HomeMy WebLinkAboutItem 6b. General Plan Amendment for Wastewater Collection System Capacity Constrained Map and Adoption of Lateral Rebate Programs Item 6b
Department: Utilities
Cost Center: 6002
For Agenda of: 12/2/2025
Placement: Business
Estimated Time: 45
FROM: Aaron Floyd, Public Works & Utilities Director
Prepared By: Chris Lehman, Deputy Director - Wastewater
SUBJECT: GENERAL PLAN AMENDMENT FOR WASTEWATER COLLECTION
SYSTEM CAPACITY CONSTRAINED MAP AND ADOPTION OF
LATERAL REBATE PROGRAMS
RECOMMENDATION
1. Adopt a Draft Resolution entitled, "A Resolution of the City Council of the City of
San Luis Obispo, California Approving Amendments to the Water and Wastewater
Element of the General Plan (GENP-0762-2025)"; and
2. Adopt a Draft Resolution entitled, "A Resolution of the City Council of the City of
San Luis Obispo, California, Amending the Private Sewer Lateral Replacement
Rebate Program and Establishing a Private Sewer Lateral Inspection Rebate
Program"; and
3. Find the actions exempt from the California Environmental Quality Act.
REPORT-IN-BRIEF
As directed by Council, this report carries forward analysis and updated staff
recommendations from the August 19, 2025, City Council Study Session discussion (Item
8a), which provided an update on the 2025 Wastewater Collection System Infrastructure
Renewal Strategy (Renewal Strategy) project. This project produced a long-range plan
that includes updated evaluations of the City's publicly owned wastewater collection
system. The study session also presented updates on the City's Private Sewer Lateral
Programs and potential recommended changes. Three recommendations from the study
session have been brought forward in this item to be considered for adoption via
resolutions: 1) an update to the Water and Wastewater Element of the General Plan,
including an updated wastewater collection system capacity-constrained map, and, 2)
expanded rebate eligibility to the existing Priva te Sewer Lateral Replacement Rebate
Program, and 3) adoption of a new rebate for Private Sewer Lateral Inspections, and
creation of a Private Sewer Lateral Rebate Inspection Program.
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Item 6b
POLICY CONTEXT
The primary goal of the Water and Wastewater Element Capacity-Constrained Areas Map
in the City's General Plan and the City's Private Sewer Lateral Rebate Program remains
the reduction and management of inflow and infiltration (I&I) from private sewer laterals,
thereby reducing the potential for sewer spills, while also accommodating housing
development and advancing the City's Major Goal of Housing and Neighborhood
Livability—Healthy, Safe, and Affordable. I&I is groundwater that enters the wastewater
collection system through damaged pipes and illicit connections.
The State Water Resources Control Board (SWRCB) adopted statewide General Waste
Discharge Requirements (GWDR) for publicly owned sanitary sewer systems on June 5,
2023. The updated GWDR requires the development and implementation of a sy stem-
specific local sewer system management plan that documents a comprehensive program
for sewer system operation, maintenance, repair, and reporting of all sanitary sewer
overflows in the California Integrated Water Quality System (CIWQS) reporting datab ase.
The City is required to comply with these statewide requirements, which include adopting
a Sewer System Management Plan (SSMP). The City Council approved the (current)
SSMP on March 4, 2025. Section eight of the SSMP describes the City's approach to
system evaluation and capacity assurance, which is determined through system flow
modeling and forecasting.
Recently, the City updated the current and future capacities of its wastewater collection
system through the 2025 Renewal Strategy project, which was completed in July 2025.
The report for this long-range plan was finalized and published on the City's website in
September 2025, including an updated map of capacity-constrained areas. This map is
presented as Figure 2, and in Attachment B (Exhibit A) of this report, for consideration in
addition to other minor updates to the Water and Wastewater Element of the City 's
General Plan, which include updated long-range plan references and reflect completion
of the Water Resource Recovery Facility (WRRF) project.
DISCUSSION
Background
General Plan Amendment
The Water and Wastewater Element (WWE) of the City's General Plan states:
"The City decided to adopt an element addressing water resources and
wastewater services because of the vital role of these resources and the f ar-
reaching impacts of water policies on community growth and character. This
element translates the Land Use Element's capacity for development into potential
demand for water supply and wastewater services. This element outlines how the
City plans to provide adequate water and wastewater services for its citizens,
consistent with the goals and policies of other General Plan elements."
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Item 6b
Because the General Plan provides the framework and long-range plan for the City based
on the capacity of urban services, including wastewater collection, the WWE includes the
map depicting wastewater collection system capacity-constrained areas in the city (Figure
1), which was incorporated into the WWE in May 2018 .
Figure 1: 2018 WWE Capacity Constrained Areas Map
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Item 6b
As part of the study session held during the August 19, 2025, City Council meeting
(identified as Study Session Item #2 presented in the August 19, 2025 staff report), staff
recommended updating the wastewater collection system capacity-constrained areas
map based on the outcomes of the 2025 Renewal Strategy. The 2025 Renewal Strategy
builds on a prior 2015 report. It is the most current and complete forecast of the city's
ability to accommodate housing growth and the conditions identified in the 20 35 General
Plan. The proposed new map removes some areas identified in the 2015 report and adds
one new area.
The changes to the capacity-constrained areas identified in the 2025 Renewal Strategy
are shown in Figure 2 and include the removal of the Laguna Lake and Downtown
capacity-constrained areas, and the addition of new capacity-constrained Areas 2 and 3.
Figure 2: 2025 Capacity Constrained Area Map and Comparison with 2018 Capacity
Constrained Areas
Area 1 retains much of the original boundaries and includes minor revisions to reflect the
system's current operating conditions. Updated conditions include consideration of the
buildout and future flow conditions of the California Polytechnic State University, including
development of the University's Water Reclamation Facility (i.e., wastewater treatment
plant), which is anticipated to be commissioned sometime in 2026 and will initially reduce
flows to the City's sewer system (but later increase with campus buildout).
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Item 6b
Area 2 is not recommended for inclusion in the WWE Capacity-Constrained Area Map
because it is small enough to be addressed through City capital improvement projects
that are currently funded in the adopted 25-27 Financial Plan. This is the most efficient
way to address current and forecasted capacity constraints in this area, without placing
an additional burden on property owners and developers. At the Council Study session,
the City Council supported this recommendation.
Area 3 is a new area that represents a significant shift of the Downtown capacity-
constrained area. This northern shift reflects the system's current operating conditions.
The conditions and capacities of the city's wastewater collection system change over time
due to dynamic factors. Collectively, reasons for the removal of the Downtown capacity -
constrained area and the development of a new capacity-constrained area further north
include 1) significant replacement of public and private infrastructure in the formerly
capacity-constrained downtown area, 2) aging private and public infrastructure in the
northern area, as it has been ten years since the last assessment, 3) ground se ttlement
and impacts from drought, such as increased root intrusion into legacy materials such as
vitrified clay pipe, and 4) significant differences in the severity of weather monitored
between the two flow studies (2012 vs 2023-24).
At the August study session, staff recommended the following changes to the capacity-
constrained area map in the WWE: 1) removing the Laguna Lake and Downtown
capacity-constrained areas and 2) including Proposed Areas 1 and 3. While ongoing
issues persist in the previously identified capacity-constrained areas recommended for
removal, sufficient public and private improvements and risk management systems have
been implemented to accommodate the 2035 General Plan 's forecasted growth in these
areas while controlling sewer spills.
On August 19, 2025, the City Council directed staff to proceed to the Planning
Commission to evaluate the proposed General Plan amendments. On October 22, 2025,
staff presented the proposed WWE Amendments and General Plan consistency analysis
to the Planning Commission.
In addition to the recommended change replacing the capacity-constrained areas map
with the updated version presented to Council as part of the August 19 th study session,
staff also recommend minor text updates to the WWE to update the Wastewater Service
section. These minor text amendments 1) reflect the results of the 2025 Renewal Strategy
and associated 2024 flow and modeling study, and 2) provide an updated su mmary of
the Water Resource Recovery Facility (WRRF) upgrade, which was completed in October
2025 and increased average daily dry weather capacity from 5.1 to 5.4 million gallons per
day. An excerpt of the majority of the proposed amendments and updated ca pacity-
constrained area map (WWE Figure 3) is shown below in Figure 3 (refer to Attachment
B, Exhibit A, which includes the Legislative Draft of the WWE Amendment). No changes
to policy or program language are proposed.
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Item 6b
Figure 3: Excerpt of Proposed WWE Amendments
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Item 6b
Figure 4: Proposed General Plan Capacity Constrained Areas Map
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Item 6b
On October 22, 2025, the City Planning Commission adopted Resolution No. PC-1112-
2025 recommending the City Council adopt amendments to the Water and Wastewater
Element of the General Plan (GENP-762-2025). The Planning Commission did not
recommend any modifications to staff's recommended legislative draft of the WWE
Amendment.
Staff recommend that the City Council adopt the proposed amendments to the WWE,
inclusive of recommended minor text updates and replacement of current WWE Figure 3
Wastewater Collection System Capacity Constrained Areas with proposed WWE Figure
3 Wastewater Collection System Peak Wet Weather Capacity Constrained Areas Due to
Inflow and Infiltration (Attachment B).
New Private Sewer Lateral Inspection Rebate
Study Session Item #3, presented in the August 19, 2025, Staff Report proposed
considering the establishment of a new Private Sewer Later Inspection Rebate .
Inspections are required for certain conditions, including tenant improvements, property
sales (before escrow close), and enforcement following events such as a sewer spill.
As one of the remaining limitations to further
progress in reducing sewer capacity issues is the
condition assessment of private sewer laterals, staff
recommend establishing a new $350 rebate for
Private Sewer Lateral Inspections. This
recommendation stems from numerous requests
from public stakeholders to develop a funding
source to enhance the quality and quantity of the
City's existing dataset of private sewer lateral
conditions, which is publicly available at
www.slocity.org/laterals. Currently, approximately
62 percent of private sewer laterals in the newly
proposed capacity-constrained areas of the
wastewater collection system are in "unknown"
condition. That is, the City does not have a recent
record of the condition of these private laterals.
Incentivizing private property owners to complete
condition assessments of these sewer laterals will
increase awareness of private infrastructure
conditions, which is expected to lead to more
replacements. Additionally, this will improve the
City's database of private sewer lateral conditions,
which is utilized for Wastewater Flow offset "match-making" – a requirement to offset the
impacts of intensified development in capacity-constrained areas of the wastewater
collection system. Property owners completing a tenant improvement that increases
water fixture counts or developers seeking to add additional housing in these areas must
locate and replace faulty laterals to offset the impact of additional wastewater generation.
Figure 5: Private Sewer Lateral
with Root Intrusion
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Item 6b
Additional data obtained through increased private sewer lateral inspections will help
locate these "offsets" as laterals in "unknown" condition are characterized.
The proposed Private Sewer Lateral CCTV Inspection Rebate of $350 is substantial
enough to cover most or all inspection costs for lateral inspections in the City. The Private
Sewer Lateral Inspection Rebate is recommended to be available to any property located
within the Capacity-Constrained Areas (Figure 4) for which the City's database indicates
an "unknown" condition. This would include all residential (single and multi-family) as well
as all commercial properties in these areas. Due to the unknown funding impacts resulting
from a forecasted increase in private sewer lateral replacement rebates, staff are no t
recommending retroactive rebates, and only one rebate per parcel will be issued . The
rebate amount would not exceed the cost of the inspection. If the price of an inspection
is less than $350, the maximum rebate amount awarded would be 100% of the inspection
cost.
Staff are not recommending the mandatory replacement of private sewer laterals
determined to be faulty through this voluntary inspection program , or through the
Inspection Upon Sale Program (inspection requirement before close of escrow).
However, staff are optimistic that these laterals will be replaced voluntarily or by others
through a condition of the Wastewater Flow Offset Program. The Wastewater Flow Offset
Program requires projects that include intensified development in capacity-constrained
areas to "offset" the increased wastewater flow by replacing other faulty laterals in the
same area. Property owners would be incentivized to complete a condition assessment
of their (unknown condition) sewer lateral in order to qualify for a potentia l offset-driven
replacement. Voluntary replacement would also be encouraged through the Private
Sewer Lateral Replacement Rebate Program discussed next, which would be offered to
all properties qualifying for this inspection rebate (Attachment C).
Lateral Inspection Trigger Replacement
Mandatory?1 Qualified for Rebate?
Inspection Upon Sale No Yes, in capacity-constrained areas
Voluntary Inspection No Yes, in capacity-constrained areas
Intensified Development Yes Yes, in capacity-constrained areas
Enforcement Yes Yes, in capacity-constrained areas2
Table 1: Private Sewer Lateral Inspection Triggers for Lateral Replacement
1 If found to be defective as defined by SLOCMC 13.08.395.
2 Rebates associated with enforcement may be awarded or denied at the discretion of the Public Works &
Utilities Director.
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Item 6b
Expanded Sewer Lateral Replacement Rebate Eligibility
Study Session Item #4, presented in the August 19, 2025, Staff Report, proposed
consideration of expanding rebate eligibility in the newly identified capacity-constrained
areas, while retaining existing eligibility in the current program for all single-family
residences City-wide. Staff were initially unsure of program participation and funding
requirements when the rebate program was first created in August 2019. Since that time,
Council has approved increased funding for the program, allowing staff to expand
participation. To accelerate improvement in capacity-constrained areas (Figure 4), staff
recommend expanding eligible property types beyond single -family residences to include
multi-family residences and commercial properties. Staff recommend that all other terms
of the rebate program remain the same, including the maximum rebate amount of $4,000
and availability in capacity-constrained areas only. The draft Resolution provided in
Attachment C incorporates the proposed revised Sewer Lateral Replacement Rebate
Program.
At the August 19th study session, Council requested that staff consider and evaluate a
potential tiered rebate amount based on land use type. There is a wide range of potential
project costs associated with replacing a private sewer lateral. Replacing the private
sewer laterals of a multi-unit residential structure could be more expensive than replacing
those tied to a single-family home. There are, however, instances where replacement of
a private sewer lateral serving a single-family residence would cost more than a private
sewer lateral serving a multi-family residential development due to the length of pipe and
local conditions. Determining an appropriate and fair amount that reasonably considers
all potential scenarios is challenging due to the wide variety of property configurations
and private sewer lateral size, age, and material type. At this time, staff have not identified
a multi-tiered rebate structure that could be administered in a reasonable and fair manner,
and recommend the maximum $4,000 rebate for all residential and commercial
developments. Table 2, below, illustrates what property types currently qualify for a
private sewer lateral replacement rebate, and what property types will be eligible under
the expanded rebate eligibility criteria.
Property Type Lateral Replacement Rebate? New/Existing
Single Family Residence Yes, city-wide Existing
Multi-Family Residence Yes, in capacity-constrained areas New
Commercial Property Yes, in capacity-constrained areas New
Table 2: Private Sewer Lateral Replacement Rebates
Previous Council or Advisory Body Action
The City Council approved an update to the Water and Wastewater Element of the
General Plan in May of 2018 via Resolution No. 10893 (2018 Series), which included the
identification of capacity-constrained (sewer conveyance) areas.
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Item 6b
On September 3, 2024, City Council approved an increased rebate amount for single-
family residential private sewer lateral replacements to $4,000 (Resolution No. 11517).
This resolution included updated administrative requirements for rebate processing and
considered the increased costs of construction associated with replacements related to
inflation and other market conditions.
On August 19, 2025, staff held a study session with the City Council, which, among other
discussion items, provided a draft updated capacity-constrained boundary map and
updates on the city's private sewer lateral programs. Council directed staff to proceed to
the Planning Commission for consideration of a Water and Wastewater Element
Amendment, including the updated capacity-constrained boundaries map. Council also
directed staff to evaluate further the potential expansion of the existing private sewer
lateral replacement rebate program and the creation of a new private sewer lateral
inspection rebate.
On October 22, 2025, the Planning Commission adopted Resolution No. PC-1112-2025
recommending the City Council adopt amendments to the Water and Wastewater
Element of the General Plan (GENP-762-2025) and find the action categorically exempt
from the California Environmental Quality Act. The Planning Commission did not
recommend any modifications to staff's recommended legislative draft of the WWE
Amendment.
Public Engagement
Utilities Department staff have and continue to conduct outreach to realtors, developers,
plumbers, and property owners. Specific outreach events include presentations at the
Developer's Roundtable (July 1, 2025, and November 13, 2025), to the SLO Coastal
Association of Realtors (August 13, 2025), and to the Chamber of Commerce Legislation
Committee (August 14, 2025). Additional public engagement has been achieved through
the receipt and analysis of public comments at various City Council meetings, including
those received during the August 19, 2025, City Council meeting. The proposed Water
and Wastewater Element Amendment was provided to local tribal representatives as
required by Senate Bill 18, and no comments were received. If adopted, staff plan to
conduct additional targeted outreach to all properties in capacity-constrained areas
identified in Figure 4 to maximize participation.
CONCURRENCE
The Community Development Department concurs with the proposed General Plan
amendment. The City Attorney's Office has reviewed the legislative draft amendment and
has approved to form. The City Attorney's Office has evaluated and approves to form the
legal basis and findings for offering expanded rebates to private property owners .
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Item 6b
ENVIRONMENTAL REVIEW
The proposed General Plan Amendment and rebate programs are exempt from the
California Environmental Quality Act pursuant to CEQA Guidelines Sections 15307
(Actions by Regulatory Agencies for Protection of Natural Resources) and 15308 (Actions
by Regulatory Agencies for the Protection of the Environment) because the intent of the
capacity-constrained area map is to identify these areas in the City's general plan such
that land use planning can occur with these capacity limitations in mind. In addition, the
updated map and policies provide a basis in the General Plan for programs that reduce
I&I and the potential for sewer system overflows. Implementation of programs, including
the proposed rebate program expansions, that address these capacity-related issues
would have a beneficial impact on the environment by better informing the City's
evaluation of capacity-constrained areas and reducing the potential for I&I and overflows
due to reduced flows from groundwater and stormwater.
FISCAL IMPACT
Staff are proposing to fund expanded eligibility for the Private Sewer Lateral Replacement
Program and a new Private Sewer Lateral Inspection Rebate through existing funding
appropriated for project number 2001024 (Sewer Inflow and Infiltration Reduction) for
Fiscal Years 2025-2026 ($420,000) and 2026-2027 ($420,000). If rebate applications are
received after funding for the programs has been depleted, the application will be placed
on a waiting list and receive first priority at the start of the next fiscal year (July 1).
The financial impacts of this expanded eligibility and new rebate are not certain. During
the development of the 2027-29 Financial Plan, or before then if prudent, staff will
evaluate the effectiveness of the new rebate program and analyze competing demands
associated with private sewer lateral replacement rebates before determining whether to
recommend to Council that the Private Sewer Lateral Inspection Rebate be continued
and corresponding funding adjustments be made.
All metrics displayed in Table 3 below provide a track record of rebates issued since 2019,
when the current replacement rebate program was established. The total amount
dispersed includes $19,000 of retroactive rebate payments made following the Council's
adoption of Resolution No. 11517 on September 3, 2024. Resolution No. 11517 also
increased rebates from $2,000 (outside of capacity-constrained areas) and $3,000 (inside
capacity-constrained areas) to $4,000 for all single-family property private sewer lateral
replacements. Upon adoption of staff’s recommendations in this report, the rebate
program would expand to include single-family properties city-wide, and all properties
located within capacity-constrained areas (see Table 2).
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Item 6b
Calendar Year Rebates Issued Amount Dispersed
2019 76 $122,000
2020 97 $229,875
2021 71 $190,900
2022 76 $190,000
2023 39 $99,000
2024 29 $85,000
2025 62 $267,000
Total 450 $1,183,775
Table 3: Private Sewer Lateral Replacements
Budgeted: Yes Budget Year: 2025-27
Funding Identified: Yes
Fiscal Analysis:
Funding
Sources
Total
Budget
Available
Current
Funding
Request
Remaining
Balance
Annual Ongoing
Cost
Sewer Fund
(2001024)
$266,085 $0 $266,085 $0
Total $266,085 $0 $266,085 $0
As of November 24, 2025, the available balance in 2001024 – Sewer Inflow and Infiltration
Reduction is $266,085. No additional funding is requested for Fiscal Year 2025-26. There
will be an ongoing fiscal impact to fund expanded eligibility for the Private Sewer Lateral
Replacement Program, but this impact is not yet quantifiable. If authorized, staff will fund
all changes from Council-approved allocations for 2001024 – Sewer Inflow and Infiltration
Reduction as part of the 2025-27 Financial Plan ($420,000 per fiscal year). At the next
financial plan (or earlier as prudent), staff will evaluate the effectiveness of these revisions
and provide funding recommendations accordingly.
ALTERNATIVES
1. Council may direct staff not to amend the General Plan capacity-constrained
boundaries map. The impacts of this alternative include requiring private sewer
lateral replacements in areas that have not been identified as capacity-constrained
by the 2025 Renewal Strategy. By not updating the capacity-constrained
boundaries map, staff would be administering a program informed by data from 10
years prior, which does not account for current conditions as outlined in the 2025
Renewal Strategy.
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Item 6b
2. Council may direct staff not to proceed with expanding eligibility criteria for
Private Sewer Lateral Replacement Rebates. The impacts of this alternative
may include reduced private sewer lateral replacements. Further, by limiting
eligibility to single-family home projects and excluding multi-family or commercial
properties, as the current program requires, staff believe there would be ongoing
equity concerns and limitations in addressing private infrastructure repairs in the
most critical locations (capacity-constrained areas). Limiting current eligibility to
only single-family homes would slow progress and improvement in these areas.
3. Council may direct staff not to proceed with the adoption of a new Private
Sewer Lateral Inspection Rebate. The impacts of this alternative would likely be
reduced data provided to the City, which would help developers and property
owners locate private sewer laterals to be replaced through offset requirements
and voluntary proactive replacements.
4. Council may direct staff to make changes to either rebate program. The
impacts of this alternative would be dependent on the changes that Council directs
staff to make.
ATTACHMENTS
A - Draft Resolution Approving Amendments to the Water and Wastewater Element
of the General Plan (GENP-0762-2025)
B - (Exhibit A) WWE Legislative Draft
C - Draft Resolution amending the Private Sewer Lateral Rebate Program and
Establishing a Private Sewer Lateral Inspection Rebate Program
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R ______
RESOLUTION NO. _____ (2025 SERIES)
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS
OBISPO, CALIFORNIA, ADOPTING AMENDMENTS TO THE WATER
AND WASTEWATER ELEMENT OF THE GENERAL PLAN (GENP-0762-
2025)
WHEREAS, Government Code Section 65300 mandates all cities and counties to
adopt a comprehensive, long-term general plan to guide their physical development; and
WHEREAS, the Water and Wastewater Element of the City of San Luis Obis po
General Plan was last updated in 2020 in compliance with State law; and
WHEREAS, General Plan Water and Wastewater Element Policies state that the
City’s wastewater collection system shall support population and related service demands
consistent with the General Plan (Policy B 2.2.2), and the City shall collect and convey all
wastewater under safe and sanitary conditions to the Water Resource Recovery Facility
(Goad B 4.1), and maintain, and revise as necessary, master plans for the extension of
wastewater services to developing areas of the City and to ensure orderly replacement
of aged infrastructure (Program B 4.3.5); and
WHEREAS, the City of San Luis Obispo has prepared amendments to the General
Plan Water and Wastewater Element to incorporate current information including an
updated wastewater collections system capacity-constrained area map and associated
references to current wastewater flow and infrastructure studies (2025 Wastewater
Collections Infrastructure Renewal Strategy), and minor text edits to provide currently
available information regarding the wastewater collections system and Water Resource
Recovery Facility (Exhibit A); and
WHEREAS, the Planning Commission, at the hearing of October 22, 2025,
considered the proposed amendments to the General Plan Water and Wastewater
Element, found the proposed amendments consistent with the General Plan, and
recommended the City Council approve amendments to the General Plan Water and
Wastewater Element and proposed categorical exemptions to the California
Environmental Quality Act; and
WHEREAS, the City Council, at the hearing of December 2, 2025, considered
amendments to the General Plan Water and Wastewater Element and proposed
categorical exemptions to the California Environmental Quality Act.
NOW, THEREFORE, BE IT RESOLVED by the Council of the City of San Luis
Obispo as follows:
SECTION 1. Findings. The City Council, after considering the proposed
amendments to the Water and Wastewater Element, staff presentation and
recommendation, public testimony and correspondence, and reports thereon, and the
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Resolution No. _____ (2025 Series) Page 2
R ______
Planning Commission’s recommendation to find the amendments consistent with the
General Plan and find the action categorically exempt from the California Environmental
Quality Act, make the following findings:
a) The proposed amendments to the Water and Wastewater Element are
consistent with the General Plan.
b) The amendments to the Water and Wastewater Element are exempt from the
California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines
Sections 15307 (Actions by Regulatory Agencies for Protection of Natural
Resources) and 15308 (Actions by Regulatory Agencies for the Protection of
the Environment) because the intent of the capacity-constrained area map is
to identify these areas in the City’s general plan such that land use planning
can occur with these capacity limitations in mind. In addition, the updated map
and policies to remain provide a basis in the General Plan for programs that
reduce I&I and the potential for SSOs. Implementation of programs that
address these capacity-related issues would have a beneficial impact on the
environment by reducing the potential for I&I and overflows due to reduced
flows from groundwater and stormwater.
SECTION 2. City Council Action. The City Council, after considering the proposed
amendments to the Water and Wastewater Element, staff presentation and
recommendation, public testimony and correspondence, and reports thereon, and the
Planning Commission’s recommendation, approve adoption of the General Plan Water
and Wastewater Element (Exhibit A).
Upon motion of Council Member ___________, seconded by Cou ncil Member
___________, and on the following roll call vote:
AYES:
NOES:
ABSENT:
The foregoing resolution was adopted this _____ day of _______________ 20 25.
___________________________
Mayor Erica A. Stewart
ATTEST:
______________________
Teresa Purrington
City Clerk
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Resolution No. _____ (2025 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, on ______________________.
___________________________
Teresa Purrington
City Clerk
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EXHIBIT A – WATER AND WASTEWATER ELEMENT PROPOSED AMENDMENTS
LEGISLATIVE DRAFT
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Page 8-25
Water and Wastewater Element
WASTEWATER SERVICE
B 2.0 Background
The City is the sole provider of wastewater service within the City. The service provides collection and treatment
for residential, commercial, and industrial users on properties within the city limits. In 20182025, the number of
service connections is estimated to be 12,00013,421. Through agreement, the City also provides service to the
San Luis Obispo campus of California Polytechnic State University (Cal Poly) and the County of San Luis Obispo
Airport.
The collection system is primarily a gravity flow system. Where gravity flow is not feasible due to the topography,
wastewater lift stations and pressurized force mains are used to move wastewater to the City’s Water Resource
Recovery Facility on Prado Road. Sewer pipelines measure from six inches to 48 inches in diameter.
The City completed a two-year Flow Monitoring and Inflow/Infiltration Study in 2012. Using data from this
Study, pipeline condition data from its asset management database, and growth assumption from the General
Plan’s Land Use (2014) and Housing (2015) elements, the City completed hydraulic modeling and its
Wastewater Collection System Infrastructure Renewal Strategy in 2016. The Renewal Strategy identified a
prioritized list of capital projects to address the City’s aging infrastructure. The Renewal Strategy also
identified capacity constrained areas during wet weather events due to inflow and infiltration, shown in Figure
3. Inflow and infiltration is discussed further in section B.4.0.
The City completed an updated Wastewater Collection System Infrastructure Renewal Strategy (WWCIRS) in
July 2025. Development of the 2025 WWCIRS included the collection of wastewater flow data, the completion
of a system-wide capacity modeling study in 2024, the incorporation of growth estimates based on build-out
of the City’s General Plan and underlying zoning for each parcel, including assumptions for accessory dwelling
units and developments that include a density bonus, and the completion of an updated wastewater flow
model. Based on the results of the analysis, recommendations for capital improvement sewer projects are
included in the 2025 WWCIRS. The WWCIRS also identified updated capacity-constrained areas during wet
weather events due to inflow and infiltration. The updated capacity-constrained area map is included in this
Element as Figure 3. Inflow and infiltration, and is discussed further in section B.4.0.
Following completion of a major upgrade in 2025 to increase capacity to serve the City’s build-out population
outlined in the Land Use Element, Tthe Water Resource Recovery Facility (WRRF) is designed for an average dry-
weather flow of 5.1 5.4 million gallons per day (mgd). Instantaneous peak flows exceeding 20 mgd are not
uncommon during storm events due to infiltration and inflow into the wastewater collection system, discussed
further in subsection B 4.0. As the City grows to its build-out population outlined in the Land Use Element, the
average dry-weather flow of wastewater is expected to reach 5.4 mgd. In 2018, design for the expansion of the
Water Resource Recovery Facility to accommodate General Plan buildout is underway. When the WRRF is
expanded in the future it will have a treatment capacity of 5.4 mgd.
B 2.1 Goal
Adequate wastewater collection and treatment service to meet the long-term needs of the City.
Page 695 of 764
Chapter 8
Page 8-26
B 2.2 Policies
B 2.2.1 Service Outside the City Limits
To receive City wastewater service, property must be annexed to the City. The City Council may authorize
exceptions to this policy provided it is found to be consistent with the General Plan.
B 2.2.2 Service Capacity
The City's wastewater collection system and Water Resource Recovery Facility shall support
population and related service demands consistent with the General Plan.
B 2.2.3 Wastewater Service for New Development
New development shall pay its proportionate or “fair share” of expanded treatment and collection
system capacity and upgrades. New development will only be permitted if adequate capacity is available
within the wastewater collection system and/or Water Resource Recovery Facility.
B 2.2.4 City as Exclusive Provider
The City will be the only provider of public wastewater treatment within the City (but on-site
pretreatment of wastewater to meet City Standards may be required).
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Page 8-27
Water and Wastewater Element
Figure 3 Capacity Constrained Areas [delete and replace]
Page 697 of 764
Chapter 8
Page 8-28
Figure 3 Capacity Constrained Areas
B 2.3 Programs
B 2.3.1 Expand capacity in the City’s collection system and Water Resource Recovery Facility in support of
projected wastewater flows.
B 2.3.2 Evaluate the potential for the wastewater flows of a proposed project to exceed the capacity of
collection and treatment systems.
B 2.3.3 The City will conduct periodic updates to its wastewater development impact fees.
Page 698 of 764
Page 8-29
Water and Wastewater Element
WASTEWATER TREATMENT
B 3.0 Background
The Water Resource Recovery Facility processes wastewater in accordance with standards set by the State's
Regional Water Quality Control Board (RWQCB). The RWQCB issues a permit to the City under the National
Pollutant Discharge Elimination System (NPDES), setting standards for the discharge of treated wastewater. The
standards are to protect beneficial uses of the receiving water (San Luis Obispo Creek), including recreation,
agricultural supply, and fish and wildlife habitat.
The Water Resource Recovery Facility removes solids, reduces the amount of nutrients, and eliminates bacteria in
the treated wastewater, which is then discharged into San Luis Obispo Creek. Solids are separated and treated to
create biosolids. Biosolids are beneficially reused as compost and/or soil amendment. As described in Section A
7.0, the Water Resource Recovery Facility has been producing tertiary-treated recycled water for delivery to
water customers in the City since 2006.
The design phase for theA comprehensive upgrade of the Water Resource Recovery Facility is underway with
completion of construction anticipated in 2022was completed in 2025. The upgrade increased average daily dry
weather capacity at the facility to 5.4 mgd, and included, but was not limited to, expansion of an equalization basin
that provides additional flood protection measures and operational flexibility, and construction of a new membrane
and ultra-violet disinfection (MBR-UV) facility. The upgrade will also enable the City to consider potable reuse, part
of a One Water concept, in the future.
B 3.1 Goals
B 3.1.1 Wastewater treatment that meets or exceeds regulatory requirements and ensures the protection of public
health and the environment.
B 3.1.2 Maximize recycled water production.
B 3.2 Policies
B 3.2.1 Treating Wastewater
The City will treat all wastewater in compliance with approved discharge permits.
B 3.2.2 Recycled Water Production
The City will produce high-quality, dependable recycled water, suitable for a wide range of uses.
B 3.2.3 Beneficial Use
The City will pursue treatment and disposal methods which provide for further beneficial use of wastewater
and biosolids.
B 3.3 Programs
B 3.3.1 Prepare and implement Water Resource Recovery Facility master plan consistent with regulatory
requirements.
B 3.3.2 Work cooperatively on regional water quality issues.
Page 699 of 764
Chapter 8
Page 8-30
COLLECTION SYSTEM
B 4.0 Background
The first sanitary sewers were built in San Luis Obispo in the late 1800s. Today, portions of the collection system
are over 100 years old. It includes nine lift stations, approximately 1385 miles of gravity sewer line, and three
miles of force main. Approximately 2,9003,184 manholes provide access to the collection system. The sewer
lines are made of a variety of materials, including ductile iron pipe, terra cotta salt-glazed pipe, vitrified clay pipe
(VCP), polyvinyl chloride (PVC), high-density polyethylene (HDPE) and asbestos concrete.
The City’s wastewater collection system requires maintenance to ensure uninterrupted flows and minimize
sanitary sewer overflows. Area and preventive maintenance programs are regularly evaluated to ensure their
effectiveness. The City also utilizes video inspection to prioritize problem areas for replacement, maintenance,
assess overall mainline conditions, conduct inflow and infiltration evaluations, and assess new construction.
The City issues discharge permits to and conducts inspections of facilities that have the potential to discharge
pollutants in concentrations that could pose a threat to worker safety, the wastewater collection system, and/or
the Water Resource Recovery Facility. Through its Pretreatment Program, the City also implements programs to
target constituents of special concern.
Like most cities in California, San Luis Obispo has separate sewer and storm drain systems. This means each
system of pipes in the ground is designed to accommodate either sewer or stormwater flows. One set of pipes
takes sanitary waste to the Water Resource Recovery Facility while a second set carries stormwater runoff from
street drains directly into bioswales, detention basins, or creeks.
The City’s wastewater collection system and the Water Resource Recovery Facility have long experienced
problems associated with wet weather infiltration and inflow (I & I). Inflow is water that enters the collection
system at points of direct connection (non-soil) such as around manhole covers or through illegal connection of
roof drains, downspouts, or landscape drains. Infiltration is water that flows through the ground into the
collection system usually through cracks in public sewer mains and/or private sewer laterals (See Figure 4). I & I
overloads the collection system during heavy rains and can result in sanitary sewer overflows. During periods of
significant rain events, the Water Resource Recovery Facility can become hydraulically overwhelmed (as
mentioned previously, instantaneous peak flows exceeding 20 mgd are not uncommon during storm events),
increasing the chance of effluent violations and the release of partially treated wastewater to San Luis Obispo
Creek. Table 6 includes data on the highest average daily flows experienced at the Water Resource Recovery
Facility during rain events over a nine-19-year period.
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Page 8-31
Water and Wastewater Element
Table 6. Highest Average Daily Flows to the Water Resource Recovery Facility, 2006 to
20172024
Average Daily Flows 1 Year
19.75 mgd 2006 (April)
7.24 mgd 2007(December)
9.83 mgd 2008 (January)
11.67 mgd 2009 (October)
13.51 mgd 2010 (December)
13.23 mgd 2011 (March
7.10 mgd 2012 (January)
5.17 mgd 2013 (January)
5.12 mgd 2014 (March)
5.24 mgd 2015 (February)
5.63 mgd 2016 (March)
9.00 mgd 2017 (February)
10.626 2018 (March)
10.19 2019 (March)
6.86 2020 (March)
11.18 2021 (January)
6.92 2022 (December)
172 2023 (January)
9.26 2024 (April)
Notes:
1. Instantaneous peak flows are higher.
August dry weather flow to the Water Resource Recovery Facility was 1.91 mgd in 2016 and 2.80 mgd in 2017.
Source: City of San Luis Obispo Utilities Department, 2018.
2. At the time of measurement, during the WRRF upgrade project, maximum measurement limit was 17 mgd.
Actual flows exceeded this amount.
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Chapter 8
Page 8-32
Figure 4 Inflow and Infiltration Illustrated
B 4.1 Goal
Collect and convey all wastewater under safe and sanitary conditions to the Water Resource Recovery Facility.
B 4.2 Policies
B 4.2.1 Collection System Maintenance
The City will manage the collection system to ensure that the proper level of maintenance is provided and that the
flow in sanitary sewers does not exceed design capacity.
B 4.2.2 Infiltration and Inflow
The City will minimize stormwater and groundwater infiltration and inflow into the sewer system.
B 4.3 Programs
B 4.3.1 Investigate and carry out cost-effective methods for reducing infiltration and inflow into the wastewater
collection system.
B 4.3.2 Develop education and outreach materials to increase public awareness of problems associated with excessive
infiltration and inflow (I & I) into the wastewater collection system and the City’s efforts to reduce I & I.
B 4.3.3 Support the retrofit of commercial and residential sewer laterals to reduce infiltration and inflow into the
wastewater collection system.
B 4.3.4 Update the Sewer System Management Plan to maintain its applicability.
B 4.3.5 Maintain, and revise as necessary, master plans for the extension of wastewater services to developing areas of the
City and to ensure orderly replacement of aged infrastructure.
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Page 8-33
Water and Wastewater Element
B 4.3.6 Review development proposals to ensure new development does not adversely impact existing infrastructure and
that necessary infrastructure will be in place to support the development.
B 4.3.7 Provide a Pretreatment Program pursuant to the Clean Water Act to ensure that all discharge requirements are
met.
Page 703 of 764
Page 704 of 764
R ______
RESOLUTION NO. _____ (2025 SERIES)
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS
OBISPO, CALIFORNIA, AMENDING THE PRIVATE SEWER LATERAL
REPLACEMENT REBATE PROGRAM AND ESTABLISHING A PRIVATE
SEWER LATERAL INSPECTION REBATE PROGRAM
WHEREAS, the City must provide capacity assurance consistent with its
adopted Sewer System Management Plan and Statewide General Waste
Discharge Requirements; and
WHEREAS, the City completed a wastewater flow monitoring and inflow/
infiltration analysis in March 2024 that included sewer flow monitoring, rainfall
monitoring, and inflow and infiltration analysis; and
WHEREAS, the City approved and filed the Wastewater Collection System
Infrastructure Renewal Strategy on August 19, 2025, which identified areas with
capacity constraints and surcharging in the wastewater collection system during
peak wet weather events; and
WHEREAS, on December 2, 2025, the City amended its General Plan,
Water and Wastewater Management Element by incorporating an updated map of
wastewater collection system areas with capacity constraints during peak wet
weather events; and
WHEREAS, the City has experienced sewer overflows, which have been
identified as a threat to public health and water quality because of the pathogens,
pollutants, and nutrients they contain, which have been a focus of State Water
Quality Regulators over the past several years; and
WHEREAS, the City owns, operates, and maintains a sewer conveyance
system with over 145 miles of pipeline and provides wastewater collection services
to properties within the City limits, as well as to Cal Poly and the San Luis Obispo
County Airport; and
WHEREAS, a system of approximately 13,421 private sewer laterals,
estimated to equal an additional 165 miles of pipeline, is owned and maintained by
property owners; and
WHEREAS, private sewer laterals contribute significant inflow and
infiltration, contributing to capacity constraints, surcharging, and overflows in the
wastewater collection system during peak wet weather events; and
WHEREAS, the City would like to encourage the timely inspection and
replacement of private sewer laterals to decrease inflow and infiltration and to
improve capacity constraints, surcharging, and overflows in the wastewater
Page 705 of 764
Resolution No. _____ (2025 Series) Page 2
R ______
collection system during peak wet weather events; and
WHEREAS, the City's Private Sewer Lateral Replacement Rebate Program
was created on August 19, 2019, to accelerate the replacement of aging private
infrastructure that impacts public infrastructure; and
WHEREAS, the amendment of the Private Sewer Lateral Replacement
Rebate Program will provide funding assistance to additional property owners for
their private sewer lateral replacement; and
WHEREAS, the establishment of the Private Sewer Lateral Inspection
Rebate Program will provide funding assistance to property owners for their private
sewer lateral inspection to accelerate replacement of aging private infrastructure
that impacts public infrastructure; and
WHEREAS, funding for the Private Sewer Lateral Inspection and
Replacement Rebate Programs is identified in the City's Capital Improvement
Program and provided by the City's Sewer Fund.
NOW, THEREFORE, BE IT RESOLVED by the Council of the City of San
Luis Obispo as follows:
SECTION 1. The City Council hereby amends the Private Sewer Lateral
Replacement Rebate Program using funding from the Sewer Fund and authorizes
the Utilities Director to implement the program as follows:
a) The sewer lateral replacement must be permitted through the City of San
Luis Obispo Community Development Department.
b) The Private Sewer Lateral Replacement Rebate Program only applies to
those sewer laterals that are replaced in their entirety from the structure
up to and including connection with the City main; spot repairs and partial
repairs are not included in this program.
c) Verification of installation, inspection, and approval of completed work
by the City is required.
d) For property owners of single-family residences citywide, and property
owners of multi-family and commercial properties located within
capacity-constrained areas of the wastewater collection system, the
Private Sewer Lateral Replacement Rebate will be a maximum of
$4,000, which may not exceed the cost of the project. All rebates are
subject to available funding.
e) The property owner must submit a dated, detailed sales receipt for proof
of purchase with the Private Sewer Lateral Replacement Rebate
Application. The purchase of the private sewer lateral replacement must
be clearly itemized on an invoice. A copy of the property owner's W9
Page 706 of 764
Resolution No. _____ (2025 Series) Page 3
R ______
must be submitted with the application.
f) The Private Sewer Lateral Replacement Rebate may take six weeks or
more from the date the rebate application is filed.
g) Private Sewer Lateral Replacement Rebates will only be provided to the
property owner.
h) Only one Private Sewer Lateral Replacement Rebate will be provided
over the lifetime of the property.
i) The Private Sewer Lateral Replacement Rebate Program is only in effect
when funds are allocated for that purpose within a given budget year.
Sewer Lateral Replacement Rebates will be available on a first-come,
first-served basis from the date of application until the funds are
expended. If funding runs out during the fiscal year, an applicant may be
required to wait for a future year of rebate funding.
j) Private Sewer Lateral Replacement Rebates may not be available to
property owners to replace their private sewer lateral as part of a Notice
to Correct condition. This allowance will be applied at the discretion of the
Utilities Director based on previous enforcement compliance history.
I) As an incentive to replace private sewer laterals and reduce inflow and
infiltration, the collected city fee for sewer wye installations will be
refunded for all qualifying rebate applications.
SECTION 2. The City Council hereby establishes the Private Sewer Lateral
Inspection Rebate Program using funding from the Sewer Fund and authorizes the
Utilities Director to implement the program as follows:
a) The private sewer lateral inspection must be submitted in digital format
and in color (black and white or otherwise unclear video will not be
accepted).
b) The private sewer lateral inspection must show the address of the
lateral and the date the video was taken, with a running footage or time
marker clearly visible on the screen.
c) The private sewer lateral inspection must include footage and review of
the entire lateral from the building connection to the city-owned sewer
main.
d) Where joints are present, the inspection activity must briefly stop the
camera at each to clearly identify their integrity.
e) Verification and review of the inspection by the City is required to
process the Private Sewer Lateral Inspection Rebate.
f) For property owners located within capacity-constrained areas of the
wastewater collection system, the Private Sewer Lateral Inspection
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Resolution No. _____ (2025 Series) Page 4
R ______
Rebate will be a maximum of $350, which may not exceed the cost of
the project. If the inspection cost is less than $350, the maximum rebate
award shall be 100 percent of the inspection cost. All rebates are subject
to available funding.
g) The property owner must submit a dated, detailed sales receipt for proof
of the inspection activity with the Private Sewer Lateral Inspection Rebate
Application. The purchase of the private sewer lateral inspection must be
clearly itemized on an invoice. A copy of the property owner's W9 must
be submitted with the application.
h) The Private Sewer Lateral Inspection Rebate may take six weeks or
more from the date the rebate application is filed.
i) Private Sewer Lateral Inspection Rebates will only be provided to the
property owner.
j) Only one Private Sewer Lateral Inspection Rebate will be provided over
the lifetime of the property.
k) The Private Sewer Lateral Inspection Rebate Program is only in effect
when funds are allocated for that purpose within a given budget year.
Sewer Lateral Inspection Rebates will be available on a first-come, first-
served basis from the date of application until the funds are expended.
If funding runs out during the fiscal year, an applicant may be required
to wait for a future year of rebate funding.
l) Private Sewer Lateral Inspection Rebates may not be available to
property owners to inspect their private sewer lateral as part of a Notice
to Correct condition. This allowance will be applied at the discretion of the
Utilities Director based on previous enforcement compliance history.
m) Private Sewer Lateral Inspection Rebates are available to property
owners to inspect their private sewer lateral as part of an Inspection
Upon Sale requirement for those properties located within a capacity-
constrained area.
SECTION 3. California Environmental Quality Act. The Rebate Programs are
categorically exempt from the California Environmental Quality Act (CEQA) pursuant to
CEQA Guidelines Sections 15307 (Actions by Regulatory Agencies for Protection of
Natural Resources) and 15308 (Actions by Regulatory Agencies for the Protection of the
Environment) because the intent of the Programs is to incentivize and further
implementation of programs that address wastewater collections system capacity-related
issues and would have a beneficial impact on the environment by increasing data
collection related private infrastructure affecting the City’s sewer system, and reducing
the potential for I&I and overflows due to reduced flows from groundwater and
stormwater.
SECTION 4. The City Council hereby declares a primary public purpose in the
expenditure of public funds to benefit private interests, as failing private sewer laterals
Page 708 of 764
Resolution No. _____ (2025 Series) Page 5
R ______
contribute excess water to the public wastewater collection system and Water Resource
Recovery Facility, and potentially cause or contribute to the overloading of the City's
(public) system. The inflow and infiltration from laterals can lead to sanitary sewer
overflows, resulting in damage to surrounding properties, public health risks, and
environmental degradation.
SECTION 5. Resolution Number 11517 (2024 Series) is hereby amended and
superseded to the extent inconsistent herewith.
Upon motion of Council Member ___________, seconded by Council Member
___________, and on the following roll call vote:
AYES:
NOES:
ABSENT:
The foregoing resolution was adopted this _____ day of _______________ 2025.
___________________________
Mayor Erica A. Stewart
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, on ______________________.
___________________________
Teresa Purrington
City Clerk
Page 709 of 764
Item 6a:
General Plan Amendment – Wastewater Capacity
Constrained Areas Map, and Adoption of Private
Sewer Lateral Rebate Programs
Presented by: Chris Lehman, Deputy Director – Wastewater
Shawna Scott, Utilities Project Manager
December 2, 2025
Item 6a:
Recommendations:
December 2, 2025
Adopt a Draft Resolution entitled, "A Resolution of the City
Council of the City of San Luis Obispo, California Approving
Amendments to the Water and Wastewater Element of the
General Plan (GENP-0762-2025)"; and
Adopt a Draft Resolution entitled, "A Resolution of the City
Council of the City of San Luis Obispo, California, Amending the
Private Sewer Lateral Replacement Rebate Program and
Establishing a Private Sewer Lateral Inspection Rebate
Program"; and
Find the actions exempt from the California Environmental
Quality Act.
Private Sewer Laterals
Private Sewer Laterals - Inflow & Infiltration (I&I)
Private Sewer Laterals – Poor Condition
Void in pipe
Offset joint
Private Sewer Laterals – Failed Condition
Council Study Session - August 19, 2025
Staff Questions and Council Direction
Item 1 - Should the Wastewater Flow (Private Sewer
Lateral) Offset Program Continue?
Directed staff to return at a future Study Session
(scheduled for April 7, 2026) with more clarity and options
on proactive requirements for requiring faulty laterals to be
replaced and expanded timelines for property owners to
remedy laterals found in poor and/or failed condition.
Further evaluation and study of the Program:
Provide further clarity regarding condition assessments
and ratings
Evaluate options for required replacement following
failed or poor condition assessment rating
Expand outreach and education
Staff are not requesting direction on this item today.
Council Study Session - August 19, 2025
Staff Questions and Council Direction
Item 2 - Should a General Plan Amendment
Adopting the Staff-Recommended Capacity-
Constrained Areas Map be Brought Forward for
Adoption?
Yes, proceed with the process to amend the General Plan.
Planning Commission 10/22/25: recommended Council
consider and approve the Water and Wastewater
Element Amendment as proposed.
To be brought back to Council for consideration on
December 2, 2025.
Sewer lateral match-making:
Match-making outreach will begin following Council
adoption of the General Plan Amendment (updated
capacity-constrained map)
Water and Wastewater Element
Adopted in 1987
(optional Element)
Translates Land Use
Element development
capacity into potential
water and wastewater
demands
Includes goals,
policies, and
programs
2018 Amendment:
Capacity Constrained
Area Map
City has separate public stormwater and
public sewer systems.
Private sewer laterals are the portion of the
sewer lines that connect from a residence
or commercial structure up to and including
the point of connection with the publicly
owned sewer main.
When it rains, the sewer system
experiences a significant increase in
volume due to storm-related flows (inflow
and infiltration).
What is the Capacity Constrained Area and
how is it defined and determined?
2018 map and figure
based on:
2012 Flow Study
2016 Wastewater
Collection System
Infrastructure
Renewal Strategy
(WWCIRS)
Parcels within the
capacity-constrained
area are subject to the
City’s Wastewater Flow
Offset Program
What is the Capacity Constrained Area and
how is it defined and determined?
Projects located within the WWE capacity-constrained
areas are subject to the City’s Wastewater Flow Offset
Program, as currently mandated by Municipal Code
Section 13.08.396.
The current Program requires that new or intensified
development in capacity constrained areas offset new
wastewater flow in the existing wastewater collection
system to accommodate the project’s additional
demand.
In addition to these offsets, the City implements
capital and maintenance projects to increase capacity
in the sewer system and better monitor flows.
Wastewater Flow (private sewer lateral)
Offset Program Requirements
The 2025 Wastewater Collection System
Infrastructure Renewal Strategy (WWCIRS)
was completed in August 2025
Wastewater flow monitoring and modeling
Identified areas in the sewer system that
experienced elevated flows due to I&I =
updated proposed capacity constrained
area map
What is the Capacity Constrained Area and
how is it defined and determined?
Capacity Constrained Area Changes
Once adopted, this map will be visible on the public sewer
lateral lookup portal at: www.slocity.org/laterals
Council Study Session - August 19, 2025
Staff Questions and Council Direction
Item 3 – Should Staff Further Evaluate a New Private
Sewer Lateral Inspection Rebate (for capacity-
constrained areas) to be Brought Forward to
Council in December for Adoption via Resolution?
Yes, to assessing the potential rebate program, including
terms, limitations, and program administration, to be
brought back to Council for consideration on December 2,
2025.
Up to $350 rebate (not exceeding the cost of the
inspection)
Available to all (residential and commercial
properties) within a capacity-constrained area
Not retroactive, one rebate per parcel
No mandatory replacement
Council Study Session - August 19, 2025
Staff Questions and Council Direction
Item 4 - Should Staff Further Evaluate Expanding
Eligibility for Private Sewer Lateral Replacement
Rebates in Capacity-Constrained Areas to be
Brought Forward to Council for Adoption in
December via Resolution?
Yes, to assessing the potential expansion, including terms,
limitations, and program administration, to be brought back
to Council for consideration on December 2, 2025.
Eligible property types include multi-family and
commercial properties in capacity-constrained areas
Maximum $4,000 rebate
At this time, staff has not identified a reasonable and
fair tiered rebate based on development type (single-
family residential, multi-family residential, non-
residential)
Item 6a:
Recommendations:
December 2, 2025
Adopt a Draft Resolution entitled, "A Resolution of the
City Council of the City of San Luis Obispo, California
Approving Amendments to the Water and Wastewater
Element of the General Plan (GENP-0762-2025)"; and
Adopt a Draft Resolution entitled, "A Resolution of the
City Council of the City of San Luis Obispo, California,
Amending the Private Sewer Lateral Replacement
Rebate Program and Establishing a Private Sewer
Lateral Inspection Rebate Program"; and
Find the actions exempt from the California
Environmental Quality Act.
Item 6a:
Alternatives:
December 2, 2025
Council may direct staff not to amend the General Plan capacity-constrained
boundaries map. The impacts of this alternative include requiring private sewer
lateral replacements in areas that have not been identified as capacity-
constrained by the 2025 Renewal Strategy. By not updating the capacity-
constrained boundaries map, staff would be administering a program informed by
data from 10 years prior, which does not account for current conditions as outlined
in the 2025 Renewal Strategy.
Item 6a:
Alternatives:
December 2, 2025
Council may direct staff not to proceed with expanding eligibility criteria for
Private Sewer Lateral Replacement Rebates. The impacts of this alternative
may include reduced private sewer lateral replacements. Further, by limiting
eligibility to single-family home projects and excluding multi-family or commercial
properties, as the current program requires, staff believe there would be ongoing
equity concerns and limitations in addressing private infrastructure repairs in the
most critical locations (capacity-constrained areas). Limiting current eligibility to
only single-family homes would slow progress and improvement in these areas.
Council may direct staff not to proceed with the adoption of a new Private
Sewer Lateral Inspection Rebate. The impacts of this alternative would likely be
reduced data provided to the City, which would help developers and property
owners locate private sewer laterals to be replaced through offset requirements
and voluntary proactive replacements.
Council may direct staff to make changes to either rebate program. The
impacts of this alternative would be dependent on the changes that Council
directs staff to make.
Recommended
Capacity Constrained Area 1
Recommended
Capacity Constrained Area 3