, deterioration and contamination
and is responsible for the mitigation of such. The Borrower will notify SLOCAS within five (5) days of discovery of instances
or circumstances surrounding any loss of or damage to the Collection.
The Borrower agrees to credit SLOCAS in any publications or exhibits resulting from the loan and will provide SLOCAS
with copies of any resulting publications. The credit shall read as: "Courtesy of the San Luis Obispo County Archaeological
Society".
Upon termination of this agreement, the Borrower agrees to package and transport the Collection to SLOCAS. Either
SLOCAS or the Borrower may terminate this agreement, effective not less than five (5) working days after receipt by either
party of written notice, without further liability to either party.
Borrower Name ____________________________________________________________________
Affiliation _________________________________________________________________________
Address ___________________________________________________________________________
City, State Zip ____________________________________________Phone/Fax _________________
E-mail ____________________________________________________________________________
Purpose of Loan:
Collection:
Accession Number:
Loan Items:
See Attachment A for photographic documentation.
Duration of Loan:
Beginning on ________________________ Ending on ___________________________
SLOCAS Signature: _________________________________ Date: _____________________________
Borrower Signature: _________________________________ Date: _____________________________
Return of Loan:
The signatures of both parties confirm receipt of all loan items in their original condition.
SLOCAS Signature: _________________________________ Date: _____________________________
Borrower Signature: _________________________________ Date: _____________________________
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AGREEMENT
THIS AGREEMENT is made and entered into in the City of San Luis Obispo on [council approval
date], by and between the CITY OF SAN LUIS OBISPO, a municipal corporation, hereinafter referred to
as City, and SAN LUIS OBISPO COUNTY ARCHAEOLOGICAL SOCIETY, hereinafter referred to as
SLOCAS.
W I T N E S S E T H:
WHEREAS, CITY desires to curate the Palm Street Parking Structure Archaeological Collection
in a proper storage environment that provides suitable City access to the collection; and
WHEREAS, SLOCAS has as a part of its mission to promote conservation of archeological sites,
records and collections; and
WHEREAS, on May 15, 2001, City Council agreed, upon completion of the collection’s
preparation, to store the artifacts with SLOCAS as part of a permanent collection; and
WHEREAS, on April 15, 2015, City Council authorized the City manager to execute an agreement
with Sonoma State University’s Anthropological Studies Center (ASC) to complete stabilization and
preparation for storage of Palm Street Chinatown artifacts, and create products associated with the
collection that demonstrate its historic significance in the community to be completed and returned in late
2018; and
WHEREAS, on [council approval date], City Council authorized the City Manager to enter into
a sole-source agreement with SLOCAS, in the amount of $129,000 to curate and permanently store
the 842 Palm Street Parking Garage artifacts.
NOW THEREFORE, in consideration of their mutual promises, obligations, and covenants
hereinafter contained, the parties hereto agree as follows:
1.TERM. The term of this Agreement shall be from the date this Agreement is made and
entered, as first written above, and shall continue in perpetuity
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2.CITY' S OBLIGATIONS. For providing services as specified in this Agreement,
CITY will pay, and SLOCAS shall receive a one-time payment of $129,000 ($1,000.00/archive
box for 129 archived boxes), inclusive of 12 oversize items and two boxes of documentation.
CITY will deed the Palm Street Parking Structure Archaeological Collection to SLOCAS as specified in
the attached Deed of Gift (Exhibit A). The collection includes all artifacts and the catalogue (two paper
copies on acid free paper and Compact Disc preferably in Microsoft Access). Any available supporting
documentation such as field records, photographs, and maps shall be organized and submitted with the
artifacts along with two copies of the draft and three copies of the final reports. The collection will be
submitted to SLOCAS following their curation guidelines (Exhibit B).
CITY reserves the right to borrow artifacts fr om the Palm Street Parking Structure Archaeological
Collection under the following conditions:
a.CITY will submit a written request to borrow specimens for public exhibit and will include:
a list or description of the items needed; the purpose and location of the display; the
duration of use; and the name of the CITY staff member(s) that will be responsible for the
materials.
b.Loaned collection materials will be handled, stored, and exhibited in a safe and secure
manner and protected from breakage, theft, and other adverse conditions such as excessive
heat or moisture, insects, and rodents.
c.There will be no charge to CITY for SLOCAS staff time unless the loan request requires
an unusual amount of preparation and packaging time, in which case esta blished staff fees
will be assessed.
d.Copying, packing, shipping, insurance, or other transport costs will be paid by CITY.
e.CITY will sign an inventory and agreement form prior to release of the artifacts and will
be responsible for the safe retur n of all items listed.
3.SLOCAS' S OBLIGATIONS. For and in consideration of the payments and agreements
hereinbefore mentioned to be made and performed by CITY, SLOCAS agrees to provide storage for the
Palm Street Parking Structure Archaeological Collection in accordance with their adopted policies and
guidelines for the curation of archaeological collections (Exhibit B).
4.DISSOLUTION OF SLOCAS. In the event of the dissolution of SLOCAS, in concurrence with
the CITY, SLOCAS will obtain a curation agreement with another archival facility. The CITY will be
allowed to regain ownership of the collection and will be responsible for the curation of the collection.
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5.FUTURE CURATION NEEDS. It is possible that CITY may have a need for added storage
space in the future to house other collections. Terms for additional storage will be determined when the
need is known.
6.AMENDMENTS. Any amendment, modification, or variation from the terms of this
Agreement shall be in writing and shall be effective only upon approval by the City Manager (City)
and SLOCAS.
7.COMPLETE AGREEMENT. This written Agreement, including all writings specifically
incorporated herein by reference, shall constitute the complete agreement between the parties
hereto. No oral agreement, understanding, or representation not reduced to writing and specifically
incorporated herein shall be of any force or effect, nor shall any such oral agreement,
understanding, or representation be binding upon the parties hereto .
8.NOTICE. All written notices to the parties hereto shall be sent by United States mail,
postage prepaid by registered or certified mail addressed as follows:
City City Clerk
City of San Luis Obispo
990 Palm Street
San Luis Obispo, CA 93401
SLOCAS SLOCAS
PO Box 109
San Luis Obispo, CA 93406
9.AUTHORITY TO EXECUTE AGREEMENT. Both City and Contractor do covenant that each
individual executing this agreement on behalf of each party is a person duly authorized and empowered to
execute Agreements for such party.
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IN WITNESS WHEREOF, the parties hereto have caused this instrument to be execut ed the day
and year first above written.
CITY OF SAN LUIS OBISPO
____________________________________
By: City Manager
ATTEST:
____________________________________
City Clerk
APPROVED AS TO FORM:
____________________________________
City Attorney
SLOCAS
____________________________________
By:
Its:
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EXHIBIT A
San Luis Obispo County Archaeological Society
PO Box 109
San Luis Obispo, CA 93406
Deed of Gift
The City of San Luis Obispo irrevocably and unconditionally gives, transfers, and assigns to the San Luis
Obispo County Archaeological Society (SLOCAS) by way of gift, all rights, titles, and interests (including
all copyright, trademark and related interests), in, to and associated with the objects described as the Palm
Street Parking Archaeological Collection. The City of San Luis Obispo affirms that they own said objects
and that to the best of their, knowledge they have good and complete right; title and interest to deed as a
gift. In the event that the San Luis Obispo County Archaeological Society is dissolved, SLOCAS will confer
with the City and a curation agreement for the collection will be obtained with another archival facility.
Should the City of San Luis Obispo prefer, the City will regain ownership of the collection and will
be responsible for curation.
ATTEST: CITY OF SAN LUIS OBISPO
____________________________________ By: ____________________________________
City Clerk Mayor
APPROVED AS TO FORM
________________________
City Attorney
The San Luis Obispo County Archaeological Society hereby acknowledges receipt of the above
Deed of Gift. Dated _____________________________________________________________
(Signature of curator)
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Meeting Date: 11/27/2018
FROM: Christine Dietrick, City Attorney
Prepared by: Kelly White, Legal Assistant/Paralegal
SUBJECT: AMENDMENT TO LEGAL SERVICES AGREEMENT FOR CONTRACT
DEPUTY CITY ATTORNEY SERVICES
RECOMMENDATION
Authorize the City Attorney to execute a Second Amendme nt to the Legal Services Agreement
with the law firm of Hanley and Fleishman, LLP (Original Agreement effective April 1, 2017,
First Amendment executed June 6, 2017) adding an additional 12 months to the agreement and
increasing the not -to-exceed amount by $72,000 to $180,000.
DISCUSSION
Background
On June 6, 2017 the City Council authorized (Attachment A) the City Attorney to execute a First
Amendment to a month-to-month agreement (Attachment B) with the law firm Hanley and
Fleishman, LLP for code enforcement, development review and other general municipal law
support services to facilitate the efficient and responsive operation of the office, as described in
the agreement.
Over the 18 months of the agreement, Hanley and Fleishman have proven to be a co st-effective
resource. Most notably taking on the filing of misdemeanor criminal citations and making
numerous court appearances every week in support of those filings. This has freed regular staff
of the department to work on other issues, as envisioned b y Council when they approved the
2016-17 Budget and the Organizational Efficiency, Effectiveness & Transparency Initiative
SOPC which gave the department the funding to support the agreement.
Contract Amendment
Because of their performance to date, the City Attorney recommends extending the term of the
current month-to-month agreement by twelve months (to October 31, 2019) and to increase the
not -to-exceed amount to $180,000. The City Attorney recommends this amendment (Attachment
C) as a means to accomplish the goals for which the department has been given contract and
staffing budget. The contract remains terminable for convenience or financial need with 30
days’ notice.
ENVIRONMENTAL REVIEW
The California Environmental Quality Act does not apply to t he recommended action in this
report, because the action does not constitute a “Project” under CEQA Guidelines Sec. 15278.
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FISCAL IMPACT
Funding for this work was approved as part of the 2017-19 Financial Plan. Currently, there is
$72,000 available to support this request . The overall budget of the agreement will not exceed
$180,000.
ALTERNATIVE
Do not authorize the second amendment to the Agreement, the consequences of which would be
to limit the department’s ability to efficiently accomplish the code enforcement, development
review and other general municipal law support services expected of it, including the timely
filing of misdemeanor criminal citations and related court appearances.
Attachments:
a - June 6, 2017 Council Agenda Item - Staff Report
b - 20170606_FirstAmend-Agreement_HanleyFleishman_DeputyCA
c - SecondAmend-Agreement_HanleyFleishman_DeputyCA
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Meeting Date: 6/6/2017
FROM: Christine Dietrick, City Attorney
SUBJECT: AMENDMENT TO DEPUTY CITY ATTORNEY CONTRACT
RECOMMENDATION
Authorize the City Attorney to execute a First Amendment to the Legal Services Agreement with
the law firm of Hanley and Fleishman, LLP (Original Agreement effective April 1, 2017) adding
a term of 18 months and a not to exceed amount of $108,000.
DISCUSSION
Background
The City Attorney’s Department was recently authorized (attachment C) to execute a month-to-
month agreement (attachment A) with the law firm Hanley and Fleishman, LLP for code
enforcement, development review and other general municipal law support services to facilitate
the efficient and responsive operation of the office, as described in the attached contract.
After evaluating several different service delivery alternatives, contracting for these services was
determined by the City Attorney to be the most efficient use of funds budgeted to the department
to accomplish the goals of improved legal support for code enforcement, development review
and a broad range of issues, while additionally freeing up in-house time to provide greater legal
support and responsiveness on the most significant City projects, pending litigation, election
issues, and Council and advisory body advice and support.
Additionally, as part of the 2016-17 Budget, Council approved the Organizational Efficiency,
Effectiveness & Transparency Initiative SOPC (attachment D), which included $150,000 in
additional temporary staffing dollars each fiscal year, for three years, for legal and administrative
support in the City Attorney’s Department in addition to its three full-time, permanent employees
to address significant increases of volume and complexity of legal services requested of the
office over the past several years. Efficient use of these dollars to date to fund the salaries of a
Temporary, part-time Assistant City Attorney at a significantly discounted hourly rate as
compared to market attorney rates, and a part-time, contract Administrative Assistant I, has left
surplus budget which the City Attorney believes would be best used to further fund the
agreement with Hanley and Fleishman; significantly enhancing the objective of supporting the
varied legal needs of the City in a cost effective and flexible manner.
Contract Amendment
In order to ensure the continued ability of the department to fund the current month-to-month
agreement with Hanley and Fleishman, the addition of a time frame (18 months) and not-to-
exceed amount ($108,000) was deemed necessary. The City Attorney recommends this
amendment (attachment B) as a means to accomplish the goals for which the department has
been given contract and staffing budget. The contract remains terminable for convenience or
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financial need with 30 days’ notice.
FISCAL IMPACT
With funds already approved in the current budget (Fiscal Year 2016-17), and included in the
proposed two-year financial plan (2017-19), there is no impact of this request.
ALTERNATIVES
Do not authorize signature of the First Amendment to the Agreement, the consequences of which
would be to limit the department’s ability to use the funds in its budget to accomplish the
efficiency and legal support for which it was intended.
Attachments:
a - Agreement Hanley Deputy City Attorney
b - First Amendment Hanley Fleishman
c - City Manager Report Hanley Contract Deputy City Attorney
d - 2016-17 Efficiency SOPC
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SECOND AMENDMENT TO AGREEMENT
This Second Amendment to Agreement is made and entered in the City of San Luis Obispo on
November 1, 2018, by and between the CITY OF SAN LUIS OBISPO, a municipal corporation, herein
after referred to as City, and Hanley and Fleishman, LLP, a limited liability partnership, hereinafter
referred to as Consultant.
W I T N E S S E T H:
WHEREAS, on April 1, 2017, the City entered into an Agreement with Consultant for
professional legal services to serve as a contract deputy city attorney; and
WHEREAS, on June 6, 2017, the parties executed a First Amendment to said Agreement; and
WHEREAS, the City has received excellent and efficient service to date from Consultant under
said Agreement; and
WHEREAS, the parties seek to modify certain provisions of the Agreement between them.
NOW, THEREFORE, in consideration of their mutual promises, obligations and covenants
hereinafter contained, the parties hereto agree as follows:
1. The “COMPENSATION.” Section is modified to read “…a sum not to exceed six
thousand dollars ($6,000.00) per month, or $180,000 over the term of the Agreement.
2. The last sentence of the “TERM AND TERMINATION.” Section is modified to read
“This Agreement shall continue until termination, until October 31, 2019, or until
modified by written Agreement of the parties.”
3. All other terms and conditions of the Agreement, as amended hereby, remain in full force
and effect.
IN WITNESS WHEREOF, the parties hereto have caused this instrument to be executed the day
and year first above written.
CITY OF SAN LUIS OBISPO
By:________________________________
J. Christine Dietrick, City Attorney
Signed on __________________________
HANLEY AND FLEISHMAN, LLP
By: ________________________________
Roy A. Hanley
Its:
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Meeting Date: 11/27/2018
FROM: Michael Codron, Community Development Director
Prepared By: Walter Oetzell, Assistant Planner
SUBJECT: REVIEW OF A MILLS ACT HISTORICAL PROPERTY CONTRACT FOR
THE TERESA TORRES TRUE HOUSE (A MASTER LIST RESOURCE)
RECOMMENDATION
As recommended by t he Cultural Heritage Committee, adopt a resolution (Attachment A)
approving a Historical Property Contract between the City and the owner of the Teresa Torres
True House at 1214 Mill Street, under the terms described in the draft agreement
(Attachment B).
DISCUSSION
The owner of the Teresa Torres True House at 1214 Mill Street submitted an application to enter
into a Mills Act historical property contract with the City for the improvement and preservation
of the historical property in exchange for propert y tax relief.
The Mills Act Program
The Mills Act Program enables California cities
to enter into contracts with owners of historical
property to provide them with tax relief in
exchange for an agreement to actively participate
in the resoration and maintenance of historical
resources. A Mills Act contract is effective for an
initial 10-year period, and then is automatically
extended annually for an additional year. After
the initial term, either the City or the owner may,
by written notice, decide not to renew the
contract. During the effective term of the contract,
the property owner must improve or rehabilitate
the property, maintain the property consistent
with the Secretary of the Interior’s Standards, and
provide visibility of the historical resource from
the public right -of-way.
The Conservation and Open Space Element (COSE) of the General Plan describes the City’s
goals and policies for the protection of cultural resources. It is the City’s policy that significant
historic resources be rehabilitat ed and preserved (COSE § 3.3). Participation in the Mills Act
Program is one of the means by which the City encourages the maintenance and restoration of
historic properties (COSE § 3.6.2). A property must be on the City’s Master List of Historic
Resources in order to be enrolled in the program. Currently there are 5 7 properties participating
Figure 1: Teresa Torres True House
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in the program, with the last request approved by the Council in September 2018.
Proposed Improvements
Several improvements and maintenance items are identified by t he applicant (Attachment C) for
completion under the proposed contract. Those most relevant to preservation of the property
(excluding those related to the cottage house on the property, which has not been determined to
be a contributing historic element o n the property or eligible for listing as an historical resource)
are included in Exhibit A of the proposed contract (Attachment B).
CONCURRENCES
The Cultural Heritage Committee reviewed the application and the terms of the draft contract at
a public hearing on September 24, 2018. The Committee, by a vote of 4-0 (with 3 Members
absent), recommended that the Council approve the contract.
ENVIRONMENTAL REVIEW
Entering into a “Mills Act Contract” with the owners of historic al property is not subject to the
provisions of the California Environmental Quality Act (CEQA) because it is not a project as
defined in CEQA Guidelines § 15378 (Definitions – Project). Implementation of the Mills Act is
a government fiscal activity which does not involve commitment to any specific project resulting
in a potentially significant physical impact on the environment (Guidelines § 15378 (b) (4)).
FISCAL IMPACT
After the contract is agreed, the County Assessor values the property by an income capitalization
method, following guidelines provided by the State Board of Equalization. Because of the timing
and the method of valuing the restricted property, it is difficult to accurately estimate the tax
savings and resulting fiscal impacts to the City under a particular historical property contract.
However, t he Office of Historic Preservation (California Department of Parks and Recreation)
estimates that property owners participating in the program may realize property tax savings of
between 40% and 60% each year 1 for newly improved or purchased older properties.
ALTERNATIVES
1. Continue consideration of the request to a future date for additional analysis or research;
2. Do not enter into a Mills Act Historical Property Contract with the property owner. This
alternative is not recommended. The contract provides a tax relief incentive that is a tool for
achieving the City’s goals for historical preservation.
1 Mills Act Program; California Department of Parks and Recreation [ONLINE at
http://ohp.parks.ca.gov/?page_id=21412, accessed October 5, 2018]
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Attachments:
a - Council Resolution (Draft)
b - Historical Property Preservation Agreement (Draft)
c - Applicant Letter and List of Improvements
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R ______
RESOLUTION NO. ____ (2018 SERIES)
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS
OBISPO, CALIFORNIA APPROVING A HISTORIC PROPERTY
PRESERVATION AGREEMENT BETWEEN THE CITY AND THE
OWNER OF THE TERESA TORRES TRUE HOUSE AT 1214 MILL
STREET
WHEREAS, the City Council of the City of San Luis Obispo is authorized by California
Government Code § 50280 et seq. (known as “the Mills Act”) to enter into contracts with the
owners of qualified historical properties to provide for appropriate use, maintenance, and
rehabilitation such that these historic properties retain their historic characteristics; and
WHEREAS, the City Council has adopted Resolution No. 9136 (2000 Series), establishing
the Mills Act Historic Property Tax Incentive Program as an on-going historic preservation
program to promote the preservation, maintenance and rehabilitation of historic resources through
financial incentives; and
WHEREAS, the City Council of the City of San Luis Obispo has designated this property
as a historic resource of the City of San Luis Obispo pursuant to the policies in the City’s Historic
Preservation Program Guidelines; and
WHEREAS, Larry Brooks is the owner of that certain qualified real property, together
with associated structures and improvement thereon, located on Assessor’s Parcel Number
001-212-013, located at 1214 Mill Street, in the City of San Luis Obispo, California, also described
as the Teresa Torres True House; and
WHEREAS, the City and Owner, for their mutual benefit, now desire to enter into an
agreement to limit the use of the property to prevent inappropriate alterations and to ensure that
character-defining features are preserved and maintained in an exemplary manner, and repairs and
improvements are completed as necessary to carry out the purposes of California Government
Code, Chapter 1, Part 5 of Division 1 of Title 5, Article 12, Sec. 50280 et seq., and to qualify for
an assessment of valuation pursuant to Article 1 .9, Sec. 439 et. seq. of the Revenue and Taxation
Code.
WHEREAS, the Cultural Heritage Committee 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 September 24, 2018 for the purpose of reviewing the proposed historic property
preservation agreement , and recommended that the City enter into the agreement ; and
WHEREAS, the City Council conducted a public hearing in the Council Chamber at
990 Palm Street, San Luis Obispo, California, on November 27, 2018 for the purpose of
considering approval of the historic property preservation agreement, and has duly considered all
evidence, including the record of the Cultural Heritage Committee hearing and recommendation,
testimony of the applicant and interested parties, and the evaluation and recommendation by staff,
present at said hearing; and
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Resolution No. ____ (2018 Series) Page 2
R ______
WHEREAS, notices of said public hearings were made at the time and in the manner
required by law.
NOW, THEREFORE, BE IT RESOLVED, by the Council of the City of San Luis
Obispo as follows:
SECTION 1. Findings. Based upon all the evidence, the City Council makes the following
findings:
1. Conservation and Open Space Element Program 3.6.2 states that the City will
participate in financial assistance programs such as property tax reduction programs
that encourage maintenance and restoration of historic properties.
2. The Teresa Torres True House, located at 1214 Mill Street, has been recognized as a
historic asset in the community by its designation as a Master List Historic Property by
the City Council on June 14, 2016 (Resolution 10721). As such, maintaining the
structure will meet the City’s goals for historic preservation listed in policies 3.3.1
through 3.3.5 of the Conservation and Open Space Element.
SECTION 2. Environmental Determination. The City Council has determined that the
above actions do not constitute a project, as defined in California Environmental Quality Act
Guidelines § 15378 and are not subject to environmental review.
SECTION 3. Historic Property Preservation Agreement Approved. The City Council
hereby approves the “Historic Property Preservation Agreement between the City of San Luis
Obispo and the Owner of the Historic Property Located at 1214 Mill Street,” to be entered into by
the City and the property owner, Larry Brooks.
SECTION 4. Community Development Director Authorized to Sign Agreement for City.
The City Council hereby authorizes the Communit y Development Director to execute said
agreement on behalf of the Council of the City of San Luis Obispo .
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Resolution No. ____ (2018 Series) Page 3
R ______
SECTION 5. Recordation of the Agreement . No later than twenty (20) days after the
parties enter into said agreement, the Community Development Department shall cause the
agreement to be recorded in the Office of the County Recorder of the County of San Luis Obispo.
Upon motion of _______________________, seconded by _______________________,
and on the following roll call vote:
AYES:
NOES:
ABSENT:
The foregoing resolution was passed and adopted this 27th day of November 2018.
____________________________________
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 ______________, 2018.
____________________________________
Teresa Purrington,
City Clerk
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HISTORIC PROPERTY PRESERVATION AGREEMENT BETWEEN
THE CITY OF SAN LUIS OBISPO AND THE OWNER OF THE HISTORIC
PROPERTY LOCATED AT 1214 MILL STREET, IN THE CITY OF
SAN LUIS OBISPO, SAN LUIS OBISPO COUNTY, STATE OF CALIFORNIA.
THIS AGREEMENT is made and entered into this ________ day of ________ , 2018, by and
between the City of San Luis Obispo, a municipal corporation (hereinafter referred to as the
“City”), and Larry Brooks (hereinafter referred to as “Owner”), and collectively referred to as the
“parties.”
WHEREAS, Owner is the owner of that certain real property commonly known as
1214 Mill Street (APN 001-212-013), and legally described as shown in the attached “Exhibit B”
(“Owner’s Property”); and
WHEREAS, Owner has agreed to enter into an Historic Property Preservation Agreement
with the City for the preservation, maintenance, restoration, or rehabilitation of Owner’s Property,
an historic resource within the City;
NOW, THEREFORE, in consideration of the above recitals and in further consideration
of the mutual benefits, promises, and agreements set out herein, the parties agree as follows:
Section 1. Description of Preservation Measures. The Owner, his heirs, or assigns hereby agree
to undertake and complete, at his expense, the preservation, maintenance, and improvements
measures described in “Exhibit A” attached hereto.
Section 2. Effective Date and Term of Agreement. This agreement shall be effective and
commence upon recordation and shall remain in effect for an initial term of ten (10) years
thereafter. Each year upon the anniversary of the agreement’s effective date, such initial term will
automatically be extended as provided in California Government Code Section 50280 through
50290 and in Section 3, below.
Section 3. Agreement Renewal and Non-renewal.
a. Each year on the anniversary of the effective date of this agreement (hereinafter
referred to as “annual renewal date”), a year shall automatically be added to the
initial term of this agreement unless written notice of non-renewal is served as
provided herein.
b. If the Owner or the City desire in any year not to renew the agreement, the Owner
or the City shall serve written notice of non-renewal of the agreement on t he other
party. Unless such notice is served by the Owner to the City at least ninety (90)
days prior to the annual renewal date, or served by the City to the Owner at least
sixty (60) days prior to the annual renewal date, one (1) year shall automaticall y be
added to the term of the agreement as provided herein.
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c. The Owner may make a written protest of the notice. The City may, at any time
prior to the annual renewal date, withdraw its notice to the Owner of non-renewal.
d. If either the City or the Owner serves notice to the other party of non-renewal in
any year, the agreement shall remain in effect for the balance of the term then
remaining.
Section 4. Standards and Conditions. During the term of this agreement, the historic property
shall be subject to the following conditions:
a. Owner agrees to preserve, maintain, and, where necessary, restore or rehabilitate
the building and its character-defining features, including: the building’s general
architectural form, style, materials, design, scale, proport ions, organization of
windows, doors, and other openings; interior architectural elements that are integral
to the building’s historic character or significance; exterior materials, coatings,
textures, details, mass, roof line, porch, and other aspects of the appearance of the
building’s exterior, as described in Exhibit A, to the satisfaction of the Community
Development Director or his designee.
b. All building changes shall comply with applicable City specific plans, City
regulations and guidelines, and co nform to the rules and regulations of the Office
of Historic Preservation of the California Department of Parks and Recreation,
namely the U.S. Secretary of the Interior’s Standards for Rehabilitation and
Standards and Guidelines for Historic Preservation Projects. Interior remodeling
shall retain original, character-defining architectural features such as oak and
mahogany details, pillars and arches, special tile work, or architectural
ornamentation to the greatest extent possible.
c. The Community Development Director shall be notified by the Owner of changes
to character-defining exterior features prior to their execution, such as major
landscaping projects and tree removals, exterior door or window replacement,
repainting, remodeling, or other exterior alterations requiring a building permit.
The Owner agrees to secure all necessary City approvals and/or permits prior to
changing the building’s use or commencing construction work.
d. Owner agrees that property tax savings resulting from this agreement shall be used
for property maintenance and impro vements as described in Exhibit A.
e. The following are prohibited: demolition or partial demolition of the historic
building; exterior alterations or additions not in keeping with the standards listed
above; dilapidated, deteriorating, or unrepaired structures such as fences, roofs,
doors, walls, windows; outdoor storage of junk, trash, debris, appliances, or
furniture visible from a public way; or any device, decoration, structure, or
vegetation which is unsightly due to lack of maintenance or because such feature
adversely affects, or is visually incompatible with, the property’s recognized
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historic character, significance, and design as determined by the Community
Development Director.
f. Owner shall allow reasonable periodic examination, by prior appointment, of the
interior and exterior of the historic property by representatives of the County
Assessor, the State Department of Parks and Recreation, the State Board of
Equalization, and the City as may be necessary to determine the owner’s
compliance with the terms and provisions of this agreement.
Section 5. Furnishing of Information. The Owner hereby agrees to furnish any and all
information requested by the City which may be necessary or advisable to determine compliance
with the terms and provisions of this agreement.
Section 6. Cancellation.
a. The City, following a duly-noticed public hearing by the City Council as set forth
in Government Code Section 50285, may cancel this agreement if it determines that
the Owner has breached any of the conditions of this agreement or has allowed the
property to deteriorate to the point that it no longer meets the standards for a
qualified historic property; or if the City determines that the Owner has failed to
preserve, maintain, or rehabilitate the property in the manner specified in Section 4
of this agreement. If a contract is cancelled because of failure of the Owner to
preserve, maintain, and rehabilitate the historic property as specified above, the
Owner shall pay a cancellation fee to the State Controller as set forth in Government
Code Section 50286, which states that the fee shall be 12 ½% of the full value of
the property at the time of cancellation without regard to any restriction imposed
with this agreement.
b. If the historic building is acquired by eminent domain and the City Council
determines that the acquisition frustrates the purpose of the agreement, the
agreement shall be cancelled and no fee imposed, as specified in Government Code
Section 50288.
Section 7. Enforcement of Agreement.
a. In lieu of and/or in addition to any provisions to cancel the agreement as referenced
herein, the City may specifically enforce, or enjoin the breach of, the terms of the
agreement. In the event of a default, under the provisions to cancel the agreement
by the Owner, the City shall give written notice of violation to the Owner by
registered or certified mail addressed to the address stated in this agreement. If
such a violation is not corrected to the reasonable satisfaction of the Community
Development Director or designee within thirty (30) days thereafter; or if not
corrected within such a reasonable time as may be required to cure the breach or
default of said breach; or if the default cannot be cured within thirty (30) days
(provided that acts to cure the breach or default may be commenced within thirty
(30) days and shall thereafter be diligently pursued to completion by the Owner);
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then the City may, without further notice, declare a default under the terms of this
agreement and may bring any action necessary to specifically enforce the
obligations of the Owner growing out of the terms of this agreement, apply to any
court, state or federal, for injunctive relief against any violation by the Owner or
apply for such relief as may be appropriate.
b. The City does not waive any claim of default by the Owner if the City does not
enforce or cancel this agreement. All other remedies at law or in equity which are
not otherwise provided for in this agreement or in the City’s regulations governing
historic properties are available to the City to pursue in the event that there is a
breach or default under this agreement. No waiver by the City of any breach or
default under this agreement shall be deemed to be a waiver of any other subsequent
breach thereof or default herein under.
c. By mutual agreement, City and Owner may enter into mediation or binding
arbitration to resolve disputes or grievances growing out of this contract.
Section 8. Binding Effect of Agreement. The Owner hereby subjects the historic building
located at 1214 Mill Street, San Luis Obispo, California, Assessor’s Parcel Number 001-212-013,
to the covenants, reservations, and restrictions as set forth in this agreement. The City and Owner
hereby declare their specific intent that the covenants, reservations, and restrictions as set forth
herein shall be deemed covenants running with the land and shall pass to and be binding upon the
Owner ’s successors and assigns in title or interest to the historic property. Every contract, deed,
or other instrument hereinafter executed, covering or conveying the historic property or any
portion thereof, shall conclusively be held to have been executed, de livered, and accepted subject
to the covenants, reservations, and restrictions expressed in this agreement regardless of whether
such covenants, restrictions, and reservations are set forth in such contract, deed, or other
instrument.
Section 9. Notice. Any notice required by the terms of this agreement shall be sent to the address
of the respective parties as specified below or at other addresses that may be later specified by the
parties hereto.
To City: Community Development Director
City of San Luis Obispo
919 Palm Street
San Luis Obispo, CA 93401
To Owner: Larry Brooks
1214 Mill Street
San Luis Obispo CA 93401
Section 10. General Provisions.
a. None of the terms, provisions, or conditions of this agreement shall be deemed to
create a partnership between the parties hereto and any of their heirs, successors, or
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assigns, nor shall such terms, provisions, or conditions cause them to be considered
joint ventures or members of any joint enterprise.
b. The Owner agrees to hold the City and its elected and appointed officials, officers,
agents, and employees har mless from liability for damage or from claims for
damage for personal injuries, including death, and claims for property damage
which may arise from the direct or indirect use or activit ies of the Owner, or from
those of his contractor, subcontractor, agent, employee, or other person acting on
the Owner’s behalf which relates to the use, operation, maintenance, or
improvement of the historic property. The Owner hereby agrees to and shall defend
the City and its elected and appointed officials, officers, agents, and employees with
respect to any and all claims or actions for damages caused by, or alleged to have
been caused by, reason of the Owner’s activities in connection with the historic
property, excepting however any such claims or actions which are the result of the
sole negligence or willful misconduct of City, its officers, agents, or employees.
c. This hold harmless provision applies to all damages and claims for damages
suffered, or alleged to have been suffered, and costs of defense incurred, by reason
of the operations referred to in this agreement regardless of whether or not the City
prepared, supplied, or approved the plans, specifications, or other documents for
the historic property.
d. All of the agreements, rights, covenants, reservations, and restrictions contained in
this agreement shall be binding upon and shall inure to the benefit of the parties
herein, their heirs, successors, legal representatives, assigns, and all persons
acquiring any part or portion of the historic property, whether by operation of law
or in any manner whatsoever.
e. In the event legal proceedings are brought by any party or parties to enforce or
restrain a violation of any of the covenants, reservations, or restrictions contained
herein, or to determine the rights and duties of any party hereunder, the prevailing
party in such proceeding may recover all reasonable attorney’s fees to be fixed by
the court, in addition to court costs and other relief ordered by the court.
f. In the event that any of the provisions of this agreement are held to be unenforceable
or invalid by any court of competent jurisdiction, or by subsequent preemptive
legislation, the validity and enforceability of the remaining provisions, or portions
thereof, shall not be affected thereby.
g. This agreement shall be construed and governed in accordance w ith the laws of the
State of California.
Section 11. Amendments. This agreement may be amended, in whole or in part, only by a written
recorded instrument executed by the parties hereto.
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Section 12. Recordation and Fees. No later than twenty (20) days after the parties enter into this
agreement, the City shall cause this agreement to be recorded in the office of the County Recorder
of the County of San Luis Obispo. Participation in the program shall be at no cost to the Owner;
however, the City may charge reasonable and necessary fees to recover direct costs of executing,
recording, and administering the historical property contracts.
IN WITNESS WHEREOF, the City and Owner have executed this agreement on the day
and year written above.
OWNER
____________________________________ ______________________________
Larry Brooks Date
CITY OF SAN LUIS OBISPO
____________________________________ ______________________________
Mayor Heidi Harmon Date
Pursuant to authority conferred by Resolution No. __________(2018 Series)
ATTEST:
______________________________
Teresa Purrington
City Clerk
APPROVED AS TO FORM:
______________________________
J. Christine Dietrick
City Attorney
ALL SIGNATURES MUST BE NOTARIZED
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EXHIBIT “A”
MAINTENANCE AND IMPROVEMENT MEASURES
FOR THE TERESA TORRES TRUE HOUSE LOCATED AT 1214 MILL STREET,
SAN LUIS OBISPO, CALIFORNIA
Owner shall preserve, maintain, and repair the historic building, including its character -defining
architectural features in good condition, to the satisfaction of the Community Development
Director or designee, pursuant to a Mills Act Preservation Contract wit h the City of San Luis
Obispo for property located at 1214 Mill Street. Character-defining features shall include, but are
not limited to: roof, eaves, dormers, trim, porches, walls and siding, architectural detailing, doors
and windows, window screens and shutters, balustrades and railings, foundat ions, and surface
treatments.
Owner agrees to make the following improvements and/or repairs during the term of this contract
but in no case later than ten (10) years from the contract date. All changes or repairs shall be
consistent with the City’s Historic Preservation Ordinance and the Secretary of the Interior’s
Standards for the Treatment of Historic Properties:
▪ Replace roof of primary dwelling; add insulation and install a hot air exhaust fan;
▪ Drainage improvements, including sump and pump under house to address occasional
flooding problems;
▪ Repainting: exterior and interior
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EXHIBIT “B”
Legal Description
For APN/Parcel ID(s): 001-212-013
THE LAND REFERRED TO HEREIN BELOW IS SITUATED IN THE CITY OF SAN
LUIS OBISPO, COUNTY OF SAN LUIS OBISPO, STATE OF CALIFORNIA AND IS
DESCRIBED AS FOLLOWS:
COMMENCING AT A POINT ON THE NORTHERLY LINE OF MILL STREET IN SAID
CITY, SAID POINT BEING 50 FEET EASTERLY FROM THE NORTHEASTERLY
CORNER OF MILL AND TORO STREETS AND RUNNING THENCE
NORTHEASTERLY ALONG SAID NORTHERLY LINE OF MILL STREET, 50 FEET;
THENCE AT RIGHT ANGLES NORTHWESTERLY 117 FEET; THENCE AT RIGHT
ANGLES SOUTHWESTERLY AND PARALLEL WITH MILL STREET, 50 FEET;
THENCE AT RIGHT ANGLES SOUTHEASTERLY 117 FEET TO THE POINT OF
BEGINNING AND BEING A PART OF LOT 4, BLOCK 39 IN SAID CITY, AS SHOWN
ON THE OFFICIAL MAP OF SAID CITY ON FILE IN THE OFFICE OF THE COUNTY
RECORDER OF SAID COUNTY.
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Historic Property Preservation Agreement
1214 Mill Street
Page 9
State of California }
County of San Luis Obispo }
On________________, before me __________________________________________,
Date Name and Title of the Officer
personally appeared, _____________________________________________________,
Name of Signer(s)
who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are
subscribed to the within instrument and acknowledged to me that he/she/they executed the same in
his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the
person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.
I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing
paragraph is true and correct.
WITNESS my hand and official seal.
Signature __________________________________
Signature of Notary Public Place Notary Seal Above
State of California }
County of San Luis Obispo }
On________________, before me __________________________________________,
Date Name and Title of the Officer
personally appeared, _____________________________________________________,
Name of Signer(s)
who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are
subscribed to the within instrument and acknowledged to me that he/she/they executed t he same in
his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the
person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.
I certify under PENALTY OF PERJURY under the laws o f the State of California that the foregoing
paragraph is true and correct.
WITNESS my hand and official seal.
Signature __________________________________
Signature of Notary Public Place Notary Seal Above
A Notary Public or other officer completing this certificate verifies only the identity of the individual who signed the
document to which this certificate is attached and not the truthfulness, accuracy, or validity of that document.
A Notary Public or other officer completing this certificate verifies only the identity of the individual who signed the
document to which this certificate is attached and not the truthfulness, accuracy, or validity of that document.
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Meeting Date: 11/27/2018
FROM: Deanna Cantrell, Police Chief
Prepared By: Jeff Smith, Police Captain
Victoria Tonikian, Management Fellow
SUBJECT: HOMELESS SHELTER CRISIS DECLARATION
RECOMMENDATIONS
1. Adopt a Resolution (Attachment A) declaring a homeless shelter crisis in the C ity of San
Luis Obispo pursuant to the Homeless Emergency Aid Program under SB 850 ; and
2. If a homeless shelter crisis is declared, authorize the City Manager to submit eligible services
and programs for funding from the Homeless Emergency Aid Program under SB 850; and
3. If the funding is awarded, authorize the City Manager to execute all funding related
documents and authorize the Finance Director to make the necessary budget adjustments
upon the award of the funding.
DISCUSSION
Background
The California Governor and Legislature have provided funding to local governments under the
Homeless Emergency Aid Program (HEAP) as part of SB 850 , enacted on June 27, 2018 and the
2018-19 Budget Act (Chapter 48, Statutes of 2018). HEAP is a one-time, $500 million block
grant program designed to provide direct assistance to cities and counties to address
homelessness throughout California. HEAP funds are intended to provide funding to Continuums
of Care (CoCs) to address the homelessness crisis in California. Formula funding estimates for
the local CoCs in San Luis Obispo County total approximately $4.8 million separated into the
following categories:
1. $4,000,000 – Based on Point in Time County Ranges [SB 850: Section 2, Chapter 5,
50213 (a)]
2. $837,814 – Based on Percent o f Homeless Population [SB 850: Section 2, Chapter 5,
50213 (b)]
Based on the HEAP Grant Program Guidance, a shelter crisis declaration is required for all cities
and counties within the CoC that wish to receive HEAP funds. As defined by Chapter 7.8 of
Division 1 of Title 2 of the Government Code, a “declaration of shelter crisis ” means the duly
proclaimed existence of a situation in which a significant number of persons are without the
ability to obtain shelter, resulting in a threat to their health and sa fety.” While the County serves
as the “Collaborative Applicant” for the local CoC, the County may only declare a shelter crisis
for the unincorporated areas of the county. A shelter crisis declaration was adopted by the
County Board of Supervisors on November 6th. Cities within the county must take action by the
end of November to declare their own shelter crisis within their respective jurisdictions in time
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for the County’s December 31, 2018 application deadline to the State. To date, a shelter crisis
declaration was adopted in Arroyo Grande on September 25 th, Grover Beach on October 16th,
and Pismo Beach and Paso Robles on November 6th. Additionally, cities in other areas such as
Santa Maria and Santa Barbara are also adopting similar declarations.
Analysis of Issues
According to the 2017 San Luis Obispo County Homeless Census and Survey Comprehensive
Report (Point in Time County), there were 411 homeless individuals identified in the City of San
Luis Obispo in 2017. For reference, there were a total of 1,125 homeless individuals identified in
all of San Luis Obispo County.
Declaration of a shelter crisis provides the City with the following opportunities with regards to
homeless services:
1. Eligibility to become a direct recipient of HEAP funds from the local Continuum of Care
(CoC)
2. If the City does not become a direct recipient of HEAP funds, funds can be spent by the
CoC within the City for capital projects finished before June 30, 2021, or for rental
assistance or rental subsidies.
Homeless Emergency Aid Program
As referenced earlier, HEAP provides a total of $500 million in one -time funding to local
governments for immediate emergency assistance to people experiencing homelessness or are at
imminent risk of homelessness. Eligible uses of the funds include, but are not limited to, the
following:
1. Homelessness prevention activities
2. Criminal justice diversion programs for homeless individuals with mental health needs
3. Establishing or expanding services meeting the needs of homeless youth or youth at r isk
of homelessness
4. Emergency aid
The parameters of the program are intentionally broad and allow local communities to be
creative and craft programs that meet the specific needs they have identified. Although some
funds from the HEAP program can be spent in jurisdictions that have not declared a shelter
crisis, declaring a shelter crisis does specifically expand the programs available to receive
support or allows the City to develop its own programs and submit proposals for those programs
to become a direct recipient of HEAP funds. Expanded programs include using funds for capital
construction projects or towards rental assistance and rental subsidies.
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The chart above demonstrates the flow from HEAP funds to cities and counties.
Lastly, award of HEAP funds under SB 850 are intended to move quickly as the Business,
Consumer Services, and the Housing Agency (Agency) will make a first round of awards by
January 31, 2019, and a second round of awards by May 31, 2019. Any unallocated funds
following the second round will revert to the State’s General Fund. Also, The HEAP statue
mandates that 50 percent of the awarded funds must be contractually obligated by January 1,
2020 and 100% of the funds must be expended by June 30, 2021. Due to this rapid timeline to
disburse funds, the process to develop a system to review and select programs and services
within the San Luis Obispo County CoC or to individual cities as part of the application to the
Agency has already begun with coordination between the County, cities, and nonprofit homeless
services organizations.
As part of this process, CoCs must demonstrate that a local collaborative effort has been
conducted prior to application submission. A collaborate process may include, but is not limited
to, a public meeting, regional homeless taskforce meeting, and letters of support with signatures
of endorsement, an adopted homeless plan, and an adopted budget that included HEAP funds.
Proof of a public process may include sign-in sheets, meeting minutes and agendas, among other
items. It is important that a wide enough range of participants are consulted as part of this
process. Participants should include representatives of the local homeless population.
The City and the County have worked together in the past regarding homelessness in San Luis
State
San Luis Obispo Continuum
of Care (CoC)
To services
throughout the CoC
To Capital Projects
or to Rental
Assistance and
Rental Subsidies in
areas that have
designated a shelter
crisis
Cities that wish to be
direct recipients of
HEAP Funds
(declaration of shelter
crisis required)
To services or projects
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Obispo and in 2008 derived the San Luis Obispo Countywide 10-Year Plan to End
Homelessness. Currently, City staff has been actively working with the County and has attended
a stakeholder session regarding Homeless Engagement, Shelter Services, & Subsidies and a
session regarding Housing Development & Financing. These sessions provide a great open
dialogue between the County and our organization. Additionally, the County hosted four public
forums, one geared towards the North County and the other geared towards the South County.
These forums provided valuable insight into what our communities feel needs to be prioritized in
terms of potential projects and eligible activities. They were held on October 23rd and 25th San
Luis Obispo and on November 7th in the South County and November 13th in the North County.
City Staff attended the meetings in San Luis Obispo.
Due to the rapid timeline to disperse funding, staff is requesting that Council authorize t he City
Manager to submit proposals of these projects and eligible activities for funding from HEAP
without having to return to Council to present these projects and eligible activities. Additionally,
if this recommendation is approved and funding from HEAP is awarded, staff is requesting that
Council authorize the City Manager to execute all funding related documentation and authorize
the Finance Director to make the necessary budget adjustments upon the award of the grant.
ENVIRONMENTAL REVIEW
The California Environmental Quality Act does not apply to the recommended actions in this
report, because the action does not constitute a “Project” under CEQA Guidelines sec. 15378.
FISCAL IMPACT
Adopting a Resolution declaring a shelter crisis enables the Cit y to be eligible for State funding
under the Homeless Emergency Aid Program. The exact amount would be determined as part of
the HEAP funding award process.
ALTERNATIVES
The City Council may choose not to adopt this resolution. This is not recommended as an
alternative because declaring a homeless shelter crisis will provide the City with the maximum
opportunity to provide aid to homeless individuals in the future.
Attachments:
a – Resolution declaring the City of San Luis Obispo in a shelter crisis
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R ______
RESOLUTION NO. _____ (2018 SERIES)
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS
OBISPO, CALIFORNIA, DECLARING A SHELTER CRISIS PURSUANT
TO SB 850 (CHAPTER 48, STATUES OF 2018 AND GOVERNMENT CODE
SECTION 8698.2)
WHEREAS, California’s Governor Edmund G. Brown Jr., and the members of the
California Legislature have recognized the urgent and immediate need for funding at the local level
to combat homelessness; and
WHEREAS, the Governor and the Legislature have provided funding to local
governments under the Homeless Emergency Aid Program as part of SB 850 and the 2018 -19
Budget Act (Chapter 48, Statues of 2018); and
WHEREAS, the Governor and Legislature requires jurisdictions seeking an allocation
through the Homeless Emerge ncy Aid Program to declare a Shelter Crisis pursuant to Government
Code §8696.2; and
WHEREAS, the City of San Luis Obispo has in partnership with the County of San Luis
Obispo and other regional non-profit partners; a homelessness plan as part of the regional San Luis
Obispo Countywide 10-Year Plan to End Homelessness and has undertaken multiple efforts at the
local level to combat homelessness; and
WHEREAS, the City in partnership with the County of San Luis Obispo and other
community partners, helped to raise funds to build a new homeless shelter at 40 Prado Road; and
WHEREAS, this new facility will provide wrap around services and new capacity to
support the population and yet new resources are needed to meet the needs of San Luis Obispo ;
and
WHEREAS, the City Council finds that the 2017 Point in Time Count found a total of 411
people experiencing homelessness within the City of San Luis Obispo who were living without
shelter at that time; and
WHEREAS, the City Council finds that a significant number of persons within the City
of San Luis Obispo are without the ability to obtain shelter, and that the situation has resulted in a
threat to the health and safety of those persons; and
WHEREAS, the City Council affirms the City’s commitment to combatting homelessness
and creating or augmenting a continuum of shelter and service options for those living without
shelter in our communities.
NOW, THEREFORE, BE IT RESOLVED by the Council of the City of San Luis Obispo
as follows:
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Resolution No. _____ (2018 Series) Page 2
R ______
SECTION 1. The City of San Luis Obispo does hereby find and declare the existence of
a shelter crisis, pursuant to Government Code §8698.2, in the City of San Luis Obispo, and
authorizes the City of San Luis Obispo’s participation the Homeless Emergency Aid Program.
Upon motion of _______________________, seconded by _______________________,
and on the following roll call vote:
AYES:
NOES:
ABSENT:
The foregoing resolution was adopted this _____ day of _____________________ 2018.
____________________________________
Mayor Heidi Harmon
ATTEST:
____________________________________
Teresa Purrington
City Clerk
APPROVED AS TO FORM:
_____________________________________
J. Christine Dietrick
City Attorney
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City
of San Luis Obispo , California, this ______ day of ______________, _________.
____________________________________
Teresa Purrington
City Clerk
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Meeting Date: 11/27/2018
FROM: Robert Hill, Interim Deputy Director, Office of Sustainability
Prepared By: Chris Read, Sustainability Manager
SUBJECT: ADOPTION OF AN ORDIN ANCE TO AUTHORIZE THE
IMPLEMENTATION OF A COMMUNITY CHOICE ENERGY PROGRAM
RECOMMENDATION
1. Adopt Ordinance No. 1656 (2018 Series) entitled “An Ordinance of the City Council of the
City of San Luis Obispo, California, repealing the existing community choice aggregation
ordinance and authorizing the implementation of a community choice aggregation program
by participating in Monterey Bay Community Power’s community choice aggregation
program” (Attachment A).
2. Adopt a Resolution entitled, “A Resolution of the City Council of the City of San Luis
Obispo, California, terminating the Central Coast Community Energy Joint Powers
Agreement on behalf of the city of San Luis Obispo” (Attachment B).
3. Authorize the Mayor to execute an Agreement entitled, “An Agreement between the City of
San Luis Obispo and the City of Morro Bay terminating the Joint Exercise of Powers
Agreement Establishing Central Coast Community Energy” (Attachment C).
DISCUSSION
Community Choice Energy Ordinance
Community Choice Energy (CCE, referred to in California Public Utility Code as “community
choice aggregation”), authorized by Assembly Bill 117, is a state law that allows cities, counties
and other authorized entities to aggregate electricity demand within their jurisdictions to
purchase and/or generate electricity supplies for residents and businesses within their jurisdiction
while maintaining the existing electricity provider for physical transmission and distribution
services.
As discussed at the November 13, 2018 City Council meeting, the City of San Luis Obispo has
been studying potential benefits and risks associated with CCE since 2013. On September 18,
2018 the City Council approved Resolution No. 10943 (2018 series) approving the joint powers
agreement creating Central Coast Community Energy (CCCE) on behalf of the City of San Luis
Obispo and in partnership with the City of Morro Bay for the purpose of implementing a
community choice energy program. On October 11, 2018 the California Public Utilities
Commission amended the Power Charge Indifference Adjustment, which negatively impacted
CCCE’s ability to develop a program with the desired f inancial and environmental benefit. In
response, staff engaged Monterey Bay Community Power (MBCP), which is an established
community choice energy program capable of providing the desired financial and environmental
benefits. On November 7, 2018, the CCCE Board of Directors unanimously voted to direct staff
to staff to return to member cities with request to join MBCP. On November 13, 208, the City
Council voted 5-0 to join MBCP.
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Section 366.2(c)(12)(B) of the Public Utilities Code expressly contemplates the creation of a
Joint Powers Authority (JPA) so that counties and cities can “participate as a group in a
community choice aggregation program.” California cities and counties can exercise this option
by doing two things: 1) entering into a Joint Powers Agreement forming a JPA under Section
6500, et seq. of the Government Code; and 2) adopting an Ordinance electing to implement a
community choice program within its jurisdiction as required by Section 366.2(c)(12)(A).
On November 13, 2018 the City Council voted 5-0 to:
1. Adopt a resolution to join a JPA called Monterey Bay Community Power (MBCP) for the
purpose of implementing a CCE program;
2. Introduce Ordinance No. 1656 (2018 Series) to rescind the existing ordinance naming CCCE
as the implementing agency, and adopt a new ordinance establishing MBCP as the City’s
CCE program provider.
The Ordinance is now ready for adoption and will become effective on December 27, 2018.
Termination of Central Coast Community Energy
CCCE was established to host a regional CCE program. As the program will now be hosted by
MBCP, staff recommends terminating the CCCE JPA. Section 6.4 of the CCCE Joint Exercise of
Powers Agreement says that, “This Agreement may be terminated by mutual agreement of all the
Parties; provided, ho wever, the foregoing shall not be construed as limiting the rights of a Party
to withdraw its participation in the CCE Program, as described in Section 6.1.” The only other
member of CCCE, Morro Bay, also intends to take City Council action to terminate the CCCE
Agreement .
Section 6.5 of the CCCE Joint Exercise of Powers Agreement says that, “Upon termination of
this Agreement, any surplus money or assets in possession of CCCE for use under this
Agreement, after payment of all liabilities, costs, expenses, and charges incurred under this
Agreement and under any program documents, shall be returned to the then-existing Parties in
proportion to the contributions made by each.” CCCE is free of all debts, liabilities, surplus
money, and asset. Attachment B provides the Resolution and Attachment C provides the
Agreement to terminate CCCE.
ENVIRONMENTAL REVIEW
The establishment of a CCE is exempt from the requirements of the California Environmental
Quality Act (“CEQA”) pursuant to the CEQA Guidelines, as it is not a “project” as it has no
potential to result in a direct or reasonably foreseeable indirect physical change to the
environment because energy will be transported through existing infrastructure (14 Cal. Code
Regs. § 15378(a)). Further, establishing a CCE is exempt from CEQA as there is no possibility
that this it would have a significant effect on the environment (14 Cal. Code Regs. §
15061(b)(3)). Further, the establishment of a CCE is also categorically exempt because it is an
action taken by a regu latory agency to assume the maintenance, restoration, enhancement or
protection of the environment (14 Cal. Code Regs. § 15308).
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FISCAL IMPACT
The City set aside $250,000 in carryover funding from the fiscal year 2017-18 budget. At the
November 13, 2018 City Council meeting, staff requested that this set aside be used to cover
approximately $66,000 ($30,000 in TEA consultant fees, $15,000 in outside legal counsel fees,
$6,000 for a contract extension with LEAN Energ y, and $15,000 to repay MBCP for updating
their Implementation Plan). There are no known additional direct costs.
ALTERNATIVES
1. Reject the proposed ordinance. The City Council may reject the proposed ordinance, which
would effectively end the City’s pursuit of CCE.
2. Reject the proposed resolution. The City Council may choose to retain the Central Coast
Community Energy JPA. Staff does not recommend this as retaining the JPA would require
administrative costs without providing any clear benefit.
Attachments:
a - CCE Implementing Ordinance
b - Resolution Terminating Central Coast Community Energy
c - Agreement Terminating Central Coast Community Energy
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O ______
ORDINANCE NO. 1656 (2018 SERIES)
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SAN LUIS
OBISPO, CALIFORNIA, REPEALING THE EXISTING COMMUNITY
CHOICE AGGREGATION ORDINANCE AND AUTHORIZING THE
IMPLEMENTATION OF A COMMUNITY CHOICE AGGREGATION
PROGRAM BY PARTICIPATING IN MONTEREY BAY COMMUNITY
POWER’S COMMUNITY CHOICE AGGREGATION PROGRAM
WHEREAS, on December 12, 2017, the City Council directed staff to investigate the
feasibility and formation of a Community Choice Aggregation (CCA) program under the
provisions of the Public Utilities Code Section 366.2 in order to provide electric service to
customers within the City of San Luis Obispo with the intent of achieving reduced greenhouse gas
emissions, local renewable power development, competitive electric rates, and the implementation
of energy conservation and other energy programs ; and
WHEREAS, the City of San Luis Obispo commissioned a technical study showing that a
CCA program serving the City and surrounding communities would prov ide several benefits,
including:
▪ Providing customers a choice of power providers and power supply options;
▪ Increasing local control and involvement in energy rates and other energy-related
matters;
▪ Providing stable electric rates that are competitive with those provided by the
incumbent utility;
▪ Reducing greenhouse gas emissions arising from electricity use within the City and
surrounding region;
▪ Increasing local renewable generation capacity;
▪ Increasing energy conservation and efficiency projects and programs;
▪ Increasing regional energy self-sufficiency;
▪ Improving the local economy resulting from the implementation of a CCA program
and local renewable and energy efficiency projects over time; and
WHEREAS, on September 18, 2018 the Cities of San Luis Obispo and Morro Bay, formed
a Joint Powers Authority called Central Coast Community Energy (“CCCE.”) to host a CCA
program; and
WHEREAS, on October 2, 2018 the City of San Luis Obispo adopted Ordinance No. 1654
(2018 Series) as required by Public Utilities Code section 366.2 authorizing the implementation of
a Community Choice Aggregation program through CCCE; and
WHEREAS, on October 11, 2018 the California Public Utilities Commission amended
the Power Charge Indifference Adjustment, which negatively impacted CCCE’s ability to develop
a program with the desired financial and environmental benefit ; and
WHEREAS, Monterey Bay Community Power (MBCP) is an established CCA program
capable of providing the desired financial and environmental benefits, and
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Ordinance No. 1656 (2018 Series) Page 2
O ______
WHEREAS, MBCP will enter into Agreements with electric power suppliers and other
service providers, and based upon those Agreements MBCP will be able to provide power to
residents and businesses at rates that are competitive with those of the incumbent utility (“PG&E”).
Once the California Public Utilities Commission certifies the amended Implementation Plan
adopted by MBCP, MBCP will be able to provide service to customers within the City of San Luis
Obispo; and
WHEREAS, under Public Utilities Code section 366.2, customers have the right to opt -
out of a CCA program and continue to receive service from the incumbent utility. Customers who
wish to receive service from the incumbent utility will be able to do so; and
WHEREAS, on November 13 and November 27, the City Council held public hearings
on the manner in which San Luis Obispo will participate in a CCA program at which time
interested persons had an opportunity to testify either in support of or opposition to the
implementation of a CCA program serving the City of San Luis Obispo through MBCP; and
WHEREAS, this ordinance is exempt from the requirements of the California
Environmental Quality Act (CEQA) pursuant to the CEQA Guidelines, as it is not a “project” as
it has no potential to result in a direct or reasonably foreseeable indirect physical change to the
environment. (14 Cal. Code Regs. § 15378(a)). Further, the ordinance is exempt from CEQA as
there is no possibility that the ordinance or its implementation would have a significant effect on
the environment. (14 Cal. Code Regs. § 15061(b)(3)). The ordinance is also categorically exempt
because it is an action taken by a regulatory agency to assume the maintenance, restoration,
enhancement or protection of the environment. (14 Cal. Code Regs. § 15308).
NOW, THEREFORE, BE IT ORDAINED by the Council of the City of San Luis Obispo
as follows:
SECTION 1. The above recitations are true and correct and material to this Ordinance.
SECTION 2. Repeal of Ordinance No. 1654 (2018 Series). Based upon the forgoing, the
City Council hereby repeals Ordinance No. 1654 (2018 Series)
SECTION 3. Authorization to Implement a Community Choice Aggregation Program.
Based upon the forgoing, and in order to provide business es and residents within the City of San
Luis Obispo with a choice of power providers and with the benefits described above, the City
Council hereby elects to implement a community choice aggregation program within the
jurisdiction of the City by participating as a group in the Community Choice Aggregation Program
of Monterey Bay Community Power, as generally described in its Joint Powers Agreement.
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Ordinance No. 1656 (2018 Series) Page 3
O ______
SECTION 4. This Ordinance shall be in full force and effective 30 days after its adoption
and shall be published and posted as required by law.
INTRODUCED on the ____ day of ____, 2018, AND FINALLY ADOPTED by the
Council of the City of San Luis Obispo on the ____ day of ____, 2018, on the following vote:
AYES:
NOES:
ABSENT:
____________________________________
Mayor Heidi Harmon
ATTEST:
____________________________________
Teresa Purrington
City Clerk
APPROVED AS TO FORM:
_____________________________________
J. Christine Dietrick
City Attorney
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City
of San Luis Obispo , California, this ______ day of ______________, _________.
______________________________
Teresa Purrington
City Clerk
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R ______
RESOLUTION NO. _____ (2018 SERIES)
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS
OBISPO, CALIFORNIA, TERMINATING THE CENTRAL COAST
COMMUNITY ENERGY JOINT POWERS AGREEMENT ON BEHALF
OF THE CITY OF SAN LUIS OBISPO
WHEREAS, on September 18, 2018 the City Council approved Resolution No. 10943
(2018 series) approving the Joint Exercise of Power Agreement Relating to and Creating Central
Coast Community Energy (CCCE) on behalf of the City of San Luis Obispo for the purpose of
implementing a community choice energy program; and
WHEREAS, on October 11, 2018 the California Public Utilities Commission amended
the Power Charge Indifference Adjustment, which negatively impacted CCCE’s ability to develop
a program with the desired financial and environmental benefit; and
WHEREAS, Monterey Bay Community Power (MBCP), a joint powers authority, is an
established community choice energy program capable of providing the desired financial and
environmental benefits, and
WHEREAS, on November 7, 2018, the CCCE Board of Directors unanimously voted to
direct staff to staff to return to the member cities with a request to join MBCP; and
WHEREAS, on November 13, 2018, the City Council voted 5-0 to join MBCP; and
WHEREAS, Section 6.4 of the CCCE Joint Exercise of Powers Agreement provides that
the Agreement may be terminated by mutual agreement of all the Parties; and
WHEREAS, the only other member of CCCE, Morro Bay, intends to take City Council
action to terminate the CCCE Agreement;
WHEREAS, Section 6.5 of the CCCE Joint Exercise of Powers Agreement says that,
“Upon termination of this Agreement, any surplus money or assets in possession of CCCE for use
under this Agreement, after payment of all liabilities, costs, expenses, and charges incurred under
this Agreement and under any program documents, shall be returned to the then-existing Parties
in proportion to the contributions made by each.”; and
WHEREAS, CCCE is free of all debts, liabilities, surplus money, and assets.
NOW, THEREFORE, BE IT RESOLVED by the Council of the City of San Luis Obispo
that :
SECTION 1. The City Council hereby approves the termination of the Joint Exercise of
Powers Agreement Relating to and Creating Central Coast Community Energy (the “JPA
Agreement”), and authorizes the Mayor to enter into the written agreement with the City of Morro
Bay, attached hereto, formally terminating the JPA Agreement.
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Resolution No. _____ (2018 Series) Page 2
R ______
SECTION 2. This resolution and the termination of the Central Coast Community Energy
Authority is exempt from the requirements of the California Environmental Quality Act (CEQA)
pursuant to the State CEQA Guidelines, as it is not a “project” since this action involves
organizational and administrative activities of government that will not result in direct or indirect
physical changes in the environment. (14 Cal. Code Regs. § 15378(b)(5)).
SECTION 3. This resolution shall be effective immediately upon passage and adoption.
Upon motion of _______________________, seconded by _______________________,
and on the following roll call vote:
AYES:
NOES:
ABSENT:
The foregoing resolution was adopted this _____ day of _____________________ 2018.
____________________________________
Mayor Heidi Harmon
ATTEST:
____________________________________
Teresa Purrington
City Clerk
APPROVED AS TO FORM:
_____________________________________
J. Christine Dietrick
City Attorney
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City
of San Luis Obispo , California, this ______ day of ______________, _________.
____________________________________
Teresa Purrington, City Clerk
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AN AGREEMENT BETWEEN THE CITY OF SAN LUIS OBISPO AND
THE CITY OF MORRO BAY TERMINATING THE JOINT EXERCISE
OF POWERS AGREEMENT ESTABLISHING CENTRAL COAST
COMMUNITY ENERGY
This Termination Agreement is made and entered into this _______ day of November 2018
by and between the City of San Luis Obispo and the City of Morro Bay (hereinafter
collectively referred to as the “Parties”).
WHEREAS, the City of San Luis Obispo and the City of Morro Bay entered into a Joint
Exercise of Powers Agreement, effective October 5, 2018, establishing Central Coast Community
Energy (CCCE); and
WHEREAS, on October 11, 2018, the California Public Utilities Commission amended
the Power Charge Indifference Adjustment, which negatively impacted CCCE’s ability to develop
a program with the desired financial and environmental benefits; and
WHEREAS, Monterey Bay Community Power (MBCP), a joint powers authority, is an
established community choice energy program capable of providing the desired financial and
environmental benefits, and
WHEREAS, on November 13, 2018, the City Councils for both San Luis Obispo and
Morro Bay voted 5-0 to join MBCP; and
WHEREAS, Section 6.4 of the CCCE Joint Exercise of Powers Agreement provides that
such Agreement may be terminated by mutual agreement of all the Parties; and
WHEREAS, the Parties are the only members of CCCE, and have the authority to
terminate the CCCE Joint Exercise of Powers Agreement pursuant to this Agreement; and
WHEREAS, CCCE is free of all debts, liabilities, surplus money, and assets and therefore
no further actions are required by the Parties when the Joint Exercise of Powers Agreement is
hereby terminated.
NOW, THEREFORE, in consideration of the mutual promises, covenants, and conditions
hereinafter set forth, it is agreed by and between the Parties as follows:
SECTION 1. Pursuant to Section 6.4 of the Joint Exercise of Powers Agreement Relating
to and Creating Central Coast Community Energ y, effective October 5, 2018, the Parties hereby
terminate such Agreement effective upon the execution of this Termination Agreement by both
the City of San Luis Obispo and the City of Morro Bay.
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Page 2
CITY OF SAN LUIS OBISPO
____________________________________
Heidi Harmon, Mayor
CITY OF MORRO BAY
____________________________________
Jamie L. Irons, Mayor
ATTEST:
____________________________________
Teresa Purrington
City Clerk
ATTEST:
____________________________________
Dana Swanson
City Clerk
APPROVED AS TO FORM:
_____________________________________
J. Christine Dietrick
City Attorney
APPROVED AS TO FORM:
_____________________________________
Joseph W. Pannone
City Attorney
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Meeting Date: 11/27/2018
FROM: Michael Codron, Community Development Director
Prepared By: Rachel Cohen, Associate Planner
Natalie Harnett, Administrative Analyst
SUBJECT: REVIEW OF A FEE SCHEDULE AND EVALUATION CRITERIA FOR
CANNABIS BUSINESS OPERATOR PERMITS
RECOMMENDATION
1. Adopt a Resolution establishing a fee schedule for both one-time application and ongoing
costs for cannabis business operator permits (Attachment A); and
2. Adopt a Resolution establishing criteria to be used in the evaluation of applications for
cannabis bu siness operator permits (Attachments B and C).
DISCUSSION
Background
1. Previous Review
On May 15, 2018, the City Council adopted Ordinance 1647 (2018 Series) establishing overall
regulations for cannabis businesses in the City and identifying the zones w here various business
types are allowed. The regulations establish a two-step process that first requires certification of
eligible business operators, and then approval of a land use permit for the specific site.
2. City Council Direction
On October 16, 2018, the City Council met to discuss cannabis business operator application
requirements and criteria for ranking operators. No action was taken; however, the Council did
provide staff with a list of directional items to incorporate into revised criteria that are evaluated
in this report. Attachment D includes Council’s directional items and indicates how staff has
responded to this direction with its current recommendations.
3. Election Results
Election Day was November 6, 2018, and the residents of San Luis Obispo voted to authorize
Measure F-18, a cannabis business tax that levies taxes based on the area of canopy under
cultivation in the City and based on gross receipts for other types of cannabis business activities.
Once results are finally certified (estimated to be November 30, 2018), Ordinance 1647 (2018
Series) will be in effect.
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Operator Criteria and Costs of Services Analysis
1. Proposed Operator Criteria
There are three separate sets of criteria identified and incorporated into Attachment C for
Council’s consideration. Based on Council direction, the criteria for retail storefront operators,
cultivators, and other cannabis business types differ. In addition, testing labs will not be
evaluated based on specific criteria but will still be requir ed to submit an application for approval
to ensure minimum qualifications are met . Micro-businesses with a retail storefront will be
evaluated based on the retail storefront criteria. Micro -businesses that include cultivation will be
evaluated based on the cultivation criteria. If a micro -business does not include retail or
cultivation, it will be evaluated based on the manufacturing, non-storefront retail, and
distribution criteria.
Retail Storefronts
Ordinance 1647 (2018 Series) allows for three retail storefronts to be established in the City, no
less than 1,000 feet apart from one another, and located along arterial streets on property with the
appropriate zoning. Given these limitations, the selection of operators for retail storefronts is
anticipated to be extraordinarily competitive. The purpose of establishing criteria that will be
used to rank operators is to ensure the qualifications of the highest-ranking operators, as well as
to encourage new cannabis businesses to incorporate certain community benefit and social equity
practices into their business plans.
Cultivators
Commercial cannabis cultivation is limited to a maximum of 70,000 square feet of canopy in the
entire City, with no single grow larger than 10,000 square feet. Applications for cu ltivation are
expected to be less competitive than for retail storefronts because more businesses will be
permitted. In addition, Ordinance 1647 includes specific limitations and requirements for
cultivators (e.g. no outdoor cultivation, zero-net energy requirement) that will make it more
difficult to establish this type of cannabis business.
Manufacturing, Non-Storefront Retail, and Distribution
Other cannabis business types that are permitted by Ordinance 1647 (2018 Series) do not have
specific limitations in terms of number of operators or size of the operations. As a result, these
business types are not strictly competitive. The City still has an interest in ensuring that these
businesses are operated by qualified entities and operator permit applications are required.
Although not specifically limited in number, operator permits will only be issued to businesses
that meet the minimum qualifications and score at least 70% of the points attained by the top
application during the current application per iod.
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2. Cost of Services Analysis
Regulatory Framework
Regulatory fees must be based on a n assessment of the reasonable costs incurred to provide the
regulatory service. To accomplish this, staff worked with its consultant, MuniServices, to
identify the personnel, equipment and supply costs needed to implement the City’s various
regulat ions relating to the review of operator applications (e.g. implementation) and annual
review (ongoing operating costs). Through a collaborative process, City staff develo ped cost
estimates based on the amount of staff time and the direct costs of supplies and equipment
needed to evaluate applications and then conduct appropriate oversight of permitted businesses.
Costs Identified
The following table provides a summary of the costs identified by staff. These costs are
classified depending on when the cost is incurred by the City (e.g. at application versus during
ongoing operations). In order to identify these costs, some assumptions were made about the
number of applications that would be received (20) and the number of businesses that would be
established during the first year of operations (18). These assumptions will be evaluated after the
first year of operations to determine if adjustments should be made. The workload analysis
prepared by staff identifies additional staff resources needed to handle the projected workload
(two police officers, one temporary code enforcement officer, and one part-time, temporary
assistant planner).
Implementation1
Costs to be covered by a one-time application fee
Department
Application
Evaluation
Business License
Award
Hours Cost Hours Cost
Police 1848 $335,629 176 $31,969
Administration 66 $11,658 40 $13,989
Finance 49.5 $4,523 79 $3,618
Community Development 28.6 $6,527 92 $18,331
Fire 0 $0 20 $1,840
City Attorney 0.55 $115 0 $0
Information Technology 0 $0 1 $111
MuniServices 49.5 $9,900 20 $3,960
Total 2042 $368,351 340 $73,817
Total Cost $442,169
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1. Based on 20 cannabis business applications.
First Year Operations, Administration, and Regulatory Oversight1
Costs to be covered by an annual fee
Department Admin & Regulatory
Oversight2
General
Administration
Actions3
Industry Specific
Administration
Actions4
Equipment
& Supplies5
Hours Cost Hours Cost Hours Cost Cost
Police 844.8 $153,430 0 $0 1920 $348,744 $94,000
Administration 209 $36,916 198 $34,973 0 $0 $0
Finance 22 $2,010 649 $59,297 0 $0 $2,500
Community Development 188.1 $35,045 120 $22,779 3860 $448,384 $26,500
Fire 99 $9,200 396 $36,800 450 $41,818 $0
City Attorney 22 $4,582 22 $4,582 0 $0 $0
Information Technology 22 $2,212 6 $553 0 $0 $0
Total 1407 $243,396 1390 $158,984 6230 $838,946 $123,000
Total Costs $1,364,326
1. Based on 18 cannabis businesses.
2. Administration & Regulatory Oversight includes cannabis business training and education, staff training and
education, and community outreach.
3. General Administration Actions includes business review, coordination and oversight, monthly return processing,
fire safety and financial review.
4. Industry Specific Administration Actions includes cannabis business inspections and decoy operations based on the
specific cannabis business type.
5. Equipment & Supplies includes items such as laptop computers, dedicated vehicles, cell phones, surveillance
equipment, cash counting machine, office equipment, and inspection equipment and supplies.
Based on these costs, the application fees for new cannabis business operator permits is $22,519.
Retail stores are required to pay the full fee at the time of applic ation. For all business types , the
initial application fee will be 33% of the total, or $7,431. The balance of the fee would be due
and payable for the business to receive an approved operator permit. Annual fees will range from
$65,890 for distributors, non-storefront retailers, and testing labs to $90,575 for retail stores. A
complete fee schedule is included as an exhibit to Attachment A.
Comparison with Other Jurisdictions
The following table summarizes current license application costs for various business types that
are allowed in the City of San Luis Obispo, as compared with other jurisdictions that have
recently adopted similar fee schedules.
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Annual Permit Fee per License
San Luis Obispo $65,890 - $90,436
Oakland $2,790 - $11,173
San Jose $131,846 - $138,416+
Davis $20,805 - $42,359
Monterey County $1,028 - $9,021
Grover Beach $5,000 - $20,000
Sacramento $2,290 - $30,400
*California State $2,208 - $75,000
* State license fees paid separately and in addition to local fees
The City’s fees fall on the higher end of the jurisdictions evaluated. The difference in the City’s
fees relates to its policy to achieve 100% cost recovery, the extent of background investigations
that will be performed by the Police Department, and overall scope o f the regulations contained
in Ordinance 1647.
In addition to the City’s application and annual permit costs, cannabis businesses face costs
associated with licensing required by the State. The costs that businesses face from the State
licensing process vary depending on the license type and the size of the business. Attachment D
shows the California State Annual Commercial Cannabis Fee structure.
Policy Analysis
User fees are proposed to be set to accomplish 100% cost recovery level. High cost recovery user
fees are appropriate because of the level of service demand specific to potential cannabis
business activity, as indicated by the City’s policies for cost recovery contained in the Financial
Plan (Attachment E). The services that go into new canna bis businesses are regulatory in nature
and active enforcement is a best practice to ensure that regulatory requirements are met for this
new, fast changing industry. Based on input from other successful jurisdictions, proactive
oversight, operations monit oring, training, education, and inspections will be implemented to
encourage strict regulatory compliance in this emerging and dynamic industry. The City Council
may, at any time, choose to reduce or establish different user fees if desired.
CONCURRENCES
A steering committee of City staff members including the Community Development Director,
City Attorney, Police Chief, Fire Chief, and Finance Director was convened to guide the process
of developing regulations for consideration by the City Council.
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ENVIRONMENTAL REVIEW
SB 94 amends the Business and Professions Code to exempt from CEQA review the adoption of
an ordinance, rule, or regulation by a local jurisdiction requiring discretionary review and
approval of permits and licenses for commercial canna bis activity (until July 1, 2019).
Depending on the nature of the activity for which an application is received, individual project
level environmental review may be required.
FISCAL IMPACT
The recommended fees are intended to accomplish 100% cost recovery for the City’s efforts to
process applications and regulate businesses permitted under the City regulations. As a result, the
proposed actions are intended to eliminate the fiscal impact associated with City efforts to permit
and regulate commercial cannabis business activities in the City. These efforts will also enable
substantial economic activity associated with the new cannabis industry and produce additional
tax revenue to support the City’s General Fund.
As legal cannabis sales and production is an emerging industry, staff has worked with two
different consultants, HdL and MuniServices, to develop an estimated amount of revenue to
expect from a cannabis business tax. Optimistically, cannabis business activities would begin at
the earliest in February or March 2019. However, it is expected to take some time for the City to
establish its permitting and regulatory protocols, and for businesses to find appropriate properties
and obtain the necessary permits to operate.
As a result, tax revenues fro m cannabis businesses are anticipated to increase to $1,500,000
through the next several years as businesses mature. Cannabis business tax revenue estimates
have been included in the City’s Fiscal Health Response Plan presented to Council on April 17,
2018. The plan includes an estimate of $100,000 for FY 2018-19. Tax revenues are intended to
support general services. Fees are designed to recover the specific and reasonable costs related
to the review and evaluation of permits and the ongoing related costs to ensuring compliance
with applicable regulations consistent with adopted Council financial policies. Should Council
approve both the application and ongoing regulatory fees, Staff intends to return as part of the
mid-year budget update with the necessar y budget amendments to add the forecasted additional
regulatory and application fee revenues and add contract positions to meet the anticipated
workload to both process applications and begin the administration of regulations.
ALTERNATIVES
1. Modify the Proposed Resolution. The City Council has the latitude to make modifications
to the Cannabis Operator Permit Application Requirements and Ranking Criteria and the
proposed Fee Schedule. The Council has the policy discretion to adjust fees and Staff will be
prepared to offer any ideas for any adjustments and overall the Council has the ability to
make modifications during the meetings.
2. Continue Consideration of the Resolution to a Future Date. The City Council could direct
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staff to conduct additional research or outreach on more or more components of the
recommended resolution. If this alternative is taken, the Council should provide direction to
staff regarding additional information needed to move forward.
Attachments:
a - Fee Study Resolution
b - Evaluation Criteria Resolution
c - Cannabis Scoring Worksheet (Exhibit A)
d - Response to Council Direction
e - California State License Categories and Fees
f - Financial Plan Cost Recovery Policies
g - Draft Commercial Cannabis Business Operators Permit Application
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R ______
RESOLUTION NO. _______ (2018 SERIES)
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS
OBISPO, CALIFORNIA, AMENDING THE CITY’S MASTER FEE
SCHEDULE WITH UPDATED USER AND REGULATORY FEES FOR
VARIOUS COMMERCIAL CANNABIS BUSINESS ACTIVITIES
WHEREAS, it is the City’s policy (User Fee Recovery Goals - Financial Plan Section H)
to assess service charges based on specific policies for cost recovery of services provided ; and
WHEREAS, on May 15, 2018, the City Council adopted Ordinance No. 1647 (2018
Series) establishing a comprehensive regulatory program for the evaluation and permitting of
commercial cannabis business operations within the City; and
WHEREAS, Section 9.10.050 of the Municipal Code says that the City Council shall adopt
fees necessary to implement the regulations in relation to Commercial Cannabis Operator Permits;
and
WHEREAS, the City has contracted with a consultant, MuniServices, to prepare cost and
resource allocation worksheets for the purpose of identifying appropriate fees to assess for various
activities and applications associated with the reviewing, ranking, permitt ing, and regulation of
commercial cannabis businesses in the City of San Luis Obispo ; and
WHEREAS, public outreach was conducted through outreach by staff members to
interested parties and through publication of the proposed fee schedule on the City’s website in
advance of the City Council’s consideration of the newly proposed fees ; and
WHEREAS, on November 27, 2018, the City Council held a public hearing to review and
discuss the proposed fee schedule, receive public input, and consider the recommendations of its
staff; and
NOW, THEREFORE, BE IT RESOLVED by the Council of the City of San Luis Obispo
as follows:
SECTION 1. Findings. The City Council makes the following findings:
1. That the above recitals are true and correct.
2. That the proposed user and regulatory fees are consistent with the City’s cost recovery
goals (Financial Plan Section H), and that the established fees do not exceed the
estimated reasonable cost of providing the service or performing the activity for which
the fee is imposed.
SECTION 2. Action. The City Council takes the following actions:
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Resolution No. _____ (2018 Series) Page 2
R ______
1. The City’s Master Fee Schedule is hereby amended to include updated user and
regulatory fees for cannabis business operator applications and annual licenses as
provided in Exhibit A attached hereto.
Upon motion of _______________________, seconded by _______________________,
and on the following roll call vote:
AYES:
NOES:
ABSENT:
The foregoing resolution was adopted this _____ day of _____________________ 201 8.
____________________________________
Mayor Heidi Harmon
ATTEST:
____________________________________
Teresa Purrington
City Clerk
APPROVED AS TO FORM:
_____________________________________
J. Christine Dietrick
City Attorney
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City
of San Luis Obispo, California, this ______ day of ______________, _________.
____________________________________
Teresa Purrington
City Clerk
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Resolution No. _____ (2018 Series) Page 3
R ______
EXHIBIT A
CITY OF SAN LUIS OBISPO
Cannabis Fee Schedule
One Time Application Fees
Retail Store Front Application Fee $22,519
Other Commercial Cannabis Business Applicants:
Initial Application Fee $7,431
Final Application Fee when permit issues $15,087
Yearly License Renewal Fees
Retail Businesses $90,575
Manufacturing Businesses $72,034
Cultivation $72,243
Other Business $65,890
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R ______
RESOLUTION NO. _____ (2018 SERIES)
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS
OBISPO, CALIFORNIA, APPROVING CANNABIS OPERATOR PERMIT
RANKING CRITERIA AND THE ANNUAL APPLICATION SUBMITTAL
PERIOD (CODE-1058-2017)
WHEREAS, in 2017, the California legislature passed, and Governor Brown signed
Senate Bill 94, which enacted the Medicinal and Adult -Use Cannabis Regulation and Safety Act
(“MAUCRSA”), repealed the Medical Cannabis Regulation and Safety Act (“MCRSA”) but
incorporated certain provisions of MCRSA into the licensing provisions established by Proposition
64; and
WHEREAS, the City Council of the City of San Luis Obispo conducted a public hearing
in the Council Chamber of City Hall, 990 Palm Street, San Luis Obispo, California, on May 15,
2018 and adopted Ordinance 1647 that amended Title 17 (Zoning Regulations) of the Municipal
Code to establish land use regulations for the operation of commercial cannabis businesses, and
repealed and replaced Title 9, Public Peace, Morals and Welfare (Chapter 9.10.) of the Municipal
Code related to cannabis regulation; and
WHEREAS, the City Council of the City of San Luis Obispo conducted a public hearing
on October 16, 2018 in the Council Chamber of City Hall, 990 Palm Street, San Luis Obispo,
California, and continued the review of the Cannabis Operator Permit Ranking Criteria and the
annual application submittal period providing direction to staff on adjustments to be made to the
criteria; and
WHEREAS, the City Council of the City of San Luis Obispo conducted a public hearing
on November 27, 2018 in the Council Chamber of City Hall, 990 Palm Street, San Luis Obispo,
California, for the purpose of establishing the Cannabis Operator Permit Ranking Criteria (Exhibit
A) and the annual application submittal period.
NOW, THEREFORE, BE IT RESOLVED by the Council of the City of San Luis Obispo
as follows:
SECTION 1. Findings.
1. The proposed Cannabis Operator Permit Ranking Criteria (Exhibit A) establishes the
ranking criteria for individuals who apply for a Cannabis Operator Permit to operate a
cannabis business activity in the City consistent with Municipal Code Chapter 9.10,
Section 9.10.070 (A).
2. The proposed timeframe in which applications are submitted annually is consistent with
Municipal Code Chapter 9.10, Section 9.10.070 (B).
SECTION 2. Environmental Review. The project is exempt from environmental review
per the Business and Profess ions Code (Section 26055(h)) because the project includes the
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Resolution No. _____ (2018 Series) Page 2
R ______
adoption of ordinances, rules, or regulations for the purpose of regulating cannabis business
activity in the City. The City’s cannabis business regulations require discretionary review and
approval of permits, licenses, or other authorizations to engage in commercial cannabis activity.
Future applications for commercial cannabis business activities in the City will be subject to
CEQA, per the normal environmental review process.
SECTION 3. Action. The City Council hereby approves Cannabis Operator Permit
Ranking Criteria (Exhibit A) and annual application submittal timeframe subject to the following
conditions:
1. All Cannabis Businesses shall be evaluated by the Cannabis Operator Permit Ranking
Criteria as outlined in E xhibit A.
2. The first annual application submittal period shall coincide with the first three weeks
of 2019 (January 7 through close of business on January 29, 2019). Following this
initial application period, the City Council delegates its authority to the City Manager
to open up new application periods on an as needed basis to include July 1 through July
31 of each calendar year.
3. The City Manager is authorized to make minor modifications to this evaluation criteria
to ensure that the application process is implemented in a manner that is consistent with
the intent of Ordinance 1647. Any future changes to the criteria outlined in Exhibit A
will be published at least 10 days in advance of any application period opening.
Upon motion of _______________________, seconded by _______________________,
and on the following roll call vote:
AYES:
NOES:
ABSENT:
The foregoing resolution was adopted this _____ day of _____________________ 2018.
____________________________________
Mayor Heidi Harmon
ATTEST:
____________________________________
Teresa Purrington
City Clerk
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Resolution No. _____ (2018 Series) Page 3
R ______
APPROVED AS TO FORM:
_____________________________________
J. Christine Dietrick
City Attorney
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City
of San Luis Obispo , California, this ______ day of ______________, _________.
____________________________________
Teresa Purrington
City Clerk
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10. An adjusted score may be agreed upon by the reviewer and the consultant.
Applicant:
Reviewer:
6. Points may be awarded in an amount up to the possible points in each scoring criteria.
5. Each reviewer will complete a score sheet for each proposal.
4. Questions can also be directed to the consultant.
3. Discussion between the reviewers during the evaluation will be limited to clarification to ensure an equal
understanding of the application.
2.City will compile any additional information related to the applicant for consideration.
1. Applicant will make three copies of each proposal.
All applications for a license will be evaluated using the merit criteria outlined below. Applicants must
submit supplemental documentation or references with the application that support the statements below
for review by the City.
Adult-Use Retail Cannabis Merit-Based Criteria and Possible Points
Definitions:
An "applicant" is the entity petitioning for the license and "principals" are the individual members of the
applicant team.
A "primary principal" is defined as an individual who has a 10% or greater ownership stake of the applicant
business.
An "operator" is an applicant that has been licensed and conducts or conducted active operations.
A "majority" is defined as a greater number; more than half. An equal number does not constitute a majority.
Automatic Fail Criteria:
ꞏ Application received after the final filing date.
ꞏ Application incomplete.
ꞏ Facility does not meet City business licensing standards.
ꞏ Only one license applicant allowed per location. Applicants must ask potential landlords if they have existing,
competing cannabis business applicants.
11. Once all criteria scores are reviewed and agreed upon, the total aggregate score for all three reviewers
will be totaled then divided by three to obtain the final score.
9. If there is a scoring deviation between reviewers on any scoring criteria of more than 30% , the
consultant will discuss this specific score with the reviewers.
8. The consultant will review all three score sheets for each proposal.
7. Each completed score sheet will be given to the consultant.
CITY OF SAN LUIS OBISPO
Cannabis Business License Scoring Guidelines
EXHIBIT A
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Manufacturing, Distribution and Non-Storefront Retail Evaluation Criteria
Community Benefit (A): Applicant demonstrates a commitment to City through local
hiring and community support. Select all that apply within each category and total
score.(Up to 20 Points – Deviation Threshold 6 Points)
Possible
points
Applicant
score
Over 90% of employees will be San Luis Obispo County residents. (10 points)
or 60% - 90% of employees will be San Luis Obispo County residents. (5 points)
Over 80% of supply and equipment expense (non-labor, non-rent expense) will be
sourced from businesses within 90 miles. (10 points)
or 50% - 80% of supply and equipment expense (non-labor, non-rent expense) will
be sourced from local businesses within 90 miles. (5 points)
Total Community Benefit (A)20
Community Benefit (B): Continued support of community programs in San Luis
Obispo (i.e. park cleanups, facility improvements, donating supplies/equipment to
youth programs). (Up to 10 Points - Deviation Threshold 3 points)
Possible
points
Applicant
score
Providing over 20 hours per month of community support. (5 points)
or Providing over 10-20 hours per month of community support. (2 points)
Provide over $1,000 per month for community support. (5 points)
or Provide up to $1,000 per month for community support. (2 points)
Total Community Benefit (B)10
Total Merit Criteria 1.0 30
Merit Criteria 1.0 - Community Benefit
10
10
5
5
EXHIBIT A
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Applicant commits to equity ownership and competitive compensation in comparison
to other mainstream commercial businesses. Applicants commitment will be
confirmed during annual permit renewal process. Select all that apply and total score.
(Up to 20 Points – Deviation Threshold 9 Points)
Possible
points
Applicant
score
Applicant includes 3 or more primary principals who have earned at or below the
median household income at the time of application. (8 points)
or Applicant includes 1 or 2 primary principals who have earned at or below the
median household income at the time of application. (4 points)
Business will have an average pay rate for entry and mid-level positions of at least
40% more than the median local income for similar positions in other mainstream
businesses. (8 points)
or Business will have an average pay rate for entry and mid-level positions of at
least 20% more than the median local income for similar positions in other mainstream
businesses. (4 points)
Base wages of employees exceed the minimum wage by at least $3.00/hr.2
Business will allow "labor peace agreement" at 10 or more non-management
employees. 2
Total Merit Criteria 2.0 20
8
Merit Criteria 2.0 - Equity and Labor
8
EXHIBIT A
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Financial Investment: Applicant has plans and capital to support a vibrant business
within the City. (Up to 25 Points – Deviation Threshold 3 Points)
Possible
points
Applicant
score
Applicant demonstrates financial capacity to capitalize, start up, and sustain business
operations.10
Applicant commits to develop raw land that has been zoned for commercial use for a
commercial cannabis facility.10
Applicant commits to major improvements, including façade rehabilitation, building
expansion, site improvements and/or other investments in an
underutilized/underdeveloped site that has been zoned for commercial use for a
commercial cannabis facility.
5
The proposed cannabis business site can accommodate the required number of parking
spaces with safe and convenient access for customers/employees.5
Total Merit Criteria 3.0 30
Total GENERAL Merit Criteria Points Available 80
Total GENERAL Merit Criteria Points Awarded
Merit Criteria 3.0 - Financial Investment
Totals
Total %
EXHIBIT A
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Cultivation Evaluation Criteria
Community Benefit (A): Applicant demonstrates a commitment to City through local
hiring and community support. Select all that apply within each category and total
score.(Up to 20 Points – Deviation Threshold 6 Points)
Possible
points
Applicant
score
Over 90% of employees will be San Luis Obispo County residents. (10 points)
or 60% - 90% of employees will be San Luis Obispo County residents. (5 points)
Over 80% of supply and equipment expense (non-labor, non-rent expense) will be
sourced from businesses within 90 miles. (10 points)
or 50% - 80% of supply and equipment expense (non-labor, non-rent expense) will
be sourced from local businesses within 90 miles. (5 points)
Total Community Benefit (A)20
Community Benefit (B): Continued support of community programs in San Luis
Obispo (i.e. park cleanups, facility improvements, donating supplies/equipment to
youth programs). (Up to 10 Points - Deviation Threshold 3 points)
Possible
points
Applicant
score
Providing over 20 hours per month of community support. (5 points)
or Providing over 10-20 hours per month of community support. (2 points)
Provide over $1,000 per month for community support. (5 points)
or Provide up to $1,000 per month for community support. (2 points)
Total Community Benefit (B)10
Total Merit Criteria 1.0 30
Merit Criteria 1.0 - Community Benefit
10
10
5
5
EXHIBIT A
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Applicant commits to equity ownership and competitive compensation in comparison
to other mainstream commercial businesses. Applicants commitment will be
confirmed during annual permit renewal process. Select all that apply and total score.
(Up to 20 Points – Deviation Threshold 9 Points)
Possible
points
Applicant
score
Applicant includes 3 or more primary principals who have earned at or below the
median household income at the time of application. (8 points)
or Applicant includes 1 or 2 primary principals who have earned at or below the
median household income at the time of application. (4 points)
Business will have an average pay rate for entry and mid-level positions of at least
40% more than the median local income for similar positions in other mainstream
businesses. (8 points)
or Business will have an average pay rate for entry and mid-level positions of at
least 20% more than the median local income for similar positions in other mainstream
businesses. (4 points)
Base wages of employees exceed the minimum wage by at least $3.00/hr.2
Business will allow "labor peace agreement" at 10 or more non-management
employees. 2
Total Merit Criteria 2.0 20
Medical Retail Commitment (up to 10 points)Possible
points
Applicant
score
Applicant commits to retain a California state medicinal cannabis cultivation license. 10
Total Merit Criteria 3.0 10
Merit Criteria 2.0 - Equity and Labor
8
8
Merit Criteria 3.0 - Medical Retail Commitment
EXHIBIT A
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Applicant demonstrates past experience in and/or commits to sustainable and
environmental business or building practices utilizing recognized industry standards.
Applicants actions will be confirmed during annual permit renewal process. Select all
that apply and total score. (Up to 20 Points – Deviation Threshold 6 Points)
Possible
points
Applicant
score
Applicant will recycle waste water (utilize purple pipe when available).5
Applicant will utilize certified organic practices. 3
Applicant will utilize carbon free power sources for majority of power.5
Applicant will utilize energy efficient lighting.4
Applicant has plan to reduce water waste.3
Total Merit Criteria 4.0 20
Financial Investment: Applicant has plans and capital to support a vibrant business
within the City. (Up to 25 Points – Deviation Threshold 3 Points)
Possible
points
Applicant
score
Applicant demonstrates financial capacity to capitalize, start up, and sustain business
operations.10
Applicant commits to develop raw land that has been zoned for commercial use for a
commercial cannabis facility.10
Applicant commits to major improvements, including façade rehabilitation, building
expansion, site improvements and/or other investments in an
underutilized/underdeveloped site that has been zoned for commercial use for a
commercial cannabis facility.
5
The proposed cannabis business site can accommodate the required number of parking
spaces with safe and convenient access for customers/employees.5
Total Merit Criteria 5.0 30
Merit Criteria 4.0 - Sustainability
Merit Criteria 5.0 - Financial Investment
EXHIBIT A
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Total Merit Criteria Points Available 110
Total Merit Criteria Points Awarded
Totals
Total %
EXHIBIT A
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Retail Evaluation Criteria
Community Benefit (A): Applicant demonstrates a commitment to City through local
hiring and community support. Select all that apply within each category and total
score.(Up to 20 Points – Deviation Threshold 6 Points)
Possible
points
Applicant
score
Over 90% of employees will be San Luis Obispo County residents. (10 points)
or 60% - 90% of employees will be San Luis Obispo County residents. (5 points)
Over 80% of supply and equipment expense (non-labor, non-rent expense) will be
sourced from businesses within 90 miles. (10 points)
or 50% - 80% of supply and equipment expense (non-labor, non-rent expense) will
be sourced from local businesses within 90 miles. (5 points)
Total Community Benefit (A)20
Community Benefit (B): Continued support of community programs in San Luis
Obispo (i.e. park cleanups, facility improvements, donating supplies/equipment to
youth programs). (Up to 10 Points - Deviation Threshold 3 points)
Possible
points
Applicant
score
Providing over 20 hours per month of community support. (5 points)
or Providing over 10-20 hours per month of community support. (2 points)
Provide over $1,000 per month for community support. (5 points)
or Provide up to $1,000 per month for community support. (2 points)
Total Community Benefit (B)10
Total Merit Criteria 1.0 30
10
Merit Criteria 1.0 - Community Benefit
10
5
5
EXHIBIT A
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Record of compliant current or previous business operations: Applicant has
previous record of operating a compliant commercial cannabis (including medical).
A compliant business operation does not have a documented history of local or state
level violations relating, but not limited to: business code, public safety,
environmental impacts, employment, and financial payments. (Up to 30 Points –
Deviation Threshold 9 Points)
Possible
points
Applicant
score
91% to 100% of the primary principals have operated a local compliant commercial
cannabis business for 5 or more years. 35
or 81% to 90% of the primary principals have operated a local compliant
commercial cannabis business for 5 or more years.30
or 71% to 80% of the primary principals have operated a local compliant
commercial cannabis business for 5 or more years.25
or 61% to 70% of the primary principals have operated a local compliant
commercial cannabis business for 5 or more years.20
or 51% to 60% of the primary principals have operated a local compliant
commercial cannabis business for 5 or more years.15
10-50% of the primary principals operated a compliant commercial cannabis business
outside of SLO County for 5 or more years.10
or 10-50% of the primary principals operated a compliant commercial cannabis
business outside of SLO County for less than 5 years.5
Total Merit Criteria 2.0 35
Merit Criteria 2.0 - Experience
EXHIBIT A
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Applicant commits to equity ownership and competitive compensation in comparison
to other mainstream commercial businesses. Applicants commitment will be
confirmed during annual permit renewal process. Select all that apply and total score.
(Up to 20 Points – Deviation Threshold 9 Points)
Possible
points
Applicant
score
Applicant includes 3 or more primary principals who have earned at or below the
median household income at the time of application. (8 points)
or Applicant includes 1 or 2 primary principals who have earned at or below the
median household income at the time of application. (4 points)
Business will have an average pay rate for entry and mid-level positions of at least
40% more than the median local income for similar positions in other mainstream
businesses. (8 points)
or Business will have an average pay rate for entry and mid-level positions of at
least 20% more than the median local income for similar positions in other mainstream
businesses. (4 points)
Base wages of employees exceed the minimum wage by at least $3.00/hr.2
Business will allow "labor peace agreement" at 10 or more non-management
employees. 2
Total Merit Criteria 4.0 20
Merit Criteria 4.0 - Equity and Labor
8
8
EXHIBIT A
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Applicant commits to responsible use messaging practices. Select all that apply and
total score. (Up to 10 Points – Deviation Threshold 3 Points)
Possible
points
Applicant
score
Business articulates strategy to keep cannabis from being diverted to minors including
advertising that is appropriately targeted to adult audiences.5
Business promotes responsible use including messaging on packaging, offering lower
dose THC product options, offering to track use via "user determined quotas", posting
information on cannabis use disorder and cautions re: development of the adolescent
brain.
5
Total Merit Criteria 5.0 10
Medical Retail Commitment (up to 10 points)Possible
points
Applicant
score
Applicant commits to provide retail medical cannabis products to consumers.10
Total Merit Criteria 6.0 10
Merit Criteria 5.0 - Messaging
Merit Criteria 6.0 - Medical Retail Commitment
EXHIBIT A
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Control of business location: Applicant demonstrates control of a site to ensure a
successful and timely transition from being awarded a license to opening the business.
Incomplete purchase or lease agreements do not constitute site control. (Up to 10
Points – Deviation Threshold 3 Points)
Possible
points
Applicant
score
Majority ownership in site property. 10
Minority ownership in site property. 8
10+ years future lease of site property. 8
5-10 years future lease of site property. 5
2-5 years future lease of site property. 3
Less than 2 years future lease of site property. 1
Total Merit Criteria 7.0 10
Financial Investment: Applicant has plans and capital to support a vibrant business
within the City. (Up to 25 Points – Deviation Threshold 3 Points)
Possible
points
Applicant
score
Applicant demonstrates financial capacity to capitalize, start up, and sustain business
operations.10
Applicant commits to develop raw land that has been zoned for commercial use for a
commercial cannabis facility.10
Applicant commits to major improvements, including façade rehabilitation, building
expansion, site improvements and/or other investments in an
underutilized/underdeveloped site that has been zoned for commercial use for a
commercial cannabis facility.
5
The proposed cannabis business site can accommodate the required number of parking
spaces and safe and convenient access for customers/employees.5
Total Merit Criteria 8.0 30
Merit Criteria 7.0 - Property Control
Choose one:
Merit Criteria 8.0 - Financial Investment
EXHIBIT A
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Total Merit Criteria Points Available 145
Total Merit Criteria Points Awarded
Totals
Total %
EXHIBIT A
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COUNCIL DIRECTION ON THE CANNABIS OPERATOR PERMIT APPLICATION
REQUIREMENTS, RANKING CRITERIA, AND ANNUAL APPLICATION
SUBMITTAL PERIOD:
The following direction provided on changes to the evaluation criteria:
1. Define terms for Applicants, Operators, and Principals.
Definitions have been included as a part of the Cannabis Scoring Worksheets (Attachment
C). The definitions are listed below:
Applicant - The entity petitioning for the Cannabis Business Operator Permit.
Principal(s) - The individual members of the applicant team.
Primary Principal - An individual who has a 10% or greater ownership stake of the
applicant business, which includes partners, officers, directors, and stockholders of every
corporation, limited liability company, or general limited partnership that owns at least
10% of the stock, capital, profits, voting rights, or membership interest of the commercial
cannabis business or that is one of the partners in the commercial cannabis business; the
managers of the commercial cannabis business.
Operator - An applicant that has been licensed and conducts or conducted active cannabis
operations.
Majority - A greater number; more than half. An equal number does not constitute a
majority.
2. Clarify the scope of the product list.
Modified language of the application form to request applicants provide a general
description of products and services (Attachment G, Commercial Cannabis Business
Operators Permit Application).
3. After initial application period, allow applications from all business types other than
retail storefronts and cultivators at any time.
The Evaluation Criteria Resolution (Attachment B) gives the City Manager the authority
to adjust application periods and to open up new application periods on an as needed basis
in addition to the annual application period of July 1 through July 31 of each calendar year.
The first application period will be January 7, 2019 through January 29, 2018.
4. Modify the form so there is greater clarity regarding the specific criteria that will be
applied to the different application types.
The Cannabis Scoring Worksheets have been modified into three, separate forms based on
the type of cannabis business being permitted: 1) retail storefront, 2) cultivation, and 3)
manufacturing, distribution, and non-storefront retail (delivery). Each evaluation criteria
have been modified incorporate information that is pertinent for the identified business
groupings (see Att achment C).
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Council Direction on the Cannabis Operator Permit Application Requirements, Ranking Criteria, and Annual
Application Submittal Period.
Page 2
5. Define supplies and equipment, for purposes of local procurement criteria.
Terminology has been changed in Section 1.0A to state “supply and equipment expense
(non-labor, non-rent expense) will be sourced from local businesses within 90 miles”
Originally the section stated, “supplies and equipment will be sourced from local
businesses” (Attachment C, Cannabis Scoring Worksheets).
6. Increase point value for 3.0 (local experience) to emphasize value of local cannabis
business experience.
Section 2.0, under the Retail Evaluation Criteria, has been modified to include more points
for an applicant that has operated a local, compliant commercial cannabis business
(Attachment C, Cannabis Scoring Worksheets).
7. 4.0 (Equity and Labor Criteria) reduce point value to 20 points and redistribute
points within this category accordingly.
Section 4.0, under the Retail Evaluation Criteria, has been revised to have a maximum
point value of 20 points (Attachment C, Cannabis Scoring Worksheets).
8. 5.0 (Responsible Use Messaging) Look at consolidating messaging criteria to increase
point value of individual criteria.
Section 5.0, under the Retail Evaluation Criteria, has been revised to two criteria, each with
a maximum point value of 5 points (Attachment C, Cannabis Scoring Worksheets).
9. Application criteria to be modified to reduce upfront requirements for site specific
architectural plans.
The application form has been modified to request only dimensioned site and floor plans
as a part of the Cannabis Operator Permit application (Attachment G, Commercial
Cannabis Business Operators Permit Application).
10. Simplify the application and operator permit process for laboratory testing uses.
Laboratory testing businesses will be required to submit an application to evaluate that they
qualify as an applicant, but no additional evaluation is required for these businesses.
11. Strike Section 9.0, Beneficial Uses.
This section has been removed (Attachment C, Cannabis Scoring Worksheets).
12. 10.0 (Land Development) Clarify that raw land development still requires
appropriate zoning.
Section 8.0 has been amended to include a revised evaluation criterium that states the
“Applicant commits to develop raw land, that has been zoned for commercial use, for a
commercial cannabis facility.” Original language stated, “Applicant commits to develop
raw land for commercial cannabis business facility” (Attachment C, Cannabis Scoring
Worksheets).
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Council Direction on the Cannabis Operator Permit Application Requirements, Ranking Criteria, and Annual
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Page 3
13. 2.0 (Record of compliant business operations) Increase points from 20 to 30 and add
points for applications that “Demonstrate financial capacity to capitalize start up and
sustain business operations.”
The reference to “Financial Capacity” has been moved to Section 8.0 (Financial
Investment) and a maximum of 10 points may be allotted to a business where an “Applicant
demonstrates financial capacity to capitalize, start up, and sustain business operations.” An
applicant may receive a total maximum point score of 30 for Section 8.0 (Attachment C,
Cannabis Scoring Worksheets).
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California State Annual Commercial Cannabis Fee Structure
Cultivation
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BUDGET AND FISCAL POLICIES
USER FEE COST RECOVERY GOALS A. Ongoing Review Fees will be reviewed and updated on an ongoing basis to ensure that they keep pace with changes in the cost-of-living as well as changes in methods or levels of service delivery. In implementing this goal, a comprehensive analysis of City costs and fees should be made at least every five years. In the interim, fees will be adjusted by annual changes in the Consumer Price Index. Fees may be adjusted during this interim period based on supplemental analysis whenever there have been significant changes in the method, level or cost of service delivery. B. User Fee Cost Recovery Levels In setting user fees and cost recovery levels, the following factors will be considered: 1. Community-Wide Versus Special Benefit. The level of user fee cost recovery should consider the community-wide versus special service nature of the program or activity. The use of general-purpose revenues is appropriate for community-wide services, while user fees are appropriate for services that are of special benefit to easily identified individuals or groups. 2. Service Recipient Versus Service Driver. After considering community-wide versus special benefit of the service, the concept of service recipient versus service driver should also be considered. For example, it could be argued that the applicant is not the beneficiary of the City's development review efforts: the community is the primary beneficiary. However, the applicant is the driver of development review costs, and as such, cost recovery from the applicant is appropriate. 3. Effect of Pricing on the Demand for Services. The level of cost recovery and related pricing of services can significantly affect the demand and subsequent level of services provided. At full cost recovery, this has the specific advantage of ensuring that the City is providing services for which there is genuinely a market that is not overly-stimulated by artificially low prices. Conversely, high levels of cost recovery will negatively impact the delivery of services to lower income groups. This negative feature is especially pronounced, and works against public policy, if the services are specifically targeted to low income groups. 4. Feasibility of Collection and Recovery. Although it may be determined that a high level of cost recovery may be appropriate for specific services, it may be impractical or too costly to establish a system to identify and charge the user. Accordingly, the feasibility of assessing and collecting charges should also be considered in developing user fees, especially if significant program costs are intended to be financed from that source. C. Factors Favoring Low Cost Recovery Levels Very low cost recovery levels are appropriate under the following circumstances: 1. There is no intended relationship between the amount paid and the benefit received. Almost all "social service" programs fall into this category as it is expected that one group will subsidize another. 2. Collecting fees is not cost-effective or will significantly impact the efficient delivery of the service. 3. There is no intent to limit the use of (or entitlement to) the service. Again, most "social service" programs fit into this category as well as many public safety (police and fire) emergency response services. Historically, access to neighborhood and community parks would also fit into this category.
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4. The service is non-recurring, generally delivered on a "peak demand" or emergency basis, cannot reasonably be planned for on an individual basis, and is not readily available from a private sector source. Many public safety services also fall into this category. 5. Collecting fees would discourage compliance with regulatory requirements and adherence is primarily self-identified, and as such, failure to comply would not be readily detected by the City. Many small-scale licenses and permits might fall into this category. D. Factors Favoring High Cost Recovery Levels The use of service charges as a major source of funding service levels is especially appropriate under the following circumstances: 1. The service is similar to services provided through the private sector. 2. Other private or public sector alternatives could or do exist for the delivery of the service. 3. For equity or demand management purposes, it is intended that there be a direct relationship between the amount paid and the level and cost of the service received. 4. The use of the service is specifically discouraged. Police responses to disturbances or false alarms might fall into this category. 5. The service is regulatory in nature and voluntary compliance is not expected to be the primary method of detecting failure to meet regulatory requirements. Building permit, plan checks, and subdivision review fees for large projects would fall into this category. E. General Concepts Regarding the Use of Service Charges The following general concepts will be used in developing and implementing service charges: 1. Revenues should not exceed the reasonable cost of providing the service. 2. Cost recovery goals should be based on the total cost of delivering the service, including direct costs, departmental administration costs and organization-wide support costs such as accounting, personnel, information technology, legal services, fleet maintenance and insurance. 3. The method of assessing and collecting fees should be as simple as possible in order to reduce the administrative cost of collection. 4. Rate structures should be sensitive to the "market" for similar services as well as to smaller, infrequent users of the service. 5. A unified approach should be used in determining cost recovery levels for various programs based on the factors discussed above. F. Low Cost-Recovery Services Based on the criteria discussed above, the following types of services should have very low cost recovery goals. In selected circumstances, there may be specific activities within the broad scope of services provided that should have user charges associated with them. However, the primary source of funding for the operation as a whole should be general-purpose revenues, not user fees.
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1. Delivering public safety emergency response services such as police patrol services and fire suppression. 2. Maintaining and developing public facilities that are provided on a uniform, community-wide basis such as streets, parks and general-purpose buildings. 3. Providing social service programs and economic development activities. G. Recreation Programs The following cost recovery policies apply to the City's recreation programs: 1. Cost recovery for activities directed to adults should be relatively high. 2. Cost recovery for activities directed to youth and seniors should be relatively low. In those circumstances where services are similar to those provided in the private sector, cost recovery levels should be higher. Although ability to pay may not be a concern for all youth and senior participants, these are desired program activities, and the cost of determining need may be greater than the cost of providing a uniform service fee structure to all participants. Further, there is a community-wide benefit in encouraging high-levels of participation in youth and senior recreation activities regardless of financial status. 3. Cost recovery goals for recreation activities are set as follows: High-Range Cost Recovery Activities - (60% to 100%) a. Adult athletics b. Banner permit applications c. Child care services d. Facility rentals (indoor and outdoor; excludes use of facilities for internal City uses) Mid-Range Cost Recovery Activities - (30% to 60%) e. Triathlon f. Golf g. Summer and Spring Break Camps h. Classes i. Major commercial film permit applications Low-Range Cost Recovery Activities- (0 to 30%) j. Aquatics k. Community gardens l. Junior Ranger camp m. Minor commercial film permit applications n. Skate park o. Parks and Recreation sponsored events (except for Triathlon) p. Youth sports q. Teen services r. Senior/boomer services
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4. For cost recovery activities of less than 100%, there should be a differential in rates between residents and non-residents. However, the Director of Parks and Recreation is authorized to reduce or eliminate non-resident fee differentials when it can be demonstrated that: a. The fee is reducing attendance. b. And there are no appreciable expenditure savings from the reduced attendance. 5. Charges will be assessed for use of rooms, pools, gymnasiums, ball fields, special-use areas, and recreation equipment for activities not sponsored or co-sponsored by the City. Such charges will generally conform to the fee guidelines described above. However, the Director of Parks and Recreation is authorized to charge fees that are closer to full cost recovery for facilities that are heavily used at peak times and include a majority of non-resident users. 6. A vendor charge of at least 10 percent of gross income will be assessed from individuals or organizations using City facilities for moneymaking activities. 7. Director of Parks and Recreation is authorized to offer reduced fees such as introductory rates, family discounts and coupon discounts on a pilot basis (not to exceed 18 months) to promote new recreation programs or resurrect existing ones. 8. The Parks and Recreation Department will consider waiving fees only when the City Manager determines in writing that an undue hardship exists. H. Development Review Programs The following cost recovery policies apply to the development review programs: 1. Services provided under this category include: a. Planning (planned development permits, tentative tract and parcel maps, rezonings, general plan amendments, variances, use permits). b. Building and safety (building permits, structural plan checks, inspections). c. Engineering (public improvement plan checks, inspections, subdivision requirements, encroachments). d. Fire plan check. 2. Cost recovery for these services should generally be very high. In most instances, the City's cost recovery goal should be 100%. 3. However, in charging high cost recovery levels, the City needs to clearly establish and articulate standards for its performance in reviewing developer applications to ensure that there is “value for cost.” I. Comparability with Other Communities In setting user fees, the City will consider fees charged by other agencies in accordance with the following criteria: 1. Surveying the comparability of the City's fees to other communities provides useful background information in setting fees for several reasons:
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a. They reflect the "market" for these fees and can assist in assessing the reasonableness of San Luis
Obispo’s fees.
b. If prudently analyzed, they can serve as a benchmark f or how cost-effectively San Luis Obispo
provides its services.
2. However, fee surveys should never be the sole or primary criteria in setting City fees as there are many
factors that affect how and why other communities have set their fees at their levels. For example:
a. What level of cost recovery is their fee intended to achieve compared with our cost recovery
objectives?
b. What costs have been considered in computing the fees?
c. When was the last time that their fees were comprehensively evaluated?
d. What level of service do they provide compared with our service or performance standards?
e. Is their rate structure significantly different than ours and what is it intended to achieve?
3. These can be very difficult questions to address in fairly evaluating fees among different communities.
As such, the comparability of our fees to other communities should be one factor among many that is
considered in setting City fees.
ENTERPRISE FUND FEES AND RATES
A. Water, Sewer, and Parking. The City will set fees and rates at levels which fully cover the total direct and
indirect costs—including operations, capital outlay, and debt service—of the following enterprise programs:
water, sewer, and parking.
B. Transit. Based on targets set under the Transportation Development Act, the City will strive to cover at least
twenty percent of transit operating costs with fare revenues.
C. Ongoing Rate Review. The City will review and adjust enterprise fees and rate structures as required to
ensure that they remain appropriate and equitable.
D. Cost of Service Fees. The City will treat the water and sewer funds in the same manner as if they were
privately owned and operated. This means assessing reasonable cost of service fees in fully recovering
service costs.
The purpose of the cost of service fee is reasonable cost recovery for the use of the City’s services such as
street rights-of-way and public safety. The appropriateness of charging the water and sewer fund a reasonable
cost of service fee for the use of the City streets is further supp orted by the results of studies from Arizona,
California, Ohio, and Vermont which concluded that the leading cause of street resurfacing and
reconstruction is street cuts and trenching for Utilities.
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CITY OF SAN LUIS OBISPO
Community Development Department
919 Palm Street, San Luis Obispo, CA 93401
(805) 781-7170
Commercial Cannabis Business Operators Permit Application
A. Business Information
Business Name:
Property Address:
Assessor Parcel Number:
Zoning Designation:
B. Business Type (Check all that apply)
Cultivation - Specialty (Up to 5,000
Sq. Ft. Max)
Cultivation - Small (5,001 - 10,000
Sq. Ft. Max)
Cultivation – Nursery (Up to 10,000
Sq. Ft. Max)
Manufacture (Non-volatile Raw
Product Extraction)
Manufacture (Cannabis Infusion)
Manufacture (Itinerant – No
permanent facility)
Manufacturer (Research and
Development)
Distributor
Testing Laboratory
Retailer Storefront (Adult-use)
Retailer Storefront (Medical)
Retailer Storefront (Adult-use and
Medical)
Retailer Non-storefront (Adult-use)
Retail Non-Storefront (Medical)
Retail Non-storefront (Adult-use and
Medical
Transporter
Microbusiness (No more than 50%
GR* from cultivation, distribution
and manufacturing)
Microbusiness (More than 50% GR*
from cultivation, distribution and
manufacturing)
*GR – Gross Receipts
C. Definitions
Applicant - The entity petitioning for the Cannabis Business Operator Permit.
Principal(s) - The individual members of the applicant team.
Primary Principal - An individual who has a 10% or greater ownership stake of the applicant business , which
includes partners, officers, directors, and stockholders of every corporation, limited liability compa ny, or general
limited partnership that owns at least 10% of the stock, capital, profits, voting rights, or membership interest of
the commercial cannabis business or that is one of the partners in the commercial cannabis business; the
managers of the commercial cannabis business.
Operator - An applicant that has been licensed and conducts or conducted active cannabis operations.
Majority - A greater number; more than half. An equal number does not constitute a majority.
D. Applicant Information
Name of Primary Responsible Party Completing the Application:
Title:
DOB:
Social Security No:
If applicant is a not for profit, corporation, partnership or other business entity, please identify:
Name of Business Entity:
Type of Ownership:
Federal Tax Id:
Start Date:
Mailing Address:
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Primary Phone No:
Alt. Phone No:
Email Address:
Preferred method of contact (check one) Mail Phone Email
E. Additional Responsible Party Information
Name:
Title:
DOB:
Social Security No:
Mailing Address:
Primary Phone No:
Alt. Phone No:
Email Address:
Preferred method of contact (check one) Mail Phone Email
Please attach additional sheets if there are more than 2 Responsible Parties.
F. Information on Property Owner or Landlord
Name:
Mailing Address:
Primary Phone No:
Alt. Phone No:
Email Address:
Preferred method of contact (check one) Mail Phone Email
If the applicant is not the legal owner of the property, the application must be accompanied by a notarized Owner’s
Statement of Consent to operate a commercial cannabis business on the property.
G. Related License Information
The applicant and/or responsible parties has been associated with a commercial cannabis business permit in the
past 10 years.
Yes No (If yes, please provide the following information)
Name:
City or County:
Start Date: End Date:
Business Name:
Business Type:
Please attach additional sheets if necessary.
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Required Submissions (Please check the box for each attachment)
Please attach the following documents to your application:
Business Operations Plan
• Business Plan: A plan describing how the cannabis cultivation business will operate in accordance with City
code, state law, and other applicable regulations. The busines s plan must include plans for handling cash and
transporting cannabis and cannabis products to and from the cultivation site.
• Community Relations Plan: A plan describing who is designated as being responsible for outreach and
communication with the surrounding community, including the neighborhood and businesses, and how the
designee can be contacted.
• State Licenses: Copies of the state licenses relating to the commercial cannabis business licenses, the
applicant holds (when available).
• Tax Compliance: A current copy of the applicant’s city business operations tax certificate, state sales tax
seller’s permit, and the applicant’s most recent year’s financial statement and tax returns (for first time
applicants, the business operations tax account will be set up in-house after the application has been
submitted).
• Insurance: The applicant’s certificate of commercial general liability insurance and endorsements and
certificates of all other insurance related to the operation of the cultivation business.
• Budget: A copy of the applicant’s most recent annual budget for operations (If available)
• Financial Capacity: Financial information such as bank balances, available loans and other sources of
funding the enterprise.
• Products and Services: A list/description of the general products and services the business will provide.
Community Benefit: The applicant shall demonstrate to the satisfaction of the City of its intent to local hiring
and community support.
Education Plan: A plan describing the type of cannabis education and prevention efforts that will be provided
by the business to the community.
Security Plan: A detailed security plan outlining the measures that will be taken to ensure the safety of persons
and property on the business site. The security plan must be prepared by a qualified professional.
Lighting Plan: A detailed lighting plan showing existing and proposed exterior and interior lights that will
provide adequate security lighting for the business site.
Site and Floor Plans: A dimensioned site plan of the business site, including all buildings, structures,
driveways, parking lots, landscape areas and boundaries. Also provide dimensioned floor plans for each level of
each building that makes up the business site, including the entrances, exits, walls and cultivation areas, if
applicable. The plans shall also include the following information about the site: current zoning, parking
requirements, consistency with development standards for the zone, if new development planned for the site,
and any other site development information.
Water Efficiency Plan: The applicant shall demonstrate to the satisfaction of the City that sufficient water
supply exists for the use.
Odor Control Plan: A detailed plan describing how the applicant will prevent all odors generated from the
cultivation, manufacturing and storage of cannabis from escaping from the buildings on the business site, such
that the odor cannot be detected by a reasonable person of normal sensitivity outside the buildings.
Hazardous Materials Plan: To the extent that the applicant intends to use any hazardous materials in its
operations, the applicant shall provide a hazardous materials management plan that complie s with all federal,
state and local requirements for management of such substances .
Energy Efficiency Plan: Documentation that the applicant has identified the best way, including carbon free
power sources to provide reliable and efficient energy solutions for their business.
Testing Facility State Standards (Testing Facilities only): Provide documentation that the proposed
testing facility meets state standards.
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H. City Authorization
I, the applicant, provide authorization and consent for the City Manager or his/her designee to seek verification
of the information contained on this application.
I. Indemnification
I, the applicant, agree to the fullest extent permitted by law, any actions taken by a public officer or employee
under the City of San Luis Obispo regulations for Commercial Cannabis Businesses, shall not become a personal
liability of any public officer or employee of the City. To the maximum extent permitted by law, the permittee shall
defend (with counsel acceptable to the City), indemnify and hold harmless the City of San Luis Obispo, the San Luis
Obispo City Council, and its respective officials, officers, employees, representatives, agents and volunteers from
any liability, damages, actions, claims, demands, litigations, loss (direct or indirect), causes of action, proceedings,
or judgments (including legal costs, attorneys’ fees, expert witness or consultant fees, City Attorney or staff time,
expenses or costs) against the City to attach, set aside, void or annul, any cannabis-related approvals and actions
and strictly comply with the conditions under which such permit is granted, in any. The City may elect, in its sole
discretion, to participate in the defense of said action and the permittee shall reimburse the City for its reasonable
legal costs and attorneys’ fees.
J. Nonrefundable Filing Fee
I, the applicant, understand and accept that the nonrefundable filling fee must be submitted with the competed
Commercial Cannabis Business Operators Permit Application and will be retained by the City regardless of the out-
come of the application review.
K. Background – Request for Live Scan Services
I, the applicant, understand that a completed and processed Request for Live Scan Service, State of California
Form BCIA 8016, as determined by the City of San Luis Obispo, by a duly authorized business must be provided for
the applicant and all interested parties. All applicable fees and charges are the responsibility of the applicants and
interested parties.
L. Disqualification
• Application was received late
• Application is incomplete or inaccurate
• Facility does not meet City business licensing standards
• More than one application is received for the same cannabis business type on one property (stacking of
applications)
M. Applicant’s Certification
I agree to abide by and conform to the conditions of the permit and all provisions of the San Luis Obispo Municipal
Code pertaining to the establishment and operation of the commercial cannabis business. I acknowledge that the
approval of the Commercial Cannabis Business Operators Permit shall, in no way, permit any activity contrary to the
San Luis Obispo Municipal Code, or any activity which is in violation of any applicable law.
I certify under penalty of perjury under the laws of the State of California, that I have personal knowledge of the
information contained in this application, and that the information contained herein is true and correct .
Signature:
Date:
The information contained on this document is subject to disclosure under the Public Records Act.
Applicants providing false or misleading information in the permitting process will result in rejection of the
application and/or nullification or revocation of any issued permit. All commercial cannabis permits must be
approved by the City Council. The City may attach conditions to the permit. A commercial cannabis permit may be
denied if any of the following findings are made:
(i) The application does not meet all requirements of the commercial cannabis ordinance; or DRAFTItem 10
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(ii) Approval would very likely result in harm to public safety, health, or welfare; or
(iii) Potential negative impacts of the use cannot be mitigated with conditions or through the ordinance
requirements.
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COMMERCIAL CANNABIS BUSINESS OPERATORS PERMIT APPLICATION
OWNER’S STATEMENT OF CONSENT
If the applicant is not the owner of record of the subject site, the following Statement of Consent must be
completed by the owner or the owner’s authorized representative, granting the applicant permission to apply for a
cannabis cultivation business permit. This form must be notarized.
To: City of San Luis Obispo
(Department)
(Address)
San Luis Obispo, CA 93401
I, the undersigned legal owner of record, hereby grant permission to:
Applicant: ___________________________________ Phone:___________________________
Mailing Address: ________________________________________________________________
To operate a commercial cannabis business on the property described below. I agree to abide by and conform to
the conditions of the permit and all provisions of the San Luis Obispo Municipal Code pertaining to the
establishment and operation of the commercial cannabis business. I acknowledge that the approval of the
Commercial Cannabis Business Operator Permit shall, in no way, permit any activity contrary to the San Luis Obispo
Municipal Code, or any activity which is in violation of any applicable law.
The subject property is located at: _________________________________________________
Assessor’s Parcel Number: ________________________________________________________
Printed Name of Owner of Record: _________________________________________________
Address of Owner of Record: ______________________________________________________
Phone: __________________________Email address: _________________________________
Signature of Owner of Record: _______________________________Date: ________________
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Meeting Date: 11/27/2018
FROM: Michael Codron, Community Development Director
Prepared By: Doug Davidson, Deputy Director
SUBJECT: FOLLOW-UP ITEMS FROM THE CITY COUNCIL’S APPROVAL OF THE
COMPREHENSIVE UPDATE TO THE CITY’S ZONING REGULATIONS
(TITLE 17) OF THE MUNICIPAL CODE INCLUDING TINY HOMES,
ACCESSORY DWELLING UNITS OWNER OCCUPANCY AND LOT
COVERAGE REQUIREMENTS, ELECTRIC VEHICLE PARKING,
DOWNTOWN OVERLAY ZONE, AND ADDITIONAL MISCELLANEOUS
CLEAN UP ITEMS.
RECOMMENDATION
1. Introduce an Ordinance (Attachment A) amending the newly adopted Update to the Zoning
Regulations including five directional items from Council and miscellaneous items;
• Tiny Homes
• Accessory Dwelling Units (ADUs) Owner Occupancy Requirement
• Accessory Dwelling Unit Lot Coverage Requirement
• Climate Action Plan (CAP) Electric Vehicle (EV) Parking
• Downtown Overlay Zone
2. Adopt the Addendum (Attachment B) to the Negative Declaration of Environmental Impact .
REPORT-IN-BRIEF
On June 27, 2018, the Planning Commission recommended to the City Council adoption of the
Updated Zoning Regulations, including the Initial Study/Negative Declaration of Environmental
Impact. The Commission made final minor edits to various sections and also recommended that
the City Council approve three additional Ordinances associated with the update and
implementing the Land Use and Circulation Element (LUCE).
On August 21, 2018, the Council voted 5-0 to introduce Ordinance No. 1650 (2018 Series) and
provided direction to staff to revise and review five specific items to be brought back to Co uncil
after the Planning Commission has provided a recommendation.
On September 18, 2018, the City Council voted 5-0 to approve Ordinance No. 1650 (2018
Series) which comprehensively updates the City’s Zoning Regulations, Title 17 of the City’s
Municipal Code. The Zoning Regulations Ordinance became effective 30 days after its
adoption.
The five directional items from Council on August 21 st for further review are as follows:
1) Tiny Homes – Reduce the maximum size from 450 sq. ft. to possibly 300 sq. ft. (without
counting the loft) and require a Director’s Action for design review and to be an
appealable decision.
2) ADU Owner Occupancy Requirement – Consider removing the owner occupancy
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requirement for ADUs in the R-3 and R-4 zones.
3) ADU Lot Coverage Requirement – Consider reducing the lot coverage exemption for an
ADU from 450 sq. ft. to 300 sq. ft. (consistent with the size of a Tiny Home).
4) Climate Action Plan (CAP) Electric Vehicle (EV) Parking – Further implement the CAP
by requiring installation of EV capable parking spaces in new developments or
significant remodels/additions.
5) Downtown Overlay Zone – Revise the Zoning Code to require a Development
Agreement (DA) for any project proposing to take advantage of increased height (above
45 feet), within the Downtown Overlay. The Council’s motion included the provision
that additional workforce and affordable housing opportunities in the project be
incorporated into a Development Agreement .
The Planning Commission has reviewed these issues, received public testimony, and
recommends adoption of the Amendments as summarized below and discussed in more detail in
the body of the report.
Planning Commission Meeting October 10, 2018
The discussion at the Planning Commission on October 10, 2018 was centered mostly around the
proposed Tiny Home regulations. Eight speakers offered public comments on Tiny Homes to
further inform the discussion.
After lengthy discussion, the Commission made the following changes to the Tiny Homes
regulations:
1. Size. Revised the maximu m size of a tiny home to 400 sq. ft (not counting loft area). The
original staff proposal was 450 sq. ft; the Council suggested the Planning Commission
consider 300 sq. ft. The Commission landed on 400 sq. ft. to provide more flexibility and
to be consistent with State law, specifically the Health & Safety Code (HSC Section
18010). Tiny Homes on wheels are defined as recreational vehicles and the HSC allows
recreational vehicles to be a maximum of 400 sq. ft. measured at the exterior dimensions.
2. Time Limit. The Commission responded to public testimony and agenda correspondence
about concerns that the one-year approval period is a substantial disincentive for
individual to invest in a tiny home. The proposal considered by the Planning
Commission included a provision for the Director to grant extensions on an annual basis
or establish an extended expiration through conditions of approval. The Commission
added “up to a maximum of three years” to the extension language. In summary, the
conditions of approval may extend the one-year expiration up to three years; additional
one-year extensions may still be granted on an annual basis after the initial expiration.
3. Design. The Commission added a new Development Standard for the design of tiny
homes: “the design of a tiny home shall resemble the general appearance, siding, and
roofing of a traditional home.” This responded to public concerns about the aesthetics of
trailers as potential tiny homes. This design standard would preclude Airstreams and
similar trailer-like RVs from being used as tiny homes.
4. Inspection. The Commission also recommended deletion of the phrase, “and to allow the
city upon reasonable time and notice to inspect the premises for compliance.” This was
based on the City’s experience with the Re ntal Housing Inspection Program and Fourth
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Amendment concerns.
5. Aesthetics. The Commission added back in the “skirting” language that staff had
suggested be deleted as another design feature to improve the appearance of tiny homes
by screening the wheels and undercarriage.
6. Certification. The Commission added some language to the ANSI (American National
Standards Institute) certification to allow for a “comparable standard” and to ensure that
the City inspection verify that the tiny home is in good working order.
Other Directional Items
The Commission adjusted the lot coverage exemption for an Accessory Dwelling Unit (ADU) to
400 sq. ft. to be consistent with the size of a tiny home.
The Downtown Overlay Zone was recommended for continuance to tie it with the Flexible
Density study on smaller units (less than 600 sq. ft.) in the Downtown. This future study will
analyze environmental impacts of allowing the smaller units in the Downtown without density
limits and creating the Downtown Overlay zone for the Commercial Retail (C-R) properties of
the Downtown Core from Santa Rosa to Pepper St. (railroad trestle).
There were no comments or changes to any of the other directional items. The Commission had a
minor edit on one of the clean-up miscellaneous items to ensure that “extremely low” income
groups are included in the parking reductions for affordable housing projects.
The recommended changes by the Planning Commission are shown in green track changes in the
discussion below and incorpo rated into the attached draft Ordinance (Attachment A).
DISCUSSION
Item #1 – Tiny Homes on Wheels
In response to community and Council interest in allowing tiny homes on wheels, staff focused
on how regulations might be crafted to accommodate tiny homes o n wheels in backyards of
single-family homes as a housing alternative. The critical issues for tiny homes on wheels
revolve around how to address basic health and public safety considerations: wastewater
connections/disposal, electric power/natural gas pr ovision, and potable water.
The Council considered these issues at the April 2018 study session and gave direction for the
concerns to be addressed in a manner that could allow tiny homes on wheels to be established in
the back yards of R-1 lots. New regulations were included in Article 4 of the Zoning
Regulations. On August 21, 2018, the Council received public comments on tiny homes, most of
which centered on concerns that 450 sq. ft. was too large as a maximum size requirement. The
discussion centered around 300-350 sq. ft. as a maximum and recognized the importance of a loft
in tiny home designs.
Language has been provided in Section 17.86.210 to reduce the maximum size from 450 sq. ft. to
400 sq. ft. (without counting the loft) and requiring a Dir ector’s action application for design
review, as well as an appealable decision. As mentioned above, the Planning Commission
recommended 400 sq. ft. to provide more flexibility and consistency with the H ealth and Safety
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Code (HSC Section 18010). Section 17.86.210 has been amended to incorporate the changes per
Council direction (definitions addressed in Article 9 -17.158.044), as shown below;
Section 17.86.210 – Recreational Vehicles: Use as Dwelling; Parked on a Private Lot
E. Recreational Vehicles as Tiny Houses in Residential Zones. Moveable tiny houses shall be
considered an additional type of accessory dwelling unit, allowed as an accessory use to single-
unit residential dwelling unit, consistent with Government Code, Section 65852.2, subdivision
(g) which allows cities to adopt less restrictive requirements than the State-mandated minimums
for accessory dwelling units. A moveable tiny house that meets the definition in this subsection
may be built and occupied as a new detached accessory dwelling unit, subject to the Director’s
review and approval of a Director’s Action application, if it complies with the standards of this
subsection.
1. Development Standards. Moveable tiny houses shall conform with the requirements for new
detached accessory dwelling units, including but not limited to setbacks, lot coverage, height,
and other applicable zoning requirements of the zone in which the site of the proposed moveable
tiny house is located, except as modified by this subsection.
a. Number. No parcel may be approved for more than one moveable tiny house in a 12-
month period. No parcel may contain more than one moveable tiny house at a time. No
parcel may contain both a moveable tiny house and a conventional accessory dwelling
unit.
b. Time Limit. The approval of a movable tiny house through a Director’s Action shall
automatically expire after a 12-month period, unless a longer period is specified in the
approval up to a maximum of three years, or unless an extension is granted by the
Director. The Director may deny a time extension if the property is determined to be out
of compliance with the standards of this subsection.
c. Maintenance. The site shall be maintained as set forth in Chapter 17.76 (Property
Maintenance Standards).
d. Location. The moveable tiny house shall be located toward the rear of the property
screened from view from any public right-of-way, as set forth in Section 17.76.100
(Screening).
e. b. Size. The maximum square footage or habitable floor space for a moveable tiny house
shall be 400450 square feet, as measured by exterior wall dimensions (lofts shall not be
counted toward the maximum square footage). The moveable tiny house shall have at
least 100 square feet of first floor interior living space.
f. c. Replacement Parking. Where a moveable tiny house occupies a required parking
space, a replacement parking space is required. A replacement parking space may be
located in any configuration on the same lot as the moveable tiny house, 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.
g. Design. The design of a tiny house shall resemble the general appearance, siding, and
roofing of a traditional home.
6. Foundation Requirements. Once sited on the parcel of the primary unit, moveable tiny houses
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shall meet the following foundation requirements:
a. If the wheels are removed so the moveable tiny house sits on a foundation, and the
foundation shall follow the state approved requirements for foundation systems for
manufactured housing;
a. b. If The moveable tiny house shalldoes not have its wheels removed, and then all wheels
and leveling/support jacks shall sit on a concrete, paved, or compacted gravel surface
sufficient to support its weight, and the wheels, leveling/support jacks or undercarriage
must be skirted and not visible.
8. Procedure Requirements. A Director’s Action application shall be required to establish a
moveable tiny house including In addition to submitting the application materials and
information required by Section 17.86.020 (Accessory Dwelling Units and Guest Quarters) for
an accessory dwelling unit; an applicant for a moveable tiny house shall submit proof that:
a. The proposed moveable tiny house is licensed and registered with the California
Department of Motor Vehicles;
b. The proposed moveable tiny house has been certified by a qualified third-party inspector
as meeting ANSI 119.2 or 119.5 requirements or comparable standards, or was built to
meet ANSI 119.2 or 119.5 requirements as demonstrated by sufficient evidence
satisfactory to the Director; at a minimum this inspection shall verify that the unit is in
good working order for living, sleeping, eating, cooking, and sanitation, including the
absence of any exterior shell water leaks;
c. The applicant is the property owner, or has sufficient written permission from the
property owner, of the intended location of the proposed moveable tiny house;
d. Prior to the issuance of building permits, a covenant agreement shall be recorded which
discloses the structure’s approved floor plan and status as a movable tiny home 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. 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 movable tiny home shall no longer be used as
overnight sleeping quarters.
e. The proposed moveable tiny house meets the standards of this subsection E.
Section 17.158.044 – T Definitions
Tiny House - Moveable. A residential dwelling unit that is accessory to a principal residential
dwelling unit located on the same parcel of land, which provides complete independent living
quarters for one household, and meets the following conditions:
1. Is towable by a bumper hitch, frame-towing hitch, or fifth-wheel connection and is
designed not to and cannot move under its own power;
2. Is no larger than allowed by California State law for movement on public highways;
3. Is a detached self -contained residential dwelling unit which includes permanent facilities
and functional areas for living, sleeping, eating, cooking, and sanitation.
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Item #2 – Accessory Dwelling Units (Owner Occupancy)
At the April 2018 study session, the Council did not direct any changes to the recently adopted
ADU Ordinance. There was public and Council testimony at the study session about the
importance of the owner occupancy requirement, particularly for protection of the R -1 single-
family neighborhoods. Since the study session, staff has continued to receive public comments
about removing barriers to ADU construction. One suggestion was to remove the owner
occupancy requirements from the R-3 and R-4 zones while maintaining it in the R-1 and R-2
zones. Owner occupancy would continue to help the preservation of the lower density
residential neighborhoods, particularly R-1 zones, while not being required in the R-3 and R-4
zones which are designated for higher density residential, condominiums, and apartment rental
projects (see proposed amendment to Section 17.86.020B.5 below for consideration);
17.86.020B.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.
Item #3 – Accessory Dwelling Units (Lot Coverage)
At the Council meeting of August 21, 2018, the Council also discussed the lot coverage
exemption for ADUs. The Planning Commission had recommended t hat the lot coverage
exemption for an ADU be 450 sq. ft. After the discussion of Tiny Homes on August 21st, the
Council’s direction was to reduce the lot coverage exemption of 300 sq. ft. (to be consistent with
the size of a Tiny Home). The lot coverage exemption has been reduced from 450 sq. ft. to 400
sq. ft. to be consistent with the maximum size of a tiny home as recommended by the Planning
Commission.
Section 17.70.120B – Excluded from Lot Coverage
5. Up to 300400 square feet of an accessory dwelling unit. Any additional square footage of
an accessory dwelling unit shall be included in lot coverage.
Item #4 – Implementing the Climate Action Plan (CAP) Electric Vehicle Parking
As a Major City Goal, initiatives on climate action planning are occurring on several fronts; the
Climate Action Plan (CAP), Zoning Regulations Update, and other policy programs. The current
CAP includes several policy directives that can be implemented now via the Zoning Regulations.
The Planning Commission reviewed a White Paper outlining possible implementation strategies
and at the May 3, 2018 community workshop, participants suggested additional strategies that
could be addressed in the Zoning Regulations.
New strategies in the updated Zoning Regulations include:
▪ As an incentive for increased height in the C-D zone and a community benefit for a PD
overlay, having a developer provide net -zero energy construction features
▪ As an incentive for increased height in the C-D zone and a community benefit for a PD
overlay, requiring a Transportation Demand Management (TDM) program that achieves
a measurable mode shift and that a covenant agreement is signed by the property owner
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for long-term implementation
▪ Allowing car sharing spaces (e.g., ZipCar, Rideshare, etc.) to be located in developments
without increased parking requirements
▪ Requiring parking (approximately 10% of total required spaces) in multi-family and
commercial projects for electric vehicles
▪ Requirements for showers, lockers and changing rooms for large developments
▪ Reducing car parking requirements and increasing bike parking
Staff identified additional opportunities to further implement the Climate Action Plan upon
receiving additional public comments after the Planning Commission action on June 27 th.
Increased parking options for EVs was the emphasis of the additional review, including the
requirement for EV- Capable parking spaces with new development or significant remodels 1.
As introduced to the Council on August 21st, the following additional standards should be
incorporated into the Zoning Regulations Update:
▪ Expand the parking requirements to include EV capable (conduit installed ready for hook
up) in addition to the already required EV ready (charging station installed)
▪ Provide more definitions in this section for terms such as “equipped with charging
equipment.”
▪ Specify minimum requirements for charger types and electric panel capacity
▪ Apply the EV parking requirements to substantial redevelopments and reconfigured
parking lots in addition to new developments.
EV Capable parking would be designed to provide for future installation of EV charging stations.
Section 17.72.040 has been amended to incorporate the changes and new definitions will also be
provided for EV ready and EV capable (addressed in Ar ticle 9 -17.158.014 - Definitions), as
shown below:
17.72.040 – Parking for Electric Vehicles
A. Parking spaces for electric vehicles shall be provided for all uses as indicated in Table 3-5:
Electric Vehicle (EV) Parking or in accordance with the requi rements of the California
Green Building Standards Code and any local amendments thereto, whichever yields the
greater number of spaces. All such spaces shall count toward the minimum required
parking spaces before applying any parking reductions. These requirements do not apply in
the Downtown zone or within an in-lieu fee district.
1 Climate Action Plan Transportation and Land Use Strategies. TLU 2.2: Require all new development with 50 or
more parking spaces to pre-wire for electric vehicle charging stations and provide a minimum 2 percent
charging spaces.
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Table 3-5: Electric Vehicle (EV) Parking
Land Use Number of Total Required Spaces
52-10 11-15 16-250 More than 250
Multi-unit Residential with 54
or More Units
1 EV ready
space
minimum, plus
25% EV
capable
2 EV ready
spaces
minimum,
plus 50% EV
capable
32 EV ready
spaces
minimum, plus
50% EV
capable
10% EV ready
spaces, plus
50% EV
capable
Nonresidential – Commercial,
Office, Industrial, and Mixed
Use
1 EV ready
space
minimum, plus
25% EV
capable
2 EV ready
spaces
minimum,
plus 50% EV
capable
3 EV ready
spaces
minimum, plus
50% EV
capable
10% of
parking EV
ready spaces,
plus 25% EV
capable
Industrial 0 EV space
minimum
1 EV space
minimum
2 EV ready
spaces
minimum
8% of parking
spaces
B. All electric vehicle spaces EV ready spaces, as defined in this Title, shall be equipped with
full electric vehicle charging equipment, as defined in this Title, including an electric
vehicle charging station, the use of which the property owner or operator may require
payment, at his/her discretion. All EV capable spaces, as defined in this Title, shall be
served by an empty raceway to supply power for future EV charging stations at any given
time.
C. Any charging or similar equipment shall not be placed within the required parking space
dimensions and shall not obstruct any pedestrian path of travel.
D. Electric EV ready and EV capable spaces and the associated electric vehicle charging
equipment shall be provided for all new developments and whenever a substantial addition
to and existing development is proposed, as defined by Section 17.106.020B (Enlargements
and Modifications).
E. Where an existing legal, nonconforming parking condition exists, the EV spaces
requirement shall be based on the existing number of parking spaces, not the required
number of parking spaces.
17.158.014 – Definitions
EV Capable Space. A parking space constructed with empty raceway (i.e., pathway for future
electrical wiring, usually in enclosed walls or pavement) to supply power for future EV charging
stations at any given time.
EV Ready Space. A parking space constructed with full electrical circuits (e.g., junction box,
conduit, receptacle, overprotecting devices, wiring, etc.) that are ready for connection with an
EV charging station at any given time.
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Item #5 – Downtown Overlay Zone (C-R Zone of Downtown Core from Santa Rosa to
Pepper St.)
The City Council at the April 2018 study session and the Planning Commission with their final
action on June 27th, agreed with the concept of applying the Downtown development standards
to the C-R Zone of the Downtown Core from Santa Rosa to the railroad trestle at Pepper Street.
This would facilitate downtown development in the interim period while developin g the full
Upper Monterey Area Plan as called for in LUCE Program 8.2.2 (the area along Monterey from
Santa Rosa to Pepper Street is located in the Downtown Core of the LUCE, while the Specific
Planning Area for Upper Monterey extends all the way to Buena Vista near the Highway 101 on-
ramp). In the proposed Downtown Overlay Zone, applicants may choose to take advantage of the
Downtown development standards for more intensive development with approval from the
Planning Commission that the project is consistent with the expectations for downtown core
development.
On August 21, 2018, the City Council considered the Planning Commission’s recommendation
to designate the approximately 15.8-acre portion of the C-R Zone in the Downtown Core, as C-
R-D, Retail Commercial with the Downtown Overlay Zone. After receiving a large amount of
public correspondence concerned about the potential for increased height allowances in this area,
the City Council directed the item back to the Planning Commission for further review ,
specifically to include a provision that a DA be approved for any project proposing to take
advantage of increased height (above 45 feet). The Council’s motion included the provision that
additional workforce and affordable housing opportunities be inco rporated into the project and
formalized in the DA. A DA is a negotiated agreement between the applicant and City subject to
the parameters set forth in Zoning Regulation Section 17.128 (Development Agreements).
Staff anticipates returning with the Downtown Overlay Zone to the Council in spring 2019, in
conjunction with the Downtown Flexible Density and associated environmental analysis as
discussed in the next paragraph. It is appropriate to combine the Downtown Overlay and
Downtown Density into one study, including environmental review, to comprehensively address
density, height, and other development issues in the Downtown Core.
Flexible Density Downtown
During the process of preparing the comprehensive update, staff investigated the option for
implementing LUCE policy 4.28, which calls for allowing variable residential densities as a key
strategy to encourage and increase housing production in the Downtown. Staff proposed an
approach to eliminate any density standards for units 600 square feet a nd smaller, as long as
other development standards, such as setbacks, lot coverage, and height are satisfied. The City
Council expressed support of this approach during the public hearing process. However, because
the LUCE EIR did not anticipate and thus address the potential impacts associated with the
possible level of housing production associated with this policy change, staff determined that
more in-depth policy and CEQA analysis is required before any action can occur.
Staff has determined the sco pe of work for the traffic study, including the methodology and
downtown build-out scenarios. Staff anticipates returning to the Council with more information
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about funding requirements and a schedule to move this component of the Zoning Regulations
Update project forward.
Miscellaneous Minor Follow-up Items
In addition to the five Council directional items identified above staff has identified a number of
minor revisions for the Planning Commission to consider for internal consistency and additional
clar ification.
Staff has identified the following items for clean-up after its initial work with the new
Regulations:
a. Revise Section 17.10.020A to provide consistency throughout the Zoning Regulations for
the M/A abbreviation which identifies a use as allowed above the ground floor only, or
Subject to Minor Use Permit review, the use may be established on the ground floor
(Page 2-1).
b. Revise Table 2-1 to allow Single-Unit Dwellings in the R-1 Zone, which was removed in
error (Page 2-4).
c. Revise Table 2-6, Table 2-8, & Table 2-10 to include the word density when referring to
density minimum allowances for greater clarification (Pages 2-15, 2-17, & 2-19).
d. Revise Section 17.32.030E.2b(2) SLO Green Build reference to the most current title as
Green Point Rated New Home Multi-Family Checklist (Page 2-29).
e. Restructure Section 17.70.170C.5 to provide clarity to building features which may
projected into the required setbacks a specific distance (Pages 3-35 & 3-36).
f. Revise Table 3-4 Parking Requirements by Use for Single-Unit Dwellings to require a
minimum of two parking spaces for the first four bedrooms and 0.75 spaces for each
additional bedroom beyond the first four. Provided to reflect ITE Demand and further the
intent to require additional parking for larger dwe llings (Page 3-48).
g. Revise Table 3-4 Parking Requirements by Use for Multi-Unit Residential to relocate and
clarify the parking requirement for elderly housing to apply broadly to different land uses
as Subsection B after Table 3-4 (Page 3-48) (This is a re-insertion of existing language
from the prior Code.)
h. Revise Table 3-4 Parking Requirements by Use for Medical-Doctor’s Office to 1 per 200
rather than 1 per 300 to reflect ITE Demand, which was provided in error (Page 3-50).
i. Clarify note 2 after Table 3-6 Required Bicycle Parking to require minimum of two
bicycle parking spaces per unit rather than per tenant (Page 3-56).
j. Revise Section 17.86.100B.2 to eliminate the term ministerial, as Director Actions are
discretionary (Page 4-20).
k. Revise Section 17.92.020F to clarify the review process for additions to nonconforming
structures as subject to a Directors Action permit (Page 5-2).
l. Revise Section 17.138.130 to remove the word “except” from the last sentence , in order
to clarify that private selection of individuals by project owners is not permitted for any
affordable units (Page 8-8).
m. Revise Section 17.140.040K to include a new subsection addressing parking
requirements for housing occupied exclusively by extremely low, very low, or low-
income households (Page 8-15) (This is a re-insertion of existing language from the prior
Code similar to “g” above.)
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n. Revise Section 17.140.070 to include the changes to State Housing Law to provide for
child care facilities as part of affordable housing projects, as well as address the
appropriate review authority for alternative incentives actions (Page 8-17).
CONCURRENCES
Updating the Zoning Regulations is a City team effort. The City Attorney’s office has been
regularly involved in the Update since the project’s incept ion. The Public Works, Utilities, and
Administration Departments, including Natural Resources, provided subject matter expertise.
ENVIRONMENTAL REVIEW
On September 16, 2014, the City Council certified the Land Use and Circulation Element
(LUCE) Final Program Environmental Impact Report (EIR) (State Clearinghouse Number
2013121019) and adopted findings and a statement of overriding considerations pursuant to the
California Environmental Quality Act (CEQA). Pursuant to CEQA, the City prepared an In itial
Study/Negative Declaration (IS/ND) to evaluate the potential environmental effects of the
proposed Zoning Regulations Update. On August 21, 2018, the Council voted to adopt the
IS/ND, and provided direction for staff to revise and review specific ite ms to be brought back to
Council after the Planning Commission has provided a recommendation.
Pursuant to State CEQA Guidelines Sections 15164 and 15162, a subsequent environmental
document is not warranted because: 1) the proposed amendments would not re sult in any new
impacts not previously disclosed in the adopted IS/ND and would not increase the severity of
any impact identified in the adopted IS/ND, 2) the circumstances under which the amendments
will be undertaken will not require major changes to the adopted IS/ND, 3) and the proposed
amendments do not require any new mitigation measures.
In accordance with State CEQA Guidelines Section 15164, an Addendum to the adopted IS/ND
has been prepared to address the current project, which includes the direc tional items identified
by Council and additional minor follow-up items (refer to Attachment B, Addendum to Initial
Study/Negative Declaration). As noted in the Addendum, the proposed amendments are minor
and none would result in increased density, size, o r height than what was evaluated in the
adopted Initial Study/Negative Declaration; the proposed amendments would not result in the
development of future projects in any location beyond what is assessed in the adopted Initial
Study/Negative Declaration; and the changes would provide greater clarity in the evaluation of
projects pursuant to the Zoning Regulations, such as tiny homes, accessory dwelling units, and
the provision of additional facilities and amenities supporting electric vehicles consistent wit h
State Law, the Climate Action Plan, and the General Plan.
FISCAL IMPACT
When the General Plan Update was adopted in 2014 it was accompanied by a Fiscal Impact
Report prepared by Applied Development Economics, Inc. The purpose of the report was to
determine if the City’s General Plan Land Use Element was fiscally balanced, or if the demand
for services created by new residences, for example, would outpace the ability of new revenues
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to support the cost of those services. The report concluded that the Cit y’s General Plan was
fiscally balanced and that new revenues expected from property tax, sales tax, and transient
occupancy tax, as examples, would provide sufficient resources for the City to cover the cost,
such as for public safety, parks and recreation, and general government administration. The fiscal
impact report was not updated as part of the Zoning Regulations Update because there are no
changes proposed that were not anticipated as part of the prior report. The Zoning Regulations
Update is an implementation measure of the Land Use Element update, and therefore is expected
to have a neutral fiscal impact.
ALTERNATIVES
1. Modify the Proposed Ordinances – The Council may make modifications to the proposed
Ordinances for staff to incorporate into the final documents.
2. Continue Consideration of Ordinances to a Future Date – The Council could direct staff to
conduct additional research on one of more of recommended ordinance components. The
Council should provide direction to staff if this alternative is chosen.
3. Direct Staff not to Move Forward with Changes to the Zoning Regulations – The Council
could decide to direct staff to focus on other priorities and not pursue changes to the Zoning
Regulations at this time. This alternative is not recommended because this is the culmination
of a 20-month work effort. The Council introduced the new Zoning Ordinance on August 21,
2018, adopted it on September 18th, and directed that the specific topics discussed in this
report be brought back to complete the Zoning Regulations Update and implement the
LUCE.
Attachments:
a - Draft Ordinance
b - Council Reading File - Initial Study Addendum
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ORDINANCE NO. _____ (2018 Series)
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SAN LUIS
OBISPO, CALIFORNIA INTRODUCING FOLLOW-UP ITEMS FROM
THE COUNCIL’S APPROVAL OF THE COMPREHENSIVE UPDATE TO
THE CITY’S ZONING REGULATIONS (TITLE 17) OF THE MUNICIPAL
CODE INCLUDING TINY HOMES, ACCESSORY DWELLING UNITS
OWNER OCCUPANCY AND LOT COVERAGE REQUIREMENTS,
ELECTRIC VEHICLE PARKING, DOWNTOWN OVERLAY ZONE, AND
ADDITIONAL MISCELLANEOUS CLEAN UP ITEMS. INCLUDING
ADOPTION OF AN ADDENDUM TO A NEGATIVE DECLARATION OF
ENVIRONMENTAL REVIEW, AS REPRESENTED IN THE STAFF
REPORT AND ATTACHMENTS DATED NOVEMBER 27, 2018 (ZONING
REGULATIONS, GENP-0327-2017)
WHEREAS, the City Council of the City of San Luis Obispo conducted a series of
public hearings in the Council Chamber of City Hall, 990 Palm Street, San Luis Obispo,
California on October 21, 2014, December 2, 2014, and December 9, 2014 , for the purpose of
final adoption of the Land Use and Circulation Element update project (LUCE); and
WHEREAS, the City Council of the City of San Luis Obispo in the Council Chamber
of City Hall, 990 Palm Street, San Luis Obispo, California on September 18, 2018, adopt ed an
Ordinance for the comprehensive update to the Zoning Regulations in order to implement the
LUCE; and
WHEREAS, City staff has conducted extensive public outreach in the form of news
releases, stakeholder interviews, regularly scheduled public hearings with the Planning
Commission, and two community workshops held on June 3, 2017 and May 3, 2018; and
WHEREAS, after review of the information gathered by staff during public outreach
and public hearings, staff recommends additional amendments to Tile 17 of the Municipal Code;
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 October 10, 2018, for the purpose of recommending the additional amendments
to Title 17 of the Municipal Code; and
WHEREAS, the City Council of the City of San Luis Obispo conducted a public hearing
in the Council Chamber of City Hall, 990 Palm Street, San Luis Obispo, California on
November 27, 2018, for the purpose of considering amendment s to the Title 17 of the Municipal
Code;
WHEREAS, notices of said public hearing were made at the time and in the manner
required by law.
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NOW, THEREFORE, BE IT ORDAINED by the Council of the City of San Luis
Obispo as follows:
SECTION 1. Findings. Based upon all the evidence, the City Council makes the
following finding:
1. The proposed amendments to Title 17 will not cause significant health, safety, or
welfare concerns, since the amendments are consistent with the General Plan and
directly implement City goals and polices.
SECTION 2. Environmental Review. An addendum to the Initial Study / Negative
Declaration for the Zoning Regulations Update (GENP -0327-2017) was prepared for the
proposed amendments to the City Zoning Regulations, Title 17 of the City’s Municipal Code.
The addendum concluded the following:
i) None of the following circumstances included in Section 15162 of the State CEQA
Guidelines have occurred which require a subsequent environmental document:
a) The project changes do not result in new or more severe environmental impacts.
b) The circumstances under which the project is undertaken will not require major
changes to the adopted Negative Declaration.
c) The modified project does not require any new mitigation measures.
ii) The proposed Zoning Regulations Update, including proposed amendments
identified in this Addendum, would make revisions, additions, corrections and
clarifications to various sections of the Zoning Regulations to ensure consistency
and successful implementation of the Land Use and Circulation Element. The
proposed modifications to the previously-approved Zoning Regulations Update are
minor and consistent with the scope of the comprehensive Zoning Regulations
Update.
iii) The changes are consistent with State Law, the City of San Luis Obispo Climate
Action Plan, and the City of San Luis Obispo General Plan.
Based on the foregoing, the City Council does hereby adopt the Addendum to the Initial Study
/ Negative Declaration for the Zoning Regulations Update, as provided in Attachment B.
SECTION 3. Section 17.10.020.A, entitled “Allowed Uses” of the San Luis Obispo
Municipal Code is hereby amended as follows:
A. Allowed Uses. Uses within zones shall be regulated as set forth in Table 2-1: Uses
Allowed by Zone, subject to subsections B through F of this section and additional
regulations specified in the Specific Use Regulations column of Table 2-1. Land uses are
defined in Chapter 17.156 (Land Use Definitions). In Table 2-1, symbols shall have these
meanings:
A The use is allowed as a matter of right.
MUP The use requires a Minor Use Permit approved by the Director, as
provided in Section 17.110.030 (Procedure – Minor Use Permit).
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CUP The use requires a Conditional Use Permit approved by the Planning
Commission, as provided in Section 17.110.030 (Procedure – Minor
Use Permit).
A/MM/A The use is allowed above the ground floor only. Subject to Minor Use
Permit review, the use may be established on the ground floor.
SECTION 4. Section 17.10.020, Table 2-1 entitled, “Uses Allowed by Zone” of the San
Luis Obispo Municipal Code is hereby amended to include an “A” in the column for the R-1
zone and in the line item “Single-Unit Dwellings, Detached,” to read as follows:
Table 2-1: Uses Allowed By Zone
RESIDENTIAL USES
General Residential Housing Types
Single-Unit
Dwellings,
Detached
A CUP A A A A A
SECTION 5. Section 17.18.020, Table 2-6, entitled “R-2 Zone Development
Standards” of the San Luis Obispo Municipal Code is hereby amended to add the term “density”
under the Additional Regulations column, as follows:
Table 2-6: R-2 Zone Development Standards
Development Standard R-2 Zone Additional Regulations
Maximum Residential
Density
12 units/net acre
See also Section 17.70.040 (Density). Regardless of the
density calculation, at least two density units shall be
allowed on each parcel; except this shall not apply to
common interest subdivisions.
SECTION 6. Section 17.20.020, Table 2-8, entitled “R-3 Zone Development
Standards” of the San Luis Obispo Municipal Code is hereby amended to add the term “density”
under the Additional Regulations column, as follows:
Table 2-8: R-3 Zone Development Standards
Development Standard R-3 Zone Additional Regulations
Maximum Residential
Density
20 units/net acre
18 units/net acre for
properties within an Airport
Safety zone
See also Section 17.70.040 (Density).
Regardless of the density calculation, at
least three density units shall be allowed on
each parcel; except this shall not apply to
common interest subdivisions.
SECTION 7. Section 17.22.020, Table 2-10, entitled “R-4 Zone Development
Standards” of the San Luis Obispo Municipal Code is hereby amended to add the term “density”
under the Additional Regulations column, as follows:
Table 2-10: R-4 Zone Development Standards
Development Standard R-4 Zone Additional Regulations
Maximum Residential
Density
24 units/net acre See also Section 17.70.040 (Density). Regardless of
the density calculation, at least four density units
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shall be allowed on each parcel; except this shall
not apply to common interest subdivisions.
SECTION 8. Section 17.32.030.E.2.b.(2) of the San Luis Obispo Municipal Code is
hereby amended as follows:
(2) The project is designed to achieve a minimum value of 50 points on the SLO green build
multi-unit residential greenpoint checklist Green Point Rated New Home Multi-Family
Checklist.
SECTION 9. Section 17.70.120.B of the San Luis Obispo Municipal Code, entitled
“Excluded from Lot Coverage” is hereby amended to add a new subsection 5 as follows:
5. Up to 400 square feet of an accessory dwelling unit. Any additional square footage of an
accessory dwelling unit shall be included in lot coverage.
SECTION 10. Section 17.70.170.C.5a of the San Luis Obispo Municipal Code, is
hereby amended as follows:
5. Architectural Features. The following and similar architectural features may extend into a
required setback no more than 30 inches:
a. Cornices, canopies, eaves, buttresses, chimneys, solar collectors, shading louvers, reflectors,
water heater enclosures, and bay or other projecting windows that do not include usable
floor space, may extend no more than 30 inches into a required setback (see Figure 12:
Architectural Feature Projections into Required Setbacks).
SECTION 11. Section 17.72.030, Table 3-4 entitled “Parking Requirements by Use” of
the San Luis Obispo Municipal Code is hereby amended in the line item “Single-Unit
Dwellings, Detached,” under the Number of Off-Street Parking Spaces Required column to read
as follows:
Table 3-4: Parking Requirements by Use
Type of Land Use Number of Off-Street Parking Spaces Required
RESIDENTIAL USES
General Residential Housing Types
Single-Unit Dwellings, Detached
2 parking spaces for the first four bedrooms, 0.75 space
per each additional bedroom (no requirement for
Accessory Dwelling Units), plus 1 guest parking space per
5 units in a tract development
SECTION 12. Section 17.72.030, Table 3-4 entitled “Parking Requirements by Use” of
the San Luis Obispo Municipal Code is hereby amended in the line item “Multi-Unit
Residential” under the Number of Off-Street Parking Spaces Required column to read as
follows:
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Table 3-4: Parking Requirements by Use
Type of Land Use Number of Off-Street Parking Spaces Required
RESIDENTIAL USES
General Residential Housing Types
Multi-Unit Residential
0.75 space per bedroom (no less than 1 space per dwelling
unit), plus 1 guest parking space per 5 units
Housing occupied exclusively by persons aged 62 or older
may provide 0.5 space per dwelling unit
SECTION 13. Section 17.72.030, Table 3-4 entitled “Parking Requirements by Use” of
the San Luis Obispo Municipal Code is hereby amended in the line item “Medical and Dental
Offices” under the Number of Off-Street Parking Spaces Required column to read as follows:
Table 3-4: Parking Requirements by Use
Type of Land Use Number of Off-Street Parking Spaces Required
Offices
Business and Professional Offices 1 space per 300 sf
Medical and Dental Offices 1 space per 3200 sf
SECTION 14. Section 17.72.030 of the San Luis Obispo Municipal Code, entitled
“Required Parking Spaces” is hereby amended to add a new subsection B to read as follows:
B. Elderly housing parking. Housing occupied exclusively by persons aged 62 or older may provide
one-half space per dwelling unit or one space per four occupants of a group quarters.
Current subsections B and C of Section 17.72.030 are hereby reformatted as C and D,
respectively.
SECTION 15. Section 17.72.040 of the San Luis Obispo Municipal Code, entitled
“Parking for Electric Vehicles” is hereby amended as follows:
A. Parking spaces for electric vehicles shall be provided for all uses as indicated in Table 3-5:
Electric Vehicle (EV) Parking or in accordance with the requirements of the California Green
Building Standards Code and any local amendments thereto, whichever yields the greater number
of spaces. All such spaces shall count toward the minimum required parking spaces before
applying any parking reductions. These requirements do not apply in the Downtown zone or within
an in-lieu fee district.
Table 3-5: Electric Vehicle (EV) Parking
Land Use Number of Total Required Spaces
52-10 11-15 16-250 More than 250
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Multi-unit Residential
with 5 4 or More Units
1 EV ready
space minimum,
plus 25% EV
capable
2 EV ready
spaces minimum,
plus 50% EV
capable
32 EV ready
spaces minimum,
plus 50% EV
capable
10% EV ready
spaces, plus 50%
EV capable
Nonresidential –
Commercial, Office,
Industrial, and Mixed
Use
1 EV ready
space minimum,
plus 25% EV
capable
2 EV ready
spaces minimum,
plus 50% EV
capable
3 EV ready
spaces minimum,
plus 50% EV
capable
10% of parking
EV ready spaces,
plus 25% EV
capable
Industrial 0 EV space
minimum
1 EV space
minimum
2 EV ready
spaces minimum
8% of parking
spaces
B. All electric vehicle spacesEV ready spaces, as defined in this Title, shall be equipped with full
electric vehicle charging equipment, as defined in this Title, including an electric vehicle charging
station, the use of which the property owner or operator may require payment, at his/her discretion.
All EV capable spaces, as defined in this Title, shall be served by an empty raceway to supply power
for future EV charging stations at any given time.
C. Any charging or similar equipment shall not be placed within the required parking space
dimensions and shall not obstruct any pedestrian path of travel.
D. Electric EV ready and EV capable spaces and the associated electric vehicle charging equipment
shall be provided for all new developments and whenever a substantial addition to and existing
development is proposed, as defined by Section 17.106.020B (Enlargements and Modifications).
E. Where an existing legal, nonconforming parking condition exists, the EV spaces requirement shall
be based on the existing number of parking spaces, not the required number of parking spaces.
SECTION 16. Section 17.72.070.B, Note 2 of Table 3-6 entitled “Required Bicycle
Parking” of the San Luis Obispo Municipal Code is hereby amended to read as follows:
Table 3-6: Required Bicycle Parking
Land Use
Example
Standard
(Number of Bicycle
Parking Spaces)
Short
Term
Long
Term
Notes:
1. sf = square feet of gross floor area
2. Minimum requirements. All nonresidential uses shall provide a minimum of two bicycle parking spaces per site. In the
case of multi-tenant nonresidential buildings, minimum required bicycle parking shall be two spaces per tenant unit.
Alternative compliance may supersede this requirement.
3. Mixed-use and Mix of Uses. When there are two or more separate primary uses on a site, the required bicycle parking
for the site is the sum of the required parking for the individual primary uses.
4. Short-term and long-term percentages listed in this table are intended as guidelines subject to a final determination by
the Director.
SECTION 17. Section 17.86.020.B.5 of the San Luis Obispo Municipal Code, entitled
“Accessory Dwelling Units and Guest Quarters” is hereby amended to read as follows:
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-
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Occupancy is not required in the R-3 or R-4 zones.
SECTION 18. Section 17.86.100.B.2 of the San Luis Obispo Municipal Code, entitled
“Permits Required” is hereby amended as follows:
2. Adult day care facilities serving seven to 12 clients onsite at one time and large family day care
homes for children may be established in any zone where dwellings are allowed, subject to
performance standards listed below. These facilities require written approval by the Director as
a ministerial Director’s Action. In accordance with applicable sections of the California Health
and Safety Code, the Director shall approve the use when he or she determines that the proposed
facility:
SECTION 19. Section 17.86.210, entitled “Recreational Vehicles - Use as Dwelling -
Parked on a Private Lot ” of the San Luis Obispo Municipal Code is hereby amended to add a
new subsection E as follows:
E. Recreational Vehicles as Tiny Houses in Residential Zones. Moveable tiny houses shall be
considered an additional type of accessory dwelling unit, allowed as an accessory use to single-unit
residential dwelling unit, consistent with Government Code, Section 65852.2, subdivision (g) which
allows cities to adopt less restrictive requirements than the State-mandated minimums for accessory
dwelling units. A moveable tiny house that meets the definition in this subsection may be built and
occupied as a new detached accessory dwelling unit, subject to the Director’s review and approval
of a Director’s Action application if it complies with the standards of this subsection.
1. Development Standards. Moveable tiny houses shall conform with the requirements for new
detached accessory dwelling units, including but not limited to setbacks, height, and other
applicable zoning requirements of the zone in which the site of the proposed moveable tiny house
is located, except as modified by this subsection.
a. Number. No parcel may be approved for more than one moveable tiny house in a 12-month
period. No parcel may contain more than one moveable tiny house at a time. No parcel may
contain both a moveable tiny house and a conventional accessory dwelling unit.
b. Time Limit. The approval of a movable tiny house through a Director’s Action shall
automatically expire after a 12-month period, unless a longer period is specified in the
approval up to a maximum of three years, or unless an extension is granted by the Director.
The Director may deny a time extension if the property is determined to be out of compliance
with the standards of this subsection.
c. Maintenance. The site shall be maintained as set forth in Chapter 17.76 (Property
Maintenance Standards).
d. Location. The moveable tiny house shall be located toward the rear of the property screened
from view from any public right-of-way, as set forth in Section 17.76.100 (Screening).
e. Size. The maximum square footage or habitable floor space for a moveable tiny house shall
be 300 square feet, as measured by exterior wall dimensions (lofts shall not be counted
toward the maximum square footage). The moveable tiny house shall have at least 100
square feet of first floor interior living space.
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f. Replacement Parking. Where a moveable tiny house occupies a required parking space, a
replacement parking space is required. A replacement parking space may be located in any
configuration on the same lot as the moveable tiny house, 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.
g. Design. The design of a tiny house shall resemble the general appearance, siding, and
roofing of a traditional home.
2. Parking Spaces. Moveable tiny houses shall not require additional parking.
3. Mechanical Equipment. All mechanical equipment for a moveable tiny house shall be
incorporated into the structure and shall not be located on the roof.
4. Utility Connections and Requirements. Moveable tiny houses shall not require separate utility
meters from the primary unit. Moveable tiny houses may be off-grid and not connected to one
or more utility systems, but only if the applicant provides sufficient proof, to the satisfaction of
the Director and the Building Official, that the moveable tiny house has adequate, safe, and
sanitary utility systems providing water, sewer, heating, cooling, and electric power.
5. Addresses. Moveable tiny houses shall not have separate street addresses from the primary unit.
6. Foundation Requirements. Once sited on the parcel of the primary unit, moveable tiny houses
shall meet the following foundation requirements:
a. The moveable tiny house shall not have its wheels removed, and all wheels and
leveling/support jacks shall sit on a concrete, paved, or compacted gravel surface sufficient
to support its weight, and the wheels, leveling/support jacks or undercarriage must be
skirted and not visible.
7. Emergency and Rescue Openings. Moveable tiny houses shall meet the requirements of Section
R310 of the California Building Code for emergency escape and rescue openings. Egress roof
access windows in lofts used as sleeping rooms shall be deemed to meet this requirement if
installed such that the bottom of the opening is not more than 44 inches above the loft floor,
provided the egress roof access window complies with the minimum opening area requirements
of California Building Code Section R310.2.1.
8. Procedure Requirements. A Director’s Action application shall be required to establish a
moveable tiny house including the application materials and information required by Section
17.86.020 (Accessory Dwelling Units and Guest Quarters) for an accessory dwelling unit, an
applicant for a moveable tiny house shall submit proof that:
a. The proposed moveable tiny house is licensed and registered with the California
Department of Motor Vehicles;
b. The proposed moveable tiny house has been certified by a qualified third-party inspector as
meeting ANSI, 119.2 or 119.5 requirements or comparable standards, or was built to meet
ANSI 119.2 or 119.5 requirements as demonstrated by sufficient evidence satisfactory to the
Director; at a minimum this inspection shall verify that the unit is in good working order
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for living, sleeping, eating, cooking, and sanitation, including the absence of any exterior
shell water leaks;
c. The applicant is the property owner, or has sufficient written permission from the property
owner, of the intended location of the proposed moveable tiny house;
d. Prior to the issuance of building permits, a covenant agreement shall be recorded which
discloses the structure’s approved floor plan and status as a movable tiny home 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. The covenant agreement also may contain authorization for annual inspections
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 movable tiny home shall no longer be used as
overnight sleeping quarters.
SECTION 20. Section 17.92.020.F of the San Luis Obispo Municipal Code, entitled
“Limits on Reconstruction – Exceptions” is hereby amended as follows:
F. Exceptions to this Chapter may be granted by the Director, through a Director’s Action, to allow
additions to nonconforming structures occupied by conforming uses, subject to a finding of
consistency with the intent of this Chapter as follows:
1. Conforming additions to residential structures may be approved by the Directorwithout public
hearing.
2. The Director, through a Director’s Action, may allow certain setbacks to be reduced to zero in
some instances for minor additions to existing legal nonconforming structures (see Section
17.16.020(E)(2)(d)).
SECTION 21. Section 17.138.130 of the San Luis Obispo Municipal Code, entitled
“Eligibility Screening ” is hereby amended as follows:
The Housing Authority or other housing provider designated by the City shall screen prospective renters
or buyers of affordable units. Renters or buyers of affordable units shall enter into an agreement with
the City. Occupants must be selected by means of an open, public process which ensures that individuals
of a group of interested participants have equal probability of selection. Private selection of individuals
by project owners is not permitted except for any affordable units.
SECTION 22. Section 17.140.040.K of the San Luis Obispo Municipal Code, entitled
“Parking Requirements” is hereby amended to add a new subsection 2 as follows:
2. Housing developments occupied exclusively by extremely low, very low, or low-income
households, as defined by the State, may provide one car and one bicycle space per dwelling unit.
Existing subsections 2, 3 and 4 are hereby renumbered as 3, 4 and 4, respectfully.
SECTION 23. Section 17.140.070 of the San Luis Obispo Municipal Code, entitled
“Alternative or Additional Incentives” is hereby amended to add a new subsection D, amend
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and reformat current subsection D and E as E and F, respectively, as follows:
D. Proposals to construct a housing development that includes affordable units and includes a child
care facility that will be located on the premises of, as part of, or adjacent to the housing
development, it shall comply with Government Code Section 65915 (h)(1).
DE. Nothing in this Section shall be construed to require the Council Planning Commission
to approve any alternative incentive or concession. The Council Planning Commission shall
approve the requisite number of incentives or concessions afforded by this Section. However, the
details surrounding the incentives or concessions shall be at the discretion of the Council
Planning Commission.
EF. The Council Planning Commission action on any alternative incentive proposal shall be by
resolution. Any such resolution shall include findings relating to the information required in
subsection B or C of this Section.
SECTION 24. Section 17.158.014 of the San Luis Obispo Municipal Code, entitled “E
definitions” is hereby amended to add the following definitions:
EV Capable Space. A parking space constructed with empty raceway (i.e., pathway for future electrical
wiring, usually in enclosed walls or pavement) to supply power for future EV charging stations at any
given time.
EV Ready Space. A parking space constructed with full electrical circuits (e.g., junction box, conduit,
receptacle, overprotecting devices, wiring, etc.) that are ready for connection with an EV charg ing
station at any given time.
SECTION 25. Section 17.158.044 of the San Luis Obispo Municipal Code, entitled “T
definitions” under definition “Tiny House – Moveable” is hereby amended as follows:
Tiny House - Moveable. A residential dwelling unit that is accessory to a principal residential dwelling
unit located on the same parcel of land, which provides complete independent living quarters for one
household, and meets the following conditions:
1. Is towable by a bumper hitch, frame-towing hitch, or fifth-wheel connection and is designed not
to and cannot move under its own power;
2. Is no larger than allowed by California State law for movement on public highways;
3. Is a detached self-contained residential dwelling unit which includes permanent facilities and
functional areas for living, sleeping, eating, cooking, and sanitation.
SECTION 26. 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 valid ity 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
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Ordinance No. _____ (2018 Series) Page 11
O ______
SECTION 27. Implementation. 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 ___, 2018, AND FINALLY ADOPTED by the
Council of the City of San Luis Obispo on the ___ day of ___, 2018, on the following vote:
AYES:
NOES:
ABSENT:
____________________________________
Mayor Heidi Harmon
ATTEST:
____________________________________
Teresa Purrington
City Clerk
APPROVED AS TO FORM:
_____________________________________
J. Christine Dietrick
City Attorney
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City
of San Luis Obispo, California, this ______ day of ______________, _________.
______________________________
Teresa Purrington
City Clerk
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